Consumer protection

Apple faces EU crackdown over closed technology

The European Commission has ordered Apple to grant rival smartphone, headphone, and virtual reality companies access to its technology and mobile operating system.

The directive, part of the bloc’s Digital Markets Act, aims to curb the dominance of major tech firms and enhance competition. A separate mandate also requires Apple to establish a structured process for responding to interoperability requests from app developers.

Apple strongly criticised the decision, arguing that it places unfair constraints on its ability to innovate and benefits competitors without imposing the same restrictions on them.

Expressing concerns, the company warned that the new rules could negatively impact its products and European users, adding that the additional regulatory burden might slow progress.

The European Commission, however, dismissed Apple’s objections, stating that the order simply enforces existing laws and provides regulatory clarity.

Failure to comply could result in an investigation and potential fines of up to 10% of Apple’s global annual revenue. The ruling underscores the EU’s determination to rein in the power of Big Tech and ensure a more competitive digital market.

For more information on these topics, visit diplomacy.edu.

Amazon considers further appeal after losing GDPR case

Amazon has lost its appeal against a €746 million fine imposed by Luxembourg’s data protection regulator for breaching EU privacy laws.

The country’s administrative court upheld the penalty in a ruling on 18 March, siding with the National Commission for Data Protection (CNPD), which found Amazon had unlawfully processed personal data under the General Data Protection Regulation (GDPR).

The fine remains the largest issued under the EU privacy rules.

The CNPD also ordered Amazon to implement corrective measures, although enforcement will be suspended during the appeal period.

Amazon criticised the decision, arguing the fine was based on subjective legal interpretations without prior guidance from regulators. The company confirmed it is considering further legal action.

Europe has taken a strict stance on data privacy violations, with GDPR setting a global benchmark for consumer protections.

The ruling against Amazon reinforces the EU’s commitment to holding major tech companies accountable for their handling of personal data.

For more information on these topics, visit diplomacy.edu.

India’s banks encouraged to adopt AI for consumer protection

Indian banks should harness AI to improve internal controls and address customer complaints more effectively, according to central bank governor Sanjay Malhotra.

Malhotra highlighted concerns over rising complaints about mis-selling and aggressive banking practices, warning that the issue could escalate if left unchecked. In the 2023-2024 financial year, 95 commercial banks in India received over 10 million complaints from customers.

AI-powered solutions can help financial institutions analyse large data sets to detect issues such as ATM failures and erroneous charges before they become widespread.

Malhotra also pointed to the potential of AI-driven chatbots and voice recognition tools to assist customers in multiple languages, making banking services more accessible in India’s linguistically diverse market.

Alongside AI adoption, Malhotra urged banks to invest in human capital to enhance customer service and grievance redressal processes.

Strengthening both technology and human resources will be crucial in ensuring financial institutions can meet the needs of a rapidly growing customer base while maintaining trust and transparency.

For more information on these topics, visit diplomacy.edu.

Shareholders’ lawsuit against Amazon rejected with prejudice

A US judge has dismissed a lawsuit accusing Amazon of misleading shareholders about its treatment of third-party sellers and its expansion plans, which ultimately led to an antitrust case by the Federal Trade Commission (FTC).

The ruling by Judge John Chun in Seattle was made with prejudice, meaning the lawsuit cannot be refiled. Lawyers representing the shareholders did not immediately comment on the decision.

Investors had alleged that Amazon hid an algorithm that ensured its own products were priced lower than competitors’ and failed to disclose the risks of overexpanding its fulfilment network.

However, Judge Chun found no compelling evidence that Amazon executives, including former CEO Jeff Bezos and current CEO Andy Jassy, intentionally misled investors.

The court ruled that Amazon’s actions were more likely driven by profit-focused business strategies rather than fraud.

The FTC filed an antitrust case against Amazon in September 2023, accusing the company of using its market power to suppress competition and inflate prices.

Eighteen US states and Puerto Rico have joined the lawsuit, with a nonjury trial set for October 2026. The shareholder lawsuit covered Amazon stockholders from February 2019 to April 2022.

For more information on these topics, visit diplomacy.edu.

Meta cracks down on misinformation in Australia

Meta Platforms has announced new measures to combat misinformation and deepfakes in Australia ahead of the country’s upcoming national election.

The company’s independent fact-checking program, supported by Agence France-Presse and the Australian Associated Press, will detect and limit misleading content, while also removing any material that could incite violence or interfere with voting.

Deepfakes, AI-generated media designed to appear real, will also face stricter scrutiny. Meta stated that any content violating its policies would be removed or labelled as ‘altered’ to reduce its visibility.

Users sharing AI-generated content will be encouraged to disclose its origin, aiming to improve transparency.

Meta’s Australian policy follows similar strategies used in elections across India, the UK and the US.

The company is also navigating regulatory challenges in the country, including a proposed levy on big tech firms profiting from local news content and new requirements to enforce a ban on users under 16 by the end of the year.

For more information on these topics, visit diplomacy.edu.

Apple loses appeal against German regulators

Apple has lost its appeal against a regulatory decision that could impose stricter controls on the company in Germany.

The Federal Court of Justice upheld a 2023 ruling by the country’s competition authority, which classified Apple as a company of ‘paramount cross-market significance for competition,’ placing it under closer scrutiny.

A decision like this means Apple will face potential regulatory measures similar to those imposed on tech giants such as Google’s parent company, Alphabet, and Facebook’s owner, Meta.

The ruling follows a judge’s earlier indication in January that the court would side with the regulator. Apple had attempted to involve the European Court of Justice in Luxembourg, but the request was denied.

In Europe, Apple’s App Store has come under increasing scrutiny, with regulators expressing concerns over how the company collects and utilises vast amounts of user data. This latest setback adds to Apple’s ongoing legal and regulatory challenges in the region.

For more information on these topics, visit diplomacy.edu.

London court holds secret hearing on Apple’s cloud encryption dispute

A London court has reportedly heard Apple’s appeal against a British government order requiring it to provide access to encrypted cloud storage.

The hearing, held at the Investigatory Powers Tribunal on Friday, took place behind closed doors, with no media or civil rights groups allowed to attend.

The case stems from a ‘technical capability notice’ issued to Apple, which allegedly compelled the company to create a backdoor into its encrypted services. In response, Apple removed its Advanced Data Protection feature for new users in Britain.

Neither Apple nor the UK government has confirmed the existence of the order, but reports suggest it has raised concerns among privacy advocates and foreign governments.

Civil rights groups, including Privacy International and Liberty, have condemned the secrecy of the proceedings, calling the order ‘unacceptable and disproportionate.’

Critics argue that allowing governments to bypass encryption undermines privacy and security for users worldwide. The issue has drawn international attention, with United States officials investigating whether Britain’s actions violated the CLOUD Act, which restricts demands for US citizens’ data.

Government officials have remained tight-lipped, with the Home Office refusing to comment and security ministers maintaining a policy of neither confirming nor denying such notices.

While authorities argue that encryption access is essential for tackling serious crimes, opponents warn that weakening security protections could have far-reaching consequences. The case highlights ongoing tensions between governments and tech companies over privacy, security, and law enforcement.

For more information on these topics, visit diplomacy.edu.

Pavel Durov granted temporary leave from France in legal case

French authorities have granted Pavel Durov, the Russian-born founder and CEO of Telegram, temporary permission to leave France.

Durov was placed under formal investigation last August over alleged criminal activities on the messaging platform and had been barred from leaving the country. He departed for Dubai on Saturday after an investigating judge approved his temporary absence.

The legal probe has heightened tensions between France and Russia, particularly against the backdrop of the war in Ukraine.

Prosecutors suspect Durov of complicity in allowing illegal activities such as drug trafficking and money laundering on Telegram. As part of his legal obligations, he was required to post bail of 5 million euros ($5.4 million).

Being under formal investigation in France does not imply guilt but indicates that judges believe there is sufficient evidence to continue the case. The Paris prosecutor’s office has not commented on the latest developments.

For more information on these topics, visit diplomacy.edu.

UK watchdog launches enforcement on file-sharing services

The UK’s internet watchdog, Ofcom, has launched a new enforcement programme under the Online Safety Act (OSA), targeting storage and file-sharing services due to concerns over the sharing of child sexual abuse material (CSAM).

The regulator has identified these services as particularly vulnerable to misuse for distributing CSAM and will assess the safety measures in place to prevent such activities.

As part of the enforcement programme, Ofcom has contacted a number of file-storage and sharing services, warning them that formal information requests will be issued soon.

These requests will require the services to submit details on the measures they have implemented or plan to introduce to combat CSAM, along with risk assessments related to illegal content.

Failure to comply with the requirements of the OSA could result in substantial penalties for these companies, with fines reaching up to 10% of their global annual turnover.

Ofcom’s crackdown highlights the growing responsibility for online services to prevent illegal content from being shared on their platforms.

For more information on these topics, visit diplomacy.edu.

Infosys resolves cybersecurity lawsuits in the US

Indian IT services giant Infosys has settled lawsuits filed against its US subsidiary, Infosys McCamish Systems, for $17.5 million. The lawsuits stem from a cyber incident that occurred in November 2023, which resulted in the compromise of personal data. The company has agreed to pay the settlement into a fund that will resolve all claims related to the breach.

The breach, which involved unauthorised access and data exfiltration, affected up to 6.5 million individuals. Following the incident, Infosys McCamish in the US, in coordination with a third-party vendor, took steps to address the issue and limit the damage caused by the cyberattack.

This settlement marks a significant step for Infosys in resolving the ongoing legal issues stemming from the 2023 incident. The Indian company has worked to resolve the situation while continuing to bolster its cybersecurity measures to prevent future breaches.

For more information on these topics, visit diplomacy.edu.