Meta plans to capitalize on the discontent among advertisers in its own conflict with Apple regarding in-app purchase fees by announcing its intention to transfer the 30% service charge imposed by Apple to its own customers. Starting later this month, advertisers who wish to promote a post in the Facebook or Instagram iOS app will now be billed through Apple where this additional charge will be applied.
Meta offers an alternative for advertisers to avoid the additional charge imposed by Apple by paying to boost posts from the web on Facebook or Instagram, accessible through both desktop and mobile browsers. However, it recognizes that customers may not perceive this as a convenient option since in-app purchases are the most convenient way to transact on Apple’s devices. Therefore, those who opt for in-app purchases will now incur higher costs.
By passing on the burden of Apple’s commission to advertisers, Meta hopes to garner public support and, ultimately, influence lawmakers and regulators to bring about a change in Apple’s business practices. The current commission rates and the introduction of the ‘core technology fee’ have also faced criticism from companies such as Epic and Spotify.
The US Trade Representative Katherine Tai has withdrawn longstanding US digital trade demands in World Trade Organization (WTO) talks, allowing the US Congress the space to regulate big tech firms, according to her office. United States administration’s 2019 proposals insisting on WTO e-commerce rules that promote free cross-border data flows and prohibit national requirements for data localization and software source code reviews have been revoked. Decision was made during a meeting of the WTO’s Joint Statement Initiative on E-Commerce in Geneva.
Senator Ron Wyden, who chairs the Senate Finance Committee, described the move as a “win for China,” claiming that it would strengthen China’s internet censorship and government surveillance model. On the other hand, some lawmakers, including Senator Elizabeth Warren, praised the withdrawal, as it rejects efforts by big tech lobbyists to exploit trade deals to undermine regulation.
The decision aligns with the current administration’s goal of strengthening regulation of large technology firms and reflects ongoing digital trade negotiations in the U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) group. However, concerns have been raised about potential disadvantages for U.S. firms and the impact on international digital trade relationships. The U.S. Chamber of Commerce opposes the withdrawal, arguing that the digital trade principles, included in the 2020 U.S.-Mexico-Canada Agreement, have supported the success of U.S. tech firms globally. The U.S. remains an active participant in the WTO e-commerce talks.
Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending regulations. The EU market rules for crypto-assets
Crypto-assets are one of the main applications of distributed ledger technology. Crypto-assets are digital representations of value or of rights that have the potential to bring significant benefits to market participants, including retail holders of crypto-assets. Representations of value include external, non-intrinsic value attributed to a crypto-asset by the parties concerned or by market participants, meaning the value is subjective and based only on the interest of the purchaser of the crypto-asset.
According to a report from Reuters, the world’s largest payment processor companies, Visa and Mastercard, are pushing back the launch of products and services related to crypto, until market conditions and the regulatory environment improve. Visa and Mastercard already have a card issued in partnership with the cryptocurrency exchange Binance, and it offers a fiat-to-cryptocurrency gateway for Binance users.
Anyhow, companies shared concerns about the future of cryptocurrency regulation in a midst of the recent collapse of large players in the crypto industry, such as the FTX. A hard year for crypto companies, pushed Visa and MasterCard to delay the proposed partnerships and decide the way forward after a clearer regulation perspective is established.
At the outskirts of the G20 summit in India, the International Monetary Fund Managing Director, Ms Kristalina Georgieva answered the questions from media around the cryptoassets and digital currencies. In her words, the IMF is very much in favor of regulating the world of crypto and digital money. The IMF, alongside the Bank for International Settlements and the G20s Financial Stability Board (FSB) believes this is a top-priority in the forthcoming period.
She pointed out the difference between legal tenders (national currencies) which are backed by countries that issue them, and the ‘publicly issued cryptoassets and stablecoins calling them ‘just a speculative asset’. If such assets start to pose a threat to the consumers and/or financial stability for countries we should have a mechanism to ban crytpoassets altogether. We have requests from our members not to rule out the mechanism for the total ban. If there are strong consumer protection laws set in place, we will not need a ban. The ban of cryptocurrencies is indeed a tool of last resort, she added in her interview.
In the recent announcement from the Ministry of technology and science of Zambia Mr Felix Mutati, the central financial institutions in Zambia will soon introduce legislation that would regulate the cryptoassests, and in particular Central Bank Digital Currency (CBDC).
The Zambian Minister for technology and science, pointed out in the statement that: ‘there is a need for a policy framework that supports this revolutionary technology.’
In his words, Zambia is seeking the opportunity to embrace this innovative finance technology and will use the regulatory framework ‘as part of deliberate measures to achieve an inclusive digital economy for Zambia’. ‘Cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy’ he added.
Nigeria is the first African country that introduced the digital version of its national currency. The e-Naira currency has been in use for more than a year now, but still lacks mass adoption. In a country of 200 million people, only 0.5% is using e-Naira on a daily basis. The Nigerian government is already using some of the programmability features of digital money, and it’s looking now to enhance them. According to reports from Bloomberg, the Nigerian government is seeking help from the US private tech companies to improve technology behind the virtual currency. Final idea is that at the end of this process, the Central bank of Nigeria achieves full custody and know-how on the technology needed to run a virtual currency environment.
The Nigerian government confirmed that they are looking at: ‘developing additional features and enhancements.”
Titled ‘Shaping the future with Africa’, the strategy notes that Germany’s cooperation with Africa will be based on respect and reciprocity, and anchored into Africa’s priorities and initiatives. Moreover, ‘the BMZ wants to engage in a dialogue with Africa rather than about Africa. It advocates for the voices of African states and the AU to be heard appropriately within multilateral fora.’
Digital transformation features among the focus areas for development cooperation (as part of a broader cluster titled ’employment, fair trade, migration and digital transformation’). First and foremost, Germany intends to contribute to the growth of digital economies across Africa by providing support in areas such as (a) enhancing relevant economic and political frameworks; (b) creating digital markets; (c) enabling secure, universal internet access and bridging digital divides; (d) fostering legal standards and data privacy regulations; (d) stimulating the creation of jobs in the ICT sector. Mobilising investments in digital infrastructures and supporting the implementation of the African Common Free Trade Area are also envisioned.
But supporting digital transformation across Africa relates to more than the digital economy. BMZ will also be directing its development cooperation towards supporting (a) enhancing women’s economic participation, including through providing training for women with a special focus on digital expertise; (b) the digitalisation of healthcare; and (c) the digitalisation of the public sector and the use of digital technology to strengthen political participation.
The US government has launched a Digital Transformation with Africa (DTA) initiative dedicated to ‘expand[ing] digital access and literacy and strengthen[ing] digital enabling environments across the continent’. The USA plans to dedicate over US$350 million to this initiative, which is expected to support the implementation of both the African Union’s Digital Transformation Strategy and the US Strategy Towards Sub-Saharan Africa. DTA’s objectives revolve around three pillars:
Digital economy and infrastructure: (a) expanding access to an open, interoperable, reliable, and secure internet; (b) expanding access to key enabling digital technologies, platforms, and services and scale the African technology and innovation ecosystem; (c) facilitating investment, trade, and partnerships in Africa’s digital economy.
Human capital development: (a) facilitating inclusive access to digital skills and literacy, particularly for youth and women; (b) fostering inclusive participation in the digital economy; (c) strengthening the capacity of public sector employees to deliver digital services.
Digital enabling environment: (a) strengthening the capacities of authorities and regulators to develop, implement, and enforce sound policies and regulations; (b) supporting policies and regulations that promote competition, innovation, and investment; (c) promoting governance that strengthens and sustains an open, interoperable, reliable, and secure digital ecosystem.
The WTO process will start with requests for consultations. However, any resolution is not likely as the WTO’s arbitration body has been dysfunctional due to the US blocking the appointment of new judges. The WTO’s arbitration mechanisms are not likely to be de-blocked.
Thus, China’s move has more of a symbolic relevance in the ongoing ‘chip war’ between the two countries.
