Jurisdiction

Apple criticises first porn app on iPhone in EU

Apple has criticised the availability of a pornography app on iPhones in the European Union, blaming the Digital Markets Act (DMA) for undermining consumer trust. The regulation, which took effect in 2022, forced Apple to permit alternative app stores, leading to the distribution of an adult content app called Hot Tub via AltStore.

Apple expressed concern about the safety risks posed by such apps, particularly for younger users. AltStore, which received financial backing from Epic Games, stated that Apple’s notarisation process approved Hot Tub. Apple, however, dismissed this claim, insisting that EU rules compelled it to allow the app but that it would never have accepted it in its own store.

Epic Games’ CEO defended laws like the DMA, arguing that Apple had previously abused its control over competing apps. Despite its support for AltStore’s expansion, Epic Games clarified that its own app store in the EU does not carry the Hot Tub app and has never hosted pornographic content.

Epic Games and Google clash over app store decision

Google and Epic Games presented arguments before a US appeals court as Google attempted to overturn a jury verdict and a judge’s order requiring changes to its app store. Google’s lawyer argued that the trial judge made errors that unfairly benefited Epic, which had accused the company of monopolising access to apps on Android devices. A San Francisco jury previously ruled that Google had stifled competition.

The judge ordered Google to allow users to download rival app stores within its Play Store and to make its app catalogue available to competitors. Google’s appeal has put the ruling on hold, with its lawyer contending that the company faces strong competition from Apple’s App Store and was unfairly restricted from making that argument. Epic’s lawyer rejected Google’s claims, insisting that its dominance had harmed competition for years.

A judge on the appeals panel challenged Google’s position, highlighting key differences between Apple’s and Android’s business models. Google also argued that Epic’s case should not have gone before a jury, as it did not seek damages. Epic countered that the Play Store changes were necessary and disputed Google’s concerns about privacy and security.

The US Justice Department, Federal Trade Commission, and Microsoft have backed Epic in the case. A decision from the appeals court is expected later in the year, with the possibility of further escalation to the US Supreme Court.

Trump signs order for US sovereign wealth fund with potential TikTok purchase

President Donald Trump has signed an executive order directing the creation of a US sovereign wealth fund within a year. The order tasks the Treasury and Commerce Departments with presenting a detailed plan within 90 days, outlining funding sources, investment strategies, and governance. The US, which operates at a deficit, would need congressional approval to establish such a fund.

Trump has long supported the idea of a government investment vehicle, suggesting it could finance major infrastructure projects and other national initiatives. Treasury Secretary Scott Bessent indicated that the fund would be structured to monetise US assets for public benefit. One proposal involves repurposing the US International Development Finance Corp (DFC) to function similarly to sovereign wealth funds found in other nations.

Congressional approval is likely necessary, as such a fund typically relies on surplus revenue. Experts have questioned its viability, given the country’s financial position. Investors expressed surprise, noting that sovereign wealth funds usually stem from accumulated savings rather than deficits. Despite this, Trump remains confident in the initiative.

A surprising element of Trump’s announcement was the suggestion that the sovereign wealth fund could purchase TikTok. The app, which faces regulatory pressure over national security concerns, has been in limbo as its Chinese owner, ByteDance, explores potential sales. Trump stated that a decision on TikTok’s future could be reached in February.

US Treasury sued for sharing private financial data with Musk’s DOGE

The US Treasury is facing a lawsuit over claims it unlawfully granted Elon Musk’s Department of Government Efficiency (DOGE) access to millions of Americans’ financial and personal data. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) filed the lawsuit in Washington, DC, accusing the Treasury and Secretary Scott Bessent of illegally sharing sensitive information.

The lawsuit follows concerns raised by US Senator Ron Wyden, who alleged that DOGE had full access to the Treasury’s payments system, which includes names, Social Security numbers, bank account details, and other private data. Prominent Democrats, including Senate leader Chuck Schumer and Senator Elizabeth Warren, have condemned the move, arguing that DOGE lacks any legal authority over federal spending or data access.

Schumer has pledged to introduce legislation to prevent further interference, stating that DOGE is not a legitimate government agency. Warren warned that the system is now “at the mercy of Elon Musk,” raising fears over potential misuse of financial records. The Treasury and DOGE have yet to respond to the allegations.

German authorities on alert for election disinformation

With Germany’s parliamentary elections just weeks away, lawmakers are warning that authoritarian states, including Russia, are intensifying disinformation efforts to destabilise the country. Authorities are particularly concerned about a Russian campaign, known as Doppelgänger, which has been active since 2022 and aims to undermine Western support for Ukraine. The campaign has been linked to fake social media accounts and misleading content in Germany, France, and the US.

CSU MP Thomas Erndl confirmed that Russia is attempting to influence European elections, including in Germany. He argued that disinformation campaigns are contributing to the rise of right-wing populist parties, such as the AfD, by sowing distrust in state institutions and painting foreigners and refugees as a problem. Erndl emphasised the need for improved defences, including modern technologies like AI to detect disinformation, and greater public awareness and education.

The German Foreign Ministry recently reported the identification of over 50,000 fake X accounts associated with the Doppelgänger campaign. These accounts mimic credible news outlets like Der Spiegel and Welt to spread fabricated articles, amplifying propaganda. Lawmakers stress the need for stronger cooperation within Europe and better tools for intelligence agencies to combat these threats, even suggesting that a shift in focus from privacy to security may be necessary to tackle the issue effectively.

Greens MP Konstantin von Notz highlighted the security risks posed by disinformation campaigns, warning that authoritarian regimes like Russia and China are targeting democratic societies, including Germany. He called for stricter regulation of online platforms, stronger counterintelligence efforts, and increased media literacy to bolster social resilience. As the election date approaches, lawmakers urge both government agencies and the public to remain vigilant against the growing threat of foreign interference.

EU plans stricter rules for online platforms selling goods

The European Union is preparing to introduce new regulations that would hold e-commerce platforms such as Temu, Shein, and Amazon Marketplace accountable for illegal or unsafe products sold online. Under the proposed customs reforms, online retailers will be required to provide data before goods arrive in the EU, allowing officials to inspect and monitor shipments more effectively.

Currently, consumers purchasing goods online are considered the official importers for customs purposes. The proposed changes would shift this responsibility to online platforms, making them liable for ensuring compliance with EU safety standards, as well as collecting duty and VAT. The reforms also include the creation of a central EU customs authority (EUCA) to oversee inspections and identify risks before shipments enter the bloc.

The draft proposal aims to improve consumer safety and close regulatory gaps in online commerce. E-commerce giants have not yet responded to the proposed changes, which could have significant financial and operational implications for their businesses.

Australia’s social media laws face criticism over YouTube exemption

Australia’s government recently passed laws banning social media access for children under 16, targeting platforms like TikTok, Snapchat, Instagram, Facebook, and X. However, YouTube was granted an exemption, with the government arguing that it serves as a valuable educational tool and is not a ‘core social media application.’ That decision followed input from company executives and educational content creators, who argued that YouTube is essential for learning and information-sharing. While the government claims broad community support for the exemption, some experts believe this undermines the goal of protecting children from harmful online content.

Mental health and extremism experts have raised concerns that YouTube exposes young users to dangerous material, including violent, extremist, and addictive content. Despite being exempted from the ban, YouTube has been criticised for its algorithm, which researchers say can promote far-right ideologies, misogyny, and conspiracy theories to minors. Studies conducted by academics have shown that the platform delivers problematic content within minutes of search queries, including harmful videos on topics like sex, COVID-19, and European history.

To test these claims, Reuters created child accounts and found that searches led to content promoting extremism and hate speech. Although YouTube removed some flagged videos, others remain on the platform. YouTube stated that it is actively working to improve its content moderation systems and that it has removed content violating its policies. However, critics argue that the platform’s algorithm still allows harmful content to thrive, especially among younger users.

US takes legal action against HPE’s Juniper acquisition

Hewlett Packard Enterprise’s planned $14 billion acquisition of Juniper Networks faces a legal challenge from the US Department of Justice. Officials argue the deal would harm competition by leaving just two major players—HPE and Cisco—controlling over 70% of the US networking equipment market.

HPE had announced the all-cash acquisition over a year ago, aiming to strengthen its AI capabilities. Both companies defended the deal, saying their networking solutions complement each other and would enhance competition against global rivals. They criticised the DOJ’s market definition, calling it outdated.

Regulators noted that Juniper’s innovations forced HPE to lower prices and invest in new technology under its ‘Beat Mist’ campaign. Eliminating this competition, they claim, would reduce incentives for innovation and cost savings in the industry.

Legal proceedings could take up to eight months, with an October deadline for completion. Authorities in the UK and European Union have already approved the deal.

Trump and Nvidia CEO met to discuss DeepSeek and AI chip export

In a meeting at the White House on Friday, US President Donald Trump and Nvidia CEO Jensen Huang discussed the emerging challenges posed by China’s AI advancements, particularly the rapid rise of DeepSeek, a Chinese AI company that has disrupted the global tech industry. The conversation focused on strengthening US leadership in AI technology and tightening restrictions on exporting advanced AI chips to China. While President Trump did not disclose specific details, he described the meeting as ‘good’ and praised Huang as a ‘gentleman.’

DeepSeek has recently sent shockwaves through the tech world by introducing an AI model that matches the performance of leading US technologies but at a fraction of the cost. Its launch has raised concerns about China’s ability to close the gap in AI development with the US. Within days of its debut, DeepSeek became the most downloaded app in Apple’s App Store, and its emergence wiped approximately $1 trillion off the market value of US tech stocks, including a 17% plunge in Nvidia shares. The development has reignited fears that China could challenge the United States’ dominance in AI.

As part of the US response, Trump’s administration is considering further restrictions on Nvidia’s H20 chips, designed for the Chinese market. These chips, capable of powering AI software, were specifically developed to comply with previous export limits imposed by the Biden administration. However, the Trump administration aims to tighten the rules further to ensure advanced computing power stays within US borders and allied nations. Discussions among Trump officials about restricting the shipments of these chips are in the early stages, but they reflect a growing bipartisan concern about maintaining technological supremacy over China.

The president’s meeting with Nvidia’s CEO highlighted a potential opportunity for US tech companies. According to a source familiar with the discussions, Trump views DeepSeek’s ability to produce low-cost AI models as a wake-up call, suggesting that American firms could adopt more cost-efficient strategies to compete without massive spending. The administration sees this as a chance to recalibrate the US AI innovation and leadership approach.

Lawmakers on both sides of the aisle have echoed calls for tighter controls. Republican John Moolenaar and Democrat Raja Krishnamoorthi, co-leads of the House Select Committee on China, urged the Commerce and State Departments to review US export controls in light of China’s advancements. Their concerns are amplified by reports suggesting that DeepSeek may have used restricted US chips in its operations, prompting an investigation by the Commerce Department.

The US government has long relied on export controls to maintain its technological edge, but DeepSeek’s rise has exposed vulnerabilities in this strategy. As the US grapples with its response, the battle for AI dominance will be a defining feature of US-China relations in the years ahead. The outcome will impact the global technology landscape and influence geopolitical dynamics in an increasingly interconnected world.

India removes import duties to boost mobile phone production

India has scrapped import duties on key mobile phone components to support local manufacturing, Finance Minister Nirmala Sitharaman announced in the annual budget. The move benefits major firms such as Apple and Xiaomi and is expected to strengthen India‘s position as a global smartphone manufacturing hub. The country has more than doubled its electronics production in six years, reaching $115 billion in 2024, making it the world’s second-largest mobile phone producer.

Key components such as printed circuit board assemblies, camera module parts, and USB cables, which previously faced a 2.5% tax, are now exempt from import duties. The cuts aim to enhance India’s competitiveness against China and Vietnam in the smartphone export market. The Indian IT ministry had previously warned that maintaining high tariffs could cause India to fall behind in the race to attract global companies.

Sitharaman’s budget follows a broader review of India’s customs duty structure to simplify trade and remove tariff inconsistencies. With global trade uncertainty driven by United States President Donald Trump’s tariff policies, India is positioning itself to capitalise on shifts in global supply chains. Experts believe that a more efficient tariff system will encourage further investment in local production and exports.