Jurisdiction

23andMe to pay $30 million in data breach settlement

American personal genomics and biotechnology company 23andMe has agreed to a $30 million settlement after a data breach exposed the personal information of 6.9 million users. The breach, which occurred last year, compromised sensitive data, including DNA Relatives profiles and Family Tree information. Affected users will receive financial compensation and three years of security monitoring under the Privacy & Medical Shield + Genetic Monitoring program.

The lawsuit also accused 23andMe of failing to inform customers of Chinese and Ashkenazi Jewish descent that they were specifically targeted in the breach. The stolen information was later found for sale on the dark web. A federal judge must now approve the proposed settlement, which the company considers fair and beneficial for its users.

Despite its financial challenges, the company expects to cover $25 million of the settlement with cyber insurance. The breach, which began in April 2023 and lasted five months, affected nearly half of the company’s 14.1 million customers at the time. 23andMe disclosed the incident in an October 2023 blog post.

The company, led by co-founder Anne Wojcicki, is also facing financial difficulties. It posted a significant quarterly loss and has been attempting to go private. Shares of 23andMe have been trading below $1 since December 2023, a sharp drop from its original public offering price.

Facebook and Instagram data to power Meta’s AI models

Meta Platforms will soon start using public posts on Facebook and Instagram to train its AI models in the UK. The company had paused its plans after regulatory concerns from the Irish privacy regulator and Britain’s Information Commissioner’s Office (ICO). The AI training will involve content such as photos, captions, and comments but will exclude private messages and data from users under 18.

Meta faced privacy-related backlash earlier in the year, leading to its decision to halt the AI model launch in Europe. The company has since engaged with UK regulators, resulting in a clearer framework that allows the AI training plans to proceed. The new strategy simplifies the way users can object to their data being processed.

From next week, Facebook and Instagram users in the UK will receive in-app notifications explaining how their public posts may be used for AI training. Users will also be informed on how to object to the use of their data. Meta has extended the window in which objections can be filed, aiming to address transparency concerns raised by both the ICO and advocacy groups.

Earlier in June, Meta’s AI plans faced opposition from privacy advocacy groups like NOYB, which urged regulators to intervene. These groups argued that Meta’s notifications did not fully meet the EU’s privacy and transparency standards. Meta’s latest updates are seen as an effort to align with these regulatory demands.

Elon Musk’s X may sidestep EU’s big tech regulations

Elon Musk’s social media platform, X, is likely to avoid being subjected to the EU’s stringent new tech regulations aimed at curbing the power of Big Tech. The company is expected to fall outside the scope of the Digital Markets Act (DMA), which imposes strict rules on firms that act as key intermediaries between businesses and consumers.

The European Commission investigated X in May, exploring whether the platform met the criteria to be classified as a ‘gatekeeper’ under the DMA. To qualify, a company must have over 45 million active users and a market capitalisation of at least €75 billion. Gatekeepers must open their messaging apps to rival services, allow users more control over pre-installed apps, and avoid giving preferential treatment to their products.

X has argued that it does not serve as a critical gateway between businesses and consumers, distancing itself from the obligations set by the DMA. While the investigation remains ongoing, the Commission has not provided further comment on its findings.

However, X faces more pressing issues under the EU’s newly implemented Digital Services Act (DSA), which requires large platforms to actively combat harmful or illegal content or face significant fines—up to 6% of their global turnover. X is under scrutiny as part of several ongoing investigations related to its compliance with the DSA.

Antitrust investigation finds Amazon and Flipkart prioritised sellers

An Indian antitrust investigation has concluded that Amazon and Walmart’s Flipkart breached competition laws by favouring select sellers on their platforms. The probe, initiated by the Competition Commission of India (CCI), revealed that both companies created an ecosystem that prioritised certain sellers, making it harder for other retailers to compete.

Reports found that these preferred sellers were given an unfair advantage, appearing higher in search results and receiving additional services, leading to deep discounting practices. The findings highlighted that these practices harmed smaller retailers and stifled competition, especially in the mobile phone sector.

Both Amazon and Flipkart are expected to review the reports and submit objections before any fines are imposed. These companies have consistently denied any wrongdoing and argued that their operations comply with Indian regulations.

The investigation stemmed from complaints by traditional retailers and follows growing concerns about the dominance of e-commerce giants in India. Both Amazon and Flipkart remain major players in a market projected to be worth $160 billion by 2028.

Illegal gun parts from China seized by US authorities

US authorities have taken down over 350 websites selling gun silencers and parts from China used to convert semiautomatic pistols into fully automatic machine guns. The move follows an investigation that started in August 2023, targeting illegal sales of these dangerous devices.

Undercover operations revealed shipments from China, falsely labelled as items such as ‘necklaces’ or ‘toys’. Instead, these packages contained machine gun conversion devices, known as ‘switches’, and ‘silencers’, both banned under the National Firearms Act. Some websites even sold counterfeit goods, misusing the trademark of gun manufacturer Glock Inc.

Acting US Attorney Joshua Levy emphasised the importance of seizing these websites to halt the influx of illegal and dangerous contraband. Law enforcement has so far seized over 700 machine gun conversion devices, 87 illegal suppressors, 59 handguns, and 46 long guns.

Officials highlighted the growing problem of such devices being easily accessible, posing a serious threat to public safety. The seizures are part of a broader effort to tackle the illegal gun parts trade and protect communities.

Former Google exec reveals giant’s strategy to crush ad rivals

In 2009, Google’s goal was to ‘crush’ rival ad networks, as revealed by a former executive in a point highlighted in the ongoing US Department of Justice antitrust trial against the tech giant. The remarks, made by David Rosenblatt, Google’s former president of display advertising, surfaced as part of the prosecution’s argument that Google has been trying to monopolise the online adtech market, dominating both publisher ad servers and advertiser ad networks.

The trial is gaining momentum and has introduced evidence of Google’s internal strategies since it acquired DoubleClick in 2008. Rosenblatt’s comments, referenced in court notes, underscored Google’s aim to control the digital advertising ecosystem. He compared the company’s adtech ambitions to those of major financial institutions, stating that Google wanted to achieve in display ads what it had already done with search ads.

Google has denied the allegations, asserting it faces strong competition from other major players like Microsoft, Amazon, and Meta. The company argues that its advertising tools are common in the industry. However, the prosecution contends that Google’s integrated ad services give it an unfair advantage, particularly by making it difficult for publishers to switch platforms, a challenge Rosenblatt described as a ‘nightmare.’

Should the court rule against Google, prosecutors have called for the company to sell off its Google Ad Manager, including its publisher ad server and ad exchange, to restore competition in the digital advertising market.

Major data centre investment by Amazon in the UK

Amazon has announced plans to invest £8 billion in the UK to expand its data centre operations. The investment will be made by Amazon Web Services (AWS) over the next five years, aiming to meet growing demand for cloud computing, largely driven by AI advancements.

This new investment will add to AWS’s previous contributions of £3 billion since 2022, with facilities already in London and Manchester. The company expects the project to contribute £14 billion to the UK economy and support more than 14,000 jobs by the end of 2028.

AWS’s investment follows significant European cloud computing expansions, including substantial projects in Spain and Germany. After a pause last year, many corporate clients have resumed cloud spending, driven by a renewed interest in AI.

The announcement has been welcomed by the UK government, with Finance Minister Rachel Reeves highlighting its importance ahead of an upcoming investment summit. The exact locations of the new data centres will not be disclosed due to security reasons, but they will meet growing demand around London.

Russia to invest $660 million in modernising internet censorship

Russia is ramping up its efforts to control the internet by allocating nearly 60 billion roubles ($660 million) over the next five years to upgrade its web censorship system, known as TSPU. The system, developed by state regulator Roskomnadzor, is designed to filter and block content deemed harmful or illegal by the government. The funding, part of a broader ‘Cybersecurity Infrastructure’ project, will acquire new software and hardware and expand the system’s capabilities.

The initiative is seen as part of Moscow’s broader crackdown on online freedoms, which has intensified since Russia‘s invasion of Ukraine in 2022. The government has been targeting independent media and social media platforms, blocking websites, and cracking down on using Virtual Private Networks (VPNs), which many Russians use to bypass government restrictions. Roskomnadzor has been increasingly influential in blocking access to these tools, with officials planning to enhance the system’s efficiency further.

The TSPU system was introduced under a 2019 law that requires internet service providers to install government-controlled equipment to monitor and manage web traffic. As of late 2022, over 6,000 TSPU devices had been deployed across Russian networks. The new funding will modernise this infrastructure and improve the system’s ability to detect and block VPN services, making it harder for Russians to access uncensored content.

Why does this matter?

While the Kremlin continues to position these measures as necessary for national security, critics see them as a blatant attack on free speech. Digital rights activists, including those from Roskomsvoboda, warn that while new investments in censorship technology will tighten government control, it is unlikely to eliminate access to independent information. Developers of VPNs and other circumvention tools remain determined, stating that innovation and motivation are essential in the ongoing struggle between censorship and free access.

Russia’s battle with VPNs and independent media is part of a broader campaign against what it calls Western information warfare. Despite the government’s efforts to clamp down, demand for alternative ways to access the internet remains high. Developers are working on more resilient tools, even as the state pours resources into strengthening its censorship apparatus. This tug-of-war between government control and free access to information seems set to continue, with both sides ramping up their efforts.

US Senate to question tech leaders on election security

Tech industry leaders from some of the world’s most influential companies, including Google, Meta, Microsoft, and Adobe, are set to testify before the US Senate Intelligence Committee on 18 September. The hearing will focus on the growing threats to election security, particularly disinformation and misinformation, ahead of the closely watched 5 November election. As the nation prepares for a contentious face-off between Vice President Kamala Harris and former President Donald Trump, US officials are eager to ensure the integrity of the electoral process by addressing the risks of false online narratives.

Executives like Alphabet’s global affairs president Kent Walker, Meta’s Nick Clegg, and Microsoft’s Brad Smith are no strangers to congressional scrutiny, having testified before lawmakers in previous election-related hearings. Their appearance next week underscores the ongoing concerns about how foreign actors, such as Russia, Iran, and China, may attempt to meddle in American elections by exploiting digital platforms. These countries have repeatedly denied any interference while simultaneously accusing the US of involving itself in their political affairs, claims that Washington dismisses.

The testimony from these tech giants is expected to shed light on how their platforms prepare to handle the threats of misinformation and foreign influence leading up to the election. With the stakes as high as ever in this tight political contest, the role of technology companies in safeguarding democracy will be front and centre.

EU court rules against Apple’s tax deal and Google’s market practices

In a significant victory for European regulators, the EU’s top court upheld rulings against Apple and Google, marking key moments in the ongoing battle against Big Tech. Margrethe Vestager, the EU’s antitrust chief, has been at the forefront of efforts to challenge multinational companies benefiting from tax deals and engaging in anti-competitive behaviour. On Tuesday, the courts sided with her in two major cases involving Apple’s tax deal with Ireland and Google’s market practices.

The Apple case, which dates back to 2016, revolved around 13 billion euros ($14.4 billion) in back taxes. The European Commission argued that Apple’s arrangement with Ireland allowed the tech giant to pay an artificially low tax rate, at times as low as 0.005%. The Luxembourg-based Court of Justice agreed, confirming that Apple had received unlawful state aid and Ireland must recover the amount. Apple expressed disappointment, arguing that its income had already been taxed in the US and that the EU was attempting to change the rules retroactively.

Ireland, too, had challenged the ruling despite benefiting from the corporate taxes of large tech companies. The country’s low tax rates had attracted giants like Apple to establish European headquarters there. However, in a shift that signals broader changes in global tax policy, Ireland has since agreed to align with new international tax standards, even though its multinational tax take continues to grow.

On the same day, the European Court also ruled against Google in a separate antitrust case. In 2017, the European Commission fined Google 2.42 billion euros for abusing its market dominance by promoting its shopping service over smaller European rivals. Google appealed the decision but was met with a firm rejection. The court ruled that Google’s practices were discriminatory and did not constitute fair competition on the merits. Google, like Apple, voiced disappointment with the decision, though it claimed to have changed its business practices since the original ruling.

The ruling adds to the 8.25 billion euros in antitrust fines Google has accumulated in Europe over the past decade. The company continues to face scrutiny, with ongoing cases related to its Android operating system and AdSense advertising platform and an investigation that could lead to selling parts of its adtech business.

Why does this matter?

The decisions against Apple and Google reflect a broader movement within Europe to challenge the power of Big Tech. These cases are part of a growing trend where governments seek to hold multinational companies accountable for their tax practices and market behaviours. Other major corporations, such as IKEA and Nike, are also under investigation for their tax arrangements as regulators across the globe attempt to reshape the corporate landscape and foster a fairer competitive environment.