Jurisdiction

OpenAI faces legal action from Indian news companies

Several prominent Indian media outlets, including those owned by billionaires Gautam Adani and Mukesh Ambani, are taking legal action against OpenAI. These outlets, such as NDTV and Network18, along with organisations like the Indian Express and Hindustan Times, have filed to join an ongoing lawsuit against OpenAI in a New Delhi court. They allege that OpenAI has been improperly scraping their copyrighted content to train its AI model, ChatGPT, without permission or payment.

The legal claim, which is being led by the Digital News Publishers Association (DNPA), argues that OpenAI’s practices pose a significant threat to the copyrights of its members. The publishers claim that OpenAI’s actions amount to ‘wilful scraping’ and the use of their work for commercial gain, especially as the company generates revenue through ads linked to AI-generated content. This lawsuit highlights broader concerns in the media industry about the influence of large tech companies on content distribution and monetisation.

The legal proceedings are part of a larger global trend, with authors, musicians, and news organisations worldwide suing AI firms for using their works without compensation. In the US, the New York Times has filed a similar lawsuit against OpenAI and its major backer, Microsoft. This new case in India adds significant pressure to OpenAI, which has denied the allegations, arguing that its AI systems rely on publicly available data and that deleting such data could violate US law.

The Indian plaintiffs argue that OpenAI’s failure to strike content-sharing deals with local publishers, while it has done so with international media outlets, undermines the business of Indian news companies. The publishers warn that OpenAI’s practices could weaken the media landscape and negatively impact democracy, calling for greater protection of intellectual property in the age of AI.

Kraken’s major defence dismissed in SEC lawsuit

The US Securities and Exchange Commission (SEC) has partially won its case against the crypto exchange Kraken. A California federal judge ruled on 24 January 2025, dismissing Kraken’s argument that Congress had not granted the SEC jurisdiction over the crypto market. Judge William Orrick decided that the SEC’s actions fell within powers that Congress could reasonably have delegated to the agency.

Kraken had invoked the ‘major questions doctrine,’ which argues that government agencies cannot exercise powers not specifically granted by Congress. Other crypto companies, such as Coinbase and Binance, have used this defence in similar cases. However, Judge Orrick noted that while cryptocurrency is growing, it has not reached an economic significance comparable to other sectors like energy or student loans.

Despite this, the court allowed Kraken’s ‘fair notice’ defence to remain in place. Kraken claimed it wasn’t adequately informed by the SEC about how its activities might violate securities laws. The case, which began in November 2023, is part of the SEC’s ongoing efforts to regulate the crypto industry, with Kraken accused of operating without proper registration as a securities exchange.

Trump hints at TikTok deal within 30 days

Discussions surrounding TikTok’s ownership and future in the US are intensifying, with President Trump indicating a decision could come within 30 days. Speaking aboard Air Force One, he confirmed conversations with multiple parties interested in acquiring the app. Trump emphasised substantial interest in TikTok, which boasts 170 million American users.

The White House is reportedly pursuing a plan involving Oracle and external investors to address national security concerns. The proposal under consideration would allow ByteDance, TikTok’s China-based parent company, to retain a minority stake, while Oracle would oversee data management and software updates. These arrangements aim to allay fears of Chinese government interference.

Oracle’s involvement builds on its existing role in hosting TikTok’s US user data. However, Trump clarified he had not directly discussed the matter with Oracle’s Larry Ellison. Reports suggest ByteDance’s US investors, including Susquehanna International Group and Sequoia Capital, may also participate in the deal.

The situation remains fluid, with details of the potential agreement subject to change. While Trump has suggested US ownership in a joint venture, finalising a deal will require balancing Congressional scrutiny, national security considerations, and free speech concerns raised by TikTok’s advocates.

Frank McCourt considers TikTok bid with partners

Billionaire Frank McCourt has expressed interest in partnering with others to acquire TikTok’s US operations, provided he retains control. Speaking at the World Economic Forum in Davos, he revealed that private equity firms and family offices have already offered financial backing. He emphasised that the primary challenge lies in awaiting decisions from ByteDance or the Chinese government, rather than securing funding.

McCourt’s bid, tied to his Project Liberty initiative, aims to shift TikTok’s 170 million US users to his platform, promoting greater user control over data sharing. The billionaire remains firm on excluding TikTok’s recommendation algorithm from the deal. His advocacy group initially submitted a proposal earlier this year, focusing on building a digital infrastructure based in the US.

Interest in TikTok’s US operations has surged, drawing attention from notable investors, including Elon Musk and Larry Ellison. Some existing TikTok stakeholders have expressed interest in retaining partial stakes, potentially lowering the estimated $20 billion cost. The sale follows legislative pressure in the US to enforce divestiture or a ban.

McCourt reported bipartisan support from Congress for ensuring a qualified divestiture of TikTok’s US assets. Despite never using the app himself, he values its users, data, and brand, seeing the acquisition as an opportunity to reshape digital engagement.

GameOn founder faces fraud charges

The founder and former CEO of GameOn, an AI startup in San Francisco, has been indicted for orchestrating a six-year-long fraud scheme that allegedly defrauded investors and the company out of over $60 million. Alexander Beckman, 41, faces 23 criminal charges, while his wife, Valerie Lau Beckman, 38, who worked as a lawyer for the company, is charged with 16 counts, including obstruction. Both have pleaded not guilty. The US Securities and Exchange Commission has also filed civil charges against the couple.

Beckman is accused of deceiving investors by inflating the company’s financial status, including fabricating fake customer relationships, overstating revenue, and creating fraudulent bank statements and audit reports. He allegedly went as far as impersonating individuals to share false information. Meanwhile, Lau Beckman allegedly assisted her husband by providing authentic audit reports to help fabricate false documents and delete critical files after an investigation began.

The Beckmans are also accused of misusing investor funds for personal expenses, including purchasing a luxury home, vehicles, and covering costs for their wedding. The fraudulent activities reportedly continued up until Beckman’s resignation as CEO in July 2024. GameOn, which has since been rebranded as On Platform, eventually admitted to the financial discrepancies and laid off most of its employees.

The case underscores the need for integrity in the tech industry, particularly within startups, as federal prosecutors emphasise that fraud cannot fuel innovation.

Google wins court battle over Russian judgments

Google secured an injunction from London’s High Court on Wednesday, preventing the enforcement of Russian legal judgments against the company. The rulings related to lawsuits filed by Russian entities, including Tsargrad TV and RT, over the closure of Google and YouTube accounts. Judge Andrew Henshaw granted the permanent injunction, citing Google’s terms and conditions, which require disputes to be resolved in English courts.

The Russian judgments included severe ‘astreinte penalties,’ which increased daily and amounted to astronomical sums. Google’s lawyers argued that some fines levied on its Russian subsidiary reached numbers as large as an undecillion roubles—a figure with 36 zeroes. Judge Henshaw highlighted that the fines far exceeded the global GDP, supporting the court’s decision to block their enforcement.

A Google spokesperson expressed satisfaction with the ruling, criticising Russia’s legal actions as efforts to restrict information access and penalise compliance with international sanctions. Since 2022, Google has taken measures such as blocking over 1,000 YouTube channels, including state-sponsored news outlets, and suspending monetisation of content promoting Russia‘s actions in Ukraine.

UK government shakes up CMA leadership

Marcus Bokkerink has been removed from his position as chair of the Competition and Markets Authority (CMA) by the UK government, marking a shift in regulatory practices aimed at boosting economic growth. The CMA, a key agency overseeing mergers and competition, had recently paused the high-profile Microsoft-Activision Blizzard merger, showcasing its regulatory power. Bokkerink, appointed in 2022, was expected to serve a five-year term but will now step down as part of the government’s effort to realign regulatory bodies with its economic priorities.

This decision reflects a broader governmental push to reduce barriers to economic expansion. Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Secretary Jonathan Reynolds recently sent a letter to several regulators, including the CMA, urging them to prioritize growth. Government insiders have suggested that the move signals a serious commitment to reshaping the regulatory environment to encourage investment and economic development.

The removal of Bokkerink, a former senior partner at Boston Consulting Group, comes as the government continues to focus on attracting international investment, with key figures like Reeves and Reynolds attending the World Economic Forum in Davos to further this goal. The government’s efforts to reshape regulatory culture align with its broader strategy to make economic growth the country’s top priority.

Confusion as Meta users face automatic follow issue with Trump profiles

Meta users in the US are experiencing an unusual phenomenon where they are being automatically re-followed by the accounts of President Donald Trump, Vice President JD Vance, and first lady Melania Trump. The issue emerged after users intentionally unfollowed these accounts following the administration’s transition. Feedback from users, including actress Demi Lovato and comedian Sarah Colonna, highlighted frustration over the inability to maintain their choice to unfollow prominent political figures.

Upon the change of administration, official White House social media accounts are supposed to transition smoothly to the new leaders. While Meta’s communications director Andy Stone acknowledged that followers from the Biden administration were carried over to Trump’s accounts, he confirmed that users were not being forced to re-follow these profiles. Stone suggested that delays in processing follow and unfollow requests might contribute to the confusion experienced by users.

Many individuals reported recurrent issues despite efforts to unfollow the accounts multiple times, raising questions about the underlying technicalities involved. Users are expressing concerns over privacy and choice in the use of social media platforms, as the ability to curate their feeds appears compromised. However, this automatic re-following could reflect broader implications for user control in digital spaces.

As Meta has yet to release a detailed response to the reported glitch, users continue to voice their concerns across multiple platforms. The situation underscores an ongoing need for clarity and assurance regarding user preferences in social media interactions, especially during a politically sensitive time.

WhatsApp wins temporary relief in India data sharing case

An Indian court has temporarily suspended a ban on data sharing between WhatsApp and its parent company, Meta. The ban, imposed by India’s competition regulator last year, had restricted WhatsApp from sharing user data with other Meta platforms, such as Facebook and Instagram, for advertising purposes.

Meta had argued that this restriction would severely impact its business model and potentially force it to roll back features. The court acknowledged the potential harm to WhatsApp’s business and agreed to suspend the ban while it continues to hear Meta’s appeal.

India is a crucial market for Meta, with hundreds of millions of users across its platforms. The company had warned that the data sharing restrictions would prevent businesses from effectively targeting ads to relevant audiences, hindering their ability to grow and reach customers. The court’s decision provides a temporary reprieve for Meta while the legal battle continues.

The Indian competition regulator had argued that WhatsApp’s data sharing practices were anti-competitive and unfairly benefited Meta. However, Meta maintained that the data sharing was necessary for providing a seamless user experience and offering valuable services to businesses. The court’s decision highlights the ongoing debate surrounding data privacy and the use of user data for targeted advertising.

India watchdog demands fresh probe into Foxconn hiring

India’s National Human Rights Commission (NHRC) has rebuked labour officials for inadequately investigating claims of employment discrimination at Foxconn’s iPhone manufacturing plant in Tamil Nadu. The commission called for a thorough re-examination after a Reuters investigation revealed that Foxconn systematically excluded married women from assembly line jobs, relaxing the rule only during high-production periods.

Labour officials, who visited the Foxconn plant in July, reported that 6.7% of its 33,360 female workers were married but failed to confirm whether they worked on the assembly line. Federal investigators also relied on employee testimonies, finding no wage or promotion bias but neglected to scrutinise recruitment records. The NHRC criticised these findings as superficial, stating they failed to address the alleged discriminatory hiring practices effectively.

Foxconn and Apple, both key players in India‘s electronics manufacturing push, did not respond to inquiries about the NHRC’s concerns. While Foxconn previously instructed recruiters to remove discriminatory job criteria, the NHRC has ordered a fresh investigation into the matter. The statutory body, which holds civil court-like authority, continues to push for accountability in safeguarding workers’ rights.