The US Supreme Court has decided to allow a class-action lawsuit against Meta, Facebook’s parent company, to move forward. The case stems from the Cambridge Analytica scandal, where the political consulting firm accessed personal data from 87M Facebook users and used it for voter targeting in the 2016 US presidential election. Meta had sought to block the lawsuit, but the court dismissed its appeal.
Investors claim Meta failed to fully disclose the risks of data misuse, leading to two major drops in its stock price in 2018 when the extent of the privacy breach became public. Meta has already paid a $5.1B fine and a $725M settlement with users over related allegations.
The lawsuit is one of several legal challenges facing big tech firms. A separate case against Nvidia is under review, as investors allege the company misled them about its dependency on cryptocurrency mining.
A significant step in financial regulation will see major tech companies processing over 13 billion transactions annually subject to closer oversight. The US Consumer Financial Protection Bureau (CFPB) has finalised a rule bringing digital wallets and payment apps under the same scrutiny as banks. The move aims to enhance consumer privacy protections, combat fraud, and ensure fair account management.
The rule, targeting services like Apple Wallet, Google Pay, and Venmo, signals a shift in recognising digital payments as essential consumer tools. CFPB Director Rohit Chopra emphasised the need for oversight that reflects the growing reliance on these services. The measure, first proposed a year ago, has undergone substantial revisions to refine its scope and application.
Only companies processing over 50 million transactions annually will fall under the rule, a change from the initially proposed threshold of 5 million. Moreover, the regulation focuses solely on transactions in US dollars, excluding digital assets from its purview. Critics, including the Financial Technology Association, argue that the rule lacks a clear justification, though some in the banking industry support its introduction.
Set to take effect 30 days after its publication in the Federal Register, the rule has sparked debate over its future under a changing regulatory landscape. With the growing role of digital payments in daily life, the rule marks a pivotal moment for the industry and consumer protections alike.
Amazon is likely to face an EU investigation next year into allegations that it favours its own brand products on its online marketplace, according to sources familiar with the matter. If found in violation of the EU’s Digital Markets Act (DMA), Amazon could face a fine of up to 10% of its global revenue.
The potential investigation will be overseen by Teresa Ribera, the incoming EU antitrust chief, who will take office next month. Amazon has denied any wrongdoing, stating it complies with the DMA and treats all products equally in its ranking algorithms. The company has been in ongoing discussions with the European Commission about its practices.
The DMA, implemented last year, aims to curb the dominance of Big Tech by prohibiting preferential treatment of their products and services. Alongside Amazon, other tech giants such as Apple, Google, and Meta are also under scrutiny. Amazon shares fell 3% following reports of the possible investigation.
OpenAI is under scrutiny after engineers accidentally erased key evidence in an ongoing copyright lawsuit filed by The New York Times and Daily News. The publishers accuse OpenAI of using their copyrighted content to train its AI models without authorisation.
The issue arose when OpenAI provided virtual machines for the plaintiffs to search its training datasets for infringed material. On 14 November 2024, OpenAI engineers deleted the search data stored on one of these machines. While most of the data was recovered, the loss of folder structures and file names rendered the information unusable for tracing specific sources in the training process.
Plaintiffs are now forced to restart the time-intensive search, leading to concerns over OpenAI’s ability to manage its own datasets. Although the deletion is not suspected to be intentional, lawyers argue that OpenAI is best equipped to perform searches and verify its use of copyrighted material. OpenAI maintains that training AI on publicly available data falls under fair use, but it has also struck licensing deals with major publishers like the Associated Press and News Corp. The company has neither confirmed nor denied using specific copyrighted works for its AI training.
US prosecutors have urged a federal judge to impose sweeping changes on Google to dismantle its alleged monopoly on online search and advertising. Proposed remedies include forcing Google to sell its Chrome browser, share search data with competitors, and possibly divest its Android operating system. These measures could remain in place for up to a decade, overseen by a court-appointed technical committee.
The Department of Justice (DOJ) and state antitrust enforcers argued that Google’s dominance, with a 90% share of US searches, has stifled competition by controlling critical distribution channels. The DOJ aims to end deals where Google pays companies like Apple billions annually to make its search engine the default on their devices. Prosecutors also want restrictions on Google’s acquisitions in search, AI, and advertising technology, as well as provisions for websites to opt out of training Google’s AI systems.
Google has called the proposals extreme, warning they would harm consumers and the economy. Alphabet’s legal chief, Kent Walker, said the measures represent “unprecedented government overreach.” Google will present alternative proposals in December, while a trial to decide the remedies is scheduled for April.
If implemented, the proposals could reshape the tech landscape, lowering barriers for competitors like DuckDuckGo. The case highlights broader global efforts to curb the power of tech giants and promote fair competition.
Gary Wang, a former FTX executive, has avoided prison after cooperating extensively with prosecutors in the case against cryptocurrency exchange founder Sam Bankman-Fried. Judge Lewis Kaplan acknowledged Wang’s lesser role in the $8 billion fraud and commended his efforts to accept responsibility. Wang had pleaded guilty to fraud and conspiracy charges but argued he was initially unaware of the scale of the misconduct.
Wang, a former chief technology officer at FTX, admitted to altering the platform’s software under Bankman-Fried’s direction, granting Alameda Research special access to customer funds. Despite realising the fraud later, Wang continued maintaining the system but expressed regret in court, vowing to dedicate his life to making amends. Prosecutors highlighted his assistance in uncovering the fraud and his current work on tools to combat market manipulation.
The two met during a summer math camp in their youth and later studied at MIT before founding FTX. Wang was part of the close-knit group living with Bankman-Fried in a luxury Bahamian penthouse before the exchange’s collapse in 2022. The company’s failure exposed the misappropriation of customer funds, leading to Bankman-Fried’s 25-year prison sentence, which he is currently appealing.
Wang’s sentencing marks the conclusion of legal actions against Bankman-Fried’s inner circle. Others implicated included Nishad Singh, who also avoided jail, and Caroline Ellison, sentenced to two years. Prosecutors emphasised Wang’s unique skill set and role in aiding investigations, describing his cooperation as pivotal in holding the former FTX leadership accountable.
Privacy-focused search engine DuckDuckGo has urged the European Commission to launch three new investigations into Google’s compliance with the EU’s Digital Markets Act (DMA). DuckDuckGo argues that the rules, designed to curb Big Tech dominance, have not yet delivered meaningful change in the search market.
The Digital Markets Act, adopted in 2022, requires major tech firms to ensure users can switch services easily and prohibits practices that favour their own products. DuckDuckGo’s senior vice-president, Kamyl Bazbaz, claimed in a blog post that Google’s measures fall short of the law’s requirements, calling for formal probes to drive compliance.
Google is already under two DMA-related investigations concerning its app store rules and alleged discrimination against third-party services. A spokesperson for the company stated that Google is cooperating with the Commission and has made significant adjustments to its services. They emphasised consumer choice and data protection as key priorities while rejecting claims of non-compliance.
DuckDuckGo also accused Google of proposing to share anonymised search data with competitors that excludes the vast majority of search queries, rendering it ineffective. Additional allegations include failing to make switching search engines straightforward. Companies breaching the DMA could face fines up to 10% of their global annual revenue.
Paxos, a prominent blockchain infrastructure firm, has announced plans to acquire Finnish stablecoin issuer Membrane Finance, pending regulatory approval. The acquisition will grant Paxos a sought-after Finnish Electronic Money Institution licence, allowing the company to operate across 30 European countries under EU regulations.
Membrane Finance, known for its EUROe and eUSD stablecoins, launched its euro-pegged stablecoin in February 2023 but saw modest initial demand. Paxos, which already issues dollar-backed tokens like the Pax Dollar (USDP) and gold-backed cryptocurrency PAXG, had not yet ventured into the euro stablecoin market. This deal marks Paxos’ first step into offering euro-pegged digital assets.
The acquisition comes as the European stablecoin market faces tighter oversight under the Markets in Crypto-Assets (MiCA) Regulation, which took effect in July. Paxos sees this move as an opportunity to expand its reach and cater to growing stablecoin demand in Europe, further solidifying its global presence in the digital currency space.
EU antitrust regulators are expected to announce their decision on Nvidia’s proposed acquisition of Israeli AI startup Run by 20 December. The European Commission has flagged concerns that the $700 million deal, announced in April, could harm competition in the AI and chip sectors. Nvidia must gain regulatory approval before proceeding.
The watchdog will either approve the deal, with or without conditions, or open a four-month investigation if concerns persist. The scrutiny reflects broader fears about ‘killer acquisitions’, where large firms acquire startups to stifle innovation.
Nvidia‘s processors are crucial for AI applications, including tools like ChatGPT, making this acquisition significant for the tech and AI industries. The decision will have implications for competition in rapidly evolving AI markets.
The United States Department of Justice (DOJ) is reportedly pushing for Alphabet’s Google to divest its Chrome browser, escalating efforts to curb the company’s alleged monopolistic practices in digital markets. This follows a prior ruling that Google illegally dominated the search market. The DOJ also plans to address Google’s control over AI and the Android operating system.
Google, which commands two-thirds of the global browser market, denies the claims, arguing that its success stems from user preference and robust competition. It also criticises the DOJ’s proposals as extreme and potentially harmful to consumers. Prosecutors have suggested a range of remedies, including ending exclusive search agreements with companies like Apple or enforcing Chrome’s divestiture if market competition does not improve.
A trial to finalise the remedies is set for April, with a ruling expected by August 2025. Google intends to appeal any decision to divest Chrome, citing the browser’s integral role in its ad revenue and user experience.
