Jurisdiction

AppLovin joins TikTok takeover frenzy

As the 5 April deadline approaches for TikTok to secure a non-Chinese buyer or face a US ban, the list of potential acquirers continues to grow.

Marketing platform AppLovin has submitted a preliminary bid to acquire TikTok’s operations outside of China, aiming to expand its footprint in the global digital advertising arena.

AppLovin’s move adds to the mounting interest in TikTok, with Amazon and a consortium led by OnlyFans founder Tim Stokely also entering the fray.

These developments come amid US government concerns over TikTok’s Chinese ownership, which officials argue poses national security risks, a claim that TikTok and its parent company, ByteDance, have consistently denied.

The White House has taken an unusually active role in facilitating the sale.

President Donald Trump indicates openness to a deal wherein China approves the transaction in exchange for relief from US tariffs on Chinese imports.

This intertwining of trade negotiations and tech acquisitions underscores the complex geopolitical landscape influencing the fate of TikTok in the US.

Private equity firm Blackstone is also evaluating a minority investment in TikTok’s US operations, potentially joining non-Chinese shareholders like Susquehanna International Group and General Atlantic in contributing fresh capital.

The future of TikTok, an app used by nearly half of all Americans, remains uncertain as the deadline looms and negotiations continue.

For more information on these topics, visit diplomacy.edu.

Authors in London protest Meta’s copyright violations

A wave of protest has hit Meta’s London headquarters today as authors and publishing professionals gather to voice their outrage over the tech giant’s reported use of pirated books to develop AI tools.

Among the protesters are acclaimed novelists Kate Mosse and Tracy Chevalier and poet Daljit Nagra, who assembled in Granary Square near Meta’s King’s Cross office to deliver a complaint letter from the Society of Authors (SoA).

At the heart of the protest is Meta’s alleged reliance on LibGen, a so-called ‘shadow library’ known for hosting over 7.5 million books, many without the consent of their authors.

A recent searchable database published by The Atlantic revealed that thousands of copyrighted works, including those by renowned authors, may have been used to train Meta’s AI models, provoking public outcry and legal action in the US.

Vanessa Fox O’Loughlin, chair of the SoA, condemned Meta’s reported actions as ‘illegal, shocking, and utterly devastating for writers,’ arguing that such practices devalue authors’ time and creativity.

‘A book can take a year or longer to write. Meta has stolen books so that their AI can reproduce creative content, potentially putting these same authors out of business’ she said.

Meta has denied any wrongdoing, with a spokesperson stating that the company respects intellectual property rights and believes its AI training practices comply with existing laws.

Still, the damage to trust within the creative community appears significant. Author AJ West, who discovered his novels were listed on LibGen, described the experience as a personal violation:

‘I was horrified to see that my novels were on the LibGen database, and I’m disgusted by the government’s silence on the matter,’ he said, adding, ‘To have my beautiful books ripped off like this without my permission and without a penny of compensation then fed to the AI monster feels like I’ve been mugged.’

Legal action is already underway in the US, where a group of high-profile writers, including Ta-Nehisi Coates, Junot Díaz, and Sarah Silverman, have filed a lawsuit against Meta for copyright infringement.

The suit alleges that Meta CEO Mark Zuckerberg and other top executives knew that LibGen hosts pirated content when they greenlit its use for AI development.

The protest is also aimed at UK lawmakers. Authors like Richard Osman and Kazuo Ishiguro have joined the call for British officials to summon Meta executives before parliament.

The Society of Authors has launched a petition on Change.org that has already attracted over 7,000 signatures.

Demonstrators were urged to bring placards and spread their message online using hashtags like #MetaBookThieves and #MakeItFair as they rally against alleged copyright violations and for broader protection of creative work in the age of AI.

The case, one of the lots, describes the increasingly tense relationship between the tech industry, content and data policies in training AI systems, which hardly depend on the written word and the most various literature, facts, and info from the written tradition to be trained (and thus able) to respond to most various user requests and alongside be accurate in their responses.

For more information on these topics, visit diplomacy.edu.

UK government announces new cyber bill to strengthen national defences and protect critical infrastructure

The UK government has unveiled plans for a new Cyber Security and Resilience Bill aimed at enhancing the country’s ability to defend against the growing risk of cyber threats. Scheduled to be introduced later this year, the Bill forms a key part of the government’s broader strategy to protect critical national infrastructure (CNI), support economic growth, and ensure the resilience of the UK’s digital landscape.

The forthcoming legislation will focus on bolstering the cyber resilience of essential services—such as healthcare, energy, and IT providers—that underpin the economy and daily life. Around 1,000 vital service providers will be required to meet strengthened cyber security standards under the new rules. These measures are designed to safeguard supply chains and key national functions from increasingly sophisticated cyber attacks affecting both public and private sectors.

In addition, the government is considering extending cyber security regulations to over 200 data centres across the country. These centres are integral to the functioning of modern finance, e-commerce, and digital communication. By improving their security, the government hopes to safeguard services that rely heavily on data, such as online banking, shopping platforms, and social media.

If adopted, the government’s proposals include:

  • Expanding the scope of the NIS Regulations. The scope of the Network and Information Systems (NIS) Regulations would be broadened to include a wider range of organisations and suppliers. This expansion would bring data centres, Managed Service Providers (MSPs), and other critical suppliers under the regulatory framework, ensuring that more entities are held to high standards of cyber security and resilience.
  • Enhanced regulatory powers. Regulators would be equipped with additional tools to strengthen cyber resilience within the sectors they oversee. This includes new obligations for organisations to report a broader range of significant cyber incidents, enabling faster and more informed responses to emerging threats.
  • Greater Flexibility to Adapt. The government would gain increased flexibility to update the framework in line with the evolving threat landscape. This means regulations could be swiftly extended to cover new and emerging sectors, ensuring the UK remains agile in the face of dynamic cyber risks.
  • New Executive Powers for National Security. In circumstances where national security is at stake, the government would be granted new executive powers to act decisively in response to serious cyber threats.

For more information on these topics, visit diplomacy.edu.

Japan passes landmark cyber defence bill

Japan has passed the Active Cyber Defence Bill, which permits the country’s military and law enforcement agencies to undertake pre-emptive measures in response to cyber threats.

The legislation adopts a two-pronged approach, focusing on both passive and active cyber defence. It includes the establishment of a cybersecurity council and an oversight committee to enhance threat analysis and information-gathering capabilities. The bill also introduces new requirements for critical infrastructure providers to report cybersecurity incidents promptly. Additionally, it enables the government to collect technical information—such as IP addresses and timestamps—from telecommunications providers in cases where a potential cyberattack is identified, to monitor communications between Japan and external actors.

The legislation also grants the military powers to carry out active measures against cyber threats. This includes the deployment of ‘cyber harm-prevention officers’, tasked with actions such as disrupting servers involved in cyberattacks and responding to critical incidents.

While the bill is positioned as part of Japan’s broader efforts to strengthen its cyber resilience, some commentary has raised questions about the balance between security and oversight.

For more information on these topics, visit diplomacy.edu.

Japan targets Apple and Google with new law

The Japan Fair Trade Commission (JFTC) announced on Monday that it has designated Apple Inc., its Japanese subsidiary iTunes K.K., and Google LLC under the new smartphone software competition promotion law.

The law targets dominant IT companies in the smartphone app market, regulating areas like smartphone operating systems, app stores, web browsing software, and search engines.

The primary aim of the law is to prevent these giants from blocking market entry for other companies or giving preferential treatment to their own services. The law will take full effect in December, with the designated companies required to correct any problematic practices.

Apple will be required to allow other companies into the App Store business instead of monopolising it, fostering price competition. Google will be prohibited from displaying its services in search results instead of favouring them.

In response, both companies expressed concerns, with Apple questioning the impact on user experience and Google vowing to engage in discussions to ensure fairness.

For more information on these topics, visit diplomacy.edu.

OpenAI is now valued at $300 billion after new funding

OpenAI has secured a $40 billion funding deal from SoftBank, pushing its valuation to $300 billion instead of staying below that mark, making it the third most valuable private company in the world.

It now ranks behind Elon Musk’s SpaceX, valued at around $350 billion, instead of taking the top spot, and TikTok’s parent company, ByteDance, which stands at approximately $315 billion.

The valuation surpasses major firms like Chevron, Salesforce, McDonald’s, Pepsico, and Samsung instead of lagging behind them.

Funding is structured in two phases, beginning with an initial $10 billion investment. The remaining $30 billion is expected to be provided by the end of 2025, as reported by the New York Times.

OpenAI stated that this capital will allow the company to advance AI research instead of stagnating and expand its infrastructure with more powerful tools.

Founded in 2015 as a non-profit, OpenAI later shifted to a capped-profit model to attract investment instead of relying solely on donations while continuing its work in AI development.

Despite facing operational challenges and legal disputes, including a high-profile lawsuit from Musk opposing its transition to a profit-driven model, OpenAI has continued to grow.

Its ChatGPT platform now boasts 500 million weekly users instead of seeing a decline. In February, investors, including Musk, sought control of the firm, but CEO Sam Altman firmly rejected the proposal, reaffirming that ‘OpenAI is not for sale’ instead of giving in to external pressure.

For more information on these topics, visit diplomacy.edu.

MetaAI launches in Europe amid data concerns

Meta has resumed the roll-out of its MetaAI across Europe after halting the launch last year due to regulatory uncertainty.

The Irish Data Protection Commission (DPC) still has questions regarding Meta’s AI tool, particularly in relation to its use of personal data from Facebook and Instagram users to train large language models.

The company has been in discussions with the DPC, but instead of an agreement, it remains under review as the tool continues to roll out.

MetaAI was first introduced in the US in September 2023, followed by India in June 2024, and the UK in October. It enables users to interact with a chat function across Facebook, Instagram, Messenger, and WhatsApp.

However, its expansion in Europe faced delays last summer due to concerns raised by the Irish privacy watchdog.

The company has expressed confidence in its compliance with the EU’s data protection laws and has been transparent with the DPC about its launch. However, failure to comply with the General Data Protection Regulation (GDPR) could lead to significant fines.

Additionally, certain aspects of MetaAI fall under the scope of Europe’s Digital Services Act (DSA), which requires the company to meet specific standards on user safety and transparency.

The European Commission has indicated it is waiting for a risk assessment from Meta to ensure that the tool complies with DSA obligations. While initial elements may not be directly relevant to the DSA, the Commission will continue to monitor the deployment closely.

For more information on these topics, visit diplomacy.edu.

European Commission charges €58.2 million in fees for DSA enforcement

The European Commission has charged the largest online platforms in the EU a total of €58.2 million in supervisory fees for their enforcement under the Digital Services Act (DSA).

These fees, which apply to platforms with over 45 million users per month, aim to fund the Commission’s activities for DSA enforcement, including administrative and human resource costs.

Meta, TikTok, and Google have filed five pending court cases against the fees, challenging the charges.

The DSA, designed to increase platform accountability, became fully applicable in February 2024, and the Commission has designated 25 Very Large Online Platforms, including major players like Amazon and LinkedIn.

During the 2024 period, the Commission launched formal proceedings against several platforms and sent over 100 requests for information.

However, instead of these fees fully covering the Commission’s expenses, they led to a deficit of €514,061. Investigations into platforms like X are ongoing, with transparency issues being a key concern.

For more information on these topics, visit diplomacy.edu.

EU regulators seek common approach on DSA

The Coimisiún na Meán has warned that differing interpretations of the Digital Services Act (DSA) by EU regulators are hindering a unified approach to online platform regulation.

Maria Donde, Director of International Affairs at Coimisiún na Meán, highlighted the challenges of aligning various regulators’ approaches to the DSA, which has left room for interpretation.

She emphasised the importance of finding common ground, especially as the DSA, which came into effect last February, imposes transparency and election integrity requirements on platforms.

The DSA requires each EU member state to appoint a Digital Services Coordinator as a point of contact for platforms. Ireland, home to major platforms like TikTok and X, is at the forefront of enforcement.

Donde stressed the need for a consistent voice within the EU, particularly as the law faces criticism globally. The US government has condemned the EU’s regulatory approach, calling it a threat to free speech and accusing Europe of sidelining US tech companies.

The European Commission has already initiated several investigations under the DSA, targeting platforms such as X, TikTok, and Temu. These probes are ongoing, with potential fines for non-compliance reaching up to 6% of a company’s global turnover.

For more information on these topics, visit diplomacy.edu.

French watchdog fines Apple for abuse of app tracking tool

Apple has been fined €150 million ($162.42 million) by French antitrust regulators for allegedly abusing its dominant position in mobile app advertising between 2021 and 2023. The fine is the first to be imposed on Apple over its App Tracking Transparency (ATT) tool.

While the tool, which allows iPhone and iPad users to control app tracking, is not criticised itself, the French competition watchdog claimed its implementation was excessive and not proportional to its goal of protecting personal data.

The French regulators stated that ATT particularly harmed smaller publishers, who rely heavily on third-party data for their business. Despite the fine, Apple was not required to modify the ATT tool.

The decision follows complaints from online advertisers, publishers, and internet networks, who accused Apple of misusing its market power. Apple expressed disappointment with the fine but noted that no changes to the tool were mandated.

The fine comes after a €1.8 billion penalty last year from the EU, which accused Apple of restricting music streaming competitors. Additionally, the German antitrust agency has launched a probe into Apple for allegedly giving itself preferential treatment with the same privacy tool.

For more information on these topics, visit diplomacy.edu.