Britain’s security officials have reportedly ordered Apple to create a so-called ‘back door’ to access all content uploaded to the cloud by its users worldwide. The demand, revealed by The Washington Post, could force Apple to compromise its security promises to customers. Sources suggest the company may opt to stop offering encrypted storage in the UK rather than comply with the order.
Apple has not yet responded to requests for comment outside of regular business hours. The Home Office has served Apple with a technical capability notice, which would require the company to grant access to the requested data. However, a spokesperson from the Home Office declined to confirm or deny the existence of such a notice.
In January, Britain initiated an investigation into the operating systems of Apple and Google, as well as their app stores and browsers. The ongoing regulatory scrutiny highlights growing tensions between tech giants and governments over privacy and security concerns.
Pinterest projected first-quarter revenue exceeding market expectations, driven by AI-powered advertising tools that enhanced ad spending. Shares surged 19% in extended trading following the announcement. The platform benefited from a strong holiday shopping season, setting new records for monthly active users and revenue in the fourth quarter.
AI-driven ad solutions, including the Performance+ suite, have attracted advertisers by automating and improving targeting. Increased engagement from Gen Z users and the introduction of more shoppable content have also made the platform more appealing to marketers. Expanding partnerships with Google and Amazon further diversified revenue streams, although most ad revenue remains concentrated in North America.
Ecommerce merchants using Shopify and Adobe Commerce can now integrate their products into Pinterest more easily. Analysts suggest that while global engagement is high, expanding third-party ad integrations will be crucial for long-term growth.
The company forecasts revenue between $837 million and $852 million, surpassing analyst expectations. Adjusted core earnings are expected to range from $155 million to $170 million, also exceeding estimates. Monthly active users reached a record 553 million, reflecting an 11% year-on-year increase.
The Trump administration’s move to end tariff-free low-cost imports into the US is expected to impact fast fashion retailer Shein more severely than online dollar-store competitor Temu. Both companies have heavily benefited from the ‘de minimis’ rule, which exempts shipments under $800 from import duties, with a significant portion of US daily packages coming from these retailers. While the Biden administration has scrutinised the rule, Temu has been quicker to adapt, diversifying its shipping strategy to minimise reliance on this exemption.
Temu, owned by PDD Holdings, has made considerable shifts in its model, including a move to bulk shipping to US warehouses instead of directly to consumers. By late 2023, about 50% of its US sales came from local warehouses. The company has also increased sea freight for bulkier items like furniture. This strategy contrasts with Shein’s continued dependence on air freight for its fast-fashion inventory, despite opening US centres and expanding its supply chain to countries like Brazil and Turkey.
While the Trump administration’s decision is set to raise prices for American consumers ordering from Shein and Temu, analysts believe the impact will not be catastrophic for these Chinese e-commerce giants. Shein, despite its reliance on fast inventory turnover and speed, is seen as capable of adapting, though the new tariffs and regulations will accelerate the need for supply chain diversification.
Recent changes in US Postal Service policies have added further uncertainty, reversing decisions on accepting parcels from China and Hong Kong. Analysts estimate that de minimis shipments could drop by up to 60%. However, experts remain confident that both Shein and Temu will navigate the changes, given the flexibility and competitiveness of their supply chains.
Luca Casarini, a prominent Italian migrant rescue activist, was warned by Meta that his phone had been targeted with spyware. The alert was received through WhatsApp, the same day Meta accused surveillance firm Paragon Solutions of using advanced hacking methods to steal user data. Paragon, reportedly American-owned, has not responded to the allegations.
Casarini, who co-founded the Mediterranea Saving Humans charity, has faced legal action in Italy over his rescue work. He has also been a target of anti-migrant media and previously had his communications intercepted in a case related to alleged illegal immigration. He remains unaware of who attempted to hack his device or whether the attack had judicial approval.
The revelation follows a similar warning issued to Italian journalist Francesco Cancellato, whose investigative news outlet, Fanpage, recently exposed far-right sympathies within Prime Minister Giorgia Meloni’s political youth wing. Italy’s interior ministry has yet to comment on the situation.
The European Central Bank (ECB) is keen to accelerate the creation of the digital euro, particularly following US President Donald Trump’s endorsement of stablecoins linked to the US dollar. ECB board member Piero Cipollone highlighted that Trump’s backing could push European lawmakers to fast-track the legislation for the digital euro. The ECB envisions the digital euro as a central bank-backed online wallet, offering an alternative to major US payment providers like Visa and PayPal.
Despite the European Commission’s proposal for digital euro legislation in June 2023, progress has been slow due to some scepticism in the political and banking sectors. Cipollone remains optimistic that recent developments, including the rise of US stablecoins, will prompt greater urgency from EU lawmakers. He expressed hope that the digital euro legislation could be finalised by summer, allowing for negotiations with the Commission to be wrapped up before November.
Cipollone also raised concerns over the growing use of US stablecoins in Europe, warning that it could lead to a shift of deposits from European banks to the US. He acknowledged bankers’ fears that a digital euro could have a similar effect. Still, he reassured that the ECB would likely limit the amount of digital euros users can hold to prevent destabilisation. Several countries, including Nigeria and China, have already launched central bank digital currencies, while many others, such as Russia and Brazil, are in the testing phase.
China’s antitrust regulator is reportedly preparing to investigate Apple’s App Store policies and fees, including its 30% commission on in-app purchases and restrictions on external payment services. The move follows recent measures targeting US businesses, including Google and fashion brand Calvin Klein, just as new US tariffs on Chinese goods emerged. Apple’s shares fell 2.6% in premarket trading following the news.
The investigation, led by the State Administration for Market Regulation, comes after ongoing discussions between Chinese regulators, Apple executives, and app developers over the past year. While neither Apple nor the Chinese antitrust regulator has commented on the matter, the move is seen as part of broader scrutiny of US companies operating in China.
In a separate development, Google was also accused of violating China’s anti-monopoly laws, with experts speculating the probe could be linked to Google’s Android operating system and its influence over Chinese mobile manufacturers. Additionally, China’s Commerce Ministry added PVH Corp, the owner of brands like Calvin Klein, to its “unreliable entity” list.
ByteDance, the company behind TikTok, has introduced OmniHuman-1, an advanced AI system capable of generating highly realistic deepfake videos from just a single image and an audio clip. Unlike previous deepfake technology, which often displayed telltale glitches, OmniHuman-1 produces remarkably smooth and lifelike footage. The AI can also manipulate body movements, allowing for extensive editing of existing videos.
Trained on 19,000 hours of video content from undisclosed sources, the system’s potential applications range from entertainment to more troubling uses, such as misinformation. The rise of deepfake content has already led to cases of political and financial deception worldwide, from election interference to multimillion-dollar fraud schemes. Experts warn that the technology’s increasing sophistication makes it harder to detect AI-generated fakes.
Despite calls for regulation, deepfake laws remain limited. While some governments have introduced measures to combat AI-generated disinformation, enforcement remains a challenge. With deepfake content spreading at an alarming rate, many fear that systems like OmniHuman-1 could further blur the line between reality and fabrication.
Alphabet is set to face investor scrutiny over its heavy spending on AI as it prepares to report earnings. Slower revenue growth in advertising and cloud services has raised concerns, especially as competition in AI intensifies. Chinese startup DeepSeek’s launch of low-cost AI models has fuelled worries about an industry price war. Alphabet’s capital expenditure, estimated at $50 billion for last year, is expected to rise further in 2025 to support AI-driven search features and cloud expansion.
Google Cloud’s growth is forecast to slow in the fourth quarter despite high expectations. Analysts suggest that while heavy investment continues, efficiency gains have helped maintain profits. The company’s search and advertising business remains strong, with an expected 11.2% increase in revenue, though this marks a slight slowdown from the previous quarter. Competition from Amazon and TikTok continues to challenge Alphabet’s dominance in search advertising.
Political advertising linked to the US presidential election may have boosted Google’s revenue, following a similar trend at Meta. However, Meta’s cautious outlook for the first quarter has raised concerns about broader ad market trends amid economic uncertainty. Alphabet’s shares have climbed 7% this year after a strong rally in 2023, largely driven by confidence in its AI strategy.
Investors will closely watch whether Alphabet faces the same cloud business challenges as Microsoft, whose Azure growth slowed due to a shift in AI priorities. Google Cloud revenue is expected to rise by 32% in the fourth quarter, slightly down from the 35% growth seen previously but still outpacing Microsoft and Amazon. Maintaining momentum in AI while balancing cloud growth remains a key challenge for Alphabet.
Google and Epic Games presented arguments before a US appeals court as Google attempted to overturn a jury verdict and a judge’s order requiring changes to its app store. Google’s lawyer argued that the trial judge made errors that unfairly benefited Epic, which had accused the company of monopolising access to apps on Android devices. A San Francisco jury previously ruled that Google had stifled competition.
The judge ordered Google to allow users to download rival app stores within its Play Store and to make its app catalogue available to competitors. Google’s appeal has put the ruling on hold, with its lawyer contending that the company faces strong competition from Apple’s App Store and was unfairly restricted from making that argument. Epic’s lawyer rejected Google’s claims, insisting that its dominance had harmed competition for years.
A judge on the appeals panel challenged Google’s position, highlighting key differences between Apple’s and Android’s business models. Google also argued that Epic’s case should not have gone before a jury, as it did not seek damages. Epic countered that the Play Store changes were necessary and disputed Google’s concerns about privacy and security.
The US Justice Department, Federal Trade Commission, and Microsoft have backed Epic in the case. A decision from the appeals court is expected later in the year, with the possibility of further escalation to the US Supreme Court.
Meta has introduced a new policy framework outlining when it may restrict the release of its AI systems due to security concerns. The Frontier AI Framework categorises AI models into ‘high-risk’ and ‘critical-risk’ groups, with the latter referring to those capable of aiding catastrophic cyber or biological attacks. If an AI system is classified as a critical risk, Meta will suspend its development until safety measures can be implemented.
The company’s evaluation process does not rely solely on empirical testing but also considers input from internal and external researchers. This approach reflects Meta’s belief that existing evaluation methods are not yet robust enough to provide definitive risk assessments. Despite its historically open approach to AI development, the company acknowledges that some models could pose unacceptable dangers if released.
By outlining this framework, Meta aims to demonstrate its commitment to responsible AI development while distinguishing its approach from other firms with fewer safeguards. The policy comes amid growing scrutiny of AI’s potential misuse, especially as open-source models gain wider adoption.
