Consumer protection

Brazil slaps X with $1.42 million fine for noncompliance

Brazil‘s Supreme Court Justice Alexandre de Moraes has fined social media platform X, owned by Elon Musk, 8.1 million reais ($1.42 million) for failing to comply with judicial orders. The ruling, made public on Thursday, follows a legal case from 2023 where the court had instructed X to remove a profile spreading misinformation and provide the user’s registration data.

X’s failure to meet these demands resulted in a daily fine of 100,000 reais, and the company’s local legal representative faced potential criminal liability. The court order required the immediate payment of the fine, citing the platform’s noncompliance. X’s legal team in Brazil has not commented on the matter.

In 2024, X faced a month-long suspension in Brazil for not adhering to court orders related to hate speech moderation and for failing to designate a legal representative in the country, as mandated by law.

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Nigeria demands $81.5 billion from Binance over taxes and currency impact

Nigeria has filed a lawsuit against cryptocurrency giant Binance, demanding $79.5 billion in damages for alleged economic losses and $2 billion in unpaid taxes. The case, brought by Nigeria’s Federal Inland Revenue Service (FIRS), claims that Binance’s unregistered operations in the country have negatively impacted its currency and evaded significant tax obligations.

The lawsuit also seeks penalties and interest on the unpaid taxes, pushing the total amount even higher.

Authorities allege that Binance played a role in destabilising Nigeria‘s naira by becoming a primary platform for local currency trading. In 2024, two Binance executives were detained as part of a broader crackdown on cryptocurrency platforms.

The FIRS argues that Binance holds a “significant economic presence” in Nigeria, making it liable for corporate income tax for 2022 and 2023, plus a 10% penalty and a 26.75% interest rate on unpaid sums.

Binance, which has stopped trading in the naira and is contesting the charges, is also facing four counts of tax evasion, including non-payment of value-added tax and aiding users in tax avoidance. Separate money laundering charges have been filed by Nigeria’s anti-corruption agency, which Binance has denied.

The exchange previously stated that it is working with Nigerian authorities to address potential historic tax issues.

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AI adoption surges as OpenAI passes 400 million users

OpenAI’s weekly active users exceeded 400 million in February, marking significant growth in AI adoption. The company had 300 million weekly users in December, and its paid business subscribers have more than doubled since September, surpassing 2 million.

Competition in the AI space remains intense, with China’s DeepSeek claiming its new model can rival or outperform Western alternatives at a lower cost.

Surging demand has led to service outages for the startup, while questions persist about its access to Nvidia’s H800 chips despite US export restrictions.

OpenAI also reported a sharp increase in developer traffic for its AI models, with usage of its latest o3 model rising fivefold since its January launch.

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Apple rejects UK plans for mobile browser controls

Apple has pushed back against proposed remedies from the UK’s competition watchdog, arguing they could hinder innovation in the mobile browser market. The Competition and Markets Authority (CMA) is investigating Apple and Google’s dominance in browser engines and cloud gaming distribution through app stores, with potential regulatory measures under consideration.

In its response, Apple stated that mandating free access to future WebKit updates or iOS features used by Safari would be unfair, given the significant resources required to develop them. The company warned this could lead to ‘free-riding’ by third parties and discourage further investment in browser technologies.

The UK CMA’s investigation aims to increase competition in the mobile browser space, where Apple’s WebKit engine is a key player. However, Apple insists that the proposed changes would harm its ability to innovate and could ultimately reduce the quality of browser experiences for users. The regulator is expected to continue assessing industry feedback before making a final decision.

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Australian kids overlook social media age checks

A recent report by Australia’s eSafety regulator reveals that children in the country are finding it easy to bypass age restrictions on social media platforms. The findings come ahead of a government ban, set to take effect at the end of 2025, that will prevent children under the age of 16 from using these platforms. The report highlights data from a national survey on social media use among 8 to 15-year-olds and feedback from eight major services, including YouTube, Facebook, and TikTok.

The report shows that 80% of Australian children aged 8 to 12 were using social media in 2024, with YouTube, TikTok, Instagram, and Snapchat being the most popular platforms. While most platforms, except Reddit, require users to enter their date of birth during sign-up, the report indicates that these systems rely on self-declaration, which can be easily manipulated. Despite these weaknesses, 95% of teens under 16 were found to be active on at least one of the platforms surveyed.

While some platforms, such as TikTok, Twitch, and YouTube, have introduced tools to proactively detect underage users, others have not fully implemented age verification technologies. YouTube remains exempt from the upcoming ban, allowing children under 13 to use the platform with parental supervision. However, eSafety Commissioner Julie Inman Grant stressed that there is still significant work needed to enforce the government’s minimum age legislation effectively.

The report also noted that most of the services surveyed had conducted research to improve their age verification processes. However, as the law approaches, there are increasing calls for app stores to take greater responsibility for enforcing age restrictions.

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Stricter rules for WhatsApp after EU designation

WhatsApp has officially met the threshold set by the EU’s Digital Services Act (DSA), marking its designation as a Very Large Online Platform.

The messaging app, owned by Meta Platforms, reported an average of 46.8 million monthly users in the EU during the latter half of 2024, surpassing the 45-million-user threshold established by the DSA.

The new classification requires WhatsApp to strengthen efforts in tackling illegal and harmful online content.

The platform must assess system risks related to public security, fundamental rights, and protecting minors within four months to comply with the DSA. Violations could result in fines reaching up to 6% of global annual revenue.

Meta’s Instagram and Facebook are already subject to the same rules. While complying with the stricter regulations, Meta leadership, including Mark Zuckerberg, has expressed concerns about the growing impact of EU tech laws.

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Multi-million crypto Ponzi scheme exposed by Norwegian investigators

Norwegian prosecutors have charged four individuals for their role in a massive fraud and money laundering operation that deceived thousands of victims worldwide. Authorities say the scheme collected over 900 million kroner ($86–87 million), with more than 700 million kroner laundered through a Norwegian law firm before being transferred to accounts in Asia.

The scam operated as a multi-level marketing structure, with victims recruited to buy “product packages” containing cryptocurrency and company shares. Investors were promised profits from gas fields, mining, and real estate, but investigators say no real investments were made. Instead, new deposits funded payouts to earlier investors, fitting the classic Ponzi scheme model.

Officials revealed that financial professionals, including lawyers and accountants, helped to conceal the money flow, making the fraud harder to detect. Europol has warned that financial crimes like these are a growing global threat, with fraud and money laundering acting as the driving force behind organised crime.

Despite the cross-border nature of the operation, Norwegian authorities stress that those responsible will be prosecuted, no matter where their victims are located. The case highlights the increasing use of professional services to facilitate fraud, a challenge that law enforcement agencies worldwide are struggling to tackle.

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Young people rely on social media for political news

A growing number of young Europeans are turning to social media platforms like TikTok, Instagram, and YouTube as their primary news source, surpassing traditional outlets such as TV and print media. According to the latest European Parliament Youth Survey, 42% of people aged 16 to 30 rely on social media for news about politics and social issues. This shift highlights changing preferences toward fast-paced, accessible content but also raises concerns about the growing risk of disinformation among younger generations.

Younger users, especially those aged 16 to 18, are more likely to trust platforms like TikTok and Instagram, while those aged 25 to 30 tend to rely more on Facebook, online press, and radio for their news. However, the rise of social media as a news source has also led to increased exposure to fake news. A report from the Reuters Institute revealed that 27% of TikTok users struggle to identify misleading content, while Instagram has faced criticism for relaxing its fact-checking systems.

Despite being aware of the risks, young Europeans continue to engage with social media for news. A significant 76% of respondents reported encountering fake news in the past week, yet platforms like Instagram remain the most popular news sources. This trend is impacting trust in political institutions, with many young people expressing scepticism toward the EU and skipping elections due to a lack of information.

The reliance on social media for news has shifted political discourse, as fake news and AI-generated content have been used to manipulate public opinion. The constant exposure to sensationalised false information is also having psychological effects, increasing anxiety and confusion among young people and pushing some to avoid news altogether.

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Nigeria’s new proposal to tax crypto transactions

Nigeria is set to amend its digital asset regulations to introduce taxes on cryptocurrency transactions, a move the government believes could generate significant revenue. A bill currently before the National Assembly aims to provide a legal framework for taxing transactions on regulated exchanges, with expectations for its adoption this quarter.

The Nigerian Securities and Exchange Commission (SEC) is also working on expanding crypto licensing, allowing exchanges to be monitored for tax compliance. The SEC issued its first exchange licence in August 2024 and has since taken steps to regulate unlicensed platforms.

With Nigeria ranked second in global crypto adoption, many citizens have embraced cryptocurrencies, especially stablecoins like Tether and USD Coin, to protect their wealth against the country’s high inflation and depreciating currency. In the last year, Nigeria received $21.8 billion in stablecoin transactions, leading the Sub-Saharan region.

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Google settles tax dispute in Italy for 326 million euros

Milan prosecutors have announced plans to drop a case against Google’s European division after the company agreed to settle a tax dispute by paying 326 million euros (£277 million). The settlement covers the period from 2015 to 2019, including penalties, sanctions, and interest.

The tax dispute stemmed from allegations that Google had failed to file and pay taxes on revenue generated in Italy, based on the digital infrastructure it operates within the country. This comes after the company settled a previous tax case with Italian authorities in 2017 by paying 306 million euros, which acknowledged Google’s permanent presence in Italy.

In 2023, Italy had requested that Google pay 1 billion euros in unpaid taxes and penalties. However, with this latest settlement, the case against the tech giant appears to be resolved for now.

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