Competition regulation

Apple and Google face scrutiny over browser competition

Britain’s Competition and Markets Authority (CMA) has concluded that the mobile browser market, led by Apple and Google, is not functioning effectively for consumers and businesses. The findings support the regulator’s decision to launch an investigation into the sector earlier this year.

Concerns are largely focused on Apple’s policies regarding internet access through its Safari browser, which dominates its devices with an 88% market share. Google’s Chrome browser holds a 77% share on Android devices.

The UK CMA’s independent inquiry group suggested that if Apple and Google are found to have ‘strategic market status’ (SMS), regulatory interventions may be necessary to encourage competition. These could include measures allowing rival browsers to introduce new features.

Apple has defended its approach, arguing that proposed remedies could undermine security and user experience, while Google highlighted Android’s openness in fostering competition and innovation.

The investigation forms part of a broader effort to assess competition in mobile ecosystems, with final decisions expected later this year.

The inquiry group’s chair, Margot Daly, stated that limited competition between mobile browsers is stifling innovation, reinforcing the need for regulatory action.

The CMA’s ongoing probe into the dominance of Apple and Google aims to ensure a fairer and more competitive digital marketplace.

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EU draft AI code faces industry pushback

The tech industry remains concerned about a newly released draft of the Code of Practice on General-Purpose Artificial Intelligence (GPAI), which aims to help AI providers comply with the EU‘s AI Act.

The proposed rules, which cover transparency, copyright, risk assessment, and mitigation, have sparked significant debate, especially among copyright holders and publishers.

Industry representatives argue that the draft still presents serious issues, particularly regarding copyright obligations and external risk assessments, which they believe could hinder innovation.

Tech lobby groups, such as the CCIA and DOT Europe, have expressed dissatisfaction with the latest draft, highlighting that it continues to impose burdensome requirements beyond the scope of the original AI Act.

Notably, the mandatory third-party risk assessments both before and after deployment remain a point of contention. Despite some improvements in the new version, these provisions are seen as unnecessary and potentially damaging to the industry.

Copyright concerns remain central, with organisations like News Media Europe warning that the draft still fails to respect copyright law. They argue that AI companies should not be merely expected to make ‘best efforts’ not to use content without proper authorisation.

Additionally, the draft is criticised for failing to fully address fundamental rights risks, which, according to experts, should be a primary concern for AI model providers.

The draft is open for feedback until 30 March, with the final version expected to be released in May. However, the European Commission’s ability to formalise the Code under the AI Act, which comes into full effect in 2027, remains uncertain.

Meanwhile, the issue of copyright and AI is also being closely examined by the European Parliament.

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Indian police arrest Garantex administrator wanted by US

Indian authorities have arrested Aleksej Besciokov, an administrator of the Russian cryptocurrency exchange Garantex, at the request of the US.

Besciokov, a Russian resident and Lithuanian national, was taken into custody in Kerala on charges of money laundering and violating sanctions. The Central Bureau of Investigation (CBI) said he was planning to flee India, and Washington is expected to seek his extradition.

The arrest follows a joint operation by the US, Germany, and Finland to dismantle Garantex’s online infrastructure.

The exchange, under US sanctions since 2022, has processed at least $96 billion in cryptocurrency transactions since 2019. The US Justice Department recently charged two administrators, including Besciokov, with operating an unlicensed money-transmitting business.

Experts warn that sanctioned exchanges often attempt to bypass restrictions by setting up new entities. Blockchain research firm TRM Labs called the Garantex takedown a significant step in combating illicit finance but emphasised the need for continued vigilance against evasion tactics.

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Singapore fraud case involves $390 million in transactions

Singapore prosecutors revealed on Thursday that a fraud case involving local firms accused of illegally supplying US servers to Malaysia involves transactions worth $390 million.

Three men—Singaporeans Aaron Woon and Alan Wei, along with Chinese national Li Ming—have been charged with deceiving tech giants Dell and Super Micro by misrepresenting the servers’ final destination.

The case has been linked to Chinese AI firm DeepSeek, which is under US scrutiny over the potential use of banned Nvidia chips.

While Singapore authorities confirmed the servers may have contained Nvidia components, they did not specify whether these were the restricted high-end semiconductors subject to US export controls.

Singapore’s Law and Home Affairs Minister K Shanmugam declined to comment on the alleged connection.

Prosecutors claim Wei paid himself tens of millions in dividends, while Woon received a multimillion-dollar bonus. Singaporean authorities are investigating a wider network of 22 individuals and companies suspected of similar fraudulent practices, with six additional arrests made.

The accused are set to reappear in court on May 2, while Malaysian authorities are also probing potential legal violations.

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India plans five-year limit on satellite spectrum

India’s telecom regulator plans to recommend allocating satellite broadband spectrum for around five years to assess market adoption, a move that goes against Elon Musk’s Starlink, which has been pushing for a 20-year permit.

The Telecom Regulatory Authority of India (TRAI) is finalising key recommendations on the licensing timeframe and pricing, opting for a shorter period to monitor industry growth before making long-term commitments.

A government official confirmed TRAI is inclined towards a five-year limit, allowing regulators to review the market and revise spectrum pricing as needed.

However, this decision could impact Starlink’s long-term plans in India, as its deals with Reliance and Airtel are still pending regulatory approvals. Meanwhile, industry forecasts suggest India’s satellite communication sector could expand over tenfold, reaching $25 billion by 2028.

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Zhipu AI raises 500 million yuan amid rising competition

Chinese startup Zhipu AI has secured 500 million yuan (£54.8 million) in funding from the state-owned Huafa Group, following a separate 1 billion yuan capital raise earlier this month.

Huafa Group, a government-backed conglomerate based in Zhuhai, Guangdong province, announced its investment as Chinese cities compete to support AI firms, a sector seen as critical in Beijing’s technological rivalry with the US.

The funding comes amid increasing competition in China’s AI industry, particularly with Hangzhou-backed DeepSeek, whose large language models have gained attention for their cost-effectiveness and performance against Western alternatives.

Zhipu AI, established in 2019 and recognised as one of China’s ‘AI tigers,’ has received investments from major tech firms including Tencent, Meituan, and Xiaomi. The startup was valued at 20 billion yuan (£2.2 billion) in a funding round last July, according to business registration platform Qichacha.

With the new funding, Zhipu AI aims to enhance technological innovation and further develop its GLM foundation model.

However, the company faces challenges on the international stage, having been added to the US Commerce Department’s export control list in January, restricting its access to American components.

Despite these hurdles, China continues to bolster its AI sector as it seeks to establish a leading position in global artificial intelligence development.

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FTC confirms no delay in Amazon trial

The US Federal Trade Commission (FTC) announced on Wednesday that it does not need to delay its September trial against Amazon, contradicting an earlier claim by one of its attorneys about resource shortages.

Jonathan Cohen, an FTC lawyer, retracted his statement that cost-cutting measures had strained the agency’s ability to proceed, assuring the court that the FTC is fully prepared to litigate the case.

FTC Chairman Andrew Ferguson reaffirmed the agency’s commitment, dismissing concerns over budget constraints and stating that the FTC will not back down from taking on Big Tech.

Earlier in the day, Cohen had described a ‘dire resource situation,’ citing employee resignations, a hiring freeze, and restrictions on legal expenses. However, he later clarified that these challenges would not impact the case.

The lawsuit, filed in 2023, accuses Amazon of using ‘dark patterns’ to mislead consumers into enrolling in automatically renewing Prime subscriptions, a program with over 200 million users.

With claims exceeding $1 billion, the trial is expected to be a high-profile battle between regulators and one of the world’s largest tech companies. Amazon has denied any wrongdoing, and three of its senior executives are also named in the case.

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Spain approves bill to regulate AI-generated content

Spain’s government has approved a bill imposing heavy fines on companies that fail to label AI-generated content, aiming to combat the spread of deepfakes.

The legislation, which aligns with the European Union’s AI Act, classifies non-compliance as a serious offence, with penalties reaching up to €35 million or 7% of a company’s global revenue.

Digital Transformation Minister Oscar Lopez stressed that AI can be a force for good but also a tool for misinformation and threats to democracy.

The bill also bans manipulative AI techniques, such as subliminal messaging targeting vulnerable groups, and restricts the use of AI-driven biometric profiling, except in cases of national security.

Spain is one of the first EU nations to implement these strict AI regulations, going beyond the looser US approach, which relies on voluntary compliance.

A newly established AI supervisory agency, AESIA, will oversee enforcement, alongside sector-specific regulators handling privacy, financial markets, and law enforcement concerns.

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Eurozone officials stress need for digital euro amid US crypto shift

Eurozone finance ministers have raised concerns over the United States’ shift towards embracing cryptocurrencies, warning that it could pose risks to Europe’s monetary sovereignty and financial stability.

The discussion follows President Donald Trump’s executive order to establish a strategic reserve of cryptocurrencies using government-owned tokens, signalling a major policy shift from the previous administration.

Officials stressed the importance of accelerating the European Central Bank‘s plans to launch a digital euro to maintain control over the region’s financial system.

The head of the European Stability Mechanism, Pierre Gramegna, warned that the United States stance could encourage major technology firms to relaunch digital payment systems using dollar-backed stablecoins, potentially challenging the euro’s dominance in the global financial system.

Eurozone leaders are concerned that a resurgence of stablecoin-based payment platforms could undermine the euro and increase reliance on US-backed digital assets.

Policymakers emphasised that Europe must take proactive steps to safeguard its financial autonomy, ensuring that the euro remains a strong and stable currency in an increasingly digital economy.

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Indian citizens rescued from job scam networks in Southeast Asia

India has repatriated nearly 300 of its citizens who were lured to Southeast Asian countries with fake job offers and forced into cybercrime and other fraudulent activities.

The rescue was coordinated by Indian embassies in Myanmar and Thailand, with an Indian Air Force aircraft bringing the workers back from Mae Sot in Thailand. Many had been trapped in scam centres along the Thailand-Myanmar border, where criminal networks operate large-scale online fraud schemes.

Authorities in Thailand have intensified their crackdown on these illegal operations, arresting 100 people last week. Countries including China and Indonesia have also been working to bring back their nationals who were similarly deceived.

According to the United Nations, criminal syndicates have trafficked hundreds of thousands of people to these centres, generating billions of dollars from online scams.

The government of India has warned its citizens against falling prey to fraudulent job offers and urged them to verify employers and recruitment agents before accepting positions abroad.

Officials continue to collaborate with international agencies to combat human trafficking and cyber fraud, aiming to prevent further exploitation of vulnerable workers.

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