Trump to adjust antitrust approach on Big Tech

Donald Trump is expected to scale back some of the antitrust policies introduced under President Joe Biden, including potentially softening the approach to breaking up large tech companies like Google. While Trump is likely to continue pursuing cases against Big Tech, such as the ongoing Department of Justice (DOJ) cases against Google and Apple, his recent comments indicate a more cautious stance. Trump questioned whether breaking up Google would destroy the company, suggesting that fairer practices could be achieved without drastic measures like a breakup.

The DOJ’s cases against Google over its dominance in online search and advertising technology are still in progress, with potential remedies, including divesting parts of its business, yet to be decided. The trial over these remedies won’t happen until 2025, providing Trump the opportunity to influence how the cases proceed. Additionally, Trump is expected to ease policies that have frustrated dealmakers, including the Biden administration’s strict merger review guidelines.

Trump’s approach to antitrust enforcement is likely to be less aggressive than Biden’s, especially regarding mergers and acquisitions. While he may ease restrictions on noncompete clauses and other regulatory measures, such as those championed by FTC Chair Lina Khan, his policies are expected to maintain some level of antitrust action.

US pressures Italy to end web tax on tech giants

The United States has renewed pressure on Italy to scrap its domestic web tax, sources say, warning that ignoring the request could lead to retaliatory tariffs. Introduced in 2019, the Italian tax imposes a 3% levy on digital transactions for tech giants like Meta, Google, and Amazon, yielding under €500 million annually. While Washington views the tax as unfairly targeting US firms, Italy has held firm, awaiting clarity on the stance of the incoming US administration.

Italian Prime Minister Giorgia Meloni’s 2025 budget proposal includes expanding the tax’s reach by removing revenue minimums, which could bring in an additional €51.6 million. Italy’s Treasury hopes this adjustment, which would require more companies to pay, might address US concerns about the tax’s perceived bias. However, some Italian lawmakers argue for keeping the focus on large US tech companies, with proposed amendments aimed at raising the tax rate but maintaining protections for small and medium enterprises.

Forza Italia Senator Maurizio Gasparri supports stronger regulations on ‘web giants’ but acknowledges the risk of a backlash from the US if the changes move forward.

Apple faces first EU fine under Digital Markets Act

Apple is set to face its first fine under the European Union‘s Digital Markets Act (DMA) for breaching the bloc’s antitrust regulations, according to sources familiar with the matter. This comes after EU regulators charged Apple in June for violating the new tech rules, which are designed to curb the dominance of big tech companies. The fine, expected to be imposed later this month, adds to Apple’s ongoing antitrust challenges in the EU.

In March, Apple was hit with a €1.84 billion fine for restricting competition in the music streaming market through its App Store policies. The company also faces additional investigations related to new fees on app developers and potential violations of the DMA, which could result in penalties of up to 10% of its global annual revenue.

The Digital Markets Act, which came into effect earlier this year, mandates Apple to make changes, such as allowing users to choose default browsers and permitting alternative app stores on its operating systems. Apple has not commented on the impending fine, and the European Commission has yet to provide a response.

UK’s CMA suspends GXO Wincanton merger citing competition risks

The Competition and Markets Authority (CMA) has temporarily halted the proposed £762 million acquisition of UK logistics firm Wincanton by American logistics company GXO, citing potential competition risks. This decision follows the CMA’s preliminary investigation, which raised concerns about the merger’s impact on the already competitive contract logistics services sector.

An interim enforcement order (IEO) is now in effect, preventing any integration of the two firms during the review process. The CMA’s phase 1 investigation indicated that the merger could reduce competition in a market valued at £16 billion in the UK, where GXO and Wincanton are key players competing for contracts with major retailers. Naomi Burgoyne, senior director of mergers at the CMA, warned that diminished competition could lead to higher costs for consumers reliant on efficient delivery services.

GXO has five days to propose solutions to address the CMA’s concerns. If the proposals are found inadequate, the regulator will proceed to a more detailed phase two investigation. In response to the CMA’s announcement, a GXO spokesperson stated that they are reviewing the decision and are committed to collaborating with the CMA to achieve a favourable outcome, asserting that the acquisition would benefit logistics customers across the UK and support government initiatives for economic growth.

Apple’s iPad OS faces EU scrutiny over tech compliance

The European Union’s (EU) antitrust regulators are set to review Apple’s iPad operating system to ensure it aligns with the bloc’s new Digital Markets Act (DMA), designed to curb the power of major tech companies. This assessment comes after Apple submitted a compliance report for iPad OS, which the EU had designated as a crucial ‘gateway’ for businesses to reach consumers. Apple’s obligations under the DMA include enabling alternative app stores, allowing users to set their preferred web browser, and supporting third-party device features like headphones and pens.

In a statement, the European Commission confirmed that it would ‘carefully assess’ Apple’s compliance measures for iPad OS. Feedback from stakeholders, including other tech companies and consumer advocates, will be considered during the review process. Apple has not yet commented on the EU’s latest scrutiny of its iPad software.

The DMA, introduced earlier this year, represents the EU’s latest effort to prevent monopolistic practices among large tech firms. Non-compliance with these rules could result in hefty fines, up to 10% (and 20% for repeat offences) of a company’s global revenue, adding pressure on Apple to meet the standards set by EU regulators.

UK court sides with Google in YouTube Shorts trademark case

Google has won a trademark lawsuit brought by Shorts International, a British company specialising in short films, over the use of the word ‘shorts’ in YouTube‘s short video platform, YouTube Shorts. London’s High Court found no risk of consumer confusion between Shorts International’s brand and YouTube’s platform, which launched in 2020 as a response to TikTok‘s popularity.

Shorts International, known for its short film television channel, argued that YouTube Shorts infringed on its established trademark. However, Google’s lawyer, Lindsay Lane, countered that it was clear the ‘Shorts’ platform belonged to YouTube, removing any chance of brand confusion.

Judge Michael Tappin ruled in favour of Google, stating that the use of ‘shorts’ by YouTube would not affect the distinctiveness or reputation of Shorts International’s trademark. The court’s decision brings the legal challenge to a close, dismissing all claims of infringement.

Temu eyes EU anti-counterfeit initiative amid scrutiny

Chinese online retailer Temu is exploring joining a European Union-led initiative to combat counterfeit goods, which includes major retailers such as Amazon, Alibaba, and brands like Adidas and Hermes. Temu is scheduled to present at an upcoming meeting on 11 November as a ‘potential new signatory’ to the Memorandum of Understanding on counterfeits, a voluntary anti-counterfeit agreement supported by the European Commission.

Temu’s interest in the initiative coincides with increasing regulatory pressure from the European Union. The European Commission recently launched an investigation into Temu over potential breaches of EU laws prohibiting the sale of illegal goods, following an earlier request for information under the Digital Services Act (DSA), a law governing large online platforms. In May, the Commission designated Temu a ‘very large online platform,’ requiring it to take stronger measures against illegal content and counterfeits.

As a subsidiary of China‘s PDD Holdings, Temu has rapidly expanded in Europe and the United States, luring customers with low prices and a ‘shop like a billionaire’ slogan. Its platform offers items like clothing and accessories that often resemble popular branded products at significantly lower prices. Some industry insiders have expressed concerns that Temu’s entry into the anti-counterfeit network could impact the credibility of the initiative.

Nvidia’s $700 million Run:ai acquisition under EU review

Nvidia is seeking antitrust approval from the European Union for its planned acquisition of Israeli AI startup Run:ai valued at approximately $700 million. The European Commission has raised concerns that the merger could harm competition in the markets where both companies operate, prompting increased scrutiny of tech giants acquiring startups. This move reflects a broader regulatory trend aimed at preventing potential monopolistic practices in the tech sector.

Although the acquisition does not meet the EU’s turnover threshold for automatic review, it was flagged by Italy’s competition agency, which requested the EU to investigate further. The Commission has accepted this request, indicating that the transaction could significantly impact competition across the European Economic Area.

In response to the regulatory review, Nvidia expressed its readiness to cooperate and answer any questions regarding the acquisition. The company is committed to ensuring that AI technologies remain accessible across various platforms, emphasising its role as a leader in the chip industry, particularly for AI applications like ChatGPT.

Indonesia bans Google and Apple smartphone sales

Indonesia has banned sales of Google’s Pixel smartphones due to regulations requiring a minimum of 40% locally manufactured components in devices sold within the country. This decision follows a similar ban on Apple’s iPhone 16 for failing to meet these content standards. According to Febri Hendri Antoni Arief, a spokesperson for Indonesia’s industry ministry, the rules aim to ensure fairness among investors by promoting local sourcing and partnerships.

Google stated that its Pixel phones are not officially distributed in Indonesia, though consumers can still import them independently if they pay applicable taxes. Officials are also considering measures to deactivate unauthorised imports to enforce compliance.

Despite Google and Apple not being leading brands in Indonesia, the market holds significant potential for global tech firms due to its large, tech-savvy population. However, Bhima Yudhistira from the Centre of Economic and Law Studies warned that these restrictions may deter foreign investment, creating what he calls ‘pseudo protectionism’ that could dampen investor sentiment in the region.

EU moves to formalise disinformation code under DSA

The EU‘s voluntary code of practice on disinformation will soon become a formal set of rules under the Digital Services Act (DSA). According to Paul Gordon, assistant director at Ireland’s media regulator Coimisiúin na Meán, efforts are underway to finalise the transition by January. He emphasised that the new regulations should lead to more meaningful engagement from platforms, moving beyond mere compliance.

Originally established in 2022 and signed by 44 companies, including Google, Meta, and TikTok, the code outlines commitments to combat online disinformation, such as increasing transparency in political advertising and enhancing cooperation during elections. A spokesperson for the European Commission confirmed that the code aims to be recognised as a ‘Code of Conduct’ under the DSA, which already mandates content moderation measures for online platforms.

The DSA, which applies to all platforms since February, imposes strict rules on the largest online services, requiring them to mitigate risks associated with disinformation. The new code will help these platforms demonstrate compliance with the DSA’s obligations, as assessed by the Commission and the European Board of Digital Services. However, no specific timeline has been provided for the code’s formal implementation.