Italy is demanding 12.5 million euros ($13 million) from Elon Musk’s social network X following a tax probe linked to a broader investigation into Meta. The case, which focuses on value-added tax (VAT) claims for the years 2016 to 2022, is significant as it raises questions about how social networks provide access to their services. Italian tax authorities argue that user registrations on platforms like X, Facebook, and Instagram should be considered taxable transactions, as they involve the exchange of personal data for a membership account.
This case could have major implications for the tech sector in Europe, potentially altering the way business models are structured in the 27-nation European Union, as VAT is a harmonised EU tax. Although the claim of 12.5 million euros is a small amount for X, the outcome of this case could influence future tax policies across the region. Both X and Meta must respond to the tax authority’s observations by late March or early April, with the option to either accept the charges or challenge them in court.
The investigation also comes at a sensitive time, as US President Donald Trump has criticised digital taxes in countries like Italy that target US tech firms. Musk, who has strong ties with Italian Prime Minister Giorgia Meloni, is also keen to expand his Starlink business in the country. If no agreement is reached, Italy’s Revenue Agency may pursue a lengthy judicial review, which could take up to 10 years to resolve.
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More than 1,000 musicians have joined forces to release a silent album as part of a protest against the UK government’s proposed changes to copyright laws. The changes would allow AI companies to use artists’ work to train models without needing permission, a move critics argue would undermine creators’ rights. The silent album, titled ‘Is This What We Want?’, features empty studios and performance spaces, symbolising the potential loss of control over their work.
The changes have sparked outrage from high-profile artists such as Kate Bush, who warned that this could lead to the exploitation of musicians by tech companies. The protest album, which includes contributions from other major artists like Ed Sheeran and Dua Lipa, aims to highlight the negative impact of such reforms on the livelihoods of creators.
The UK government argues that these changes will help boost the AI and creative industries, allowing them to reach their full potential. However, the controversy over copyright law is growing, with many in the music industry urging a rethink before any new regulations are finalised.
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Google has launched a new free AI tool aimed at helping developers with code completion and assistance. Gemini Code Assist for Individuals allows users to interact with a Google AI model through a chat window, helping to fix bugs, complete code, or explain parts of a codebase. The tool can be integrated into popular coding environments like VS Code and JetBrains, and supports a range of programming languages. It offers impressive capabilities, with 180,000 code completions per month—90 times more than GitHub’s free Copilot plan—and 240 daily chat requests, well beyond the limits of competing tools.
In addition, Google unveiled Gemini Code Assist for GitHub, a tool that automatically scans code in pull requests to identify bugs and provide helpful suggestions. These tools highlight Google’s increasing efforts to compete with Microsoft and GitHub in the developer space. Both tools leverage Google’s Gemini 2.0 AI model, fine-tuned for coding tasks, and offer a context window four times larger than similar models, enabling the AI to process more complex code.
The launch marks a strategic move by Google to attract developers, especially those early in their careers, with the hope that some will eventually transition to premium plans. Gemini Code Assist for Individuals is available through a free public preview, with Google planning to roll out additional enterprise features soon, including integration with third-party tools and more advanced customisation options for businesses.
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Indian billionaire Mukesh Ambani is focusing on small businesses and promoting innovative neuroscience research to boost Reliance’s revenue from the Indian Premier League (IPL). After striking an $8.5 billion merger with Walt Disney, Reliance plans to attract small companies to advertise during the IPL by offering affordable ad packages starting at $17,000. The company has been conducting closed-door seminars in various Indian cities to pitch these packages, aiming to expand its digital ad inventory and increase streaming revenue.
Reliance is also experimenting with “brain mapping” research to show higher engagement rates for its IPL ads compared to rivals like Google and Meta. The company claims its ads have up to four times more focus, engagement, and memorability, based on neural studies of participants. However, the ad rates for IPL streaming have risen by up to 25%, creating competition with lower-cost platforms like Instagram and YouTube, where some businesses find advertising more affordable.
Despite heavy investments in IPL and other cricket rights, Reliance faces challenges in making the venture profitable. The company is battling major global players in India’s growing digital advertising market, where Google and Meta dominate. Reliance’s ad pitch focuses on user data, offering targeted ads based on viewer demographics. Yet, experts argue that Reliance’s efforts, including using brain scans to boost ad appeal, may not be enough to compete with the sheer reach of platforms like YouTube.
The high cost of IPL broadcast rights, coupled with increasing ad rates, puts pressure on Reliance’s strategy. Still, Ambani remains confident in the IPL’s potential to attract advertisers and retain viewers who may subscribe to additional content offerings. With competition intensifying in India’s $28-billion digital ad market, Reliance’s new tactics may shape its future in the entertainment and advertising sectors.
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The European Court of Justice has backed Italy‘s antitrust authority in a ruling against Google, stating that the tech giant’s refusal to allow Enel’s JuicePass app to work with its Android Auto platform could constitute an abuse of market power. This decision supports a 2021 fine of 102 million euros imposed by the Italian watchdog after Google blocked the e-mobility app. Google had argued that the refusal was due to security concerns and the absence of a specific template for compatibility, but the court disagreed, stating that dominant companies must ensure their platforms are interoperable with third-party apps unless doing so would harm security.
Although Google has since resolved the issue, the ruling sets a precedent for future cases involving platform dominance. The court acknowledged that companies could refuse interoperability if it compromises platform security, but if this is not the case, they must develop a compatible template in a reasonable timeframe. Google claimed the feature was only relevant to a small percentage of cars in Italy at the time, but the ruling now forces the company to comply with the antitrust decision. The case is final and cannot be appealed, and the Italian Council of State will follow the court’s guidance in its future ruling.
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Although a Berlin court initially supported the activists’ request, X filed a motion arguing the judge had shown bias by interacting with the plaintiffs’ social media posts. The court approved the motion, though similar claims against two other judges were dismissed.
The ruling means that the activists will not receive the requested data within their critical timeframe. A hearing on the matter is set for February 27, but any ruling will come too late to influence their election monitoring efforts in Germany.
However, the decision could establish an important precedent for future transparency cases involving social media platforms. The activists had argued that while some election data is technically accessible, it is not realistically obtainable without direct access from X.
X has also announced plans to sue the German government over what it calls excessive user data requests, claiming these demands violate privacy and freedom of expression.
The German digital affairs ministry acknowledged X’s public statements but confirmed that no formal lawsuits had been filed yet. The escalating legal dispute highlights growing tensions between Musk and German authorities, particularly as the country prepares for key elections amid concerns over misinformation.
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Bluesky, the rapidly growing decentralised social media platform, has partnered with the UK-based Internet Watch Foundation (IWF) to combat the spread of child sexual abuse material (CSAM). As part of the collaboration, Bluesky will gain access to the IWF’s tools, which include a list of websites containing CSAM and a catalogue of digital fingerprints, or ‘hashes,’ that identify abusive images. This partnership aims to reduce the risk of users encountering illegal content while helping to keep the platform safe from such material.
Bluesky’s head of trust and safety, Aaron Rodericks, welcomed the partnership as a significant step in protecting users from harmful content. With the platform’s rapid growth—reaching over 30 million users by the end of last month—the move comes at a crucial time. In November, Bluesky announced plans to expand its moderation team to address the rise in harmful material following the influx of new users.
The partnership also highlights the growing concern over online child sexual abuse material. The IWF reported record levels of harmful content last year, with over 291,000 web pages removed from the internet. The foundation’s CEO, Derek Ray-Hill, stressed the urgency of tackling the crisis, calling for a collective effort from governments, tech companies, and society.
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Trump Media & Technology Group and Rumble have filed an emergency motion in a US court against Brazilian Supreme Court Justice Alexandre de Moraes. The firms argue that his orders violate US sovereignty, constitutional rights, and laws.
The dispute began when Moraes ordered Rumble to suspend its services in Brazil until it complied with local regulations. The judge also threatened criminal charges against Rumble’s CEO, Chris Pavlovski, for non-compliance. The company had previously sued Moraes in a US court over alleged illegal censorship.
Moraes has been a key figure in Brazil’s crackdown on disinformation, particularly during Jair Bolsonaro’s presidency.
He has also ordered fines and restrictions on accounts linked to Bolsonaro allies, including Allan dos Santos, who is under investigation for spreading false information.
The Brazilian Supreme Court has yet to respond to the motion, while Rumble and Trump Media continue their legal battle in the US.
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Alphabet’s mapping app, Waze, must strengthen efforts to combat illegal online content after exceeding the user threshold under EU regulations.
The European Commission confirmed Waze reported 50.5 million average monthly users in the second half of 2024, surpassing the 45 million mark set by the Digital Services Act (DSA). This designation means Waze must comply with stricter content moderation and transparency obligations.
Three adult content platforms—Pornhub, Stripchat, and XVideos—could see a reduction in regulatory scrutiny after reporting lower user numbers.
Previously classified as Very Large Online Platforms (VLOPs), the sites recorded average monthly users below the required threshold in late 2024. The European Commission acknowledged that a delisting is possible, though general DSA rules would still apply.
The Commission is reviewing platform data and expects to issue decisions within two months. Companies failing to meet DSA requirements could face penalties of up to 6% of their global annual revenue.
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Australia’s eSafety Commission has fined messaging platform Telegram A$1 million ($640,000) for failing to respond promptly to questions regarding measures it took to prevent child abuse and extremist content. The Commission had asked social media platforms, including Telegram, to provide details on their efforts to combat harmful content. Telegram missed the May 2024 deadline, submitting its response in October, which led to the fine.
eSafety Commissioner Julie Inman Grant emphasised the importance of timely transparency and adherence to Australian law. Telegram, however, disagreed with the penalty, stating that it had fully responded to the questions, and plans to appeal the fine, which it claims was solely due to the delay in response time.
The fine comes amid increasing global scrutiny of Telegram, with growing concerns over its use by extremists. Australia’s spy agency recently noted that a significant portion of counter-terrorism cases involved youth, highlighting the increasing risk posed by online extremist content. If Telegram does not comply with the penalty, the eSafety Commission could pursue further legal action.
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