E-commerce and trade Archives | Page 151 of 199

TikTok appeals to Supreme Court to block looming US ban

TikTok and its parent company, ByteDance, have asked the Supreme Court to halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that the law violates the First Amendment, as it targets one of the most widely used social media platforms in the United States, which currently has 170 million American users. A group of TikTok users also submitted a similar request to prevent the shutdown.

The law, passed by Congress in April, reflects concerns over national security. The Justice Department claims TikTok poses a threat due to its access to vast user data and potential for content manipulation by a Chinese-owned company. A lower court in December upheld the law, rejecting TikTok’s argument that it infringes on free speech rights. TikTok maintains that users should be free to decide for themselves whether to use the app and that shutting it down for even a month could cause massive losses in users and advertisers.

With the ban set to take effect the day before President-elect Donald Trump’s inauguration, TikTok has urged the Supreme Court to decide by 6 January. Trump, who once supported banning TikTok, has since reversed his position and expressed willingness to reconsider. The case highlights rising trade tensions between the US and China and could set a precedent for other foreign-owned apps operating in America.

Bitget secures Bitcoin service licence in El Salvador

Bitget has secured a Bitcoin Service Provider licence from El Salvador’s Central Reserve Bank, allowing the platform to offer Bitcoin-to-fiat exchanges, payments, and custody services in the country. This licence is part of Bitget’s strategy to strengthen its global regulatory position and expand its presence in Latin America.

El Salvador, which made Bitcoin legal tender in 2021, has become a hub for cryptocurrency adoption. With this new licence, Bitget aims to tap into the country’s growing crypto market, which serves as a gateway to the wider region. The company is also pursuing a Digital Assets Service Provider licence from El Salvador’s National Commission of Digital Assets to extend its services to other cryptocurrencies.

In addition to its progress in Latin America, Bitget has secured Virtual Asset Service Provider licences in Poland and Lithuania and recently re-entered the UK market through a partnership with Archax. The company also plans to set up a dedicated team in El Salvador to strengthen its local presence.

Challenges and opportunities in Africa’s digital transformation: Data governance and sharing under scrutiny

The ongoing digital transformation across Africa has put data governance and sharing at the forefront of economic growth and innovation. In an Internet Governance Forum session titled ‘Data Without Borders? Navigating Policy Impacts in Africa’, experts emphasised the importance of harmonised data policies to support the African Union’s (AU) Data Policy Framework.

Souhila Amazouz from the African Union Commission highlighted the framework’s principles of transparency and cooperation, while Thelma Quaye of Smart Africa stressed the urgency of aligning national policies to ensure seamless cross-border data flows. Lillian Nalwoga noted the need for robust national data strategies, noting that two-thirds of African countries have data protection laws, though challenges remain in unifying national and continental interests.

The conversation revealed critical hurdles to effective data governance, including gaps in legal frameworks, limited institutional capacities, inadequate infrastructure, and cybersecurity risks. Souhila Amazouz discussed efforts to address these gaps through regional data centres and capacity-building initiatives.

Meanwhile, the concept of data localisation sparked debate. Vincent Olatunji from the Nigeria Data Protection Commission argued for practical data categorisation over full localisation, which Paul Baker (International Economics Consulting Limited) warned could burden businesses with high costs.

The balance between localisation and cross-border data sharing remains a contentious issue, particularly with the African Continental Free Trade Area (AfCFTA) aiming to boost trade and integration across the continent.

The panellists also highlighted the importance of trust and collaboration between governments and businesses. Transparent data practices and inclusive policy development were essential to fostering confidence in data-sharing initiatives. Paul Baker noted the vital role of cross-border data flows for Micro, Small, and Medium Enterprises (MSMEs), though an audience member pointed out that many countries still rely on manual systems, hampering digital progress.

Ultimately, the discussion underscored the need for a unified approach to data governance, with capacity development, infrastructure investment, and multistakeholder collaboration as key priorities. While challenges like the digital divide and data fragmentation persist, the dialogue demonstrated a collective commitment to advancing Africa’s digital transformation through effective data governance strategies.

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.

Société Générale and Banque de France push blockchain innovation

Société Générale has achieved a milestone by conducting the first repo transaction using blockchain within the Eurosystem. The transaction carried out with Banque de France through Société’s digital asset subsidiary Forge, involved tokenised bonds issued on Ethereum in 2020 as collateral. Central bank digital currency (CBDC) issued by Banque de France was exchanged as cash, showcasing the potential of blockchain in modern financial operations.

The move highlights the feasibility of conducting interbank refinancing on-chain. Société Générale stated that using CBDCs for such transactions could improve liquidity for digital financial securities. Tokenisation, which converts traditional securities into digital tokens, offers faster settlement times and an immutable record of transactions, making it a promising technology for the financial sector.

Banque de France has been actively exploring CBDC use cases since 2021, including cross-border transactions and collaborations with global partners like the Hong Kong Monetary Authority. Meanwhile, Société Générale continues to expand its digital asset operations, including launching its euro-denominated stablecoin EUR convertible. The bank’s innovative efforts reflect its position as one of the world’s largest financial institutions.

Digital futures at a crossroads: aligning WSIS and the Global Digital Compact

The path toward a cohesive digital future was the central theme at the ‘From WSIS to GDC: Harmonising Strategies Towards Coordination‘ session held at the Internet Governance Forum (IGF) 2024 in Riyadh. Experts, policymakers, and civil society representatives converged to address how the World Summit on the Information Society (WSIS) framework and the Global Digital Compact (GDC) can work in unison. At the heart of the debate lay two critical imperatives: coordination and avoiding fragmentation.

Panelists, including Jorge Cancio of the Swiss Government and David Fairchild of Canada, underscored the IGF’s central role as a multistakeholder platform for dialogue. However, concerns about its diminishing mandate and inadequate funding surfaced repeatedly. Fairchild warned of ‘a centralisation of digital governance processes,’ hinting at geopolitical forces that could undermine inclusive, global cooperation. Cancio urged an updated ‘Swiss Army knife’ approach to WSIS, where existing mechanisms, like the IGF, are strengthened rather than duplicated.

The session also highlighted emerging challenges since WSIS’s 2005 inception. Amrita Choudhury from MAG and Anita Gurumurthy of IT for Change emphasised that AI, data governance, and widening digital divides demand urgent attention. Gurumurthy lamented that ‘neo-illiberalism,’ characterised by corporate greed and authoritarian politics, threatens the vision of a people-centred information society. Meanwhile, Gitanjali Sah of ITU reaffirmed WSIS’s achievements, pointing to successes like digital inclusion through telecentres and distance learning.

Amid these reflections, the IGF emerged as an essential event for harmonising WSIS and GDC goals. Panellists, including Nigel Cassimire from the Caribbean Telecommunications Union, proposed that the IGF develop performance targets to implement GDC commitments effectively. Yet, as Jason Pielemeier of the Global Network Initiative cautioned, the IGF faces threats of co-optation in settings hostile to open dialogue, which ‘weakens its strength.’

Despite these tensions, hope remained for creative solutions and renewed international solidarity. The session concluded with a call to refocus on WSIS’s original principles—ensuring no one is left behind in the digital future. As Anita Gurumurthy aptly summarised: ‘We reject bad politics and poor economics. What we need is a solidarity vision of interdependence and mutual reciprocity.’

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.

Xiaohongshu redefines China’s e-commerce with a focus on luxury and aspirational products

For eight years, Tera Feng has shared her glamorous Shanghai lifestyle with over 500,000 followers on Chinese social media. Her audience, primarily financially independent urban women, has proven to be a valuable market for high-end and niche brands. In recent months, Feng’s switch to livestream selling on Xiaohongshu, a platform similar to Instagram, has seen her sell products ranging from luxury suits priced at 15,000 yuan ($2,060) to premium rice costing 60 yuan per kilogram.

Xiaohongshu has long been used for lifestyle inspiration but has struggled to find success in e-commerce. As Chinese consumers on other platforms like Taobao and Pinduoduo hunt for discounts, Xiaohongshu attracts a different crowd — users willing to spend on quality and aspiration-driven products. Influencers and brands are embracing this trend, with companies like L’Oreal and Coach launching stores and partnering with livestream hosts to drive sales. These livestreams adopt a relaxed, conversational style, contrasting the aggressive sales tactics on other platforms.

Brands are seeing tangible results. For example, Ms Min, an independent fashion label, experienced a spike in sales after actress Dong Jie featured it in a livestream. Marketing agencies like Magic Advertising, which works with luxury clients like Max Mara and LVMH, are also eyeing Xiaohongshu for growth. While analysts predict the platform’s annual sales could surpass $100 billion by 2025, experts suggest it will remain a niche player compared to China’s e-commerce giants like Tmall and JD.com. Nonetheless, Xiaohongshu’s ability to connect luxury brands with eager, affluent consumers marks it as a growing force in China’s online retail landscape.

The EU to resolve dispute with India over ICT tariffs

The European Union is addressing a trade dispute with India over tariffs on ICT goods, which India has effectively blocked under the World Trade Organization (WTO) by appealing a favourable report for the EU to the non-functional WTO Appellate Body, stalling the resolution process. India has also rejected alternative dispute resolution methods, such as ad hoc appeal arbitration or a mutually agreed solution.

In response, the EU uses its Enforcement Regulation to enforce international trade obligations when disputes are blocked, ensuring that WTO rules are respected. The EU has launched a consultation for concerned entities, with responses due by 10 February 2025, to guide decisions on potential commercial policy measures should a mutually satisfactory solution not be reached.

At the same time, the EU continues to seek a resolution through alternative means, inviting India to join the Multi-Party Interim Appeal Arrangement (MPIA) or agree to ad hoc appeal arbitration. The dispute began in 2014 when India imposed customs duties of up to 20% on various ICT products, which the EU argues violates India’s WTO commitments to apply a zero-duty rate.

In 2019, the EU initiated the WTO dispute settlement process, and in April 2023, the panel ruled in favour of the EU, confirming that India’s tariffs were inconsistent with WTO rules. India appealed the decision in December 2023, prolonging the dispute.

TikTok’s request to temporarily halt the US ban rejected by US court

TikTok’s deadline is approaching as its Chinese parent company, ByteDance, prepares to take its case to the US Supreme Court. A federal appeals court on Friday rejected TikTok’s request for more time to challenge a law mandating ByteDance to divest TikTok’s US operations by 19 January or face a nationwide ban. The platform, used by 170 million Americans, now has weeks to seek intervention from the Supreme Court to avoid a shutdown that would reshape the digital landscape.

The US government argues that ByteDance’s control over TikTok poses a persistent national security threat, claiming the app’s ties to China could expose American data to misuse. TikTok strongly disputes these assertions, stating that user data and content recommendation systems are stored on US-based Oracle servers and that moderation decisions are made domestically. A TikTok spokesperson emphasised the platform’s intention to fight for free speech, pointing to the Supreme Court’s history of defending such rights.

The ruling leaves TikTok’s immediate fate uncertain, placing the decision first in the hands of President Joe Biden, who could grant a 90-day extension if progress toward a divestiture is evident. However, Biden’s decision would give way to President-elect Donald Trump, who takes office just one day after the 19 January deadline. Despite his previous efforts to ban TikTok in 2020, Trump recently opposed the current law, citing concerns about its benefits to rival platforms like Facebook.

Adding to the urgency, US lawmakers have called on Apple and Google to prepare to remove TikTok from their app stores if ByteDance fails to comply. As the clock ticks, TikTok’s battle with the US government highlights a broader conflict over technology, data privacy, and national security. The legal outcome could force millions of users and businesses to rethink their digital strategies in a post-TikTok world.

Google’s old search format criticised by hotels

Google has revealed that a trial of its traditional search result layout, featuring 10 blue links per page, negatively impacted both users and hotels. The test, conducted in Germany, Belgium, and Estonia, aimed to gauge the format’s viability under new EU digital regulations. The results showed users were less satisfied and took longer to find desired information, with hotel traffic dropping by over 10%.

The test was part of Google’s efforts to align with the EU’s Digital Markets Act, which prohibits favouritism towards its own services. However, the return to the older layout, implemented last month, left hotels at a disadvantage and reduced the ability of users to locate accommodations efficiently. “People had to conduct more searches and often gave up without finding what they needed,” stated Oliver Bethell, Google’s Competition Legal Director.

The trial results come as Google faces mounting pressure from price comparison websites and the European Commission. Over 20 comparison platforms have criticised Google’s compliance proposals, urging EU regulators to impose penalties. Google has indicated it will seek further guidance from the Commission to develop a suitable solution. This tension underscores the challenges tech giants face in balancing business interests with regulatory compliance and user experience, particularly in Europe’s increasingly stringent tech landscape.

Chipmaker Nvidia reaffirms commitment to China

Nvidia has refuted social media claims suggesting it plans to limit chip supplies to China, categorically stating that these rumours are false. In a post on a popular Chinese platform, the company reaffirmed its dedication to providing top-quality products and services to Chinese customers, highlighting the importance of the region to its business.

The denial comes at a time of heightened scrutiny over global semiconductor trade, with geopolitical tensions influencing market dynamics. Nvidia’s statement emphasises its continued focus on meeting the needs of its Chinese clientele, despite speculation circulating online.

This clarification is expected to reassure stakeholders in one of Nvidia’s most significant markets, where demand for advanced chips continues to grow, particularly in artificial intelligence and high-performance computing sectors. The company’s swift dismissal of the claims underscores its commitment to maintaining strong ties with China.