Dell and Iron Bow pay millions in settlement

Dell Technologies and Iron Bow Technologies have agreed to pay over $2 million each to settle allegations of overcharging the US Army under a computing contract, according to the Justice Department.

Dell will pay $2.3 million, while Iron Bow will pay $2.05 million to resolve claims of violating the False Claims Act. The DOJ accused the companies of submitting non-competitive bids that inflated costs under the Army Desktop and Mobile Computing contract.

The settlement highlights government efforts to enforce accountability in defence contracts, ensuring fair pricing and compliance with procurement laws.

Catalonia faces legal challenge over Barcelona’s Airbnb ban

Catalonia‘s decision to eliminate 10,000 holiday lets in Barcelona over the next five years has sparked a legal challenge from the European Holiday Home Association (EHHA). The industry group filed a complaint with the European Commission, arguing that the ban, introduced in June, violates EU law by breaching the provision of services directive. The EHHA claims the restrictions are disproportionate and politically motivated, particularly given the housing crisis in Barcelona, where locals struggle to find affordable housing.

Catalan authorities have not granted new tourist flat licenses since 2014, but this has not alleviated the city’s housing shortage. The European Commission has expressed concerns that the new measures are excessive and could be harming the local economy. EHHA representatives argue that other factors, such as empty dwellings, are contributing more to the housing crisis than short-term rentals like Airbnb.

Barcelona’s move is part of a broader trend of European cities combating overtourism, following similar actions by places like Venice and Amsterdam. However, the issue is now reaching the EU’s political stage, with the European Commission weighing in on the matter and preparing to tackle short-term rental regulation.

TikTok faces divestment deadline in the US

Senator Richard Blumenthal has reaffirmed that ByteDance must divest TikTok’s US operations by January 19 or risk a ban. The measure, driven by security concerns over potential Chinese surveillance, was signed into law in April. A one-time extension of 90 days is available if significant progress is made, but Blumenthal emphasised that laws cannot be disregarded.

Blumenthal also raised alarms over China’s influence on US technology companies. Tesla’s production in China and the US military’s reliance on SpaceX were flagged as security risks. He pointed to Elon Musk’s economic ties with China as a potential vulnerability, warning that such dependencies could compromise national interests.

Apple faced criticism for complying with Chinese censorship and surveillance demands while generating significant revenue from the country. Concerns were voiced that major tech companies might prioritise profits over US security. Neither Apple nor Tesla has commented on these claims.

TikTok and ByteDance are challenging the divestment law in court. A decision is expected soon, but restrictions will tighten for app stores and hosting services if compliance is not achieved. The Biden administration has clarified that it supports ending Chinese ownership of TikTok rather than an outright ban.

California passes new law regulating AI in healthcare

California Governor Gavin Newsom has signed Assembly Bill 3030 (AB 3030) into law, which will regulate the use of generative AI (GenAI) in healthcare. Effective 1 January 2025, the law mandates that any AI-generated communications related to patient care must include a clear disclaimer informing patients of its AI origin. It also instructs patients to contact human healthcare providers for further clarification.

The bill is part of a larger effort to ensure patient transparency and mitigate risks linked to AI in healthcare, especially as AI tools become increasingly integrated into clinical environments. However, AI-generated communications that have been reviewed by licensed healthcare professionals are exempt from these disclosure requirements. The law focuses on clinical communications and does not apply to non-clinical matters like appointment scheduling or billing.

AB 3030 also introduces accountability for healthcare providers who fail to comply, with physicians facing oversight from the Medical Board of California. The law aims to balance AI’s potential benefits, such as reducing administrative burdens, with the risks of inaccuracies or biases in AI-generated content. California’s move is part of broader efforts to regulate AI in healthcare, aligning with initiatives like the federal AI Bill of Rights.

As the law takes effect, healthcare providers in California will need to adapt to these new rules, ensuring that AI-generated content is flagged appropriately while maintaining the quality of patient care.

EU Council affirms international law’s role in cyberspace with new declaration

The EU Council, along with its member states, has adopted a declaration for the first time on this specific topic establishing a unified understanding of how international law applies to cyberspace. This declaration underscores that cyberspace is not a lawless realm and reaffirms that international law, including the UN Charter, international human rights law, and international humanitarian law, is fully applicable to activities conducted in cyberspace.

The declaration highlights the escalating threat of malicious cyber activities, such as ransomware, which have grown in scale, sophistication, and impact, posing significant risks to European societies and economies. Recognising these challenges, the EU emphasizes that adherence to the UN framework of responsible state behavior in cyberspace is essential for preserving international peace, security, and stability.

In the declaration, the EU and its member states have commented on principle of non-intervention, state sovereignty, due diligence, attribution, and countermeasures. In particular, the document highlights that “States exercise territorial jurisdiction over Information and Communications Technology (ICT)
infrastructure located in their territory, and persons engaged in cyber activities, within their territory”.

The official press release notes that the declaration’s foundation was laid in April 2024, when the European External Action Service (EEAS) presented a non-paper on the topic. After careful deliberation and collaboration between the Horizontal Working Party on Cyber Issues (HWPCI) and the Working Party on Public International Law (COJUR), the text was finalized and approved by the Permanent Representatives Committee (COREPER) on 13 November 2024.

OpenAI faces lawsuit from Indian News Agency

Asian News International (ANI), one of India’s largest news agencies, has filed a lawsuit against OpenAI, accusing it of using copyrighted news content to train its AI models without authorisation. ANI alleges that OpenAI’s ChatGPT generated false information attributed to the agency, including fabricated interviews, which it claims could harm its reputation and spread misinformation.

The case, filed in the Delhi High Court, is India’s first legal action against OpenAI on copyright issues. While the court summoned OpenAI to respond, it declined to grant an immediate injunction, citing the complexity of the matter. A detailed hearing is scheduled for January, and an independent expert may be appointed to examine the case’s copyright implications.

OpenAI has argued that copyright laws don’t protect factual data and noted that websites can opt out of data collection. ANI’s counsel countered that public access does not justify content exploitation, emphasising the risks posed by AI inaccuracies. The case comes amid growing global scrutiny of AI companies over their use of copyrighted material, with similar lawsuits ongoing in the US, Canada, and Germany.

US lawmakers to probe China’s role in telecom breaches

The US Senate Judiciary subcommittee will convene a hearing on Tuesday to investigate recent Chinese cyberattacks targeting American telecommunications companies. The hearing, led by Senator Richard Blumenthal, will delve into the national security threats posed by these breaches and their impact on the US economy.

Authorities allege that China-linked hackers accessed surveillance data from telecom networks, intercepting sensitive communications tied to government and political figures. This breach has heightened concerns over the security of critical infrastructure, especially as bipartisan lawmakers scrutinise the role of major providers like AT&T and Verizon.

The session will also include discussions on Elon Musk’s business ties with China amid his growing involvement in US government affairs. Witnesses, including cybersecurity and industry experts, are expected to shed light on the scale and potential consequences of these incidents. Beijing, however, has denied any involvement in cyber espionage activities.

Bitfinex hacker’s wife jailed for laundering

Heather Morgan, also known as Razzlekhan, has been sentenced to 18 months in prison for her role in laundering Bitcoin stolen during the 2016 Bitfinex hack. Her husband, Ilya Lichtenstein, who orchestrated the theft of 119,754 Bitcoin, received a five-year prison term. While Morgan was not involved in the hacking itself, she played a significant part in concealing the stolen funds, now valued at $10b.

The couple’s sentences were reduced due to their cooperation with US authorities in other crypto-related cases. However, US District Judge Colleen Kollar-Kotelly stressed the deliberate nature of Morgan’s actions, highlighting the sophisticated methods she used, such as fake identities and small transfers to evade detection.

Morgan’s request for a ‘time served’ sentence was denied, despite claims of harsh pretrial detention conditions. Following her prison term, she will face 36 months of supervised release and a $200 fine. The case underscores the growing scrutiny on crypto-related crime and the severe penalties for offenders.

Meta responds to antitrust fine over WhatsApp data

Meta Platforms is challenging a decision by India’s Competition Commission (CCI) over WhatsApp’s data-sharing practices. The regulator imposed a $25.4 million fine and restricted data-sharing between WhatsApp and other Meta-owned applications for five years, citing antitrust violations linked to the 2021 privacy policy.

The investigation began in March 2021 after WhatsApp introduced a controversial privacy policy enabling data transfers within Meta’s ecosystem. The CCI ruled that WhatsApp must not condition access to its services on user agreement to share personal data for advertising purposes.

Meta maintains the privacy policy does not affect the confidentiality of personal messages. A spokesperson emphasised no user accounts were deleted or had functionality reduced due to the update, underscoring its commitment to user privacy.

The company plans to legally challenge the CCI’s decision, reiterating its stance that the policy complies with privacy standards. The dispute highlights the growing scrutiny of global tech companies’ practices in India, one of the largest digital markets.

Denmark faces backlash over AI welfare surveillance

Concerns are mounting over Denmark’s use of AI in welfare fraud detection, with Amnesty International condemning the system for violating privacy and risking discrimination. Algorithms developed by Udbetaling Danmark (UDK) and ATP flag individuals suspected of benefit fraud, potentially breaching EU laws. Amnesty argues these tools classify citizens unfairly, resembling prohibited social scoring practices.

The AI models process extensive personal data, including residency, citizenship, and sensitive information that may act as proxies for ethnicity or migration status. Critics highlight the disproportionate targeting of marginalised groups, such as migrants and low-income individuals. Amnesty accuses the algorithms of fostering systemic discrimination while exacerbating existing inequalities within Denmark’s social structure.

Experts warn that the system undermines trust, with many recipients reporting stress and depression linked to invasive investigations. Specific algorithms like ‘Really Single’ scrutinise family dynamics and living arrangements, often without clear criteria, leading to arbitrary decisions. Amnesty’s findings suggest these practices compromise human dignity and fail to uphold transparency.

Amnesty is urging Danish authorities to halt the system’s use and for the EU to clarify AI regulations. The organisation emphasises the need for oversight and bans on discriminatory data use. Danish authorities dispute Amnesty’s findings but have yet to offer transparency on their algorithmic processes.