Digital business models Archives | Page 492 of 571

EU files WTO complaint against China’s patent practices

The European Commission has filed a complaint with the World Trade Organization (WTO) against China, accusing the country of ‘unfair and illegal’ practices regarding worldwide royalty rates for European standard essential patents (SEPs). According to the Commission, China has empowered its courts to set global royalty rates for the EU companies, particularly in the telecoms sector, without the consent of the patent holders.

The case focuses on SEPs, which are crucial for technologies like 5G, used in mobile phones. European companies such as Nokia and Ericsson hold many of these patents. The Commission claims that China’s actions force European companies to reduce their royalty rates globally, providing Chinese manufacturers with unfairly low access to European technologies.

The European Union has requested consultations with China, marking the first step in WTO dispute resolution. If a resolution is not reached within 60 days, the EU can request the formation of an adjudicating panel, which typically takes about a year to issue a final report. This case is linked to a previous EU dispute at the WTO concerning China’s anti-suit injunctions, which restrict telecom patent holders’ ability to enforce intellectual property rights in courts outside China.

Chinese firm MiniMax unveils advanced AI models amid rising tensions

Chinese AI company MiniMax has introduced three new models—MiniMax-Text-01, MiniMax-VL-01, and T2A-01-HD—designed to compete with leading systems developed by firms such as OpenAI and Google. Backed by Alibaba and Tencent, MiniMax has raised $850 million in funding and is valued at over $2.5 billion. The models include a text-only model, a multimodal model capable of processing text and images, and an audio generator capable of creating synthetic speech in multiple languages.

MiniMax-Text-01 boasts a 4-million-token context window, significantly larger than those of competing systems, allowing it to process extensive text inputs. Its performance rivals industry leaders like Google’s Gemini 2.0 Flash in benchmarks measuring problem-solving and comprehension skills. The multimodal MiniMax-VL-01 excels at image-text tasks but trails some competitors on specific evaluations. T2A-01-HD, the audio generator, delivers high-quality synthetic speech and can clone voices using just 10 seconds of recorded audio.

The models, mostly accessible via platforms like GitHub and Hugging Face, come with licensing restrictions that prevent their use in developing competing AI systems. MiniMax has faced controversies, including allegations of unauthorised use of copyrighted data for training and concerns about AI-generated content replicating logos and public figures. The releases coincide with new US restrictions on AI technology exports to China, potentially heightening challenges for Chinese AI firms aiming to compete globally.

Bluesky joins the short-video frenzy

Bluesky has launched a vertical video feed, positioning itself as a competitor in the short-video space amidst uncertainty surrounding TikTok’s future in the US. This new feature is accessible via the Explore tab and allows users to scroll through trending videos by swiping up. For convenience, users can pin the feed to their home screen or add it to their list of custom feeds.

Acknowledging developers building TikTok alternatives, Bluesky highlighted emerging platforms such as ‘Tik.Blue’ and ‘Skylight.Social,’ which are currently in early development stages. These efforts align with Bluesky’s growth, as the platform has surpassed 28 million users.

Other platforms are also leveraging TikTok’s precarious situation. Elon Musk’s X recently introduced a vertical video feed, while Meta unveiled Edits, a video editing app to rival ByteDance’s CapCut. Bluesky’s latest move highlights a broader shift among social networks seeking to capture the short-video audience in the US and globally.

FTC warns of risks in big tech AI partnerships

The Federal Trade Commission (FTC) has raised concerns about the competitive risks posed by collaborations between major technology companies and developers of generative AI tools. In a staff report issued Friday, the agency pointed to partnerships such as Microsoft’s investment in OpenAI and similar alliances involving Amazon, Google, and Anthropic as potentially harmful to market competition, according to TechCrunch.

FTC Chair Lina Khan warned that these collaborations could create barriers for smaller startups, limit access to crucial AI tools, and expose sensitive information. ‘These partnerships by big tech firms can create lock-in, deprive start-ups of key AI inputs, and reveal sensitive information that undermines fair competition,’ Khan stated.

The report specifically highlights the role of cloud service providers like Microsoft, Amazon, and Google, which provide essential resources such as computing power and technical expertise to AI developers. These arrangements could restrict smaller firms’ access to these critical resources, raise business switching costs, and allow cloud providers to gain unique insights into sensitive data, potentially stifling competition.

Microsoft defended its partnership with OpenAI, emphasising its benefits to the industry. ‘This collaboration has enabled one of the most successful AI startups in the world and spurred unprecedented technology investment and innovation,’ said Rima Alaily, Microsoft’s deputy general counsel. The FTC report underscores the need to address the broader implications of big tech’s growing dominance in generative AI.

Social platform X takes aim at TikTok’s market

Social platform X has unveiled a vertical video feed for its US audience, aiming to capture users left adrift by the removal of ByteDance’s apps like TikTok and Lemon8 from US app stores. The new feature, accessible through a dedicated video tab, offers a streamlined way for users to view video content.

This update builds on existing functionality, where users could already scroll through videos by tapping them on their timeline. The video tab, however, marks the platform’s first dedicated space for short-form video. X has been increasingly focused on enhancing its video offerings, having launched a standalone TV app last year to feature content from creators and organisations.

As TikTok grapples with regulatory challenges, other platforms are seizing the opportunity. Meta recently introduced Edits, a video editing tool aimed at rivaling ByteDance’s CapCut, while Bluesky has rolled out its own vertical video feed. X’s latest move signals a strategic pivot to bolster its video presence and compete in this evolving digital landscape.

Meta unveils new video editing app to compete with CapCut

Meta announced the launch of a new video editing app called Edits, set to release next month for iOS, with an Android version to follow. The app comes after ByteDance’s CapCut was removed from the Apple App Store and Google Play Store amid the ongoing TikTok ban. Instagram head Adam Mosseri shared the news on Threads, emphasising the company’s focus on providing creators with the best tools for video-making.

Edits will offer a suite of creative tools, including a dedicated inspiration tab, an idea tracker, a high-quality camera, and the ability to share drafts with collaborators. Users will also have access to insights on video performance after publishing on Instagram. Mosseri clarified that the app is geared more toward serious creators than casual video makers.

Meta has a history of launching products to fill gaps in the market, such as Instagram Reels in 2020 when TikTok was banned in India. The company likely sees Edits as an opportunity to capture video creators after CapCut’s removal, positioning itself as a key player in the video editing space. Meanwhile, competitors like Captions are also stepping up, shifting to a freemium model to attract users.

X launches vertical video feed to attract US users

Social network X is introducing a dedicated vertical video feed for users, aiming to capitalise on the removal of ByteDance apps like TikTok and Lemon8 from US app stores. The new video tab, added to the app’s bottom bar, provides users quick access to immersive video content.

X users could scroll through short videos by tapping them in their timeline, but the new tab creates a dedicated space for videos. This marks the platform’s latest effort to enhance video experiences, following the launch of a standalone TV app last year to showcase content from creators and organisations.

As TikTok’s future in the US remains uncertain, other social networks are seizing the opportunity. Meta recently announced a video editing app, Edits, to rival ByteDance’s CapCut, while Bluesky introduced a custom feed for vertical videos, further intensifying competition in the short video market.

Italy sees €10 billion data centre boom

Italy is poised to see a dramatic rise in data centre investments, with spending expected to double to €10 billion between 2025 and 2026, according to Milan Polytechnic University. The increase in funding is fuelled by global technology giants expanding their cloud capabilities to meet surging demand driven by AI.

Recent commitments include Microsoft’s €4.3 billion plan to grow its cloud network in Italy and Amazon Web Services’ €1.2 billion investment over five years. These projects highlight Italy’s potential as a hub for cloud development. However, challenges such as high energy costs and potential power grid bottlenecks could hinder the country’s ability to fully capitalise on these opportunities.

Experts warn that the sustainability of Italy’s electricity grid will play a critical role in accommodating the expansion of powerful cloud infrastructure. Despite these hurdles, the investment wave signals growing confidence in Italy’s tech ecosystem, reflecting its strategic importance in Europe’s digital transformation.

Breach exposes FBI data links

A major data breach involving telecom provider AT&T has compromised sensitive information about FBI agents’ call and text logs. The incident, which occurred last year, exposed phone numbers and contact details, though not the content of communications. FBI officials warn that the breach may risk revealing the identities of confidential informants.

AT&T reported in July that hackers had stolen records linked to 109 million customer accounts. Among the stolen data were months of FBI call logs, potentially connecting agents to their sources. While AT&T claims to have collaborated with law enforcement to mitigate the damage, the FBI continues to prioritise protecting its informants.

The breach has reignited concerns about cyber-espionage targeting US telecom networks. Earlier this month, the US national security adviser highlighted ongoing threats from Chinese-linked cyber operations. Although telecom firms, including AT&T and Verizon, say their systems are now secure, the incident underscores the persistent risks posed by sophisticated hackers.

US trade groups fight new payment app rules

Two technology trade groups have filed a lawsuit against the US Consumer Financial Protection Bureau (CFPB), aiming to block a rule granting the agency oversight of payment apps and digital wallets offered by large non-bank companies. The rule, announced in November, targets companies handling over 50 million transactions annually, including platforms like Apple Wallet, Google Pay, and Venmo.

The groups, NetChoice and TechNet, argue the rule is an overreach of the US CFPB’s authority, claiming it stifles innovation and increases costs. They assert that the bureau failed to identify specific consumer risks justifying such oversight. CFPB Director Rohit Chopra, however, defended the measure, saying it ensures users of digital payments receive the same protections against fraud and privacy violations as traditional banking customers.

The lawsuit raises concerns about the potential impact on competition and innovation within the digital payments sector. With uncertainty over whether the incoming Republican administration will seek to modify or repeal the rule, the legal challenge underscores ongoing tensions between regulators and the tech industry.