The United States Commerce Department has announced a new rule that could streamline the process for sending AI chips to data centres in the Middle East. The rule will allow data centres to apply for Validated End User (VEU) status, enabling them to receive AI chips through a general authorisation, eliminating the need for individual licences for each shipment.
The move follows concerns in Washington that Middle Eastern countries could act as intermediaries for China to acquire US chips that are restricted from direct export to China. G42, an AI company based in the United Arab Emirates with historical connections to China, has been at the centre of these concerns, despite its efforts to distance itself from China and comply with US regulations.
The VEU program will involve rigorous screening to ensure safeguards are in place to prevent the misuse or diversion of US technology. The Commerce Department emphasised the importance of this review process to protect national security.
The Bureau of Industry and Security reiterated its commitment to facilitating international AI growth while mitigating risks to US and global security, aiming to balance technological development with safety concerns.
Meta Platforms has announced it will not immediately join the European Union‘s voluntary AI Pact, which is a temporary initiative ahead of the AI Act coming into force. The company is currently focusing on compliance with the forthcoming regulations set out in the act, but may sign the pact at a later stage.
The EU’s AI Act, agreed in May and adopted by the European Council, will introduce strict rules governing the development and use of artificial intelligence. Under these regulations, companies must provide detailed summaries of the data used to train their AI models. The majority of the law’s provisions will take effect from August 2026.
In the interim, the AI Pact encourages companies to voluntarily adopt some of the key requirements of the forthcoming act. Meta has expressed its support for harmonised EU regulations but is prioritising work on meeting the obligations of the AI Act.
The Israeli Communications Ministry is taking decisive steps to stimulate competition in the cellular infrastructure market by welcoming new entrants. That initiative aims to diversify a landscape dominated by a few major players, foster innovation, and attract investment in cellular services.
By opening the market to fresh competition, the ministry intends to accelerate the rollout of 5G networks nationwide, benefiting consumers with improved service quality and more choices. Ultimately, this effort is critical as Israel strives to bolster its technological infrastructure and meet the increasing demand for faster, more reliable communication services.
However, the Israeli Communications Ministry needs help balancing these changes with the concerns of existing industry stakeholders. The market currently comprises three primary cellular networks – Pelephone, Cellcom, and Partner (including Hot Mobile), each operating its infrastructure independently. Consequently, introducing new players may disrupt the established order, raising questions about potential impacts on service quality and competition.
Moreover, the ministry has encountered resistance from the workers’ union of Pelephone, which contends that the proposed changes could undermine competition and jeopardise national security. The union argues that this initiative prioritises financial interests over the integrity of communication services. In this context, they express concern that instead of addressing fundamental infrastructure issues, the ministry opts for a superficial solution that may lead to long-term negative consequences for the industry and consumers.
Italy‘s antitrust agency has launched an investigation into a Dublin-based company that runs Shein’s website and app over potentially deceptive environmental claims. The investigation targets Infinite Styles Services Co. Limited, accusing Shein of using unclear and misleading language to present its products as environmentally sustainable. It specifically questions claims related to Shein’s ‘evoluSHEIN’ collection, which may mislead consumers about the use of eco-friendly fabrics and the recyclability of its clothing.
Shein stated that it is prepared to cooperate with Italian authorities and provide necessary information fully. This investigation is part of a larger European push to combat ‘greenwashing,’ with the EU enforcing new rules that require companies to substantiate their environmental claims with clear evidence. Italy’s antitrust body also highlighted inconsistencies between Shein’s sustainability promises and the rise in greenhouse gas emissions the company reported in 2022 and 2023.
The case reflects a wider trend as European regulators intensify scrutiny of companies making environmental claims. Under Italy’s consumer protection laws, companies found guilty of misleading practices could face fines ranging from 5,000 to 10 million euros.
Google has filed a formal complaint with the European Commission over Microsoft’s cloud business practices. The tech giant argues that Microsoft uses its dominant position with Windows Server to stifle competition and lock customers into its Azure platform. Specifically, Google claims Microsoft enforces heavy mark-ups on users of rival cloud services and restricts access to essential security updates.
The dispute follows a recent settlement where Microsoft paid €20 million to resolve concerns raised by European cloud providers. However, the agreement excluded key rivals like Google and Amazon Web Services (AWS), fuelling further criticism. Google insists only regulatory action will halt what it sees as Microsoft’s monopolistic approach, urging the EU to step in and ensure fair competition.
Microsoft denies the accusations, stating they have settled similar issues amicably with other European providers. A Microsoft spokesperson expressed confidence that Google would fail to persuade the European Commission, as it had failed with EU businesses.
Google believes immediate intervention is necessary to prevent the cloud market from becoming increasingly restrictive. They warn that Microsoft’s influence over the European cloud sector, which is growing rapidly, could limit options for customers and hurt competitors.
The Philippine government has recently launched significant initiatives to enhance the construction and development of telecommunications and internet infrastructure across the nation. Specifically, by issuing the implementing rules and regulations (IRR) under Executive Order 32, the government seeks to simplify the often-criticised permitting process, which has been plagued by complexity and delays.
Consequently, the proactive approach is essential for facilitating the swift and efficient deployment of critical connectivity services, which are vital for economic growth and development. To bolster this effort, the government has formed a technical working group that includes key agencies such as the Department of Information and Communications Technology, the Anti-Red Tape Authority, and the National Telecommunications Commission.
The group is tasked with crafting the necessary rules and regulations within a defined 60-day timeframe. By collaborating with various stakeholders, the government aims to ensure that the new guidelines are comprehensive and practical and effectively address the challenges currently faced in building telecommunications infrastructure.
In addition to these measures, the Philippine government recognises the importance of establishing a One-Stop Shop for Construction Permits in cities. That initiative, therefore, centralises the permitting process and provides applicants with a single point of contact for all their needs. As a result, this enhancement improves accessibility and supports local economies by facilitating smoother business operations.
Furthermore, the government in the Philippines is dedicated to promoting fair competition within the telecommunications sector by implementing regulations prohibiting anti-competitive practices and enforcing a zero-backlog policy for all permit applications. Ultimately, these measures are designed to ensure timely infrastructure development and equitable opportunities for all stakeholders involved.
The European Commission approved Emirates Telecommunications (e&) €2.15-billion acquisition of Czech PPF Telecoms’ assets after thoroughly investigating under its newly implemented Foreign Subsidies Regulation (FSR). This deal, covering operations in Bulgaria, Hungary, Serbia, and Slovakia, raised concerns among the EU regulators regarding potential market distortion due to foreign subsidies from the UAE government.
The Commission launched the first-ever investigation under the FSR, a regulatory tool aimed at preventing foreign state aid from undermining competition in the EU’s internal market. The probe revealed that e& had received foreign subsidies through grants, loans, and state guarantees but found no immediate negative impact on competition at the time of the acquisition.
Ultimately, the European Commission approved the deal after securing important commitments from e& to mitigate future risks. These concessions included relinquishing unlimited state guarantees, restricting the funding of PPF’s EU activities to emergencies requiring prior approval, and committing to notify the Commission of any future acquisitions within the EU, regardless of their size. These safeguards ensured the transaction would not disrupt the competitive landscape in the EU market while highlighting the Commission’s robust enforcement of the FSR in regulating foreign subsidies and maintaining a fair marketplace.
The US House has recently passed a bill aimed at streamlining federal permitting for semiconductor manufacturing projects, a move anticipated to benefit companies like Intel and TSMC. This legislation seeks to address concerns that lengthy environmental reviews could hinder the construction of domestic chip plants, an essential component of US manufacturing strategy, especially as chipmakers have pledged around $400 billion in investments following the 2022 Chips and Science Act.
Many projects are experiencing delays despite investments. Intel’s facilities in Arizona, initially scheduled to open in 2024, may now begin operations in early 2025. Additionally, a $20 billion project in Ohio has been pushed back beyond 2026 due to market challenges and subsidy holdups. The new bill introduces criteria to exempt some projects from National Environmental Policy Act (NEPA) reviews, enabling construction to start before the year ends.
The legislation poses a challenge for the Biden administration, which seeks to enhance domestic manufacturing while achieving ambitious climate targets. As the government tackles this dilemma, the urgency to lessen dependence on Asian chip production, especially from Taiwan, continues to be a key priority.
In a crucial court case, Coinbase, the largest US cryptocurrency exchange, confronted the Securities and Exchange Commission (SEC) in Philadelphia. The exchange is calling on the SEC to create new regulations for digital assets stemming from a lawsuit over the agency’s failure to address a 2022 petition. The petition aimed to clarify when a digital asset is deemed a security and suggested a new regulatory framework specifically designed for the cryptocurrency sector.
The SEC rejected Coinbase’s request in December 2023, asserting that current regulations are adequate for the cryptocurrency sector. Coinbase’s attorney argued that the SEC’s refusal to clarify registration processes has hindered the exchange’s ability to operate within US laws. In contrast, an SEC lawyer maintained that the agency is not obligated to create new rules, suggesting that businesses like Coinbase must adapt to the existing regulatory framework.
This legal dispute highlights an ongoing tension between the cryptocurrency industry and the SEC, which asserts that many crypto tokens qualify as securities and fall under its jurisdiction. The crypto sector largely views itself as existing in a regulatory grey area, pushing for new legislation to provide more precise guidelines for managing digital assets. This ongoing struggle underscores the need for a cohesive framework that addresses the unique challenges of the rapidly evolving crypto market.
As the appeals court considers both sides, the outcome could have significant implications for how cryptocurrencies are regulated in the United States, potentially shaping the industry’s future.
A German court has ruled that Amazon is using Nokia’s patented video technologies without obtaining a proper licence, according to a statement from Nokia. The decision, made by the Munich Regional Court, found that Amazon’s streaming devices are illegally utilising Nokia’s patented video-related technologies, which the Finnish company holds rights to.
Nokia’s Chief Licensing Officer, Arvin Patel, expressed satisfaction with the ruling, stating that Amazon has been selling these devices without the necessary licences in place. The ruling highlights ongoing disputes between tech giants over intellectual property.
In response to Nokia’s legal actions, Amazon filed a lawsuit in July in a Delaware federal court, accusing the company from Finland of infringing on a dozen Amazon patents related to cloud-computing technology.
This legal battle is part of a broader pattern of disputes between major tech companies, as patent rights continue to play a critical role in the development of new technologies and services.
