Digital standards

Meta bets on smartglasses to lead future tech

Mark Zuckerberg is boldly pushing to replace the smartphone with smartglasses powered by superintelligent AI. The Meta CEO described a future where wearable devices replace phones, using sight and sound to assist users throughout the day.

Meta is heavily investing, offering up to $100 million to attract top AI talent. Zuckerberg’s idea of ‘personal superintelligence’ merges AI and hardware to offer personalised help and build an Apple-style ecosystem under Meta’s control.

The company’s smartglasses already feature cameras, microphones and speakers, and future models could include built-in screens and AI-generated interfaces.

Other major players are also chasing the next computing shift. Amazon is acquiring a startup that builds AI wearables, while OpenAI’s Sam Altman and former Apple designer Jony Ive are working on a new physical AI device.

These efforts all point to a changing landscape in which mobile screens might no longer dominate.

Apple CEO Tim Cook responded by defending the iPhone’s central role in modern life, though he acknowledged complementary technologies may emerge. While Apple remains dominant, Meta’s advances signal that the competition to define the next computing platform is wide open.

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US court mandates Android app competition, loosens billing rules

Long-standing dominance over Android app distribution has been declared illegal by the Ninth Circuit Court of Appeals, reinforcing a prior jury verdict in favour of Epic Games. Google now faces an injunction that compels it to allow rival app stores and alternative billing systems inside the Google Play Store ecosystem for a three-year period ending November 2027.

A technical committee jointly selected by Epic and Google will oversee sensitive implementation tasks, including granting competitors approved access to Google’s expansive app catalogue while ensuring minimal security risk. The order also requires that developers not be tied to Google’s billing system for in-app purchases.

Market analysts warn that reduced dependency on Play Store exclusivity and the option to use alternative payment processors could cut Google’s app revenue by as much as $1 to $1.5 billion annually. Despite brand recognition, developers and consumers may shift toward lower-cost alternatives competing on platform flexibility.

While the ruling aims to restore competition, Google maintains it is appealing and has requested additional delays to avoid rapid structural changes. Proponents, including Microsoft, regulators, and Epic Games, hail the decision as a landmark step toward fairer mobile market access.

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Project Crypto to simplify crypto regulations in the US

The US Securities and Exchange Commission has introduced ‘Project Crypto,’ a Commission-wide effort to update securities regulations and establish America as the world’s leading crypto market.

The announcement was made by SEC Chair Paul Atkins at the America First Policy Institute in Washington D.C. on 31 July. Atkins highlighted the rapid evolution of financial markets and stressed the need for the US to take a proactive role in the crypto revolution.

Project Crypto builds on recommendations from the President’s Working Group on Digital Asset Markets, focusing on clear rules for crypto custody, trading, and distribution.

The initiative marks a significant change in SEC policy, moving away from the strict enforcement tactics of the previous administration under Gary Gensler. Recent months saw the SEC drop lawsuits and ease probes, signalling support for innovation and urging crypto firms back to the US.

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Cybersecurity sector sees busy July for mergers

July witnessed a significant surge in cybersecurity mergers and acquisitions (M&A), spearheaded by Palo Alto Networks’ announcement of its definitive agreement to acquire identity security firm CyberArk for an estimated $25 billion.

The transaction, set to be the second-largest cybersecurity acquisition on record, signals Palo Alto’s strategic entry into identity security.

Beyond this significant deal, Palo Alto Networks also completed its purchase of AI security specialist Protect AI. The month saw widespread activity across the sector, including LevelBlue’s acquisition of Trustwave to create the industry’s largest pureplay managed security services provider.

Zurich Insurance Group, Signicat, Limerston Capital, Darktrace, Orange Cyberdefense, SecurityBridge, Commvault, and Axonius all announced or finalised strategic cybersecurity acquisitions.

The deals highlight a strong market focus on AI security, identity management, and expanding service capabilities across various regions.

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Amazon plans to bring ads to Alexa+ chats

Amazon is exploring ways to insert ads into conversations with its AI assistant Alexa+, according to CEO Andy Jassy. Speaking during the company’s latest earnings call, he described the feature as a potential tool for product discovery and future revenue.

Alexa+ is Amazon’s upgraded digital assistant designed to support more natural, multi-step conversations using generative AI. It is already available to millions of users through Prime subscriptions or as a standalone service.

Jassy said longer interactions open the door for embedded advertising, although the approach has not yet been fully developed. Industry observers see this as part of a wider trend, with companies like Google and OpenAI also weighing ad-based business models.

Alexa+ has received mixed reviews so far, with delays in feature delivery and technical challenges like hallucinations raising concerns. Privacy advocates have warned that ad targeting within personal conversations may worry users, given the data involved.

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Deutsche Bank backs new euro stablecoin launch

A new euro-denominated stablecoin, EURAU, has launched on the Ethereum blockchain, backed by Deutsche Bank’s DWS, Flow Traders, and Mike Novogratz’s Galaxy. The regulated token is issued by AllUnity and complies with Germany’s BaFin and the EU’s MiCA rules.

Bullish Europe, a BaFin-regulated crypto exchange based in Frankfurt, will be the first to list EURAU. The exchange has secured four BaFin licences and is preparing for expansion across the EU under MiCA’s framework.

Key partners supporting EURAU’s launch include crypto custodian BitGo, Metzler Bank, and Fireblocks.

Euro stablecoins currently make up just 0.2% of the $273 billion global stablecoin market but have seen strong growth, increasing by nearly 60% since December 2024. Despite growth, European regulators stay cautious because US dollar stablecoins like Tether’s USDt dominate.

European Central Bank adviser Jürgen Schaaf has emphasised the need for international regulatory coordination to balance stablecoin markets and reduce reliance on the dollar.

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UK universities urged to act fast on AI teaching

UK universities risk losing their competitive edge unless they adopt a clear, forward-looking approach to ΑΙ in teaching. Falling enrolments, limited funding, and outdated digital systems have exposed a lack of AI literacy across many institutions.

As AI skills become essential for today’s workforce, employers increasingly expect graduates to be confident users rather than passive observers.

Many universities continue relying on legacy technology rather than exploring the full potential of modern learning platforms. AI tools can enhance teaching by adapting to individual student needs and helping educators identify learning gaps.

However, few staff have received adequate training, and many universities lack the resources or structure to embed AI into day-to-day teaching effectively.

To close the growing gap between education and the workplace, universities must explore flexible short courses and microcredentials that develop workplace-ready skills.

Introducing ethical standards and data transparency from the start will ensure AI is used responsibly without weakening academic integrity.

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Physicists remain split on what quantum theory really means

One hundred years after its birth, quantum mechanics continues to baffle physicists, despite underpinning many of today’s technologies. While its equations accurately describe the behaviour of subatomic particles, experts remain deeply divided on what those equations actually reveal about reality.

A recent survey by Nature, involving more than 1,100 physicists, highlighted the lack of consensus within the field. Just over a third supported the Copenhagen interpretation, which claims a particle only assumes a definite state once it is observed.

Others favour alternatives like the many worlds theory, which suggests every possible outcome exists in parallel universes rather than collapsing into a single reality. The concept challenges traditional notions of observation, space and causality.

Physicists also remain split on whether there is a boundary between classical and quantum systems. Only a quarter expressed confidence in their chosen interpretation, with most believing a better theory will eventually replace today’s understanding.

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EU AI Act oversight and fines begin this August

A new phase of the EU AI Act takes effect on 2 August, requiring member states to appoint oversight authorities and enforce penalties. While the legislation has been in force for a year, this marks the beginning of real scrutiny for AI providers across Europe.

Under the new provisions, countries must notify the European Commission of which market surveillance authorities will monitor compliance. But many are expected to miss the deadline. Experts warn that without well-resourced and competent regulators, the risks to rights and safety could grow.

The complexity is significant. Member states must align enforcement with other regulations, such as the GDPR and Digital Services Act, raising concerns regarding legal fragmentation and inconsistent application. Some fear a repeat of the patchy enforcement seen under data protection laws.

Companies that violate the EU AI Act could face fines of up to €35 million or 7% of global turnover. Smaller firms may face reduced penalties, but enforcement will vary by country.

Rules regarding general-purpose AI models such as ChatGPT, Gemini, and Grok also take effect. A voluntary Code of Practice introduced in July aims to guide compliance, but only some firms, such as Google and OpenAI, have agreed to sign. Meta has refused, arguing the rules stifle innovation.

Existing AI tools have until 2027 to comply fully, but any launched after 2 August must meet the new requirements immediately. With implementation now underway, the AI Act is shifting from legislation to enforcement.

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China says the US used a Microsoft server vulnerability to launch cyberattacks

China has accused the US of exploiting long-known vulnerabilities in Microsoft Exchange servers to launch cyberattacks on its defence sector, escalating tensions in the ongoing digital arms race between the two superpowers.

In a statement released on Friday, the Cyber Security Association of China claimed that US hackers compromised servers belonging to a significant Chinese military contractor, allegedly maintaining access for nearly a year.

The group did not disclose the name of the affected company.

The accusation is a sharp counterpunch to long-standing US claims that Beijing has orchestrated repeated cyber intrusions using the same Microsoft software. In 2021, Microsoft attributed a wide-scale hack affecting tens of thousands of Exchange servers to Chinese threat actors.

Two years later, another incident compromised the email accounts of senior US officials, prompting a federal review that criticised Microsoft for what it called a ‘cascade of security failures.’

Microsoft, based in Redmond, Washington, has recently disclosed additional intrusions by China-backed groups, including attacks exploiting flaws in its SharePoint platform.

Jon Clay of Trend Micro commented on the tit-for-tat cyber blame game: ‘Every nation carries out offensive cybersecurity operations. Given the latest SharePoint disclosure, this may be China’s way of retaliating publicly.’

Cybersecurity researchers note that Beijing has recently increased its use of public attribution as a geopolitical tactic. Ben Read of Wiz.io pointed out that China now uses cyber accusations to pressure Taiwan and shape global narratives around cybersecurity.

In April, China accused US National Security Agency (NSA) employees of hacking into the Asian Winter Games in Harbin, targeting personal data of athletes and organisers.

While the US frequently names alleged Chinese hackers and pursues legal action against them, China has historically avoided levelling public allegations against American intelligence agencies, until now.

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