UMG and Spotify strike new multi-year deal

Universal Music Group (UMG) and Spotify have announced a new multi-year agreement covering recorded music and music publishing. The deal establishes a direct license between Spotify and UMG across the US and several other countries, aimed at enhancing the streaming experience for artists, songwriters, and consumers.

The partnership promises to introduce new offerings, including upgraded paid subscription tiers and a more expansive catalogue of music and visual content. Both companies emphasise that this collaboration will drive continuous innovation, making music subscriptions more appealing to a global audience.

As Spotify works to improve its profitability, the company has recently implemented cost-cutting measures, including layoffs and a reduced focus on podcasts. It has also raised prices for its US plans to cater to the growing demand for premium services.

EU completes probe into X, decision on major fine imminent

The European Commission has concluded its preliminary investigation into social media platform X and is poised to decide on a fine amounting to millions of euros, according to reports from Germany’s Handelsblatt newspaper. The probe’s findings and implications are expected to be revealed soon.

The investigation, conducted under the European Union‘s strict digital regulations, signals the bloc’s commitment to ensuring compliance from major tech companies operating within Europe. Details about the specific breaches or concerns raised during the probe have not yet been disclosed.

The European Commission has not commented on the report. The decision to impose a substantial fine would mark a significant move in enforcing its Digital Services Act, aimed at holding tech platforms accountable.

EU to test social media safeguards ahead of German elections

The European Commission has invited major social media platforms, including Facebook, TikTok, and X, to participate in a “stress test” on 31 January to assess their efforts in combating disinformation ahead of Germany‘s election next month. The test is part of the Digital Services Act (DSA), which requires companies to implement measures mitigating risks on their platforms. Similar tests were successfully conducted for the European Parliament elections last year.

EU spokesperson Thomas Regnier explained that the exercise would involve various scenarios to evaluate how platforms respond to potential challenges under the DSA. Senior compliance officers and specialists from companies such as Microsoft, LinkedIn, Google, Snap, and Meta have been invited to collaborate with German authorities in the closed-door session.

TikTok has confirmed its participation, while other platforms have yet to comment. The initiative underscores the European Union‘s commitment to ensuring transparency and accountability from tech giants in safeguarding democratic processes during elections.

Ads to launch on Threads platform

Meta has begun testing advertisements on its Threads platform in the US and Japan, targeting a small group of users with image ads in their home feeds. The trial comes as the platform surpasses 300 million monthly active users. Businesses will have the opportunity to extend their existing Meta campaigns to Threads, with the company closely monitoring the tests before a wider rollout.

Advertisers will also benefit from a new inventory filter powered by AI, enabling control over the type of content their ads appear alongside. Analysts suggest that while Threads is still a minor player in Meta’s overall revenue strategy, growing uncertainty around TikTok has led brands to explore alternative platforms.

Launched in July 2023 as a competitor to X, formerly known as Twitter, Threads continues to attract users following X’s controversial changes under Elon Musk. Meta’s plans to expand its AI infrastructure with a $65 billion investment this year further highlight its ambitions to remain competitive with tech giants such as OpenAI and Google.

While Threads is not expected to contribute significantly to Meta’s revenue by 2025, its integration into Meta’s broader ad ecosystem demonstrates the company’s efforts to capitalise on the platform’s growing popularity.

Zuckerberg drives Meta’s bold AI ambitions with $65 billion plans for 2025

Meta Platforms plans to invest up to $65 billion in 2025 to strengthen its artificial intelligence infrastructure, positioning itself against competitors OpenAI and Google. Chief Executive Mark Zuckerberg announced the plans, including ramped-up hiring for AI roles and the development of a massive 2-gigawatt data centre, enough to cover much of Manhattan.

The company, a significant buyer of Nvidia’s AI chips, aims to have over 1.3 million graphics processors in place by the end of the year. Meta intends to introduce about 1 gigawatt of computing power in 2025, marking a pivotal step in its strategy. Zuckerberg highlighted the transformative potential of AI, predicting its influence on Meta’s products and business over the coming years.

Competition in the AI sector has intensified, with companies like Microsoft and Amazon also committing tens of billions to AI infrastructure. Meta’s announcement follows news of Stargate, a $500 billion AI venture involving OpenAI, SoftBank, and Oracle. Analysts suggest Meta’s timing underscores its determination to remain a key player in the AI race.

Meta has distinguished itself with its open-source Llama AI models, which are freely accessible to consumers and businesses. Zuckerberg expects Meta’s AI assistant, already serving 600 million users, to reach over 1 billion by 2025. The planned investment significantly exceeds previous spending levels, signalling Meta’s commitment to leading in the rapidly evolving AI landscape

TikTok users report censorship concerns after US ban lifted

Some US TikTok users are voicing concerns over what they perceive as heightened content moderation following the app’s return. The platform, owned by China’s ByteDance, faced a temporary ban over national security concerns before being revived through an executive order. Although TikTok insists its policies remain unchanged, many users report noticeable differences in their experience.

Content creators claim that livestreams are less frequent and posts are being flagged or removed for guideline violations at higher rates. Some allege the platform has been restricting searches, issuing misinformation warnings, and deleting previously acceptable content, such as comments mentioning ‘Free Palestine’ or referencing political figures. TikTok asserts it does not permit violent or hateful content and blames temporary instability during the restoration of its US operations.

Prominent creators have shared their struggles. Comedian Pat Loller reported his satirical video on Elon Musk faced sharing restrictions, while political commentator Danisha Carter’s account was permanently banned for alleged policy violations. Other users describe strikes against seemingly harmless content, fuelling suspicions that moderation may target specific identities or viewpoints.

The controversy has revived debates about censorship and freedom of speech on social media platforms. As TikTok navigates its future, including potential acquisition by a US buyer, creators and users alike question the impact of these changes on online expression.

Hashtag issues add to Meta’s chaotic transition week during US presidency handover

Meta has come under scrutiny after its AI chatbot failed to identify the current US president correctly. Despite Donald Trump’s inauguration on Monday, the chatbot continued to name Joe Biden as president through Thursday. The error led Meta to activate its high-priority troubleshooting protocol, a ‘site event’, to address the issue urgently.

The incident marked at least the third emergency Meta faced this week during the US presidential transition. Other problems included forcing users to re-follow Trump administration profiles on social media and hashtag search errors on Instagram. Meta attributed the re-following issue to delays in transferring White House accounts, which affected ‘unfollow’ requests.

Complaints also arose after searches for Democratic hashtags were blocked while Republican hashtags displayed results normally. Meta acknowledged the issue, claiming it affected searches for various hashtags across the platform. These errors come amid broader platform changes, including scrapping fact-checking programs and reshaping its leadership.

Critics have linked the missteps to perceived shifts in Meta’s political alignment. CEO Mark Zuckerberg’s attendance at Trump’s inauguration and recent strategic moves, such as appointing Trump allies to key positions, have fuelled debate over the platform’s neutrality.

Germany urges social media platforms to tackle disinformation before election

Germany’s interior minister, Nancy Faeser, has called on social media companies to take stronger action against disinformation ahead of the federal parliamentary election on 23 February. Faeser urged platforms like YouTube, Facebook, Instagram, X, and TikTok to label AI-manipulated videos, clearly identify political advertising, and ensure compliance with European laws. She also emphasised the need for platforms to report and remove criminal content swiftly, including death threats.

Faeser met with representatives of major tech firms to underline the importance of transparency in algorithms, warning against the risk of online radicalisation, particularly among young people. Her concerns come amidst growing fears of disinformation campaigns, possibly originating from Russia, that could influence the upcoming election. She reiterated that platforms must ensure they do not fuel societal division through unchecked content.

Calls for greater accountability in the tech industry are gaining momentum. At the World Economic Forum in Davos, Spanish Prime Minister Pedro Sánchez criticised social media owners for enabling algorithms that erode democracy and “poison society.” Faeser’s warnings highlight the growing international demand for stronger regulations on social media to safeguard democratic processes.

Google wins court battle over Russian judgments

Google secured an injunction from London’s High Court on Wednesday, preventing the enforcement of Russian legal judgments against the company. The rulings related to lawsuits filed by Russian entities, including Tsargrad TV and RT, over the closure of Google and YouTube accounts. Judge Andrew Henshaw granted the permanent injunction, citing Google’s terms and conditions, which require disputes to be resolved in English courts.

The Russian judgments included severe ‘astreinte penalties,’ which increased daily and amounted to astronomical sums. Google’s lawyers argued that some fines levied on its Russian subsidiary reached numbers as large as an undecillion roubles—a figure with 36 zeroes. Judge Henshaw highlighted that the fines far exceeded the global GDP, supporting the court’s decision to block their enforcement.

A Google spokesperson expressed satisfaction with the ruling, criticising Russia’s legal actions as efforts to restrict information access and penalise compliance with international sanctions. Since 2022, Google has taken measures such as blocking over 1,000 YouTube channels, including state-sponsored news outlets, and suspending monetisation of content promoting Russia‘s actions in Ukraine.

India probes Uber and Ola over iPhone pricing

The Indian government has issued notices to ride-hailing companies Ola and Uber, launching an investigation into allegations of price discrimination. Concerns have arisen over reports and user complaints suggesting that iPhone users are being charged significantly higher fares for the same rides compared to those using Android devices. This investigation, led by the Central Consumer Protection Agency (CCPA), aims to determine if these price discrepancies are indeed occurring and whether they constitute unfair trade practices.

The government has previously expressed strong opposition to differential pricing, deeming it an unfair and discriminatory practice. India is a crucial market for both Ola and Uber, with intense competition among various ride-hailing services. The outcome of this investigation could have significant implications for the industry, potentially impacting pricing models and consumer trust.

Beyond the ride-hailing sector, the CCPA will also examine potential pricing disparities in other sectors, including food delivery and online ticketing platforms. The broader investigation aims to identify and address any instances where consumers may be facing discriminatory pricing based on factors such as the device they use or other personal characteristics.

Ensuring fair and transparent pricing practices in the digital economy is crucial. As technology continues to shape our daily lives, it is essential to address concerns about potential algorithmic biases and discriminatory practices that may be embedded within digital platforms. The Indian government’s action sends a clear message that such practices will not be tolerated and that consumer protection remains a top priority.