Jurisdiction

Former ASML worker accused of selling secrets

A Rotterdam court is set to hold a pretrial hearing on Monday concerning a former Russian employee of ASML accused of stealing intellectual property from the Dutch semiconductor equipment maker. The suspect, a 43-year-old Russian national, allegedly profited by selling company manuals, including those of ASML’s Mapper subsidiary, to Russian buyers, according to Dutch media reports.

ASML, which acquired Mapper in 2019, confirmed its awareness of the case and said it had filed a formal complaint, declining further comment during ongoing legal proceedings. The suspect is reportedly in custody, though details of the arrest remain unclear.

Mapper, a Dutch firm focused on developing E-beam lithography technology, was integrated into ASML following its 2019 bankruptcy. While Mapper’s product did not succeed, its engineers joined ASML’s chip-measuring business, helping to bolster the company’s capabilities. This acquisition eased concerns about sensitive technology falling into foreign hands, a priority for both the Dutch government and the US military.

Court ruling threatens TikTok ban in US

A US federal appeals court has upheld a law requiring TikTok’s Chinese parent company, ByteDance, to sell its US operations by 19 January or face a nationwide ban. The ruling marks a significant win for the Justice Department, citing national security concerns over ByteDance’s access to Americans’ data and its potential to influence public discourse. TikTok plans to appeal to the Supreme Court, hoping to block the divestment order.

The decision reflects bipartisan efforts to counter perceived threats from China, with Attorney General Merrick Garland calling it a vital step in preventing the Chinese government from exploiting TikTok. Critics, including the ACLU, argue that banning the app infringes on First Amendment rights, as 170 million Americans rely on TikTok for creative and social expression. The Chinese Embassy denounced the ruling, warning it could damage US-China relations.

Unless overturned or extended by President Biden, the law could also set a precedent for restricting other foreign-owned apps. Meanwhile, TikTok’s rivals, such as Meta and Google, have seen gains in the wake of the decision, as advertisers prepare for potential shifts in the social media landscape.

EU orders TikTok to freeze election-related data in Romania

The European Union has directed TikTok to retain data related to Romania’s elections under the Digital Services Act, citing concerns over foreign interference. The move follows pro-Russia ultranationalist Calin Georgescu’s unexpected success in the presidential race’s first round, raising alarm about coordinated social media promotion.

Declassified documents revealed TikTok’s role in amplifying Georgescu’s profile via coordinated accounts and paid algorithms, despite his claim of no campaign spending. Romania‘s security agencies have flagged these efforts as ‘hybrid Russian attacks,’ accusations Russia denies.

TikTok stated its cooperation with the EU in addressing concerns and pledged to establish facts amid allegations. Romania’s runoff presidential vote is seen as pivotal for the country’s EU alignment.

EU scrutinises Nvidia’s $700 million Run:ai acquisition

European Union antitrust regulators are investigating whether Nvidia’s proposed $700 million acquisition of Run:ai could strengthen its dominant position in graphics processing units (GPUs). Nvidia currently holds 84% of the GPU market, far outpacing competitors Intel and AMD. Regulators are questioning Nvidia customers about potential bundling practices that might offer discounts for purchasing both its GPUs and software.

The European Commission is exploring whether such bundling provides Nvidia with a competitive edge and whether these practices could harm market competition. The Commission has set a preliminary review deadline of 20 December. Customers have also been asked how an open-source approach to Run:ai’s operations might impact their businesses. Nvidia has yet to comment on the inquiry.

GPUs are critical for data centres, gaming, and cryptocurrency mining, making this deal significant for the technology sector. The investigation could influence how Nvidia integrates Run:ai into its portfolio.

Legal challenges mount over Microsoft’s Cloud practices

The UK’s Competition and Markets Authority (CMA) has postponed the release of provisional findings from its cloud computing investigation to January 2025, according to an updated timeline. Despite this delay, the final report remains on schedule for July 2025. The investigation targets potential anti-competitive practices in a market heavily influenced by Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

This inquiry follows concerns raised by the UK media regulator Ofcom, which highlighted issues such as restrictive data transfer fees and volume discounts that might prevent customers from switching providers or using multiple suppliers. Microsoft’s software licensing terms, especially concerning its Windows Server and Microsoft 365 products, are also under scrutiny for potentially disadvantaging competitors.

Adding to Microsoft’s challenges, a legal claim filed at the UK Competition Appeal Tribunal accuses the company of imposing punitive licensing policies that could cost British businesses over £1B in damages. Meanwhile, the US Federal Trade Commission is conducting a parallel antitrust investigation, broadening the global focus on the tech giant’s market practices.

The CMA’s findings and potential legal outcomes could reshape the dynamics of cloud computing, a vital sector for businesses and governments worldwide.

UK approves Vodafone and Three merger with conditions

The UK Competition and Markets Authority (CMA) has approved the merger between Vodafone and Three, two of the country’s largest telecom operators, in a $19 billion deal. The merger, which has faced intense scrutiny, was initially investigated due to concerns over potential price hikes, reduced services, and lower investments in mobile networks. However, the CMA approved the deal with conditions to address these concerns, including commitments for significant investment in a nationwide 5G network.

The companies must also cap mobile tariffs for the next three years and maintain contractual terms for mobile virtual network operators (MVNOs) during that period. The CMA’s decision marks a shift from previous cases where “4-3” mergers in the telecom sector were allowed only with significant structural changes. This approval is seen as a pragmatic approach, with the CMA confident that competition will be strengthened by a well-resourced trio of mobile operators in the UK.

Vodafone’s CEO, Margherita Della Valle, welcomed the approval, emphasising the benefits for consumers and businesses, including wider coverage and faster mobile speeds. The merger is expected to accelerate the UK’s position in European telecommunications, with a combined investment in the sector. The CMA and Ofcom will oversee the implementation of the agreed measures to ensure competition is maintained.

Europol takes down encrypted messaging service ‘designed by criminals for criminals’

European authorities have dismantled a sophisticated encrypted messaging app called Matrix, allegedly designed ‘by criminals for criminals,’ according to Europol. Discovered on the phone of a suspect involved in the 2021 murder of a Dutch journalist, Matrix was accessible by invitation only, hosted on 40 servers across multiple countries, and provided features like anonymous internet access, video calls, and transaction tracking. Subscription costs ranged from €1,300 to €1,600 for six months.

During a three-month investigation, authorities intercepted and analysed over 2.3 million messages exchanged on the platform in 33 languages. These communications revealed links to major crimes, including international drug and arms trafficking, as well as money laundering. The operation, led by law enforcement in the Netherlands, France, Lithuania, Italy, and Spain, resulted in the seizure of €145,000 in cash and half a million euros in cryptocurrency.

This takedown follows similar actions against encrypted platforms such as Ghost, Exclu, and EncroChat, highlighting a trend of criminals adopting smaller, more complex communication services. Europol emphasised that these platforms are increasingly used for illicit activities, while Dutch authorities warned that serious criminals ‘wrongly believe they can still operate in secret.’

Arrests were made in France and Spain, while main servers were seized in France and Germany, signalling an intensified effort to disrupt organised crime networks.

Microsoft faces UK legal action over alleged cloud licence abuses

Microsoft is facing a £1 billion legal claim in the UK, alleging it imposed unfair licensing fees on businesses using rival cloud services like Amazon, Google, and Alibaba. The case, brought by competition lawyer Maria Luisa Stasi, accuses Microsoft of deterring customers from using competing cloud platforms by inflating fees for its Windows Server software.

The licensing changes, introduced in 2020, reportedly incentivised customers to choose Microsoft’s Azure platform, raising concerns about restricted competition. Britain’s competition watchdog is also scrutinising Microsoft’s cloud practices as part of a broader industry investigation.

The United States Federal Trade Commission has similarly launched an antitrust probe into Microsoft’s cloud computing and software licensing, investigating potential market abuse. Microsoft’s actions have sparked global attention over its influence in the cloud sector, which is dominated by Microsoft, Amazon, and Google.

Celsius founder pleads guilty to fraud, facing up to 30 years for scheme in cryptocurrency crackdown

Alex Mashinsky, the founder of Celsius Network, has pleaded guilty to commodities fraud and manipulating the value of his company’s token, CEL. The former CEO of the cryptocurrency lender admitted in court to misleading investors and providing false reassurances about Celsius’ regulatory compliance. He also acknowledged selling his CEL holdings without disclosing this to customers.

The plea deal follows Mashinsky’s indictment on seven counts of fraud, conspiracy, and market manipulation. Federal prosecutors revealed he profited $42 million from selling CEL at inflated prices, while customers were left with substantial losses when Celsius filed for bankruptcy in 2022. Mashinsky faces up to 30 years in prison under the terms of the agreement and will be sentenced in April 2025.

Founded in 2017, Celsius gained popularity by offering high returns on cryptocurrency deposits, but its bankruptcy left many customers unable to access funds. The company has since emerged from bankruptcy and shifted its focus to Bitcoin mining. Mashinsky joins a growing list of crypto executives charged with fraud, including FTX founder Sam Bankman-Fried, who was sentenced to 25 years in prison earlier this year.

Mashinsky’s defence lawyer highlighted the decision to plead guilty as a step toward accountability, saying it allows all parties to move forward. Federal prosecutors continue investigating fraud in the cryptocurrency industry as digital asset prices recover.

Dutch regulator begins handling DSA complaints

The Netherlands Authority for Consumers and Markets (ACM) is receiving complaints related to the Digital Services Act (DSA), but it currently lacks formal authority to act until the law is fully transposed by the national parliament. The DSA, which aims to regulate large online platforms and protect users, became applicable in February 2024, but enforcement will only begin once the Netherlands passes the necessary implementing legislation.

Martijn Snoep, Chairman of the ACM, highlighted that enforcement under the DSA is expected to lead to clashes between regulators and Big Tech leaders, although he plans to approach this more neutrally. The ACM focuses on three main areas: ensuring platforms comply with basic rules, protecting minors online, and tackling irresponsible hosting providers. While the Dutch regulator is investigating non-compliant companies, it cannot yet take enforcement actions against foreign firms or force them to share information.

The ACM has received 227 complaints, mostly regarding companies based outside the Netherlands, and while it can redirect these to other regulators, it cannot yet act on them. Snoep emphasised that, despite challenges, the Netherlands is preparing to enhance its regulatory capacity to ensure fair compliance, though he prefers waiting before introducing new legislation on emerging issues like online child safety or advertising.

Despite the slow start, the ACM is confident that over time, as the industry adapts to a more regulated environment, digital platforms will gradually become more compliant with the DSA’s requirements.