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EU reevaluates big tech probes amid shifting political landscape

The European Commission is reassessing its investigations into major tech companies, including Apple, Meta, and Google, under its landmark Digital Markets Act (DMA), according to the Financial Times. The review, which covers cases initiated since March 2024, comes as tech giants urge President-elect Donald Trump to push back against EU regulatory scrutiny. Sources suggest Trump’s presidency has influenced the review, though it was not the direct trigger.

The DMA, implemented in 2022, seeks to curb the dominance of Big Tech by imposing strict rules on their practices and fines of up to 10% of annual revenue for violations. The review may lead to narrowing or altering the scope of current probes, with all decisions and potential fines paused during this process. Technical work on the cases, however, will continue.

This development coincides with Meta’s recent overhaul of its US fact-checking program and CEO Mark Zuckerberg’s signals of a more conciliatory stance toward the Trump administration. Meanwhile, EU regulators are also examining whether Elon Musk’s social media platform X has violated content moderation rules, further highlighting the tech industry’s complex regulatory challenges.

European Central Bank joins Bluesky as Musk’s influence on X grows

The European Central Bank (ECB) has expanded its social media presence by joining Bluesky, a rival to Elon Musk’s X. A spokesperson stated that the move is part of a broader strategy to diversify communication channels following the adoption of other platforms last year. The ECB launched its Bluesky account by sharing an interview with chief economist Philip Lane, while confirming it will continue using X.

Musk, who has used X to promote political figures, recently endorsed Germany’s far-right Alternative for Germany party and has also backed Italy’s Prime Minister Giorgia Meloni. His influence has raised concerns among EU regulators, particularly over misinformation and political bias. Critics have also highlighted his opposition to diversity and climate policies, which contrasts with the ECB’s commitment to gender equality and environmental sustainability under President Christine Lagarde.

Bluesky, founded as an alternative to X, has seen a surge in users following recent political events, adding 2.5 million accounts after Donald Trump’s election victory. However, with 27 million users, it remains smaller than Threads and X, which have 252 million and 317 million active users, respectively. EU regulators have also flagged Bluesky for failing to disclose key details about its user base within the bloc.

Arm considers major price increase and potential chip design entry

Arm Holdings, a key supplier to the semiconductor industry, is planning significant price hikes and has considered entering the chip design market. The British company, which licenses technology to major firms like Apple and Qualcomm, has historically focused on royalties from intellectual property rather than manufacturing its own chips.

CEO Rene Haas and SoftBank’s Masayoshi Son are reportedly pushing for a more aggressive revenue strategy. Plans revealed during a recent trial against Qualcomm disclosed the ‘Picasso’ initiative, aiming to increase smartphone revenue by $1 billion over a decade. The approach involves raising royalty fees by as much as 300% for the latest chip designs.

Documents from 2019 showed Arm executives discussing these increases, but customers like Apple and Qualcomm, capable of designing their own chips, may avoid the higher fees. Arm has also explored making complete chips or chiplets, a strategy Haas described as long-term speculation rather than a confirmed plan.

Meetings with Samsung executives in 2022 further highlighted Arm’s strategy shift. Concerns over licensing agreements with Qualcomm led Samsung to shorten a supply deal with the chipmaker. Arm has not publicly confirmed any immediate plans for chip production or pricing adjustments.

Meta faces massive advertiser lawsuit after US Supreme Court decision

The US Supreme Court has rejected Meta’s attempt to block a massive class action lawsuit by advertisers accusing the company of inflating audience metrics. Advertisers claim Meta, the parent company of Facebook and Instagram, overstated the number of potential ad viewers, resulting in significant overcharges.

A lower court ruled that advertisers could seek damages collectively, stating Meta’s conduct was consistent across all affected parties. Plaintiffs, led by DZ Reserve and Cain Maxwell, argue Meta exaggerated potential audience figures by as much as 400%, focusing on social media accounts rather than unique users.

Meta challenged the decision, stating courts have rejected the ‘common course of conduct’ standard and that individual advertisers may not have relied on the figures. The company further criticised the court for excessive leniency when certifying class actions.

Potential damages could exceed $7 billion, covering millions of advertisers since 2014. Advertising remains Meta’s primary revenue source, with $116.1 billion generated in the first nine months of 2024.

Apple faces $1.8 billion UK lawsuit

Apple is defending itself against a $1.8 billion mass lawsuit in a London tribunal, accused of abusing its market dominance by charging app developers a 30% commission through its App Store. The lawsuit, brought on behalf of around 20 million UK iPhone and iPad users, claims the fees have unfairly inflated app costs for consumers.

Rachael Kent, the academic leading the case, argues Apple has leveraged its monopoly to exclude competition and impose restrictive terms on app developers. Apple’s lawyers counter that the fees reflect the benefits of its iOS ecosystem, emphasising its focus on security, privacy, and innovation. They also noted that most developers are exempt from paying commissions.

This trial marks the UK’s first class-action-style lawsuit against a tech giant under its evolving legal framework. Similar cases against Google, Meta, and Amazon are in progress, including a $1.1 billion lawsuit against Google over Play Store fees scheduled for later this year. The trial is expected to last seven weeks, with testimony from Apple’s CFO anticipated soon.

OpenAI calls for stronger US AI investment to outpace China

OpenAI has called for increased US investment and supportive regulations to ensure leadership in AI development and prevent China from gaining dominance in the sector. Its ‘Economic Blueprint’ outlines the need for strategic policies around AI resources, including chips, data, and energy.

The document highlights the risk of $175 billion in global funds shifting to China-backed projects if the US fails to attract those investments. OpenAI also proposed stricter export controls on AI models to prevent misuse by adversarial nations and protect national security.

CEO Sam Altman, who contributed $1 million to President-elect Donald Trump’s inaugural fund, seeks stronger ties with the incoming administration, which includes former PayPal executive David Sacks as AI and crypto czar. The company will host an event in Washington DC this month to promote its proposals.

Microsoft-backed OpenAI continues to seek further investment after raising $6.6 billion last year. The startup plans to transform into a for-profit entity to secure additional funding necessary for competing in the expensive AI race.

Synopsys gets EC approval for $35b Ansys acquisition

Synopsys has secured conditional approval from the European Commission for its $35 billion acquisition of simulation software company Ansys. The deal, aimed at merging Synopsys’ semiconductor design expertise with Ansys’ simulation capabilities, promises to enhance solutions for complex chip and system creation. However, the acquisition is still awaiting regulatory approval in the UK and the US.

To address competition concerns, both companies have agreed to divest key business units. Synopsys will sell its Optical Solutions Group to Keysight Technologies, while Ansys will part with its PowerArtist tool, both of which are critical for tech industries like augmented reality and autonomous vehicles. These divestitures are intended to preserve healthy competition in crucial technology markets.

The deal is expected to close by mid-2025, pending final approvals and the completion of the divestments.

US tightens AI chip export rules to maintain edge over China

The US government has announced new restrictions on exporting AI chips and technology, seeking to safeguard its dominance in AI development while limiting China’s access to advanced computing capabilities. The regulations, unveiled during the final days of President Biden’s administration, impose strict caps on AI chip exports to most countries, with exemptions for close allies such as Japan, the UK, and South Korea. Countries like China, Russia, Iran, and North Korea remain barred from accessing this critical technology.

Commerce Secretary Gina Raimondo emphasised the importance of maintaining US leadership in AI to support national security and economic interests. The regulations, which build on a four-year effort to block China’s acquisition of advanced chips, also close existing loopholes and enforce tighter controls. New limits target advanced graphics processing units (GPUs), essential for training AI models, and introduce worldwide licensing requirements for cutting-edge AI technologies. Major cloud providers like Microsoft and Amazon will face new authorisation processes to establish data centres globally under stringent conditions.

Industry leaders, including Nvidia, have expressed concerns over the broad scope of the rules, warning of potential harm to innovation and market dynamics. Nvidia called the restrictions an “overreach,” while Oracle cautioned that the measures could inadvertently benefit Chinese competitors. Despite this criticism, US officials argue the rules are vital for maintaining a competitive edge, given AI’s transformative potential in sectors like healthcare, cybersecurity, and defence. China’s Commerce Ministry condemned the move, vowing to protect its interests in response to the escalating technology standoff.

Indonesia plans social media age restrictions to protect children

Indonesia is preparing to introduce regulations setting a minimum age for social media users, aiming to shield children from potential online risks, according to Communications Minister Meutya Hafid. The announcement follows Australia’s recent ban on social media access for children under 16, which imposes penalties on platforms like Meta’s Facebook and Instagram, as well as TikTok, for non-compliance.

While the specific age limit for Indonesia remains undecided, Minister Hafid stated that President Prabowo Subianto supports the initiative, emphasising the importance of child protection in the digital space. The move highlights concerns about young users’ exposure to inappropriate content and data privacy risks.

Indonesia, with a population of approximately 280 million, has significant internet usage. A recent survey found internet penetration at 79.5%, with nearly half of children under 12 accessing the web, often using platforms like Facebook, Instagram, and TikTok. Among “Gen Z” users aged 12 to 27, internet penetration reached 87%. The proposed regulation reflects growing global efforts to prioritise child safety online.

UK launches probe into Google’s search practices

Britain’s antitrust regulator, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search operations to assess their impact on consumers, businesses, and competition. With Google handling 90% of UK online searches and supporting over 200,000 businesses through advertising, the CMA aims to ensure fair competition and innovation in search services, said CMA chief Sarah Cardell.

The probe will evaluate whether Google’s dominant position restricts market entry and innovation, as well as whether it provides preferential treatment to its own services. The CMA will also investigate the company’s extensive collection and use of consumer data, including its role in AI services. The findings, expected within nine months, could lead to measures such as requiring Google to share data with rivals or giving publishers more control over their content.

Google has defended its role, stating that its search services foster innovation and help UK businesses grow. The company pledged to work constructively with the CMA to create rules that benefit both businesses and users. The investigation follows similar scrutiny in the US, where prosecutors have pushed for major reforms to curb Google’s dominance in online search.