Jurisdiction

Brazil lifts ban on Elon Musk’s X platform

Brazil’s Supreme Court has lifted the suspension of Elon Musk’s social media platform, X, allowing it to resume operations in the country after the company finally complied with local court rulings. The resolution marks the end of a prolonged dispute between Musk and Supreme Court Justice Alexandre de Moraes, who had previously blocked the platform for refusing to follow legal orders. In his ruling, Moraes stated that X had met the conditions to return online, paving the way for its swift restoration.

The conflict began when Musk, a vocal advocate of free speech, resisted Brazilian court orders to block accounts flagged for spreading misinformation, calling the directives censorship and labelling Moraes a ‘dictator.’ However, in recent weeks, Musk’s platform reversed course, appointing a local representative, paying outstanding fines, and complying with the court’s requests to block certain accounts. By doing so, X earned back its legal right to operate in Brazil.

Brazilian users could not access X on Tuesday evening despite the platform’s return, even though the country’s telecommunications regulator, Anatel, has been instructed to restore the service within 24 hours. Through its Global Government Affairs account, X expressed pride in returning to the Brazilian market, emphasising its commitment to upholding free speech within legal boundaries. Brazil remains X’s sixth-largest market globally, with about 21.5 million users as of April, according to Statista.

Why does it matter?

The dispute between Musk and the Brazilian government is part of a broader struggle Musk has faced with international authorities seeking to regulate online platforms. Brazil’s communication minister, Juscelino Filho, hailed the decision as a victory, stressing that all companies operating in the country must respect its laws regardless of size or influence. President Luiz Inácio Lula da Silva echoed this sentiment, remarking that the world should not have to endure Musk’s ideology simply because of his wealth.

Many users migrated to rival platforms like Bluesky and Meta’s Threads during the suspension, especially with Brazil’s municipal elections underway.

While X remained offline for the election’s first round, the platform could be reinstated just in time for the run-offs, set to take place in late October, including in São Paulo, Latin America’s largest city.

US DoJ aims to break Google’s search engine monopoly

The US government is considering drastic measures to break up Google’s dominance in the online search industry, which could lead to the company divesting critical parts of its business, such as its Chrome browser and Android operating system. The potential legal move follows a judge’s August ruling that declared Google had illegally established a monopoly in online search. With the tech giant controlling about 90% of internet searches in the US, the Justice Department is pushing for remedies that could transform how Americans access information and shrink Google’s revenue while creating more opportunities for competitors.

One of the government’s proposals involves halting Google’s massive payments to ensure its search engine remains the default on new devices. In 2021 alone, Google paid $26.3 billion to companies like Apple to keep its search engine pre-installed on smartphones and browsers. The Justice Department argues that ending these agreements is necessary to prevent Google from maintaining its dominant position in search distribution today and in the future, particularly as the market expands into AI.

Prosecutors are also eyeing Google’s role in the growing AI sector. They propose opening up Google’s vast indexes, data, and models to its rivals to prevent the company from monopolising AI-driven search technologies. Additional suggestions include limiting Google’s ability to make deals, restricting competitors’ access to web content and allowing websites to opt out of having their data used for AI training. Google, however, has pushed back, arguing that such interventions could distort the rapidly developing AI industry and stifle innovation at a crucial moment.

The stakes are high for Google, which plans to appeal the proposed remedies, calling them ‘radical’ and far beyond the scope of the legal case. Google maintains that its search engine’s popularity is due to its superior quality and points to competition from companies like Amazon as proof of a competitive market. Meanwhile, the company faces mounting legal battles, including a separate ruling forcing it to open its Play app store to greater competition.

The Justice Department is expected to submit more detailed proposals by 20 November, with Google having until 20 December to respond with its suggestions.

Why does it matter?

The antitrust case is seen as a significant victory for regulators seeking to rein in the power of Big Tech, with similar lawsuits already filed against Meta, Amazon, and Apple. Smaller competitors, like Yelp and DuckDuckGo, have voiced support for breaking up Google’s assets, advocating for changes that could level the playing field in both search and AI.

Indian crypto exchange faces investigation after $235 million crypto hack

India’s Financial Intelligence Unit is investigating the Indian cryptocurrency exchange WazirX following a significant cyberattack that resulted in the theft of $235 million. The exchange is cooperating with government agencies and has provided authorities with extensive server logs and transaction data related to the incident, which occurred in July. Although no physical assets have been seized, WazirX is actively engaging with regulatory bodies to understand the broader implications of the hack on the unregulated crypto sector.

In a bid to enhance transparency, WazirX plans to publicly disclose wallet addresses through court affidavits and has committed to addressing user concerns. The exchange aims to establish a 10-member committee of creditors by 9 October to assist in its restructuring efforts, to return 52-55% of the remaining crypto assets to affected clients within six months.

Additionally, WazirX’s parent company, Zettai, is in discussions with 11 potential partners to explore capital injections and profit-sharing strategies that could aid in user recoveries. Following the hack, WazirX has sought a Scheme of Arrangement in Singapore under local insolvency laws. An independent audit revealed no evidence of wrongdoing by its custodian partner, Liminal Custody.

Judge allows FTC antitrust case against Amazon to proceed

A US District judge has allowed the Federal Trade Commission’s antitrust case against Amazon to proceed, although some claims made by state attorneys general from New Jersey, Pennsylvania, Maryland, and Oklahoma were dismissed. The FTC accuses Amazon of using anti-competitive tactics to dominate the online retail market, including an algorithm that allegedly inflated prices for US households by over $1 billion before it was discontinued in 2019.

Amazon had sought to dismiss the case, arguing that the FTC had not proven harm to consumers. However, the judge ruled that it’s too early to consider Amazon’s defense that its practices benefited competition. The case will continue, keeping the spotlight on Amazon’s business practices.

US House committee investigates FCC’s withdrawal of broadband subsidies from Starlink

A US House committee revealed on Monday that it is investigating the Federal Communications Commission’s (FCC) decision to deny SpaceX’s satellite internet division, Starlink, $885.5 million in rural broadband subsidies. The FCC had reaffirmed in December that the denial stemmed from Starlink’s failure to meet essential program requirements and its inability to demonstrate that it could deliver the promised services, following SpaceX’s challenge to the decision made in 2022.

House Oversight Committee Chair James Comer, a Republican, has requested the FCC provide relevant documents by October 21 to ensure that the regulatory process was followed properly and not influenced by political motives. The FCC acknowledged receipt of the letter and will respond accordingly.

In December 2020, the FCC initially awarded $9.2 billion to more than 300 bidders for high-speed broadband deployment, with Starlink securing $885.5 million in a 2020 auction aimed at serving rural areas. However, in August 2022, the FCC revoked this funding, citing speed-test data that showed Starlink struggled to meet the program’s basic requirements, despite its commitments to provide high-speed service to 642,000 rural homes and businesses in 35 states.

Musk has strongly criticised the FCC’s ruling, calling it “illegal” and claiming that the funding could have saved lives during Hurricane Helene in North Carolina. FCC Chair Jessica Rosenworcel stated that Starlink’s performance data confirmed the agency’s findings about its uplink and downlink speed issues, adding that the proposal required subscribers to purchase a $600 dish to start service. Two Republican commissioners dissented, arguing that SpaceX was unfairly held to future performance targets. Rosenworcel has since expressed a desire for increased competition in the satellite internet market, emphasising the need to welcome additional companies to promote innovation and reduce monopolistic control.

Court ruling forces Google to allow rival app stores

A US judge has ruled that Google must make significant changes to its Play Store, allowing Android users to access third-party app stores and payment methods for three years. The ruling comes after a jury sided with ‘Fortnite’ creator Epic Games, which accused Google of monopolising app access and in-app payments on Android devices.

The order, issued by Judge James Donato, prevents Google from blocking alternative payment options or pre-installing its app store through deals with device makers. The decision is set to take effect on 1 November 2024, giving Google time to comply. However, Google plans to appeal the ruling, arguing that it could harm consumers, developers, and device makers.

Epic Games CEO Tim Sweeney called the decision “big news” and said it could lead to a more competitive Android ecosystem by 2025. Meanwhile, Google is also facing antitrust cases over its dominance in web search and ad technology.

Atos aims for strategic government deal

Atos, the French IT firm, is pushing forward with efforts to sell its most strategic assets, including cybersecurity and supercomputing units, to the French government. The company, which supports the country’s military and secret services, announced that despite the expiration of an initial offer, discussions remain open, with a new proposal already submitted.

The company has been undergoing financial restructuring, having secured an agreement with key creditors earlier this year. The government in France, keen to retain control over critical technology, intends to continue negotiations and has promised a revised acquisition plan soon.

Atos shares have experienced a severe decline, falling 0.6% in early Paris trading and down 90% overall this year. Concerns over the country’s budget deficit, expected to reach 6.1% of GDP this year, may affect the government’s ability to mobilise the necessary funds for the acquisition.

The strategic assets at stake include Atos’ Advanced Computing, Critical Systems, and Cyber Products units. These divisions employ around 4,000 people and generate nearly €900 million in annual revenue. Any deal would require approval from the Nanterre Commercial Court, with a decision expected later this month.

Ireland launches EU-wide investigation into Ryanair’s use of facial recognition technology

Ireland’s Data Protection Commissioner (DPC) launched an EU-wide investigation into Ryanair’s use of facial recognition technology for customers booking through some third-party websites. The probe aims to determine if this practice violates EU privacy laws. The DPC’s action follows complaints from Ryanair customers across Europe regarding the airline’s additional verification process for bookings made through online travel agents (OTAs) rather than directly with Ryanair.

Ryanair, the largest airline in Europe by passenger numbers, welcomes the investigation, emphasising that the verification process protects customers from unverified online travel agents (OTAs) that may provide inaccurate contact or payment information. According to the airline’s website, these additional identity checks are part of its safety and security protocols. Passengers who wish to avoid facial recognition can either arrive at the airport two hours before departure or undergo a manual verification process, which may take up to seven days to complete.

Ryanair stated that verification is not required for bookings made directly on its website, mobile app, or through OTAs that have entered into commercial agreements with the airline. Since the beginning of the year, Ryanair has established 14 such partnerships. The airline asserts that both its biometric and manual verification methods are fully compliant with the EU’s General Data Protection Regulation (GDPR).

FERMA calls on European institutions to simplify cyber reporting obligations

The Federation of European Risk Management Associations (FERMA) has called on European institutions to simplify cyber reporting requirements and consider the insurance implications of cyber legislation. This appeal follows the release of the Cyber Reporting Stack report, developed in collaboration with WTW, which offers risk managers vital guidance on navigating the landscape of cyber policy and reporting obligations.

The report outlines current and forthcoming regulations, along with incident reporting requirements, featuring the General Data Protection Regulation (GDPR), Network and Information Security (NIS) 2 Directive, the Digital Operational Resilience Act (DORA), and the Cyber Resilience Act (CRA).

Charlotte Hedemark, President of FERMA, highlighted the growing burden of cyber reporting and added that FERMA believes companies need a streamlined and consistent set of requirements for reporting cyber incidents. The report recommends establishing a ‘single point of entry’ for cyber incident notifications and guides EU member states to streamline their processes and participant involvement.

Philippe Cotelle, Chair of FERMA’s Digital Committee, emphasised there currently needs to be regulations specifying the necessary risk management measures or considering their insurance implications.

Media company faces 30-day ban in Tanzania for ‘restricted content’

Tanzania’s communications regulator has suspended the online platforms of Mwananchi Communications Ltd for 30 days, accusing the company of publishing content that damaged the nation’s image. The Tanzania Communications Regulatory Authority (TCRA) cited violations of the country’s Online Content Regulations 2020 and claimed the media company had shared material that disrupted national unity, peace, and harmony. However, the TCRA did not reveal the specific nature of the content.

Mwananchi Communications posted an animated video on its X and Instagram platforms on 1 October, which depicted people expressing concerns about missing or murdered loved ones. The company later deleted the video and apologised, stating that the content was misinterpreted. Opposition party ACT-Wazalendo criticised the suspension, arguing that the government was silencing media outlets that expose the country’s real issues, especially following recent cases of violence against political figures.

This action has raised concerns over press freedom in Tanzania, with critics pointing out a recent shift in the government’s approach. While President Samia Suluhu Hassan has been praised for easing restrictions on political rallies and media, recent incidents such as protest bans and the arrests of journalists have sparked fears of a rollback in democratic freedoms. Mwananchi Communications has stated that it will comply with the suspension order.