E-commerce and trade Archives | Page 159 of 199

Australia’s new social media ban faces backlash from Big Tech

Australia’s new law banning children under 16 from using social media has sparked strong criticism from major tech companies. The law, passed late on Thursday, targets platforms like Meta’s Instagram and Facebook, as well as TikTok, imposing fines of up to A$49.5 million for allowing minors to log in. Tech giants, including TikTok and Meta, argue that the legislation was rushed through parliament without adequate consultation and could have harmful unintended consequences, such as driving young users to less visible, more dangerous parts of the internet.

The law was introduced after a parliamentary inquiry into the harmful effects of social media on young people, with testimony from parents of children who had been bullied online. While the Australian government had warned tech companies about the impending legislation for months, the bill was fast-tracked in a chaotic final session of parliament. Critics, including Meta, have raised concerns about the lack of clear evidence linking social media to mental health issues and question the rushed process.

Despite the backlash, the law has strong political backing, and the government is set to begin a trial of enforcement methods in January, with the full ban expected to take effect by November 2025. Australia’s long-standing tensions with major US-based tech companies, including previous legislation requiring platforms to pay for news content, are also fueling the controversy. As the law moves forward, both industry representatives and lawmakers face challenges in determining how it will be practically implemented.

Mixed reactions as Australia bans social media for minors

Australia’s recent approval of a social media ban for children under 16 has sparked mixed reactions nationwide. While the government argues that the law sets a global benchmark for protecting youth from harmful online content, critics, including tech giants like TikTok, warn that it could push minors to darker corners of the internet. The law, which will fine platforms like Meta’s Facebook, Instagram and TikTok up to A$49.5 million if they fail to enforce it, takes effect one year after a trial period begins in January.

Prime Minister Anthony Albanese emphasised the importance of protecting children’s physical and mental health, citing the harmful impact of social media on body image and misogynistic content. Despite widespread support—77% of Australians back the measure—many are divided. Some, like Sydney resident Francesca Sambas, approve of the ban, citing concerns over inappropriate content, while others, like Shon Klose, view it as an overreach that undermines democracy. Young people, however, expressed their intent to bypass the restrictions, with 11-year-old Emma Wakefield saying she would find ways to access social media secretly.

This ban positions Australia as the first country to impose such a strict regulation, ahead of other countries like France and several US states that have restrictions based on parental consent. The swift passage of the law, which was fast-tracked through parliament, has drawn criticism from social media companies, which argue the law was rushed and lacked proper scrutiny. TikTok, in particular, warned that the law could worsen risks to children rather than protect them.

The move has also raised concerns about Australia’s relationship with the United States, as figures like Elon Musk have criticised the law as a potential overreach. However, Albanese defended the law, drawing parallels to age-based restrictions on alcohol, and reassured parents that while enforcement may not be perfect, it’s a necessary step to protect children online.

Chip stocks rise as US restrictions on China may ease

European chip equipment stocks surged on Thursday following reports that upcoming US restrictions on China’s semiconductor industry might be less stringent than anticipated. Shares of ASML, a leading supplier of semiconductor tools, rose by 4.3%, while competitors BE Semiconductor and ASM International climbed 5% and 2.9%, respectively, outperforming the STOXX 600 index.

According to Bloomberg, the US may exclude Chinese memory chipmaker ChangXin Memory Technologies (CXMT) from its trade restrictions, though details remain uncertain. The US Commerce Department, which oversees export rules, is expected to release updated guidance after Thanksgiving.

ASML, which has seen a sharp decline in sales to China over recent quarters, declined to comment. The company previously projected that sales to China would shrink to 20% of its revenue by 2025, down from nearly half in the last 18 months. Other global semiconductor equipment suppliers, including US-based Applied Materials and Tokyo Electron, are also closely monitoring the situation.

OKX brings crypto trading to Belgium

OKX, a leading cryptocurrency exchange, has expanded into Belgium by launching its trading platform and self-custodial wallet. The new services offer Belgian customers access to over 200 cryptocurrencies, with euro deposits and withdrawals facilitated through Bancontact, a widely used payment system in the country.

Operating through its Malta-based entity, OKX provides services to Belgium under EU regulations without direct approval from Belgian authorities. Customers can trade after completing verification via the Itsme identification app, ensuring secure and compliant access.

With 25% of Belgians already engaged with cryptocurrency, OKX’s launch comes amid growing interest in digital assets. By 2028, crypto penetration in Belgium is projected to reach 28%. OKX’s entry aligns with its broader European expansion strategy, which includes prior launches in the Netherlands and plans for an EU regulatory hub in Malta.

Orange partners with OpenAI in Europe

Orange has entered a groundbreaking multi-year partnership with OpenAI, becoming the first European telecom company with direct access to pre-release versions of the company’s AI models. This collaboration will allow Orange to influence OpenAI’s development roadmap while ensuring secure hosting of AI infrastructure in Europe, according to the group’s AI chief, Steve Jarrett.

The partnership highlights the strategic importance of OpenAI’s widely used models, with over 50,000 Orange employees already integrating them into their work. Jarrett emphasised the financial and technological advantages of a direct relationship with OpenAI, boosting Orange’s position in the AI race.

In addition to the partnership, Orange is working with Meta and OpenAI to translate African languages like Wolof and Pular for customer support and broader non-commercial uses. The initiative aims to support governments, universities, and startups, expanding accessibility to underserved linguistic communities.

US FTC targets tech support scams with new rule changes

The Federal Trade Commission (FTC) has strengthened its rules to better protect consumers from tech support scams. With new amendments to the Telemarketing Sales Rule (TSR), the agency can now act against fraudsters even when victims initiate the call, closing a loophole that left many unable to seek justice.

Tech support scams commonly trick victims through fake pop-ups, emails, and warnings that urge them to contact bogus help desks. These scams have disproportionately affected older adults, who are five times more likely to be targeted, leading to over $175M in reported losses.

Previously, the US FTC could only pursue scammers if they made the initial call. The rule change now removes exemptions for technical support services, allowing the agency to crack down on deceptive practices regardless of how contact is made. Authorities are also targeting fraudulent pop-ups as part of a broader effort to combat these schemes.

With cases like the fake ‘Geek Squad’ scams resulting in millions in losses, the FTC’s expanded powers mark a significant step in holding scammers accountable and protecting vulnerable populations from financial harm.

FTC challenges Microsoft over cloud practices

The US Federal Trade Commission (FTC) has launched a wide-reaching antitrust investigation into Microsoft’s business practices, focusing on cloud computing, software licensing, and artificial intelligence. Allegations suggest the company has imposed restrictive licensing terms that make it difficult for customers to switch from its Azure cloud services to rival platforms. FTC Chair Lina Khan approved the probe ahead of her expected departure in January, raising questions about its future under a potentially business-friendlier administration.

Critics, including competitors and industry groups like NetChoice, claim Microsoft’s licensing policies unfairly lock customers into its ecosystem. Google has raised similar concerns with European regulators, citing significant mark-ups for using Windows Server on competing cloud services and delays in providing security updates. The FTC’s investigation also touches on broader competition concerns in AI and cybersecurity, including Microsoft’s acquisition of AI startup Inflection AI.

Microsoft has not commented on the probe, but complaints have mounted over its practices in cloud computing and the integration of AI tools into productivity products like Office and Outlook. Some industry observers note that Microsoft has been relatively spared in recent US antitrust actions targeting Big Tech firms, including Apple, Google, Meta, and Amazon. However, the FTC’s focus on Microsoft could signal a shift in regulatory priorities.

The outcome of the investigation remains uncertain, particularly with a potential change in the political landscape. While the Trump administration previously pursued aggressive antitrust enforcement, including actions against Google and Meta, Microsoft has benefited from its policies in the past, such as winning a contentious $10 billion Pentagon cloud contract over Amazon. Experts believe a new administration may alter enforcement priorities but not necessarily halt ongoing probes.

Amazon unveils advanced AI to compete in generative technology

Amazon has reportedly developed a new generative AI model, code-named Olympus, capable of processing images and videos alongside text. This innovation is expected to reduce Amazon’s reliance on Anthropic’s Claude chatbot, currently a prominent feature of Amazon Web Services (AWS), according to sources cited by The Information.

The Olympus model promises enhanced functionality, such as recognising scenes in visual content. For example, users could search for specific moments, like a game-winning basketball shot, using simple text prompts. This advancement aligns with Amazon’s strategy to solidify its position in the competitive generative AI landscape, currently dominated by Google, Microsoft, and OpenAI.

Amazon’s efforts come after its recent $4 billion investment in Anthropic, echoing a similar amount injected last year. These investments bolster Amazon’s generative AI capabilities, signalling its commitment to catching up with its tech rivals. An official announcement for Olympus may be made at the upcoming AWS re:Invent conference next week, according to insiders.

Amazon declined to comment on the matter when approached by Reuters. The e-commerce giant’s push for cutting-edge AI underscores its ambition to rival industry leaders and redefine user experiences through advanced AI tools.

Tether ends support for EURt stablecoin

Tether, the issuer of USDt, has announced the discontinuation of its euro-pegged stablecoin, EURt. Users are advised to redeem their holdings within the next year, with a final deadline set for November 2025. The decision comes as Tether adjusts its strategy to align with Europe’s evolving regulatory landscape for stablecoins.

The move coincides with the implementation of the European Markets in Crypto-Assets (MiCA) Regulation, which will come into effect by late 2024. Tether previously criticised MiCA’s approach to stablecoins, citing concerns over systemic risks. As part of its shift, the company will now focus on MiCA-compliant initiatives, such as EURq and USDq stablecoins, developed with Dutch fintech firm Quantoz Payments.

Tether’s Hadron tool will play a central role in these projects, offering simplified stablecoin management and enhanced compliance mechanisms. By investing in MiCA-friendly solutions, Tether aims to foster a stable and inclusive financial ecosystem while redefining innovation in the stablecoin space.

Google challenges verdict in Epic Games lawsuit

Google is appealing a court order mandating significant changes to its Play app store, arguing to the US 9th Circuit Court of Appeals that legal errors during the trial unfairly favoured Epic Games. The tech giant contends that the San Francisco jury should not have been allowed to rule on Epic’s claims and that the trial judge overstepped by issuing a nationwide injunction.

Epic, known for creating “Fortnite,” accused Google of monopolising app distribution and payment systems on Android devices. A jury sided with Epic last year, leading US District Judge James Donato to require Google to permit rival app stores on Android and allow competitors access to Play’s app catalogue. This injunction, set to last three years, is on hold pending the appeal.

Google warns the mandated changes would disrupt app developers and users, framing the judge’s order as excessive intervention. Epic, meanwhile, dismissed Google’s appeal as baseless and a refusal to honour the jury’s unanimous decision. The appeals court is set to hear arguments in February, with a decision expected later in 2025.