Economic

Meta and TikTok win court challenge over EU fee

Europe’s General Court has backed challenges by Meta Platforms and TikTok against an EU supervisory fee imposed under the Digital Services Act (DSA). The companies argued that the levy was calculated unfairly and imposed a disproportionate financial burden.

The supervisory fee, introduced in 2022, requires large platforms to pay 0.05% of their annual global net income to cover monitoring costs. Meta and TikTok said the methodology relied on flawed data, inflated their fees, and even double-counted users.

Their lawyers told the court the process lacked transparency and produced ‘implausible’ results.

Lawyers for the European Commission defended the fee, arguing that group-wide financial resources justified the calculation method. They said the companies had adequate information about how the levy was determined.

The ruling reduces pressure on the two firms as they continue investing in the EU market. A final judgement from the General Court is expected next year and may shape how supervisory costs are applied to other major platforms.

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Cyberattack hits LNER passenger data, investigation under way

The contact details of rail passengers have been stolen in a cyberattack affecting London North Eastern Railway (LNER). The company stated that it had been notified of unauthorised access to files managed by a third-party supplier and advised customers to be vigilant against phishing attempts.

LNER stressed that no bank details, card numbers, or passwords had been compromised. The York-based operator stated that it was collaborating with cybersecurity experts and the supplier to investigate the breach and ensure necessary safeguards.

The company did not confirm the number of passengers affected. The incident comes as LNER reported revenues exceeding £1 billion, yet it continues to rely on government support since its nationalisation in 2018.

Passenger complaints rose 12.2 percent in 2025, reaching 24,015, and competition from private operators is driving losses—online ticket platforms such as Trainline direct passengers to cheaper rivals, costing LNER significant revenue.

The breach follows other attacks on UK transport services, including a 2024 incident in which the bank details of 5,000 Transport for London customers were exposed, resulting in weeks of disrupted online services.

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Cyberattack keeps JLR factories shut, hackers claim responsibility

Jaguar Land Rover (JLR) has confirmed that data was affected in a cyberattack that has kept its UK factories idle for more than a week. The company stated that it is contacting anyone whose data was involved, although it did not clarify whether the breach affected customers, suppliers, or internal systems.

JLR reported the incident to the Information Commissioner’s Office and immediately shut down IT systems to limit damage. Production at Midlands and Merseyside sites has been halted until at least Thursday, with staff instructed not to return before next week.

The disruption has also hit suppliers and retailers, with garages struggling to order spare parts and dealers facing delays registering vehicles. JLR said it is working around the clock to restore operations in a safe and controlled way, though the process is complex.

Responsibility for the hack has been claimed by Scattered Lapsus$ Hunters, a group linked to previous attacks on Marks & Spencer, the Co-op, and Las Vegas casinos in the UK and the US. The hackers posted alleged screenshots from JLR’s internal systems on Telegram last week.

Cybersecurity experts say the group’s claim that ransomware was deployed raises questions, as it appears to have severed ties with Russian ransomware gangs. Analysts suggest the hackers may have only stolen data or are building their own ransomware infrastructure.

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Claude AI gains powerful file editing tools for documents and spreadsheets

Anthropic’s Claude has expanded its role as a leading AI assistant by adding advanced tools for creating and editing files. Instead of manually working with different programs, users can now describe their needs in plain language and let the AI produce or update Word, Excel, PowerPoint, and PDF files.

A feature that supports uploads of CSV and TSV data and can generate charts, graphs, or images where needed, with a 30MB size limit applying to uploads and downloads.

The real breakthrough lies in editing. Instead of opening a document or spreadsheet, users can simply type instructions such as replacing text, changing currencies, or updating job titles. Claude processes the prompt and makes all the changes in one pass, preserving the original formatting.

It positions the AI as more efficient than rivals, as Gemini can only export reports but not directly modify existing files.

The feature preview is available on web and desktop for subscribers on Max, Team, or Enterprise plans. Analysts suggest the update could reshape productivity tools, especially after reports that Microsoft has partnered with Anthropic to explore using Claude for Office 365 functions.

By removing repetitive tasks and making file handling conversational, Claude is pushing productivity software into a new phase of automation.

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Small business revival could hinge on AI-driven tools

If AI is to matter in the economy, it must first matter to small businesses. Firms employ over 61 million people, nearly half the private workforce, yet most run on outdated technology. While smartphones update monthly, many small businesses still use systems built a decade ago.

Search fund entrepreneurs bridge this gap by upgrading established firms with modern tech. One deal turned a 50-person roadside assistance firm into Asurion, now a global tech-care provider. Others have scaled compliance firms into nationwide SaaS platforms.

Generative AI now accelerates these transformations, cutting work times by over 60% across supply chains, compliance, and document processing functions. Complex tasks can now be completed in hours, unlocking double-digit productivity gains and allowing small businesses to focus on growth.

Search funds are not the only path forward. AI consulting firms, tech studios, and AI-powered roll-up strategies bring enterprise-grade tools to family-run firms. For communities that have relied on traditional playbooks, decades of growth can be compressed into months.

The cost of AI has never been lower, and the opportunity is wide open. Once deployed at scale, AI could power a wave of productivity on Main Street, helping small businesses compete and strengthening the economy for half of their workforce.

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NotebookLM turns notes into flashcards podcasts and quizzes

Google’s learning-focused AI tool NotebookLM has gained a major update, making studying and teaching more interactive.

Instead of offering only static summaries, it now generates flashcards that condense key information into easy-to-remember notes, helping users recall knowledge more effectively.

Reports can also be transformed into quizzes with customisable topics and difficulty, which can then be shared with friends or colleagues through a simple link.

The update extends to audio learning, where NotebookLM’s podcast-style Audio Overviews are evolving with new formats. Instead of a single style, users can now create Brief, Debate, or Critique episodes, giving greater flexibility in how material is explained or discussed.

Google is also strengthening its teaching tools. A new Blog Post format offers contextual suggestions such as strategy papers or explainers, while the ability to create custom report formats allows users to design study resources tailored to their needs.

The most significant addition, however, is the Learning Guide. Acting like a personal tutor, it promotes deeper understanding by asking open-ended questions, breaking problems into smaller steps, and adapting explanations to suit each learner.

With these features, NotebookLM is moving closer to becoming a comprehensive learning assistant, offering a mix of interactive study aids and adaptable teaching methods that go beyond simple note-taking.

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Photonic chips open the path to sustainable AI by training with light

A team of international researchers has shown how training neural networks directly with light on photonic chips could make AI faster and more sustainable.

A breakthrough study, published in Nature, involved collaboration between the Politecnico di Milano, EPFL Lausanne, Stanford University, the University of Cambridge, and the Max Planck Institute.

The research highlights how physical neural networks, which use analogue circuits that exploit the laws of physics, can process information in new ways.

Photonic chips developed at the Politecnico di Milano perform mathematical operations such as addition and multiplication through light interference on silicon microchips only a few millimetres in size.

By eliminating the need to digitise information, these chips dramatically cut both processing time and energy use. Researchers have also pioneered an ‘in-situ’ training technique that enables photonic neural networks to learn tasks entirely through light signals, instead of relying on digital models.

The result is a training process that is faster, more efficient and more robust.

Such advances could lead to more powerful AI models capable of running directly on devices instead of being dependent on energy-hungry data centres.

An approach that paves the way for technologies such as autonomous vehicles, portable intelligent sensors and real-time data processing systems that are both greener and quicker.

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South Korea to grant crypto firms venture company status

South Korea will grant cryptocurrency firms ‘venture company’ status from 16 September, giving them access to tax breaks, financing support, and other incentives. The move follows a partial revision of the Venture Business Act removing restrictions on crypto trading and brokerage.

The regulatory change aims to stimulate growth in the crypto and blockchain sectors. Advantages include research and development grants, credit guarantees, and the ability for existing venture companies to expand into crypto without losing their status.

Minister Han Seong-sook said the measure will help create a transparent and responsible ecosystem for venture capital and innovation.

Crypto firms were first restricted in October 2018, and the ban’s removal reflects industry maturity and better user protections. Officials expect the change to accelerate growth in virtual asset trading, blockchain technologies, smart contracts, and cybersecurity.

South Korea’s crypto industry has already benefited from a friendlier environment under President Lee Jae-myung. The market is projected to reach $1.1 billion in revenue in 2025 and $1.3 billion by 2026, with exchange users surpassing 16 million, over 30% of the population.

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Oracle and OpenAI drive record $300B investment in cloud for AI

OpenAI has finalised a record $300 billion deal with Oracle to secure vast computing infrastructure over five years, marking one of the most significant cloud contracts in history. The agreement is part of Project Stargate, OpenAI’s plan to build massive data centre capacity in the US and abroad.

The two companies will develop 4.5 gigawatts of computing power, equivalent to the energy consumed by millions of homes.

Backed by SoftBank and other partners, the Stargate initiative aims to surpass $500 billion in investment, with construction already underway in Texas. Additional plans include a large-scale data centre project in the United Arab Emirates, supported by Emirati firm G42.

The scale of the deal highlights the fierce race among tech giants to dominate AI infrastructure. Amazon, Microsoft, Google and Meta are also pledging hundreds of billions of dollars towards data centres, while OpenAI faces mounting financial pressure.

The company currently generates around $10 billion in revenue but is expected to spend far more than that annually to support its expansion.

Oracle is betting heavily on OpenAI as a future growth driver, although the risk is high given OpenAI’s lack of profitability and Oracle’s growing debt burden.

A gamble that rests on the assumption that ChatGPT and related AI technologies will continue to grow at an unprecedented pace, despite intense competition from Google, Anthropic and others.

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New iPhone security ups pressure on spyware

Apple is rolling out Memory Integrity Enforcement on the iPhone 17 line and iPhone Air, an always-on set of protections aimed at blocking memory-safety exploits used by mercenary spyware.

MIE builds on ARM’s Enhanced Memory Tagging Extension in Apple’s A19 chips, alongside secure allocators and tag-confidentiality measures.

Older devices without the new tagging hardware also receive memory-safety upgrades. Apple says new Spectre V1 leak mitigations arrive with virtually no CPU penalty.

Comparable ideas exist elsewhere, such as Windows 11’s memory integrity (HVCI) and Android’s MTE support on Pixel 8, but Apple’s approach is enabled by default across key attack surfaces. Security reporters note the move significantly complicates spyware operations.

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