Economic Archives | Page 422 of 708 | Digital Watch Observatory

Japan targets Apple and Google with new law

The Japan Fair Trade Commission (JFTC) announced on Monday that it has designated Apple Inc., its Japanese subsidiary iTunes K.K., and Google LLC under the new smartphone software competition promotion law.

The law targets dominant IT companies in the smartphone app market, regulating areas like smartphone operating systems, app stores, web browsing software, and search engines.

The primary aim of the law is to prevent these giants from blocking market entry for other companies or giving preferential treatment to their own services. The law will take full effect in December, with the designated companies required to correct any problematic practices.

Apple will be required to allow other companies into the App Store business instead of monopolising it, fostering price competition. Google will be prohibited from displaying its services in search results instead of favouring them.

In response, both companies expressed concerns, with Apple questioning the impact on user experience and Google vowing to engage in discussions to ensure fairness.

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Sony Singapore now accepts USDC for online purchases

Sony Singapore has enabled cryptocurrency payments, allowing shoppers to use USDC for purchases on the Sony Store Online. It is Sony’s first direct engagement with crypto transactions in the region.

USDC provides secure transactions without price volatility concerns. While Sony currently supports only USDC, industry experts anticipate the company will expand its cryptocurrency payment options.

Sony Block Solutions Labs, a subsidiary of the tech giant, recently introduced Soneium. The Ethereum layer-2 network is designed for digital collectibles and gaming economies. Soneium previously integrated bridged USDC, further strengthening its role in Sony’s blockchain ambitions.

The expansion of crypto-friendly services reflects a growing trend. Crypto.com, the payment provider for Sony’s USDC transactions, has been actively expanding. It includes a recent deal with Trump Media and plans for cryptocurrency-backed ETFs.

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Nokia expands 5G partnership with Airtel

Nokia has signed a multi-year deal with Bharti Airtel to expand their core network collaboration instead of maintaining a limited partnership, aiming to enhance 5G service delivery.

The move will integrate 5G and 4G technologies into a unified server setup instead of running them separately, while also helping Airtel grow its 4G/5G customer base.

Nokia’s Fixed Wireless Access (FWA) will provide additional solutions for home broadband and enterprise-critical applications instead of relying solely on traditional infrastructure.

The rollout will cover network automation across most Airtel service regions in India, helping the telecom giant optimise its hardware footprint and reduce costs per bit by using appliance-based Packet Core gateways.

Airtel CTO Randeep Sekhon highlighted that Nokia’s Packet Core deployment will improve network quality and reliability instead of allowing congestion to impact customers.

Nokia’s president of cloud and network services, Raghav Sahgal, emphasised that this collaboration strengthens Airtel’s 5G standalone (SA) readiness, reinforcing Nokia’s leadership in core network solutions in India and globally.

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UK regulator approves BlackRock’s crypto registration

BlackRock has received approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm. With this registration, BlackRock can now offer its new European Bitcoin exchange-traded product (ETP) in the UK.

The iShares Bitcoin ETP (IB1T) recently began trading on Euronext Paris and Amsterdam. Initially launched with a fee waiver reducing costs to 0.15% until the end of 2024, its expense ratio will increase to 0.25% next year.

Each IB1T share is backed by actual Bitcoin held by Coinbase. The product provides investors with regulated exposure to cryptocurrency.

The FCA’s approval process remains stringent, with only 14% of applications granted. BlackRock’s move follows the success of its US-listed iShares Bitcoin Trust (IBIT). The fund has accumulated over $48 billion in assets.

The company’s European expansion reflects growing demand for Bitcoin investment products beyond North America.

BlackRock CEO Larry Fink has suggested that mounting US debt could weaken the dollar’s dominance. It could reinforce Bitcoin’s appeal as a store of value. He highlighted a potential shift among investors seeking alternatives amid rising government expenditure.

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Meta’s Hypernova smart glasses promise cutting-edge features and advanced display technology

Meta is preparing to launch an advanced pair of smart glasses under the codename Hypernova, featuring a built-in display and gesture control capabilities.

The new device, developed in partnership with Ray-Ban, aims to enhance user convenience by offering features such as media viewing, map navigation, and app notifications.

Unlike previous models, the Hypernova glasses will have a display located in the lower right corner of the right lens, allowing users to maintain a clear view through the left lens.

The glasses will be powered by Qualcomm silicon and run on a customised version of Android. Meta is also developing a wristband, codenamed Ceres, which will provide gesture-based controls, including pinch-to-zoom and wrist rotation.

The wristband is expected to be bundled with the glasses, offering users a more seamless and intuitive experience.

Retail pricing for the Hypernova smart glasses is expected to range between $1,000 and $1,400, significantly higher than current VR-ready smart glasses like the Viture Pro and Xreal One.

However, Meta aims to differentiate its product through enhanced functionality and fashionable design, making it an appealing option for consumers looking for both style and utility.

The Hypernova glasses are projected to hit the market by the end of 2025. Meta is also developing additional augmented reality products, including the Orion holographic glasses and research-focused Aria Gen 2 AR glasses.

Competitors like Samsung are expected to launch similar Android-based smart glasses around the same time, setting the stage for an exciting year in the wearable tech market.

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OpenAI is now valued at $300 billion after new funding

OpenAI has secured a $40 billion funding deal from SoftBank, pushing its valuation to $300 billion instead of staying below that mark, making it the third most valuable private company in the world.

It now ranks behind Elon Musk’s SpaceX, valued at around $350 billion, instead of taking the top spot, and TikTok’s parent company, ByteDance, which stands at approximately $315 billion.

The valuation surpasses major firms like Chevron, Salesforce, McDonald’s, Pepsico, and Samsung instead of lagging behind them.

Funding is structured in two phases, beginning with an initial $10 billion investment. The remaining $30 billion is expected to be provided by the end of 2025, as reported by the New York Times.

OpenAI stated that this capital will allow the company to advance AI research instead of stagnating and expand its infrastructure with more powerful tools.

Founded in 2015 as a non-profit, OpenAI later shifted to a capped-profit model to attract investment instead of relying solely on donations while continuing its work in AI development.

Despite facing operational challenges and legal disputes, including a high-profile lawsuit from Musk opposing its transition to a profit-driven model, OpenAI has continued to grow.

Its ChatGPT platform now boasts 500 million weekly users instead of seeing a decline. In February, investors, including Musk, sought control of the firm, but CEO Sam Altman firmly rejected the proposal, reaffirming that ‘OpenAI is not for sale’ instead of giving in to external pressure.

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Alphawave acquisition eyed by arm for AI advancements

Arm Holdings, owned by SoftBank, recently considered acquiring UK-based semiconductor IP supplier Alphawave to bolster its artificial intelligence processor technology.

The focus was on Alphawave’s ‘serdes’ technology, essential for rapid data transfer in AI applications requiring interconnected chips.

Despite initial discussions, Arm decided against pursuing the acquisition. Alphawave had been exploring a sale after attracting interest from Arm and other potential buyers.

Alphawave’s joint venture in China, WiseWave, added complexity to the potential deal due to national security concerns raised by US officials.

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Hackers exploit AI: The hidden dangers of open-source models

As AI adoption grows, security experts warn that malicious actors are finding new ways to exploit vulnerabilities in open-source models.

Yuval Fernbach, CTO of machine learning operations at JFrog, notes that hackers are increasingly embedding harmful code within AI models, making it easier to steal information, manipulate outputs, or disrupt services.

A recent study by JFrog and Hugging Face found that of over one million AI models analyzed, 400 contained malicious code—roughly a 1% chance of encountering a tainted model.

However, the risk has escalated: while the number of available AI models has tripled, attacks have increased sevenfold.

The widespread use of open-source models, often chosen over costly proprietary alternatives, exacerbates security concerns.

Many companies lack proper oversight, with 58% of surveyed firms admitting to having no formal policy for vetting AI models. Meanwhile, banks and other industries worry that AI’s rapid evolution outpaces their ability to implement safeguards.

With agentic AI poised to automate decision-making, businesses face an urgent need to strengthen AI security measures before vulnerabilities lead to significant financial and operational consequences.

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AI technology sparks debate in Hollywood

Hollywood is grappling with AI’s increasing role in filmmaking, with executives, actors, and developers exploring the technology’s potential. At a recent event, industry leaders discussed AI-generated video, heralded as the biggest breakthrough since the advent of sound in cinema.

Despite its growing presence, AI’s impact remains controversial, especially after recent strikes from actors and writers seeking protection from AI exploitation.

AI technology is making its way into movies and TV shows, with Oscar-nominated films like Emilia Perez and The Brutalist using AI for voice alterations and actor de-aging. AI’s capacity to generate scripts, animation, and even actors has led to fears of job displacement, particularly for background actors.

However, proponents like Bryn Mooser of Moonvalley argue that AI can empower filmmakers, especially independent creators, to produce high-quality content at a fraction of traditional costs.

While Hollywood is still divided on AI’s potential, several tech companies, including OpenAI and Google, are lobbying for AI models to access copyrighted art to fuel their development, claiming it’s vital for national security.

The push has met resistance from filmmakers who fear it could undermine the creative industry, which provides millions of jobs. Despite the opposition, AI’s role in filmmaking is rapidly expanding, and its future remains uncertain.

Some in the industry believe AI, if used correctly, can enhance creativity by allowing filmmakers to create worlds and narratives beyond their imagination. However, there is a push to ensure that artists remain central to this transformation, and that AI’s role in cinema respects creators’ rights and protections.

As AI technology evolves, Hollywood faces a critical choice: embrace it responsibly instead of the risk of being overtaken by powerful tech companies.

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Trump’s last TikTok call

As the clock ticks toward a 5 April deadline, President Donald Trump is preparing to review a final proposal that could decide the fate of TikTok’s US operations.

A high-stakes Oval Office meeting is set for Wednesday, gathering Vice President JD Vance, Commerce Secretary Howard Lutnick, National Security Adviser Mike Waltz, and Director of National Intelligence Tulsi Gabbard.

The urgency stems from a 2024 law mandating that TikTok divest from Chinese ownership or face a ban on national security grounds.

According to recent reports, a deal may be on the horizon. Trump announced on Sunday that he expects an agreement to be finalised before the deadline.

Central to the negotiations is a group of prominent American investors—including Oracle, private equity firm Blackstone, and venture capital firm Andreessen Horowitz, exploring ways to take over TikTok’s US business from Chinese parent company ByteDance.

The strategy appears to centre on consolidating the stakes of ByteDance’s existing non-Chinese investors, such as Susquehanna International Group and General Atlantic, with an infusion of fresh capital.

The involvement of Andreessen Horowitz, one of Silicon Valley’s most influential firms, underscores the political and financial stakes.

Co-founder Marc Andreessen, a Trump ally, is reportedly coordinating efforts to buy out TikTok’s Chinese stakeholders and reshape the platform’s governance under American leadership.

The Financial Times noted that Oracle and other US-based investors spearhead this initiative, further blurring the lines between political oversight and market acquisition.

Reuters also confirmed that Blackstone is weighing a minority stake in the deal, adding another heavyweight to the potential investor roster.

However, both TikTok and Andreessen Horowitz have declined to comment on the ongoing talks.

Behind the scenes, Trump and his advisors effectively act as intermediaries, with JD Vance reportedly overseeing the auction-like process, a rare move that places the executive branch in a quasi-financial role.

With over 170 million American users, TikTok’s fate is more than just a business matter; it’s a flashpoint in the wider conversation about data sovereignty, tech influence, and US-China digital rivalry.

As negotiations intensify, the Biden-era regulatory stance on tech mergers appears to give way to a more deal-oriented, ‘America First’ strategy under Trump.

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