Competition regulation Archives | Page 69 of 114

Apple sues European Commission over DMA interoperability ruling

Apple is mounting a legal challenge against the European Commission after being ordered to open up its tightly controlled ecosystem to rival companies under the Digital Markets Act (DMA).

The tech giant filed its appeal with the EU’s General Court, claiming the decision would undermine user privacy and harm innovation.

The dispute centres on a March ruling by the Commission following months of dialogue, which concluded that Apple must guarantee interoperability—a requirement that would allow third-party developers to connect non-Apple products, such as smartwatches and headphones, to iPhones and iPads.

Apple has pushed back strongly, arguing that the mandate is ‘unreasonable, costly and stifles innovation.’ A company spokesperson said the move would benefit what Apple describes as ‘data-hungry companies’ like Meta and Samsung, who could gain access to users’ most sensitive data through third-party connections.

Since December 2024, the European Commission has been pressing Apple to make its ecosystem more open to promote competition across the digital sector. However, Apple maintains that complying with the order would compromise the company’s privacy-first approach and violate its data protection standards.

The Commission, meanwhile, insists the measures are proportionate and fully aligned with the EU’s stringent privacy and security framework. It argues that the order would not strip Apple of control over its devices, but rather enable fairer access for other tech players while keeping user protections intact.

The case is set to become a major test of how far the EU can push tech giants to comply with the Digital Markets Act, which was designed to curb the dominance of so-called ‘gatekeepers’ in digital markets.

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Reddit accuses Anthropic of misusing user content

Reddit has taken legal action against AI startup Anthropic, alleging that the company scraped its platform without permission and used the data to train and commercialise its Claude AI models.

The lawsuit, filed in San Francisco’s Superior Court, accuses Anthropic of breaching contract terms, unjust enrichment, and interfering with Reddit’s operations.

According to Reddit, Anthropic accessed the platform more than 100,000 times despite publicly claiming to have stopped doing so.

The complaint claims Anthropic ignored Reddit’s technical safeguards, such as robots.txt files, and bypassed the platform’s user agreement to extract large volumes of user-generated content.

Reddit argues that Anthropic’s actions undermine its licensing deals with companies like OpenAI and Google, who have agreed to strict content usage and deletion protocols.

The filing asserts that Anthropic intentionally used personal data from Reddit without ever seeking user consent, calling the company’s conduct deceptive. Despite public statements suggesting respect for privacy and web-scraping limitations, Anthropic is portrayed as having disregarded both.

The lawsuit even cites Anthropic’s own 2021 research that acknowledged Reddit content as useful in training AI models.

Reddit is now seeking damages, repayment of profits, and a court order to stop Anthropic from using its data further. The market responded positively, with Reddit’s shares closing nearly 67% higher at $118.21—indicating investor support for the company’s aggressive stance on data protection.

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Eminem sues Meta over copyright violations

Eminem has filed a major lawsuit against Meta, accusing the tech giant of knowingly enabling widespread copyright infringement across its platforms. The rapper’s publishing company, Eight Mile Style, is seeking £80.6 million in damages, claiming 243 of his songs were used without authorisation.

The lawsuit argues that Meta, which owns Facebook, Instagram and WhatsApp, allowed tools such as Original Audio and Reels to encourage unauthorised reproduction and use of Eminem’s music.

The filing claims it occurred without proper licensing or attribution, significantly diminishing the value of his copyrights.

Eminem’s legal team contends that Meta profited from the infringement instead of ensuring his works were protected. If a settlement cannot be reached, the artist is demanding the maximum statutory damages — $150,000 per song — which would amount to over $109 million.

Meta has faced similar lawsuits before, including a high-profile case in 2022 brought by Epidemic Sound, which alleged the unauthorised use of thousands of its tracks. The latest claim adds to growing pressure on social media platforms to address copyright violations more effectively.

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EU fines Delivery Hero and Glovo €329 million over cartel practices

The European Commission has imposed a €329 million fine on Berlin-based Delivery Hero and its Spanish subsidiary, Glovo, for participating in what it described as a cartel in the online food delivery market. According to the Commission, the two companies engaged in illegal practices across Europe between 2018 and 2022, including market sharing, exchanging commercially sensitive information, and entering into a ‘no-poach’ agreement to avoid hiring each other’s employees.

This is the first time the Commission has penalised companies for a no-poach deal, which the EU competition chief, Teresa Ribera, said harmed workers’ job mobility in the digital economy. The anti-competitive behaviour reportedly began in mid-2018 when Delivery Hero took a minority stake in Glovo and persisted in various forms until 2022, when it gained full ownership of the Spanish firm.

Delivery Hero was hit with a €223 million fine, while Glovo received a €106 million penalty. Both companies admitted to their roles in the misconduct and agreed to a settlement. The case emerged not from company complaints but through whistleblowers and the Commission’s own monitoring.

Delivery Hero stated it had fully cooperated with the investigation and noted the final fine was 20% lower than initially expected, due to Brussels’s acknowledgement of a lower intensity of misconduct during some periods. The firm expressed hope that the settlement would allow all involved to move forward.

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OpenAI turns ChatGPT into AI gateway

OpenAI plans to reinvent ChatGPT as an all-in-one ‘super assistant’ that knows its users and becomes their primary gateway to the internet.

Details emerged from a partly redacted internal strategy document shared during the US government’s antitrust case against Google.

Rather than limiting ChatGPT to existing apps and websites, OpenAI envisions a future where the assistant supports everyday life—from suggesting recipes at home to taking notes at work or guiding users while travelling.

The company says the AI should evolve into a reliable, emotionally intelligent helper capable of handling a various personal and professional tasks.

OpenAI also believes hardware will be key to this transformation. It recently acquired io, a start-up founded by former Apple designer Jony Ive, for $6.4 billion to develop AI-powered devices.

The company’s strategy outlines how upcoming models like o2 and o3, alongside tools like multimodality and generative user interfaces, could make ChatGPT capable of taking meaningful action instead of simply offering responses.

The document also reveals OpenAI’s intention to back a regulation requiring tech platforms to allow users to set ChatGPT as their default assistant. Confident in its fast growth, research lead, and independence from ads, the company aims to maintain its advantage through bold decisions, speed, and self-disruption.

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Google to appeal US ruling in search monopoly case

Google has announced plans t o appeal a ruling that found it guilty of anti-competitive practices in the online search market, as the tech giant faces mounting pressure from US regulators to restructure its business.

The company said Saturday it ‘strongly believes the Court’s original decision was wrong’ and will challenge the ruling on appeal.

However, this follows a hearing on Friday in which the US Department of Justice proposed sweeping remedies that could force Google to divest from its Chrome browser and end exclusive agreements with smartphone manufacturers that pre-install Google Search by default.

The government also wants the company to share the data it uses to generate search results on Chrome, a move Google criticised as giving Washington the power to determine who receives access to user data.

The Justice Department’s proposals are part of a broader effort to curb what it sees as Google’s abuse of its dominant position in the search market, which it argues has stifled competition and harmed consumers.

But Google has pushed back, saying the remedies would benefit wealthy competitors like Microsoft’s Bing rather than improve users outcome. Instead, the company has suggested more limited actions, such as letting phone makers pre-install its Play Store without requiring Chrome or Google Search.

The judge’s final decision on penalties is expected by August, marking the end of one of the most significant antitrust cases against a major tech firm in over a decade.

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DeepSeek claims its new AI rivals top global models

Chinese AI start-up DeepSeek has announced a major upgrade to its R1 model, stating that the new version, R1-0528, now matches the performance of top-tier models from global giants like OpenAI and Google.

Unveiled on Thursday, the upgraded model brings notable improvements in reasoning and creative writing, allowing it to generate argumentative essays, fiction, and prose with a style said to be close to human authors.

DeepSeek also reported enhanced coding capabilities, positioning the model as a more versatile tool for both technical and literary applications.

The original R1 model debuted in January. With the R1-0528 update, DeepSeek appears to be accelerating its efforts to compete with established Western AI developers in both domestic and international markets.

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Chinese tech firms thrive amid US curbs

Nvidia CEO Jensen Huang has raised concerns that US export restrictions are accelerating the growth of Chinese AI firms, making them more competitive. In a recent interview, Huang highlighted that companies like Huawei — long blacklisted by the US — have become ‘formidable’ rivals.

The restrictions have hit Nvidia hard, with the company projecting an $8 billion revenue loss this quarter due to the limited access to the Chinese market, historically its largest for chips. The Biden administration’s AI diffusion rule, aimed at controlling the spread of advanced AI technologies, had already drawn criticism from Huang before being partially rolled back by the Trump administration in May.

Yet, Nvidia still faces tough restrictions, including a ban on selling even its downgraded H20 chip to China. The company was recently notified that it would need a special license to export the chip, leaving it with no viable alternative for the Chinese market.

Huang warned that efforts to keep cutting-edge AI tech out of China have largely backfired, as Chinese firms are finding workarounds and quickly catching up.

‘They’re doubling or quadrupling capabilities every year,’ he noted, stressing that the performance of Huawei’s latest AI chip now rivals Nvidia’s once-leading H200.

Despite Nvidia’s strong recent performance, Huang emphasised the long-term importance of re-engaging with China, home to the world’s largest community of AI researchers. He urged US policymakers to reconsider their approach, advocating for broader access to American AI technology to maintain leadership and influence in the global AI ecosystem.

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The future of search: Personalised AI and the privacy crossroads

The rise of personalised AI is poised to radically reshape how we interact with technology, with search engines evolving into intelligent agents that not only retrieve information but also understand and act on our behalf. No longer just a list of links, search is merging into chatbots and AI agents that synthesise information from across the web to deliver tailored answers.

Google and OpenAI have already begun this shift, with services like AI Overview and ChatGPT Search leading a trend that analysts say could cut traditional search volume by 25% by 2026. That transformation is driven by the AI industry’s hunger for personal data.

To offer highly customised responses and assistance, AI systems require in-depth profiles of their users, encompassing everything from dietary preferences to political beliefs. The deeper the personalisation, the greater the privacy risks.

OpenAI, for example, envisions a ‘super assistant’ capable of managing nearly every aspect of your digital life, fed by detailed knowledge of your past interactions, habits, and preferences. Google and Meta are pursuing similar paths, with Mark Zuckerberg even imagining AI therapists and friends that recall your social context better than you do.

As these tools become more capable, they also grow more invasive. Wearable, always-on AI devices equipped with microphones and cameras are on the horizon, signalling an era of ambient data collection.

AI assistants won’t just help answer questions—they’ll book vacations, buy gifts, and even manage your calendar. But with these conveniences comes unprecedented access to our most intimate data, raising serious concerns over surveillance and manipulation.

Policymakers are struggling to keep up. Without a comprehensive federal privacy law, the US relies on a patchwork of state laws and limited federal oversight. Proposals to regulate data sharing, such as forcing Google to hand over user search histories to competitors like OpenAI and Meta, risk compounding the problem unless strict safeguards are enacted.

As AI becomes the new gatekeeper to the internet, regulators face a daunting task: enabling innovation while ensuring that the AI-powered future doesn’t come at the expense of our privacy.

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Europe cracks down on Shein for misleading consumers

The European Commission and national consumer protection authorities have determined that online fashion giant Shein is in breach of six EU consumer laws, giving the company one month to bring its practices into compliance.

Announced today, the findings from the European Commission mark the latest in a string of regulatory actions against e-commerce platforms based in China, as the EU intensifies efforts to hold international marketplaces accountable for deceptive practices and unsafe goods.

Michael McGrath, the commissioner for consumer protection, stated: ‘We will not shy away from holding e-commerce platforms to account, regardless of where they are based.’

The investigation, launched in February, identified violations such as fake discounts, high-pressure sales tactics, misleading product labelling, and hidden customer service contact details.

Authorities are also examining whether Shein’s product ranking and review systems mislead consumers, as well as the platform’s contractual terms with third-party sellers.

She i n responded by saying it is working ‘constructively’ with authorities and remains committed to addressing concerns raised during the investigation.

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