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.

Meta brings AI to Ray-Ban glasses in Europe

Meta has started rolling out AI capabilities for its Ray-Ban Meta AR glasses in France, Italy, and Spain. Users in these countries can now access Meta AI, the company’s voice-activated assistant, which supports French, Italian, and Spanish alongside English.

The rollout follows months of efforts to align the glasses with Europe’s regulatory requirements. Meta expressed excitement about bringing its innovative features to the region and plans further expansion. However, certain features available in other regions, such as multimodal capabilities using the glasses’ cameras, remain unavailable in Europe for now.

Meta has faced challenges complying with Europe’s AI regulations, including the EU’s AI Act and GDPR privacy laws. These rules govern AI training practices, particularly regarding data sourced from Instagram and Facebook users. Earlier this year, EU regulators temporarily restricted Meta from training AI models on European user data.

After making adjustments to its opt-out processes, Meta resumed training on UK data and introduced AI features in several countries. The company has yet to disclose broader compliance measures for the rest of the EU, though it remains committed to addressing regulatory feedback.

Booking.com committed to EU compliance as DMA rules apply

Booking.com must comply with strict European Union regulations as of Thursday due to its designation as a ‘gatekeeper’ under the Digital Markets Act (DMA). The European Commission has placed significant obligations on the travel reservation platform, ensuring it moderates content effectively, supports fair competition, and makes it simpler for consumers to switch between services. The DMA targets tech giants with major market dominance, holding them accountable through measures that could include fines and operational restrictions.

The company affirmed it is fully compliant, citing extensive efforts to adapt to the rules. In a blog post, Booking.com stated that it has implemented solutions that meet regulatory demands while maintaining a high standard of service for travellers and partners. It also expressed a commitment to ongoing dialogue with EU authorities and stakeholders.

Under the DMA, companies identified as gatekeepers are defined by having over 45 million monthly users and significant market capitalisation. Non-compliance could lead to fines of up to 10% of a company’s global revenue, rising to 20% for repeated violations. Additionally, the Commission has the power to limit acquisition activities if a company fails to adhere to the rules.

Google faces expanded regulatory oversight from CFPB

The United States Consumer Financial Protection Bureau (CFPB) is reportedly moving to place Alphabet’s Google under formal federal supervision, according to a Washington Post report. This development comes after months of confidential talks, during which Google has strongly resisted the idea. If implemented, federal oversight would provide regulators with access to Google’s internal records, marking a significant step in regulatory scrutiny of the tech behemoth. The CFPB, which typically oversees financial firms, is now expanding its reach to include more tech companies, particularly those with extensive consumer data handling.

This move is yet another regulatory challenge for Google, which is already facing multiple legal hurdles. Current government actions include pressure for the company to divest parts of its operations and a court mandate to open up its mobile app store to competition. Antitrust lawsuits and investigations continue to question Google’s dominance in digital markets, pushing the company to defend its business practices amid mounting legal pressure.

Google, alongside Alphabet, declined to comment on the CFPB’s intentions. However, industry analysts note that increased federal oversight could lead to greater regulatory enforcement on how tech giants manage consumer data and financial operations. As regulatory measures tighten, Google may have to adopt new strategies to mitigate risks and comply with evolving US oversight regulations.

Congressional panel pushes for AI investment to counter China

A US congressional commission has proposed a bold initiative modeled on the Manhattan Project to accelerate the development of artificial general intelligence (AGI) that could rival or surpass human intelligence. The US-China Economic and Security Review Commission (USCC) emphasised the importance of public-private partnerships to drive technological innovation as competition with China intensifies. However, the panel provided no specific funding plans in its annual report.

Commissioner Jacob Helberg highlighted China’s rapid advancements in AGI, warning of potential shifts in global power dynamics. Addressing infrastructure bottlenecks, he suggested streamlining regulations for data centres as a step to accelerate AI progress. Tech leaders like OpenAI have also advocated for increased government investment in AI to maintain global competitiveness.

Beyond AI, the USCC report included recommendations to tighten trade regulations, particularly by ending the “de minimis” exemption that allows duty-free imports under $800. Commissioner Kimberly Glas underscored the challenge of inspecting the overwhelming volume of such shipments, which she claimed serve as a channel for unregulated Chinese goods, including dangerous materials. Proposals to curb this exemption have sparked bipartisan debate, though legislative progress has been hampered by industry opposition and political gridlock.

South Korea’s FTC intensifies scrutiny on AI semiconductor mergers amidst geopolitical pressures

The Korea Fair Trade Commission (FTC) has announced its intention to closely monitor mergers and acquisitions (M&As) in the rapidly growing AI semiconductor sector to assess potential anti-competitive effects. With the increasing pace of technological advancements and the rising demand for AI technologies, the FTC recognises that M&As could significantly impact market competition, particularly by reducing the number of players in the industry.

Given the sector’s dynamic nature and the challenges posed by factors like the US-China tech rivalry, the FTC’s role is crucial in ensuring that these business combinations do not result in unfair market practices, such as price increases or the exclusion of competitors. Therefore, through careful scrutiny of M&As, the FTC aims to preserve healthy competition, support technological innovation, and protect the overall market ecosystem.

In addition, the Korea Fair Trade Commission (FTC) is reviewing several significant mergers, including combining Synopsys and Ansys and acquiring ZT Systems by AMD. These deals could profoundly impact the AI semiconductor market, especially regarding access to essential design software and hardware technologies.

To enhance its understanding of the potential anti-competitive effects of these M&As, the FTC is gathering input from industry experts and academic leaders. This collaborative approach, including forums like the ‘AI Semiconductor-Related Business Combination Forum,’ helps the FTC stay informed about emerging trends and refine its strategies for safeguarding fair competition in the rapidly evolving AI semiconductor sector.

Turkey sanctions Twitch for user data breach

Turkey‘s Personal Data Protection Board (KVKK) has fined Amazon’s gaming platform Twitch 2 million lira ($58,000) following a significant data breach, the Anadolu Agency reported. The breach, involving a leak of 125 GB of data, affected 35,274 individuals in Türkiye.

KVKK’s investigation revealed that Twitch failed to implement adequate security measures before the breach and conducted insufficient risk and threat assessments. The platform only addressed vulnerabilities after the incident occurred. As a result, KVKK imposed a 1.75 million lira fine for inadequate security protocols and an additional 250,000 lira for failing to report the breach promptly.

This penalty underscores the increasing scrutiny and regulatory actions against companies handling personal data in Türkiye, highlighting the importance of robust cybersecurity measures to protect user information.

Meta defends Instagram, WhatsApp acquisitions in high-stakes antitrust trial

A US judge has ruled that Meta Platforms, the parent company of Facebook, must face trial in an antitrust lawsuit filed by the Federal Trade Commission (FTC). The lawsuit, initiated during the Trump administration, alleges that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were intended to stifle emerging competition and maintain a social media monopoly. Meta has countered the FTC’s claims, arguing that the regulators ignore substantial competition from platforms like TikTok, YouTube, and LinkedIn.

This case is part of a broader crackdown on Big Tech by United States regulators. The FTC and the Department of Justice are pursuing major antitrust lawsuits against several technology giants, including Amazon and Apple. Alphabet’s Google also faces two significant legal challenges, with one case already finding that the company unlawfully restricted competition among search engines. These lawsuits reflect intensified regulatory efforts to address concerns over the market power of leading technology firms.

Meta’s legal battle could set a significant precedent for how tech conglomerates operate and acquire competitors. Critics argue that Meta’s dominance has harmed innovation and user choice, while the company insists it faces robust competition across the digital landscape. As Meta prepares for trial, the outcome could have far-reaching implications for the tech industry and future regulatory actions against monopolistic practices.

Tech entrepreneur sentenced for bitcoin theft

Ilya Lichtenstein, a New York tech entrepreneur, was sentenced to five years in prison for laundering stolen cryptocurrency from Bitfinex, one of the world’s largest exchanges. Lichtenstein admitted to hacking Bitfinex in 2016, stealing around 120,000 bitcoin using advanced tools. At the time of the theft, the bitcoin was valued at $71 million but had soared to $4.5 billion by his arrest in 2022.

Lichtenstein and his wife, Heather Morgan, were arrested in February 2022. Morgan, a self-styled rapper known as “Razzlekhan,” also pleaded guilty to conspiracy charges and is set to be sentenced on November 18. US authorities recovered $3.6 billion of the stolen funds in what Deputy Attorney General Lisa Monaco called the largest financial seizure in the Justice Department’s history.

Alongside his prison term, Lichtenstein will serve three years of supervised release, marking a significant milestone in the fight against cryptocurrency-related crimes.