Jurisdiction

Google and Apple risk fines under EU’s Digital Markets Act

Google has been charged with two violations of the EU’s Digital Markets Act (DMA), while Apple has been ordered to allow greater interoperability with rival devices.

The European Commission accused Google of restricting app developers from promoting external offers outside its Play Store and favouring its own services, such as Google Flights, over competitors in search results. If found guilty, the company could face fines of up to 10% of its global annual revenue.

The Commission also directed Apple to make its iPhones and iPads more accessible to rival smartphone and accessory makers. Additionally, Apple must respond to app developers’ requests for interoperability with its systems within a set timeframe.

Both companies pushed back against the EU’s findings, with Google arguing that compliance could harm consumers and businesses, while Apple claimed the rules would slow innovation and unfairly benefit competitors.

Regulators have intensified their crackdown on Big Tech despite warnings from the United States government against targeting American firms.

Google has already been fined over €8 billion for previous antitrust violations in Europe, and failure to comply with the latest orders could lead to further penalties for both tech giants.

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OpenAI and Google face lawsuits while advocating for AI copyright exceptions

OpenAI and Google have urged the US government to allow AI models to be trained on copyrighted material under fair use.

The companies submitted feedback to the White House’s ‘AI Action Plan,’ arguing that restrictions could slow AI progress and give countries like China a competitive edge. Google stressed the importance of copyright and privacy exceptions, stating that text and data mining provisions are critical for innovation.

Anthropic also responded to the White House’s request but focused more on AI risks to national security and infrastructure rather than copyright concerns.

Meanwhile, OpenAI and Google are facing multiple lawsuits from news organisations and content creators, including Sarah Silverman and George R.R. Martin, who allege their works were used without permission for AI training.

Other companies, including Apple and Nvidia, have also been accused of improperly using copyrighted material, such as YouTube subtitles, to train AI models.

As legal challenges continue, major tech firms remain committed to pushing for regulations that support AI development while navigating the complexities of intellectual property rights.

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Amazon considers further appeal after losing GDPR case

Amazon has lost its appeal against a €746 million fine imposed by Luxembourg’s data protection regulator for breaching EU privacy laws.

The country’s administrative court upheld the penalty in a ruling on 18 March, siding with the National Commission for Data Protection (CNPD), which found Amazon had unlawfully processed personal data under the General Data Protection Regulation (GDPR).

The fine remains the largest issued under the EU privacy rules.

The CNPD also ordered Amazon to implement corrective measures, although enforcement will be suspended during the appeal period.

Amazon criticised the decision, arguing the fine was based on subjective legal interpretations without prior guidance from regulators. The company confirmed it is considering further legal action.

Europe has taken a strict stance on data privacy violations, with GDPR setting a global benchmark for consumer protections.

The ruling against Amazon reinforces the EU’s commitment to holding major tech companies accountable for their handling of personal data.

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RFE/RL sues Trump administration over grant cuts

Radio Free Europe/Radio Liberty (RFE/RL), the US-funded news outlet established during the Cold War to reach people under Communist regimes, filed a lawsuit against President Donald Trump’s administration on Tuesday.

The lawsuit aims to block the termination of its federal grant, which was recently cut by the US Agency for Global Media (USAGM).

The cuts affect not only RFE/RL, which broadcasts to Eastern Europe, Russia, and Ukraine, but also Radio Free Asia, which serves China and North Korea.

The decision to cut funding has been widely criticized by press freedom advocates and human rights organizations. Additionally, over 1,300 employees of Voice of America were placed on leave after Trump ordered cuts across USAGM and several other federal agencies.

In its lawsuit, RFE/RL argued that terminating the grant violates federal laws, including the US Constitution, which grants Congress the exclusive authority over federal spending.

RFE/RL President and CEO Stephen Capus called the move a dangerous step towards ceding influence to adversaries’ propaganda and censorship. The case was filed in US District Court for the District of Columbia.

While the Trump administration justified the cuts as part of its broader cost-reduction efforts, the action has drawn backlash from those who view it as an attack on free speech and independent journalism.

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Google acquires Wiz in $32 billion deal

Google has finalized a $32 billion acquisition of Israeli cybersecurity firm Wiz, sealing the deal just weeks after Donald Trump’s inauguration.

The agreement, a significant increase from Google’s initial $23 billion offer, was aided by the expectation of a friendlier antitrust review under the new administration, sources familiar with the negotiations said.

Wiz had considered an IPO before returning to the negotiating table, with new Chief Financial Officer Fazal Merchant playing a key role in shaping the deal alongside CEO Assaf Rappaport.

Google’s cloud chief, Thomas Kurian, was also instrumental in the agreement, which includes an unusually high $3.2 billion breakup fee should regulatory issues derail the transaction.

With Wiz boasting 70% annual revenue growth and over $700 million in annualized revenue, Google viewed the premium price as justified.

However, concerns remain over potential antitrust scrutiny, particularly given Google’s ongoing legal battles with the US Department of Justice over its dominance in search and ad technology.

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Shareholders’ lawsuit against Amazon rejected with prejudice

A US judge has dismissed a lawsuit accusing Amazon of misleading shareholders about its treatment of third-party sellers and its expansion plans, which ultimately led to an antitrust case by the Federal Trade Commission (FTC).

The ruling by Judge John Chun in Seattle was made with prejudice, meaning the lawsuit cannot be refiled. Lawyers representing the shareholders did not immediately comment on the decision.

Investors had alleged that Amazon hid an algorithm that ensured its own products were priced lower than competitors’ and failed to disclose the risks of overexpanding its fulfilment network.

However, Judge Chun found no compelling evidence that Amazon executives, including former CEO Jeff Bezos and current CEO Andy Jassy, intentionally misled investors.

The court ruled that Amazon’s actions were more likely driven by profit-focused business strategies rather than fraud.

The FTC filed an antitrust case against Amazon in September 2023, accusing the company of using its market power to suppress competition and inflate prices.

Eighteen US states and Puerto Rico have joined the lawsuit, with a nonjury trial set for October 2026. The shareholder lawsuit covered Amazon stockholders from February 2019 to April 2022.

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Apple loses appeal against German regulators

Apple has lost its appeal against a regulatory decision that could impose stricter controls on the company in Germany.

The Federal Court of Justice upheld a 2023 ruling by the country’s competition authority, which classified Apple as a company of ‘paramount cross-market significance for competition,’ placing it under closer scrutiny.

A decision like this means Apple will face potential regulatory measures similar to those imposed on tech giants such as Google’s parent company, Alphabet, and Facebook’s owner, Meta.

The ruling follows a judge’s earlier indication in January that the court would side with the regulator. Apple had attempted to involve the European Court of Justice in Luxembourg, but the request was denied.

In Europe, Apple’s App Store has come under increasing scrutiny, with regulators expressing concerns over how the company collects and utilises vast amounts of user data. This latest setback adds to Apple’s ongoing legal and regulatory challenges in the region.

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California’s attempt to regulate online platforms faces legal setback

A federal judge in California has blocked a state law requiring online platforms to take extra measures to protect children, ruling it imposes unconstitutional burdens on tech companies.

The law, signed by Governor Gavin Newsom in 2022, aimed to prevent harm to young users by mandating businesses to assess risks, adjust privacy settings, and estimate users’ ages. Companies faced fines of up to $7,500 per child for intentional violations.

Judge Beth Freeman ruled that the law was too broad and infringed on free speech, siding with NetChoice, a group representing major tech firms, including Amazon, Google, Meta, and Netflix.

NetChoice argued the legislation effectively forced companies to act as government censors under the pretext of protecting privacy.

The ruling marks a victory for the tech industry, which has repeatedly challenged state-level regulations on content moderation and user protections.

California Attorney General Rob Bonta expressed disappointment in the decision and pledged to continue defending the law. The legal battle is expected to continue, as a federal appeals court had previously ordered a reassessment of the injunction.

The case highlights the ongoing conflict between government efforts to regulate online spaces and tech companies’ claims of constitutional overreach.

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US launches national security unit to combat cyberattacks on telecom sector

The Federal Communications Commission (FCC) has launched a national security unit in response to recent cyber incidents affecting US telecommunications firms.

These incidents, attributed to a group known as Salt Typhoon, involved unauthorised access to sensitive data and communications.

The newly formed unit will be led by Adam Chan, FCC’s national security counsel, and will include representatives from eight different bureaus and offices within the agency. The council’s objectives are to:

  • Reduce reliance on foreign entities in the US telecom and technology supply chains.
  • Address vulnerabilities related to cyber threats, espionage, and surveillance.
  • Support U.S. leadership in critical technologies, including 5G, satellites, quantum computing, IoT, and robotics.

Cybersecurity experts have emphasised the importance of securing digital infrastructure against advanced threats. The telecommunications sector, despite its established cybersecurity measures, continues to face persistent and evolving risks.

Recent reports indicate that Salt Typhoon has continued targeting US telecom networks, with activity observed as recently as February.

The FCC has taken several steps in recent months to enhance industry security, and the formation of this council represents a further effort to strengthen resilience.

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US bans Chinese AI LLM DeepSeek from government devices

Several US Commerce Department bureaus have recently prohibited using the Chinese AI model DeepSeek on government-issued devices, according to internal communications and sources familiar with the matter.

A mass email circulated among staff emphasised the importance of safeguarding departmental information systems, instructing employees to refrain from downloading, viewing, or accessing any applications, desktop apps, or websites associated with DeepSeek. ​

The case reflects escalating apprehensions among US officials and legislators regarding data privacy and the potential exposure of sensitive government information through DeepSeek’s usage.

In February, Representatives Josh Gottheimer and Darin LaHood, House Permanent Select Committee on Intelligence members, introduced legislation to ban DeepSeek on government devices. They also contacted state governors, urging similar prohibitions at the state level. In a letter dated 3 March, the lawmakers cautioned that using DeepSeek could inadvertently share highly sensitive and proprietary information with the Chinese Communist Party, including contracts, documents, and financial records. ​

Several states, including Virginia, Texas, and New York, have already implemented bans on DeepSeek for government devices. A coalition of 21 state attorneys general has called on Congress to enact comprehensive legislation addressing this issue.

The concerns stem from DeepSeek’s rapid emergence as a low-cost AI model, which has disrupted global equity markets and posed a potential threat to the United States’ leadership in AI. ​

Stay updated on DeepSeek developments!

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