US lawmakers weigh ban on Chinese drones

Chinese drone manufacturers DJI and Autel Robotics face potential bans in the US under a proposed military bill. The legislation requires a national security review within a year to assess risks posed by their drones. If no review occurs, the companies will automatically join the Federal Communications Commission’s ‘Covered List,’ effectively blocking the sale of new models.

DJI, the world’s largest drone producer, claims the process is unfair, citing extensive security audits and enhanced privacy features. Autel Robotics, also impacted by the proposal, has previously been flagged for investigation over national security concerns.

US lawmakers remain concerned about potential surveillance risks and data vulnerabilities linked to Chinese drones. DJI has refuted these claims, emphasising that no forced labour is involved in its production, despite customs citing related concerns to block imports.

The controversy reflects escalating tensions in US-China relations, particularly in technology and national security domains. The outcome of the proposed bill could reshape the landscape of the commercial drone market in the United States.

Court ruling strengthens DOJ case against algorithmic collusion

A federal court ruling on December 4 has bolstered the Justice Department’s (DOJ) position that algorithm-driven price-fixing constitutes a clear antitrust violation. Judge Robert S. Lasnik of the US District Court for the Western District of Washington ruled that claims against Yardi Systems Inc., a property management software firm, could proceed under the “per se” theory of antitrust law. This theory automatically deems certain actions, like price-fixing, illegal without requiring additional proof of harm.

The case alleges that Yardi’s RENTmaximizer tool facilitated collusion among property managers to inflate rents. The decision marks a significant departure from earlier rulings where similar claims involving pricing algorithms were dismissed. Experts see this as a pivotal moment for antitrust litigation, enabling plaintiffs to pursue cases by demonstrating that shared algorithm use facilitated price collusion.

This ruling aligns with the DOJ’s broader push against anticompetitive practices in algorithm-driven pricing, a growing area of concern across industries like home rentals and hospitality. While the decision strengthens the DOJ’s stance, legal experts anticipate continued debates over whether traditional antitrust principles can adapt to emerging technologies, signaling years of legal uncertainty ahead.

Google and Meta under European scrutiny over teen ad partnership

European regulators are investigating a previously undisclosed advertising partnership between Google and Meta that targeted teenagers on YouTube and Instagram, the Financial Times reports. The now-cancelled initiative aimed at promoting Instagram to users aged 13 to 17 allegedly bypassed Google’s policies restricting ad personalisation for minors.

The partnership, initially launched in the US with plans for global expansion, has drawn the attention of the European Commission, which has requested extensive internal records from Google, including emails and presentations, to evaluate potential violations. Google, defending its practices, stated that its safeguards for minors remain industry-leading and emphasised recent internal training to reinforce policy compliance.

This inquiry comes amid heightened concerns about the impact of social media on young users. Earlier this year, Meta introduced enhanced privacy features for teenagers on Instagram, reflecting the growing demand for stricter online protections for minors. Neither Meta nor the European Commission has commented on the investigation so far.

Meta faces legal battle over dismissal of Kenyan moderators

Content moderators in Kenya are suing Meta and its former contractor, Sama, for wrongful dismissal and blacklisting after attempting to unionise. The moderators allege they were excluded from reapplying for similar roles when Meta transitioned to a new contractor, Majorel. This legal dispute sheds light on challenges faced by moderators, particularly those focusing on Ethiopia, who say they received death threats from the Oromo Liberation Army (OLA) for removing violent posts but were ignored by their employer.

According to court filings, the moderators accuse Sama of initially dismissing their complaints, accusing them of fabricating the threats. One moderator, publicly identified by the rebels, was eventually sent to a safe house. The OLA reportedly warned moderators to stop deleting their graphic posts, escalating the atmosphere of fear among employees. Moderators claim Meta failed to address hate speech effectively, leaving them in a constant cycle of reviewing harmful content that did not breach Meta’s policies.

The case also highlights broader concerns over how Meta manages its global network of moderators tasked with handling violent and graphic content. This comes amid separate allegations that Meta allowed violent and hateful posts to proliferate during Ethiopia’s civil conflict, worsening tensions. Out-of-court settlement talks failed last year, and the legal outcomes could shape how content moderation is approached worldwide.

Meta and Sama have refrained from commenting on the latest allegations, while the OLA did not respond to requests. As the trial unfolds, it raises critical questions about accountability and workplace protections for moderators operating in volatile regions.

TikTok seeks emergency block to prevent US ban

TikTok and its parent company, ByteDance, have filed an emergency motion with a federal appeals court to temporarily halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that without the delay, the popular app could shut down in the US, affecting 170 million monthly users and numerous businesses reliant on the platform.

The motion follows a decision by an appeals court panel upholding the divestment requirement. TikTok’s lawyers assert the Supreme Court should have time to review the case and highlight President-elect Donald Trump’s stated intention to prevent the ban. The incoming administration, they argue, could reconsider the law and render the case moot.

The law granting the US government authority to ban foreign-owned apps over data security concerns has faced criticism, with TikTok warning the decision could disrupt services globally. As the January deadline looms, ByteDance faces challenges in demonstrating sufficient progress toward a divestment to secure an extension, even as political and legal battles intensify.

Google challenges US order for payment service supervision

The United States Consumer Financial Protection Bureau (CFPB) announced on Friday it will subject Google Payment Corp., Alphabet‘s payment arm, to federal oversight, citing potential risks to consumers. The move follows complaints involving fraud and unauthorised transactions, although the agency stopped short of alleging direct misconduct.

Google has filed a lawsuit challenging the order, arguing that the service in question is no longer active and poses no risk. The CFPB, however, maintains its authority to regulate even discontinued services if they posed prior risks.

The announcement comes as the Biden administration intensifies regulation of tech-driven financial services, seeking parity with traditional banks. Last month, the CFPB finalised rules extending banking supervision to tech firms offering payment and digital wallet services, a move opposed by Republican lawmakers.

With Biden leaving office and President-elect Trump set to return, the decision may face political challenges. Google’s case highlights the broader conflict between Silicon Valley and federal regulators over financial innovation.

Former WEX head detained in Warsaw

Polish authorities have detained Dmitry V., the former head of Russia’s crypto exchange WEX, in Warsaw following an extradition request from the US Department of Justice. During his tenure at WEX, Dmitry V. was suspected of fraud and money laundering. He is facing potential extradition to the US, where charges could carry a maximum 20-year prison sentence.

Dmitry V. has been linked to WEX, a successor to BTC-e, once Russia’s largest cryptocurrency platform before its collapse in 2018. The exchange was infamous for lax identity checks and ties to high-profile crypto hacks, including the Mt. Gox breach. Around $450 million remains unaccounted for from WEX, which had processed over $9 billion in transactions during its operation.

This is not Dmitry V.’s first arrest; he was previously detained in Poland in 2021 and later apprehended by Interpol in Croatia in 2022. His history also includes a 2019 arrest in Italy, which was short-lived due to errors in the extradition process.

Senators accuse FanDuel and DraftKings of anti-competitive behavior

Sens. Mike Lee (R-Utah) and Peter Welch (D-Vt.) are calling for an investigation into potential antitrust violations by FanDuel and DraftKings. In a joint letter to the Federal Trade Commission (FTC) and the US Department of Justice, the lawmakers accused the two sports betting giants of collaborating to suppress competition in the online sports betting market. The issue centres around their 2016 merger attempt, which was blocked by the FTC due to concerns about market dominance.

Since the merger was scrapped, Lee and Welch argue that FanDuel and DraftKings have used their dominance in fantasy sports to stifle smaller competitors in the online betting space. They claim that the companies, through the Sports Betting Alliance trade group, have intimidated rivals, blocked access to technology, and undermined marketing opportunities, which could harm innovation and prevent new players from entering the market.

FanDuel and DraftKings have not publicly commented on the allegations, and the Justice Department has acknowledged receipt of the letter but has not provided further details. The news has caused a drop in DraftKings’ stock, with Sen. Lee highlighting the potential societal impacts of the companies’ actions.

EU probes Nvidia’s sales practices amid antitrust concerns

The European Union is investigating Nvidia’s business practices, focusing on whether the AI chip leader ties its GPU products to other hardware like networking equipment. Nvidia, which dominates the GPU market with an 84% share, has faced increasing global scrutiny due to its role in the AI and accelerated computing sectors.

Regulators recently distributed questionnaires to Nvidia’s competitors and customers as part of their preliminary fact-finding process. If proven, antitrust violations could result in fines up to 10% of the company’s annual global turnover.

Nvidia has denied any wrongdoing, asserting its products compete on merit and support customer choice. The inquiry coincides with a separate investigation by France‘s antitrust authority, which may soon press charges.

Pavel Durov faces Paris court over Telegram allegations

Pavel Durov, founder of Telegram, appeared in a Paris court on 6 December to address allegations that the messaging app has facilitated criminal activity. Represented by his lawyers, Durov reportedly stated he trusted the French justice system but declined to comment further on the case.

The legal proceedings stem from charges brought against Durov in August, accusing him of running a platform that enables illicit transactions. Following his arrest at Le Bourget airport, he posted a $6 million bail and has been barred from leaving France until March 2025. If convicted, he could face up to 10 years in prison and a fine of 500,000 euros.

Industry experts fear the case against Durov reflects a broader crackdown on privacy-preserving technologies in the Web3 space. Parallels have been drawn with the arrest of Tornado Cash developer Alexey Pertsev, raising concerns over government overreach and the implications for digital privacy.