Apple faces regulatory action over payment system in Brazil

Brazil’s antitrust regulator, Cade, has mandated Apple to lift restrictions on in-app payments. The decision follows a complaint by e-commerce giant MercadoLibre, accusing Apple of unfair practices.

The complaint, filed in 2022 in Brazil and Mexico, criticised Apple for forcing app developers to use its payment system. It also alleged that the company blocks apps from offering third-party digital goods or redirecting users to external websites.

Cade’s ruling requires Apple to permit developers to integrate external payment systems and allow hyperlinks to external purchasing platforms within apps. Developers must also have the option to include alternative in-app payment methods.

Apple faces a 250,000 real (£43,000) daily fine if it fails to comply within 20 days. Both Apple and MercadoLibre have yet to provide comments on the ruling.

US antitrust trial to challenge Meta in April

Meta, the company behind Facebook, is set to face trial in April over allegations from the US Federal Trade Commission (FTC) that it stifled competition by acquiring Instagram and WhatsApp. The FTC’s lawsuit, filed in 2020, argues that Meta acted illegally to maintain dominance in personal social networks by purchasing potential competitors rather than innovating within the mobile ecosystem.

The case is scheduled to begin on 14 April, as ruled by Judge James Boasberg. Earlier this month, the judge rejected Meta’s request to dismiss the case, which argued that the FTC’s claims relied on a narrow definition of the social media market. Meta highlighted competition from TikTok, YouTube, LinkedIn, and X as evidence that the FTC’s market analysis was outdated.

Judge Boasberg acknowledged the challenges facing the FTC, noting that shifts in technology and market dynamics complicate its claims. He described the agency’s approach as pushing antitrust law to its limits, raising doubts about whether its case could withstand trial.

The trial will examine whether Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were part of a deliberate strategy to eliminate competition. The outcome could have significant implications for the future of antitrust enforcement in the tech industry.

Elon Musk avoids sanctions in SEC probe

A federal judge has denied the US Securities and Exchange Commission’s bid to sanction Elon Musk over missed testimony in its investigation of his $44B Twitter purchase. The judge concluded that sanctions were unnecessary after Musk testified in October and paid $2,923 to cover the SEC’s travel expenses.

The US SEC is probing whether Musk delayed disclosing his stock purchases in early 2022, potentially enabling him to buy Twitter shares at a lower price before revealing his significant stake. Critics argue this delay might have given Musk an unfair financial advantage leading up to his eventual takeover.

Musk, currently the world’s richest person, attributed the delay to a misunderstanding of SEC rules. The billionaire, whose ventures include Tesla and SpaceX, has had prior conflicts with the SEC, including a 2018 settlement over his tweets about taking Tesla private.

Samsung to pay $118M for patent violations

A Texas federal jury has ordered Samsung Electronics to pay $118M to Netlist, a US-based computer memory company, for patent infringement. The case centers on Netlist’s patented technology that boosts power efficiency and accelerates data processing in high-performance memory products used in cloud computing and data-intensive systems.

This ruling marks another major win for Netlist, which previously secured a $303M verdict against Samsung last year and $445M against Micron in May. The jury also determined Samsung’s actions were willful, leaving open the possibility of higher penalties.

Samsung denies the claims, asserting that the patents are invalid and that its technology operates differently from Netlist’s. Meanwhile, the legal battle continues with Samsung filing a countersuit in US, Delaware, accusing Netlist of failing to license the patents on fair terms.

Apple and Google face UK inquiry for stifling innovation

Apple and Google face growing scrutiny in the UK over allegations of stifling competition in mobile web browsers. The UK Competition and Markets Authority (CMA) claims that both companies use their dominant positions to restrict consumer choice, citing Apple’s limits on progressive web apps as a barrier to innovation on iOS devices. Progressive web apps could bypass app stores and their fees, offering faster and more secure browsing.

The CMA’s report also points to a revenue-sharing deal between Apple and Google that discourages competition in mobile ecosystems. Both companies have responded, with Apple defending its privacy and security measures and Google emphasising the openness of its Android platform.

This investigation is part of a broader crackdown on Big Tech, with regulators in the US and UK aiming to curb monopolistic practices. The CMA plans to finalise its report in March and use upcoming digital competition laws to address these concerns.

Victim warns of deepfake Bitcoin scams

A Brighton tradesman lost £75,000 to a fake bitcoin scheme that used a deepfake video of Martin Lewis and Elon Musk. The kitchen fitter, Des Healey, shared his experience on BBC Radio 5 Live, revealing how AI manipulated Martin’s voice and image to create a convincing endorsement. Des admitted he was lured by the promise of quick returns but later realised the devastating scam had emptied his life savings and forced him into debt.

He explained that the fraudsters, posing as financial experts, gained his trust through personalised calls and apparent success in his fake investment account. Encouraged to invest more, he took out £70,000 in loans across four lenders. Only when his son raised concerns about suspicious details, such as background music on calls, did Des begin to suspect foul play and approach the police.

Martin Lewis, Britain’s most impersonated celebrity in scams, described meeting Des as emotionally challenging. He commended Des for bravely sharing his ordeal to warn others. Martin emphasised that scams prey on urgency and secrecy, urging people to pause and verify before sharing personal or financial details.

Although two banks cancelled loans taken by Des, he still owes £26,000 including interest. Des expressed gratitude for the chance to warn others and praised Martin Lewis for his continued efforts to fight fraud. Meanwhile, Revolut reaffirmed its commitment to combating cybercrime, acknowledging the challenges posed by sophisticated scammers.

Meta faces multibillion-dollar lawsuit over data scandal

The US Supreme Court has cleared the way for a multibillion-dollar class-action lawsuit against Meta, the parent company of Facebook, over its role in the Cambridge Analytica privacy scandal. Investors claim Meta failed to fully disclose the risks of user data misuse, which caused Facebook’s stock value to drop sharply in 2018 when the scandal became public.

Cambridge Analytica, a firm tied to Donald Trump’s 2016 campaign, accessed data from 87M Facebook users to influence voter targeting. While Meta has already paid over $5B in fines and settlements for privacy violations, this lawsuit focuses on alleged failures in investor disclosures.

The US Supreme Court dismissed Meta’s appeal to halt the lawsuit, leaving a prior appellate ruling intact. As legal challenges mount for tech giants, the court is also considering another class action against Nvidia over claims of misleading investors about cryptocurrency-related revenues.

Apple faces setback in India’s antitrust probe

India’s Competition Commission has rejected Apple’s request to pause an antitrust investigation, clearing the way for the case to progress. The investigation alleges Apple breached competition laws by exploiting its dominant app store position. Apple disputes these claims, arguing its market share in India is minor compared to Android devices.

The controversy began in 2021 when the non-profit Together We Fight Society (TWFS) accused Apple of anti-competitive practices. In August, the commission ordered investigation reports to be recalled, following Apple’s claims of sensitive information being leaked to rivals. Revised reports were issued after redaction disputes, but Apple requested a suspension, citing non-compliance by TWFS.

Regulator in India dismissed Apple’s concerns, calling its request to halt proceedings ‘untenable.’ The commission has now instructed Apple to submit audited financial records for three fiscal years to assess potential penalties. Apple has yet to respond publicly to these developments.

Senior officials at the Competition Commission are reviewing the evidence and will issue a final ruling. The case highlights broader scrutiny of major tech companies’ market behaviour, particularly regarding app store operations and developer relations.

Massachusetts court rules against student in AI cheating case

A Massachusetts judge upheld disciplinary measures against a high school senior accused of cheating with an AI tool. The Hingham High School student’s parents sought to erase his record and raise his history grade, but the court sided with the school. Officials determined the student violated academic integrity by copying AI-generated text, including fabricated citations.

The student faced penalties including detention and temporary exclusion from the National Honor Society. He later gained readmission. His parents argued that unclear rules on AI usage led to confusion, claiming the school violated his constitutional rights. However, the court found the plagiarism policy sufficient.

Judge Paul Levenson acknowledged AI’s challenges in education but said the evidence showed misuse. The student and his partner had copied AI-generated content indiscriminately, bypassing proper review. The judge declined to order immediate changes to the student’s record or grade.

The case remains unresolved as the parents plan to pursue further legal action. School representatives praised the decision, describing it as accurate and lawful. The ruling highlights the growing complexities of generative AI in academic settings.

Elon Musk criticises Australia’s plan to ban social media for kids

Elon Musk has spoken out against Australia’s proposed law to ban social media use for children under 16, calling it a “backdoor way to control access to the Internet by all Australians.” The legislation, introduced by Australia’s centre-left government, includes fines of up to A$49.5 million ($32 million) for systemic breaches by platforms and aims to enforce an age-verification system.

Australia’s plan is among the world’s strictest, banning underage access without exceptions for parental consent or existing accounts. By contrast, countries like France and the US allow limited access for minors with parental approval or data protections for children. Critics argue Australia’s proposal could set a precedent for tougher global controls.

Musk, who has previously clashed with Prime Minister Anthony Albanese’s government, is a vocal advocate for free speech. His platform, X, has faced tensions with Australia, including a legal challenge to content regulation orders earlier this year. Albanese has called Musk an “arrogant billionaire,” underscoring their rocky relationship.