Google and Meta under European scrutiny over teen ad partnership

European regulators are investigating a previously undisclosed advertising partnership between Google and Meta that targeted teenagers on YouTube and Instagram, the Financial Times reports. The now-cancelled initiative aimed at promoting Instagram to users aged 13 to 17 allegedly bypassed Google’s policies restricting ad personalisation for minors.

The partnership, initially launched in the US with plans for global expansion, has drawn the attention of the European Commission, which has requested extensive internal records from Google, including emails and presentations, to evaluate potential violations. Google, defending its practices, stated that its safeguards for minors remain industry-leading and emphasised recent internal training to reinforce policy compliance.

This inquiry comes amid heightened concerns about the impact of social media on young users. Earlier this year, Meta introduced enhanced privacy features for teenagers on Instagram, reflecting the growing demand for stricter online protections for minors. Neither Meta nor the European Commission has commented on the investigation so far.

New acquisition expands Automattic’s AI efforts in WordPress

Automattic, the company behind WordPress, announced its acquisition of WPAI, a startup specialising in AI tools for WordPress. WPAI’s offerings include CodeWP, a tool for creating plugins using AI, and AgentWP, an AI assistant for site builders. While these tools will be discontinued in their current form, Automattic plans to integrate their capabilities into its own suite of products.

The founding team of WPAI will join Automattic to spearhead AI initiatives within the WordPress ecosystem. According to Automattic, their efforts will focus on creating new AI-driven solutions to simplify development, enhance website management, and improve user experience all while staying true to WordPress’s open-source values.

This acquisition comes on the heels of Automattic’s recent purchase of Harper, a Grammarly competitor for developers. Together, these moves highlight Automattic’s growing investment in AI technologies to streamline content creation and site functionality for its millions of users worldwide. Financial details of the WPAI deal were not disclosed.

WPAI has expressed a commitment to advancing AI standards for WordPress and collaborating closely with the community to ensure thoughtful and innovative implementation. These developments could redefine how developers and users interact with WordPress, making the platform even more accessible and efficient.

OpenAI expands AI tools with text-to-video feature

OpenAI has launched its text-to-video AI model, Sora, to ChatGPT Plus and Pro users, signalling a broader push into multimodal AI technologies. Initially limited to safety testers, Sora is now available as Sora Turbo at no additional cost, allowing users to create videos up to 20 seconds long in various resolutions and aspect ratios.

The move positions OpenAI to compete with similar tools from Meta, Google, and Stability AI. While the model is accessible in most regions, it remains unavailable in EU countries, the UK, and Switzerland due to regulatory considerations. OpenAI plans to introduce tailored pricing options for Sora next year.

The company emphasised safeguards against misuse, such as blocking harmful content like child exploitation and deepfake abuse. It also plans to gradually expand features, including uploads of people, as it enhances protections. Sora marks another step in OpenAI’s efforts to innovate responsibly in the AI space.

Meta faces legal battle over dismissal of Kenyan moderators

Content moderators in Kenya are suing Meta and its former contractor, Sama, for wrongful dismissal and blacklisting after attempting to unionise. The moderators allege they were excluded from reapplying for similar roles when Meta transitioned to a new contractor, Majorel. This legal dispute sheds light on challenges faced by moderators, particularly those focusing on Ethiopia, who say they received death threats from the Oromo Liberation Army (OLA) for removing violent posts but were ignored by their employer.

According to court filings, the moderators accuse Sama of initially dismissing their complaints, accusing them of fabricating the threats. One moderator, publicly identified by the rebels, was eventually sent to a safe house. The OLA reportedly warned moderators to stop deleting their graphic posts, escalating the atmosphere of fear among employees. Moderators claim Meta failed to address hate speech effectively, leaving them in a constant cycle of reviewing harmful content that did not breach Meta’s policies.

The case also highlights broader concerns over how Meta manages its global network of moderators tasked with handling violent and graphic content. This comes amid separate allegations that Meta allowed violent and hateful posts to proliferate during Ethiopia’s civil conflict, worsening tensions. Out-of-court settlement talks failed last year, and the legal outcomes could shape how content moderation is approached worldwide.

Meta and Sama have refrained from commenting on the latest allegations, while the OLA did not respond to requests. As the trial unfolds, it raises critical questions about accountability and workplace protections for moderators operating in volatile regions.

China probes Nvidia amid escalating tech tensions

China has launched an anti-monopoly investigation into US chipmaker Nvidia, citing possible violations linked to its acquisition of Mellanox Technologies in 2020. The move is widely seen as retaliation against recent US restrictions on China’s semiconductor sector, including curbs on advanced chip exports.

Nvidia, which dominates China’s AI chip market, is accused of breaching conditions tied to the Mellanox deal, such as fair trade requirements and restrictions on bundling products. The probe comes amid heightened trade tensions, with Beijing encouraging local companies to avoid US chips and Washington tightening export controls on critical semiconductor technologies.

Analysts suggest the investigation is unlikely to significantly impact Nvidia in the near term, as its most advanced chips are already restricted from sale in China. However, the company faces growing competition from domestic firms like Huawei. China accounted for 17% of Nvidia’s revenue last year, down from 26% two years prior, as US-China tech conflicts continue to reshape the global semiconductor landscape.

TikTok seeks emergency block to prevent US ban

TikTok and its parent company, ByteDance, have filed an emergency motion with a federal appeals court to temporarily halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that without the delay, the popular app could shut down in the US, affecting 170 million monthly users and numerous businesses reliant on the platform.

The motion follows a decision by an appeals court panel upholding the divestment requirement. TikTok’s lawyers assert the Supreme Court should have time to review the case and highlight President-elect Donald Trump’s stated intention to prevent the ban. The incoming administration, they argue, could reconsider the law and render the case moot.

The law granting the US government authority to ban foreign-owned apps over data security concerns has faced criticism, with TikTok warning the decision could disrupt services globally. As the January deadline looms, ByteDance faces challenges in demonstrating sufficient progress toward a divestment to secure an extension, even as political and legal battles intensify.

Google challenges US order for payment service supervision

The United States Consumer Financial Protection Bureau (CFPB) announced on Friday it will subject Google Payment Corp., Alphabet‘s payment arm, to federal oversight, citing potential risks to consumers. The move follows complaints involving fraud and unauthorised transactions, although the agency stopped short of alleging direct misconduct.

Google has filed a lawsuit challenging the order, arguing that the service in question is no longer active and poses no risk. The CFPB, however, maintains its authority to regulate even discontinued services if they posed prior risks.

The announcement comes as the Biden administration intensifies regulation of tech-driven financial services, seeking parity with traditional banks. Last month, the CFPB finalised rules extending banking supervision to tech firms offering payment and digital wallet services, a move opposed by Republican lawmakers.

With Biden leaving office and President-elect Trump set to return, the decision may face political challenges. Google’s case highlights the broader conflict between Silicon Valley and federal regulators over financial innovation.

Senators accuse FanDuel and DraftKings of anti-competitive behavior

Sens. Mike Lee (R-Utah) and Peter Welch (D-Vt.) are calling for an investigation into potential antitrust violations by FanDuel and DraftKings. In a joint letter to the Federal Trade Commission (FTC) and the US Department of Justice, the lawmakers accused the two sports betting giants of collaborating to suppress competition in the online sports betting market. The issue centres around their 2016 merger attempt, which was blocked by the FTC due to concerns about market dominance.

Since the merger was scrapped, Lee and Welch argue that FanDuel and DraftKings have used their dominance in fantasy sports to stifle smaller competitors in the online betting space. They claim that the companies, through the Sports Betting Alliance trade group, have intimidated rivals, blocked access to technology, and undermined marketing opportunities, which could harm innovation and prevent new players from entering the market.

FanDuel and DraftKings have not publicly commented on the allegations, and the Justice Department has acknowledged receipt of the letter but has not provided further details. The news has caused a drop in DraftKings’ stock, with Sen. Lee highlighting the potential societal impacts of the companies’ actions.

Google’s AI advances weather forecasting

Google’s DeepMind has introduced GenCast, a cutting-edge AI weather prediction model that outperforms the European Centre for Medium-Range Weather Forecasts’ (ECMWF) ENS, widely regarded as the global leader in operational forecasting. A study in Nature highlighted GenCast’s superior accuracy, predicting weather more effectively 97.2% of the time during a comparative analysis of 2019 data.

Unlike earlier deterministic models, GenCast creates a complex probability distribution of potential weather scenarios by generating 50 or more forecasts per instance. This ensemble approach provides a nuanced understanding of weather trajectories, elevating predictive reliability.

Google is integrating GenCast into its platforms like Search and Maps, while also planning to make real-time and historical AI powered forecasts accessible for public and research use. With this advancement, the tech giant aims to revolutionise weather forecasting and its applications worldwide.

Holiday shopping boosts TikTok Shop in the US

TikTok Shop has experienced remarkable growth during the holiday shopping season in the US, with consumers flocking to the platform for deals. Launched in September 2023, it has quickly emerged as a major player in e-commerce, offering merchandise from top brands like e.l.f. Cosmetics and Ninja Kitchen. According to the platform, sales reached $100 million on Black Friday alone, driven by increased adoption among its 170 million US users.

Merchants and influencers have embraced TikTok Shop’s unique model, which combines advertising and live shopping streams. The number of live sessions hosted monthly has nearly tripled in the past year, showcasing products that appeal to buyers through targeted content. Some shoppers have noted faster delivery times compared to Amazon, enhancing TikTok’s competitive edge.

The platform’s success comes as its parent company, ByteDance, faces a looming divestiture mandate in the US to avoid a ban. Analysts suggest such a move could significantly impact TikTok Shop, which has become a vital revenue stream for many brands. Marketing experts describe it as an irreplaceable channel that is excelling in connecting shoppers with tailored content.

Competition remains intense with rivals like Shein and Temu, which also target US consumers with low-cost goods. TikTok Shop continues to gain market share, buoyed by its ability to curate personalised shopping experiences and capitalise on the social media platform’s immense popularity.