Digital business models

Apple to sell iPhone 16 in Indonesia after key agreements

Apple is set to begin selling its iPhone 16 in Indonesia following a new agreement with the government, which includes the establishment of a manufacturing plant and a research and development centre. The country’s industry minister, Agus Gumiwang Kartasasmita, confirmed on Wednesday that Apple would soon receive the required local content certificate to allow sales of the device. However, he did not specify when the certificate would be issued.

Indonesia had previously banned the iPhone 16 due to Apple’s failure to meet the local content requirement, which mandates that a certain percentage of parts must be sourced domestically or through local partnerships. Although Apple has no manufacturing facilities in Indonesia, it has been operating developer academies in the country since 2018. Indonesia, with its population of 280 million, is keen to attract more tech-related investment.

Analysts have warned that the local content ban could harm investor confidence and fuel concerns about protectionism, but the new agreements between Apple and the Indonesian government may help address these issues.

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Photoshop expands to iPhones with free and premium versions

Adobe has launched Photoshop on mobile phones for the first time, introducing both a free version and a premium subscription priced at $7.99 per month. Previously, the lowest-cost subscription was $9.99 per month for iPad users.

The app is now available on Apple’s iPhone, with an Android version expected soon.

The move comes as smartphone operating systems increasingly offer built-in photo editing features similar to Photoshop. Adobe aims to attract younger users who rely on their phones for photography and content creation.

Even the free version includes features such as layer editing, masking, and text tools, making it useful for creating social media content, podcast covers, and video thumbnails.

Adobe‘s creative software remains a major source of revenue, despite missing Wall Street expectations in its 2025 forecast.

Deepa Subramaniam, Adobe’s vice president of product marketing, said the company designed the mobile app specifically for next-generation creators who use their phones as their primary editing tool.

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Google loses European court battle over Android Auto access

Europe’s top court has ruled that Google’s decision to block an Enel e-mobility app from Android Auto could be considered an abuse of market power. The judgment reinforces competition rules and may push major tech firms to allow easier access for rival apps.

The case stemmed from a €102 million fine imposed by Italy’s antitrust authority in 2021 for restricting access to Enel’s JuicePass app.

Google challenged the penalty, arguing security concerns and the absence of a specific app template. However, the Court of Justice of the European Union backed the Italian regulator, stating that dominant companies must ensure interoperability unless valid security risks exist.

The court clarified that companies should develop necessary templates within a reasonable timeframe.

Although Google has since introduced the requested feature, the ruling may set a precedent for similar cases. Legal experts see it as aligning with EU competition law, citing past decisions against IBM and Microsoft.

The ruling also supports the objectives of the Digital Markets Act, which aims to regulate dominant digital platforms.

The decision is final and unappealable, meaning the Italian Council of State must now rule on Google’s appeal in line with the court’s findings.

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Italy demands 12.5 million euros from X over tax probe

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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China says US curbs will harm global semiconductor industry

China has warned that the United States‘ efforts to pressure other nations into targeting its semiconductor industry will ultimately backfire.

During a regular press briefing, Chinese foreign ministry spokesperson Lin Jian criticised Washington’s approach, arguing that it would disrupt the global semiconductor supply chain and hinder industry development worldwide.

The comments came in response to reports that the White House plans to tighten restrictions on China’s access to advanced chip technologies.

Lin Jian emphasised that such actions not only undermine fair competition but also threaten the stability of the global technology market.

Tensions between the US and China over semiconductor access have escalated in recent years, with Washington implementing export controls and encouraging its allies to adopt similar measures.

Beijing has consistently opposed these restrictions, calling them politically motivated attempts to curb China’s technological progress.

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Apple expands US investment with new Texas facility

Apple has unveiled plans to invest $500 billion in the United States over the next four years. The investment will include the construction of a large facility in Texas for the production of AI servers, as well as the creation of 20,000 research and development jobs nationwide. This pledge highlights Apple’s continued commitment to strengthening its presence in the US, despite many of its products being assembled overseas.

Part of the investment will also go towards enhancing Apple’s Advanced Manufacturing Fund, which will grow from $5 billion to $10 billion. This fund will support the production of advanced silicon chips at a facility in Arizona, alongside a collaboration with Foxconn to build a 250,000-square-foot server assembly plant in Houston.

Additionally, Apple will open a new manufacturing academy in Michigan to help local businesses improve their processes and skills. These initiatives follow a similar commitment made in 2018, further cementing Apple’s role in the US economy and its ongoing expansion in research and manufacturing.

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Google faces lawsuit over AI search impact on publishers

An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing.

Chegg alleges the technology reduces demand for original content by keeping users on Google’s platform, ultimately eroding financial incentives for publishers. The company warns this could lead to a weaker online information ecosystem.

Chegg, which provides textbook rentals and homework help, says Google’s AI features have contributed to a drop in traffic and subscribers.

As a result, the company is considering a sale or a move to go private. Chegg’s CEO Nathan Schultz argues Google is profiting from the company’s content without proper compensation, threatening the future of quality educational resources.

A Google spokesperson rejected the claims, insisting AI overviews enhance search and create more opportunities for content discovery. The company maintains that search traffic remains strong, with billions of clicks sent to websites daily.

However, Chegg argues that Google’s dominance in online search allows it to pressure publishers into providing data for AI summaries, leading to fewer visitors to original sites.

The lawsuit marks the first time an individual company has accused Google of antitrust violations over AI-generated search features. A similar case was previously filed on behalf of the news industry. A US judge overseeing another case involving Google’s search monopoly is handling this lawsuit as well.

Google intends to challenge the claims and is appealing a previous ruling that found it held an illegal monopoly in online search.

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Claude chatbot maker Anthropic plans major funding round

AI startup Anthropic is aiming to raise $3.5 billion in its latest funding round, potentially boosting its valuation to $61.5 billion, according to sources familiar with the talks.

The creator of the Claude chatbot could attract backing from major venture capital firms, including Lightspeed Venture Partners, General Catalyst, and Bessemer Venture Partners. This round would exceed the $2 billion previously reported, highlighting growing investor interest in the booming AI sector.

Anthropic’s fundraising effort comes amid a surge in investment in AI-focused startups, with nearly half of United States venture capital funding last year directed towards AI companies.

The appeal of US AI startups remains strong, even as China‘s more cost-effective alternatives, like DeepSeek, enter the market. OpenAI, Anthropic’s primary competitor and the creator of ChatGPT, is also reportedly in talks for a funding round that could value it at up to $300 billion.

Founded by former OpenAI executives Dario and Daniela Amodei, Anthropic has quickly emerged as a major player in the AI space. The company was last valued at $18 billion following a 2023 funding round led by Menlo Ventures.

In a bid to strengthen its market position, Anthropic has launched Claude 3.7 Sonnet, a new AI model designed to deliver faster responses and enhanced reasoning capabilities, giving it a competitive edge in the fast-evolving generative AI landscape.

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Intel’s high NA lithography technology shows early success

Intel has announced that the first two of ASML’s cutting-edge high NA lithography machines are now in operation at its factories. Early data shows these machines are producing more consistent results than previous models, with a reported reliability double that of earlier systems. This marks a turning point for Intel, which had struggled with the earlier generation of extreme ultraviolet (EUV) machines.

Intel’s production of 30,000 wafers in a single quarter using these new machines signifies a substantial step forward in chip manufacturing. These high NA machines can print features onto chips with fewer exposures and less processing time, streamlining the production process and reducing costs. This development is set to contribute to Intel’s upcoming 18A manufacturing technology, expected to power a new generation of PC chips later this year.

The company is also preparing to implement the high NA machines for the next generation of 14A technology, though no mass production date has yet been confirmed. This breakthrough is seen as a pivotal moment for Intel, positioning it to reclaim ground lost to rivals in recent years.

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Competition heats up for Musk’s Starlink in satellite internet

Elon Musk’s Starlink is facing mounting competition from several ambitious satellite internet projects, including China’s SpaceSail and Jeff Bezos’s Project Kuiper. SpaceSail, backed by the Chinese government, recently expanded its reach to Brazil and Kazakhstan, with plans for a 15,000-satellite constellation by 2030. Meanwhile, Bezos’s Project Kuiper is in talks with Brazilian officials to establish its own LEO satellite network.

These developments come as Beijing accelerates its investment in satellite technology, having launched a record 263 satellites last year. With SpaceSail aiming to deploy 648 satellites in 2025 alone, it is positioning itself as a serious challenger to Starlink’s current fleet of around 7,000 satellites. SpaceSail’s plans are seen as part of China’s broader push to expand its digital influence, sparking concerns about potential censorship capabilities.

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