Competition regulation

OpenAI faces legal action from Indian news companies

Several prominent Indian media outlets, including those owned by billionaires Gautam Adani and Mukesh Ambani, are taking legal action against OpenAI. These outlets, such as NDTV and Network18, along with organisations like the Indian Express and Hindustan Times, have filed to join an ongoing lawsuit against OpenAI in a New Delhi court. They allege that OpenAI has been improperly scraping their copyrighted content to train its AI model, ChatGPT, without permission or payment.

The legal claim, which is being led by the Digital News Publishers Association (DNPA), argues that OpenAI’s practices pose a significant threat to the copyrights of its members. The publishers claim that OpenAI’s actions amount to ‘wilful scraping’ and the use of their work for commercial gain, especially as the company generates revenue through ads linked to AI-generated content. This lawsuit highlights broader concerns in the media industry about the influence of large tech companies on content distribution and monetisation.

The legal proceedings are part of a larger global trend, with authors, musicians, and news organisations worldwide suing AI firms for using their works without compensation. In the US, the New York Times has filed a similar lawsuit against OpenAI and its major backer, Microsoft. This new case in India adds significant pressure to OpenAI, which has denied the allegations, arguing that its AI systems rely on publicly available data and that deleting such data could violate US law.

The Indian plaintiffs argue that OpenAI’s failure to strike content-sharing deals with local publishers, while it has done so with international media outlets, undermines the business of Indian news companies. The publishers warn that OpenAI’s practices could weaken the media landscape and negatively impact democracy, calling for greater protection of intellectual property in the age of AI.

Ads to launch on Threads platform

Meta has begun testing advertisements on its Threads platform in the US and Japan, targeting a small group of users with image ads in their home feeds. The trial comes as the platform surpasses 300 million monthly active users. Businesses will have the opportunity to extend their existing Meta campaigns to Threads, with the company closely monitoring the tests before a wider rollout.

Advertisers will also benefit from a new inventory filter powered by AI, enabling control over the type of content their ads appear alongside. Analysts suggest that while Threads is still a minor player in Meta’s overall revenue strategy, growing uncertainty around TikTok has led brands to explore alternative platforms.

Launched in July 2023 as a competitor to X, formerly known as Twitter, Threads continues to attract users following X’s controversial changes under Elon Musk. Meta’s plans to expand its AI infrastructure with a $65 billion investment this year further highlight its ambitions to remain competitive with tech giants such as OpenAI and Google.

While Threads is not expected to contribute significantly to Meta’s revenue by 2025, its integration into Meta’s broader ad ecosystem demonstrates the company’s efforts to capitalise on the platform’s growing popularity.

GameOn founder faces fraud charges

The founder and former CEO of GameOn, an AI startup in San Francisco, has been indicted for orchestrating a six-year-long fraud scheme that allegedly defrauded investors and the company out of over $60 million. Alexander Beckman, 41, faces 23 criminal charges, while his wife, Valerie Lau Beckman, 38, who worked as a lawyer for the company, is charged with 16 counts, including obstruction. Both have pleaded not guilty. The US Securities and Exchange Commission has also filed civil charges against the couple.

Beckman is accused of deceiving investors by inflating the company’s financial status, including fabricating fake customer relationships, overstating revenue, and creating fraudulent bank statements and audit reports. He allegedly went as far as impersonating individuals to share false information. Meanwhile, Lau Beckman allegedly assisted her husband by providing authentic audit reports to help fabricate false documents and delete critical files after an investigation began.

The Beckmans are also accused of misusing investor funds for personal expenses, including purchasing a luxury home, vehicles, and covering costs for their wedding. The fraudulent activities reportedly continued up until Beckman’s resignation as CEO in July 2024. GameOn, which has since been rebranded as On Platform, eventually admitted to the financial discrepancies and laid off most of its employees.

The case underscores the need for integrity in the tech industry, particularly within startups, as federal prosecutors emphasise that fraud cannot fuel innovation.

UK competition regulator welcomes Doug Gurr

The UK‘s Competition and Markets Authority has appointed former Amazon executive Doug Gurr as its interim chairman, signalling the government’s push to boost economic growth and support the tech sector. Gurr, who brings extensive experience at Amazon, including leading the company’s UK and China operations, will guide the CMA as it fosters competition in industries such as cloud services and AI. The move aligns with the UK’s broader strategy to streamline regulations and position itself as a pro-business nation.

Gurr’s appointment comes amid a critical phase in the CMA’s investigation into the domestic cloud services market, which has been scrutinising Amazon’s dominant position. While Gurr will serve in an interim role, the government hopes his commercial background will help drive pro-business decisions that stimulate growth. This marks a shift from the previous chair, Marcus Bokkerink, whose tenure was shorter than expected, possibly due to dissatisfaction among government officials.

Industry experts note that Gurr’s appointment is timely, as the CMA is stepping up its oversight of Big Tech, particularly with the expanded powers under the Digital Markets, Competition, and Consumers Act. Critics and lobby groups like the Open Cloud Coalition closely watch how the CMA will handle its regulatory responsibilities, particularly in the cloud services sector, where Amazon holds a significant market share. They urge the CMA to maintain a strong stance on promoting fairness and competition.

As the CMA navigates its investigations and enforces new rules, stakeholders are keen to see how Gurr’s leadership will shape the future of competition regulation in the UK. The outcome could have far-reaching implications for businesses and consumers, particularly in the rapidly evolving tech landscape.

UK government shakes up CMA leadership

Marcus Bokkerink has been removed from his position as chair of the Competition and Markets Authority (CMA) by the UK government, marking a shift in regulatory practices aimed at boosting economic growth. The CMA, a key agency overseeing mergers and competition, had recently paused the high-profile Microsoft-Activision Blizzard merger, showcasing its regulatory power. Bokkerink, appointed in 2022, was expected to serve a five-year term but will now step down as part of the government’s effort to realign regulatory bodies with its economic priorities.

This decision reflects a broader governmental push to reduce barriers to economic expansion. Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Secretary Jonathan Reynolds recently sent a letter to several regulators, including the CMA, urging them to prioritize growth. Government insiders have suggested that the move signals a serious commitment to reshaping the regulatory environment to encourage investment and economic development.

The removal of Bokkerink, a former senior partner at Boston Consulting Group, comes as the government continues to focus on attracting international investment, with key figures like Reeves and Reynolds attending the World Economic Forum in Davos to further this goal. The government’s efforts to reshape regulatory culture align with its broader strategy to make economic growth the country’s top priority.

OpenAI defends itself in ANI copyright lawsuit in India

OpenAI has told an Indian court that removing training data used for its ChatGPT service would conflict with its legal obligations in the United States. The company, backed by Microsoft, is defending a copyright lawsuit filed by Indian news agency ANI, which accuses OpenAI of using its content without permission and demands the deletion of ANI’s data from ChatGPT’s memory.

In a January 10 filing, OpenAI argued that Indian courts lack jurisdiction as the company has no physical presence or data servers in India. It also emphasised its legal obligation in the US to preserve training data while litigation is ongoing. OpenAI denied wrongdoing, asserting its systems make fair use of publicly available data, a stance it has maintained in similar copyright disputes globally.

ANI insists the Delhi court has the authority to rule on the case, citing concerns over unfair competition and alleging that ChatGPT reproduces its content verbatim. OpenAI, however, countered that ANI manipulated prompts to elicit such responses. The court is set to hear the case on January 28, marking a key moment in India’s scrutiny of AI and copyright law.

UK launches investigation into Apple and Google dominance

Britain’s Competition and Markets Authority (CMA) has opened an investigation into the dominance of Apple and Google in the smartphone ecosystem. The probe will examine their operating systems, app stores, and browsers to determine whether their ‘strategic market status’ stifles competition and innovation, particularly for businesses developing content and services.

CMA Chief Executive Sarah Cardell emphasised the potential for more competitive mobile ecosystems to drive innovation and boost economic growth in the UK. Both Apple and Google defended their practices, with Apple highlighting its ecosystem’s support for jobs in Britain and Google pointing to Android’s openness as a driver of choice and affordability.

The investigation, the CMA’s second under new regulatory powers, will explore whether Apple and Google are leveraging their dominance unfairly by prioritising their apps and services or imposing restrictive terms on developers. A conclusion is expected by October 22, 2025, as Britain continues to tighten its oversight of major tech companies.

China urges companies to decide TikTok’s future independently

China’s foreign ministry stated on Monday that companies should make independent decisions regarding their business operations and agreements. The remarks came in response to United States President-elect Donald Trump’s proposal requiring 50% US ownership of TikTok.

The proposed ownership demand has reignited tensions over the popular social media app, owned by Chinese company ByteDance, as US officials continue to express concerns over national security and data privacy. Chinese officials have consistently emphasised the importance of allowing businesses to operate without undue government interference.

TikTok, which boasts millions of users worldwide, has faced scrutiny in several countries over its links to China. The foreign ministry’s statement highlights Beijing’s stance that such matters should remain in the hands of corporations rather than being dictated by political decisions.

Ex-Meta COO faces penalties over Cambridge Analytica email scandal

Former Meta Platforms COO Sheryl Sandberg has been sanctioned by a Delaware Chancery Court judge for deleting emails linked to the Cambridge Analytica privacy scandal, despite orders to preserve them. Judge Travis Laster determined that Sandberg used a personal email account under a pseudonym to erase messages potentially relevant to a shareholder lawsuit. The sanctions are likely to complicate her defence in the trial set for April, and she has been ordered to cover shareholders’ expenses related to the motion.

The lawsuit, filed in 2018, accuses Facebook’s leadership of harming investors by violating a 2012 Federal Trade Commission consent order to protect user data. Shareholders also allege the company paid a $5 billion fine in 2019 to shield founder Mark Zuckerberg from personal liability. Zuckerberg is expected to face a second deposition before the non-jury trial begins. Sandberg has argued that her email deletions did not affect critical evidence, claiming that relevant messages were often copied to others.

Judge Laster criticised the deletions, stating they likely erased the most sensitive communications. The court also considered similar allegations against Jeffrey Zients, a former Meta board member, but deemed his deleted emails less significant as he joined after the Cambridge Analytica scandal emerged. The case has been described by Laster as involving “wrongdoing on a truly colossal scale,” with significant implications for accountability in corporate governance.

Meta faces new scrutiny over EU law compliance

Meta Platforms, the parent company of Facebook and Instagram, is once again under fire by the European Consumer Organisation (BEUC) over its ad-free subscription service. Introduced in 2023, the fee-based option offered European users the ability to opt out of personalised ads, with a subsequent price cut of 40% implemented later that year. However, BEUC claims these changes are merely superficial and fail to address deeper concerns about fairness and compliance with EU consumer and privacy laws.

BEUC’s Director General, Agustin Reyna, criticised Meta for not providing users with a fair choice, alleging that the company still pressures users into accepting its behavioural advertising system. Reyna called on consumer protection authorities and the European Commission to investigate Meta’s practices urgently, emphasising the need for decisive action to safeguard users’ rights. The consumer group also accused Meta of misleading practices, unclear terms, and failing to minimise data collection while restricting services for users who decline data processing.

In response, a Meta spokesperson defended the company’s approach, arguing that its November 2023 updates go beyond EU regulatory requirements. Despite these assurances, EU antitrust regulators have raised concerns, accusing Meta of breaching the Digital Markets Act. They claim the ad-free service forces users into a binary choice, sparking broader concerns about how the tech giant balances profit with consumer protection.

As pressure mounts, Meta faces growing scrutiny over its compliance with EU laws, with regulators weighing potential measures to address BEUC’s allegations and ensure fair treatment for European users.