Consumer protection

Antitrust investigation finds Amazon and Flipkart prioritised sellers

An Indian antitrust investigation has concluded that Amazon and Walmart’s Flipkart breached competition laws by favouring select sellers on their platforms. The probe, initiated by the Competition Commission of India (CCI), revealed that both companies created an ecosystem that prioritised certain sellers, making it harder for other retailers to compete.

Reports found that these preferred sellers were given an unfair advantage, appearing higher in search results and receiving additional services, leading to deep discounting practices. The findings highlighted that these practices harmed smaller retailers and stifled competition, especially in the mobile phone sector.

Both Amazon and Flipkart are expected to review the reports and submit objections before any fines are imposed. These companies have consistently denied any wrongdoing and argued that their operations comply with Indian regulations.

The investigation stemmed from complaints by traditional retailers and follows growing concerns about the dominance of e-commerce giants in India. Both Amazon and Flipkart remain major players in a market projected to be worth $160 billion by 2028.

DoT and TRAI to enhance telecom services with new measures

The Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) are taking significant steps to enhance the security and quality of telecom services. To combat spam and cyber fraud, TRAI has implemented measures to disconnect and blacklist entities involved in bulk spam operations, resulting in the removal of over 3.5 lakh spam numbers and the blacklisting of 50 entities.

Additionally, the DoT’s Sanchar Saathi platform allows citizens of India to report suspicious activity, leading to the disconnection of over one crore fraudulent connections and the blocking of 2.27 lakh handsets involved in cybercrime. Concurrently, TRAI has updated its Quality of Service (QoS) regulations to enforce stricter benchmarks for network performance metrics such as call drop rates, packet drop rates, and latency. Effective 1 October 2024, these regulations will introduce monthly monitoring from April 2025, enhancing oversight and accountability to improve network quality.

DoT and TRAI are also implementing proactive measures to tackle the issue of unregistered telemarketers. For that, TRAI is considering immediate service suspensions for telemarketers not registered, based on a predefined threshold of complaints, and is working on proactive detection of suspected spammers.

These initiatives are part of a broader strategy to create a more secure and user-friendly telecom environment. Through these collaborative efforts, the DoT and TRAI ensure ongoing enhancements in telecom services, infrastructure, and quality assurance, aiming to provide users with a more reliable and customer-centric experience.

EU court rules against Apple’s tax deal and Google’s market practices

In a significant victory for European regulators, the EU’s top court upheld rulings against Apple and Google, marking key moments in the ongoing battle against Big Tech. Margrethe Vestager, the EU’s antitrust chief, has been at the forefront of efforts to challenge multinational companies benefiting from tax deals and engaging in anti-competitive behaviour. On Tuesday, the courts sided with her in two major cases involving Apple’s tax deal with Ireland and Google’s market practices.

The Apple case, which dates back to 2016, revolved around 13 billion euros ($14.4 billion) in back taxes. The European Commission argued that Apple’s arrangement with Ireland allowed the tech giant to pay an artificially low tax rate, at times as low as 0.005%. The Luxembourg-based Court of Justice agreed, confirming that Apple had received unlawful state aid and Ireland must recover the amount. Apple expressed disappointment, arguing that its income had already been taxed in the US and that the EU was attempting to change the rules retroactively.

Ireland, too, had challenged the ruling despite benefiting from the corporate taxes of large tech companies. The country’s low tax rates had attracted giants like Apple to establish European headquarters there. However, in a shift that signals broader changes in global tax policy, Ireland has since agreed to align with new international tax standards, even though its multinational tax take continues to grow.

On the same day, the European Court also ruled against Google in a separate antitrust case. In 2017, the European Commission fined Google 2.42 billion euros for abusing its market dominance by promoting its shopping service over smaller European rivals. Google appealed the decision but was met with a firm rejection. The court ruled that Google’s practices were discriminatory and did not constitute fair competition on the merits. Google, like Apple, voiced disappointment with the decision, though it claimed to have changed its business practices since the original ruling.

The ruling adds to the 8.25 billion euros in antitrust fines Google has accumulated in Europe over the past decade. The company continues to face scrutiny, with ongoing cases related to its Android operating system and AdSense advertising platform and an investigation that could lead to selling parts of its adtech business.

Why does this matter?

The decisions against Apple and Google reflect a broader movement within Europe to challenge the power of Big Tech. These cases are part of a growing trend where governments seek to hold multinational companies accountable for their tax practices and market behaviours. Other major corporations, such as IKEA and Nike, are also under investigation for their tax arrangements as regulators across the globe attempt to reshape the corporate landscape and foster a fairer competitive environment.

Beijing condemns Dutch move to align with US chip restrictions

China has expressed dissatisfaction with the Dutch government’s decision to extend export controls on ASML’s chipmaking equipment. The Dutch government announced it would expand licensing requirements on ASML’s 1970i and 1980i DUV lithography machines, aligning its policies with the US export restrictions introduced last year.

China has criticised Washington’s efforts to pressure allies like the Netherlands and Japan to impose restrictions that limit Chinese access to advanced semiconductor technologies. Beijing described the move as part of the United States strategy to maintain global dominance and strongly opposed the measures.

In its statement, China urged the Netherlands to avoid abusing export controls, emphasising that such actions could harm Sino-Dutch cooperation in the semiconductor sector and damage business interests on both sides. Dutch Trade Minister Reinette Klever defended the decision, saying it was made in the interest of safety.

The Dutch restrictions have effectively blocked ASML, the world’s largest chipmaking equipment supplier, from sending its most advanced lithography systems to China, impacting China’s ability to produce cutting-edge semiconductors.

Federal Bureau of Investigation cryptocurrency fraud report 2023

In 2023, the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) reported a significant rise in financial fraud involving cryptocurrencies such as bitcoin, ether, and tether. The IC3 received over 69,000 public complaints about cryptocurrency fraud, resulting in estimated losses exceeding $5.6 billion.

The report highlights that investment scams are the most pervasive form of cryptocurrency exploitation, responsible for nearly 71% of all cryptocurrency-related losses. Call centre frauds, including tech support scams and government impersonation schemes, accounted for about 10% of these losses. The decentralised nature of cryptocurrencies, coupled with the speed and irreversibility of transactions, makes them particularly attractive to criminals and poses substantial challenges in recovering stolen funds.

IC3 plays a central role in aggregating and analysing these complaints to identify trends and develop strategies to combat fraud. Timely and accurate complaint reporting is crucial for aiding law enforcement in their investigations.

US DoJ takes Google to court over monopoly

Google is facing another antitrust battle in a Virginia court, where the US Justice Department has accused the tech giant of monopolising the online advertising industry. Prosecutors argue that Google controls the infrastructure that handles hundreds of thousands of ad sales each second, using its size and dominance to push out competitors and restrict customer choice.

The trial, which US District Judge Leonie Brinkema is hearing, focuses on claims that Google acquired rivals and manipulated market transactions to gain control over both advertisers and publishers. The government’s case highlights how Google allegedly stifled competition and locked customers into its products, tactics reminiscent of traditional monopolies.

Google’s defence, led by attorney Karen Dunn, refuted the accusations by arguing that the case is based on outdated market conditions. She noted that Google now faces significant competition from other major tech companies like Amazon and Comcast and that its tools have evolved to work alongside its rivals.

As the trial progresses, prosecutors push for Google to be forced to sell off essential parts of its ad business, including Google Ad Manager. The case is part of a broader effort by US authorities to curb the dominance of Big Tech, with other lawsuits targeting companies such as Apple, Meta, and Amazon.

UK regulator accuses Google of abusing ad market power

The UK’s antitrust regulator, the Competition and Markets Authority (CMA), has accused Google of abusing its dominant position in digital advertising, restricting competition in the sector. According to the CMA, Google’s practices, which allegedly favour its ad exchange platform, have hurt British publishers and advertisers, impacting their ability to generate revenue through digital ads. The regulator’s provisional findings suggest that Google has been using its influence in the advertising market’s buying and selling sides since 2015.

The CMA highlighted the potential harm these practices could cause businesses relying on online ads to fund their websites and apps, reaching millions across the UK. Juliette Enser, interim executive director of enforcement, stressed that this anti-competitive behaviour undermines free or lower-cost digital content. In response, Google disagreed with the CMA’s conclusions, arguing that its advertising tools support businesses of all sizes in a highly competitive industry.

The issue is part of a larger global scrutiny of Google’s advertising practices, with similar investigations underway by the US Department of Justice and the European Commission. In 2023, the EU regulators even suggested that Google might need to sell parts of its adtech business, though the company dismissed this idea as disproportionate. The CMA is now set to review Google’s response before deciding on possible fines or other legal actions to end the infringement.

Latvia’s offers pre-licensing consultations for crypto-asset service providers ahead of new EU regulations

Latvia’s central bank has announced that is offering free pre-licensing consultations for crypto-asset service providers (CASPs) to ensure they are well-prepared for the phased implementation of MiCA across the EU. These consultations will provide comprehensive guidance on regulatory requirements, necessary documentation, and initial compliance assessments, aiding companies in navigating the complex regulatory landscape.

Starting from January 2025, the central bank will accept applications and issue licences for CASPs in accordance with MiCA. In the meantime, unlimited pre-licensing consultations will be available, reflecting the bank’s commitment to fostering a robust and compliant crypto-asset ecosystem.

This proactive measure forms part of Latvia’s broader strategy to position itself as an attractive location for CASPs within the EU. Latvia’s efforts are further highlighted by its introduction of the “Crypto Asset Services Law” and substantial financial commitments toward digitalisation and innovation, underscoring its ambition to become a hub for blockchain and crypto companies.

Latvia is following a trend seen in other EU countries, such as France, which has also begun accepting CASP applications ahead of the official enforcement date. These proactive steps by EU nations underscore the importance of regulatory preparedness in the evolving crypto landscape, positioning themselves as favourable destinations for crypto-asset service providers.

Coinbase faces class action over SEC lawsuit and asset risks

A US federal judge has rejected Coinbase’s attempt to dismiss a class-action lawsuit from shareholders. The lawsuit claims that Coinbase, the largest US cryptocurrency exchange, misled investors by downplaying the chances of facing legal action from the US Securities and Exchange Commission (SEC). The ruling comes 15 months after the SEC sued Coinbase for allegedly operating as an unregistered securities exchange, leading to a significant drop in the company’s stock price.

The shareholders argue that Coinbase and its top executives falsely portrayed the company’s position, emphasising that the crypto assets it listed were not securities and thus unlikely to attract regulatory action. Additionally, they allege that the company misled investors about the risks customers faced regarding their assets in the event of bankruptcy. Coinbase’s share price fell sharply after revealing disappointing earnings and adding new disclosures in May 2022.

While the judge dismissed claims that Coinbase falsely denied engaging in proprietary trading, some allegations can proceed, including those about misrepresenting risks to customer assets. Coinbase remains confident in its legal standing and is prepared to defend its case in court.

Google faces competition scrutiny over Android Auto app block

Google’s refusal to include Enel’s e-mobility app, JuicePass, on its Android Auto platform may violate competition rules, according to an adviser to Europe’s top court. The Italian antitrust authority previously fined Google €102 million ($113.2 million) in 2021 for blocking the app, which helps drivers navigate and manage messages from their dashboards.

Court Advocate General Laila Medina supported Italy’s stance, arguing that Google’s actions could breach competition laws by unfairly excluding third-party apps and harming consumers. Google had cited security concerns and the lack of a specific template for the app, but it has since taken steps to address these issues, adding the necessary template for compatibility with Android Auto.

The Court of Justice of the European Union (CJEU) will make the final decision, which is expected to rule in the coming months. Google has stated it is working to resolve the issue and is already offering similar apps globally on Android Auto.