Jurisdiction

Meta and TikTok contest the EU’s compliance charges

Meta and TikTok have taken their fight against an the EU supervisory fee to Europe’s second-highest court, arguing that the charges are disproportionate and based on flawed calculations.

The fee, introduced under the Digital Services Act (DSA), requires major online platforms to pay 0.05% of their annual global net income to cover the European Commission’s oversight costs.

Meta questioned the Commission’s methodology, claiming the levy was based on the entire group’s revenue instead of the specific EU-based subsidiary.

The company’s lawyer told judges it still lacked clarity on how the fee was calculated, describing the process as opaque and inconsistent with the spirit of the law.

TikTok also criticised the charge, alleging inaccurate and discriminatory data inflated its payment.

Its legal team argued that user numbers were double-counted when people switched between devices. The Commission had wrongly calculated fees based on group profits rather than platform-specific earnings.

The Commission defended its approach, saying group resources should bear the cost when consolidated accounts are used. A ruling is expected from the General Court sometime next year.

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AI startup faces lawsuit from Disney and Universal

Two of Hollywood’s most powerful studios, Disney and Universal, have launched a copyright infringement lawsuit against the AI firm Midjourney, accusing it of illegally replicating iconic characters.

The studios claim the San Francisco-based company copied their creative works without permission, describing it as a ‘bottomless pit of plagiarism’.

Characters such as Darth Vader, Elsa, and the Minions were cited in the 143-page complaint, which alleges Midjourney used these images to train its AI system and generate similar content.

Disney and Universal argue that the AI firm failed to invest in the creative process, yet profited heavily from the output — reportedly earning $US300 million in paid subscriptions last year.

Despite early attempts by the studios to raise concerns and propose safeguards already adopted by other AI developers,

Midjourney allegedly ignored them and pressed ahead with further product releases. The company, which calls itself a small, self-funded team of 11, has declined to comment on the lawsuit directly but insists it has a long future ahead.

Disney’s legal chief, Horacio Gutierrez, stressed the importance of protecting creative works that result from decades of investment. While supporting AI as a tool for innovation, he maintained that ‘piracy is piracy’, regardless of whether humans or machines carry it out.

The studios are seeking damages and a court order to stop the AI firm from continuing its alleged copyright violations.

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Durov questions motives behind French arrest

Telegram founder Pavel Durov says he remains baffled by his detention in France, describing the incident as politically charged and unjustified. In his first interview since his August 2024 arrest, Durov said French prosecutors treated Telegram’s operations as a mystery.

Durov was indicted on six charges, including complicity in criminal activity, money laundering, and failing to respond to legal requests. He denied the accusations, stating that a top-tier accounting firm audits Telegram and spends millions on compliance quarterly.

‘We did nothing wrong,’ he said, accusing French authorities of failing to follow due legal process.

Carlson criticized the arrest as an attempt to humiliate Durov and questioned why civil liberties advocates were silent.

In response, Durov pointed out that over nine million Telegram users have signed a letter demanding his release. He also emphasized that Telegram is prepared to leave countries that oppose its values.

Telegram’s global user base continues to grow rapidly, reaching one billion monthly active users as of March 2025.

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Reddit targets AI firm over scraped sports posts

Reddit has taken legal action against AI company Anthropic, accusing it of scraping content from the platform’s sports-focused communities.

The lawsuit claims Anthropic violated Reddit’s user agreement by collecting posts without permission, particularly from fan-driven discussions that are central to how sports content is shared online.

Reddit argues the scraping undermines its obligations to over 100 million daily users, especially around privacy and user control. According to the filing, Anthropic’s actions override assurances that users can manage or delete their content as they see fit.

The platform emphasises that users gain no benefit from technology built using their contributions.

These online sports communities are rich sources of original fan commentary and analysis. On a large scale, such content could enable AI models to imitate sports fan behaviour with impressive accuracy.

While teams or platforms might use such models to enhance engagement or communication, Reddit warns that unauthorised use brings serious ethical and legal risks.

The case could influence how AI companies handle user-generated content across the internet, not just in sports. As web scraping grows more common, the outcome of the dispute may shape future standards for AI training practices and online content rights.

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Trump Executive Order revises US cyber policy and sanctions scope

US President Donald J. Trump signed a new Executive Order (EO) aimed at amending existing federal cybersecurity policies. The EO modifies selected provisions of previous executive orders signed by former Presidents Barack Obama and Joe Biden, introducing updates to sanctions policy, digital identity initiatives, and secure technology practices.

One of the main changes involves narrowing the scope of sanctions related to malicious cyber activity. The new EO limits the applicability of such sanctions to foreign individuals or entities involved in cyberattacks against US critical infrastructure. It also states that sanctions do not apply to election-related activities, though this clarification is included in a White House fact sheet rather than the EO text itself.

The order revokes provisions from the Biden-era EO that proposed expanding the use of federal digital identity documents, including mobile driver’s licenses. According to the fact sheet, this revocation is based on concerns regarding implementation and potential for misuse. Some analysts have expressed concerns about the implications of this reversal on broader digital identity strategies.

In addition to these policy revisions, the EO outlines technical measures to strengthen cybersecurity capabilities across federal agencies. These include:

  • Developing new encryption standards to prepare for advances in quantum computing, with implementation targets set for 2030.
  • Directing the National Security Agency (NSA) and Office of Management and Budget (OMB) to issue updated federal encryption requirements.
  • Refocusing artificial intelligence (AI) and cybersecurity initiatives on identifying and mitigating vulnerabilities.
  • Assigning the National Institute of Standards and Technology (NIST) responsibility for updating and guiding secure software development practices. This includes the establishment of an industry consortium and a preliminary update to its secure software development framework.

The EO also includes provisions for improving vulnerability tracking and mitigation in AI systems, with coordination required among the Department of Defence, the Department of Homeland Security, and the Office of the Director of National Intelligence.

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UK judges issue warning on unchecked AI use by lawyers

A senior UK judge has warned that lawyers may face prosecution if they continue citing fake legal cases generated by AI without verifying their accuracy.

High Court justice Victoria Sharp called the misuse of AI a threat to justice and public trust, after lawyers in two recent cases relied on false material created by generative tools.

In one £90 million lawsuit involving Qatar National Bank, a lawyer submitted 18 cases that did not exist. The client later admitted to supplying the false information, but Justice Sharp criticised the lawyer for depending on the client’s research instead of conducting proper legal checks.

In another case, five fabricated cases were used in a housing claim against the London Borough of Haringey. The barrister denied using AI but failed to provide a clear explanation.

Both incidents have been referred to professional regulators. Sharp warned that submitting false information could amount to contempt of court or, in severe cases, perverting the course of justice — an offence that can lead to life imprisonment.

While recognising AI as a useful legal tool, Sharp stressed the need for oversight and regulation. She said AI’s risks must be managed with professional discipline if public confidence in the legal system is to be preserved.

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Odyssey presents immersive AI-powered streaming

Odyssey, a startup founded by self-driving veterans Oliver Cameron and Jeff Hawke, has unveiled an AI model that allows users to interact with streaming video in real time.

The technology generates video frames every 40 milliseconds, enabling users to move through scenes like a 3D video game instead of passively watching. A demo is currently available online, though it is still in its early stages.

The system relies on a new kind of ‘world model’ that predicts future visual states based on previous actions and environments. Odyssey claims its model can maintain spatial consistency, learn motion from video, and sustain coherent video output for five minutes or more.

Unlike models trained solely on internet data, Odyssey captures real-world environments using a custom 360-degree, backpack-mounted camera to build higher-fidelity simulations.

Tech giants and AI startups are exploring world models to power next-generation simulations and interactive media. Yet creative professionals remain wary. A 2024 study commissioned by the Animation Guild predicted significant job disruptions across film and animation.

Game studios like Activision Blizzard have been scrutinised for using AI while cutting staff.

Odyssey, however, insists its goal is collaboration instead of replacement. The company is also developing software to let creators edit scenes using tools like Unreal Engine and Blender.

Backed by $27 million in funding and supported by Pixar co-founder Ed Catmull, Odyssey aims to transform video content across entertainment, education, and advertising through on-demand interactivity.

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Apple sues European Commission over DMA interoperability ruling

Apple is mounting a legal challenge against the European Commission after being ordered to open up its tightly controlled ecosystem to rival companies under the Digital Markets Act (DMA).

The tech giant filed its appeal with the EU’s General Court, claiming the decision would undermine user privacy and harm innovation.

The dispute centres on a March ruling by the Commission following months of dialogue, which concluded that Apple must guarantee interoperability—a requirement that would allow third-party developers to connect non-Apple products, such as smartwatches and headphones, to iPhones and iPads.

Apple has pushed back strongly, arguing that the mandate is ‘unreasonable, costly and stifles innovation.’ A company spokesperson said the move would benefit what Apple describes as ‘data-hungry companies’ like Meta and Samsung, who could gain access to users’ most sensitive data through third-party connections.

Since December 2024, the European Commission has been pressing Apple to make its ecosystem more open to promote competition across the digital sector. However, Apple maintains that complying with the order would compromise the company’s privacy-first approach and violate its data protection standards.

The Commission, meanwhile, insists the measures are proportionate and fully aligned with the EU’s stringent privacy and security framework. It argues that the order would not strip Apple of control over its devices, but rather enable fairer access for other tech players while keeping user protections intact.

The case is set to become a major test of how far the EU can push tech giants to comply with the Digital Markets Act, which was designed to curb the dominance of so-called ‘gatekeepers’ in digital markets.

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Reddit accuses Anthropic of misusing user content

Reddit has taken legal action against AI startup Anthropic, alleging that the company scraped its platform without permission and used the data to train and commercialise its Claude AI models.

The lawsuit, filed in San Francisco’s Superior Court, accuses Anthropic of breaching contract terms, unjust enrichment, and interfering with Reddit’s operations.

According to Reddit, Anthropic accessed the platform more than 100,000 times despite publicly claiming to have stopped doing so.

The complaint claims Anthropic ignored Reddit’s technical safeguards, such as robots.txt files, and bypassed the platform’s user agreement to extract large volumes of user-generated content.

Reddit argues that Anthropic’s actions undermine its licensing deals with companies like OpenAI and Google, who have agreed to strict content usage and deletion protocols.

The filing asserts that Anthropic intentionally used personal data from Reddit without ever seeking user consent, calling the company’s conduct deceptive. Despite public statements suggesting respect for privacy and web-scraping limitations, Anthropic is portrayed as having disregarded both.

The lawsuit even cites Anthropic’s own 2021 research that acknowledged Reddit content as useful in training AI models.

Reddit is now seeking damages, repayment of profits, and a court order to stop Anthropic from using its data further. The market responded positively, with Reddit’s shares closing nearly 67% higher at $118.21—indicating investor support for the company’s aggressive stance on data protection.

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Morocco detains suspect in France’s crypto abduction cases

Moroccan police arrested 24-year-old dual French-Moroccan Bajjou Badiss Mohamed AmiDe, wanted for kidnappings of cryptocurrency holders in France. An Interpol red notice issued by French authorities led to his identification and arrest.

Charges include organised crime, kidnapping, and extortion. Due to his dual nationality, he will face trial in Morocco, with French prosecutors sharing the case files.

The arrest follows a recent surge in violent attacks on crypto entrepreneurs in France. Interior Minister Bruno Retailleau has introduced emergency security measures, including private consultations and home risk assessments for those at risk.

France has seen 14 of the world’s 50 known attacks on crypto figures over the past year, according to Ledger co-founder Éric Larchevêque.

High-profile incidents include the attempted abduction of Paymium CEO Pierre Noizat’s daughter and the arrest of seven suspects linked to a victim found with a severed finger. Officials stress the urgency of judicial action to prevent further violence.

French authorities have thanked Morocco for its cooperation, while proceedings against Bajjou will continue under Moroccan jurisdiction.

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