FTC names new technology chief as leadership shifts

Jake Denton, a former researcher at the Heritage Foundation, has been appointed as chief technology officer of the US Federal Trade Commission. He replaces Stephanie Nguyen, who had held the position since 2022. The role was first established during the Obama administration to provide insights on emerging technology challenges.

Denton steps into the role as Andrew Ferguson takes over as FTC chairman. Ferguson has voiced concerns about Big Tech’s dominance while cautioning against excessive regulation that could hinder US innovation. Denton has supported artificial intelligence legislation and has urged stronger US involvement in shaping global AI policies.

The Heritage Foundation’s Project 2025, linked to potential conservative policies under a future Trump administration, has outlined proposals for antitrust enforcement that align with right-leaning priorities. Some suggestions have even questioned the FTC’s necessity. Meanwhile, the agency is preparing for a trial against Meta in April and is pursuing an antitrust lawsuit against Amazon.

Ferguson’s stance on ongoing FTC investigations remains unclear, including probes into Microsoft’s partnership with OpenAI and potential consumer protection issues. Trump has praised Ferguson as a leader who supports innovation, making his regulatory approach to Big Tech a key focus in the coming months.

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Baidu’s Robin Li highlights ongoing need for cloud infrastructure investment

Baidu CEO Robin Li stated on Tuesday that investment in data centres and cloud infrastructure remains crucial despite the challenge posed by Chinese AI startup DeepSeek. Speaking at the World Government Summit in Dubai, Li emphasised that smarter AI models require increased computing power, or “compute,” to function effectively. His comments come as DeepSeek has gained attention for creating language models that perform similarly to OpenAI’s GPT while using much less computing power, prompting debate over the need for large-scale AI infrastructure.

Baidu, a key player in China’s AI development, was quick to launch its own AI products after the release of OpenAI’s ChatGPT in late 2022. However, its own language model, Ernie, has seen limited public adoption, despite claims that it rivals GPT-4 in capability. Li, who previously argued that no OpenAI-like company would emerge from China, admitted at the summit that innovation in AI is unpredictable, as shown by DeepSeek’s rapid rise.

In a shift from his earlier stance on AI development, Li acknowledged that open-source models could play a significant role in accelerating AI adoption. While he had previously advocated for closed-source approaches, he now recognises that allowing greater access could foster wider experimentation and faster technological spread. This marks a notable change in Baidu’s approach to the evolving AI landscape.

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French antitrust agency looks into Microsoft’s Bing deals

France‘s antitrust agency has launched an investigation into Microsoft over concerns that the company may be degrading search results for smaller rivals using Bing technology in their search-engine products. Microsoft has confirmed its full cooperation with the French regulator, the Autorité de la concurrence, but has not commented further. Although Microsoft does not dominate the general search market, it holds a significant share in the search-engine syndication sector.

The investigation, which was first reported by Bloomberg, could lead to formal charges and a potential fine for the US tech giant if the regulator determines that Microsoft’s actions are anti-competitive. The French competition authority has yet to provide any additional details about the probe. The case could have broader implications for the way major tech firms, including Microsoft, operate in the digital advertising and search-engine markets, potentially influencing how they collaborate with smaller companies.

If the investigation results in a fine or any form of penalty, it would further highlight the ongoing scrutiny of the practices of big tech companies in Europe. With regulators across the continent taking a closer look at the competitive dynamics of the tech sector, the outcome of this case could set a precedent for future antitrust actions within the industry.

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Microsoft offers price change to avoid EU antitrust fine

Microsoft has proposed increasing the price difference between its Office product with the Teams app and the version without it, to avoid a potential EU antitrust fine. This comes after complaints from rivals like Salesforce-owned Slack and German competitor alfaview regarding Microsoft’s practice of bundling Teams with Office. Since Teams became a part of Office 365 in 2017, it gained widespread use during the pandemic, largely due to its video conferencing capabilities.

To address concerns, Microsoft unbundled Teams from Office in 2023, offering Office without Teams for €2 less and a standalone Teams subscription for €5 per month. The European Commission is currently gathering feedback from companies, with a decision on whether to conduct a formal market test expected soon. As part of its offer, Microsoft has also proposed better interoperability terms to make it easier for competitors to challenge its products.

The EU has previously fined Microsoft €2.2 billion for similar antitrust issues in the past. If the Commission accepts Microsoft’s proposal without issuing a fine or finding wrongdoing, it would likely allow the EU to focus resources on ongoing investigations into other tech giants like Apple and Google.

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Motorola loses appeal over UK emergency services contract

Motorola has been denied permission to appeal against the UK competition regulator’s ruling that it was making excessive profits from its contract to provide communications for Britain’s emergency services. The Court of Appeal unanimously dismissed the company’s application, upholding the Competition and Markets Authority’s (CMA) decision to impose a price cap on Motorola’s Airwave network.

The CMA introduced the cap in July 2023, reducing the cost of the Airwave service to reflect a competitive market, cutting an estimated £200 million in annual charges. Motorola had previously challenged the regulator’s findings at a tribunal but was unsuccessful. CMA Executive Director George Lusty welcomed the court’s decision, stating it ensures fair pricing for emergency services and marks the end of the legal dispute.

A Motorola spokesperson defended the company’s role, emphasising that Airwave remains essential for UK public safety communications. Despite disagreeing with the CMA’s ruling, Motorola said it is focused on continuing to provide high-quality emergency communication services.

South Korea reviews trade response as Trump plans new tariffs

South Korea’s acting President Choi Sang-mok held discussions on Monday regarding the US plan to impose new 25 percent tariffs on steel and aluminium imports. The government meeting, attended by senior officials, also covered last week’s US-Japan summit and broader trade issues in the digital sector, according to the finance ministry.

Concerns have emerged over whether the US might seek to renegotiate the South Korea-US free trade agreement. Under the existing deal, agreed in 2007, South Korea avoided previous US steel tariffs by limiting exports to 70 percent of the average volume traded between 2015 and 2017. The finance ministry has yet to disclose any specific countermeasures.

During his first term in 2018, Donald Trump imposed a similar 25 percent tariff on all steel imports. The latest announcement signals a continuation of protectionist trade policies, with Trump also hinting at new reciprocal tariffs to address what he describes as unfair trade practices.

While the United States sources most of its steel from Canada, Brazil, and Mexico, South Korea remains a significant exporter. Seoul is now assessing its options as it prepares for potential economic and diplomatic challenges posed by Washington’s latest trade measures.

UK gambling websites breach data protection laws

Gambling companies are under investigation for covertly sharing visitors’ data with Facebook’s parent company, Meta, without proper consent, breaching data protection laws. A hidden tracking tool embedded in numerous UK gambling websites has been sending data, such as the web pages users visit and the buttons they click, to Meta, which then uses this information to profile individuals as gamblers. This data is then used to target users with gambling-related ads, violating the legal requirement for explicit consent before sharing such information.

Testing of 150 gambling websites revealed that 52 automatically transmitted user data to Meta, including large brands like Hollywoodbets, Sporting Index, and Bet442. This data sharing occurred without users having the opportunity to consent, resulting in targeted ads for gambling websites shortly after visiting these sites. Experts have raised concerns about the industry’s unlawful practices and called for immediate regulatory action.

The Information Commissioner’s Office (ICO) is reviewing the use of tracking tools like Meta Pixel and has warned that enforcement action could be taken, including significant fines. Some gambling companies have updated their websites to prevent automatic data sharing, while others have removed the tracking tool altogether in response to the findings. However, the Gambling Commission has yet to address the issue of third-party profiling used to recruit new customers.

The misuse of data in this way highlights the risks of unregulated marketing, particularly for vulnerable individuals. Data privacy experts have stressed that these practices not only breach privacy laws but could also exacerbate gambling problems by targeting individuals who may already be at risk.

Coinbase faces lawsuit over alleged unregistered securities sales

A United States federal judge has ruled that Coinbase must face a lawsuit from customers accusing the cryptocurrency exchange of illegally selling securities without registering as a broker-dealer. The judge rejected Coinbase’s argument that it did not qualify as a seller under federal securities law, citing claims that customers traded directly with the company rather than with third parties. Allegations under state laws in California, Florida, and New Jersey will also proceed.

The lawsuit, initially dismissed in 2023, was partially revived by an appeals court last year. Customers are seeking unspecified damages, while Coinbase maintains that it does not list or sell securities on its platform. The company remains confident it will prevail in court. Meanwhile, the U6S Securities and Exchange Commission (SEC) has also sued Coinbase, arguing that the exchange allowed trading of unregistered securities.

Coinbase has appealed a separate ruling that could clarify whether digital tokens qualify as investment contracts under US law. The company told the appeals court that a decision in its favour could remove regulatory uncertainty surrounding the cryptocurrency market. The outcome of these legal battles could have significant implications for the broader industry.

Scottish poet calls for AI-free literature

Scotland’s Makar, Peter Mackay, has voiced concerns about the growing role of artificial intelligence in literature, warning that it could threaten the livelihoods of new writers. With AI tools capable of generating dialogue, plot ideas, and entire narratives, Mackay fears that competing with machine-created content may become increasingly difficult for human authors.

To address these challenges, he has proposed clearer distinctions between human and AI-generated work. Ideas discussed include a certification system similar to the Harris Tweed Orb, ensuring books are marked as ‘100% AI-free.’ Another suggestion is an ingredient-style label outlining an AI-generated book’s influences, listing percentages of various literary styles.

Mackay also believes literary prizes, such as the Highland Book Prize, can play a role in safeguarding human creativity by celebrating originality and unique writing styles and qualities that AI struggles to replicate. He warns of the day an AI-generated book wins a major award, questioning what it would mean for writers who spend years perfecting their craft.

South Korea accuses DeepSeek of excessive data collection

South Korea’s National Intelligence Service (NIS) has raised concerns about the Chinese AI app DeepSeek, accusing it of excessively collecting personal data and using it for training purposes. The agency warned government bodies last week to take security measures, highlighting that unlike other AI services, DeepSeek collects sensitive data such as keyboard input patterns and transfers it to Chinese servers. Some South Korean government ministries have already blocked access to the app due to these security concerns.

The NIS also pointed out that DeepSeek grants advertisers unrestricted access to user data and stores South Korean users’ data in China, where it could be accessed by the Chinese government under local laws. The agency also noted discrepancies in the app’s responses to sensitive questions, such as the origin of kimchi, which DeepSeek claimed was Chinese when asked in Chinese, but Korean when asked in Korean.

DeepSeek has also been accused of censoring political topics, such as the 1989 Tiananmen Square crackdown, prompting the app to suggest changing the subject. In response to these concerns, China’s foreign ministry stated that the country values data privacy and security and complies with relevant laws, denying that it pressures companies to violate privacy. DeepSeek has not yet commented on the allegations.