Negotiations for a global tax deal have extended beyond the 30 June deadline, with governments now looking to the Group of 20 (G20) finance leaders meeting this week for progress on the stalled plan. The ‘Pillar 1’ arrangement, part of the 2021 global two-part tax deal, aims to replace unilateral digital services taxes on tech giants like Google, Amazon, and Apple with a new mechanism to share taxing rights on a broader, global group of companies.
The stakes are high, as failure to reach an agreement could lead to several countries reinstating their taxes on the United States tech conglomerates, risking punitive duties on billions of dollars in exports to the US. Standstill agreements, under which Washington suspended threatened trade retaliation against seven countries, expired on 30 June. Despite this, the US has not yet imposed tariffs, and discussions are ongoing.
Canada recently became the eighth country to impose a unilateral digital services tax, emphasising the urgency for a global resolution. The US Treasury maintains that such taxes are discriminatory and continues to oppose measures targeting US businesses. The G20 meeting in Rio de Janeiro is seen as a critical juncture to finalise the international tax deal, with the European Union listing it as a top priority. As global leaders continue their discussions, there is a strong push to ensure a fair, risk-free, balanced tax system in the digital age.
India announced reduced import duty on mobile phones and key components from 20% to 15%. During the 2024-25 budget presentation, Finance Minister Nirmala Sitharaman stated that India will be lowering its import taxes on mobile phones, printed circuit board assembly (PCBAs), and mobile chargers to pass the benefit on to the consumers.
That policy benefits Apple, which imports its high-end Pro and Pro Max iPhone models from abroad despite increasing local production in the country by contracting to manufacturers like Foxconn and Tata Group. Co-founder of Counterpoint Research, Neil Shah noted that 10-12% of Apple iPhones are imported to India annually, and a 5% tax reduction could save Apple $35-50 million per year. Shah added that Apple will also benefit directly from mobile models that are still importing PCBAs. He also noted that reducing import duties will benefit new market entrants, calling it a game-changer.
Why does it matter?
The policy is well aligned with Prime Minister Narendra Modi’s vision of promoting India as a smartphone manufacturing centre, leading companies like Apple, Xiaomi, Samsung, and Vivo to expand local operations. Previously, India’s deputy IT ministry had advocated for reducing import taxes on mobile phones to compete with China and Vietnam as smartphone export hubs.
Italian tax police have seized €121 million from Amazon’s Italian logistics unit as part of an investigation into alleged tax fraud and illegal labour practices. The Milan Prosecutors’ Office has accused Amazon Italia Transport of bypassing labour and tax laws by using cooperatives and limited liability companies to supply workers, avoiding VAT tax duties, and reducing social security payments.
Prosecutors claim this system allowed Amazon to maintain competitive service prices in the Italian market. An Amazon spokesperson in Italy did not comment on the case when contacted by Reuters.
The investigation follows similar probes targeting other large businesses in recent years, including DHL, UPS, DB Schenker, and the Italian supermarket chain Esselunga.
LinkedIn is introducing AI-powered career advice and interactive games in an effort to encourage daily visits and drive growth. The Financial Times reported that this initiative is part of a broader overhaul aimed at increasing user engagement on the Microsoft-owned platform, which currently lags behind entertainment-focused social media sites like Facebook and TikTok.
With slowing revenue growth, analysts have suggested that LinkedIn must diversify its income streams beyond subscriptions and make the platform more engaging. Editor in Chief Daniel Roth emphasised the goal of building a daily habit for users to share knowledge, get information, and interact with content on the site. The efforts reflect LinkedIn’s push to enhance the user experience, such as unveiling AI-driven job hunting features and detecting fake accounts, as well as disabling targeted ads.
In June, LinkedIn recorded 1.5 million content interactions per minute, though it did not disclose site traffic or active user figures. Data from Similarweb showed that visits reached 1.8 billion in June, but the growth rate has slowed significantly since early 2024. For continued growth, media analyst Kelsey Chickering noted that LinkedIn needs to become ‘stickier’ and offer more than just job listings and applications.
Moreover, LinkedIn is becoming a significant platform for consumer engagement, with companies like Amazon and Nike attracting millions of followers. The platform’s fastest-growing demographic is Generation Z, many of whom shop via social media. The trend highlights LinkedIn’s potential as a robust avenue for retailers to reach a sophisticated and influential audience.
AI software designed to create multilingual tutorial videos for foreign workers in Japan has been launched. Tokyo-based Studist Corp developed ‘Teachme AI’ to help companies produce instructional videos quickly and efficiently.
Teachme AI can translate text into 20 different languages, including Thai, Vietnamese, Indonesian, and Bengali. This innovation aims to support businesses as the number of foreign workers in Japan rises, addressing labour shortages and an ageing population.
The software significantly reduces editing times, automatically dividing footage into chapters with subtitles. During a demonstration, a 30-minute video with Thai explanations was created in just 15 minutes, impressing users with its efficiency.
A recent survey reveals that 66% of HR leaders have a more positive view of AI in the workplace compared to a year ago. Commissioned by recruitment platform HireVue, the research also found that 67% believe AI is as effective or better than humans at identifying qualified applicants.
Linsey Zuloaga, HireVue’s chief data scientist, highlighted AI’s potential to streamline hiring by automating repetitive tasks and improving candidate communication.
The survey also showed that 64% of candidates feel AI is as fair or fairer than human recruiters, with 49% believing AI can address bias in hiring. Despite this, 75% of candidates oppose AI making final hiring decisions. Zuloaga emphasised the importance of transparency, suggesting HR departments clearly communicate how AI is used in the hiring process to build trust.
Rich Bye of Workday noted that attitudes toward AI improve as its benefits become apparent, such as increased efficiency and reliability in candidate screening.
However, the survey found that 42% of HR professionals are waiting for corporate guidelines on generative AI, and 33% have implemented AI without formal approval. Zuloaga advised HR leaders to ensure potential AI tools comply with ethical and regulatory standards before implementation.
The EU Commission has announced that Apple will open its near-field-communication (NFC) technology to third party developers, including competitors. Rival mobile wallet providers will now be able to use this technology as well, giving them access to a new market of users. Companies other than Apple will also be able to access tap-and-go services which use NFC technology. This means they will have access to technologies for things like digital wallets, house and car keys, security badges, loyalty cards, and event tickets.
“We have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet,” Apple said in an emailed statement to Reuters. EU antitrust chief Margrethe Vestager noted that ‘consumers will have a wider range of safe and innovative mobile wallets to choose from.’
After the EU shared its concerns on Apple’s market dominance in May 2022, Apple decided it would settle the case and determined a first set of commitments. Commission market-tested these commitments between 19 January 2024 and 19 February 2024, consulting all interested third parties to verify whether they would remove its competition concerns. After this process, Apple came up with a second round of commitments which the EU turned into law. This way, Apple avoided a violation of the EU’s antitrust laws and a fine.
Apple’s decision to settle the EU antitrust probe stands out given the company has pushed back against the EU competition watchdog on other occasions. Besides this case, it is currently facing a number of investigations under the Digital Markets Act (DMA) over its business practices. It recently received a €1.8 billion fine, which it is currently appealing.
South Korean cosmetics giant AmorePacific has seen immense interest in its new AI beauty lab, where robots custom mix face products and advanced technology recommends the most suitable lipstick colours. Customers like Kwon You-jin appreciate the personalised service, which uses AI-generated reports to analyse skin conditions and match products precisely to individual skin tones.
AI technology is becoming increasingly prevalent in the cosmetics industry, with global brands like L’Oréal and Sephora also adopting it to tailor products to customer needs. In 2023, global beauty industry sales, including cosmetics, reached $625.6 billion, showing steady growth since a dip during the COVID-19 pandemic.
AmorePacific employs deep learning and machine learning techniques to recommend the best product choices. The use of AI speeds up product development and reduces human error and variability in consultations. Analysts believe that AI integration will continue accelerating product launches and lowering industry hurdles.
The market for AI in the beauty and cosmetics sector is projected to more than double from $3.27 billion in 2023 to $8.1 billion by 2028. According to Business Research Company, services such as personalised beauty recommendations, skin analysis, diagnostics, and virtual makeup artists are expected to drive this growth.
Intuit, the parent company of TurboTax, has announced plans to reduce its workforce by 10%, affecting approximately 1,800 jobs. This move comes as Intuit shifts its focus towards enhancing its AI-powered tax preparation software and other financial tools.
The company intends to close two sites in Edmonton, Canada and Boise, Idaho, while aiming to rehire for new positions primarily in engineering, product development, and customer-facing roles.
CEO Sasan Goodarzi outlined that while 300 roles will be eliminated to streamline operations, another 80 technology positions will be consolidated across locations such as Atlanta, Bengaluru, and Tel Aviv.
This restructuring effort is expected to incur costs between $250 million and $260 million, with significant charges anticipated in the fourth quarter of this year.
Despite the layoffs, Intuit plans to ramp up its investments in generative AI and expand its market presence, targeting regions including Canada, the United Kingdom, and Australia. Goodarzi expressed confidence in growing the company’s headcount beyond fiscal 2025, following recent positive financial performance and increased demand for its AI-integrated products.
At YourStory’s Tech Leaders’ Conclave, Ankur Pal, Chief Data Scientist at Aplazo, discussed how AI is transforming the financial services industry. Aplazo aims to address financial inclusion, especially in developing countries with low credit card penetration, by providing fair and transparent solutions like their Buy Now Pay Later (BNPL) platform. Pal highlighted AI’s potential to revolutionise fintech by creating personalised financial products and improving operational efficiency, ultimately reducing friction for consumers and institutions.
Pal emphasised AI’s role in enhancing decision-making processes, reducing fraud, and improving customer service. AI-driven solutions enable real-time data processing, which helps financial institutions detect and prevent fraud more effectively.
Additionally, AI can automate routine tasks, allowing financial professionals to focus on strategic initiatives. The real-time decision-making is becoming increasingly important as financial institutions invest in event streaming infrastructure and machine learning operations (MLOps) stacks to manage high transaction volumes with low latency.
Overcoming financial inclusion barriers was a key topic, with Pal noting that many developing countries still have a large unbanked or underbanked population despite high bank account ownership. AI can bridge this gap by offering tailored financial solutions for underserved communities.
Pal also discussed the importance of leadership and the skill sets required for building successful AI teams. He stressed the need for adaptability, continuous learning, and a deep understanding of both technology and business to create valuable AI solutions. While AI will transform job roles, it will also create new opportunities, making it crucial for leaders to foster a culture of innovation.
