Consumer protection

Meta, X, Google join EU code to combat hate speech

Major tech companies, including Meta’s Facebook, Elon Musk’s X, YouTube, and TikTok, have committed to tackling online hate speech through a revised code of conduct now linked to the European Union’s Digital Services Act (DSA). Announced Monday by the European Commission, the updated agreement also includes platforms like LinkedIn, Instagram, Snapchat, and Twitch, expanding the coalition originally formed in 2016. The move reinforces the EU’s stance against illegal hate speech, both online and offline, according to EU tech commissioner Henna Virkkunen.

Under the revised code, platforms must allow not-for-profit organisations or public entities to monitor how they handle hate speech reports and ensure at least 66% of flagged cases are reviewed within 24 hours. Companies have also pledged to use automated tools to detect and reduce hateful content while disclosing how recommendation algorithms influence the spread of such material.

Additionally, participating platforms will provide detailed, country-specific data on hate speech incidents categorised by factors like race, religion, gender identity, and sexual orientation. Compliance with these measures will play a critical role in regulators’ enforcement of the DSA, a cornerstone of the EU’s strategy to combat illegal and harmful content online.

EU files WTO complaint against China’s patent practices

The European Commission has filed a complaint with the World Trade Organization (WTO) against China, accusing the country of ‘unfair and illegal’ practices regarding worldwide royalty rates for European standard essential patents (SEPs). According to the Commission, China has empowered its courts to set global royalty rates for the EU companies, particularly in the telecoms sector, without the consent of the patent holders.

The case focuses on SEPs, which are crucial for technologies like 5G, used in mobile phones. European companies such as Nokia and Ericsson hold many of these patents. The Commission claims that China’s actions force European companies to reduce their royalty rates globally, providing Chinese manufacturers with unfairly low access to European technologies.

The European Union has requested consultations with China, marking the first step in WTO dispute resolution. If a resolution is not reached within 60 days, the EU can request the formation of an adjudicating panel, which typically takes about a year to issue a final report. This case is linked to a previous EU dispute at the WTO concerning China’s anti-suit injunctions, which restrict telecom patent holders’ ability to enforce intellectual property rights in courts outside China.

Russian hackers target global officials with WhatsApp phishing campaign

Russian state-linked hackers, operating under the unit Star Blizzard, have launched a new phishing campaign targeting the WhatsApp accounts of government ministers and officials worldwide. According to Britain’s National Cyber Security Centre (NCSC), Star Blizzard, linked to Russia’s FSB spy agency, aims to undermine political trust in the UK and other similar nations.

Victims receive an email impersonating a US government official, inviting them to join a WhatsApp group. The email contains a QR code that, when scanned, links the victim’s WhatsApp account to an attacker-controlled device or WhatsApp Web, granting the hacker access to sensitive messages. Microsoft confirmed that this tactic allows hackers to exfiltrate data but did not specify whether data was successfully stolen.

The campaign has targeted individuals involved in diplomacy, defence, and Ukraine-related initiatives. This marks the latest attempt by Star Blizzard, which had previously targeted British MPs, universities, and journalists. Microsoft noted that while the campaign seemed to have wound down by November, the use of QR codes in phishing attacks, or ‘quishing,’ shows the hackers’ continued efforts to gain access to sensitive information.

WhatsApp, owned by Meta, emphasised that users should avoid scanning suspicious QR codes and should only link their accounts through official services. Experts also recommend verifying suspicious emails by contacting the sender directly through a known, trusted email address.

FTC warns of risks in big tech AI partnerships

The Federal Trade Commission (FTC) has raised concerns about the competitive risks posed by collaborations between major technology companies and developers of generative AI tools. In a staff report issued Friday, the agency pointed to partnerships such as Microsoft’s investment in OpenAI and similar alliances involving Amazon, Google, and Anthropic as potentially harmful to market competition, according to TechCrunch.

FTC Chair Lina Khan warned that these collaborations could create barriers for smaller startups, limit access to crucial AI tools, and expose sensitive information. ‘These partnerships by big tech firms can create lock-in, deprive start-ups of key AI inputs, and reveal sensitive information that undermines fair competition,’ Khan stated.

The report specifically highlights the role of cloud service providers like Microsoft, Amazon, and Google, which provide essential resources such as computing power and technical expertise to AI developers. These arrangements could restrict smaller firms’ access to these critical resources, raise business switching costs, and allow cloud providers to gain unique insights into sensitive data, potentially stifling competition.

Microsoft defended its partnership with OpenAI, emphasising its benefits to the industry. ‘This collaboration has enabled one of the most successful AI startups in the world and spurred unprecedented technology investment and innovation,’ said Rima Alaily, Microsoft’s deputy general counsel. The FTC report underscores the need to address the broader implications of big tech’s growing dominance in generative AI.

US regulator escalates complaint against Snap

The United States Federal Trade Commission (FTC) has referred a complaint about Snap Inc’s AI-powered chatbot, My AI, to the Department of Justice (DOJ) for further investigation. The FTC alleges the chatbot caused harm to young users, though specific details about the alleged harm remain undisclosed.

Snap Inc defended its chatbot, asserting that My AI operates under rigorous safety and privacy measures and criticised the FTC for lacking concrete evidence to support its claims. Despite the company’s reassurances, the FTC stated it had uncovered indications of potential legal violations.

The announcement impacted Snap’s stock performance, with shares dropping by 5.2% to close at $11.22 on Thursday. The US FTC noted that publicising the complaint’s transfer to the DOJ was in the public interest, underscoring the gravity of the allegations.

China denies forcing firms to share user data

The Chinese government “has never and will never” require companies or individuals to collect or transfer data in ways that violate the law, China’s foreign ministry declared on Friday. The statement was issued in response to a privacy complaint filed by Austrian advocacy group Noyb, which accuses six Chinese companies, including TikTok, Shein, and Xiaomi, of unlawfully sending European Union user data to China.

Noyb, an organisation focused on data protection and privacy rights, alleges that the companies breached the EU’s General Data Protection Regulation (GDPR) by transferring user data without proper safeguards. The complaint has sparked concerns in Europe about how personal information is handled by Chinese firms operating within the EU. If proven, the violations could result in significant fines and further scrutiny of these companies.

In defending the nation’s stance, a foreign ministry spokesperson emphasised that China operates within the bounds of international laws and rejects any claims of illegal data practices. “China strictly upholds its legal and regulatory framework and will never engage in or endorse actions that violate laws regarding data collection or transfer,” the spokesperson said. The spokesperson also criticised what they described as “unfounded accusations” aimed at tarnishing Chinese businesses.

This case is the latest in a series of global concerns about data privacy and the practices of technology firms. It underscores the growing tension between nations over data security, cross-border data flows, and regulatory compliance, particularly as Chinese companies expand their presence in foreign markets. The outcome of Noyb’s complaint could have far-reaching implications for data governance and corporate practices in both Europe and China.

Chinese tech company Zhipu questions US trade ban

Beijing-based AI company Zhipu Huazhang Technology has opposed the US government’s plan to add it to the export control entity list. The company argues the decision lacks a factual basis.

Zhipu issued a statement on its official WeChat account expressing strong opposition to the move. The firm criticised the US commerce department’s intentions, insisting the decision was unjustified.

Zhipu and its subsidiaries face restrictions on accessing US technologies if added to the list. The company maintains it operates lawfully and transparently in its business practices.

The US has been increasing scrutiny on Chinese technology firms, citing national security concerns. Zhipu emphasised its commitment to responsible technology development and cooperation with global partners.

Noyb challenges Chinese data practices in Europe

Austrian advocacy group Noyb has filed privacy complaints against six Chinese companies, including TikTok, Shein, and Xiaomi, alleging illegal transfers of European user data to China. The group, known for targeting US tech giants like Apple and Meta, said this is its first case against Chinese firms. Complaints have been filed in four EU countries, seeking fines of up to 4% of each company’s global revenue.

Noyb claims that companies such as Alibaba’s AliExpress and Tencent’s WeChat transfer EU citizens’ data either directly to China or undisclosed ‘third countries,’ which are likely China. Under EU data protection laws, such transfers are prohibited if the destination country fails to meet the bloc’s strict privacy standards. A Noyb lawyer emphasised that China’s status as a ‘surveillance state’ makes such transfers clearly unlawful.

The allegations add to mounting regulatory challenges for Chinese tech firms. TikTok, already under scrutiny in Europe for election interference concerns, faces a potential US ban starting Sunday over national security fears. Regulators in multiple regions continue to ramp up pressure on Chinese companies amid growing global concerns over data privacy and security.

TikTok prepares for possible US shutdown

TikTok is preparing to shut down its US operations on Sunday unless a federal ban is averted at the last minute, according to sources. The ban, stemming from a law signed last April, requires TikTok’s Chinese parent company, ByteDance, to sell its US assets by January 19 or face nationwide restrictions. The Supreme Court is currently deliberating on whether to uphold or pause the ban, but no ruling has been made yet.

President-elect Donald Trump, set to take office the day after the ban would take effect, is reportedly considering a temporary suspension of the shutdown. However, legal uncertainty clouds the possibility of such action. Meanwhile, the Biden administration, in its final days, has signalled it will not block the ban without a credible divestment plan from ByteDance. TikTok has argued that the law violates First Amendment rights and warned that a prolonged ban could lead to significant user loss and global disruptions to its services.

If the ban proceeds, TikTok plans to display a pop-up message informing users of the shutdown and allow them to download their data. The app would become largely inoperable as US companies would no longer be permitted to provide critical services for its maintenance. TikTok has emphasised its ability to restore operations quickly if the ban is reversed but warned that the shutdown would impact not just American users but its global platform due to its reliance on US-based infrastructure.

The political and legal standoff has sparked widespread public and corporate reactions. Social media users have expressed disappointment at the impending ban, while TikTok’s US operations, employing over 7,000 workers, hang in the balance. Despite ongoing efforts to delay the enforcement, the platform faces an uncertain future as Sunday’s deadline looms.

Apple and Amazon avoid UK lawsuit over reseller dispute

Apple and Amazon have successfully defeated a UK lawsuit accusing them of colluding to remove resellers of Apple products from Amazon’s platform. The Competition Appeal Tribunal ruled on Tuesday that the case, valued at £494 million, could not proceed.

Consumer law expert Christine Riefa had filed the lawsuit on behalf of around 36 million British consumers who purchased Apple or Beats products. Her legal team alleged the companies agreed in 2018 to block most resellers from Amazon’s UK marketplace, limiting competition for those products.

The tribunal rejected the case, citing Riefa’s failure to prove sufficient independence and robustness to represent the claimant class, particularly concerning third-party litigation funding. Apple and Amazon had previously argued the lawsuit lacked merit and requested its dismissal.

Riefa’s legal team and representatives for Apple and Amazon did not respond to requests for comment following the tribunal’s decision.