Competition regulation Archives | Page 70 of 114

Pakistan aims to become global crypto and AI leader

Pakistan has set aside 2,000 megawatts of electricity in a major push to power Bitcoin mining and AI data centres, marking the start of a wider national digital strategy.

Led by the Pakistan Crypto Council (PCC), a body under the Ministry of Finance, this initiative aims to monetise surplus energy instead of wasting it, while attracting foreign investment, creating jobs, and generating much-needed revenue.

Bilal Bin Saqib, CEO of the PCC, stated that with proper regulation and transparency, Pakistan can transform into a global powerhouse for crypto and AI.

By redirecting underused power capacity, particularly from plants operating below potential, Pakistan seeks to convert a longstanding liability into a high-value asset, earning foreign currency through digital services and even storing Bitcoin in a national wallet.

Global firms have already shown interest, following recent visits from international miners and data centre operators.

Pakistan’s location — bridging Asia, the Middle East, and Europe — coupled with low energy costs and ample land, positions it as a competitive alternative to regional tech hubs like India and Singapore.

The arrival of the Africa-2 subsea cable has further boosted digital connectivity and resilience, strengthening the case for domestic AI infrastructure.

It is just the beginning of a multi-stage rollout. Plans include using renewable energy sources like wind, solar, and hydropower, while tax incentives and strategic partnerships are expected to follow.

With over 40 million crypto users and increasing digital literacy, Pakistan aims to emerge not just as a destination for digital infrastructure but as a sovereign leader in Web3, AI, and blockchain innovation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI hallucination at center of Anthropic copyright lawsuit

Anthropic, the AI company behind the Claude chatbot, has been ordered by a federal judge to respond to allegations that it submitted fabricated material—possibly generated by AI—as part of its defense in an ongoing copyright lawsuit.

The lawsuit, filed in October 2023 by music publishers Universal Music Group, Concord, and ABKCO, accuses Anthropic of unlawfully using lyrics from over 500 songs to train its chatbot. The publishers argue that Claude can produce copyrighted material when prompted, such as lyrics from Don McLean’s American Pie.

During a court hearing on Tuesday in California, the publishers’ attorney claimed that an Anthropic data scientist cited a nonexistent academic article from The American Statistician journal to support the argument that Claude rarely outputs copyrighted lyrics.

One of the article’s alleged authors later confirmed the paper was a ‘complete fabrication.’ The judge is now requiring Anthropic to formally address the incident in court.

The company, founded in 2021, is backed by major investors including Amazon, Google, and Sam Bankman-Fried, the disgraced crypto executive convicted of fraud in 2023.

The case marks a significant test of how AI companies handle copyrighted content, and how courts respond when AI-generated material is used in legal proceedings.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Apple opens NFC chip, PayPal taps into it

PayPal has launched its tap-to-pay feature for iPhone users in Germany, allowing contactless payments at terminals that support Mastercard.

The rollout follows pressure from the European Union under the Digital Markets Act, which forced Apple to open up its NFC chip to third-party apps.

Currently, the feature is exclusive to iPhones and does not support Apple Watch. It mirrors earlier moves by other apps like Norway’s Vipps, which began using Apple’s newly accessible NFC hardware late last year.

Apple has also started expanding NFC access globally, enabling developers to integrate in-app payments and allowing businesses to accept contactless payments via iPhones using third-party apps like Venmo and PayPal Zettle.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US scraps Biden AI chip export rule

The US Department of Commerce has scrapped the Biden administration’s Artificial Intelligence Diffusion Rule just days before it was due to come into force.

Introduced in January, the rule would have restricted the export of US-made AI chips to many countries for the first time, while reinforcing existing controls.

Rather than enforcing broad restrictions, the Department now intends to pursue direct negotiations with individual countries.

The original rule divided the world into three tiers, with countries like Japan and South Korea spared restrictions, middle-tier countries such as Mexico and Portugal facing new limits, and nations like China and Russia subject to tighter controls.

According to Bloomberg, a replacement rule is expected at a later date.

Instead of issuing immediate new regulations, officials released industry guidance warning companies against using Huawei’s Ascend AI chips and highlighted the risks of allowing US chips to train AI in China.

Secretary Jeffrey Kessler criticised the Biden-era policy, promising a ‘bold, inclusive’ AI strategy that works with allies while limiting access for adversaries.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Alphabet stock dips as AI tools begin to dent Google search volumes

Alphabet shares fell sharply on Wednesday following courtroom testimony that Google searches on Apple’s Safari browser declined in April—reportedly for the first time ever.

Apple’s senior executive Eddy Cue said the drop came as users increasingly turned to AI tools like ChatGPT and Perplexity instead of traditional search engines.

The market reaction was swift, with Alphabet losing ground before partially recovering after Google clarified that overall search volumes remain on the rise.

Several analysts argued the sell-off may have been exaggerated, noting Apple’s incentive to downplay Google’s dominance as the companies face antitrust scrutiny. In 2022, Google reportedly paid Apple $20 billion to remain Safari’s default search provider.

Still, some analysts warn of a longer-term shift. Tech veteran Gene Munster called it the ‘beginning of the decline’, arguing that the way people find information is undergoing a fundamental change. Unlike search results pages, AI assistants provide direct answers—undermining Google’s ad-driven revenue model.

While Alphabet still owns a broad portfolio including YouTube, Android, Google Cloud and autonomous driving company Waymo, its core business is facing structural headwinds.

Investors are already adjusting expectations. Alphabet’s price-to-earnings ratio has dropped to 18, down from a 10-year average of 28, reflecting growing concerns around disruption.

Some see an opportunity; others, a reckoning. Whether this moment marks a short-term dip or a longer-term revaluation will depend on how Google adapts to the AI-driven shift in how people search for—and monetise—information.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta and Ray-Ban launch smart glasses in the UAE

Meta Platforms, Inc. and EssilorLuxottica have officially launched the Ray-Ban Meta smart glasses in the United Arab Emirates, unveiling the new tech-forward eyewear during an exclusive event on May 7 at Gitano Beach Club.

The collection will be available across all Ray-Ban stores and partner opticians in the UAE starting May 12.

Ray-Ban Meta glasses combine stylish design with cutting-edge technology, offering users hands-free photo and video capture, discreet audio playback through open-ear speakers, and access to built-in Meta AI.

The glasses allow for real-time translations—including sign language—voice-activated search, and contextual AR experiences such as landmark information, menu translations, or recipe suggestions based on visible items.

A standout feature is the livestreaming function, enabling users to broadcast directly to Instagram Live or Facebook Live for up to 30 minutes from their own point of view.

Users can toggle between the glasses and their phone camera, creating immersive, real-time content. The MetaAI companion app (iOS and Android) also supports easy content import, editing, and special effects.

The glasses include five microphones and upgraded audio hardware for clearer sound and ambient awareness.

Live language translation support—covering Spanish, French, Italian, and English—even while offline—is expected to launch in the UAE later this year. Software updates will continue enhancing the glasses’ AI capabilities over time.

Offered in styles such as Wayfarer, Wayfarer Large, and the universally fitting Skyler, Ray-Ban Meta glasses are available with prescription, sun, clear, polarised, or Transitions® lenses.

Prices start at AED 1,330 and include a sleek charging case. The glasses support pairing with multiple devices and offer a blend of fashion, function, and future-ready innovation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Apple turns to AI as Google loses ground in Safari searches

Google is seeing a historic dip in search traffic through Apple’s Safari browser, marking the first such decline ever, according to Apple’s Eddy Cue.

The shift comes as users increasingly turn to AI-powered search tools like ChatGPT, Perplexity and Microsoft Copilot, which offer direct and conversational responses without the need to browse traditional websites.

In response, Apple is now exploring a major revamp of Safari to better integrate AI-driven search capabilities.

AI is gradually reshaping how people interact with information online, posing a serious challenge to Google’s long-standing dominance. Cue noted that although current AI tools are not perfect, they are rapidly improving and may soon offer compelling alternatives to traditional search engines.

Apple currently supports ChatGPT within Siri and may soon include Google’s Gemini AI, as it continues to diversify the digital search options available on its platforms.

The shift is especially significant given Google’s $20 billion annual deal to remain Safari’s default search engine. The US justice department is scrutinising these types of agreements in its case against Google’s parent company, Alphabet, suggesting such arrangements limit genuine competition.

Cue stressed that AI has opened the door to new players in the search market and that true competition only arises when technological disruption invites innovation.

As large language models grow more advanced, their appeal increases—despite occasional errors known as hallucinations.

AI tools offer richer, more intuitive user experiences, often skipping the step of clicking through to websites. While this threatens traffic for content providers, it also underscores a pivotal shift: AI is no longer just a feature—it is transforming how people seek and consume information.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

FTC says Amazon misused legal privilege to dodge scrutiny

Federal regulators have accused Amazon of deliberately concealing incriminating evidence in an ongoing antitrust case by abusing privilege claims. The Federal Trade Commission (FTC) said Amazon wrongly withheld nearly 70,000 documents, withdrawing 92% of its claims after a judge forced a re-review.

The FTC claims Amazon marked non-legal documents as privileged to keep them from scrutiny. Internal emails suggest staff were told to mislabel communications by including legal teams unnecessarily.

One email reportedly called former CEO Jeff Bezos the ‘chief dark arts officer,’ referring to questionable Prime subscription tactics.

The documents revealed issues such as widespread involuntary Prime sign-ups and efforts to manipulate search results in favour of Amazon’s products. Regulators said these practices show Amazon intended to hide evidence rather than make honest errors.

The FTC is now seeking a 90-day extension for discovery and wants Amazon to cover the additional legal costs. It claims the delay and concealment gave Amazon an unfair strategic advantage instead of allowing a level playing field.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Google faces DOJ’s request to sell key ad platforms

The US Department of Justice (DOJ) has moved to break up Google’s advertising technology business after a federal judge ruled that the company holds illegal monopolies across two markets.

The DOJ is seeking the sale of Google’s AdX digital advertising marketplace and its DFP platform, which helps publishers manage their ad inventory.

It follows a ruling in April by Federal Judge Leonie Brinkema, who found that Google’s dominance in the online advertising market violated antitrust laws.

AdX and DFP were key acquisitions for Google, particularly the purchase of DoubleClick in 2008 for $3.1 billion. The DOJ argues that Google used monopolistic tactics, such as acquisitions and customer lock-ins, to control the ad tech market and stifle competition.

In response, Google has disputed the DOJ’s move, claiming the proposed sale of its advertising tools exceeds the court’s findings and could harm publishers and advertisers.

The DOJ’s latest filing also comes amid a separate legal action over Google’s Chrome browser, and the company is facing additional scrutiny in the UK for its dominance in the online search market.

The UK’s Competition and Markets Authority (CMA) has found that Google engaged in anti-competitive practices in open-display advertising technology.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Apple forced to ease rules on crypto apps

Crypto developers scored a major win after a US judge ruled that Apple violated a court injunction by continuing to restrict off-app purchases. The ruling stops Apple from blocking external payment links and removes fees on out-of-app purchases.

Effective immediately, developers can direct users to outside payment systems without facing Apple’s usual 30% charge. Judge Yvonne Gonzalez Rogers emphasised that the court’s 2021 injunction was not open to negotiation. She warned Apple that further attempts to control competition would not be tolerated.

The crypto community sees the decision as a breakthrough. Developers can now link to NFT collections and external platforms without additional permissions.

Industry voices like Alex Masmej and crypto analyst Xero called the ruling ‘hugely bullish,’ suggesting a major shift for mobile-based crypto projects.

Epic Games has also announced plans to relaunch Fortnite on the US App Store following the ruling.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!