Consumer protection

US FTC targets tech support scams with new rule changes

The Federal Trade Commission (FTC) has strengthened its rules to better protect consumers from tech support scams. With new amendments to the Telemarketing Sales Rule (TSR), the agency can now act against fraudsters even when victims initiate the call, closing a loophole that left many unable to seek justice.

Tech support scams commonly trick victims through fake pop-ups, emails, and warnings that urge them to contact bogus help desks. These scams have disproportionately affected older adults, who are five times more likely to be targeted, leading to over $175M in reported losses.

Previously, the US FTC could only pursue scammers if they made the initial call. The rule change now removes exemptions for technical support services, allowing the agency to crack down on deceptive practices regardless of how contact is made. Authorities are also targeting fraudulent pop-ups as part of a broader effort to combat these schemes.

With cases like the fake ‘Geek Squad’ scams resulting in millions in losses, the FTC’s expanded powers mark a significant step in holding scammers accountable and protecting vulnerable populations from financial harm.

FTC challenges Microsoft over cloud practices

The US Federal Trade Commission (FTC) has launched a wide-reaching antitrust investigation into Microsoft’s business practices, focusing on cloud computing, software licensing, and artificial intelligence. Allegations suggest the company has imposed restrictive licensing terms that make it difficult for customers to switch from its Azure cloud services to rival platforms. FTC Chair Lina Khan approved the probe ahead of her expected departure in January, raising questions about its future under a potentially business-friendlier administration.

Critics, including competitors and industry groups like NetChoice, claim Microsoft’s licensing policies unfairly lock customers into its ecosystem. Google has raised similar concerns with European regulators, citing significant mark-ups for using Windows Server on competing cloud services and delays in providing security updates. The FTC’s investigation also touches on broader competition concerns in AI and cybersecurity, including Microsoft’s acquisition of AI startup Inflection AI.

Microsoft has not commented on the probe, but complaints have mounted over its practices in cloud computing and the integration of AI tools into productivity products like Office and Outlook. Some industry observers note that Microsoft has been relatively spared in recent US antitrust actions targeting Big Tech firms, including Apple, Google, Meta, and Amazon. However, the FTC’s focus on Microsoft could signal a shift in regulatory priorities.

The outcome of the investigation remains uncertain, particularly with a potential change in the political landscape. While the Trump administration previously pursued aggressive antitrust enforcement, including actions against Google and Meta, Microsoft has benefited from its policies in the past, such as winning a contentious $10 billion Pentagon cloud contract over Amazon. Experts believe a new administration may alter enforcement priorities but not necessarily halt ongoing probes.

Google challenges verdict in Epic Games lawsuit

Google is appealing a court order mandating significant changes to its Play app store, arguing to the US 9th Circuit Court of Appeals that legal errors during the trial unfairly favoured Epic Games. The tech giant contends that the San Francisco jury should not have been allowed to rule on Epic’s claims and that the trial judge overstepped by issuing a nationwide injunction.

Epic, known for creating “Fortnite,” accused Google of monopolising app distribution and payment systems on Android devices. A jury sided with Epic last year, leading US District Judge James Donato to require Google to permit rival app stores on Android and allow competitors access to Play’s app catalogue. This injunction, set to last three years, is on hold pending the appeal.

Google warns the mandated changes would disrupt app developers and users, framing the judge’s order as excessive intervention. Epic, meanwhile, dismissed Google’s appeal as baseless and a refusal to honour the jury’s unanimous decision. The appeals court is set to hear arguments in February, with a decision expected later in 2025.

Margrethe Vestager reflects on EU legacy as competition chief

Margrethe Vestager, the European Union’s outgoing competition chief, is stepping down after a decade of high-profile confrontations with tech giants like Apple and Google. In an exit interview, she expressed regret over not being more aggressive in regulating Big Tech, acknowledging the continued dominance of major platforms despite billions in fines. She described her tenure as ‘partly successful,’ noting the slow pace of change in the tech landscape.

Vestager was instrumental in shaping the EU’s regulatory framework, pushing for initiatives like the Digital Markets Act (DMA) to curb monopolistic behaviour. However, she conceded that the full impact of these measures may take years to be felt. She emphasised the importance of stronger enforcement and deterrence, advocating for a bolder approach to regulating tech firms globally.

Her reflections also highlighted the role of the Digital Services Act (DSA) in overseeing social media platforms and addressing harmful content. Platforms like X and Telegram, which face criticism for inadequate content moderation, were pointed out as examples of why robust regulation is necessary. Vestager stressed that platforms undermining democracy must comply with the EU’s stringent laws.

As she prepares to transition to academia, Vestager’s departure marks the end of an era. While her legacy includes significant strides in holding tech companies accountable, the ongoing influence of these firms signals that the battle for better regulation is far from over. Teresa Ribera Rodríguez will succeed her, tasked with continuing this critical work.

Meta proposes EU standards for teen safety online

Meta has proposed a unified system for age verification and safety standards across the EU to better protect teenagers online. The plan includes requiring parental approval for app downloads by users under 16, with app stores notifying parents for consent. Meta also advocates for consistent age-appropriate content guidelines and supervision tools for teens that parents can manage.

The proposal follows calls from incoming EU technology commissioner Henna Virkkunen, who emphasised protecting minors as a priority. Meta’s global head of safety, Antigone Davis, highlighted the fragmented nature of current European regulations, urging the adoption of uniform rules to ensure better protections for teens.

Although some EU frameworks like the Digital Services Act and Audiovisual Media Services Directive touch on youth safety, the lack of EU-wide standards leaves much to member states. Meta’s proposal aligns with ongoing discussions around the Child Sexual Abuse Material regulation, which aims to enhance online protections for minors.

Google’s antitrust trial nears verdict

A pivotal antitrust case involving Google’s dominance in online advertising has reached its conclusion in a Virginia federal court. The US Department of Justice (DOJ) alleges that Alphabet’s Google unfairly monopolised key markets, including ad servers and advertiser networks, as well as attempting to dominate ad exchanges. Closing arguments were presented after a 15-day trial.

DOJ lawyers accused Google of manipulating the ad market for its advantage. They characterised the company as a ‘once, twice, three times a monopolist’ and likened the case to a tale of conflicting narratives, urging the judge to side with their evidence. Publishers testified about being unable to switch from Google’s services due to the company’s vast ad demand, highlighting the significant revenue at stake.

Google’s defence argued that its business practices align with antitrust laws and that the DOJ failed to meet the burden of proof. Company lawyers claimed the case misrepresented a competitive ad market and ignored Google’s legitimate strategies. Google contends the government focused narrowly on certain market aspects rather than acknowledging broader industry competition.

A decision could lead to major structural changes for Google’s advertising business. Prosecutors want Google to divest its Ad Manager platform, which includes its publisher ad server and ad exchange. The company recently offered to sell its ad exchange to resolve a similar EU antitrust inquiry, though European publishers rejected the proposal as inadequate.

Amazon Japan faces antitrust probe, source reports

Japan’s Fair Trade Commission has raided Amazon Japan over allegations of anti-monopoly violations. The company is suspected of pressuring sellers to reduce prices in exchange for favourable product placement on its e-commerce platform, a government source revealed.

The investigation comes amid growing global scrutiny of Amazon’s practices. In Europe, regulators are preparing a case to examine whether Amazon favours its branded products on its marketplace under new antitrust rules.

This is not the first time Amazon Japan has faced such scrutiny. In 2018, authorities accused it of shifting discount costs onto suppliers. The case was resolved after Amazon agreed to improve its business practices, but the latest allegations suggest ongoing concerns about its market conduct.

Google proposes changes to European search results amid antitrust scrutiny

Google has announced further changes to its search results in Europe in response to complaints from smaller competitors and looming EU antitrust charges under the Digital Markets Act (DMA). The tech giant has faced criticism from price-comparison sites, hotels, and small retailers over a 30% drop in direct booking clicks caused by earlier search tweaks.

The DMA, introduced last year to curb Big Tech dominance, prohibits Google from favouring its services. To comply, Google plans to offer expanded and uniformly formatted options for users to choose between comparison sites and supplier websites, along with new ad formats and tools for competitors to display prices and images.

As part of a test in Germany, Belgium, and Estonia, Google will temporarily remove hotel location maps and associated results to assess user interest in a simpler “ten blue links” layout. While reluctant to cut features, Google says these measures aim to strike a balance between user needs and regulatory requirements.

The European Commission has been scrutinising Google since March, with DMA violations carrying potential fines of up to 10% of global annual revenue. Google’s compliance efforts reflect its attempt to navigate the demands of regulators and rival businesses while maintaining its services’ usability.

Apple faces regulatory action over payment system in Brazil

Brazil’s antitrust regulator, Cade, has mandated Apple to lift restrictions on in-app payments. The decision follows a complaint by e-commerce giant MercadoLibre, accusing Apple of unfair practices.

The complaint, filed in 2022 in Brazil and Mexico, criticised Apple for forcing app developers to use its payment system. It also alleged that the company blocks apps from offering third-party digital goods or redirecting users to external websites.

Cade’s ruling requires Apple to permit developers to integrate external payment systems and allow hyperlinks to external purchasing platforms within apps. Developers must also have the option to include alternative in-app payment methods.

Apple faces a 250,000 real (£43,000) daily fine if it fails to comply within 20 days. Both Apple and MercadoLibre have yet to provide comments on the ruling.

US antitrust trial to challenge Meta in April

Meta, the company behind Facebook, is set to face trial in April over allegations from the US Federal Trade Commission (FTC) that it stifled competition by acquiring Instagram and WhatsApp. The FTC’s lawsuit, filed in 2020, argues that Meta acted illegally to maintain dominance in personal social networks by purchasing potential competitors rather than innovating within the mobile ecosystem.

The case is scheduled to begin on 14 April, as ruled by Judge James Boasberg. Earlier this month, the judge rejected Meta’s request to dismiss the case, which argued that the FTC’s claims relied on a narrow definition of the social media market. Meta highlighted competition from TikTok, YouTube, LinkedIn, and X as evidence that the FTC’s market analysis was outdated.

Judge Boasberg acknowledged the challenges facing the FTC, noting that shifts in technology and market dynamics complicate its claims. He described the agency’s approach as pushing antitrust law to its limits, raising doubts about whether its case could withstand trial.

The trial will examine whether Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were part of a deliberate strategy to eliminate competition. The outcome could have significant implications for the future of antitrust enforcement in the tech industry.