Italy’s antitrust authority has fined two Amazon subsidiaries 10 million euros for alleged unfair commercial practices, a decision that Amazon plans to challenge through an appeal. The regulator accused Amazon of limiting consumers’ freedom of choice by automatically pre-setting a ‘Subscribe and Save’ option on its website for a wide range of products. This practice encouraged consumers to opt for recurring deliveries rather than one-off purchases, potentially restricting their ability to choose freely.
According to the authority, pre-ticking recurring purchases could lead consumers to buy products periodically, even without a genuine need, thus curtailing their freedom to choose. Amazon responded by contesting the decision and stating its intention to appeal. The company defended its ‘Subscribe and Save’ program, highlighting its benefits to customers regarding cost savings and convenience for routine purchases.
Amazon emphasised that the ‘Subscribe and Save’ option, which allows customers to schedule regular deliveries of essential items with a discount, has resulted in significant savings exceeding 40 million euros since its introduction in Italy. Despite the fine and regulatory scrutiny, Amazon maintains that its program continues to provide value to customers by simplifying their shopping experience and offering discounts on recurring purchases of everyday products.
Cryptocurrency exchange Binance is facing a class-action lawsuit in Canada for allegedly violating local securities laws. The lawsuit, filed in the Ontario Superior Court of Justice, claims that cryptocurrency exchange sold crypto derivative products without proper registration, breaching the Ontario Securities Act and federal law.
Plaintiffs, are seeking damages and the rescission of unlawful derivatives trades. They argue that tens of thousands of Canadian users invested in Binance’s cryptocurrency derivatives products. The certification motion highlights the significant involvement of retail investors in cryptocurrency derivatives trading.
The class-action lawsuit follows Binance’s announcement in June 2021 to cease operations in Ontario after a warning from the Ontario Securities Commission. Despite Binance’s departure from Canada in May 2023, the investigation into its activities by local authorities has continued. The court motion confirms that the Ontario Securities Commission is actively examining the defendants.
Notably, no comment or response from Binance regarding the class-action lawsuit has been provided in the news text. Therefore, the official stance of Binance on the allegations remains undisclosed.
Thailand has announced plans to block “unauthorized” cryptocurrency platforms in order to enhance law enforcement efforts to combat online crime. The decision was made following a meeting of the Technology Crime Prevention and Suppression Committee, which instructed the country’s Securities and Exchange Commission (SEC) to submit information about unauthorised digital asset service providers to the Ministry of Digital Economy and Society. The goal is to block access to these platforms.
To facilitate a smooth transition, users will be provide with sufficient time to manage their accounts before losing access to the services. In an announcement, the SEC urged users of affected platforms to promptly withdraw their assets. The Thai SEC also cited previous actions taken by countries such as India and the Philippines, which have blocked unauthorized cryptocurrency platforms.
Thai regulators have been striving to strike a balance between supporting the cryptocurrency ecosystem and preventing fraud. While institutional investors and high-net-worth individuals have been allowed to invest in cryptocurrency exchange-traded funds (ETFs), and retail investors have been able to invest without limitations in digital tokens backed by real estate or infrastructure, custodians are required to have contingency plans in place in case of unforeseen issues.
The move to block unauthorized crypto platforms in Thailand reflects the global trend towards regulation in the cryptocurrency industry. The aim is to enhance the efficiency of law enforcement in addressing online criminal activities associated with cryptocurrencies, while also ensuring a secure and trustworthy environment within the crypto space.
Apple is rolling out a significant change in its approach to distributing iOS apps in the EU. Starting Tuesday, developers will be able to offer apps for direct download from their websites. This move breaks from Apple’s traditional walled garden model and responds to new EU regulations to foster competition and consumer protection in digital markets.
Under these changes, developers meeting Apple’s criteria, including notarization requirements, can distribute iPhone apps directly to the EU users. However, this comes with new terms, including a ‘core technology fee’ of €0.50 for each first annual install over 1 million, regardless of distribution location.
The company has also made other adjustments in compliance with the Digital Markets Act (DMA), such as allowing marketplace apps where developers can run their own app stores on iOS and offering greater flexibility in in-app payments. However, Apple maintains its stance on security risks associated with sideloading apps, emphasising safety measures in the new distribution process.
While this shift opens up new avenues for developers to reach users in the EU, its adoption remains to be determined. Apple acknowledges some interest from developers but emphasises that it’s a new capability, and the extent of its adoption is yet to be seen. This move adds to the evolving landscape of app distribution options in the EU alongside the existing App Store distribution and marketplace app submissions.
The EU antitrust regulators are scrutinising a proposal by Apple to determine if it meets their directive allowing Spotify and other music streaming services to inform users of alternative payment methods outside of Apple’s App Store. This review follows the European Commission‘s recent order and hefty fine imposed on Apple for breaching competition rules. Under Apple’s proposal, services like Spotify can now include links on their apps directing users to their websites to purchase digital content or services, circumventing Apple’s payment system.
However, there’s a catch: any transactions resulting from these links will incur a 27% fee to Apple, including subsequent auto-renewing subscriptions. The European Commission is evaluating whether Apple’s proposal fully aligns with its decision. If there’s suspicion of non-compliance, the Commission may issue a Statement of Objections to address the concerns.
Apple insists that its plan adheres to the Commission’s decision, although Spotify has expressed frustration over Apple’s delay in complying with the EU order, which was issued five weeks ago. Meanwhile, the Commission is conducting a separate investigation into Apple’s App Store rules and its recent measures to comply with the Digital Markets Act (DMA) amid concerns that these could restrict developers from freely communicating and promoting their offerings.
Why does it matter?
The outcome of the EU’s assessment will determine whether Apple faces additional antitrust charges and penalties if its proposal is found to fall short of the Commission’s requirements. The ongoing dispute highlights the broader regulatory scrutiny facing tech giants like Apple over their market practices and dominance in the digital ecosystem, particularly concerning payment systems and app store policies.
Terraform Labs PTE Ltd. and its former CEO, Do Kwon, have been found liable for defrauding investors in crypto asset securities by a jury in the United States District Court for the Southern District of New York. This verdict follows the court’s previous determination that the defendants unlawfully offered and sold these securities in violation of the registration provisions of the US Securities Act.
According to Gurbir S. Grewal, the Director of the Division of Enforcement at the Securities and Exchange Commission (SEC), this decision marks a victory in combating crypto fraud. The defendants allegedly deceived investors by misrepresenting the stability of the crypto asset security known as Terra USD, as well as providing false information about a popular payment application supposedly utilizing Terraform’s blockchain. These deceptions resulted in devastating financial losses for investors and caused the market value of Terra USD to plummet by tens of billions overnight.
“For all of crypto’s promises, the lack of registration and compliance has very real consequences for real people.” Grewal expresses the SEC’s commitment to utilizing all available tools to protect investors, while also urging the crypto market to align itself with regulatory requirements.
The defendants allegedly engaged in fraudulent activities by providing misleading information about the stability of a crypto asset security and the application of their blockchain technology. As a result, investors suffered significant financial losses and the market value of Terra USD experienced a sharp decline.
Google has initiated legal action against two alleged crypto scammers for distributing fraudulent cryptocurrency trading apps through its Play Store, deceiving users and extracting money from them. Based in China and Hong Kong, the accused developers uploaded 87 deceptive apps that reportedly conned over 100,000 individuals. According to Google, users suffered losses ranging from $100 to tens of thousands per person due to these schemes, which have been operational since at least 2019.
The lawsuit marks Google’s proactive stance against such scams since Google swiftly removed the fraudulent apps from its Play Store. The company’s general counsel, Halimah DeLaine Prado, emphasised that holding these bad actors accountable is crucial to safeguarding users and maintaining the integrity of the app store. The company claims it incurred over $75,000 in economic damages while investigating this fraud.
The scam reportedly enticed users through romance messages and YouTube videos, urging them to download fake cryptocurrency apps. The scammers allegedly misled users into believing they could profit by becoming affiliates of the platforms. Once users invested money, the apps displayed false investment returns and balances, preventing users from withdrawing funds or imposing additional fees, ultimately leading to more financial losses.
Google’s legal action accuses the developers of violating its terms of service and the Racketeer Influenced and Corrupt Organizations Act. The company seeks to block further fraudulent activities by the defendants and aims to recover unspecified damages. The legal move represents Google’s commitment to combating app-based scams and protecting users from deceptive practices on its platform.
Argentina is implementing new rules for legitimate crypto exchange activities. These efforts started on March 14, 2024, when the Argentine Senate moved forward with legislation to curb money laundering and terrorism financing. It includes a mandate for for creating a registry of “virtual asset service providers”. Argentina’s National Securities Commission (CNV) proclaimed that providers that are not registered will not be allowed to operate.
On March 25, CNV announced that crypto service providers must adhere to Financial Action Task Force (FATF) guidelines. As part of Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) law reforms, crypto businesses must now register with the Argentine government.
Upon Javier Milei’s ascension to power in Argentina in December 2023, expectations were high for potential benefits to Bitcoin and cryptocurrency adoption due to his economic plans and pro-crypto views. However, regulatory measures have increased under his administration raising concerns about the future of digital assets in the country.
The Monetary Authority of Singapore (MAS) has announced the expansion of its regulation on cryptocurrency-related activities to include custodial services and cross-border money transfers. The amendments to the Payment Services Act (PS Act) aim to provide regulatory clarity and user protection in the cryptocurrency sector.
Under the new regulations, digital payment token (DPT) or cryptocurrency service providers will be required to comply with user protection and financial stability-related requirements. These include segregating customers’ assets in a trust account, maintaining proper books and records, and ensuring effective systems and controls are in place.
The expansion of the regulations is seen as a response to the volatility and turmoil experienced in the cryptocurrency sector, including the crash of FTX. By broadening the scope of regulation, Singapore aims to address regulatory gaps and promote stability in the cryptocurrency ecosystem.
Angela Ang, a senior policy adviser for blockchain intelligence firm TRM Labs and a former MAS regulator, expressed that the expansion of the regulations is a long-awaited development that provides regulatory clarity to key aspects of the crypto ecosystem, particularly custodial services.
The amendments are scheduled to take effect within six months from 4th April 2024. Existing entities engaged in crypto-related activities under the Payment Services Act are required to initiate a transition process within 30 days and submit a license application within six months. To obtain the license, these entities must demonstrate compliance with anti-money laundering and countering the financing of terrorism requirements, which will be validated by an external auditor within nine months.
Failure to comply with the requirements will result in entities being required to cease all cryptocurrency-related activities
Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, has been sentenced to 25 years in prison by U.S. federal judge Lewis Kaplan for his involvement in a fraud and conspiracy scheme that led to the collapse of FTX. The judge criticized Bankman-Fried for his lack of remorse and characterized his attempts to portray himself as an altruistic individual to the public as nothing more than an act. In addition to his prison sentence, Bankman-Fried has been fined $11 billion and will have to sell off assets such as a private jet. The defense’s argument claiming that Bankman-Fried was not likely to commit future crimes was dismissed by the judge.
Bankman-Fried’s 25-year prison sentence follows his conviction on seven criminal counts in November, a year after FTX filed for Chapter 11 bankruptcy. He plans to appeal the conviction, which, according to his lawyer, cannot proceed until after Kaplan’s sentencing decision.
During the sentencing hearing, the judge heard comments from various individuals involved in the case, including prosecutors, Bankman-Fried’s attorney, a victim, a lawyer representing other FTX victims, and Bankman-Fried himself. U.S. Attorney Damian Williams stated that the sentence sends a powerful message that financial crimes will face swift and severe consequences. The judge also noted that Bankman-Fried’s reputation has suffered greatly, but acknowledged his persistence and marketing skills while justifying the lengthy sentence.
Bankman-Fried’s attorney, Mark Mukasey, argued that his client’s decisions were guided by mathematical considerations rather than malice.
In his statement, Bankman-Fried expressed concern for the FTX customers awaiting the return of their funds, emphasizing that he was more focused on their needs rather than his own emotional life or theoretical future children. He acknowledged that his useful life was likely over, having spent the last six months in the Metropolitan Detention Centre in Brooklyn. Bankman-Fried also claimed that there were sufficient assets for FTX’s creditors to be repaid in full, despite the self-induced “liquidity crisis” the company faced. He expressed regret for his role in FTX’s collapse and took responsibility for it, extending apologies to his former friends and government witnesses.
