The US Justice Department has raised the alarm over TikTok’s potential influence on American politics, arguing that the app’s continued operation under ByteDance, its Chinese parent company, could enable covert interference by the Chinese government in US elections. In a recent federal court filing, prosecutors suggested that TikTok’s algorithm might be manipulated to sway public opinion and influence political discourse, posing a significant threat to national security.
The filing is part of a broader legal battle as TikTok challenges a new US law that could force a ban on the app unless its ownership is transferred by January 2025. The law, signed by President Joe Biden in April, addresses concerns over TikTok’s ties to China and its potential to compromise US security. TikTok argues that the law infringes on free speech and restricts access to information, as it targets a specific platform and its extensive global user base.
The Justice Department contends that the law aims not to suppress free speech but to address unique national security risks posed by TikTok’s connection to a foreign power. They suggest a possible solution could involve selling TikTok to an American company, allowing the app to continue operating in the US without interruption.
Why does this matter?
Concerns about TikTok’s data practices have been a focal point, with officials warning that the app collects extensive personal information from users, including location data and private messages. The department also pointed to technologies in China that could potentially influence the app’s content and raise further worries about the app’s role in data collection and content manipulation.
The debate highlights a clash between national security concerns and the protection of digital freedoms, as the outcome of the lawsuit could set a significant precedent for how the US handles foreign tech influence.
LinkedIn has agreed to a $6.625 million settlement to resolve a proposed class action accusing the company of inflating ad metrics, leading to overcharges for advertisers. The preliminary settlement, filed in San Jose, California federal court, awaits approval by US Magistrate Judge Susan van Keulen. Although LinkedIn denies any wrongdoing, it has committed to hiring an outside auditor for two years to review its ad metrics.
The lawsuit originated from allegations by advertisers, including TopDevz of Sacramento and Noirefy of Chicago, who claimed LinkedIn counted video ad views even when the videos played off-screen as users scrolled past. This issue came to light after LinkedIn disclosed in November 2020 that software bugs had led to over 418,000 overcharges, mostly under $25. LinkedIn subsequently provided credits to nearly all affected advertisers.
The settlement covers US advertisers who purchased ads on LinkedIn from January 2015 to May 2023. LinkedIn stated that the settlement underscores its commitment to ad integrity and maintaining a trusted platform for users and customers. The advertisers’ lawyers may seek up to 25% of the settlement amount, approximately $1.656 million, for legal fees.
Judge van Keulen had previously dismissed the lawsuit in December 2021, but the advertisers appealed, and the appeal was put on hold for mediation. The case, known as In re LinkedIn Advertising Metrics Litigation, is being handled in the US District Court, Northern District of California.
YouTube speeds in Russia are expected to significantly decline on desktop computers due to Google’s failure to upgrade its equipment in the country and its refusal to unblock Russian media channels. The situation has drawn criticism from Alexander Khinshtein, head of the lower house of parliament’s information policy committee, who emphasised that the slowdown is a repercussion of YouTube’s actions. Khinshtein highlighted that download speeds on the platform have already decreased by 40% and could drop by up to 70% next week.
The decline in YouTube quality is attributed to Google’s inaction, particularly its failure to upgrade Google Global Cache servers in Russia. Additionally, Google has not invested in Russian infrastructure and allowed its local subsidiary to go bankrupt, preventing it from covering local data centre expenses. Communications regulator Roskomnadzor has echoed these concerns, indicating that the lack of upgrades has led to deteriorating service quality.
Google has faced multiple fines from Russia for not removing content deemed illegal or undesirable by the Russian government. Following Russia’s invasion of Ukraine in March 2022, YouTube blocked channels associated with Russian state-funded media worldwide, citing its policy against content that denies or trivialises well-documented violent events. Subsequently, Google’s Russian subsidiary filed for bankruptcy, citing Russian authorities’ seizure of its bank account as the reason for its inability to function. Meanwhile, some Russian officials, including Chechen leader Ramzan Kadyrov, have proposed blocking YouTube entirely in response to the ongoing tensions.
The Cyberspace Administration of China (CAC), China’s internet regulator, has publicly identified and named agents facilitating local ChatGPT access. The latest crackdown comes in the backdrop of OpenAI’s decision to restrict access to its API in ‘unsupported countries and territories’ like mainland China, Hong Kong, and Macau.
Alongside CAC, other local authorities have penalised several website operators this year for providing unauthorised access to generative AI services like ChatGPT. These measures are indicative of the CAC’s commitment to enforcing China’s AI regulations, which mandate rigorous screening and registration of all AI services before they can be publicly made available. Even with these stringent rules, some developers and businesses have managed to sidestep the regulations by using virtual private networks.
Why does this matter?
Despite Beijing’s ambition of leading the world’s AI race, it is stringent about its requirement of GenAI providers upholding core socialist values and avoiding generating content that threatens national security or the socialist system. As of January, about 117 GenAI products have been registered with the CAC, and 14 large language models and enterprise applications have been given formal approval for commercial use.
Spain’s antitrust regulator, the CNMC, has launched an investigation into Apple’s App Store for potentially anti-competitive behaviour. The investigation focuses on Apple’s alleged imposition of unequal commercial conditions on developers of mobile applications sold through its platform.
The CNMC has suggested that these practices could constitute a serious violation of competition law. If Apple is found guilty, it could face a substantial fine of up to 10% of its global revenues. The following investigation in Spain highlights ongoing concerns about Apple’s dominance in the app store market and its impact on competition and developers.
Italian tax police have seized €121 million from Amazon’s Italian logistics unit as part of an investigation into alleged tax fraud and illegal labour practices. The Milan Prosecutors’ Office has accused Amazon Italia Transport of bypassing labour and tax laws by using cooperatives and limited liability companies to supply workers, avoiding VAT tax duties, and reducing social security payments.
Prosecutors claim this system allowed Amazon to maintain competitive service prices in the Italian market. An Amazon spokesperson in Italy did not comment on the case when contacted by Reuters.
The investigation follows similar probes targeting other large businesses in recent years, including DHL, UPS, DB Schenker, and the Italian supermarket chain Esselunga.
South Korean authorities have arrested Kim Beom-su, the billionaire founder of technology giant Kakao Corp, on allegations of stock manipulation. The charges relate to the acquisition of a K-Pop agency last year. Prosecutors claim Kim manipulated the stock price of SM Entertainment in order to hinder a competitor, Hybe, from acquiring it. Kim, also known as Brian Kim, denies the accusations and maintains he never ordered or tolerated any illegal activity.
Kakao Corp, which operates South Korea‘s largest messaging app, expressed regret over the situation. Chief Executive Shina Chung is leading efforts to manage the company during Kim’s absence. The Seoul Southern District Court approved the arrest warrant, citing potential evidence destruction and flight risk as reasons for detaining Kim. He is currently held at the Seoul Nambu Detention Centre for up to 20 days while prosecutors continue their investigation.
The case against Kim poses significant risks to Kakao’s future, potentially impacting investments in artificial intelligence and overseas expansion plans. Industry experts warn that regulatory scrutiny could complicate major business decisions. Kim is the largest shareholder of Kakao Corp, controlling a 24% stake, and any conviction could affect the company’s control over its online banking arm, KakaoBank Corp, due to financial crime restrictions.
Following the news of Kim’s arrest, Kakao Corp shares fell by 5.4%, marking their largest daily drop since December 2022. Affiliates Kakaopay and Kakao Games also hit record lows, dropping by 7.8% and 5.2% respectively, while Kakaobank shares fell by 3.8%. The ongoing legal troubles could further strain the company’s market performance and strategic initiatives.
A South Korean court is reviewing a prosecution request to arrest Brian Kim, the billionaire founder of Kakao Corp, for alleged stock manipulation during a 2023 acquisition. The development follows a hearing last year involving Kakao and an executive over similar accusations. Prosecutors claim Kim manipulated the stock price of SM Entertainment to obstruct Hybe’s acquisition attempt. Kim, not formally charged, denies any wrongdoing.
Kim, the largest shareholder of Kakao Corp, holds a 24% stake through his entities. The court’s decision, expected late Monday or early Tuesday, will determine the necessity of a warrant without ruling on the allegations. Analysts warn that a conviction could jeopardise Kakao group’s control over KakaoBank Corp, as financial crime rules restrict ownership stakes in banks.
Regulatory and social scrutiny might impact Kakao’s bold investment decisions, including plans for AI services and fundraising through IPOs. Kim chairs a council coordinating Kakao group’s 128 affiliates, guiding their business focus. The outcome of the case could influence the company’s strategic moves in the near future.
Kakao plans to launch new AI services this year, amid growing challenges from legal and regulatory pressures. The decision on Kim’s arrest warrant will be crucial for the future direction of the tech giant and its numerous affiliates.
Tesla’s attempt to secure a 5G patent licence in the UK has been dismissed by the High Court. The automaker sought the licence before its planned launch of 5G vehicles in Britain.
The lawsuit, filed against US technology firm InterDigital and the patent licensing platform Avanci, was thrown out on Monday. Tesla wanted the court to determine fair, reasonable, and non-discriminatory (FRAND) terms for using patents owned by InterDigital and licensed by Avanci.
Judge Timothy Fancourt ruled that Tesla’s bid for a license must be dismissed. However, Tesla’s separate claim to revoke three InterDigital’s patents will continue.
The Content Origin Protection and Integrity from Edited and Deepfaked Media Bill, also known as the COPIED Act, was introduced on 11 July 2024 by US lawmakers, Senators Marsha Blackburn, Maria Cantrell and Martin Heinrich. The bill is expected to safeguard the intellectual property of creatives, particularly journalists, publishers, broadcasters and artists.
According to the bill, images, videos, audio clips and texts are considered deepfakes if they contain ‘synthetic or synthetically modified content that appears authentic to a reasonable person and creates a false understanding or impression’. If moved into legislation, the bill restricts online platforms where US-based customers frequent, and annual revenue of at least $50 million is generated or where 25 million active users are registered for three consecutive months.
Under the bill, companies that deploy or develop AI models must install a feature allowing users to tag such images with contextual or content provenance information, such as their source and history, in a machine-readable format. After that, it would be illegal to remove such tags for any other reason than research, use these images to train subsequent AI models or generate content. Victims will then have the right to sue offenders.
The COPIED Act is backed by several artist-affiliated groups, including SAG-AFTRA, the National Music Publishers’ Association, the Songwriters Guild of America (SGA), the National Association of Broadcasters as well as The US National Institute of Standards and Technology (NIST), the US Patent and Trademark Office (USPTO) and the US Copyright Office. The bill also has received bipartisan support.
