India’s Competition Commission has rejected Apple’s request to pause an antitrust investigation, clearing the way for the case to progress. The investigation alleges Apple breached competition laws by exploiting its dominant app store position. Apple disputes these claims, arguing its market share in India is minor compared to Android devices.
The controversy began in 2021 when the non-profit Together We Fight Society (TWFS) accused Apple of anti-competitive practices. In August, the commission ordered investigation reports to be recalled, following Apple’s claims of sensitive information being leaked to rivals. Revised reports were issued after redaction disputes, but Apple requested a suspension, citing non-compliance by TWFS.
Regulator in India dismissed Apple’s concerns, calling its request to halt proceedings ‘untenable.’ The commission has now instructed Apple to submit audited financial records for three fiscal years to assess potential penalties. Apple has yet to respond publicly to these developments.
Senior officials at the Competition Commission are reviewing the evidence and will issue a final ruling. The case highlights broader scrutiny of major tech companies’ market behaviour, particularly regarding app store operations and developer relations.
South Korea has become Taiwan’s largest source of trade deficit, surpassing Japan, with a record $18.1 billion deficit in the first 10 months of this year, according to Taiwan’s Ministry of Finance. Integrated circuits account for $12.9 billion, or 71.3%, of the total deficit, driven by South Korea’s dominance in memory chip production and its role in the AI supply chain.
South Korea’s SK hynix, the second-largest memory chip maker, has partnered with Taiwan’s TSMC to produce advanced HBM chips for AI leader NVIDIA, underscoring the countries’ intertwined roles in the tech industry. Taiwan relies on South Korea for DRAM, a key component in packaging and integrating AI technologies, further fueling the deficit.
Trade between the two nations remains robust, with South Korea ranking as Taiwan’s fifth-largest export market and fourth-largest import source. Both export-oriented economies share overlapping industrial structures, particularly in electronics, highlighting their competition and collaboration within global supply chains.
The European Commission has closed its antitrust investigation into Apple’s e-book and audiobook practices after the original complaint was withdrawn, TechCrunch reported. The probe, launched in 2020, examined Apple’s in-app payment rules and its restrictions on third-party developers informing users about alternative payment methods.
This inquiry followed a similar case involving music-streaming apps, which led to a $2 billion fine against Apple earlier this year after Spotify alleged unfair competition. Despite the closure of the e-book case, the Commission clarified that this does not mean Apple’s practices comply with EU competition laws.
The investigation’s conclusion underscores the EU’s ongoing efforts to regulate tech giants and ensure a fair digital marketplace, with Apple remaining a focal point of scrutiny.
The US government is expected to reduce Intel Corp‘s preliminary $8.5 billion federal chips grant to less than $8 billion, according to a report by The New York Times. The decision reflects Intel’s recent $3 billion contract to produce chips for the Pentagon, unnamed sources said.
Earlier this year, the Biden administration announced nearly $20 billion in grants and loans for Intel to expand its semiconductor manufacturing capabilities. The funding, part of the 2022 CHIPS and Science Act, supports building two new factories in Arizona and modernising an existing one.
The CHIPS Act allocated $52.7 billion to bolster US semiconductor production, including $39 billion for subsidies and $11 billion for research and development, as part of a national push to strengthen domestic chip manufacturing and reduce reliance on foreign supply chains.
French IT giant Atos has entered discussions with the government for a potential €500 million ($524 million) acquisition of its advanced computing division. Known for its crucial role in securing communications for the French military and manufacturing supercomputer servers, Atos is restructuring to address its mounting debt. The government has prioritised retaining control over the company’s strategic technology assets to safeguard national interests.
The proposed deal includes an initial payment of €150 million upon signing, expected before the exclusivity period ends on May 31. The offer could rise to €625 million with performance-based earn-outs. French Finance Minister Antoine Armand emphasised the state’s duty to ensure the survival and development of industries critical to national sovereignty. Atos’ advanced computing and cybersecurity unit, employing 4,000 people and generating €900 million annually, is seen as a vital asset.
As part of its restructuring, Atos announced plans to sell its cybersecurity unit’s Critical Systems and Cyber Products. With this deal factored in, the company forecasts its financial leverage for 2027 to be between 1.8 and 2.1 times core earnings. Meanwhile, France‘s parliament is considering an amendment that could pave the way for Atos’ nationalisation, underscoring the government’s commitment to protecting key technologies.
YouTube Shorts has rolled out a new capability in its Dream Screen feature, enabling users to create AI-generated video backgrounds. Previously limited to image generation, this update harnesses Google DeepMind’s AI video-generation model, Veo, to produce 1080p cinematic-style video clips. Creators can enter text prompts, such as ‘magical forest’ or ‘candy landscape,’ select an animation style, and receive a selection of dynamic video backdrops.
Once a background is chosen, users can film their Shorts with the AI-generated video playing behind them. This feature offers creators unique storytelling opportunities, such as setting videos in imaginative scenes or crafting engaging animated openings. In future updates, YouTube plans to let users generate stand-alone six-second video clips using Dream Screen.
The feature, available in the US, Canada, Australia, and New Zealand, distinguishes YouTube Shorts from TikTok, which currently only offers AI-generated background images. By providing tools for creating custom video backdrops, YouTube aims to cement its position as a leader in short-form video innovation.
KPMG has committed $100 million over the next four years to enhance its enterprise AI services through collaboration with Google Cloud. The investment will focus on developing AI tools, training employees, and leveraging Google’s technology to scale AI solutions for clients.
Steve Chase, KPMG’s vice chair for AI and innovation, highlighted that enterprise demand for AI has surged, with many businesses planning substantial investments in the technology. KPMG’s partnership with Google aligns with a broader strategy to expand AI services across multiple cloud platforms, including a prior $2 billion collaboration with Microsoft.
Google Cloud‘s president of revenue, Matt Renner, noted the rapid growth in cloud services, emphasising the synergy between cloud providers and consulting firms as a key driver for future industry expansion.
Brazil’s banking sector saw significant profitability improvements in the first half of 2024, led by digital lenders. The central bank’s Financial Stability Report revealed a rise in return on equity (ROE) to 15.11% by June, up from 14.23% at the end of 2023. Digital banks outperformed, achieving a ROE of 19.1%, a sharp jump from 11.45% six months earlier. These gains reflect operational efficiency and reduced provisioning costs.
Institutions like Nubank, Banco Inter, and C6 Bank played a pivotal role in driving digital banking success. Improved credit models and monetisation strategies have helped digital banks outperform traditional lenders, according to the central bank. Years of fostering innovation and competition in the sector have paid off, ensuring digital players maintain robust operational frameworks.
Upcoming regulatory changes in January aim to align financial accounting standards with global norms. The central bank expects provisions to increase by approximately 38 billion reais, though this adjustment will not impact profits or credit issuance. Only a small number of banks have voiced concerns, with the central bank committing to case-by-case support during the transition.
Brazil’s central bank anticipates continued profitability growth across the sector. Aided by stable provisioning costs and effective expense controls, lenders are well-positioned to sustain revenue expansion. Discussions are also underway to explore fresh funding mechanisms for real estate and potential adjustments to reserve requirements.
As the US prepares for Donald Trump’s second term, China is significantly increasing its semiconductor imports from the US, anticipating potential sanctions. In October, China imported $1.11 billion worth of microchips, a 60% rise from the previous year, and has already imported $9.61 billion in the first ten months of 2024, marking a 42.5% year-on-year increase. This surge reflects China’s growing demand for US semiconductors, particularly CPU-based processors and chips for storage and signal amplification, which align with its AI ambitions.
Despite these imports, China faces hurdles in advancing its chip technology. US sanctions have crippled Huawei’s ability to develop competitive AI chips, with the company’s upcoming processors lagging years behind NVIDIA’s offerings. This setback is largely due to restrictions on access to advanced lithography equipment, such as ASML’s EUV tools, essential for creating cutting-edge chips.
Meanwhile, China has been ramping up its chip manufacturing efforts, investing $25 billion in equipment in the first half of 2024, surpassing spending by Korea, Taiwan, and the US. However, as one-third of global semiconductor demand, China’s position remains critical for the industry. The impact of Trump’s potential tech restrictions, whether broad or selective, will likely influence the global semiconductor market, requiring careful balancing of US production and Chinese demand.
Amazon is likely to face an EU investigation next year into allegations that it favours its own brand products on its online marketplace, according to sources familiar with the matter. If found in violation of the EU’s Digital Markets Act (DMA), Amazon could face a fine of up to 10% of its global revenue.
The potential investigation will be overseen by Teresa Ribera, the incoming EU antitrust chief, who will take office next month. Amazon has denied any wrongdoing, stating it complies with the DMA and treats all products equally in its ranking algorithms. The company has been in ongoing discussions with the European Commission about its practices.
The DMA, implemented last year, aims to curb the dominance of Big Tech by prohibiting preferential treatment of their products and services. Alongside Amazon, other tech giants such as Apple, Google, and Meta are also under scrutiny. Amazon shares fell 3% following reports of the possible investigation.
