Competition regulation

EU court sides with Italy in Google antitrust case

The European Court of Justice has backed Italy‘s antitrust authority in a ruling against Google, stating that the tech giant’s refusal to allow Enel’s JuicePass app to work with its Android Auto platform could constitute an abuse of market power. This decision supports a 2021 fine of 102 million euros imposed by the Italian watchdog after Google blocked the e-mobility app. Google had argued that the refusal was due to security concerns and the absence of a specific template for compatibility, but the court disagreed, stating that dominant companies must ensure their platforms are interoperable with third-party apps unless doing so would harm security.

Although Google has since resolved the issue, the ruling sets a precedent for future cases involving platform dominance. The court acknowledged that companies could refuse interoperability if it compromises platform security, but if this is not the case, they must develop a compatible template in a reasonable timeframe. Google claimed the feature was only relevant to a small percentage of cars in Italy at the time, but the ruling now forces the company to comply with the antitrust decision. The case is final and cannot be appealed, and the Italian Council of State will follow the court’s guidance in its future ruling.

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Trump orders review of tariffs over digital service taxes

US President Donald Trump has directed his trade officials to revive investigations into digital service taxes imposed by foreign countries on American tech giants.

The move could lead to new tariffs on imports from nations like France, Canada, and India, which have introduced taxes targeting major firms such as Google, Meta, Apple, and Amazon. Trump argues that these levies unfairly exploit US companies and has vowed to protect America’s tax base from foreign appropriation.

The renewed probe follows previous investigations during Trump’s first term, where the US Trade Representative found that several countries discriminated against American firms, paving the way for potential retaliatory tariffs.

While the Biden administration initially imposed 25% tariffs on goods from countries with digital taxes, these duties were suspended to allow for global tax negotiations. However, with talks stalling and the US rejecting the 15% global minimum tax, Trump has now abandoned the deal entirely.

The new directive also calls for scrutiny of the Digital Markets Act and Digital Services Act imposed by the European Union, assessing whether they encourage censorship or undermine free speech for US companies.

As tensions grow, the US could impose fresh tariffs on billions of dollars worth of foreign imports. Trump has not yet revealed the specific tariff rates or the value of goods that may be targeted in this latest round of trade actions.

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US lawmakers criticise EU’s Digital Markets Act

US House Judiciary Chair Jim Jordan has called on European Union antitrust chief Teresa Ribera to clarify how the EU enforces its Digital Markets Act (DMA), which he believes disproportionately targets American companies. His request follows a memorandum signed by US President Donald Trump, warning that the administration would scrutinise the EU’s new rules regulating how US companies interact with consumers in Europe.

Jordan and his co-signatory, Scott Fitzgerald, criticised the DMA’s hefty fines, which can reach up to 10% of a company’s global revenue for violations. They argue that the rules not only disadvantage US companies but also potentially benefit Chinese firms, stifling innovation and handing over valuable data to adversarial nations. The letter urges Ribera to address these concerns with the judiciary committee by March 10.

The European Commission, where Ribera is the second-highest official, has rejected claims that its laws are aimed at American companies. Ribera defended the DMA in a recent interview, stating that the EU should not be pressured into altering laws that have already been approved by European lawmakers.

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Telstra faces penalties after broadband speed ruling

Australia’s Federal Court has ruled that telecom giant Telstra misled customers about downgrading the upload speed of its broadband plans. The Australian Competition & Consumer Commission (ACCC) initiated legal action in December 2022, accusing Telstra of downgrading the upload speeds for nearly 9,000 customers in 2020 without informing them or adjusting charges accordingly.

The ACCC argued that Telstra’s failure to notify customers deprived them of the chance to decide whether the altered service met their needs. The regulator is seeking penalties, compensation for affected customers, and other measures, with a final decision to be made by the court later.

Telstra expressed disappointment in the ruling but acknowledged the court’s decision. A spokesperson said the company would review the judgment before deciding on further steps.

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Brazil slaps X with $1.42 million fine for noncompliance

Brazil‘s Supreme Court Justice Alexandre de Moraes has fined social media platform X, owned by Elon Musk, 8.1 million reais ($1.42 million) for failing to comply with judicial orders. The ruling, made public on Thursday, follows a legal case from 2023 where the court had instructed X to remove a profile spreading misinformation and provide the user’s registration data.

X’s failure to meet these demands resulted in a daily fine of 100,000 reais, and the company’s local legal representative faced potential criminal liability. The court order required the immediate payment of the fine, citing the platform’s noncompliance. X’s legal team in Brazil has not commented on the matter.

In 2024, X faced a month-long suspension in Brazil for not adhering to court orders related to hate speech moderation and for failing to designate a legal representative in the country, as mandated by law.

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Apple rejects UK plans for mobile browser controls

Apple has pushed back against proposed remedies from the UK’s competition watchdog, arguing they could hinder innovation in the mobile browser market. The Competition and Markets Authority (CMA) is investigating Apple and Google’s dominance in browser engines and cloud gaming distribution through app stores, with potential regulatory measures under consideration.

In its response, Apple stated that mandating free access to future WebKit updates or iOS features used by Safari would be unfair, given the significant resources required to develop them. The company warned this could lead to ‘free-riding’ by third parties and discourage further investment in browser technologies.

The UK CMA’s investigation aims to increase competition in the mobile browser space, where Apple’s WebKit engine is a key player. However, Apple insists that the proposed changes would harm its ability to innovate and could ultimately reduce the quality of browser experiences for users. The regulator is expected to continue assessing industry feedback before making a final decision.

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Hong Kong explores new virtual asset regulations

Hong Kong is considering approving derivatives and margin lending for virtual assets, aiming to strengthen its position as a global hub for digital assets, according to the Securities and Futures Commission (SFC). This move is part of the city’s broader strategy, initiated in 2022, to become a leading virtual asset trading centre, particularly after China’s cryptocurrency ban in 2021. The SFC’s CEO, Julia Leung, announced the potential inclusion of derivative products and margin lending for professional investors, highlighting ongoing efforts to enhance Hong Kong’s competitiveness in the sector.

As part of its regulatory push, the city has already issued nine virtual asset trading platform licences, with more applications under review. One such licence was granted to Bullish Group, the parent company of CoinDesk. Additionally, financial secretary Paul Chan noted that the government is working on advancing regulations for stablecoins, further solidifying Hong Kong’s ambitions in the digital asset space.

The city will soon release a detailed roadmap for virtual asset growth, which will outline future plans. Meanwhile, Hong Kong competes with cities like Singapore and Dubai, also striving to become leading centres for digital finance. The latest developments come amid a broader global shift in the cryptocurrency market, which has seen significant interest from institutional investors following regulatory changes in the US under President Trump.

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EU delays AI liability directive due to stalled negotiations

The European Commission has removed the AI Liability Directive from its 2025 work program due to stalled negotiations, though lawmakers in the European Parliament’s Internal Market and Consumer Protection Committee (IMCO) have voted to continue working on the proposal. A spokesperson confirmed that IMCO coordinators will push to keep the directive on the political agenda, despite the Commission’s plans to withdraw it. The Legal Affairs committee has yet to make a decision on the matter.

The AI Liability Directive, proposed in 2022 alongside the EU’s AI Act, aimed to address the potential risks AI systems pose to society. While some lawmakers, such as German MEP Axel Voss, criticised the Commission’s move as a ‘strategic mistake,’ others, like Andreas Schwab, called for more time to assess the impact of the AI Act before introducing separate liability rules.

The proposal’s withdrawal has sparked mixed reactions within the European Parliament. Some lawmakers, like Marc Angel and Kim van Sparrentak, emphasised the need for harmonised liability rules to ensure fairness and accountability, while others expressed concern that such rules might not be needed until the AI Act is fully operational. Consumer groups welcomed the proposed legislation, while tech industry representatives argued that liability issues were already addressed under the revamped Product Liability Directive.

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Google settles tax dispute in Italy for 326 million euros

Milan prosecutors have announced plans to drop a case against Google’s European division after the company agreed to settle a tax dispute by paying 326 million euros (£277 million). The settlement covers the period from 2015 to 2019, including penalties, sanctions, and interest.

The tax dispute stemmed from allegations that Google had failed to file and pay taxes on revenue generated in Italy, based on the digital infrastructure it operates within the country. This comes after the company settled a previous tax case with Italian authorities in 2017 by paying 306 million euros, which acknowledged Google’s permanent presence in Italy.

In 2023, Italy had requested that Google pay 1 billion euros in unpaid taxes and penalties. However, with this latest settlement, the case against the tech giant appears to be resolved for now.

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Poland fails to appoint DSA regulator after EU deadline

A year after the EU’s legal deadline, Poland has yet to designate a national regulator to help the European Commission enforce the Digital Services Act (DSA), which governs online platforms. The country risks being referred to the EU courts for non-compliance, becoming the only member state not to have appointed a regulator. The European Commission initiated an infringement procedure in late 2023, urging Poland to meet the requirements.

Poland was also warned for not establishing penalty rules under the DSA. While Belgium has named its telecom regulator as the country’s DSA coordinator, Poland has not made such appointments, although the Ministry for Digitalization stated that it is ‘working on’ implementing the regulation. The process is still ongoing, with no clear timeline for completion.

The DSA, aimed at curbing illegal content online, required EU member states to designate national regulators by February 2024. These Digital Services Coordinators (DSCs) are meant to oversee the implementation of the rules and support the European Commission in monitoring compliance. Poland’s delay, along with Spain and the Netherlands, has led to formal notices from the Commission, which could take further legal action if the issues are not resolved soon.

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