Consumer protection

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.

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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.

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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.

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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.

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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.

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UK teachers embrace AI for future education

Teachers in Stoke-on-Trent gathered for a full-day event to discuss the role of AI in education. Organised by the Good Future Foundation, the session saw more than 40 educators, including Stoke-on-Trent South MP Allison Gardner, explore how AI can enhance teaching and learning. Gardner emphasised the government’s belief that AI represents a ‘generational opportunity’ for education in the UK.

The event highlighted both the promise and the challenges of integrating AI into UK schools. Attendees shared ideas on using AI to improve communication, particularly with families who speak English as an additional language, and to streamline access to school resources through automated chatbots. While the potential benefits are clear, many teachers expressed concerns about the risks associated with new technology.

Daniel Emmerson, executive director of the Good Future Foundation, stressed the importance of supporting educators in understanding and implementing AI. He explained that AI can help prepare students for a future dominated by this technology. Meanwhile, schools like Belgrave St Bartholomew’s Academy are already leading the way in using AI to improve lessons and prepare students for the opportunities AI will bring.

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Google enhances Gemini AI with smarter personalisation

Google has announced an update to its Gemini AI assistant, enhancing personalisation to better anticipate user needs and deliver responses that feel more like those of a personal assistant.

The feature, initially available on desktop before rolling out to mobile, allows Gemini to offer tailored recommendations, such as travel ideas, based on search history and, in the future, data from apps like Photos and YouTube.

Users can opt in to the new personalisation features, sharing details like dietary preferences or past conversations to refine responses further.

Google assures that users must explicitly grant permission for Gemini to access search history and other services, and they can disconnect at any time.

However, this level of contextual awareness could give Google an advantage over competitors like ChatGPT by leveraging its vast ecosystem of user data.

The update signals a shift in how users interact with AI, bringing it closer to traditional search while raising questions for publishers and SEO professionals.

As Gemini increasingly provides direct, personalised answers, it may reduce the need for users to visit external websites. While currently experimental, the potential for Google to push broader adoption of AI-driven personalisation could reshape digital content discovery and search behaviour in the future.

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Indian police arrest Garantex administrator wanted by US

Indian authorities have arrested Aleksej Besciokov, an administrator of the Russian cryptocurrency exchange Garantex, at the request of the US.

Besciokov, a Russian resident and Lithuanian national, was taken into custody in Kerala on charges of money laundering and violating sanctions. The Central Bureau of Investigation (CBI) said he was planning to flee India, and Washington is expected to seek his extradition.

The arrest follows a joint operation by the US, Germany, and Finland to dismantle Garantex’s online infrastructure.

The exchange, under US sanctions since 2022, has processed at least $96 billion in cryptocurrency transactions since 2019. The US Justice Department recently charged two administrators, including Besciokov, with operating an unlicensed money-transmitting business.

Experts warn that sanctioned exchanges often attempt to bypass restrictions by setting up new entities. Blockchain research firm TRM Labs called the Garantex takedown a significant step in combating illicit finance but emphasised the need for continued vigilance against evasion tactics.

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FTC confirms no delay in Amazon trial

The US Federal Trade Commission (FTC) announced on Wednesday that it does not need to delay its September trial against Amazon, contradicting an earlier claim by one of its attorneys about resource shortages.

Jonathan Cohen, an FTC lawyer, retracted his statement that cost-cutting measures had strained the agency’s ability to proceed, assuring the court that the FTC is fully prepared to litigate the case.

FTC Chairman Andrew Ferguson reaffirmed the agency’s commitment, dismissing concerns over budget constraints and stating that the FTC will not back down from taking on Big Tech.

Earlier in the day, Cohen had described a ‘dire resource situation,’ citing employee resignations, a hiring freeze, and restrictions on legal expenses. However, he later clarified that these challenges would not impact the case.

The lawsuit, filed in 2023, accuses Amazon of using ‘dark patterns’ to mislead consumers into enrolling in automatically renewing Prime subscriptions, a program with over 200 million users.

With claims exceeding $1 billion, the trial is expected to be a high-profile battle between regulators and one of the world’s largest tech companies. Amazon has denied any wrongdoing, and three of its senior executives are also named in the case.

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Spain approves bill to regulate AI-generated content

Spain’s government has approved a bill imposing heavy fines on companies that fail to label AI-generated content, aiming to combat the spread of deepfakes.

The legislation, which aligns with the European Union’s AI Act, classifies non-compliance as a serious offence, with penalties reaching up to €35 million or 7% of a company’s global revenue.

Digital Transformation Minister Oscar Lopez stressed that AI can be a force for good but also a tool for misinformation and threats to democracy.

The bill also bans manipulative AI techniques, such as subliminal messaging targeting vulnerable groups, and restricts the use of AI-driven biometric profiling, except in cases of national security.

Spain is one of the first EU nations to implement these strict AI regulations, going beyond the looser US approach, which relies on voluntary compliance.

A newly established AI supervisory agency, AESIA, will oversee enforcement, alongside sector-specific regulators handling privacy, financial markets, and law enforcement concerns.

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