EU court sides with Italy in Google antitrust case

The European Court of Justice has backed Italy‘s antitrust authority in a ruling against Google, stating that the tech giant’s refusal to allow Enel’s JuicePass app to work with its Android Auto platform could constitute an abuse of market power. This decision supports a 2021 fine of 102 million euros imposed by the Italian watchdog after Google blocked the e-mobility app. Google had argued that the refusal was due to security concerns and the absence of a specific template for compatibility, but the court disagreed, stating that dominant companies must ensure their platforms are interoperable with third-party apps unless doing so would harm security.

Although Google has since resolved the issue, the ruling sets a precedent for future cases involving platform dominance. The court acknowledged that companies could refuse interoperability if it compromises platform security, but if this is not the case, they must develop a compatible template in a reasonable timeframe. Google claimed the feature was only relevant to a small percentage of cars in Italy at the time, but the ruling now forces the company to comply with the antitrust decision. The case is final and cannot be appealed, and the Italian Council of State will follow the court’s guidance in its future ruling.

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Trump orders review of tariffs over digital service taxes

US President Donald Trump has directed his trade officials to revive investigations into digital service taxes imposed by foreign countries on American tech giants.

The move could lead to new tariffs on imports from nations like France, Canada, and India, which have introduced taxes targeting major firms such as Google, Meta, Apple, and Amazon. Trump argues that these levies unfairly exploit US companies and has vowed to protect America’s tax base from foreign appropriation.

The renewed probe follows previous investigations during Trump’s first term, where the US Trade Representative found that several countries discriminated against American firms, paving the way for potential retaliatory tariffs.

While the Biden administration initially imposed 25% tariffs on goods from countries with digital taxes, these duties were suspended to allow for global tax negotiations. However, with talks stalling and the US rejecting the 15% global minimum tax, Trump has now abandoned the deal entirely.

The new directive also calls for scrutiny of the Digital Markets Act and Digital Services Act imposed by the European Union, assessing whether they encourage censorship or undermine free speech for US companies.

As tensions grow, the US could impose fresh tariffs on billions of dollars worth of foreign imports. Trump has not yet revealed the specific tariff rates or the value of goods that may be targeted in this latest round of trade actions.

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AI safety cuts loom

The National Institute of Standards and Technology is set to cut up to 500 staff members, a move that could devastate the US AI Safety Institute and its related programme, Chips for America. Recent reports indicate that these cuts are primarily aimed at probationary employees, with some already receiving verbal notice of termination.

Established under a previous US presidential directive, the AI Safety Institute has faced an uncertain future ever since its inception. The current government’s plans to reduce its workforce are raising concerns among experts, who warn that such reductions will hinder the nation’s capacity to develop critical safety standards in AI development.

Critics from various AI safety and policy organisations have voiced their alarm, emphasising that these cuts occur at a time when specialised expertise is essential. The potential loss of institutional knowledge could leave the government ill-equipped to manage emerging risks in artificial intelligence.

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AI transforms fashion

London-based model Alexsandrah Gondora is now utilising an AI replica of herself for photo shoots, allowing designers and retailers to book her digital double without the need for her physical presence. This innovative approach not only saves time but also cuts down the costs traditionally associated with high-budget campaigns.

While this technology opens up endless creative possibilities, it has also sparked concerns among industry professionals. Critics fear that the widespread use of AI-generated images could eventually displace traditional models, not just in the UK, but globally. Replacing make-up artists, photographers, and even promote a homogenised standard of beauty.

Gondora, however, remains optimistic about the change, emphasising that she retains control over her digital likeness and benefits from the new model. The rise of such digital innovations is prompting calls for new regulations to ensure that models are fairly compensated and their rights protected in this evolving field.

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Alibaba commits $52 billion to AI and cloud infrastructure

Alibaba has announced plans to invest at least 380 billion yuan ($52.44 billion) in cloud computing and AI infrastructure over the next three years. This significant investment, revealed on Monday, follows the company’s earnings announcement on Friday, where it reported revenue of 280.15 billion yuan for the quarter ending December 31, slightly surpassing analysts’ expectations. The investment in AI and cloud computing will exceed the company’s total spending in these areas over the past decade.

The announcement marks a strategic push for Alibaba in the rapidly growing AI sector, positioning the company as a key player in China’s AI race. This has already paid off in the stock market, with Alibaba’s shares climbing over 68% so far this year, reflecting strong investor confidence. The move also comes as other Chinese tech giants, such as ByteDance, are making similar investments, with ByteDance reportedly allocating over 150 billion yuan this year to enhance its AI capabilities.

This wave of investment underscores the growing importance of AI and cloud computing to China’s tech landscape. It also highlights the competitive race between Chinese firms to dominate these sectors and secure their positions in the global technology arena.

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Amgen expands in India with $200 million investment

US drugmaker Amgen has announced a $200 million investment in a new technology centre in southern India, which will focus on using AI and data science to support the development of new medicines. The centre, located in Hyderabad, is expected to have a workforce of around 2,000 by the end of the year, with 300 employees already on-site. Amgen plans to make additional investments in the coming years as part of its ongoing expansion in India.

Amgen’s decision to invest in India reflects the growing importance of the country in the global pharmaceutical industry, often referred to as the ‘pharmacy of the world.’ The company’s new centre aligns with broader efforts by global pharmaceutical companies to increase their presence in India. The BioAsia conference in Hyderabad will feature executives from major drugmakers, including Amgen, Eli Lilly, and Novartis.

Amgen’s move comes amid heightened cooperation between India and the US, which recently launched discussions for an early trade deal. A key focus of these talks is to promote collaboration in critical and emerging technologies, which includes areas like pharmaceuticals. US officials have praised Amgen’s expansion as a model for how both countries can work together to harness innovation and technology.

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Waze faces stricter EU rules as platform reaches key user threshold

Alphabet’s mapping app, Waze, must strengthen efforts to combat illegal online content after exceeding the user threshold under EU regulations.

The European Commission confirmed Waze reported 50.5 million average monthly users in the second half of 2024, surpassing the 45 million mark set by the Digital Services Act (DSA). This designation means Waze must comply with stricter content moderation and transparency obligations.

Three adult content platforms—Pornhub, Stripchat, and XVideos—could see a reduction in regulatory scrutiny after reporting lower user numbers.

Previously classified as Very Large Online Platforms (VLOPs), the sites recorded average monthly users below the required threshold in late 2024. The European Commission acknowledged that a delisting is possible, though general DSA rules would still apply.

The Commission is reviewing platform data and expects to issue decisions within two months. Companies failing to meet DSA requirements could face penalties of up to 6% of their global annual revenue.

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US lawmakers criticise EU’s Digital Markets Act

US House Judiciary Chair Jim Jordan has called on European Union antitrust chief Teresa Ribera to clarify how the EU enforces its Digital Markets Act (DMA), which he believes disproportionately targets American companies. His request follows a memorandum signed by US President Donald Trump, warning that the administration would scrutinise the EU’s new rules regulating how US companies interact with consumers in Europe.

Jordan and his co-signatory, Scott Fitzgerald, criticised the DMA’s hefty fines, which can reach up to 10% of a company’s global revenue for violations. They argue that the rules not only disadvantage US companies but also potentially benefit Chinese firms, stifling innovation and handing over valuable data to adversarial nations. The letter urges Ribera to address these concerns with the judiciary committee by March 10.

The European Commission, where Ribera is the second-highest official, has rejected claims that its laws are aimed at American companies. Ribera defended the DMA in a recent interview, stating that the EU should not be pressured into altering laws that have already been approved by European lawmakers.

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Huawei’s Ren discusses China’s tech growth with Xi

Huawei’s founder Ren Zhengfei told President Xi Jinping that China’s concerns about a lack of domestically developed chips and operating systems have eased, following a meeting with key entrepreneurs. According to Chinese state media, Ren expressed confidence that China would rise faster, thanks to its advancements in technology, particularly in semiconductors and software. The phrase ‘lack of core and soul,’ which refers to the absence of critical technology like chips and operating systems, was first used in 1999 to highlight challenges in China’s information industry.

The meeting, which included prominent founders such as BYD’s Wang Chuanfu and Xiaomi’s Lei Jun, discussed the achievements and growth in sectors like electric vehicles and electronics. Ren’s comments reflected the progress made despite challenges like US sanctions, with Huawei playing a key role in pushing for China’s self-sufficiency. Wang shared how China’s EV industry had grown significantly, while Lei praised Xi’s leadership, stating that under his guidance, any challenges could be overcome.

Other entrepreneurs, including representatives from Will Semiconductor, Unitree Robotics, and New Hope Group, also spoke at the meeting, although details about their comments were not widely disclosed. The meeting was part of a broader push for China to strengthen its technological independence.

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Google finalising locations for first Indian retail stores

Google is close to selecting locations for its first physical retail stores in India, marking its first such expansion outside the US. The company views India as a key market and has invested $10 billion in the country. Currently, Google operates only five retail stores, all in the US, selling Pixel phones, watches, and earbuds.

New Delhi and Mumbai are emerging as the most likely choices for the initial stores, with Bengaluru also considered. The planned outlets are expected to be around 15,000 square feet and may take at least six months to open. If successful, Google is likely to expand with more stores across the country.

By launching physical stores, Google aims to adopt a retail strategy similar to Apple’s, which has helped drive massive revenue growth over the past two decades.

Apple opened its first company-run stores in India in 2023 and currently dominates the country’s premium smartphone market. Google, which started manufacturing Pixel phones in India, is looking to strengthen its presence in this segment.

Before opening the stores, Google must navigate regulatory and compliance requirements. The company also faces legal challenges in India, including antitrust cases related to its in-app billing system and smart TV market practices. Despite these hurdles, Google remains committed to executing its retail expansion in India.

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