Apple’s latest charges for app developers are under fresh scrutiny from the European Union’s antitrust regulators. Concerns have been raised over the company’s new ‘core technology fee,’ which requires developers to pay €0.50 per installed app. Regulators are investigating whether the fee could increase costs for software makers or force them to change their business models.
The European Commission has circulated new questionnaires to developers, seeking insights on the financial impact of the fee and Apple’s claim that the changes will lower costs for most developers. The inquiry comes as major US tech companies urge President-elect Donald Trump to challenge EU regulations targeting American firms. Apple has not yet responded to the EU’s latest investigation.
Under the EU’s Digital Markets Act (DMA), Apple must comply with stricter rules on how it operates its App Store. The legislation allows regulators to fine major tech platforms up to 10% of their annual revenue for non-compliance. Apple, which has faced ongoing scrutiny in both the US and Europe over developer fees, says that 85% of developers using its App Store do not pay any commission.
Allstate is facing a lawsuit from the state of Texas over claims that it secretly tracked millions of drivers through their mobile phones without consent. Texas Attorney General Ken Paxton alleges that the insurer collected location data through apps like GasBuddy and Life360 to create a vast driving behaviour database. The data was then used to raise insurance premiums, deny coverage, or sell to other insurers for profit.
The lawsuit also claims Allstate recently started purchasing vehicle location data directly from manufacturers, including Toyota, Mazda, and Stellantis brands like Jeep and Dodge. Texas accuses the company of violating state laws on data privacy and deceptive insurance practices. Prosecutors are seeking financial penalties, consumer restitution, and the destruction of unlawfully obtained data.
General Motors faced a similar lawsuit from Texas last year over allegations of secretly collecting and selling driver data. Allstate, headquartered in Illinois, has yet to respond to the claims. If found guilty, the company could face significant fines and legal consequences.
The European Commission is reassessing its investigations into major tech companies, including Apple, Meta, and Google, under its landmark Digital Markets Act (DMA), according to the Financial Times. The review, which covers cases initiated since March 2024, comes as tech giants urge President-elect Donald Trump to push back against EU regulatory scrutiny. Sources suggest Trump’s presidency has influenced the review, though it was not the direct trigger.
The DMA, implemented in 2022, seeks to curb the dominance of Big Tech by imposing strict rules on their practices and fines of up to 10% of annual revenue for violations. The review may lead to narrowing or altering the scope of current probes, with all decisions and potential fines paused during this process. Technical work on the cases, however, will continue.
This development coincides with Meta’s recent overhaul of its US fact-checking program and CEO Mark Zuckerberg’s signals of a more conciliatory stance toward the Trump administration. Meanwhile, EU regulators are also examining whether Elon Musk’s social media platform X has violated content moderation rules, further highlighting the tech industry’s complex regulatory challenges.
The US Supreme Court has rejected Meta’s attempt to block a massive class action lawsuit by advertisers accusing the company of inflating audience metrics. Advertisers claim Meta, the parent company of Facebook and Instagram, overstated the number of potential ad viewers, resulting in significant overcharges.
A lower court ruled that advertisers could seek damages collectively, stating Meta’s conduct was consistent across all affected parties. Plaintiffs, led by DZ Reserve and Cain Maxwell, argue Meta exaggerated potential audience figures by as much as 400%, focusing on social media accounts rather than unique users.
Meta challenged the decision, stating courts have rejected the ‘common course of conduct’ standard and that individual advertisers may not have relied on the figures. The company further criticised the court for excessive leniency when certifying class actions.
Potential damages could exceed $7 billion, covering millions of advertisers since 2014. Advertising remains Meta’s primary revenue source, with $116.1 billion generated in the first nine months of 2024.
Nvidia’s latest Blackwell AI chip racks are facing overheating issues, prompting major customers to delay or reduce their orders. Early shipments have reportedly suffered from technical glitches, affecting how the chips connect within data centre racks. As a result, companies including Microsoft, Amazon, Google, and Meta have scaled back their purchases, some opting for older Nvidia AI chips instead.
The hyperscalers had initially placed orders worth at least $10 billion each but are now reconsidering their plans. Microsoft, for example, intended to install 50,000 Blackwell chips in a Phoenix facility but has since switched to Nvidia’s previous-generation Hopper chips at OpenAI’s request. Nvidia has not commented on the situation, while Microsoft, Google, and Meta have yet to respond to inquiries.
Concerns over Nvidia’s sales extend beyond the overheating issues, as the US government has announced tighter restrictions on AI chip exports, potentially impacting revenue. Despite the setbacks, CEO Jensen Huang remains optimistic, stating that the company is still on track to generate billions in revenue from Blackwell chips this quarter. Huang has also denied earlier reports of overheating in liquid-cooled Blackwell servers.
Apple is defending itself against a $1.8 billion mass lawsuit in a London tribunal, accused of abusing its market dominance by charging app developers a 30% commission through its App Store. The lawsuit, brought on behalf of around 20 million UK iPhone and iPad users, claims the fees have unfairly inflated app costs for consumers.
Rachael Kent, the academic leading the case, argues Apple has leveraged its monopoly to exclude competition and impose restrictive terms on app developers. Apple’s lawyers counter that the fees reflect the benefits of its iOS ecosystem, emphasising its focus on security, privacy, and innovation. They also noted that most developers are exempt from paying commissions.
This trial marks the UK’s first class-action-style lawsuit against a tech giant under its evolving legal framework. Similar cases against Google, Meta, and Amazon are in progress, including a $1.1 billion lawsuit against Google over Play Store fees scheduled for later this year. The trial is expected to last seven weeks, with testimony from Apple’s CFO anticipated soon.
Britain’s antitrust regulator, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search operations to assess their impact on consumers, businesses, and competition. With Google handling 90% of UK online searches and supporting over 200,000 businesses through advertising, the CMA aims to ensure fair competition and innovation in search services, said CMA chief Sarah Cardell.
The probe will evaluate whether Google’s dominant position restricts market entry and innovation, as well as whether it provides preferential treatment to its own services. The CMA will also investigate the company’s extensive collection and use of consumer data, including its role in AI services. The findings, expected within nine months, could lead to measures such as requiring Google to share data with rivals or giving publishers more control over their content.
Google has defended its role, stating that its search services foster innovation and help UK businesses grow. The company pledged to work constructively with the CMA to create rules that benefit both businesses and users. The investigation follows similar scrutiny in the US, where prosecutors have pushed for major reforms to curb Google’s dominance in online search.
China’s State Administration for Market Regulation (SAMR) announced plans to strengthen regulations on online platforms and the growing livestream e-commerce sector. The move aims to foster fair competition, protect smaller businesses, and improve consumer trust, according to SAMR Deputy Head Shu Wei.
At a press briefing, Shu highlighted plans to enhance transparency, reduce merchants’ operational costs, and address concerns over platform practices that disrupt fair competition. The regulator aims to improve existing frameworks to safeguard merchants’ and consumers’ rights against platform rule abuse.
The SAMR also intends to crack down on deceptive marketing in livestream e-commerce, a sector experiencing rapid growth but facing criticism for misleading tactics. The initiative is expected to address dishonest practices while ensuring a healthier and more balanced market environment.
Hewlett Packard Enterprise (HPE) has secured a deal worth over $1 billion to supply AI-optimised servers to Elon Musk’s platform X. The agreement, finalised late last year, was reported by Bloomberg News, citing sources familiar with the matter. Dell Technologies and Super Micro Computer had also submitted bids but were not selected.
The AI server market has experienced significant demand as businesses seek advanced hardware for AI applications. Musk’s ventures, includingTesla and xAI, have become key customers for this technology.
HPE shares saw a 1% rise during afternoon trading following the report. The company declined to comment on the deal.
Infosys has filed a counterclaim against Cognizant in a Texas federal court, accusing the US-based technology firm of anti-competitive behaviour. The Indian company alleges that Cognizant included restrictive clauses in client contracts, preventing them from working with rival firms and withholding necessary software training.
The Bengaluru-based software giant also claims Cognizant engaged in targeted poaching of its senior executives. The hiring of former Infosys president S Ravi Kumar as Cognizant’s CEO in 2023 allegedly delayed the development of Infosys’ Helix software product.
Cognizant denied the allegations, stating it supports fair competition but accused Infosys of improperly using its intellectual property. The counterclaim follows a 2023 lawsuit by Cognizant’s subsidiary TriZetto, which accused Infosys of stealing trade secrets related to healthcare insurance software.
Infosys is seeking damages, including legal fees, but did not disclose the amount. The case is being heard in the US District Court for the Northern District of Texas.
