US Supreme Court to hear challenge to Texas pornography age verification law

The US Supreme Court will hear a challenge on Wednesday regarding a Texas law that mandates adult websites verify the age of users before granting access to potentially harmful material. The law, which is part of a broader trend across Republican-led states, requires users to submit personal information proving they are at least 18 years old to access pornographic content. The case raises significant First Amendment concerns, as adult entertainment industry groups argue that the law unlawfully restricts free speech and exposes users to risks such as identity theft and data breaches.

The challengers, including the American Civil Liberties Union and the Free Speech Coalition, contend that alternative methods like content-filtering software could better protect minors without infringing on adults’ rights to access non-obscene material. Texas, however, defends the law, citing concerns over the ease with which minors can access explicit content online.

This case is significant because it will test the balance between state efforts to protect minors from explicit content and the constitutional rights of adults to access protected expression. If the Supreme Court upholds the law, it could set a precedent for similar age-verification measures across the US.

Meta faces new challenge in India over data sharing

Meta may be forced to halt or modify features in India after an antitrust ruling banned its WhatsApp messaging service from sharing user data with Meta for advertising purposes. The Competition Commission of India (CCI) imposed a $24.5 million fine and a five-year ban on the practice, accusing the company of abusing its dominance and coercing WhatsApp users into accepting a 2021 privacy policy that allegedly expanded data sharing unfairly.

India, Meta’s largest market with over 500 million WhatsApp users and 350 million Facebook users, is crucial for the company’s operations. The data-sharing ban could impact Meta’s ability to offer personalised ads on Facebook and Instagram, the company said in its court filing. Meta argued that this restriction could harm businesses, such as fashion brands, that rely on personalised ads to connect with customers. The US firm also warned the ruling could threaten its commercial viability in the region.

Meta has publicly defended its 2021 policy changes but criticised the CCI’s decision in a 2,000-page tribunal appeal, claiming the watchdog lacks the technical expertise to assess the implications of its ruling. The Indian appeals tribunal is set to hear Meta’s case, with the possibility of pausing the CCI directive while the legal process unfolds.

This challenge in India adds to Meta’s global struggles, including prior accusations in the EU over unclear privacy policy changes. The CCI’s ruling now requires WhatsApp to give users the choice to opt out of data sharing with Meta, signaling a broader push for greater transparency and user control in data practices worldwide.

SEC takes legal action against Musk for Twitter shares

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of delaying the disclosure of his 2022 Twitter stake, which violated federal securities laws. According to the complaint, Musk waited 11 days beyond the required 10-day window to reveal his 5% ownership of Twitter, enabling him to purchase over $500 million worth of shares at lower prices before disclosing his 9.2% stake on April 4, 2022. Twitter’s stock price surged by more than 27% following the announcement.

The SEC seeks civil penalties and a repayment of profits it claims Musk gained unfairly. Musk’s attorney, Alex Spiro, dismissed the lawsuit as a ‘sham,’ arguing it stems from a minor administrative oversight. Musk has previously clashed with the SEC, including a 2018 settlement over misleading tweets about taking Tesla private, which resulted in a $20 million fine and other conditions.

This lawsuit is the latest in a series of legal challenges Musk faces over his $44 billion purchase of Twitter, now rebranded as X. Musk, who is worth $417 billion, according to Forbes, has also been sued by former Twitter shareholders in Manhattan federal court for the delayed disclosure, which they claim caused them financial harm. The SEC’s action comes just days before Chair Gary Gensler’s scheduled departure, marking another chapter in Musk’s contentious history with the regulatory body.

Indonesia targets age limits for social media access

Indonesia plans to implement interim guidelines to protect children on social media as it works toward creating a law to establish a minimum age for users, a senior communications ministry official announced on Wednesday. The move follows discussions between Communications Minister Meutya Hafid and President Prabowo Subianto, aiming to address concerns about online safety for children.

The proposed law will mirror recent regulations in Australia, which banned children under 16 from accessing social media platforms like Instagram, Facebook, and TikTok, penalising tech companies that fail to comply. In the meantime, Indonesia will issue regulations requiring platforms to follow child protection guidelines, focusing on shielding children from harmful content while still allowing access to some degree.

Public opinion on the initiative is divided. While parents like Nurmayanti support stricter controls to reduce exposure to harmful material, human rights advocates, including Anis Hidayah, urge caution to ensure children’s access to information is not unduly restricted. A recent survey revealed nearly half of Indonesian children under 12 use the internet, with many accessing social media platforms such as Facebook, Instagram, and TikTok.

This regulatory push reflects Indonesia’s broader efforts to balance digital innovation with safeguarding younger users in its rapidly growing online landscape

Apple’s new app fees face EU antitrust scrutiny

Apple’s latest charges for app developers are under fresh scrutiny from the European Union’s antitrust regulators. Concerns have been raised over the company’s new ‘core technology fee,’ which requires developers to pay €0.50 per installed app. Regulators are investigating whether the fee could increase costs for software makers or force them to change their business models.

The European Commission has circulated new questionnaires to developers, seeking insights on the financial impact of the fee and Apple’s claim that the changes will lower costs for most developers. The inquiry comes as major US tech companies urge President-elect Donald Trump to challenge EU regulations targeting American firms. Apple has not yet responded to the EU’s latest investigation.

Under the EU’s Digital Markets Act (DMA), Apple must comply with stricter rules on how it operates its App Store. The legislation allows regulators to fine major tech platforms up to 10% of their annual revenue for non-compliance. Apple, which has faced ongoing scrutiny in both the US and Europe over developer fees, says that 85% of developers using its App Store do not pay any commission.

Allstate sued by Texas over alleged driver tracking

Allstate is facing a lawsuit from the state of Texas over claims that it secretly tracked millions of drivers through their mobile phones without consent. Texas Attorney General Ken Paxton alleges that the insurer collected location data through apps like GasBuddy and Life360 to create a vast driving behaviour database. The data was then used to raise insurance premiums, deny coverage, or sell to other insurers for profit.

The lawsuit also claims Allstate recently started purchasing vehicle location data directly from manufacturers, including Toyota, Mazda, and Stellantis brands like Jeep and Dodge. Texas accuses the company of violating state laws on data privacy and deceptive insurance practices. Prosecutors are seeking financial penalties, consumer restitution, and the destruction of unlawfully obtained data.

General Motors faced a similar lawsuit from Texas last year over allegations of secretly collecting and selling driver data. Allstate, headquartered in Illinois, has yet to respond to the claims. If found guilty, the company could face significant fines and legal consequences.

EU reevaluates big tech probes amid shifting political landscape

The European Commission is reassessing its investigations into major tech companies, including Apple, Meta, and Google, under its landmark Digital Markets Act (DMA), according to the Financial Times. The review, which covers cases initiated since March 2024, comes as tech giants urge President-elect Donald Trump to push back against EU regulatory scrutiny. Sources suggest Trump’s presidency has influenced the review, though it was not the direct trigger.

The DMA, implemented in 2022, seeks to curb the dominance of Big Tech by imposing strict rules on their practices and fines of up to 10% of annual revenue for violations. The review may lead to narrowing or altering the scope of current probes, with all decisions and potential fines paused during this process. Technical work on the cases, however, will continue.

This development coincides with Meta’s recent overhaul of its US fact-checking program and CEO Mark Zuckerberg’s signals of a more conciliatory stance toward the Trump administration. Meanwhile, EU regulators are also examining whether Elon Musk’s social media platform X has violated content moderation rules, further highlighting the tech industry’s complex regulatory challenges.

Meta faces massive advertiser lawsuit after US Supreme Court decision

The US Supreme Court has rejected Meta’s attempt to block a massive class action lawsuit by advertisers accusing the company of inflating audience metrics. Advertisers claim Meta, the parent company of Facebook and Instagram, overstated the number of potential ad viewers, resulting in significant overcharges.

A lower court ruled that advertisers could seek damages collectively, stating Meta’s conduct was consistent across all affected parties. Plaintiffs, led by DZ Reserve and Cain Maxwell, argue Meta exaggerated potential audience figures by as much as 400%, focusing on social media accounts rather than unique users.

Meta challenged the decision, stating courts have rejected the ‘common course of conduct’ standard and that individual advertisers may not have relied on the figures. The company further criticised the court for excessive leniency when certifying class actions.

Potential damages could exceed $7 billion, covering millions of advertisers since 2014. Advertising remains Meta’s primary revenue source, with $116.1 billion generated in the first nine months of 2024.

Nvidia faces order delays as Blackwell chips overheat

Nvidia’s latest Blackwell AI chip racks are facing overheating issues, prompting major customers to delay or reduce their orders. Early shipments have reportedly suffered from technical glitches, affecting how the chips connect within data centre racks. As a result, companies including Microsoft, Amazon, Google, and Meta have scaled back their purchases, some opting for older Nvidia AI chips instead.

The hyperscalers had initially placed orders worth at least $10 billion each but are now reconsidering their plans. Microsoft, for example, intended to install 50,000 Blackwell chips in a Phoenix facility but has since switched to Nvidia’s previous-generation Hopper chips at OpenAI’s request. Nvidia has not commented on the situation, while Microsoft, Google, and Meta have yet to respond to inquiries.

Concerns over Nvidia’s sales extend beyond the overheating issues, as the US government has announced tighter restrictions on AI chip exports, potentially impacting revenue. Despite the setbacks, CEO Jensen Huang remains optimistic, stating that the company is still on track to generate billions in revenue from Blackwell chips this quarter. Huang has also denied earlier reports of overheating in liquid-cooled Blackwell servers.

Apple faces $1.8 billion UK lawsuit

Apple is defending itself against a $1.8 billion mass lawsuit in a London tribunal, accused of abusing its market dominance by charging app developers a 30% commission through its App Store. The lawsuit, brought on behalf of around 20 million UK iPhone and iPad users, claims the fees have unfairly inflated app costs for consumers.

Rachael Kent, the academic leading the case, argues Apple has leveraged its monopoly to exclude competition and impose restrictive terms on app developers. Apple’s lawyers counter that the fees reflect the benefits of its iOS ecosystem, emphasising its focus on security, privacy, and innovation. They also noted that most developers are exempt from paying commissions.

This trial marks the UK’s first class-action-style lawsuit against a tech giant under its evolving legal framework. Similar cases against Google, Meta, and Amazon are in progress, including a $1.1 billion lawsuit against Google over Play Store fees scheduled for later this year. The trial is expected to last seven weeks, with testimony from Apple’s CFO anticipated soon.