Microsoft is restructuring its retail strategy in mainland China, consolidating its retail channels amid reports of closing its network of authorised physical retailers. The tech giant did not confirm the closures or specify the number of stores affected but emphasised the need to adapt to changing customer needs.
Microsoft assured its products would remain available in China through retail partners and its website despite not operating physical stores directly in the region. However, the company did not detail which partners would continue to stock its products.
The change of strategy reflects Microsoft’s ongoing efforts to optimise its retail strategy in one of the world’s largest markets, ensuring accessibility and customer satisfaction through diverse channels, despite diplomatic and political challenges and restrictions.
Amazon has recently hired the co-founders and several team members from AI startup Adept in a strategic move to bolster its AI capabilities. Adept’s CEO David Luan and other key employees have joined Amazon. At the same time, the startup will continue to operate independently, with Amazon paying a licensing fee to use some of its technology to automate business functions.
The recruitment is similar to Microsoft’s earlier hiring of Inflection AI’s team, which has drawn regulatory scrutiny. Adept, valued at over $1 billion, has already named a new CEO. Amazon’s recruitment of Adept’s team signals its ambition to advance AI agent tools, an area of focus for major tech labs. The company is also working to update its Alexa voice assistant with generative AI for more complex and responsive interactions.
At Amazon, Luan and others will report to Rohit Prasad, who leads the company’s artificial general intelligence efforts. Previously head of Alexa, Prasad has integrated researchers across Amazon to enhance AI model training. He stated that these new hires will significantly contribute to Amazon’s pursuit of achieving AGI.
The Bahamas, the first country to issue a central bank digital currency (CBDC) with its ‘Sand Dollar’ in 2020, is now preparing regulations to mandate commercial banks to provide access to the digital currency to boost its adoption. Central Bank Governor John Rolle emphasised the need for commercial banks to distribute the Sand Dollar, as current uptake remains limited. He indicated that regulations should be in place within two years to ensure all commercial banks offer their clients access to the CBDC.
Despite being a pioneer, the Sand Dollar accounts for less than 1% of the Bahamas’ currency in circulation, with a significant drop in wallet top-ups from $49.8 million to $12 million in a year. The low adoption mirrors the experiences of countries like Nigeria and Jamaica, which have also seen minimal usage of their CBDCs. Critics argue that CBDCs still need to offer clear advantages over existing payment methods and raise concerns about potential government surveillance.
Rolle believes that mandating banks to integrate the Sand Dollar into their systems will enhance its usage but recognises that the real challenge is encouraging more businesses to accept it as a payment method. Unlike India, which offers financial incentives for using its e-rupee, or Israel, which is considering interest rates on CBDC wallets, the Bahamas does not plan to offer such incentives for the Sand Dollar.
Sony Group has ventured into the cryptocurrency trading platform sector by acquiring Amber Japan. That move signifies a strategic expansion for Sony, a conglomerate with a market value surpassing $100 billion and a diverse portfolio that includes gaming, music, and cameras.
Amber Japan was established earlier this year when Singapore-based market maker Amber Group acquired the regulated Japanese cryptocurrency trading platform DeCurret. The rebranding to Amber Japan followed this acquisition, marking Amber Group’s significant footprint in the Japanese market.
In February 2022, Amber Group secured $200 million in a financing round, reaching a valuation of $3 billion. That funding round saw investments from prominent firms such as Temasek, Sequoia China, Pantera Capital, and Tiger Global Management, highlighting strong investor confidence in the company’s growth and potential.
EU antitrust regulators scrutinise Microsoft’s partnership with OpenAI and Google’s AI deal with Samsung due to concerns over exclusivity clauses. Competition chief Margrethe Vestager plans to gather more third-party views. This development comes amid global unease about Big Tech’s dominance in new technologies.
After sending questionnaires to tech firms regarding their AI partnerships, Vestager now seeks additional information about Microsoft’s $13 billion investment in OpenAI’s for-profit subsidiary, which would result in a 49% stake, to determine if it harms competitors.
📢 For now, we conclude that @Microsoft has not acquired control of @OpenAI under 🇪🇺 Merger Regulation.
We will keep monitoring the relationships between all key players in the AI sector, incl. Microsoft & OpenAI.
While Microsoft’s deal isn’t subject to EU merger rules, Vestager also investigates if Big Tech is blocking smaller AI developers from accessing users and businesses. Similar concerns apply to Google’s agreement to pre-install its Gemini Nano model on Samsung devices.
Vestager also examines ‘acqui-hires,’ where companies acquire others primarily for their talent, such as Microsoft’s $650-million acquisition of Inflection, to ensure these practices don’t bypass merger control rules and lead to market concentration.
Why does it matter?
Reuters reported in April that the EU regulators were building a case that could lead to an antitrust investigation into Microsoft’s $13 billion investment in OpenAI. Partnerships involving Alphabet, Amazon, and Anthropic are also under scrutiny from antitrust enforcers on both sides of the Atlantic.
In a decision issued on 28 June 2024, a US federal judge authorised most of the US Securities and Exchange Commission (SEC) lawsuit against leading cryptocurrency exchange Binance. The origin of the lawsuit can be traced back to June 2023, when the SEC alleged that Binance and its CEO, Zhao, had manipulated the market, misused customer funds, non-complied with US customer restrictions, and misrepresented investors on their market surveillance controls.
Binance was also accused of enabling trades of crypto tokens, which were classified as unregistered securities by the SEC. For Binance, this ruling compounds its challenges following its recent $4.2 billion settlement with the Department of Justice and the Commodity Futures Trading Commission over financial misconduct.
However, the verdict partially favours the cryptocurrency industry as the judge invoked a previous ruling, stating that the SEC failed to prove that secondary sales of Binance’s tokens (those sold by sellers other than Binance on exchanges) should be classified as securities.
Why does this matter?
The following case reflects a broader regulatory trend directed to major crypto firms, such as Coinbase, Kraken, and Consensys, in an attempt to increase oversight of the cryptocurrency sector.
The European Union has directed Chinese fast-fashion e-commerce giants Temu and Shein to disclose their compliance with EU online content regulations by July 12. This move follows complaints lodged by consumer groups and designates both platforms as Very Large Online Platforms under the Digital Services Act. These designations impose stricter obligations on handling illegal and harmful content.
According to the European Commission, requests for information have been issued to Temu and Shein regarding their measures to combat illegal products, prevent user deception through manipulative interfaces, and safeguard minors. The Commission also seeks transparency in their recommendation systems, traceability of sellers, and compliance integration into platform design.
The enforcement action stems from consumer organisations’ complaints and underscores the EU’s commitment to ensuring digital platforms uphold regulatory standards. Failure to comply with the Digital Services Act could lead to fines of up to 6% of a company’s global turnover, emphasising the seriousness with which the EU views adherence to online content rules.
Temu and Shein are mandated to furnish comprehensive responses by the specified deadline, marking a pivotal moment in how global e-commerce giants navigate regulatory landscapes beyond their home markets. The outcome of these disclosures will be closely monitored as the EU continues to assert its regulatory authority over digital platforms operating within its jurisdiction.
Small businesses in the United States increasingly turn to AI to improve their operations, although many encounter significant challenges during implementation. According to research conducted by Morning Consult on behalf of Visa, 52% of small businesses have already integrated AI, and an additional 50% plan to do so within the next two years.
Despite these advancements, 90% of businesses face obstacles in adopting AI, citing difficulties such as understanding how to use AI tools (47%), navigating various options (36%), and concerns regarding compatibility and security (31% and 26%, respectively). The study also identifies marketing as the most promising area for AI adoption among businesses not currently using AI, indicating widespread optimism about AI’s potential to increase efficiency and generate revenue.
Denise Press, Visa’s head of small business for North America, emphasised the dual challenge of acknowledging AI’s importance while grappling with the practicalities of implementation. She recommends that businesses begin with low-risk AI applications, such as automating tasks like drafting press releases, to become familiar with the technology’s advantages.
Why does it matter?
There is a collective encouragement for small businesses to cautiously and optimistically embrace AI, utilising partnerships and expertise from vendors to navigate these transformative technologies effectively. However, the challenges highlighted—such as learning curves, security concerns, and navigating options—underscore the need for tailored support and guidance.
According to India‘s markets regulator, Infosys CEO Salil Parekh has settled charges related to insufficient internal controls to prevent insider trading during a 2020 contract. Parekh agreed to pay approximately $30,000 to settle the charge, which stemmed from a contract where Infosys provided a cloud-based record-keeping platform to US financial firm Vanguard.
The Securities and Exchange Board of India (SEBI) stated that Infosys failed to recognise certain unpublished price-sensitive information (UPSI) as such. Though SEBI did not specify the information, it held Parekh accountable for the lapse. In response, Infosys has implemented an internal policy to identify UPSI and now seeks approval from the board and audit committee for such information.
Additionally, Infosys has started breaking down the total contract value of deals into average revenue per annum for comparison with its annual revenue. The initiative aims to enhance transparency and prevent future lapses in internal controls.
Bearing AI has unveiled an enhanced Deployment Planner tailored for tramp shipping companies following the success of its liner shipping version. Unlike liners, tramp operators manage one-off contracts between ports, posing challenges for emissions optimisation and profitability.
The latest tool leverages advanced AI to analyse extensive historical and real-time data, offering actionable insights into critical operational issues. It allows chartering, operations, and environmental teams to experiment with vessel deployments, optimising environmental impact and profitability.
Built on robust machine learning models, the Deployment Planner predicts end-of-year performance for every vessel, even those without scheduled contracts. The aforementioned capability provides deep insights into emissions management, enabling tramp operators to achieve superior performance amidst dynamic scheduling.
Kristofer Maanum, Senior Product Leader at Bearing AI, highlighted the tool’s significance for tramp operators, facilitating informed decisions that balance efficiency and sustainability across varied contract scenarios. The Deployment Planner emerges as a crucial asset for managing fleet efficiency, mitigating compliance risks, and optimising operational costs in tramp shipping.
