Jurisdiction

OpenAI fast-tracks court clash with Elon Musk

Elon Musk and OpenAI have agreed to expedite their legal dispute concerning OpenAI’s transition to a for-profit entity, proposing a trial in December 2025. The development follows a series of legal manoeuvres, including a recent court decision denying Musk’s request to halt the restructuring process.

Musk, who co-founded OpenAI in 2015 but departed in 2018, initiated legal action last year, alleging that the company’s shift to a for-profit model deviates from its original mission to develop AI for the benefit of humanity.

In response, OpenAI and its CEO, Sam Altman, have refuted these claims, suggesting that Musk’s actions aim to impede a competitor, especially considering his establishment of the rival AI firm, xAI, in 2023.

The outcome of this lawsuit holds significant implications for OpenAI’s financial strategy. The company’s recent $6.6 billion funding round and a prospective $40 billion investment, currently under negotiation with SoftBank Group, are contingent upon its transition to a for-profit structure. Restructuring is essential to attract the capital needed to remain competitive in the evolving AI industry. ​

In February 2025, Musk led an unsolicited $97.4 billion takeover bid for OpenAI, which Altman promptly declined, reinforcing his stance that OpenAI is not for sale. Musk’s bid further intensified the complex relationship between Musk and OpenAI, highlighting the broader debate over the commercialisation of AI and the ethical considerations associated with balancing profit motives against societal benefits.

As the presumed December trial approaches, the tech industry and the public will closely monitor the proceedings, given their potential to influence the future trajectory of AI development and corporate governance within the sector.

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Legal battle erupts between Brave and News Corp over indexing articles

Brave Software has filed a lawsuit against News Corp in a bid to preempt legal action over the indexing of copyrighted articles from publications such as The Wall Street Journal and the New York Post.

The legal dispute stems from a cease-and-desist letter issued by News Corp, which accused Brave of ‘scraping’ its websites and misappropriating content. Brave argues that indexing is standard practice for search engines and falls under ‘fair use.’

The lawsuit also raises concerns about the impact of such legal challenges on generative AI. Brave claims that search indexing is essential for AI models like ChatGPT and Google’s Gemini, which rely on search engine responses.

The company, which holds less than 1% of the search market compared to Google’s 90%, accuses News Corp of attempting to stifle competition and raise barriers for smaller search providers.

News Corp has rejected Brave’s arguments, with CEO Robert Thomson calling the company’s practices ‘parasitical’ and accusing it of unauthorised content scraping.

The dispute is part of a broader conflict between publishers and tech firms over the use of copyrighted material in AI training. News Corp previously sued AI startup Perplexity AI for allegedly copying its content without permission.

Brave is seeking a court declaration that its indexing practices do not constitute copyright infringement.

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China announces mandatory AI labelling requirements

Chinese authorities have announced new regulations requiring AI-generated content to be clearly labelled, with the rules set to take effect on 1 September 2025. Officials said the move aims to ensure transparency and support the ‘healthy development’ of AI.

The decision follows global discussions on the risks associated with AI-generated media, including misinformation and deepfakes.

By mandating labelling, China seeks to enhance accountability and distinguish AI-created content from human-generated material.

The new rules reflect the government’s ongoing efforts to regulate emerging technologies while maintaining control over digital information.

With AI playing an increasing role in content creation, policymakers worldwide are considering similar measures.

China’s regulations are expected to influence international approaches to AI governance as other nations evaluate their own strategies for handling AI-generated content.

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Apple and Google face scrutiny over browser competition

Britain’s Competition and Markets Authority (CMA) has concluded that the mobile browser market, led by Apple and Google, is not functioning effectively for consumers and businesses. The findings support the regulator’s decision to launch an investigation into the sector earlier this year.

Concerns are largely focused on Apple’s policies regarding internet access through its Safari browser, which dominates its devices with an 88% market share. Google’s Chrome browser holds a 77% share on Android devices.

The UK CMA’s independent inquiry group suggested that if Apple and Google are found to have ‘strategic market status’ (SMS), regulatory interventions may be necessary to encourage competition. These could include measures allowing rival browsers to introduce new features.

Apple has defended its approach, arguing that proposed remedies could undermine security and user experience, while Google highlighted Android’s openness in fostering competition and innovation.

The investigation forms part of a broader effort to assess competition in mobile ecosystems, with final decisions expected later this year.

The inquiry group’s chair, Margot Daly, stated that limited competition between mobile browsers is stifling innovation, reinforcing the need for regulatory action.

The CMA’s ongoing probe into the dominance of Apple and Google aims to ensure a fairer and more competitive digital marketplace.

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EU draft AI code faces industry pushback

The tech industry remains concerned about a newly released draft of the Code of Practice on General-Purpose Artificial Intelligence (GPAI), which aims to help AI providers comply with the EU‘s AI Act.

The proposed rules, which cover transparency, copyright, risk assessment, and mitigation, have sparked significant debate, especially among copyright holders and publishers.

Industry representatives argue that the draft still presents serious issues, particularly regarding copyright obligations and external risk assessments, which they believe could hinder innovation.

Tech lobby groups, such as the CCIA and DOT Europe, have expressed dissatisfaction with the latest draft, highlighting that it continues to impose burdensome requirements beyond the scope of the original AI Act.

Notably, the mandatory third-party risk assessments both before and after deployment remain a point of contention. Despite some improvements in the new version, these provisions are seen as unnecessary and potentially damaging to the industry.

Copyright concerns remain central, with organisations like News Media Europe warning that the draft still fails to respect copyright law. They argue that AI companies should not be merely expected to make ‘best efforts’ not to use content without proper authorisation.

Additionally, the draft is criticised for failing to fully address fundamental rights risks, which, according to experts, should be a primary concern for AI model providers.

The draft is open for feedback until 30 March, with the final version expected to be released in May. However, the European Commission’s ability to formalise the Code under the AI Act, which comes into full effect in 2027, remains uncertain.

Meanwhile, the issue of copyright and AI is also being closely examined by the European Parliament.

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Indian police arrest Garantex administrator wanted by US

Indian authorities have arrested Aleksej Besciokov, an administrator of the Russian cryptocurrency exchange Garantex, at the request of the US.

Besciokov, a Russian resident and Lithuanian national, was taken into custody in Kerala on charges of money laundering and violating sanctions. The Central Bureau of Investigation (CBI) said he was planning to flee India, and Washington is expected to seek his extradition.

The arrest follows a joint operation by the US, Germany, and Finland to dismantle Garantex’s online infrastructure.

The exchange, under US sanctions since 2022, has processed at least $96 billion in cryptocurrency transactions since 2019. The US Justice Department recently charged two administrators, including Besciokov, with operating an unlicensed money-transmitting business.

Experts warn that sanctioned exchanges often attempt to bypass restrictions by setting up new entities. Blockchain research firm TRM Labs called the Garantex takedown a significant step in combating illicit finance but emphasised the need for continued vigilance against evasion tactics.

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Singapore fraud case involves $390 million in transactions

Singapore prosecutors revealed on Thursday that a fraud case involving local firms accused of illegally supplying US servers to Malaysia involves transactions worth $390 million.

Three men—Singaporeans Aaron Woon and Alan Wei, along with Chinese national Li Ming—have been charged with deceiving tech giants Dell and Super Micro by misrepresenting the servers’ final destination.

The case has been linked to Chinese AI firm DeepSeek, which is under US scrutiny over the potential use of banned Nvidia chips.

While Singapore authorities confirmed the servers may have contained Nvidia components, they did not specify whether these were the restricted high-end semiconductors subject to US export controls.

Singapore’s Law and Home Affairs Minister K Shanmugam declined to comment on the alleged connection.

Prosecutors claim Wei paid himself tens of millions in dividends, while Woon received a multimillion-dollar bonus. Singaporean authorities are investigating a wider network of 22 individuals and companies suspected of similar fraudulent practices, with six additional arrests made.

The accused are set to reappear in court on May 2, while Malaysian authorities are also probing potential legal violations.

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FTC confirms no delay in Amazon trial

The US Federal Trade Commission (FTC) announced on Wednesday that it does not need to delay its September trial against Amazon, contradicting an earlier claim by one of its attorneys about resource shortages.

Jonathan Cohen, an FTC lawyer, retracted his statement that cost-cutting measures had strained the agency’s ability to proceed, assuring the court that the FTC is fully prepared to litigate the case.

FTC Chairman Andrew Ferguson reaffirmed the agency’s commitment, dismissing concerns over budget constraints and stating that the FTC will not back down from taking on Big Tech.

Earlier in the day, Cohen had described a ‘dire resource situation,’ citing employee resignations, a hiring freeze, and restrictions on legal expenses. However, he later clarified that these challenges would not impact the case.

The lawsuit, filed in 2023, accuses Amazon of using ‘dark patterns’ to mislead consumers into enrolling in automatically renewing Prime subscriptions, a program with over 200 million users.

With claims exceeding $1 billion, the trial is expected to be a high-profile battle between regulators and one of the world’s largest tech companies. Amazon has denied any wrongdoing, and three of its senior executives are also named in the case.

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UK NCSC evaluates best practices for open source software and supply chain risk management

The UK government, through the Department for Science, Innovation and Technology (DSIT), has commissioned research to evaluate best practices for managing risks associated with open-source software (OSS). The study assesses existing guidance on OSS security and resilience, examines its effectiveness across sectors, and provides recommendations for strengthening software supply chain security. That research is part of the government’s wider work to improve the UK’s cyber defences and protect and grow the economy.

The report outlines key recommendations for organisations using OSS, including:

  • Establishing an internal OSS policy to manage the adoption of OSS components.
  • Creating a Software Bill of Materials (SBOM) to track OSS components and their dependencies.
  • Continuously monitoring the software supply chain with software composition analysis (SCA) tools to identify vulnerabilities and licensing issues.
  • Actively engaging with the OSS community to attract talent, foster innovation, enhance reputation, and ensure a sustainable ecosystem.
  • Using automation tools to streamline OSS management processes, particularly for smaller organisations, as a cost-effective alternative to manual practices.

The report also highlights the need for further research and policy development in areas such as scale-appropriate best practice guidance, industry-specific OSS management frameworks, standardised metrics for evaluating OSS component maturity, and the impact of community engagement on OSS quality and security.

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Brazil’s tax chief calls for stricter controls on digital payments

Brazil’s tax revenue service may restart discussions on requiring financial technology firms to report transaction values, citing concerns over money laundering through lesser-known payment institutions.

Revenue service head Robinson Barreirinhas told a Senate hearing that the government still aims to extend its transaction-tracking intelligence to fintechs, despite public backlash that led to a suspension of the plan last year.

Authorities argue that fintechs, including those using the Pix instant payment system, should be subject to the same reporting rules as banks.

However, opposition to President Luiz Inácio Lula da Silva’s administration portrayed the measure as a hidden tax on workers, forcing the government to pause the rule in January amid falling approval ratings.

Barreirinhas emphasised that the ease of opening accounts in fintech platforms makes them vulnerable to illicit financial activity.

The tax agency remains concerned about organised crime funding in Brazil‘s economy, particularly through smuggled cigarettes, online betting, and cryptocurrencies.

Officials suggest that stronger oversight of digital transactions is necessary to prevent these activities from flourishing, potentially reigniting debate over the suspended regulations.

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