Competition regulation

US tightens chip curbs on China in major crackdown

The United States has imposed its third major round of export controls on China’s semiconductor industry in three years, targeting 140 companies with restrictions on chipmaking equipment, software, and advanced memory chips. Among those affected are prominent firms like Naura Technology, ACM Research, and SiCarrier Technology, as well as entities linked to Huawei, a key player in China’s chip advancements.

The measures, aimed at stalling China’s progress in AI and military technologies, also introduce new licensing requirements for US and foreign companies shipping equipment with US components to China. Commerce Secretary Gina Raimondo stated the restrictions are intended to block China’s military modernisation. Despite the sanctions, Chinese officials condemned the move as “economic coercion” and vowed countermeasures.

The rules also impact allies, with restrictions extending to chipmaking equipment from countries like Singapore and South Korea, while Japan and the Netherlands are exempt. Some global players, including Dutch firm ASML, downplayed the immediate impact but acknowledged potential long-term effects. These actions come as China accelerates efforts toward self-sufficiency in semiconductor production, though it remains years behind industry leaders like Nvidia and ASML.

This latest crackdown follows the sweeping 2022 curbs on high-end chips and manufacturing tools under the Biden administration, reflecting a sustained US effort to curtail China’s access to critical technologies.

Mexico’s telecom reform sparks debate

Mexico’s recent constitutional reform, which dissolves the Federal Telecommunications Institute (IFT) and six other regulatory agencies, has drawn criticism for potentially undermining regulatory independence. Passed by the Senate and awaiting state legislature approval, the reform shifts oversight responsibilities from autonomous bodies to federal executive control, sparking fears of inefficiency and diminished regulatory effectiveness.

The IFT, instrumental in modernising Mexico’s telecommunications and broadcasting sectors, warned that eliminating institutional autonomy could disrupt competition enforcement and sector regulation. Critics, including the Mexican Association for the Right to Information (Amedi), argue the changes risk political interference, jeopardising impartiality in decision-making.

The reform also raises concerns about Mexico’s adherence to international agreements, such as the US-Mexico-Canada Agreement (USMCA), which mandates independent regulators for telecommunications. The government has suggested transferring the IFT’s responsibilities to existing ministries or creating a new agency, leaving the sector’s future regulatory framework uncertain.

Stakeholders stress the need for technical expertise, impartiality, and clarity in upcoming secondary legislation to avoid inefficiencies and ensure compliance with domestic and international obligations.

Australia targets Big Tech with tougher competition rules

Australia has proposed a law to curb anti-competitive practices by major tech companies, including fines of up to A$50 million ($33 million) for suppressing competition or preventing consumers from switching services. The move builds on recent efforts by the Labor government to regulate Big Tech, including a ban on social media use for children under 16 passed last week.

Assistant Treasurer Stephen Jones highlighted the dominance of platforms like Apple, Google, and Meta, warning that their practices stifle innovation, limit consumer choice, and inflate costs. The proposed law, inspired by the European Union’s Digital Markets Act, aims to make it easier for users to switch between services such as social media platforms, internet browsers, and app stores.

The law would empower Australia’s competition regulator to enforce compliance, investigate digital market practices, and impose fines. It prioritises oversight of app stores and ad tech services, targeting practices like promoting low-rated apps and favouring in-house services over competitors. Consultation on the legislation will run until February 14, with further discussions to refine the draft.

Big Tech companies, which dominate Australia’s digital market, have yet to comment on the proposal. Government reports reveal Google controls up to 95% of online search, Apple’s App Store handles 60% of app downloads, and Facebook and Instagram account for 79% of social media services in the country.

US tightens semiconductor export curbs on China

The United States will implement sweeping new restrictions on semiconductor exports to China starting Monday, targeting 140 Chinese firms to curb Beijing’s technological advancements, especially in AI and military applications. The measures, part of the Biden administration’s continued crackdown on China’s chip industry, include export controls on high-bandwidth memory (HBM) chips, 24 chipmaking tools, and advanced semiconductor equipment manufactured in countries like Singapore and Malaysia.

Among the companies affected are major Chinese chip equipment makers such as Naura Technology Group and Piotech, alongside firms tied to Huawei, which remains central to China’s chipmaking ambitions. Nearly two dozen additional semiconductor and investment firms will be added to the US Entity List, severely restricting their access to American technology. In response, Chinese officials criticised the move, claiming it undermines global trade and supply chains while vowing to protect their firms’ interests.

The restrictions also expand the foreign direct product rule, giving the US authority to regulate exports to China of equipment containing even minimal American technology. This move could disrupt global suppliers, although Japan and the Netherlands are exempt due to their collaboration with the US on similar controls. The crackdown follows a broader US strategy to limit China’s ability to compete in advanced technologies, building on export curbs introduced in 2022.

Despite China’s efforts to become self-reliant in semiconductors, it remains years behind global leaders like Nvidia and ASML. Meanwhile, the restrictions are expected to hit companies such as Lam Research, Applied Materials, and Samsung, which derives a significant share of its HBM chip revenue from China. With the upcoming administration of Donald Trump expected to maintain a hardline stance on China, the latest measures underscore ongoing US efforts to preserve its technological edge.

Meta to face $582 million trial in Spain

Meta Platforms, the owner of Facebook, Instagram, and WhatsApp, is set to face trial in Spain in October 2025 over a €551 million ($582 million) lawsuit filed by 87 media companies. The complaint, led by the AMI media association, accuses Meta of unfair competition in advertising through its alleged misuse of user data from 2018 to 2023.

The media companies argue that Meta’s extensive data collection provides it with an unfair advantage in crafting personalised ads, violating EU data protection regulations. Prominent Spanish publishers, including El Pais owner Prisa and ABC publisher Vocento, are among the plaintiffs. A separate €160 million lawsuit against Meta was also filed by Spanish broadcasters last month on similar grounds.

The lawsuits are part of a broader effort by traditional media to push back against tech giants, which they claim undermine their revenue and fail to pay fair fees for content use. In response to similar challenges in other countries, Meta has restricted news sharing on its platforms and reduced its focus on news and political content in user feeds.

Meta has not yet commented on the Spanish lawsuits, which highlight ongoing tensions between digital platforms and legacy media seeking to safeguard their economic interests.

EU ends tax aid probes into major companies

The European Commission announced the closure of its state aid investigations into tax rulings granted to Amazon, Fiat, and Starbucks by Luxembourg and the Netherlands. Initially, the Commission had ruled in 2015 and 2017 that these nations provided the companies with selective tax advantages that breached EU state aid rules. The allegations were part of broader efforts to address unfair tax practices within the European Union.

EU courts, however, annulled the Commission’s decisions in subsequent legal challenges, ruling that the tax arrangements did not constitute illegal state aid. As a result, the Commission concluded that the companies had not violated EU rules and formally ended the investigations.

The cases underscore the complexities of enforcing tax harmonisation across EU member states. Critics of the initial rulings argued that such cases reflect the challenges of balancing national tax sovereignty with EU-wide competition regulations. The closures may also influence future policies on corporate taxation in Europe.

FTC investigates Microsoft over antitrust concerns

The US Federal Trade Commission (FTC) has initiated an antitrust investigation into Microsoft, examining its software licensing, cloud computing operations, and AI-related practices. Sources indicate the probe, approved by FTC Chair Lina Khan before her anticipated departure, also investigates claims of restrictive licensing aimed at limiting competition in cloud services.

Microsoft is the latest Big Tech firm under regulatory pressure. Alphabet, Apple, Meta, and Amazon face similar lawsuits over alleged monopolistic practices in markets ranging from app stores to advertising. Penalties and court rulings loom as regulators focus on digital fairness.

The FTC’s probe highlights growing concerns about the influence of Big Tech on consumer choice and competition. As scrutiny intensifies, the outcomes could reshape the technology sector’s landscape, impacting businesses and consumers alike.

China vows response to US chip restrictions

China has issued a strong warning against potential new US export restrictions on semiconductor technology, signalling it could take ‘necessary actions’ to safeguard its firms. The warning follows reports suggesting the Biden administration may expand its trade blacklist, potentially adding up to 200 Chinese chip companies to the list. Such measures would limit US suppliers from trading with these firms.

Chinese commerce ministry spokesperson He Yadong condemned the US for what he described as overreach in the name of national security. He argued the proposed controls destabilise global trade and harm bilateral cooperation in the semiconductor sector. He emphasised China’s determination to defend its companies’ rights if the US persists with its actions.

Reports indicate that the Biden administration is mulling restrictions on semiconductor equipment and AI memory chip sales to China. These measures may target firms like Semiconductor Manufacturing International Corp., a Huawei ally, while sparing ChangXin Memory Technologies, a rising AI memory chip developer.

The tensions come as the outgoing Biden administration faces domestic and international scrutiny over trade policies. Meanwhile, there is concern that President-elect Donald Trump’s proposed tariffs on Chinese goods could further inflame trade relations, with Beijing warning that such measures would fail to address US domestic issues effectively.

Antitrust case targets Google in Canada

Canada’s Competition Bureau has filed a lawsuit against Google, accusing the tech giant of anti-competitive practices in online advertising. The agency claims Google abused its dominant position in the Canadian ad tech market to maintain its control, stifling competition and innovation.

The Competition Bureau’s investigation, which began in 2020 and expanded earlier this year, found Google to be the largest provider across the advertising technology stack in the country. The lawsuit seeks a court order for Google to sell two of its advertising tools and pay a penalty to ensure compliance with competition laws in Canada.

Google denies the allegations, stating that the online advertising market is highly competitive and offers many choices for advertisers. The company argues its ad tech tools are designed to help businesses connect with customers effectively while supporting websites and apps.

This case mirrors similar actions taken against Google in the US and the EU. Closing arguments in a US Department of Justice lawsuit accusing Google of monopolising advertising markets were presented recently, while European publishers previously rejected a Google offer to sell part of its ad tech business to settle an EU investigation.

Mixed reactions as Australia bans social media for minors

Australia’s recent approval of a social media ban for children under 16 has sparked mixed reactions nationwide. While the government argues that the law sets a global benchmark for protecting youth from harmful online content, critics, including tech giants like TikTok, warn that it could push minors to darker corners of the internet. The law, which will fine platforms like Meta’s Facebook, Instagram and TikTok up to A$49.5 million if they fail to enforce it, takes effect one year after a trial period begins in January.

Prime Minister Anthony Albanese emphasised the importance of protecting children’s physical and mental health, citing the harmful impact of social media on body image and misogynistic content. Despite widespread support—77% of Australians back the measure—many are divided. Some, like Sydney resident Francesca Sambas, approve of the ban, citing concerns over inappropriate content, while others, like Shon Klose, view it as an overreach that undermines democracy. Young people, however, expressed their intent to bypass the restrictions, with 11-year-old Emma Wakefield saying she would find ways to access social media secretly.

This ban positions Australia as the first country to impose such a strict regulation, ahead of other countries like France and several US states that have restrictions based on parental consent. The swift passage of the law, which was fast-tracked through parliament, has drawn criticism from social media companies, which argue the law was rushed and lacked proper scrutiny. TikTok, in particular, warned that the law could worsen risks to children rather than protect them.

The move has also raised concerns about Australia’s relationship with the United States, as figures like Elon Musk have criticised the law as a potential overreach. However, Albanese defended the law, drawing parallels to age-based restrictions on alcohol, and reassured parents that while enforcement may not be perfect, it’s a necessary step to protect children online.