UN cybercrime treaty heads to final vote amid US support

The UN Cybercrime Convention is moving closer to a full vote in the General Assembly following its approval at a recent meeting. Despite significant opposition from the private sector, civil society, and US congressional members, the United States and the United Kingdom defended their support of the treaty.

US officials acknowledged concerns but emphasised that ‘this Convention, by its explicit terms, does not permit Parties to misuse the Convention or any part of it to suppress human rights’ and that ‘the US further call on all states to take necessary steps within their domestic legal systems to ensure the Convention will not be applied in a manner inconsistent with human rights obligations, including those relating to speech, political dissent, and sexual identity’.

Jonathan Shrier, a US representative to the UN, emphasised that the US would hold governments accountable for any misuse of the treaty and encouraged signatories to pass laws safeguarding human rights. He also highlighted mechanisms to monitor and address future abuses under the treaty, urging countries to reject data-sharing requests from those violating its human rights protections.

The UK also issued a statement endorsing the treaty but acknowledged that some member states have already resisted its human rights obligations. In the statement, the UK highlighted that it ‘will not cooperate with any country which does not comply with the safeguards required by this Convention’.

DiploFoundation recently organised an expert discussion to discuss directly with some delegations the contents of the UN convention, including the human rights provisions.

FTC looks into Microsoft’s cloud business

According to sources, the Federal Trade Commission is preparing to investigate Microsoft’s cloud computing business over allegations of anti-competitive practices. The probe will focus on claims that Microsoft uses restrictive licensing terms to deter customers from moving data from its Azure cloud service to competitors.

Reportedly, Microsoft has been accused of tactics such as raising subscription fees for departing customers, imposing steep exit charges, and making its Office 365 products incompatible with rival cloud platforms. These practices could potentially leverage the company’s market power in productivity software to stifle competition.

While the FTC declined to comment on the investigation, Microsoft has yet to respond to the allegations. The Financial Times was the first to report on the probe.

EU hits Meta with $800M antitrust fine

Meta, the parent company of Facebook, has been fined nearly 800M by the European Union for anti-competitive practices related to its Marketplace feature. The European Commission accused the tech giant of abusing its dominant position by tying Marketplace to Facebook’s social network, forcing exposure to the service and disadvantaging competitors.

This marks the first time the EU has penalised Meta for breaching competition laws, though the company has faced previous fines for privacy violations. The investigation found that Meta unfairly used data from competitors advertising on Facebook and Instagram to benefit its own Marketplace, giving it an edge that rivals couldn’t match.

Meta rejected the claims, arguing that the decision lacks evidence of harm to competition or consumers. While the company pledged to comply with the EU’s order to cease the conduct, it plans to appeal the ruling. The case highlights ongoing EU scrutiny of Big Tech, with Meta facing additional investigations on issues like privacy, child safety, and election integrity.

Swisscom gains approval in Vodafone Italia deal

Swisscom has moved a step closer to finalising its €8 billion acquisition of Vodafone Italia after receiving approval from Italy’s communications regulator, AGCOM. The deal, announced in March, aims to merge Vodafone Italia with Swisscom’s Fastweb subsidiary, potentially granting Swisscom a 30% share of Italy’s fixed broadband market. However, the transaction still faces scrutiny from Italy‘s antitrust authority, AGCM, which is conducting a detailed review to assess its impact on competition.

AGCM has expressed concerns that the merger could reduce competition in Italy’s already concentrated broadband market, potentially disadvantaging residential customers. In response, Swisscom has proposed several concessions, including access to Fastweb’s fiber network for competitors and protections for existing wholesale contracts.

Competitors were invited to provide feedback on these concessions by early November, and the AGCM is expected to conclude its review by mid-December. If approved, Swisscom aims to complete the acquisition by early 2025.

South Korean authorities crack down on crypto scam

South Korean authorities have arrested 215 individuals in connection with the country’s largest cryptocurrency investment scam, which reportedly defrauded investors of 320B won ($228.4M). Among those detained is the alleged leader of the operation, who is accused of selling 28 worthless virtual tokens to approximately 15,000 victims with promises of high returns.

According to police, the group issued six of the tokens on overseas crypto exchanges and manipulated their values through market-making teams. To attract investors, they established consulting companies, recruited sales teams, and targeted viewers of a YouTube channel. Officials revealed that many of the tokens were fraudulent and lacked real value.

This case highlights growing concerns over cryptocurrency-related scams in South Korea and globally, as unregulated digital assets continue to attract both investors and opportunistic criminals. The arrests mark a significant step in addressing financial crimes in the fast-evolving crypto landscape.

Meta to give European users more control over personalised ads

Meta Platforms announced it will soon give Instagram and Facebook users in Europe the option to receive less personalised ads. The decision comes in response to pressure from EU regulators and aims to address concerns about data privacy and targeted advertising. Instead of highly tailored ads, users will be shown adverts based on general factors like age, gender, and location, as well as the content they view in a given session.

The move aligns with the European Union‘s push to regulate major tech companies, supported by legislation like the Digital Markets Act (DMA), which was introduced earlier this year to promote fair competition and enhance user privacy. Additionally, Meta will offer a 40% price reduction on ad-free subscriptions for European customers.

The changes follow a recent ruling by Europe’s highest court, which supported privacy activist Max Schrems and ruled that Meta must limit the use of personal data from Facebook for advertising purposes. Meanwhile, the European Union is set to fine Apple under these new antitrust rules, marking a significant step in the enforcement of stricter regulations for Big Tech.

EU orders Apple to end geo-blocking practices

The European Union has issued a directive for Apple to cease geo-blocking content on several of its platforms, including the App Store, Apple Arcade, Music, iTunes Store, Books, and Podcasts. Geo-blocking, the practice of limiting access to content based on a user’s location, is considered discriminatory by the EU, as it creates barriers for consumers depending on where they live or are based. The European Commission has expressed its concerns, warning that if Apple does not address these issues within the next month, national regulators across EU member states could step in with enforcement actions.

European Commissioner Margrethe Vestager underscored the EU’s commitment to ensuring fair access to digital services, stating that no company, regardless of its size, should be allowed to unfairly limit customers’ access to services based on nationality, place of residence, or other factors unrelated to the services provided. Apple now has one month to submit a detailed plan that addresses these concerns and outlines how the company will eliminate geo-blocking practices from its platforms. Failure to meet this deadline could result in penalties or legal consequences as the EU continues to prioritise consumer rights and digital market fairness across Europe.

South Korea’s chip industry faces rising international pressures

South Korea’s ruling party has proposed a new chips act designed to offer subsidies to chipmakers and provide an exemption from the national cap on working hours. The legislation comes as the country faces increased competition from rivals in China, Taiwan, and other nations, along with potential risks from measures threatened by incoming United States President Donald Trump. The semiconductor sector is crucial for South Korea‘s economy, accounting for 16% of total exports last year.

President Yoon Suk Yeol recently warned of challenges posed by Trump’s threat of steep tariffs on Chinese imports, which could lead Chinese rivals to cut export prices and impact South Korean chip firms abroad. The bill, which requires approval from the main opposition party, also includes provisions allowing extended working hours for some research and development employees. However, Samsung’s labour union has opposed this, arguing that the company is deflecting blame for its financial struggles.

Samsung has apologised for disappointing profits as it lags behind competitors like TSMC and SK Hynix in the AI chip market. Global competition has intensified as countries like China, Japan, and the United States have been subsidising their chip manufacturers. In a recent statement, lawmaker Lee Chul-gyu stressed that the proposed act would help South Korean companies remain competitive amid the ongoing semiconductor trade tensions between the United States and China.

Chinese dual citizen admits role in $73 million crypto scam

A Chinese dual citizen, Daren Li, has pleaded guilty to laundering $73 million stolen through cryptocurrency scams. The schemes, active from August 2021 to April 2024, included fraudulent practices such as “pig butchering.” Li admitted using shell companies and US-based bank accounts to disguise and transfer the stolen funds.

Prosecutors revealed that millions were converted into Tether (USDT) and distributed to wallets controlled by Li and his co-conspirators. One of the wallets linked to the scheme reportedly held over $341 million in digital assets. Li’s arrest occurred in April 2024 at Atlanta airport, while his alleged accomplice, Yicheng Zhang, was arrested in May.

Li now faces a maximum sentence of 20 years in prison, a $500,000 fine, and three years of supervised release. Prosecutors also indicated he may need to pay restitution of up to $73 million to the victims. His sentencing hearing is scheduled for March 2025.

US court asked to drop Huawei case ahead of 2026 trial

Huawei Technologies has called on a US judge to dismiss most of the federal charges accusing the company of conspiring to steal technology secrets from American firms and misleading banks about its business dealings in Iran. In a court filing in Brooklyn, Huawei described the accusations as part of the Department of Justice’s ‘ill-founded’ China Initiative, aimed at prosecuting Chinese entities. The company argued there is no substantial evidence of a conspiracy and that several charges relate to actions outside the United States.

The telecommunications giant contended that the bank fraud allegations rely on a ‘right to control’ theory of fraud, which the US Supreme Court invalidated in a separate case last year. Huawei, which operates globally from its base in Shenzhen with around 207,000 employees, has pleaded not guilty. A trial is set for January 2026. A spokesperson for the US Attorney’s office declined to comment, and Huawei’s legal team did not respond to requests for remarks.

The case dates back to 2018 and led to the high-profile detention in Canada of Huawei’s Chief Financial Officer Meng Wanzhou. Although charges against her were dropped in 2022, the controversy remains a significant chapter in US-China tensions. The China Initiative, under which Huawei was prosecuted, was initiated during Donald Trump’s presidency to curb alleged intellectual property theft by Beijing but was terminated by the Biden administration in 2022 following criticism of racial profiling and the negative impact on research.