E-commerce and trade

Microsoft outlines new commitments to Europe’s digital future

Microsoft has unveiled a set of five digital commitments aimed at supporting Europe’s technological and economic future.

Central to the announcement is a major expansion of its cloud and AI infrastructure, including plans to grow its datacentre capacity by 40% across 16 European countries.

The company says this will help nations strengthen digital sovereignty, boost economic competitiveness and ensure data remains under European jurisdiction.

They reaffirmed commitments to EU data privacy laws, expanding its EU Data Boundary and offering customers advanced encryption and control tools.

As geopolitical tensions persist, Microsoft pledges to uphold Europe’s digital resilience and continuity of service. However, this includes a legally binding Digital Resilience Commitment, European oversight of datacentre operations, and partnerships to ensure operational continuity in the event of disruption.

Cybersecurity remains a core focus, with a new Deputy Chief Information Security Officer for Europe and increased support for compliance with the EU’s evolving regulations.

Microsoft also recommitted to open access principles for AI development and support for local innovation, including open-source ecosystems.

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Amazon launches first Kuiper satellites to challenge Starlink

Amazon has launched the first 27 satellites of its Project Kuiper broadband network into low-Earth orbit, marking a major step in its $10bn plan to deliver global internet coverage and rival Elon Musk’s Starlink.

The satellites were launched aboard a United Launch Alliance Atlas V rocket from Cape Canaveral, Florida, after weather delays earlier this month. They are the first of over 3,200 that Amazon intends to deploy, with the aim of reaching underserved and remote areas around the world.

Project Kuiper, announced in 2019, has been slow to get off the ground. Amazon must deploy at least half its satellite constellation—1,618 units—by mid-2026 to meet US regulatory requirements, though analysts expect the company to seek an extension.

The launch puts Amazon into direct competition with SpaceX, which has already deployed over 8,000 Starlink satellites and serves more than 5 million users across 125 countries.

While SpaceX dominates the sector, Amazon hopes its strengths in cloud computing and consumer devices will give Kuiper an edge.

Jeff Bezos said he expects both Kuiper and Starlink to succeed, citing strong global demand for satellite internet. Kuiper consumer terminals will sell for under $400 and come in various sizes, including one comparable to a Kindle.

Amazon has booked 83 future launches with partners including ULA, Arianespace, and Bezos’s Blue Origin, making it the biggest satellite launch programme in history.

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UK refuses to include Online Safety Act in US trade talks

The UK government has ruled out watering down the Online Safety Act as part of any trade negotiations with the US, despite pressure from American tech giants.

Speaking to MPs on the Science, Innovation and Technology Committee, Baroness Jones of Whitchurch, the parliamentary under-secretary for online safety, stated unequivocally that the legislation was ‘not up for negotiation’.

‘There have been clear instructions from the Prime Minister,’ she said. ‘The Online Safety Act is not part of the trade deal discussions. It’s a piece of legislation — it can’t just be negotiated away.’

Reports had suggested that President Donald Trump’s administration might seek to make loosening the UK’s online safety rules a condition of a post-Brexit trade agreement, following lobbying from large US-based technology firms.

However, Baroness Jones said the legislation was well into its implementation phase and that ministers were ‘happy to reassure everybody’ that the government is sticking to it.

The Online Safety Act will require tech platforms that host user-generated content, such as social media firms, to take active steps to protect users — especially children — from harmful and illegal content.

Non-compliant companies may face fines of up to £18 million or 10% of global turnover, whichever is greater. In extreme cases, platforms could be blocked from operating in the UK.

Mark Bunting, a representative of Ofcom, which is overseeing enforcement of the new rules, said the regulator would have taken action had the legislation been in force during last summer’s riots in Southport, which were exacerbated by online misinformation.

His comments contrasted with tech firms including Meta, TikTok and X, which claimed in earlier hearings that little would have changed under the new rules.

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OpenAI’s CEO Altman confirms rollback of GPT-4o after criticism

OpenAI has reversed a recent update to its GPT-4o model after users complained it had become overly flattering and blindly agreeable. The behaviour, widely mocked online, saw ChatGPT praising dangerous or clearly misguided user ideas, leading to concerns over the model’s reliability and integrity.

The change had been part of a broader attempt to make GPT-4o’s default personality feel more ‘intuitive and effective’. However, OpenAI admitted the update relied too heavily on short-term user feedback and failed to consider how interactions evolve over time.

In a blog post published Tuesday, OpenAI said the model began producing responses that were ‘overly supportive but disingenuous’. The company acknowledged that sycophantic interactions could feel ‘uncomfortable, unsettling, and cause distress’.

Following CEO Sam Altman’s weekend announcement of an impending rollback, OpenAI confirmed that the previous, more balanced version of GPT-4o had been reinstated.

It also outlined steps to avoid similar problems in future, including refining model training, revising system prompts, and expanding safety guardrails to improve honesty and transparency.

Further changes in development include real-time feedback mechanisms and allowing users to choose between multiple ChatGPT personalities. OpenAI says it aims to incorporate more diverse cultural perspectives and give users greater control over the assistant’s behaviour.

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Big Tech accused of undue influence over EU AI Code

The European Commission is facing growing criticism after a joint investigation revealed that Big Tech companies had disproportionate influence over the drafting of the EU’s Code of Practice on General Purpose AI.

The report, published by Corporate Europe Observatory and LobbyControl, claims firms such as Google, Microsoft, Meta, Amazon, and OpenAI were granted privileged access to shaping the voluntary code, which aims to help companies comply with the upcoming AI Act.

While 13 Commission-appointed experts led the process and over 1,000 participants were involved in feedback workshops, civil society groups and smaller stakeholders were largely side-lined.

Their input was often limited to reacting through emojis on an online platform instead of engaging in meaningful dialogue, the report found.

The US government also waded into the debate, sending a letter to the Commission opposing the Code. The Trump administration argued the EU’s digital regulations would stifle innovation.

Critics meanwhile say the EU’s current approach opens the door to Big Tech lobbying, potentially weakening the Code’s effectiveness just as it nears finalisation.

Although the Code was due in early May, it is now expected by June or July, just before new rules on general-purpose AI tools come into force in August.

The Commission has yet to confirm the revised timeline.

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Trump eases auto tariffs amid industry concerns

President Donald Trump has signed executive orders easing his controversial 25% tariffs on automobiles and parts, aiming to relieve pressure on carmakers struggling with rising costs.

The move follows warnings from manufacturers and analysts that the tariffs could inflate prices, harm domestic production and slow the industry’s recovery. Trump framed the measure as a temporary bridge, allowing automakers time to shift more manufacturing into the US instead of facing harsh penalties.

The changes include a short-term rebate system tied to the proportion of foreign parts used in vehicles assembled domestically. Automakers have been told they’ll have two years of reduced levies, giving them time to reconfigure supply chains and invest in new US-based facilities.

Officials claim announcements on job creation and plant expansion are expected soon, with companies like Stellantis, Ford, and GM praising the policy shift as a step toward competitiveness rather than an immediate fix.

However, some experts warn that the industry needs stability instead of unpredictable policy swings. They argue that relocating production takes years and billions in investment, not mere months.

With vehicle prices already high and supply chains stretched, economists question whether the tariff adjustments can offset the broader economic risks posed by Trump’s wider trade strategy.

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Tech giants circle as Chrome faces possible break-up

Alphabet, Google’s parent company, may soon be forced to split into separate entities, with its Chrome browser emerging as a particularly attractive target.

With Chrome controlling over 65% of the global browser market, interest is mounting from AI-driven firms and legacy tech companies alike, all eager to take control of a platform that reaches billions of users.

OpenAI, known for ChatGPT, sees Chrome as a natural fit for its expanding AI ecosystem, especially with search features increasingly integrated into its chatbot.

Rival AI search firm Perplexity is also eyeing Chrome instead of building from scratch, viewing it as a shortcut to mainstream adoption and a rich source of user data and engagement.

Yahoo, backed by Apollo Global Management, is reportedly considering a $50 billion bid, even while developing its own browser internally.

Despite legal uncertainties and the threat of drawn-out regulatory battles, the opportunity to own Chrome could radically shift influence in the tech sector, especially while Google faces mounting antitrust scrutiny.

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Apple to shift US iPhone assembly to India by 2025

Apple is preparing to assemble all iPhones sold inside the US in India by next year, aiming to produce over 60 million units annually in the country by 2026.

The move comes in response to mounting geopolitical tensions and renewed tariff threats under former President Donald Trump’s trade agenda, which once imposed duties as high as 145% on Chinese imports.

The decision marks a major shift in Apple’s supply chain strategy, which has long depended on China. By doubling production in India, Apple hopes to reduce its exposure to trade-related risks instead of relying on short-term tariff exemptions.

Foxconn’s plant in Tamil Nadu and Tata Electronics are leading the effort, with support from India’s government through manufacturing incentives and subsidies.

While Apple remains dependent on Chinese suppliers for many components, shifting final assembly to India reflects growing urgency. Trump-era tariffs triggered a $700 billion market loss for the company in early 2024, prompting Apple to act swiftly instead of waiting for further shocks.

Around 20% of all iPhones are now made in India, a figure expected to rise sharply in the coming years.

Although challenges remain, such as the complexity of relocating the broader supply chain, analysts believe the shift is crucial for Apple’s long-term growth.

With US production capacity lacking the scale and workforce needed, India presents a more viable solution to ensure continued momentum and price stability in Apple’s most important market.

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TikTok moves into Japanese E-commerce

Chinese social media giant TikTok is preparing to launch its online shopping service in Japan within the coming months, according to a report by the Nikkei newspaper.

The company plans to begin recruiting sellers soon for TikTok Shop, its e-commerce arm that has already made waves in other regions through livestream-based sales of a wide range of products, from footwear to cosmetics.

The move is part of TikTok’s broader strategy to grow internationally, especially while its future in the US remains uncertain. The platform recently expanded into France, Germany and Italy, pushing further into the European market instead of relying solely on existing user bases.

TikTok Shop is known for offering attractive discounts and allowing users to earn commissions by promoting items in live broadcasts.

In contrast, TikTok’s operations in the US continue to face political and regulatory hurdles. A law passed in 2024 requires ByteDance, TikTok’s China-based parent company, to sell off its US assets by January 19.

Although President Donald Trump indicated a deal might still happen, he also suggested any agreement could be delayed due to shifting dynamics in US-China trade relations.

Despite not immediately responding to media requests for comment, TikTok seems determined to strengthen its foothold in international markets.

By entering Japan’s e-commerce space, the company signals it intends to expand through business innovation and regional diversification instead of waiting for political clarity in the United States.

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WTO faces crucial test amid Trump’s tariff gambit

The World Trade Organization (WTO) recently marked its 30th anniversary in a subdued ceremony, overshadowed by a growing threat to the global trade system – Donald Trump’s tariff policies. The US president’s plan to impose ‘reciprocal’ tariffs has unsettled global markets, causing the WTO to warn that international trade could shrink significantly.

Economists fear that Trump’s preference for bilateral deals over multilateral cooperation risks dismantling the rules-based system the WTO was designed to protect. WTO Director General Ngozi Okonjo-Iweala has called the situation an opportunity to reform and modernise the organisation, emphasising the urgent need to strengthen global trade rules.

While some countries are tempted to negotiate directly with Trump to shield their economies, experts like Dartmouth’s Robert Staiger stress that coordinated, multilateral action is the only way to preserve the integrity of the global trading framework. Past failures like the Doha Round haunt such efforts, but today’s crisis might spur the collective will needed for serious reform.

Inside the WTO, countries are exploring responses, from informal consultations to calls for emergency meetings. Meanwhile, China has seized the moment to bolster its standing as a defender of multilateralism, rallying other nations and filing formal complaints against US tariffs.

However, divisions persist, with some countries already negotiating separately with the US, undermining hopes for a unified front. The uncertainty surrounding America’s future in the WTO continues to loom large.

Though US funding is frozen and debates about membership persist, the appointment of a new US representative suggests Washington isn’t abandoning the body just yet. As Trump’s tactics force tough choices on the global community, experts warn that capitulating to bilateralism could permanently wreck the multilateral system – a risk the world can scarcely afford to take.

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