Motorola loses appeal over UK emergency services contract

Motorola has been denied permission to appeal against the UK competition regulator’s ruling that it was making excessive profits from its contract to provide communications for Britain’s emergency services. The Court of Appeal unanimously dismissed the company’s application, upholding the Competition and Markets Authority’s (CMA) decision to impose a price cap on Motorola’s Airwave network.

The CMA introduced the cap in July 2023, reducing the cost of the Airwave service to reflect a competitive market, cutting an estimated £200 million in annual charges. Motorola had previously challenged the regulator’s findings at a tribunal but was unsuccessful. CMA Executive Director George Lusty welcomed the court’s decision, stating it ensures fair pricing for emergency services and marks the end of the legal dispute.

A Motorola spokesperson defended the company’s role, emphasising that Airwave remains essential for UK public safety communications. Despite disagreeing with the CMA’s ruling, Motorola said it is focused on continuing to provide high-quality emergency communication services.

South Korea reviews trade response as Trump plans new tariffs

South Korea’s acting President Choi Sang-mok held discussions on Monday regarding the US plan to impose new 25 percent tariffs on steel and aluminium imports. The government meeting, attended by senior officials, also covered last week’s US-Japan summit and broader trade issues in the digital sector, according to the finance ministry.

Concerns have emerged over whether the US might seek to renegotiate the South Korea-US free trade agreement. Under the existing deal, agreed in 2007, South Korea avoided previous US steel tariffs by limiting exports to 70 percent of the average volume traded between 2015 and 2017. The finance ministry has yet to disclose any specific countermeasures.

During his first term in 2018, Donald Trump imposed a similar 25 percent tariff on all steel imports. The latest announcement signals a continuation of protectionist trade policies, with Trump also hinting at new reciprocal tariffs to address what he describes as unfair trade practices.

While the United States sources most of its steel from Canada, Brazil, and Mexico, South Korea remains a significant exporter. Seoul is now assessing its options as it prepares for potential economic and diplomatic challenges posed by Washington’s latest trade measures.

UK gambling websites breach data protection laws

Gambling companies are under investigation for covertly sharing visitors’ data with Facebook’s parent company, Meta, without proper consent, breaching data protection laws. A hidden tracking tool embedded in numerous UK gambling websites has been sending data, such as the web pages users visit and the buttons they click, to Meta, which then uses this information to profile individuals as gamblers. This data is then used to target users with gambling-related ads, violating the legal requirement for explicit consent before sharing such information.

Testing of 150 gambling websites revealed that 52 automatically transmitted user data to Meta, including large brands like Hollywoodbets, Sporting Index, and Bet442. This data sharing occurred without users having the opportunity to consent, resulting in targeted ads for gambling websites shortly after visiting these sites. Experts have raised concerns about the industry’s unlawful practices and called for immediate regulatory action.

The Information Commissioner’s Office (ICO) is reviewing the use of tracking tools like Meta Pixel and has warned that enforcement action could be taken, including significant fines. Some gambling companies have updated their websites to prevent automatic data sharing, while others have removed the tracking tool altogether in response to the findings. However, the Gambling Commission has yet to address the issue of third-party profiling used to recruit new customers.

The misuse of data in this way highlights the risks of unregulated marketing, particularly for vulnerable individuals. Data privacy experts have stressed that these practices not only breach privacy laws but could also exacerbate gambling problems by targeting individuals who may already be at risk.

Coinbase faces lawsuit over alleged unregistered securities sales

A United States federal judge has ruled that Coinbase must face a lawsuit from customers accusing the cryptocurrency exchange of illegally selling securities without registering as a broker-dealer. The judge rejected Coinbase’s argument that it did not qualify as a seller under federal securities law, citing claims that customers traded directly with the company rather than with third parties. Allegations under state laws in California, Florida, and New Jersey will also proceed.

The lawsuit, initially dismissed in 2023, was partially revived by an appeals court last year. Customers are seeking unspecified damages, while Coinbase maintains that it does not list or sell securities on its platform. The company remains confident it will prevail in court. Meanwhile, the U6S Securities and Exchange Commission (SEC) has also sued Coinbase, arguing that the exchange allowed trading of unregistered securities.

Coinbase has appealed a separate ruling that could clarify whether digital tokens qualify as investment contracts under US law. The company told the appeals court that a decision in its favour could remove regulatory uncertainty surrounding the cryptocurrency market. The outcome of these legal battles could have significant implications for the broader industry.

Scottish poet calls for AI-free literature

Scotland’s Makar, Peter Mackay, has voiced concerns about the growing role of artificial intelligence in literature, warning that it could threaten the livelihoods of new writers. With AI tools capable of generating dialogue, plot ideas, and entire narratives, Mackay fears that competing with machine-created content may become increasingly difficult for human authors.

To address these challenges, he has proposed clearer distinctions between human and AI-generated work. Ideas discussed include a certification system similar to the Harris Tweed Orb, ensuring books are marked as ‘100% AI-free.’ Another suggestion is an ingredient-style label outlining an AI-generated book’s influences, listing percentages of various literary styles.

Mackay also believes literary prizes, such as the Highland Book Prize, can play a role in safeguarding human creativity by celebrating originality and unique writing styles and qualities that AI struggles to replicate. He warns of the day an AI-generated book wins a major award, questioning what it would mean for writers who spend years perfecting their craft.

South Korea accuses DeepSeek of excessive data collection

South Korea’s National Intelligence Service (NIS) has raised concerns about the Chinese AI app DeepSeek, accusing it of excessively collecting personal data and using it for training purposes. The agency warned government bodies last week to take security measures, highlighting that unlike other AI services, DeepSeek collects sensitive data such as keyboard input patterns and transfers it to Chinese servers. Some South Korean government ministries have already blocked access to the app due to these security concerns.

The NIS also pointed out that DeepSeek grants advertisers unrestricted access to user data and stores South Korean users’ data in China, where it could be accessed by the Chinese government under local laws. The agency also noted discrepancies in the app’s responses to sensitive questions, such as the origin of kimchi, which DeepSeek claimed was Chinese when asked in Chinese, but Korean when asked in Korean.

DeepSeek has also been accused of censoring political topics, such as the 1989 Tiananmen Square crackdown, prompting the app to suggest changing the subject. In response to these concerns, China’s foreign ministry stated that the country values data privacy and security and complies with relevant laws, denying that it pressures companies to violate privacy. DeepSeek has not yet commented on the allegations.

UK officials push Apple to unlock cloud data, according to TWP

Britain’s security officials have reportedly ordered Apple to create a so-called ‘back door’ to access all content uploaded to the cloud by its users worldwide. The demand, revealed by The Washington Post, could force Apple to compromise its security promises to customers. Sources suggest the company may opt to stop offering encrypted storage in the UK rather than comply with the order.

Apple has not yet responded to requests for comment outside of regular business hours. The Home Office has served Apple with a technical capability notice, which would require the company to grant access to the requested data. However, a spokesperson from the Home Office declined to confirm or deny the existence of such a notice.

In January, Britain initiated an investigation into the operating systems of Apple and Google, as well as their app stores and browsers. The ongoing regulatory scrutiny highlights growing tensions between tech giants and governments over privacy and security concerns.

AI-driven ads boost Pinterest’s revenue and user engagement

Pinterest projected first-quarter revenue exceeding market expectations, driven by AI-powered advertising tools that enhanced ad spending. Shares surged 19% in extended trading following the announcement. The platform benefited from a strong holiday shopping season, setting new records for monthly active users and revenue in the fourth quarter.

AI-driven ad solutions, including the Performance+ suite, have attracted advertisers by automating and improving targeting. Increased engagement from Gen Z users and the introduction of more shoppable content have also made the platform more appealing to marketers. Expanding partnerships with Google and Amazon further diversified revenue streams, although most ad revenue remains concentrated in North America.

Ecommerce merchants using Shopify and Adobe Commerce can now integrate their products into Pinterest more easily. Analysts suggest that while global engagement is high, expanding third-party ad integrations will be crucial for long-term growth.

The company forecasts revenue between $837 million and $852 million, surpassing analyst expectations. Adjusted core earnings are expected to range from $155 million to $170 million, also exceeding estimates. Monthly active users reached a record 553 million, reflecting an 11% year-on-year increase.

Trump’s tariff move to hit Shein harder than Temu

The Trump administration’s move to end tariff-free low-cost imports into the US is expected to impact fast fashion retailer Shein more severely than online dollar-store competitor Temu. Both companies have heavily benefited from the ‘de minimis’ rule, which exempts shipments under $800 from import duties, with a significant portion of US daily packages coming from these retailers. While the Biden administration has scrutinised the rule, Temu has been quicker to adapt, diversifying its shipping strategy to minimise reliance on this exemption.

Temu, owned by PDD Holdings, has made considerable shifts in its model, including a move to bulk shipping to US warehouses instead of directly to consumers. By late 2023, about 50% of its US sales came from local warehouses. The company has also increased sea freight for bulkier items like furniture. This strategy contrasts with Shein’s continued dependence on air freight for its fast-fashion inventory, despite opening US centres and expanding its supply chain to countries like Brazil and Turkey.

While the Trump administration’s decision is set to raise prices for American consumers ordering from Shein and Temu, analysts believe the impact will not be catastrophic for these Chinese e-commerce giants. Shein, despite its reliance on fast inventory turnover and speed, is seen as capable of adapting, though the new tariffs and regulations will accelerate the need for supply chain diversification.

Recent changes in US Postal Service policies have added further uncertainty, reversing decisions on accepting parcels from China and Hong Kong. Analysts estimate that de minimis shipments could drop by up to 60%. However, experts remain confident that both Shein and Temu will navigate the changes, given the flexibility and competitiveness of their supply chains.

Italian activist targeted by spyware, Meta warns

Luca Casarini, a prominent Italian migrant rescue activist, was warned by Meta that his phone had been targeted with spyware. The alert was received through WhatsApp, the same day Meta accused surveillance firm Paragon Solutions of using advanced hacking methods to steal user data. Paragon, reportedly American-owned, has not responded to the allegations.

Casarini, who co-founded the Mediterranea Saving Humans charity, has faced legal action in Italy over his rescue work. He has also been a target of anti-migrant media and previously had his communications intercepted in a case related to alleged illegal immigration. He remains unaware of who attempted to hack his device or whether the attack had judicial approval.

The revelation follows a similar warning issued to Italian journalist Francesco Cancellato, whose investigative news outlet, Fanpage, recently exposed far-right sympathies within Prime Minister Giorgia Meloni’s political youth wing. Italy’s interior ministry has yet to comment on the situation.