An Indian antitrust investigation has concluded that Amazon and Walmart’s Flipkart breached competition laws by favouring select sellers on their platforms. The probe, initiated by the Competition Commission of India (CCI), revealed that both companies created an ecosystem that prioritised certain sellers, making it harder for other retailers to compete.
Reports found that these preferred sellers were given an unfair advantage, appearing higher in search results and receiving additional services, leading to deep discounting practices. The findings highlighted that these practices harmed smaller retailers and stifled competition, especially in the mobile phone sector.
Both Amazon and Flipkart are expected to review the reports and submit objections before any fines are imposed. These companies have consistently denied any wrongdoing and argued that their operations comply with Indian regulations.
The investigation stemmed from complaints by traditional retailers and follows growing concerns about the dominance of e-commerce giants in India. Both Amazon and Flipkart remain major players in a market projected to be worth $160 billion by 2028.
Connectly, a startup specialising in conversational commerce through AI-driven personalised messaging has secured $20 million in a Series B funding round. The round was led by Alibaba and included participation from several notable investors, such as Unusual Ventures and Volpe Capital. This new investment boosts Connectly’s total funding to $37.2 million and brings its valuation close to $100 million.
The funds will be used to advance AI research and support Connectly’s expansion into the US and European markets. Additionally, the company plans to strengthen its engineering presence in Greece, aiming to make it a key hub alongside San Francisco. Connectly, a company that uses AI models to help retailers enhance customer engagement and drive sales, has experienced significant growth in the past year.
The successful funding round follows Connectly’s launch of its advanced AI recommendation tool, ‘Sofia AI,’ and its expansion into the US market. The partnership with Alibaba is expected to accelerate Connectly’s global reach further, integrating its AI solutions into Alibaba’s international e-commerce platforms. With plans to grow its workforce to 80 by year-end and a current client base of 300, Connectly is well-positioned to continue its impactful growth in the retail industry.
Adobe has announced the upcoming release of a generative AI-powered video creation tool named Adobe Firefly Video Model. Scheduled for a limited beta release later this year, this tool will extend Adobe’s Firefly suite, which currently includes applications for generating still images and designs. The new model will allow users to create a five-second video clip from a single text or image prompt, with options to specify camera angles, motion, and zoom.
The introduction of this tool marks Adobe’s entry into the competitive AI video generation market, which already features offerings from companies like OpenAI and Stability AI. Adobe aims to differentiate itself by focusing on quality and user-guided prompt understanding, addressing specific needs of videographers.
Adobe assures that the model is trained exclusively on public domain or licensed content from its Adobe Stock database, which includes 400 million curated images and videos, avoiding any intellectual property issues. Additionally, Adobe is launching Generative Extend, a feature for Premiere Pro that extends video clips by generating content to fill gaps.
The US government is reportedly considering allowing Nvidia to export advanced AI chips to Saudi Arabia. These chips would assist the kingdom in developing and operating cutting-edge models. The move could play a crucial role in Saudi Arabia’s AI strategy, which was a key focus at the recent GAIN summit.
Efforts are underway in Saudi Arabia to meet US security requirements, which could expedite the acquisition of Nvidia’s H200 chips. These chips are expected to boost Saudi Arabia’s capabilities, as they are also used in advanced platforms like OpenAI’s GPT-4. Saudi officials have expressed their intention to comply with US regulations.
The Biden administration had imposed restrictions on AI chip exports, particularly targeting China, but also extending to the UAE and other Middle Eastern countries. However, Saudi Arabia has been careful to manage its relationship with both the US and China, ensuring access to key technologies remains open.
Nvidia and the US Department of Commerce declined to comment on the potential chip sales. The Department of Commerce noted that export control decisions involve multiple government departments, including Defense, State, and Energy.
The GSMA and Connect Europe underscore the urgent need for Europe to enhance its digital infrastructure to remain globally competitive. They highlight that current over-regulation and structural issues are stifling investment and innovation within the telecom sector.
Supporting Mario Draghi’s recommendations, they advocate for a revised EU Telecoms Act and a new industrial strategy to create a more conducive environment for growth. Furthermore, they emphasise the importance of scaling the telecom sector to effectively compete with major global players such as the US and China. Reforms to merger regulations are essential to prevent Europe from falling further behind in the global digital economy.
Reducing regulatory burdens is also needed to better align with market dynamics, promote investment, and encourage innovation. This includes implementing fair competition rules for telecom operators and Big Tech companies to ensure equitable commercial outcomes.
The GSMA and Connect Europe also urge the adoption of harmonised spectrum licensing procedures across member states to stimulate growth and encourage cross-border investment. They advocate for longer-duration licenses and fewer restrictions to create a unified market and enhance regulatory alignment. Additionally, they stress the need for immediate legislative action to address these issues, secure Europe’s digital and economic future, and prevent further decline in competitiveness in an increasingly digital and globalised world.
Salesforce has launched its Hyperforce cloud platform in Israel, marking its 17th global cloud location. The new platform will allow sensitive data from government entities and regulated companies to remain within Israel, ensuring compliance with local privacy laws. Initially, Hyperforce will operate on Amazon Web Services (AWS), with plans to potentially expand to Google Cloud in the future.
Before the launch, Israeli companies stored data at Salesforce’s Frankfurt facility, which had been approved for government use. The local cloud platform will now provide a more secure and convenient option for Salesforce’s customers in Israel, with all companies set to migrate soon.
Salesforce, which employs 750 people across three sites in Israel, has been heavily investing in AI. Its Israeli R&D centre plays a key role in developing AI and other advanced technologies, positioning the country as one of the company’s three major development hubs alongside the U.S. and India.
The company’s move to expand its cloud services in Israel aligns with its broader strategy to integrate AI into its product offerings and drive future growth in revenue and profitability.
Visa has announced an ambitious plan to expand the acceptance of digital payments in Pakistan by ten times over the next three years. The strategy, revealed by Visa’s general manager for Pakistan, North Africa, and Levant, Leila Serhan, comes as the company partners with Pakistan’s largest payment provider, 1Link. The aim is to encourage more businesses to adopt digital payments and improve remittance flows into the country.
With a population of 240 million, Pakistan faces a significant challenge, as only 60% of its 137 million adults have bank accounts. Visa’s plan involves investing in digital payment infrastructure, making digital transactions more affordable and easier to manage for businesses, especially smaller merchants. By introducing technology that turns phones into payment devices and accepting various forms of payments such as QR codes and card taps, Visa hopes to increase the current number of point-of-sale machines.
The partnership with 1Link also focuses on enhancing the remittance process, ensuring better security and encouraging transactions through legal channels. Remittances are a vital source of foreign exchange for Pakistan, contributing significantly to its GDP. This collaboration includes allowing 1Link’s PayPak cards to be accepted on Visa’s online platform, despite the two companies being competitors.
As Pakistan implements economic reforms following a $7 billion bailout from the IMF, digital payments are set to play a key role in the government’s drive towards digitisation. Visa is committed to supporting these efforts, seeing digital payments as central to the country’s future economic growth.
In 2009, Google’s goal was to ‘crush’ rival ad networks, as revealed by a former executive in a point highlighted in the ongoing US Department of Justice antitrust trial against the tech giant. The remarks, made by David Rosenblatt, Google’s former president of display advertising, surfaced as part of the prosecution’s argument that Google has been trying to monopolise the online adtech market, dominating both publisher ad servers and advertiser ad networks.
The trial is gaining momentum and has introduced evidence of Google’s internal strategies since it acquired DoubleClick in 2008. Rosenblatt’s comments, referenced in court notes, underscored Google’s aim to control the digital advertising ecosystem. He compared the company’s adtech ambitions to those of major financial institutions, stating that Google wanted to achieve in display ads what it had already done with search ads.
Google has denied the allegations, asserting it faces strong competition from other major players like Microsoft, Amazon, and Meta. The company argues that its advertising tools are common in the industry. However, the prosecution contends that Google’s integrated ad services give it an unfair advantage, particularly by making it difficult for publishers to switch platforms, a challenge Rosenblatt described as a ‘nightmare.’
Should the court rule against Google, prosecutors have called for the company to sell off its Google Ad Manager, including its publisher ad server and ad exchange, to restore competition in the digital advertising market.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has recently updated its Russia General License (GL) 25E, maintaining authorisation for essential and incidental transactions to telecommunications involving the Russian Federation. That license facilitates various internet-based services, including instant messaging, social networking, and e-learning platforms.
It supports the ongoing exchange of communications and allows for the export or reexport of related software, hardware, and technology, provided such transactions comply with the Department of Commerce’s Export Administration Regulations. However, it is important to note that transactions involving significant Russian telecommunications companies designated by OFAC remain unauthorised under this license and must be carefully analysed.
The Department of the Treasury’s Office of Foreign Assets Control has also issued a critical alert regarding Russia’s attempts to evade sanctions by establishing new overseas branches and subsidiaries of Russian financial institutions. That alert warns that these efforts to open new international branches or subsidiaries should be considered potential red flags for sanction evasion.
Financial institutions and foreign regulators are advised to exercise caution when engaging with these entities, as activities such as maintaining accounts, transferring funds, or providing financial services may carry significant risks of facilitating Russia’s attempts to bypass sanctions.
Apple has lost its battle with the European Union over a €13 billion tax payment dispute, marking a major win for the EU regulators. The European Commission initially ordered the payment in 2016, accusing Apple of benefiting from favourable Irish tax rulings that significantly reduced its tax obligations. These sweetheart deals allowed Apple to pay as little as 0.005% tax in 2014.
Apple and Ireland challenged the decision, arguing that the ruling defied logic, especially since Ireland’s low tax rates were instrumental in attracting major tech firms. However, the Court of Justice of the EU upheld the Commission’s order, declaring that Ireland had provided Apple with illegal state aid, which now must be repaid.
Apple expressed disappointment, accusing the EU of retroactively changing tax laws and arguing that its income had already been taxed in the US. The final and non-appealable ruling is a significant step in the EU’s efforts to clamp down on favourable tax deals for multinational corporations.
