Japan investigates generative AI for fair competition

Japan’s Fair Trade Commission has launched an investigation into the rapidly expanding generative AI market. Concerns have been raised about the dominance of US tech companies, particularly in semiconductors and the specialist workforce needed for AI development.

The commission has invited businesses and users to provide input on antitrust risks, with a first report expected next spring. The study aims to identify challenges for new companies entering the AI market, which often depends on advanced semiconductors and vast data resources.

Nvidia’s dominance in the semiconductor market, controlling 80% of chips used for AI, is highlighted as a potential barrier to competition. The commission also noted risks related to monopolisation of specialists by large IT companies and prioritising their own AI products.

Other nations, including the US, European Union, and South Korea, are conducting similar investigations. Study in Japan intends to balance AI’s benefits with ensuring fair market access and competition.

X must pay fine over child protection dispute

An Australian court has upheld a ruling requiring Elon Musk’s X, previously known as Twitter, to pay a $418,000 fine. The fine was issued for failing to cooperate with a request from the eSafety Commissioner regarding anti-child-abuse measures on the platform.

X had contested the penalty, arguing that it was no longer bound by regulatory obligations following a corporate restructure under Musk’s ownership. However, the court ruled that the platform was still required to respond to the request made by the Australian internet safety regulator.

The eSafety Commissioner stated that accepting X’s argument could have set a worrying precedent for foreign companies merging to avoid regulatory responsibilities. Civil proceedings against X have also begun due to its noncompliance.

Musk’s platform has clashed with authorities in Australia before, notably in a case where X refused to remove content showing a stabbing incident. The company claimed that one country should not dictate global online content.

TikTok faces lawsuit in Texas over child privacy breach

Texas Attorney General Ken Paxton has filed a lawsuit against TikTok, accusing the platform of violating children’s privacy laws. The lawsuit alleges that TikTok shared personal information of minors without parental consent, in breach of Texas’s Securing Children Online through Parental Empowerment Act (SCOPE Act).

The legal action seeks an injunction and civil penalties, with fines up to $10,000 per violation. Paxton claims TikTok failed to provide adequate privacy tools for children and allowed data to be shared from accounts set to private. Targeted advertising to children was also a concern raised in the lawsuit.

TikTok’s parent company, ByteDance, is being held responsible for allegedly prioritising profits over child safety. Paxton stressed the importance of holding large tech companies accountable for their role in protecting minors online.

The case was filed in Galveston County court, with TikTok yet to comment on the matter. The lawsuit represents a broader concern about the protection of children’s online privacy in the digital age.

Rivals urge EU to rein in Microsoft’s Edge advantage

Several rival web browsers, including Vivaldi, Waterfox, and Wavebox, along with a web development advocacy group, have called on the European Commission to impose stricter antitrust regulations on Microsoft’s Edge browser. In a letter dated 17 September, the group argued that Edge, pre-installed on all Windows devices, is given an unfair distribution advantage, limiting competition. This follows a recent lawsuit by Opera, a Norwegian browser company, which challenged the Commission’s decision to exempt Edge from the Digital Markets Act (DMA).

DMA aims to stop dominant online platforms from restricting consumer choices by setting guidelines for ‘gatekeeper’ services. Rival browsers argue that Microsoft’s practice of making Edge the default browser on Windows undermines the spirit of the law. They contend that Edge’s pre-installed presence gives it an unfair advantage, making it harder for independent browsers to compete, especially as many users rely on Edge to download alternatives.

Neither Microsoft nor the European Commission has commented on the issue, but critics have pointed out that Edge’s pop-up messages often misrepresent the features of rival browsers. Despite these allegations, Microsoft Edge holds only a small portion of the global browser market, with just over 5%, while Google Chrome dominates with 66%.

AEOS lands €10M investment to unify TV and streaming ad targeting

Croatian startup AEOS, formerly known as AdScanner, has secured €10 million in a Series B investment round led by Taiwania Capital, with additional backing from existing investors. This funding follows significant revenue growth and product innovations that aim to redefine how advertisers reach audiences across both traditional television and streaming platforms.

Founded in 2012, AEOS has become a key player in the European TV advertising market, using data-driven technology to enhance campaign planning and audience measurement. Operating in Croatia, Germany, Austria, Bulgaria, and Serbia, the company plans to use the new investment to accelerate growth and develop its product offerings, particularly in the AI space.

The funding will support the development of AI-driven tools that help advertisers optimise their campaigns across platforms. AEOS has already gained recognition for its Cockpit solution, offering near real-time analytics and bridging the gap between traditional broadcast media and digital streaming services.

In 2024, AEOS will launch its second-generation AI-based planning tool, designed to unify TV and streaming campaigns into one seamless ecosystem. The tool allows advertisers to plan, measure, and optimise their campaigns across multiple devices with greater accuracy than ever before.

Amazon’s AI partnership with Anthropic cleared by UK regulator

The United Kingdom‘s Competition and Markets Authority (CMA) has confirmed that Amazon’s $4 billion partnership with AI startup Anthropic will not be subject to a more in-depth investigation. The regulator determined that the deal did not raise competition concerns under Britain’s merger regulations.

Amazon expressed support for the CMA’s decision, noting that it acknowledged the regulator’s lack of jurisdiction over the collaboration. The CMA also cleared a similar partnership between Microsoft and Inflection AI, while a deal between Alphabet and Anthropic remains under review.

Anthropic, which was co-founded by siblings Dario and Daniela Amodei, former OpenAI executives, reiterated that its partnerships with major tech firms do not compromise its independence or governance. The startup has received billions in investments from several large companies.

Amid growing antitrust scrutiny of deals between startups and big tech firms, regulators are closely monitoring collaborations like those involving Anthropic and its partners.

Judge rules in favour of eBay in environmental lawsuit

A United States federal judge has dismissed a Department of Justice lawsuit accusing eBay of violating environmental laws by allowing the sale of harmful products on its platform. The ruling cited Section 230 of the Communications Decency Act, which shields online platforms from liability over user content.

The judge concluded that eBay’s administrative support for sellers did not make it liable for the unlawfulness of the products sold. She also ruled that eBay was not a ‘seller’ as it did not physically possess or hold title to the items in question.

The lawsuit accused eBay of enabling the sale of thousands of devices designed to evade vehicle emissions controls, unregistered pesticides, and products containing harmful chemicals. The government argued that this conduct violated several environmental laws, including the Clean Air Act.

eBay responded by stating its dedication to maintaining a trusted marketplace and promised to continue investing in measures to prevent the sale of prohibited items. The Justice Department declined to comment on the ruling.

Google and Samsung face antitrust lawsuit from Epic Games

Epic Games has accused Google and Samsung of conspiring to protect Google’s Play Store from competition through Samsung’s Auto Blocker feature. The gaming company plans to file a lawsuit in a United States court, alleging that the Auto Blocker, introduced in late 2023, deters users from downloading Android apps from sources outside Google’s Play Store or Samsung’s Galaxy Store.

Epic argues that Samsung’s Auto Blocker was made the default setting in mid-2024 to reduce the impact of a 2023 US court ruling that required Google to make it easier for users to access apps from alternative sources. Epic claims this action violates US antitrust laws by reducing consumer choice and stifling competition, which would otherwise drive down app prices.

Tim Sweeney, CEO of Epic Games, described the lawsuit as part of a larger global effort to defend competition and its benefits for consumers. The company also plans to raise these concerns with regulators in the European Union, which has scrutinised Google’s business practices in the past.

Epic previously sued Google in 2020, accusing the tech giant of maintaining an illegal monopoly over app distribution and payments. The lawsuit follows the verdict in that case, where a US court found Google had acted unlawfully.

Microsoft upgrades Copilot for better user engagement

Microsoft has updated its consumer AI assistant, Copilot, giving it a friendlier voice and the ability to analyse web pages while users browse. This enhancement is part of a broader initiative led by Mustafa Suleyman, CEO of Microsoft AI, who noted that a diverse team of creative professionals, including psychologists and comedians, is refining Copilot’s tone and style to set it apart in the crowded AI market.

In a demonstration of the upgraded Copilot, the AI suggested a housewarming gift by recommending popular olive oils after engaging in a conversation about the user’s preferences. This update, which started rolling out on Tuesday, marks one of the initial efforts from Suleyman’s newly established division dedicated to consumer products and technology research.

Although Microsoft is well-known for its business software, it is encountering significant competition in the consumer market, particularly from Google’s search engine. Launched last year, Copilot seeks to attract more users with its improved voice capabilities, making interactions feel more engaging and responsive. New features for Copilot Pro subscribers, such as ‘Think Deeper,’ will enable users to assess their options, while the upcoming ‘Copilot Vision’ function will allow users to interact with content in their Microsoft Edge browser without retaining any data.

Suleyman envisions Copilot as a digital companion that continuously learns from users’ interactions across different Microsoft platforms, such as Word and Windows, with their consent. He noted that Bill Gates is excited about the AI’s capabilities, especially the potential for Copilot to read and parse emails, suggesting that these features are on the horizon.

Court grants Amazon partial dismissal in US FTC lawsuit

Amazon has secured a partial victory in a US antitrust case brought by the Federal Trade Commission (FTC). The federal court ruled in favour of Amazon’s request to dismiss some of the claims, though others will proceed. The ruling, issued in Seattle, has not yet been fully disclosed.

The FTC initially accused Amazon of using unfair tactics to maintain its dominance in the online market. The lawsuit claimed Amazon’s algorithms raised prices, costing US households over $1 billion. The company has stated it ceased using the controversial pricing system in 2019.

Although the court granted some of Amazon’s requests, other parts of the case remain active. Judge John Chun ruled that the trial would proceed in two phases, separating evidence on violations and proposed remedies. The FTC continues to pursue remaining claims.

Amazon, along with other tech giants like Meta, Apple, and Google, is facing increased scrutiny from antitrust regulators. FTC Chair Lina Khan has been vocal in challenging Amazon’s practices, citing longstanding concerns about its market influence.