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ByteDance faces pressure as US weighs TikTok’s future

Elon Musk has confirmed he has no intention of purchasing TikTok, despite speculation and suggestions from former US President Donald Trump.

Speaking at a summit hosted by The WELT Group, Musk stated he had not made a bid for the app and had no plans for its future. He also noted that he does not use TikTok personally and is unfamiliar with its format.

The billionaire emphasised that acquiring companies is rare for him, with his high-profile purchase of Twitter, now X, being an exception. He reiterated his preference for building businesses from the ground up rather than taking over existing ones.

ByteDance, TikTok’s Chinese parent company, has been under pressure to sell its US assets due to concerns about data security and potential government influence.

Apple and Google have yet to reinstate TikTok in their app stores since new US legislation took effect. In response, TikTok has enabled Android users to download the app directly from its website.

Trump has suggested that multiple parties are in discussions over the platform’s future, with a final decision expected soon.

ByteDance has consistently denied any plans to sell TikTok, despite mounting political scrutiny. Trump, who once sought to ban the app, has recently expressed support for it, citing its role in his popularity among young voters.

No official response has been provided by ByteDance or TikTok regarding the ongoing situation.

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.

Musk bids $97.4 billion-dollar to reclaim control over OpenAI

Elon Musk has reignited his rivalry with OpenAI by leading a consortium in a staggering $97.4 billion bid to acquire the nonprofit that governs the ChatGPT creator. The move is the latest chapter in Musk’s long-running battle with OpenAI CEO Sam Altman, who swiftly dismissed the offer with a sarcastic post on X, suggesting he would buy Musk’s platform for $9.74 billion instead. The dramatic exchange highlights the growing tensions surrounding OpenAI’s controversial shift from a nonprofit to a for-profit entity, a transition that Musk has legally challenged, claiming it betrays the company’s original mission of prioritising AI safety over profit.

Musk co-founded OpenAI with Altman in 2015, envisioning an organisation dedicated to open-source AI research for the benefit of humanity. However, he parted ways with the company before it became a dominant force in generative AI. Since then, Musk has launched his own AI venture, xAI, which recently secured $6 billion in funding at a $40 billion valuation. His latest bid to acquire OpenAI comes when the company is seeking new investments to fuel its growth, with reports suggesting that SoftBank is in talks to lead a funding round that would push OpenAI’s valuation to an eye-watering $300 billion.

Musk’s legal battle with OpenAI hinges on the argument that the organisation’s leaders, including Altman, have violated their original agreement by prioritising commercial interests over AI safety and transparency. His lawsuit seeks to block OpenAI’s shift to a for-profit structure, and now, his surprise takeover bid could throw a major obstacle in the company’s fundraising efforts. The consortium backing Musk’s offer includes Baron Capital Group and Emanuel Capital, signalling that serious financial players support the bid. Analysts suggest that OpenAI’s board has a fiduciary duty to consider the offer, given its substantial valuation and potential legal complications.

Financing such a deal would require Musk to tap into his vast wealth, with options including selling Tesla stock, leveraging assets from SpaceX, or securing loans against his holdings. However, his financial leverage is likely constrained after his $44 billion acquisition of X (formerly Twitter), and securing additional funding for such a massive bid could prove challenging. Meanwhile, OpenAI, currently valued at $157 billion, remains in talks with investors for its expansion, and any disruption caused by Musk’s move could impact its ability to raise funds on favourable terms.

Why does it matter?

Legal experts and industry analysts view Musk’s bid as a significant disruption to OpenAI’s trajectory. Jonathan Macey, a corporate governance professor at Yale Law School, noted that the nonprofit’s board is now in a difficult position, as rejecting a higher offer in favour of a different funding strategy could raise concerns about whether the board is acting in the best interest of OpenAI’s original mission. Furthermore, Musk’s criticism of OpenAI’s partnership with Microsoft, a key investor in the company, adds another layer of complexity to the situation, as Microsoft remains a powerful force in shaping OpenAI’s future direction.

If Musk’s plan succeeds, he could steer OpenAI back toward an open-source, safety-focused model, aligning with his publicly stated goals of ensuring AI development remains transparent and ethical. However, if OpenAI resists, it could face prolonged legal battles and financial uncertainties that might slow its rapid expansion. Either way, Musk’s aggressive push to reclaim influence over OpenAI could reshape the company’s approach and future business plans.

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.

Coi nbase 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.

Hong Kong sets a precedent by accepting crypto as proof of assets

Hong Kong has officially recognised cryptocurrency as proof of assets for investment immigration, approving two cases where applicants used Bitcoin and Ethereum to meet the HK$30 million requirement. The latest approval, confirmed on 7 February, marks a significant step in integrating digital assets into the region’s financial and immigration policies.

The first case occurred in October 2024, when a Bitcoin holder successfully proved their wealth for residency. An Ethereum holder has followed suit, with both applicants coming from mainland China. Reports indicate that Invest Hong Kong, the government agency overseeing investment immigration, took a month to review the first case before approving it.

Despite this recognition, it remains uncertain whether direct cryptocurrency investments or crypto ETFs will count towards the required HK$30 million investment within six months of approval. Officials have specified that applicants must store their digital assets securely in cold wallets or on major exchanges such as Binance. With two more applicants under review, Hong Kong appears to be paving the way for broader crypto acceptance in its financial landscape.

Nokia appoints Justin Hotard as new CEO

Nokia has announced that Pekka Lundmark will step down as CEO, with Justin Hotard, currently EVP and GM of Intel’s Data Center & AI Group, set to take over the role on April 1. This leadership change is seen as part of Nokia’s strategic shift towards expanding into areas like AI and data centres, where the company is positioning itself for future growth. Hotard’s strong background in AI and technology is expected to drive Nokia’s focus on these emerging sectors.

The news has led to a 1.6% rise in Nokia’s shares, reflecting positive investor sentiment despite the surprise announcement. Analysts note that the appointment of Hotard suggests Nokia’s commitment to strengthening its network infrastructure unit, particularly as it looks to benefit from the surge in AI investments. This follows Nokia’s $2.3 billion acquisition of US optical networking firm Infinera, aimed at tapping into the growing data centre market.

Lundmark, who has been CEO since 2020, will remain with Nokia as an advisor to Hotard until the end of the year. Despite some initial denials about leadership changes, the company confirmed that the transition plan had been in place for some time, with Lundmark signalling his intention to step down once the business repositioning was more advanced.

Nokia’s infrastructure business, which includes AI-integrated systems for communication, and its mobile networks division, focusing on 5G technology, are both seen as key to the company’s future. While shares are up 27.85% over the past year, they remain significantly lower than their peak in 2000.

Russia blocks access to major crypto aggregator BestChange

Russia’s telecoms watchdog, Roskomnadzor, has blocked access to BestChange, one of the largest crypto over-the-counter aggregators in Eastern Europe. While the regulator has not provided an official reason, the platform has been added to the list of banned websites. BestChange’s legal team is already working to restore access, though no details on the ban’s cause have been disclosed.

It is not the first time BestChange has faced restrictions. It was first blocked in 2017 when a court in St Petersburg ruled that Bitcoin was a monetary surrogate, making enforcement difficult due to the blockchain’s irreversible transactions. Although that ban was lifted in 2018, Roskomnadzor imposed restrictions again in 2019, only to remove them months later.

The latest ban follows Russia’s recent law restricting crypto mining and digital asset advertisements. Under these new rules, advertisements for exchanges, mining, smart contracts, and wallet-tracking services are prohibited. Major platforms such as Yandex have already adjusted their policies, tightening restrictions on crypto-related promotions.