Jurisdiction

Poland fails to appoint DSA regulator after EU deadline

A year after the EU’s legal deadline, Poland has yet to designate a national regulator to help the European Commission enforce the Digital Services Act (DSA), which governs online platforms. The country risks being referred to the EU courts for non-compliance, becoming the only member state not to have appointed a regulator. The European Commission initiated an infringement procedure in late 2023, urging Poland to meet the requirements.

Poland was also warned for not establishing penalty rules under the DSA. While Belgium has named its telecom regulator as the country’s DSA coordinator, Poland has not made such appointments, although the Ministry for Digitalization stated that it is ‘working on’ implementing the regulation. The process is still ongoing, with no clear timeline for completion.

The DSA, aimed at curbing illegal content online, required EU member states to designate national regulators by February 2024. These Digital Services Coordinators (DSCs) are meant to oversee the implementation of the rules and support the European Commission in monitoring compliance. Poland’s delay, along with Spain and the Netherlands, has led to formal notices from the Commission, which could take further legal action if the issues are not resolved soon.

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Argentina’s President faces impeachment calls over cryptocurrency scandal

President of Argentina, Javier Milei, is facing impeachment calls from opposition lawmakers after promoting a little-known cryptocurrency that crashed shortly after his endorsement. Late on Friday, Milei posted on X recommending the crypto coin $LIBRA, causing its price to surge to nearly $5 before plummeting below $1 within hours.

Critics accused the president of irresponsibility, with some suggesting the incident could be a “rug pull” scam designed to manipulate investments.

Lawmaker Leandro Santoro, a member of the opposition coalition, called the incident an international embarrassment and announced plans to seek Milei’s impeachment.

Argentina’s fintech chamber acknowledged the possibility of fraudulent activity, adding to concerns about the president’s involvement. Local media reported that Milei’s post remained online for a few hours before being deleted.

Milei later distanced himself from the cryptocurrency, stating he had no connection to it and was unaware of its details before promoting it.

After learning more, he removed the post to avoid further publicity. Despite his explanation, the controversy has intensified political tensions, with opposition figures questioning his judgment and calling for accountability.

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EU’s Ribera criticises Trump’s disruption of transatlantic relations

The EU’s competition chief, Teresa Ribera, has criticised US President Donald Trump for disrupting the ‘trustful relationship’ between Europe and the United States, highlighting the unpredictability and instability of Washington’s actions. In an interview with Reuters, Ribera stated that while Europe must engage in negotiations with the White House on trade issues, it should not be pressured into changing laws that have already been passed. She emphasised that Europe must remain firm on its principles, including human rights, democracy, and the unity of the continent, despite Trump’s transactional political approach.

Ribera also responded to criticism from Trump and his government, who have labelled EU regulations on US tech companies as a form of taxation. She dismissed these claims, stressing that Europe’s legal framework aims to ensure stability and predictability for businesses. In contrast, she expressed concern over the uncertainty created by the White House’s frequent policy shifts, particularly with regard to tariffs on steel, aluminium, and other sectors. The EU has vowed to respond firmly to any tariff increases imposed by Trump.

In addition, Ribera revealed that the European Commission would soon decide whether tech giants Apple and Meta Platforms have complied with the EU’s Digital Markets Act. Both companies face potential fines if found in breach of the regulations, which are designed to curb their market dominance. Ribera also confirmed that investigations into Elon Musk’s social media platform X would continue, disregarding Musk’s ties to the US administration.

As tensions between Washington and Brussels continue to rise, Ribera reiterated that businesses seek a stable and predictable legal environment, something she feels is increasingly lacking in the US under Trump’s leadership. The EU remains committed to enforcing its regulations and protecting its values despite external pressures.

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Indian music industry joins lawsuit against OpenAI

Several of India’s leading Bollywood music labels, including T-Series, Saregama, and Sony, seek to join a lawsuit against OpenAI in New Delhi. They are concerned that the company’s AI models may have used their sound recordings without permission, potentially violating copyright laws. The legal action follows a previous lawsuit filed by Indian news agency ANI, which accused OpenAI’s ChatGPT of using content without authorisation to train its models. The music labels argue that this issue has significant implications for the global music industry.

The music companies, which represent major Indian and international music acts, claim that OpenAI’s AI systems could extract lyrics, compositions, and sound recordings from the internet without consent. T-Series, known for releasing thousands of songs annually, and Saregama, which holds a vast catalogue of iconic Indian music, are leading the charge. The Indian Music Industry (IMI), which also represents global labels like Sony Music and Warner Music, is pushing for the case to be heard in court, as the outcome could impact the future use of copyrighted content in AI training.

OpenAI, backed by Microsoft, argues that it adheres to fair-use principles by using publicly available data to build its AI models. However, the company is facing increasing legal pressure from multiple sectors worldwide, including recent lawsuits in Germany, where GEMA accused OpenAI of unlicensed use of song lyrics. OpenAI has opposed the Indian lawsuit, claiming that Indian courts do not have jurisdiction over the matter, given the company’s US base.

The next court hearing, which could shape the future of AI and copyright law in India, is scheduled for 21 February. This legal battle is gaining attention, particularly as OpenAI’s chief, Sam Altman, recently visited India to discuss the country’s plans for developing low-cost AI technology.

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Trump vows tariffs on Canada and France over digital services taxes

Donald Trump announced plans to impose tariffs on Canada and France in response to their digital services taxes on US technology companies. The former president criticised the taxes as unfair, arguing that only the United States should have the right to tax its own firms.

Canada began implementing the levy last year to ensure companies like Alphabet and Amazon contribute fairly despite often booking profits in low-tax jurisdictions.

Trump directed his economic team to develop a strategy for reciprocal tariffs against any country imposing duties on US imports. A White House fact sheet claimed that Canada and France each collect over $500 million annually from US firms through digital taxes, costing American businesses more than $2 billion per year. The statement argued that retaliatory tariffs would restore fairness to global trade.

The digital tax dispute has been a long-standing issue, with Washington previously challenging Canada’s approach under Joe Biden’s administration.

The United States had sought trade dispute consultations, calling the tax discriminatory. The office of Canadian Prime Minister Justin Trudeau has not yet commented on Trump’s latest tariff proposal.

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Musk will withdraw $97.4 billion bid for OpenAI non-profit

Elon Musk has stated he will withdraw his $97.4 billion bid for OpenAI’s non-profit arm if the company halts plans to become a for-profit entity. Musk’s lawyers clarified in a court filing that if OpenAI’s board agrees to maintain the charity’s mission and remove the ‘for sale’ sign from its assets, he will retract his offer. However, if the conversion to a for-profit model continues, Musk’s consortium insists the charity must be compensated by what an independent buyer would pay for its assets.

OpenAI, originally founded by Musk and Sam Altman in 2015 as a non-profit, is in the midst of restructuring. Altman, now CEO, has moved to create a for-profit unit within the organisation to attract investors like Microsoft.

Musk, who left the company over disagreements with Altman, is suing to block this transition. This legal battle intensified this week when Musk’s group made a bid to purchase the non-profit’s assets, which Altman has rejected, stating that the organisation is not for sale.

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EU scraps tech patent, AI liability, and messaging privacy rules

The European Commission has abandoned proposed regulations on technology patents, AI liability, and privacy rules for messaging apps, citing a lack of foreseeable agreement among EU lawmakers and member states. The draft rules faced strong opposition from industry groups and major technology firms. A proposed regulation on standard essential patents, designed to streamline licensing disputes for telecom and smart device technologies, was scrapped after opposition from patent holders like Nokia and Ericsson. Car manufacturers and tech giants such as Apple and Google had pushed for reforms to reduce royalty costs.

A proposal that would have allowed consumers to sue AI developers for harm caused by their technology was also withdrawn. The AI Liability Directive, first introduced in 2022, aimed to hold providers accountable for failures in AI systems. Legal experts say the move does not indicate a shift in the EU’s approach to AI regulation, as several laws already govern the sector. Meanwhile, plans to extend telecom privacy rules to platforms like WhatsApp and Skype have been dropped. The proposal, first introduced in 2017, had been stalled due to disagreements over tracking cookies and child protection measures.

The decision has drawn mixed reactions from industry groups. Nokia welcomed the withdrawal of patent rules, arguing they would have discouraged European investment in research and development. The Fair Standards Alliance, representing firms such as BMW, Tesla, and Google, expressed disappointment, warning that the decision undermines fair patent licensing. The Commission has stated it will reassess the need for revised proposals but has not provided a timeline for future regulatory efforts.

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TikTok returns to US app stores after ban delay

TikTok has returned to US app stores after President Donald Trump temporarily delayed a ban on the Chinese-owned social media platform. The app, which briefly went offline last month due to a new law requiring its parent company, ByteDance, to sell its US operations or face a ban, is now available for download again.

Despite TikTok resuming service, Google and Apple had initially removed it from their stores while awaiting assurances that they would not be penalised for hosting the app. Trump signed an executive order extending the deadline for TikTok’s sale by 75 days, allowing the platform to operate in the US without immediate repercussions.

The delay has sparked interest from potential buyers, including former Los Angeles Dodgers owner Frank McCourt, as analysts estimate TikTok’s US business could be worth up to $50 billion. The app, which had over 52 million downloads in 2024, remains one of the most popular in the country.

The law requiring ByteDance to sell TikTok’s US assets was signed last April by then-President Joe Biden, driven by national security concerns over potential Chinese government influence. That move marks an unprecedented step in US policy, granting the government broad authority to ban or force the sale of foreign-owned apps. Trump has stated that he is discussing TikTok’s future with multiple parties and expects to make a final decision by February.

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Trump and Musk’s X reach $10 million lawsuit settlement

Elon Musk’s platform X, formerly Twitter, has agreed to pay about $10 million to settle a lawsuit filed by Donald Trump. The case arose after Trump’s account was suspended following the storming of the US Capitol in January 2021. This marks the second social media settlement with Trump after Meta Platforms agreed to pay $25 million last month.

Trump filed lawsuits in 2021 against major platforms, including Facebook, X, and YouTube, alleging they unlawfully silenced conservative voices. Despite Trump’s reported close relationship with Musk, who contributed $250 million to his campaign, his legal team chose to pursue the settlement with X.

Musk, who leads Tesla and chairs the Department of Government Efficiency, a White House initiative, has not commented on the matter. Trump’s attorneys are reportedly also seeking a settlement with Google over his YouTube ban.

Requests for comment from X, Alphabet, and the White House remain unanswered. Settlements highlight the continuing legal battles between Trump and major tech companies over content moderation policies.

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Germany investigates Apple’s App Tracking Transparency

Germany‘s Federal Cartel Office has expressed concerns over Apple’s App Tracking Transparency (ATT) feature, which could potentially violate antitrust rules for large tech companies. The regulator’s preliminary findings come after a detailed three-year investigation into the feature, which allows iPhone users to block advertisers from tracking their activities across multiple apps. The investigation is part of broader scrutiny over the influence of major tech companies on the digital advertising ecosystem.

In a statement released on Thursday, the Federal Cartel Office noted that Apple now has the opportunity to respond to the allegations. The authority’s concerns focus on whether ATT unfairly impacts the business models of other companies that rely on data-driven advertising, such as Meta Platforms, app developers, and startups. These businesses argue that the feature could severely limit their ability to target users with personalised ads, affecting their revenue generation strategies.

Apple has defended ATT as a crucial privacy tool that empowers users to have more control over their data. The company argues that the feature helps to protect user privacy by giving individuals the option to block third-party tracking. However, its critics, particularly in the advertising industry, contend that ATT has created an uneven playing field, disadvantaging businesses that depend on targeted advertising. The outcome of this investigation could have significant implications for Apple’s business practices in Europe.

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