Economic

Apple may have to pay $1.9B in damages to UK consumers over unfair App Store fees

Apple could face damages of up to £1.5 billion ($1.9 billion) after a British court ruled it overcharged consumers by imposing unfair commission fees on app developers.

The Competition Appeal Tribunal found that Apple abused its dominant position between 2015 and 2020 by charging excessive commissions, up to 30%, on App Store purchases and in-app payments. Judges ruled that the company’s fees should not have exceeded 17.5% for app sales and 10% for in-app transactions, concluding that half of the inflated costs were passed on to consumers.

The total damages, to be set next month, would compensate users who paid higher prices for apps, subscriptions and digital purchases. Apple said it will appeal, arguing that the App Store ‘helps developers succeed and provides consumers with a safe and trusted place to discover apps and make payments’.

The ruling comes as Apple continues to resist more burdensome antitrust regulation in Europe, which adds to Apple’s growing list of competition battles across Europe. Courts in the Netherlands and Belgium have accused the company of blocking alternative payment methods and charging excessive commissions, while similar lawsuits are ongoing in the United States.

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MoonshotAI released KIMI-K2 and OK Computer

KIMI-K2 is a large language model (LLM) developed by Beijing-based Moonshot AI, offering strong performance in writing and coding across diverse applications. Open-source and versatile, it delivers high-quality outputs across multiple domains, from text generation to programming.

Alongside KIMI-K2, the developers introduced OK Computer, an agent that extends the model’s abilities. Using this agent, users can build websites, conduct research, generate images, and create presentations or graphics from a single prompt, making complex workflows simpler and more accessible.

These tools reflect a growing trend in AI, which is combining multiple capabilities into one accessible system. By offering open-source solutions, KIMI-K2 and OK Computer empower users to tackle creative, technical, and research tasks with minimal effort.

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UN cybercrime treaty signed in Hanoi amid rights concerns

Around 73 countries signed a landmark UN cybercrime convention in Hanoi, seeking faster cooperation against online crime. Leaders cited trillions in annual losses from scams, ransomware, and trafficking. The pact enters into force after 40 ratifications.

UN supporters say the treaty will streamline evidence sharing, extradition requests, and joint investigations. Provisions target phishing, ransomware, online exploitation, and hate speech. Backers frame the deal as a boost to global security.

Critics warn the text’s breadth could criminalise security research and dissent. The Cybersecurity Tech Accord called it a surveillance treaty. Activists fear expansive data sharing with weak safeguards.

The UNODC argues the agreement includes rights protections and space for legitimate research. Officials say oversight and due process remain essential. Implementation choices will decide outcomes on the ground.

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MLK estate pushback prompts new Sora 2 guardrails at OpenAI

OpenAI paused the ability to re-create Martin Luther King Jr. in Sora 2 after Bernice King objected to user videos. Company leaders issued a joint statement with the King estate. New guardrails will govern depictions of historical figures on the app.

OpenAI said families and authorised estates should control how likenesses appear. Representatives can request removal or opt-outs. Free speech was acknowledged, but respectful use and consent were emphasised.

Policy scope remains unsettled, including who counts as a public figure. Case-by-case requests may dominate early enforcement. Transparency commitments arrived without full definitions or timelines.

Industry pressure intensified as major talent agencies opted out of clients. CAA and UTA cited exploitation and legal exposure. Some creators welcomed the tool, showing a split among public figures.

User appetite for realistic cameos continues to test boundaries. Rights of publicity and postmortem controls vary by state. OpenAI promised stronger safeguards while Sora 2 evolves.

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EU MiCA greenlight turns Blockchain.com’s Malta base into hub

Blockchain.com received a MiCA license from Malta’s Financial Services Authority, enabling passported crypto services across all 30 EEA countries under one EU framework. Leaders called it a step toward safer, consistent access.

Malta becomes the hub for scaling operations, citing regulatory clarity and cross-border support. Under the authorisation, teams will expand secure custody and wallets, enterprise treasury tools, and localised products for the EU consumers.

A unified license streamlines go-to-market and accelerates launches in priority jurisdictions. Institutions gain clearer expectations on safeguarding, disclosures, and governance, while retail users benefit from standardised protections and stronger redress.

Fiorentina D’Amore will lead the EU strategy with deep fintech experience. Plans include phased rollouts, supervisor engagement, and controls aligned to MiCA’s conduct and prudential requirements across key markets.

Since 2011, Blockchain.com says it has processed over one trillion dollars and serves more than 90 million wallets. Expansion under MiCA adds scalable infrastructure, robust custody, and clearer disclosures for users and institutions.

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Japan’s G-QuAT and Fujitsu sign pact to boost quantum competitiveness

Fujitsu and AIST’s G-QuAT have signed a collaboration to lift Japan’s quantum competitiveness, aligning roadmaps, labs, and funding toward commercialisation. The pact focuses on practical outcomes: industry-ready prototypes, interoperable tooling, and clear pathways from research to deployment.

The partners will pool superconducting know-how, shared fabs and test sites, and structured talent exchanges. Common testbeds will reduce duplication, lift throughput, and speed benchmarks. Joint governance will release reference designs, track milestones, and align on global standards.

Scaling quantum requires integrated systems, not just faster qubits. Priorities include full-stack validation across cryogenics and packaging, controls, and error mitigation. Demonstrations target reproducible, large-scale superconducting processors, with results for peer review and industry pilots.

G-QuAT will act as an international hub, convening suppliers, universities, and overseas labs for co-development. Fujitsu brings product engineering, supply chain, and quality systems to translate research into deployable hardware. External partners will be invited to run comparative trials.

AIST anchors the effort with the national research capacity of Japan and a mission to bridge lab and market. Fujitsu aligns commercialization and service models to emerging standards. Near-term work packages include joint pilots and verification suites, followed by prototypes aimed at industrial adoption.

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OpenAI rolls out pet-centric AI video features and social tools in Sora

OpenAI has announced significant enhancements to its text-to-video app Sora. The update introduces new features including pet and object ‘cameos’ in AI-generated videos, expanded video editing tools, social sharing elements and a forthcoming Android version of the app.

Using the new pet cameo feature, users will be able to upload photos of their pets or objects and then incorporate them into animated video scenes generated by Sora. The objective is to deepen personalisation and creative expression by letting users centre their own non-human characters.

Sora is also gaining editing capabilities that simplify the creation process. Users can remix existing videos, apply stylistic changes, and integrate social-type features like feeds where others’ creations can be viewed and shared. The Android app is noted as ‘coming soon’ which expands Sora’s accessibility beyond the iOS/web initial release.

The move reflects OpenAI’s strategy to transition Sora from an experimental novelty into a more fully featured social video product. By enabling user-owned content (pets/objects), expanding sharing functionality and broadening platform reach, Sora is positioned to compete in the generative video and social media landscape.

At the same time, the update raises questions around content use, copyright (especially when user-owned pets or objects are included), deepfake risks, and moderation. Given Sora’s prior scrutiny over synthetic media, the expansion into more personalised video may prompt further regulatory or ethical review.

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Diella 2.0 set to deliver 83 new AI assistants to aid Albania’s MPs

Albania’s AI minister Diella will ‘give birth’ to 83 virtual assistants for ruling-party MPs, Prime Minister Edi Rama said, framing a quirky rollout of parliamentary copilots that record debates and propose responses.

Diella began in January as a public-service chatbot on e-Albania, then ‘Diella 2.0’ added voice and an avatar in traditional dress. Built with Microsoft by the National Agency for Information Society, it now oversees specific state tech contracts.

The legality is murky: the constitution of Albania requires ministers to be natural persons. A presidential decree left Rama’s responsibility to establish the role and set up likely court tests from opposition lawmakers.

Rama says the ‘children’ will brief MPs, summarise absences, and suggest counterarguments through 2026, experimenting with automating the day-to-day legislative grind without replacing elected officials.

Reactions range from table-thumping scepticism to cautious curiosity, as other governments debate AI personhood and limits; Diella could become a template, or a cautionary tale for ‘ministerial’ bots.

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AI deepfake videos spark ethical and environmental concerns

Deepfake videos created by AI platforms like OpenAI’s Sora have gone viral, generating hyper-realistic clips of deceased celebrities and historical figures in often offensive scenarios.

Families of figures like Dr Martin Luther King Jr have publicly appealed to AI firms to prevent using their loved ones’ likenesses, highlighting ethical concerns around the technology.

Beyond the emotional impact, Dr Kevin Grecksch of Oxford University warns that producing deepfakes carries a significant environmental footprint. Instead of occurring on phones, video generation happens in data centres that consume vast amounts of electricity and water for cooling, often at industrial scales.

The surge in deepfake content has been rapid, with Sora downloaded over a million times in five days. Dr Grecksch urges users to consider the environmental cost, suggesting more integrated thinking about where data centres are built and how they are cooled to minimise their impact.

As governments promote AI growth areas like South Oxfordshire, questions remain over sustainable infrastructure. Users are encouraged to balance technological enthusiasm with environmental mindfulness, recognising the hidden costs behind creating and sharing AI-generated media.

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EU investigates Meta and TikTok for DSA breaches

The European Commission has accused Meta and TikTok of breaching the Digital Services Act (DSA), highlighting failures in handling illegal content and providing researchers access to public data.

Meta’s Facebook and Instagram were found to make it too difficult for users to report illegal content or receive responses to complaints, the Commission said in its preliminary findings.

Investigations began after complaints to Ireland’s content regulator, where Meta’s EU base is located. The Commission’s inquiry, which has been ongoing since last year, aims to ensure that large platforms protect users and meet EU safety obligations.

Meta and TikTok can submit counterarguments before penalties of up to six percent of global annual turnover are imposed.

Both companies face separate concerns about denying researchers adequate access to platform data and preventing oversight of systemic online risks. TikTok is under further examination for minor protection and advertising transparency issues.

The Commission has launched 14 such DSA-related proceedings, none concluded.

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