Jurisdiction

FTC pushes Marriott to improve cybersecurity after data breaches

Marriott International will implement an information security program following a settlement with the US Federal Trade Commission (FTC) over data breaches that impacted more than 344 million customers between 2014 and 2020. The settlement requires Marriott and its subsidiary, Starwood Hotels & Resorts Worldwide, to address the vulnerabilities that led to multiple breaches over several years.

The hotel chain also agreed to provide US customers with a way to request deletion of their personal data linked to their email address or loyalty rewards account. In addition, Marriott will review loyalty rewards accounts upon request and restore stolen points. A separate settlement sees Marriott paying $52 million to resolve similar data security claims across 49 states and the District of Columbia.

Marriott has stated that protecting guests’ personal data remains a top priority and that the company continues to invest heavily in improving its cybersecurity measures. However, Marriott did not admit liability for the breaches in either the FTC settlement or the agreements with state Attorneys General.

In 2020, the company faced a class action lawsuit in London brought by millions of former guests seeking compensation after their personal information was compromised during the breaches, considered one of the largest in history.

Russia blocks Discord over content violations

Russia‘s communications regulator, Roskomnadzor, has blocked the messaging platform Discord for alleged violations of Russian law, according to the TASS news agency. The San Francisco-based company becomes the latest foreign tech platform to face restrictions in Russia. Discord has yet to respond to the decision.

For years, Russia has pressured foreign tech companies to remove content it deems illegal, imposing frequent, though generally small, fines for non-compliance. Last week, Roskomnadzor ordered Discord to delete nearly 1,000 pieces of content it classified as illegal and had previously fined the platform for failing to remove banned material.

Moscow has also blocked other major platforms, including Twitter (now X), Facebook, and Instagram, shortly after the invasion of Ukraine in February 2022.

El Salvador: Blueprint for the bitcoin economy

On 7 September 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender, sparking global discussions about the role of cryptocurrencies in national economies. This groundbreaking decision transformed El Salvador into a beacon for financial innovation as other nations began to closely monitor its bold experiment. Initially seen as a monetary gamble, El Salvador’s decision has evolved into a strategy with far-reaching implications, both domestically and internationally. While the International Monetary Fund (IMF) and other financial institutions have raised concerns about potential risks, El Salvador’s commitment to cryptocurrency adoption has set a precedent by reshaping global economic systems.

From experiment to national strategy

When El Salvador made bitcoin legal tender, it was an ambitious experiment aimed at solving several economic challenges. The country, reliant on remittances and with a significant part of its population unbanked, saw cryptocurrency as a way to promote financial inclusion. Today, with 5,748.8 bitcoins held in national reserves, El Salvador’s leadership continues to buy bitcoin, signalling confidence in the long-term potential of the digital asset. In this way, the initial idea of bitcoin adoption has transformed from a simple test into a cornerstone of the nation’s financial strategy. El Salvador is now laying the foundation for broader economic development by positioning itself as a crypto-friendly environment.

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Economic impact: benefits and challenges

El Salvador’s embrace of bitcoin has left a significant mark on its economy, though it has not been without its challenges. One of the major benefits has been the ability to streamline remittances, allowing Salvadorians abroad (of which there are many in emigration) to send money home using bitcoin, cutting out the traditional intermediaries and lowering fees. This move has made remittances faster, more affordable, and more accessible.

The country has also witnessed a surge in foreign investment, as businesses interested in cryptocurrency see El Salvador as an attractive hub. Crypto enthusiasts and digital nomads have flocked to the country, boosting tourism and putting El Salvador on the global map as a bitcoin-friendly destination.

Moreover, El Salvador’s innovation goes beyond adopting bitcoin as legal tender; it has also ventured into the creation of bitcoin bonds and infrastructure projects like ‘Bitcoin City.’ President Nayib Bukele’s vision for Bitcoin City includes a tax-free, crypto-friendly zone designed to attract foreign investment. The city, with a projected USD $1.6 billion investment, will feature modern infrastructure and create an environment conducive to the growth of blockchain and cryptocurrency businesses. If successful, Bitcoin City could become a global hub for digital finance, further cementing El Salvador’s position at the forefront of this financial revolution.

However, bitcoin volatility remains a persistent issue. Critics argue that heavy reliance on such a fluctuating asset could jeopardise financial stability. Unpredictable price swings in the crypto market pose a risk, potentially leading to instability in the national economy. While El Salvador continues to bet on bitcoin’s long-term success, these challenges highlight the need to carefully navigate the balancing act between innovation and economic resilience.

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Educating for a bitcoin future

One of the latest initiatives El Salvador has undertaken is its Bitcoin certification programme. Spearheaded by the National Bitcoin Office (ONBTC), the programme aims to educate 80,000 government employees on the intricacies of bitcoin and blockchain technology. This strategic move underscores the nation’s commitment to integrating bitcoin into its broader governance structure.

By equipping civil servants with essential knowledge, El Salvador ensures that bitcoin adoption is not just a top-down policy but becomes deeply embedded in the daily functioning of the state. Beyond focusing on external performance, El Salvador is working to seed crypto into the core of its state organisations, ensuring that government employees fully understand the nature of cryptocurrency and not merely reproduce its use. This educational initiative is also expected to create a ripple effect across other sectors, solidifying El Salvador’s place as a leader in the global crypto space.

Global influence and partnerships

El Salvador’s progressive approach to cryptocurrency is beginning to influence other nations. Argentina, for example, has recently started collaborating with El Salvador to learn from its experience. Argentina’s pro-crypto president, Javier Milei, has shown interest in using cryptocurrencies to stabilise the country’s economy. This collaboration is a testament to the growing recognition of El Salvador’s pioneering role in this space. As more countries begin to explore cryptocurrency adoption, El Salvador’s approach provides a practical case study, proving that integrating digital assets into a national economy can have tangible benefits.

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Regulatory challenges and criticism

Despite the enthusiasm surrounding Bitcoin adoption, El Salvador has faced significant criticism from international organisations. The IMF has been particularly vocal, warning that the adoption of cryptocurrency as legal tender poses risks to financial stability, consumer protection, and market integrity. These warnings highlight the regulatory challenges El Salvador faces, especially when dealing with global institutions that remain sceptical of digital currencies. However, the country has responded by reinforcing its regulatory frameworks and increasing transparency around its bitcoin activities. While the road is not without obstacles, El Salvador’s approach showcases a willingness to navigate these complexities and maintain its position as a leader in the crypto space.

El Salvador’s Chivo wallet project

One of the most significant elements of El Salvador’s bitcoin adoption is the introduction of the Chivo wallet, which plays a pivotal role in promoting financial inclusion. Chivo, the government-backed digital wallet, allows Salvadorians to easily access and use bitcoin, providing a crucial gateway to financial services for those previously excluded from the traditional banking system.

To help citizens become familiar with the cryptocurrency, the government offered USD $30 worth of bitcoin to each individual through the Chivo wallet, the country’s digital currency platform. However, public reception was mixed, with an August 2021 poll indicating that 70% of respondents opposed the initiative, and only 15% expressed confidence in bitcoin. Concerns about volatility also led to protests in San Salvador, as many feared the potential for drastic price fluctuations.

The Chivo wallet, available on mobile devices, empowers even the unbanked population to participate in the digital economy by enabling seamless transactions and easy access to remittances sent from abroad. By leveraging this digital wallet project, El Salvador has not only embraced crypto but has also laid the foundation for a more inclusive financial ecosystem. This approach serves as a model for other developing nations, showing how the integration of a government-supported crypto platform can help bypass traditional banking barriers, delivering financial tools to millions and boosting both individual economic prospects and national economies.

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The broader global implications

El Salvador’s bold experiment is already making waves across the world. The Central African Republic has followed in its footsteps, adopting bitcoin as legal tender. As other nations watch closely, it is becoming clear that El Salvador’s approach could inspire a global movement towards cryptocurrency-driven economies. For countries struggling with inflation, financial exclusion, or dependence on foreign currencies, bitcoin adoption represents an alternative path. The world sees that cryptocurrency is not just a speculative asset—it can be a powerful tool for economic development and innovation.

A leader in the new digital financial order

El Salvador’s decision to adopt bitcoin as legal tender has positioned the country at the forefront of a financial revolution. What started as a daring experiment has blossomed into a comprehensive national strategy with global implications. Despite the challenges, including market volatility and regulatory pushback, El Salvador’s proactive approach sets a powerful and inspiring example for other countries. By embracing cryptocurrency from the deepest level of society, from education to infrastructure, El Salvador is showing the world that digital currencies can drive economic progress. As more nations observe its success, the small Central American nation may just be paving a historical way for global financial transformation.

Brazil lifts ban on Elon Musk’s X platform

Brazil’s Supreme Court has lifted the suspension of Elon Musk’s social media platform, X, allowing it to resume operations in the country after the company finally complied with local court rulings. The resolution marks the end of a prolonged dispute between Musk and Supreme Court Justice Alexandre de Moraes, who had previously blocked the platform for refusing to follow legal orders. In his ruling, Moraes stated that X had met the conditions to return online, paving the way for its swift restoration.

The conflict began when Musk, a vocal advocate of free speech, resisted Brazilian court orders to block accounts flagged for spreading misinformation, calling the directives censorship and labelling Moraes a ‘dictator.’ However, in recent weeks, Musk’s platform reversed course, appointing a local representative, paying outstanding fines, and complying with the court’s requests to block certain accounts. By doing so, X earned back its legal right to operate in Brazil.

Brazilian users could not access X on Tuesday evening despite the platform’s return, even though the country’s telecommunications regulator, Anatel, has been instructed to restore the service within 24 hours. Through its Global Government Affairs account, X expressed pride in returning to the Brazilian market, emphasising its commitment to upholding free speech within legal boundaries. Brazil remains X’s sixth-largest market globally, with about 21.5 million users as of April, according to Statista.

Why does it matter?

The dispute between Musk and the Brazilian government is part of a broader struggle Musk has faced with international authorities seeking to regulate online platforms. Brazil’s communication minister, Juscelino Filho, hailed the decision as a victory, stressing that all companies operating in the country must respect its laws regardless of size or influence. President Luiz Inácio Lula da Silva echoed this sentiment, remarking that the world should not have to endure Musk’s ideology simply because of his wealth.

Many users migrated to rival platforms like Bluesky and Meta’s Threads during the suspension, especially with Brazil’s municipal elections underway.

While X remained offline for the election’s first round, the platform could be reinstated just in time for the run-offs, set to take place in late October, including in São Paulo, Latin America’s largest city.

US DoJ aims to break Google’s search engine monopoly

The US government is considering drastic measures to break up Google’s dominance in the online search industry, which could lead to the company divesting critical parts of its business, such as its Chrome browser and Android operating system. The potential legal move follows a judge’s August ruling that declared Google had illegally established a monopoly in online search. With the tech giant controlling about 90% of internet searches in the US, the Justice Department is pushing for remedies that could transform how Americans access information and shrink Google’s revenue while creating more opportunities for competitors.

One of the government’s proposals involves halting Google’s massive payments to ensure its search engine remains the default on new devices. In 2021 alone, Google paid $26.3 billion to companies like Apple to keep its search engine pre-installed on smartphones and browsers. The Justice Department argues that ending these agreements is necessary to prevent Google from maintaining its dominant position in search distribution today and in the future, particularly as the market expands into AI.

Prosecutors are also eyeing Google’s role in the growing AI sector. They propose opening up Google’s vast indexes, data, and models to its rivals to prevent the company from monopolising AI-driven search technologies. Additional suggestions include limiting Google’s ability to make deals, restricting competitors’ access to web content and allowing websites to opt out of having their data used for AI training. Google, however, has pushed back, arguing that such interventions could distort the rapidly developing AI industry and stifle innovation at a crucial moment.

The stakes are high for Google, which plans to appeal the proposed remedies, calling them ‘radical’ and far beyond the scope of the legal case. Google maintains that its search engine’s popularity is due to its superior quality and points to competition from companies like Amazon as proof of a competitive market. Meanwhile, the company faces mounting legal battles, including a separate ruling forcing it to open its Play app store to greater competition.

The Justice Department is expected to submit more detailed proposals by 20 November, with Google having until 20 December to respond with its suggestions.

Why does it matter?

The antitrust case is seen as a significant victory for regulators seeking to rein in the power of Big Tech, with similar lawsuits already filed against Meta, Amazon, and Apple. Smaller competitors, like Yelp and DuckDuckGo, have voiced support for breaking up Google’s assets, advocating for changes that could level the playing field in both search and AI.

Indian crypto exchange faces investigation after $235 million crypto hack

India’s Financial Intelligence Unit is investigating the Indian cryptocurrency exchange WazirX following a significant cyberattack that resulted in the theft of $235 million. The exchange is cooperating with government agencies and has provided authorities with extensive server logs and transaction data related to the incident, which occurred in July. Although no physical assets have been seized, WazirX is actively engaging with regulatory bodies to understand the broader implications of the hack on the unregulated crypto sector.

In a bid to enhance transparency, WazirX plans to publicly disclose wallet addresses through court affidavits and has committed to addressing user concerns. The exchange aims to establish a 10-member committee of creditors by 9 October to assist in its restructuring efforts, to return 52-55% of the remaining crypto assets to affected clients within six months.

Additionally, WazirX’s parent company, Zettai, is in discussions with 11 potential partners to explore capital injections and profit-sharing strategies that could aid in user recoveries. Following the hack, WazirX has sought a Scheme of Arrangement in Singapore under local insolvency laws. An independent audit revealed no evidence of wrongdoing by its custodian partner, Liminal Custody.

Judge allows FTC antitrust case against Amazon to proceed

A US District judge has allowed the Federal Trade Commission’s antitrust case against Amazon to proceed, although some claims made by state attorneys general from New Jersey, Pennsylvania, Maryland, and Oklahoma were dismissed. The FTC accuses Amazon of using anti-competitive tactics to dominate the online retail market, including an algorithm that allegedly inflated prices for US households by over $1 billion before it was discontinued in 2019.

Amazon had sought to dismiss the case, arguing that the FTC had not proven harm to consumers. However, the judge ruled that it’s too early to consider Amazon’s defense that its practices benefited competition. The case will continue, keeping the spotlight on Amazon’s business practices.

US House committee investigates FCC’s withdrawal of broadband subsidies from Starlink

A US House committee revealed on Monday that it is investigating the Federal Communications Commission’s (FCC) decision to deny SpaceX’s satellite internet division, Starlink, $885.5 million in rural broadband subsidies. The FCC had reaffirmed in December that the denial stemmed from Starlink’s failure to meet essential program requirements and its inability to demonstrate that it could deliver the promised services, following SpaceX’s challenge to the decision made in 2022.

House Oversight Committee Chair James Comer, a Republican, has requested the FCC provide relevant documents by October 21 to ensure that the regulatory process was followed properly and not influenced by political motives. The FCC acknowledged receipt of the letter and will respond accordingly.

In December 2020, the FCC initially awarded $9.2 billion to more than 300 bidders for high-speed broadband deployment, with Starlink securing $885.5 million in a 2020 auction aimed at serving rural areas. However, in August 2022, the FCC revoked this funding, citing speed-test data that showed Starlink struggled to meet the program’s basic requirements, despite its commitments to provide high-speed service to 642,000 rural homes and businesses in 35 states.

Musk has strongly criticised the FCC’s ruling, calling it “illegal” and claiming that the funding could have saved lives during Hurricane Helene in North Carolina. FCC Chair Jessica Rosenworcel stated that Starlink’s performance data confirmed the agency’s findings about its uplink and downlink speed issues, adding that the proposal required subscribers to purchase a $600 dish to start service. Two Republican commissioners dissented, arguing that SpaceX was unfairly held to future performance targets. Rosenworcel has since expressed a desire for increased competition in the satellite internet market, emphasising the need to welcome additional companies to promote innovation and reduce monopolistic control.

Court ruling forces Google to allow rival app stores

A US judge has ruled that Google must make significant changes to its Play Store, allowing Android users to access third-party app stores and payment methods for three years. The ruling comes after a jury sided with ‘Fortnite’ creator Epic Games, which accused Google of monopolising app access and in-app payments on Android devices.

The order, issued by Judge James Donato, prevents Google from blocking alternative payment options or pre-installing its app store through deals with device makers. The decision is set to take effect on 1 November 2024, giving Google time to comply. However, Google plans to appeal the ruling, arguing that it could harm consumers, developers, and device makers.

Epic Games CEO Tim Sweeney called the decision “big news” and said it could lead to a more competitive Android ecosystem by 2025. Meanwhile, Google is also facing antitrust cases over its dominance in web search and ad technology.

X’s return to Brazil postponed as payment of fines remains unresolved

Brazil’s Supreme Court has delayed its decision on whether social media platform X can resume operations in the country due to issues regarding the payment of fines. Lawyers representing X argued that the company had made the payments correctly, but the court found that they did not pay to the proper bank, which remains the only unresolved issue for the platform’s reinstatement.

Since late August, X has faced suspension in Brazil, a significant market, following its failure to comply with court orders regarding hate speech moderation and the requirement to appoint a legal representative in the country. Earlier on Friday, X, owned by Elon Musk, submitted a new request to restore its services, claiming to have settled all outstanding fines.

In response to the request, Justice Alexandre de Moraes insisted that the payments must be transferred to the appropriate bank. He also noted that the prosecutor general of Brazil would provide input on X’s recent appeals once the fine payment situation is clarified.

After reversing its earlier stance and complying with court directives in recent weeks, including blocking specific accounts under investigation, X sought the court’s approval to resume services. However, de Moraes previously stated that the company needed to pay just over $5 million in fines before the suspension could be lifted.