A Kenyan court has determined that Meta, the parent company of Facebook, can be sued in Kenya over the dismissal of several content moderators by a contractor. The moderators, who worked for Sama, alleged they were fired for trying to organise a union and were later blacklisted from applying at Majorel, another firm. Efforts to reach a settlement with Meta last October were unsuccessful.
The Court of Appeal upheld earlier rulings allowing Meta to face trial over the dismissals and allegations of poor working conditions. This decision could have significant implications for Meta’s global relationships with content moderators. Meta has claimed it mandates that its partners provide industry-leading working conditions.
Lawyers for the moderators see this case as a pivotal moment for Big Tech, highlighting the need for accountability in human rights along supply chains. Supporters, including the British tech rights group Foxglove, are optimistic about the case advancing to court.
Russian retailers have started pre-sales of Apple’s iPhone 16, despite the company’s export ban after Moscow invaded Ukraine. Leading stores M.Video-Eldorado and mobile operator MTS are the first to offer the new devices, with M.Video planning deliveries next week. However, Russian consumers face significantly higher prices, paying hundreds of dollars more than U.S. customers.
Despite Apple halting product sales and services like Apple Pay in Russia in 2022, the iPhone 16 is still available through parallel imports from countries that have not enforced sanctions, such as Turkey, Kazakhstan, and China. The Kremlin has endorsed this grey market system to keep foreign goods accessible. However, prices are much higher in Russia, with the 128GB iPhone 16 starting at 112,999 roubles ($1,225) and the 1TB iPhone 16 Pro Max priced at 249,999 roubles ($2,710), significantly more than U.S. prices.
Despite sanctions, Western technology remains highly sought after in Russia. However, the Russian government has urged officials to stop using iPhones, claiming they are compromised by Western intelligence agencies, a claim Apple denied.
Several tech companies, including Meta and Spotify, have criticised the European Union for what they describe as inconsistent decision-making on data privacy and AI. A collective letter from firms, researchers, and industry bodies warned that Europe risks losing competitiveness due to fragmented regulations. They urged data privacy regulators to deliver clear, harmonised decisions, allowing European data to be utilised in AI training for the benefit of the region.
The companies voiced concerns about the unpredictability of recent decisions made under the General Data Protection Regulation (GDPR). Meta, known for owning Facebook and Instagram, recently paused plans to collect European user data for AI development, following pressure from EU privacy authorities. Uncertainty surrounding which data can be used for AI models has become a major issue for businesses.
Tech firms have delayed product releases in Europe, seeking legal clarity. Meta postponed its Twitter-like app Threads, while Google has also delayed the launch of AI tools in the EU market. The introduction of Europe’s AI Act earlier this year added further regulatory requirements, which firms argue complicates innovation.
The European Commission insists that all companies must comply with data privacy rules, and Meta has already faced significant penalties for breaches. The letter stresses the need for swift regulatory decisions to ensure Europe can remain competitive in the AI sector.
European antitrust regulators will not take action against Microsoft’s acquisition of staff from AI startup Inflection, including its co-founders, following the withdrawal of requests from seven European Union countries. These countries dropped their requests for the European Commission to investigate, due to a recent court ruling that limits the regulator’s ability to examine mergers below the EU’s revenue threshold.
The court ruling has been viewed by some as a correction against regulatory overreach. The European Commission, in response, stated it would not pursue the case further. Despite this, the Commission acknowledged the Microsoft-Inflection deal as a merger due to its restructuring of Inflection’s business focus towards AI development.
The agreement between Microsoft and Inflection represents a significant market shift. Under the EU’s merger rules, it is considered a concentration, reflecting the ongoing transformations in the AI industry.
Elon Musk’s social media platform, X, has moved to address legal requirements in Brazil by appointing a new legal representative, Rachel de Oliveira Conceicao. Musk’s step follows orders from Brazil’s Supreme Court, which had previously blocked the platform after it failed to comply with local regulations, including naming a legal representative after its office closure in mid-August. X’s decision to appoint Conceicao aims to fulfil Brazilian law, which requires foreign companies to establish local legal representation to operate in the country.
The platform faced a complete shutdown in Brazil when mobile and internet providers were ordered to block X in late August. The order came after months of disputes between Musk and Brazilian Supreme Court Justice Alexandre de Moraes, centring around X’s reluctance to remove content spreading hate speech and misinformation. Musk had criticised the court’s demands, calling them censorship, and the platform’s refusal to comply escalated tensions.
X’s legal team in Brazil announced that the company has begun complying with court orders to remove harmful content, a key demand from the country’s top court. The decision signals a shift in Musk’s approach to Brazil’s strict content regulations and could pave the way for the platform to resume full operations.
The legal battles between X and Brazil highlight the broader tension between free speech and government regulation as nations like Brazil take stronger stances on monitoring harmful content online. At the same time, platforms face the challenge of balancing compliance with global standards.
Elon Musk’s social media platform, X, is set to appoint a legal representative in Brazil as it fights a Supreme Court order. The platform faced suspension in August over concerns about hate speech, and despite a temporary workaround, remains under scrutiny.
Brazil’s Supreme Court recently ordered the platform to stop bypassing the block, threatening fines if X continues to circumvent the ruling. Lawyers for the platform have clarified that they are working to comply, including naming a local representative as required.
In a months-long legal dispute between Musk and Brazilian Justice Alexandre de Moraes, X’s offices in Brazil closed in mid-August. The company, however, says it is making efforts to restore full operations soon.
The firm has begun complying with content removal orders issued by courts in Brazil, addressing previous concerns over the spread of misinformation. X insists it is focused on resolving the legal issues and working with the government.
Philippines has introduced Joint Administrative Order No. 24-03, Series of 2024, which outlines the Implementing Rules and Regulations (IRR) for the Internet Transactions Act (ITA) of 2023. The new regulatory framework is designed to govern all business-to-business (B2B) and business-to-consumer (B2C) internet transactions under the jurisdiction of the Department of Trade and Industry (DTI).
Specifically, it applies to transactions involving parties within the Philippines or businesses targeting the Philippine market. To clarify the scope of the ITA, the IRR defines key terms such as ‘availment of the Philippine market,’ which includes activities like advertising, soliciting orders, and providing support within the country. Additionally, ‘minimum contacts’ refers to any interaction with customers in the Philippines, including allowing access to digital platforms and facilitating the exchange of goods or services.
Philippines has also specified specific exclusions from the ITA’s coverage through the IRR. For instance, it does not apply to Consumer-to-Consumer (C2C) transactions, purely offline transactions, or foreign entities not targeting the Philippine market. Furthermore, while most online media content is excluded, live selling is considered a form of advertising.
Consequently, the IRR outlines different obligations for various online entities, such as digital platforms that do not oversee transactions, e-marketplaces that retain oversight, and e-retailers or online merchants who must adhere to specific compliance requirements.
Philippines has made the IRR effective immediately; however, it allows for an 18-month transition period for businesses to comply. During this time, companies must submit detailed information to the E-Commerce Bureau and ensure that online merchants provide their registration details. Additionally, digital platforms must disclose information about product origins. Furthermore, the IRR includes Codes of Conduct for businesses and consumers to ensure fair and ethical e-commerce practices.
The US Securities and Exchange Commission (SEC) has reached a settlement with decentralised finance platform Rari Capital and its founders following accusations of misleading investors and operating as unregistered brokers. The settlement addresses serious concerns raised by the SEC over the platform’s compliance with financial regulations.
Rari Capital, which once managed over $1 billion in crypto assets at its peak, was co-founded by Jai Bhavnani, Jack Lipstone, and David Lucid. The SEC highlighted that the platform and its founders failed to properly disclose key information to investors, contributing to potential risks for those involved.
The following case underscores regulatory bodies’ increasing scrutiny of decentralised finance platforms, as they aim to ensure transparency and protect investors in the fast-evolving crypto space.
Russian retailers have launched pre-sales of the iPhone 16, despite Apple’s ongoing export ban to the country. Leading companies M.Video-Eldorado and MTS have begun offering the devices at prices far higher than in the United States. Deliveries are expected to begin within the next week.
Apple had paused sales in Russia in March 2022 after the invasion of Ukraine, in line with Western sanctions targeting technology exports. Although Apple no longer operates in the region, Russian retailers are obtaining the new iPhones via grey imports. These imports are routed through countries like Turkey and Kazakhstan, where sanctions are not enforced.
Prices for the iPhone 16 in Russia start at 112,999 roubles ($1,225), significantly higher than the $799 price tag in the US The Pro Max version, with 1TB storage, is priced at 249,999 roubles ($2,710), more than $1,000 over the US price. Russian consumers continue to show demand for Western technology, despite sanctions.
The Russian government supports the parallel import scheme for products like the iPhone 16. Despite efforts to encourage domestic alternatives, Western goods remain popular, even though officials have been warned to avoid using iPhones due to alleged security concerns, claims Apple has denied.
As the EU finalises its groundbreaking AI Act, major technology firms are lobbying for lenient regulations to minimise the risk of multi-billion dollar fines. The AI Act, agreed upon in May, is the world’s first comprehensive legislation governing AI. However, the details on how general-purpose AI systems like ChatGPT will be regulated remain unclear. The EU has opened the process to companies, academics, and other stakeholders to help draft the accompanying codes of practice, receiving a surge of interest with nearly 1,000 applications.
A key issue at stake is how AI companies, including OpenAI and Stability AI, use copyrighted content to train their models. While the AI Act mandates companies to disclose summaries of the data they use, businesses are divided over how much detail to include, with some advocating for protecting trade secrets. In contrast, others demand transparency from content creators. Major players like Google and Amazon have expressed their commitment to the process, but there are growing concerns about transparency, with some accusing tech giants of trying to avoid scrutiny.
The debate over transparency and copyright has sparked a broader discussion on the balance between regulation and innovation. Critics argue that the EU’s focus on regulation could stifle technological advancements, while others stress the importance of oversight in preventing abuse. Former European Central Bank chief Mario Draghi recently urged the EU to improve its industrial policy to compete with China and the US, emphasising the need for swift decision-making and significant investment in the tech sector.
The finalised code of practice, expected next year, will not be legally binding but will serve as a guideline for compliance. Companies will have until August 2025 to meet the new standards, with non-profits and startups also playing a role in drafting. Some fear that big tech firms could weaken essential transparency measures, underscoring the ongoing tension between innovation and regulation in the digital era.
