Competition regulation

Nvidia revenue at risk due to US AI chip export limits

Nvidia faces significant revenue pressure following new US restrictions on artificial intelligence chip exports. The regulations, aimed at limiting the distribution of advanced processors to most countries outside close US allies, are intended to prevent China from accessing technology that could strengthen its military capabilities. Analysts warn these curbs could hinder Nvidia’s growth, as nearly half of its chip sales could be affected.

A substantial portion of Nvidia’s revenue comes from global markets, with 56% of sales outside the US and China accounting for around 17%. The company’s stock dropped by 2% following the announcement. Nvidia Vice President of Government Affairs Ned Finkle argued the restrictions could stifle global innovation and weaken US leadership in AI development by imposing bureaucratic control over chip design and marketing.

Industry experts believe major cloud providers such as Microsoft, Google, and Amazon could benefit from the new rules. These firms may receive exemptions for data centre development, allowing them to expand market share as AI leaders. Their financial strength and advanced infrastructure make them well-positioned to thrive under the revised framework.

Uncertainty remains over the long-term impact of the export curbs, with the rules set to take effect in 120 days. Some analysts suggest the incoming Trump administration might revise the policy, potentially negotiating new deals with individual firms and countries while maintaining a focus on national security.

Apple’s new app fees face EU antitrust scrutiny

Apple’s latest charges for app developers are under fresh scrutiny from the European Union’s antitrust regulators. Concerns have been raised over the company’s new ‘core technology fee,’ which requires developers to pay €0.50 per installed app. Regulators are investigating whether the fee could increase costs for software makers or force them to change their business models.

The European Commission has circulated new questionnaires to developers, seeking insights on the financial impact of the fee and Apple’s claim that the changes will lower costs for most developers. The inquiry comes as major US tech companies urge President-elect Donald Trump to challenge EU regulations targeting American firms. Apple has not yet responded to the EU’s latest investigation.

Under the EU’s Digital Markets Act (DMA), Apple must comply with stricter rules on how it operates its App Store. The legislation allows regulators to fine major tech platforms up to 10% of their annual revenue for non-compliance. Apple, which has faced ongoing scrutiny in both the US and Europe over developer fees, says that 85% of developers using its App Store do not pay any commission.

EU reevaluates big tech probes amid shifting political landscape

The European Commission is reassessing its investigations into major tech companies, including Apple, Meta, and Google, under its landmark Digital Markets Act (DMA), according to the Financial Times. The review, which covers cases initiated since March 2024, comes as tech giants urge President-elect Donald Trump to push back against EU regulatory scrutiny. Sources suggest Trump’s presidency has influenced the review, though it was not the direct trigger.

The DMA, implemented in 2022, seeks to curb the dominance of Big Tech by imposing strict rules on their practices and fines of up to 10% of annual revenue for violations. The review may lead to narrowing or altering the scope of current probes, with all decisions and potential fines paused during this process. Technical work on the cases, however, will continue.

This development coincides with Meta’s recent overhaul of its US fact-checking program and CEO Mark Zuckerberg’s signals of a more conciliatory stance toward the Trump administration. Meanwhile, EU regulators are also examining whether Elon Musk’s social media platform X has violated content moderation rules, further highlighting the tech industry’s complex regulatory challenges.

Apple faces $1.8 billion UK lawsuit

Apple is defending itself against a $1.8 billion mass lawsuit in a London tribunal, accused of abusing its market dominance by charging app developers a 30% commission through its App Store. The lawsuit, brought on behalf of around 20 million UK iPhone and iPad users, claims the fees have unfairly inflated app costs for consumers.

Rachael Kent, the academic leading the case, argues Apple has leveraged its monopoly to exclude competition and impose restrictive terms on app developers. Apple’s lawyers counter that the fees reflect the benefits of its iOS ecosystem, emphasising its focus on security, privacy, and innovation. They also noted that most developers are exempt from paying commissions.

This trial marks the UK’s first class-action-style lawsuit against a tech giant under its evolving legal framework. Similar cases against Google, Meta, and Amazon are in progress, including a $1.1 billion lawsuit against Google over Play Store fees scheduled for later this year. The trial is expected to last seven weeks, with testimony from Apple’s CFO anticipated soon.

Synopsys gets EC approval for $35b Ansys acquisition

Synopsys has secured conditional approval from the European Commission for its $35 billion acquisition of simulation software company Ansys. The deal, aimed at merging Synopsys’ semiconductor design expertise with Ansys’ simulation capabilities, promises to enhance solutions for complex chip and system creation. However, the acquisition is still awaiting regulatory approval in the UK and the US.

To address competition concerns, both companies have agreed to divest key business units. Synopsys will sell its Optical Solutions Group to Keysight Technologies, while Ansys will part with its PowerArtist tool, both of which are critical for tech industries like augmented reality and autonomous vehicles. These divestitures are intended to preserve healthy competition in crucial technology markets.

The deal is expected to close by mid-2025, pending final approvals and the completion of the divestments.

Indonesia plans social media age restrictions to protect children

Indonesia is preparing to introduce regulations setting a minimum age for social media users, aiming to shield children from potential online risks, according to Communications Minister Meutya Hafid. The announcement follows Australia’s recent ban on social media access for children under 16, which imposes penalties on platforms like Meta’s Facebook and Instagram, as well as TikTok, for non-compliance.

While the specific age limit for Indonesia remains undecided, Minister Hafid stated that President Prabowo Subianto supports the initiative, emphasising the importance of child protection in the digital space. The move highlights concerns about young users’ exposure to inappropriate content and data privacy risks.

Indonesia, with a population of approximately 280 million, has significant internet usage. A recent survey found internet penetration at 79.5%, with nearly half of children under 12 accessing the web, often using platforms like Facebook, Instagram, and TikTok. Among “Gen Z” users aged 12 to 27, internet penetration reached 87%. The proposed regulation reflects growing global efforts to prioritise child safety online.

UK launches probe into Google’s search practices

Britain’s antitrust regulator, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search operations to assess their impact on consumers, businesses, and competition. With Google handling 90% of UK online searches and supporting over 200,000 businesses through advertising, the CMA aims to ensure fair competition and innovation in search services, said CMA chief Sarah Cardell.

The probe will evaluate whether Google’s dominant position restricts market entry and innovation, as well as whether it provides preferential treatment to its own services. The CMA will also investigate the company’s extensive collection and use of consumer data, including its role in AI services. The findings, expected within nine months, could lead to measures such as requiring Google to share data with rivals or giving publishers more control over their content.

Google has defended its role, stating that its search services foster innovation and help UK businesses grow. The company pledged to work constructively with the CMA to create rules that benefit both businesses and users. The investigation follows similar scrutiny in the US, where prosecutors have pushed for major reforms to curb Google’s dominance in online search.

Microsoft sues hackers over AI security breach

Microsoft has taken legal action against a group accused of bypassing security measures in its Azure OpenAI Service. A lawsuit filed in December alleges that the unnamed defendants stole customer API keys to gain unauthorised access and generate content that violated Microsoft’s policies. The company claims the group used stolen credentials to develop hacking tools, including software named de3u, which allowed users to exploit OpenAI’s DALL-E image generator while evading content moderation filters.

An investigation found that the stolen API keys were used to operate an illicit hacking service. Microsoft alleges the group engaged in systematic credential theft, using custom-built software to process and route unauthorised requests through its cloud AI platform. The company has also taken steps to dismantle the group’s technical infrastructure, including seizing a website linked to the operation.

Court-authorised actions have enabled Microsoft to gather further evidence and disrupt the scheme. The company says additional security measures have been implemented to prevent similar breaches, though specific details were not disclosed. While the case unfolds, Microsoft remains focused on strengthening its AI security protocols.

China to tighten oversight of online platforms and livestream e-commerce

China’s State Administration for Market Regulation (SAMR) announced plans to strengthen regulations on online platforms and the growing livestream e-commerce sector. The move aims to foster fair competition, protect smaller businesses, and improve consumer trust, according to SAMR Deputy Head Shu Wei.

At a press briefing, Shu highlighted plans to enhance transparency, reduce merchants’ operational costs, and address concerns over platform practices that disrupt fair competition. The regulator aims to improve existing frameworks to safeguard merchants’ and consumers’ rights against platform rule abuse.

The SAMR also intends to crack down on deceptive marketing in livestream e-commerce, a sector experiencing rapid growth but facing criticism for misleading tactics. The initiative is expected to address dishonest practices while ensuring a healthier and more balanced market environment.

Lemon8 gains popularity amid TikTok uncertainty

As the possibility of a US TikTok ban looms, social media influencers are increasingly turning to Lemon8, a new app owned by TikTok’s parent company, ByteDance, as a potential alternative. Lemon8, which launched in the US and UK in 2023, combines the best aspects of Instagram and Pinterest, offering a “lifestyle community” with an emphasis on aesthetically pleasing images, videos, and lifestyle topics like beauty, fashion, food, travel, and pets. With over 1 million daily active users in the US, it has quickly gained traction, especially among Gen Z users.

Influencers are particularly drawn to Lemon8’s integration with TikTok, allowing creators to easily cross-post and boost engagement. Despite the platform’s appeal, however, Lemon8’s future remains uncertain. Like TikTok, it is owned by ByteDance, making it potentially subject to the same US regulations, including a law requiring the company to divest from TikTok or face a ban. This uncertainty is causing anxiety among creators who fear the loss of their primary platform and are seeking safer options like Lemon8.

The app itself is gaining attention for its simplicity and visual appeal. Lemon8 stands out by offering a quieter, less chaotic environment compared to the bustling, ad-heavy content on Instagram and TikTok. Its user interface is designed for easy scrolling, and the app encourages creativity through tools that enhance text, stickers, and music, making posts feel inspirational. While it’s still early days, Lemon8 offers a nostalgic, aesthetically curated space for users who may be growing weary of the larger social media giants.

Though the app is still new, it could provide a refreshing change from the current social media landscape, where content can often feel oversaturated or too commercialised. For now, Lemon8 offers a simpler, more intentional way to engage with online content—a return to a more “authentic” era of social media, reminiscent of earlier Instagram days. Whether it will succeed in the long term remains to be seen, but for now, it’s carving out a niche for users seeking a quieter digital space.