E-commerce and trade Archives | Page 119 of 199

US drops AI investment proposal against Google

The US Department of Justice (DOJ) has decided to drop its earlier proposal to force Alphabet, Google’s parent company, to sell its investments in AI companies, including its stake in Anthropic, a rival to OpenAI.

The proposal was originally included in a wider initiative to boost competition in the online search market. The DOJ now argues that restricting Google’s AI investments might lead to unintended consequences in the rapidly changing AI sector.

While this move represents a shift in the government’s approach, the DOJ and 38 state attorneys general are continuing their antitrust case against Google. They argue that Google holds an illegal monopoly in the search market and is distorting competition.

The government’s case includes demands for Google to divest its Chrome browser and implement other measures to foster competition.

Google has strongly opposed these efforts, stating that they would harm consumers, the economy, and national security. The company is also planning to appeal the proposals.

As part of the ongoing scrutiny, the DOJ’s latest proposal mandates that Google notify the government of any future investments in generative AI, a move intended to curb further concentration of power in the sector.

This case is part of a broader wave of antitrust scrutiny facing major tech companies like Google, Apple, and Meta, as US regulators seek to rein in the market dominance of Big Tech.

For more information on these topics, visit diplomacy.edu.

NHS looks into Medefer data flaw after security concerns

NHS is investigating allegations that a software flaw at private medical services company Medefer left patient data vulnerable to hacking.

The flaw, discovered in November, affected Medefer’s internal patient record system in the UK, which handles 1,500 NHS referrals monthly.

A software engineer who found the issue believes the vulnerability may have existed for six years, but Medefer denies this claim, stating no data has been compromised.

The engineer discovered that unprotected application programming interfaces (APIs) could have allowed outsiders to access sensitive patient information.

While Medefer has insisted that there is no evidence of any breach, they have commissioned an external security agency to review their systems. The agency confirmed that no breach was found, and the company asserts that the flaw was fixed within 48 hours of being discovered.

Cybersecurity experts have raised concerns about the potential risks posed by the flaw, emphasising that a proper investigation should have been conducted immediately.

Medefer reported the issue to the Information Commissioner’s Office (ICO) and the Care Quality Commission (CQC), both of which found no further action necessary. However, experts suggest that a more thorough response could have been beneficial given the sensitive nature of the data involved.

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Fast-delivery firms face antitrust scrutiny in India

Fast-delivery giants Zomato, Swiggy, and Zepto are facing an antitrust investigation in India over allegations of deep discounting practices that harm smaller retailers.

The All India Consumer Products Distributors Federation (AICPDF), which represents 400,000 distributors, has filed a case with the Competition Commission of India (CCI) to examine the business practices of these companies.

They claim that the discounting strategies of these platforms result in unfair pricing models that harm traditional retailers.

The quick-commerce sector in India, where products are delivered within minutes from local warehouses, has grown rapidly in recent years. However, this growth has come at the expense of brick-and-mortar stores, which cannot match the discounts offered by online platforms.

A recent survey showed a significant shift in consumer behaviour, with many shoppers reducing their purchases from supermarkets and independent stores due to the appeal of fast-delivery options.

The filing by the AICPDF, which has reviewed the pricing of several popular products, accuses companies like Zepto, Swiggy’s Instamart, and Zomato’s Blinkit of offering products at prices significantly lower than those available in traditional stores.

However, this has raised concerns about the long-term impact on local businesses. The CCI is now set to review the case, which may result in a formal investigation.

As India’s quick-commerce market continues to grow, estimated to reach $35 billion by 2030, the regulatory scrutiny of this sector is intensifying. The outcome of this case could shape the future of the industry, especially as companies like Zepto and Swiggy prepare for further expansion.

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Indonesia approves Apple’s local content certificates

Indonesia has granted local content certificates for 20 Apple products, including the iPhone 16 after the company met requirements for locally-made components.

Apple still needs further approvals from the communications and trade ministries before it can officially sell the devices in the country.

The certification follows Apple’s recent pledge to invest over $300 million in Indonesia, including funding component manufacturing plants and a research and development centre.

Last year, the country had banned iPhone 16 sales due to non-compliance with local content rules.

Industry ministry spokesperson Febri Hendri Antoni Arief confirmed that Apple received certificates for 11 phone models and nine tablets.

However, negotiations had been ‘tricky’, according to Indonesia’s industry minister. Apple remains outside the top five smartphone brands in Indonesia, according to research firm Canalyst.

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Reddit launches new tools to improve user engagement

Reddit has introduced new tools to help users follow community rules and track content performance, aiming to boost engagement on the platform. The update comes after a slowdown in user growth due to Google’s algorithm changes, though traffic from the search engine has since recovered.

Among the new features is a ‘rules check’ tool, currently being tested on smartphones, which helps users comply with subreddit guidelines. Additionally, a post-recovery option allows users to repost content in alternative subreddits if their original submission is removed. Reddit will also suggest subreddits based on post content and clarify posting requirements for specific communities.

The company has enhanced its post insights feature, offering detailed engagement metrics to help users refine their content. This follows Reddit’s December launch of Reddit Answers, an AI-powered search tool designed to provide curated summaries of community discussions, which is still in beta testing.

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Microsoft to boost AI investment in South Africa

Microsoft has announced plans to invest an additional 5.4 billion rand (about $296.81 million) by 2027 to enhance its cloud and AI infrastructure in South Africa.

The investment comes in response to the increasing demand for the company’s Azure services in the region, with a particular focus on meeting the needs of businesses integrating AI technology into their operations.

Brad Smith, Vice Chair and President of Microsoft, revealed the initiative during an event in Johannesburg, confirming that the company would also fund technical certification exams for 50,000 individuals.

These exams will cover crucial digital skills, including cloud architecture, AI, and cybersecurity, aiming to address the shortage of skilled professionals in high-demand sectors.

The new investment builds on Microsoft’s previous spending of 20.4 billion rand to establish South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.

These data centres have become essential hubs for handling the computational demands of AI, as local businesses look to adopt AI-driven solutions.

The company’s broader strategy includes a global commitment to invest around $80 billion in 2025 to further develop data centres and deploy AI and cloud-based applications. South Africa, as a growing tech hub, is expected to play a key role in Microsoft’s plans for the future.

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US House subpoenas Alphabet over content moderation

The US House Judiciary Committee subpoenaed Alphabet on Thursday, demanding information on its communications with the Biden administration regarding content moderation policies. The committee, led by Republican Jim Jordan, also requested similar communications with external companies and groups.

The subpoena specifically seeks details on discussions about restricting or banning content related to US President Donald Trump, Elon Musk, COVID-19, and other conservative topics. Republicans have accused Big Tech companies of suppressing conservative viewpoints, with the Federal Trade Commission warning that coordinating policies or misleading users could breach the law.

Last year, Meta Platforms acknowledged pressure from the Biden administration to censor content, but Alphabet has not publicly distanced itself from similar claims. A Google spokesperson stated the company will demonstrate its independent approach to policy enforcement.

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Malaysia discusses impact of US chip tariffs with companies

Malaysia is engaging with its semiconductor industry to address the potential impact of US tariffs on chips. The US has signalled its intention to impose tariffs of up to 25% on semiconductors, which could significantly affect Malaysia, one of the top exporters of chips to the US Last year, Malaysia shipped $16.2 billion worth of chips, making up nearly 20% of US semiconductor imports.

Trade Minister Tengku Zafrul Aziz said the government is in talks with companies to see if they can absorb the higher costs caused by the tariffs. The discussions are focused on whether consumers or companies will bear the increased expenses. While the government has not yet decided whether it will provide financial support, Malaysia’s strong semiconductor sector, which includes US giants like Intel and GlobalFoundries, remains a critical part of the economy.

Despite concerns over the tariffs, Tengku Zafrul expressed confidence that Malaysia’s data centres would not be affected by new US export restrictions on advanced chips. The country has become a major hub for data centres, attracting investments from companies such as Microsoft, Google, and Amazon. The growth of AI-related demand is expected to drive further expansion, and Tengku Zafrul indicated that the sector’s trajectory is strong enough to absorb any new challenges.

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Google acknowledges AI being used for harmful content

Google has reported receiving over 250 complaints globally about its AI software being used to create deepfake terrorist content, according to Australia’s eSafety Commission.

The tech giant also acknowledged dozens of user reports alleging that its AI program, Gemini, was being exploited to generate child abuse material. Under Australian law, companies must provide regular updates on their efforts to minimise harm or risk hefty fines.

The eSafety Commission described Google’s disclosure as a ‘world-first insight’ into how AI tools may be misused to produce harmful and illegal content.

Between April 2023 and February 2024, Google received 258 reports of suspected AI-generated extremist material and 86 related to child exploitation. However, the company did not specify how many of these reports were verified.

A Google spokesperson stated that the company strictly prohibits AI-generated content related to terrorism, child abuse, and other illegal activities.

While it uses automated detection to remove AI-generated child exploitation material, the same system is not applied to extremist content.

Meanwhile, the regulator has previously fined platforms like X (formerly Twitter) and Telegram for failing to meet reporting requirements, with both companies planning to appeal.

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Singapore expands charges in server fraud case

Singapore authorities have filed additional charges against three men in a widening investigation into server fraud, which may involve AI chips, court documents revealed on Thursday.

The suspects are accused of deceiving tech firms Dell and Super Micro by falsely representing the final destination of the servers they purchased.

Officials have stated the servers could contain Nvidia chips but have not confirmed whether they fall under US export controls.

The case is part of a broader probe involving 22 individuals and companies suspected of fraudulent transactions. US authorities are also investigating whether Chinese AI firm DeepSeek has been using restricted American chips.

Singapore has confirmed that some servers were sent to Malaysia, where authorities are now examining if any laws were violated.

Two suspects, Aaron Woon and Alan Wei, face additional fraud charges, while a third, Li Ming, had his earlier charge updated to include an alleged offence dating back to 2023.

Lawyers representing the men have either declined to comment or stated that the case is complex due to its international scope.

Meanwhile, Singapore police have seized 42 electronic devices and are analysing bank statements as they work with foreign law enforcement to trace the movement of funds.

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