European Union regulators will gather feedback next week on Google’s latest proposals to comply with competition rules aimed at curbing the dominance of Big Tech. The process could determine whether formal charges will be brought against the company.
The European Commission initiated an investigation in March to examine whether Google unfairly favours its own vertical search services, including Google Shopping, Flights, and Hotels, over rivals. Competitors have raised concerns that Google has not fully complied with the EU’s Digital Markets Act (DMA), which seeks to level the playing field for smaller competitors.
In response, Google has offered a proposal that would display a separate box for competitors below its product listings in search results. It also suggested adding two adjacent boxes to show intermediaries alongside direct suppliers like airlines and hotels. Regulators will hold workshops in September to hear from stakeholders, though Google will not participate.
Failure to address the regulators’ concerns could result in formal charges and a potential fine of up to 10% of Google’s global annual turnover. Google stated that it will continue to engage with the European Commission and the industry in the coming months.
Robinhood’s cryptocurrency platform has agreed to pay $3.9 million to settle claims it blocked customers from withdrawing crypto assets between 2018 and 2022. The California Attorney General’s office announced that Robinhood Crypto had violated state laws by preventing customers from accessing cryptocurrencies they had purchased, forcing them to sell their assets to leave the platform.
The platform was also accused of misleading customers regarding where their assets were held and falsely advertising competitive pricing through multiple trading venues. As part of the settlement, Robinhood will allow customers to withdraw their crypto assets to personal wallets and honour its commitments regarding trading practices.
Robinhood did not admit wrongdoing but expressed satisfaction with the settlement. The company aims to make cryptocurrency more accessible and affordable, according to a statement from its general counsel.
California’s Attorney General Rob Bonta emphasised that the settlement serves as a warning that all companies, including those in the cryptocurrency space, must comply with consumer protection laws. Robinhood shares rose slightly after the news.
Ericsson, Nokia, and Vodafone have united in a call to action for European policymakers to enhance digital competitiveness through advanced connectivity and digitalisation. They argue that achieving a true Digital Single Market is essential for fostering innovation and ensuring Europe can compete globally. The following initiative emphasises the need for coherent implementation of existing regulations and the avoidance of unnecessary regulatory burdens that could hinder the rapid deployment of digital infrastructure.
Ericsson, Nokia, and Vodafone highlight the importance of incentivising investment in advanced connectivity solutions, such as 5G and future 6G technologies. They stress that a modernised regulatory framework is crucial for maintaining healthy telecom operators capable of making substantial investments in infrastructure. This includes advocating for longer spectrum licenses and harmonised rules across the EU member states, facilitating a more robust telecommunications landscape.
Ericsson, Nokia, and Vodafone also propose that policymakers differentiate between business-to-business (B2B) and consumer-facing technologies when crafting regulations. Tailoring regulations to these sectors’ specific needs and operational structures will help create a more level playing field and address market failures effectively. This distinction is vital for fostering an environment where trusted companies can thrive and innovate.
Ericsson, Nokia, and Vodafone highlight the need for Europe to prepare for emerging technologies like quantum computing and AI. They advocate for policies encouraging experimentation and attracting private investment, ensuring Europe can leverage these advancements while addressing security challenges.
The UK’s Competition and Markets Authority (CMA) has cleared Microsoft’s partnership with Inflection AI and the hiring of some of its former staff, determining that the deal does not warrant further investigation. The CMA initiated a probe in July to assess potential competition concerns, given that both companies are involved in developing consumer chatbots.
The regulator concluded that Inflection AI held only a small share of UK users for chatbots and AI tools before the acquisition and needed more capacity to expand its user base significantly. This limited influence alleviated concerns about the deal’s impact on competition.
Earlier this year, Microsoft hired Mustafa Suleyman, a co-founder of Google, to lead its new AI division, along with several employees from Inflection, which he founded in 2022. Reports suggest that Microsoft paid approximately $650 million in the deal, which granted them access to Inflection’s AI models and allowed the startup to repay its investors, including prominent figures like Bill Gates and former Google CEO Eric Schmidt.
Two US Consumer Products Safety Commission (CPSC) leaders are urging the agency to investigate e-commerce giants Shein and Temu after dangerous baby and toddler products were found on their websites. CPSC Commissioners Peter Feldman and Douglas Dziak have expressed concerns about how these foreign-owned platforms, based in Singapore and China, comply with US safety regulations, manage relationships with third-party sellers, and represent imported goods.
Shein and Temu, known for shipping low-cost products from China to the US, are particularly concerning due to their reliance on the ‘de minimis’ rule. This rule allows packages valued at $800 or less to bypass tariffs when sent directly to consumers, which is a loophole critics argue has contributed to their rapid success in the US market.
The scrutiny of Shein and Temu isn’t new; their low prices and product quality have been questioned before. Last year, a bipartisan group of US lawmakers proposed eliminating the de minimis rule, which is widely used by these platforms and third-party sellers on major sites like Amazon and Walmart.
The Telecom Regulatory Authority of India (TRAI) and Google have introduced new regulations to enhance user security and reduce spam. These changes are particularly significant for mobile users in India, focusing on improving the safety of online transactions and the quality of applications available for download. By implementing these measures, TRAI and Google are taking proactive steps to safeguard digital interactions, ensuring users can navigate their smartphones with greater confidence and security.
A key component of this initiative is TRAI’s new directive to combat spam calls and fraudulent messages. That regulation requires telecom operators to block unregistered numbers immediately, which is intended to protect users from scams. However, this measure may delay receiving one-time passwords (OTPs) during online transactions, as institutions like banks must register and allow their numbers to continue sending OTPs without interruption. While this could cause minor inconveniences, it is a crucial step toward preventing fraudulent activities and enhancing overall security for users.
In conjunction with TRAI’s efforts, Google has ramped up its policies to remove low-quality and potentially harmful apps from its Play Store. The following initiative aims to mitigate risks associated with malware and ensure that only trustworthy applications are accessible to users. By eliminating these problematic apps, Google creates a safer environment for users to download and use applications without compromising their personal information. The crackdown on low-quality apps is expected to significantly reduce the risk of malware, providing a more secure digital experience for all users.
The National Communications Authority (NCA) is conducting a public consultation on its draft Guidelines for the Management of Network Promotional Messages. These guidelines are designed to set industry standards for transmitting network promotional messages, ensuring they comply with legal, ethical, and transparent practices. The guidelines also aim to protect consumer rights by introducing clear opt-in and opt-out mechanisms, regulating the frequency and timing of messages, and standardizing sender identification for better consumer recognition.
The consultation, which began on 2 August 2024, is ongoing and will conclude on 19 September 2024. The NCA encourages all stakeholders, including Service Providers, Consumer Advocacy Groups, and the general public, to participate by reviewing the draft guidelines and providing feedback. The NCA has reaffirmed its commitment to transparency by announcing that all submissions will be treated as non-confidential and will be published on the NCA website as they are received.
Google has introduced a new AI-powered chat assistant to help YouTube creators recover hacked accounts. Currently, in testing, the tool is accessible to select users and aims to guide them through securing their accounts. The AI assistant will assist affected users by helping them regain control of their login details and reverse any changes made by hackers. Presently, the feature supports only the English language, but there are plans to expand its availability.
To use the new tool, users must visit the YouTube Help web page and log into their Google Account. They will then find the option to ‘Recover a hacked YouTube channel’ under the Help Centre menu. This new option opens a chat window with the AI assistant, who will guide them through securing their accounts.
Google’s latest innovation reflects its ongoing commitment to enhancing user security. Although the tool is in its early stages, efforts are being made to make it available to all YouTube creators.
As cyber threats evolve, Google’s AI assistant represents an important step forward in providing robust security solutions. The initiative shows the company’s dedication to protecting its users’ online presence.
Australia’s Federal Court has ruled that Bit Trade Pty, the operator of the Kraken cryptocurrency exchange in Australia, failed to meet design and distribution obligations for its margin trading product. The case, initiated by the Australian Securities and Investments Commission (ASIC) in September 2023, centred on Bit Trade’s failure to determine an appropriate target market before offering the product, despite prior warnings.
The court’s ruling highlights the legal requirement for financial products to be appropriately distributed to consumers. ASIC argued that the obligation to repay digital assets or national currency classified the margin trading product as a credit facility, which required stricter compliance. ASIC’s Deputy Chair, Sarah Court, emphasised the significance of this outcome as a reminder to the crypto industry about the importance of adhering to regulations.
Bit Trade, a subsidiary of US company Payward Incorporated, expressed disappointment with the decision but stated its readiness to comply with the court’s ruling. The company has seven days to negotiate declarations and injunctions with ASIC, which plans to pursue financial penalties against Bit Trade at a later date.
In addition to this case, Kraken’s parent company is also under scrutiny in the US, where the Securities and Exchange Commission filed a lawsuit in November 2023, accusing Kraken of operating as a securities exchange without proper registration.
A Washington, DC, appeals court has revived a lawsuit against Amazon, claiming that the company’s pricing policies stifle competition. The District of Columbia had initially filed the lawsuit in May 2021, accusing Amazon of restricting third-party sellers from offering lower prices on other platforms and maintaining agreements with wholesalers that discourage price reductions. The lawsuit alleges that these practices harm competition and lead to higher prices for consumers.
The DC Court of Appeals reversed a previous ruling that dismissed the case, stating that the claims made by the DC Attorney General were plausible and could proceed. The lawsuit is part of a broader legal challenge, as Amazon also faces similar accusations from the US Federal Trade Commission and several states.
Amazon has defended its policies, arguing that they benefit consumers by ensuring competitive pricing. However, DC Attorney General Brian Schwalb has welcomed the court’s decision, reaffirming his commitment to fighting what he describes as Amazon’s unfair practices that limit innovation and choice in online retail.
