Chinese entities linked to the state are turning to cloud services from Amazon and its rivals to access advanced US chips and AI capabilities that are otherwise restricted. Over the past year, at least 11 Chinese organisations have sought cloud services to bypass US export restrictions on high-end AI chips, according to tender documents.
Amazon Web Services (AWS) was specifically mentioned as a provider in several cases, though Chinese intermediaries were used to access the services. US regulations focus on the export or transfer of physical technology, leaving a loophole for cloud-based access. This has allowed US companies to profit from China’s growing demand for computing power.
Efforts to close this loophole are ongoing. US legislators have expressed concerns, and the Commerce Department is considering new rules to tighten control over remote access to advanced technology. AWS has stated that it complies with all applicable laws, including trade regulations in the countries where it operates.
Microsoft’s cloud services have also been sought by Chinese universities for AI projects. These activities highlight the increasing demand for US technology in China and the challenges in enforcing export controls. Both Amazon and Microsoft declined to comment on specific deals, but the implications for US-China tech relations are significant.
A federal judge in Dallas has blocked the Federal Trade Commission’s (FTC) ban on noncompete agreements, which would have made it difficult for workers to join competing employers or start their own businesses. The ruling, issued by US District Judge Ada Brown, prevents the ban from taking effect on 4 September, although the FTC may still appeal the decision. Judge Brown stated that the FTC had exceeded its authority, calling the ban ‘unreasonably overbroad’ and potentially causing ‘irreparable harm.’
The FTC has expressed disappointment with the ruling, emphasising its commitment to challenging noncompete agreements that they argue restrict economic freedom, hinder innovation, and depress wages. The agency is considering an appeal, which would go to the Fifth Circuit Court of Appeals. In the meantime, the FTC will have to address noncompete issues on a case-by-case basis.
The ruling stems from a lawsuit filed by tax firm Ryan LLC, supported by the US Chamber of Commerce and Business Roundtable, which argued that the ban would make it harder for companies to retain talent. Despite the FTC’s claim that the ban would enable the creation of over 8,500 new businesses annually, the judge’s decision has put the nationwide ban on hold.
As a part of its ongoing investigation, the European Commission has imposed a final duty of 36.3% on imported electric vehicles manufactured in China. Some specified companies who have cooperated with the EU in the process of the investigation will, however, be subjected to a reduced tariff rate of 21.3%.
The EU launched the investigation in October 2023 against the backdrop of a witnessed spike in low-cost electric vehicle export from China to the EU and is expected to conclude by November this year. It seeks to examine whether Chinese clean tech products are dumping subsidised goods in the EU market and if Chinese-owned entities operating within the EU avail of any other unfair subsidy advantages.
The final duty needs further approval from EU’s 27 countries and will take effect unless a majority of 15 countries representing 65% of the EU population vote against it. These duties are expected to be confirmed by 30 October and typically last for five years. Meanwhile, talks between Europe and China could also lead to a compromise to mitigate or avoid the tariffs altogether.
Norway’s $1.7 trillion sovereign wealth fund, one of the world’s largest investors, is calling for improved AI governance at the board level across its portfolio companies. Carine Smith Ihenacho, the fund’s Chief Governance and Compliance Officer, highlighted the need for boards to not only understand how AI is being used but to also establish robust policies to ensure its responsible application. The fund, which holds stakes in nearly 9,000 companies, has already shared its views on AI with the boards of 60 major firms.
The call for enhanced AI competency in Norway comes as the fund has increased its focus on the technology sector, where it has significant investments in major tech companies like Microsoft and Apple. The fund’s emphasis is on ensuring that AI is used responsibly, particularly in high-impact sectors such as healthcare. Smith Ihenacho stressed that boards must be able to address key questions about their AI policies and risks, even if they don’t have a dedicated AI expert.
Despite its concerns, the fund supports the responsible use of AI, recognising its potential to drive innovation and productivity. The push for better AI governance is part of the fund’s broader strategy to maintain high standards in environmental, social, and corporate governance (ESG) across its investments.
As the AI sector continues to grow, the fund’s recommendations reflect a broader trend towards increasing accountability and transparency in the use of emerging technologies.
The US Department of Justice is exploring various options, including potentially breaking up Alphabet’s Google, after a recent court ruling found the tech giant guilty of illegally monopolising the online search market. The ruling was considered a significant victory for federal authorities challenging Big Tech’s dominance, which determined that Google spent billions to establish an illegal monopoly as the world’s default search engine.
Among the remedies the DOJ considers are forcing Google to share data with competitors and implementing safeguards to prevent the company from gaining an unfair advantage in AI products. Discussions have also included the possibility of divesting key assets such as the Android operating system, the AdWords search ad program, and the Chrome web browser.
Why does this matter?
The following case is part of a broader effort by federal antitrust regulators, who have previously taken action against other tech giants like Meta Platforms, Amazon, and Apple, accusing them of maintaining illegal monopolies. Alphabet and the DOJ have not yet commented on the ongoing deliberations.
The Competition Commission of India (CCI) issued a confidential order on 7 August, requiring all parties involved in the case to return the reports. The CCI emphasised the need to maintain the confidentiality of sensitive information to prevent unauthorised disclosures. Although the order did not specify what information Apple was concerned about, a source indicated that Apple was worried about disclosing revenue figures from its India app store and its market share.
The reports from the CCI’s antitrust investigations unit in 2022 and 2024 concluded that Apple had exploited its dominant position in the iOS app store market. The recall of these reports, now involving revisions to remove confidential information, will affect other parties, such as Match Group and the Indian startup group ADIF, which includes financial giant Paytm.
Why does it matter?
The CCI’s decision to recall the reports follows a private complaint by Apple, who argued that versions shared with parties contained its confidential business information. The recall is rare and is expected to delay the proceedings by two to three months, according to lawyers familiar with the CCI’s processes.
Globally, Apple is under scrutiny for its market practices. In June, European Union antitrust regulators accused Apple of violating tech rules, potentially leading to substantial fines. Apple also faces an inquiry regarding new fees imposed on app developers. Despite these allegations, Apple maintains that it is a minor player in India’s smartphone market, where Google’s Android system dominates. By mid-2024, iOS powered just 3.5% of India’s 690 million smartphones, although Apple’s presence in the country has grown significantly over the past five years.
Google’s dominance in the search engine market faces growing challenges from AI advancements, particularly from OpenAI, while also dealing with ongoing antitrust scrutiny. A recent US ruling deemed Google’s search monopoly illegal, marking a significant victory for regulators. However, experts argue that the real threat to Google is the rapid adoption of AI tools like OpenAI’s ChatGPT, reshaping how people search the internet.
Despite Google’s long-standing control of around 90% of the global search market, the rise of AI-powered search alternatives is beginning to erode its position. Former Google engineers and industry analysts believe AI’s impact will be felt much sooner than the effects of antitrust rulings, which often take years.
Historically, Apple has partnered with Google for search services, but it is now exploring AI-driven alternatives. The tech giant has announced a non-exclusive partnership with OpenAI to integrate ChatGPT into its devices, signalling a shift from Google’s search dominance.
OpenAI’s move into the search market with its AI-powered SearchGPT further intensifies the competition. Some analysts predict that AI’s influence on search could outpace regulatory actions, potentially dismantling Google’s monopoly.
Why does it matter?
Although Google has the resources to lead in AI development, its response could have been faster than that of competitors like OpenAI’s swift rise. Google’s initial missteps with AI-powered search features, which were criticised for inaccuracies and errors, have raised concerns about the company’s ability to maintain trust with users.
Analysts suggest that while antitrust actions may not immediately weaken Google’s position, they could pave the way for increased competition in the search market. However, breaking Google’s dominance will be challenging, and whether these developments will lead to significant changes in consumer choice remains to be seen.
The UK’s Competition and Markets Authority (CMA) has launched a formal antitrust investigation nto Amazon’s $4 billion investment in AI startup Anthropic. This follows recent scrutiny of Google’s ties with the same company, as concerns grow over Big Tech’s strategic investments in AI firms. The CMA’s investigation will determine whether Amazon’s stake in Anthropic could harm competition within the United Kingdom, despite the e-commerce giant not holding a majority stake or board seat in the startup.
Anthropic, established in 2021 and known for developing large language models like its chatbot Claude, has raised $10 billion so far. Its public benefit corporation status is intended to distinguish it from rivals in the AI space. Despite Amazon’s significant investment, Anthropic maintains that its strategic partnerships do not compromise its independence or ability to collaborate with other companies. The CMA has 40 working days to decide whether to advance the investigation to a more in-depth phase.
The CMA’s move comes amid increasing concerns about Big Tech companies adopting a ‘quasi-merger’ approach to avoid full acquisitions, which would likely face greater regulatory scrutiny. The regulator has also been examining similar deals, including Microsoft’s investments in AI startups like OpenAI and Mistral AI. The outcome of the CMA’s probe into Amazon’s investment in Anthropic could have broader implications for how tech giants are regulated in their acquisition strategies.
Amazon’s investment is part of a wider trend in which leading tech companies are securing stakes in promising AI startups to ensure they stay ahead in the rapidly evolving AI sector. With the CMA’s investigation underway, the regulatory landscape for these types of deals is expected to become more stringent, potentially reshaping future investment strategies in the AI industry.
Apple’s lucrative deal with Google, worth $20 billion annually, could be jeopardised after a US judge ruled that Google operates an illegal monopoly. The agreement makes Google’s search engine the default on Apple devices, contributing significantly to Apple’s profits. Analysts suggest that Google might have to terminate this deal to avoid antitrust actions, which could result in a 4-6% profit loss for Apple.
The current pact extends until September 2026, with Apple having the option to prolong it for another two years. However, the judge might rule that Google must stop paying for default placement or mandate that Apple offer users a choice of search engines. Apple’s shares remained flat amid this uncertainty, while Alphabet saw minimal change after a recent decline.
Legal proceedings related to this case could be lengthy, potentially dragging into 2026 with appeals. Meanwhile, Apple might explore alternatives, such as integrating Microsoft Bing or developing a new search product with OpenAI. The company has already announced plans to incorporate OpenAI’s ChatGPT and is negotiating with Google to add the Gemini chatbot.
Apple is also enhancing Siri with AI technology to improve its functionality, aiming to capitalise on new AI advancements despite the potential short-term financial impact of losing the Google deal. This shift towards AI-powered search services could help Apple navigate regulatory scrutiny and open new revenue streams.
A US judge ruled on Monday that Google violated antitrust law by spending billions to establish an illegal monopoly as the world’s default search engine. Such a landmark decision marks a significant victory for federal authorities challenging Big Tech’s market dominance. The ruling sets the stage for a second trial to determine potential remedies, including breaking up Google’s parent Alphabet, which would significantly alter the online advertising landscape.
Judge Amit Mehta of Washington, D.C., concluded that Google is a monopolist and has maintained its monopoly through unlawful means. Google controls 90% of the online search market and 95% of smartphone searches. The ‘remedy’ phase could be prolonged, followed by possible appeals that might extend the legal battle into the next few years.
Alphabet’s shares fell by 4.5% on Monday amid a broader decline in tech stocks due to recession fears. Google, which plans to appeal the ruling, stated that the decision acknowledges it offers the best search engine but argues it shouldn’t be restricted from making it easily accessible. US Attorney General Merrick Garland hailed the ruling as a historic win for the American people, emphasising that no company is above the law.
The ruling also highlighted that Google paid $26.3 billion in 2021 to secure its search engine’s default status on smartphones and browsers, maintaining its dominant market share. The legal case, filed by the Trump administration, is the first big decision in a series of antitrust cases against Big Tech, including ongoing lawsuits against Meta, Amazon, and Apple.
Senator Amy Klobuchar noted that the case’s progression across administrations demonstrates strong bipartisan support for antitrust enforcement. She praised the ruling as a significant victory for competition, reinforcing that antitrust enforcement remains robust in addressing monopolistic practices.
