Amazon has secured a partial victory in a US antitrust case brought by the Federal Trade Commission (FTC). The federal court ruled in favour of Amazon’s request to dismiss some of the claims, though others will proceed. The ruling, issued in Seattle, has not yet been fully disclosed.
The FTC initially accused Amazon of using unfair tactics to maintain its dominance in the online market. The lawsuit claimed Amazon’s algorithms raised prices, costing US households over $1 billion. The company has stated it ceased using the controversial pricing system in 2019.
Although the court granted some of Amazon’s requests, other parts of the case remain active. Judge John Chun ruled that the trial would proceed in two phases, separating evidence on violations and proposed remedies. The FTC continues to pursue remaining claims.
Amazon, along with other tech giants like Meta, Apple, and Google, is facing increased scrutiny from antitrust regulators. FTC Chair Lina Khan has been vocal in challenging Amazon’s practices, citing longstanding concerns about its market influence.
Russia has ordered Discord to delete nearly 1,000 posts that are deemed illegal. The communication regulator, Roskomnadzor, highlighted that the posts include content related to child pornography, extremism, drug abuse, and LGBT promotion.
Discord, a San Francisco-based platform, and the regulator have yet to respond to queries regarding the order. Previous actions have seen Discord fined 3.5 million roubles for failing to remove illegal material.
Russia’s demands follow a long-standing policy of controlling content on foreign technology platforms. Regular fines are issued for non-compliance, with social media platforms even facing bans in some instances.
President Vladimir Putin continues to emphasise traditional values, particularly with stricter rules on LGBT promotion. Moscow’s broader push aims to restrict content that contradicts the state’s values and regulations.
Changpeng Zhao, founder of Binance, was released from a correctional facility in California on Friday. Zhao had been sentenced to four months earlier this year after admitting to money laundering violations at Binance, the world’s largest cryptocurrency exchange.
Prosecutors accused Binance of enabling criminal activity by failing to report over 100,000 suspicious transactions, including those linked to terrorist groups such as Hamas, al-Qaeda, and ISIS. The platform was also said to have facilitated the sale of child sexual abuse materials and received funds from ransomware activities.
In a settlement with US authorities, Binance agreed to pay a $4.32 billion penalty, while Zhao was personally fined $100 million. It includes a $50 million fine to the Commodity Futures Trading Commission, alongside the criminal penalties.
California Governor Gavin Newsom has vetoed a contentious AI safety bill, citing concerns that it might stifle innovation and drive companies out of the state. The bill, proposed by Senator Scott Wiener, aimed to impose strict regulations on AI systems, including safety testing and methods for deactivating advanced AI models. Newsom acknowledged the need for oversight but criticised the bill for applying uniform standards to all AI systems, regardless of their specific risk levels.
Despite the veto, Newsom emphasised his commitment to AI safety, directing state agencies to assess the risks of potential catastrophic events tied to AI use. He has also called on AI experts to help develop regulations that are science-based and focus on actual risks. With AI technology advancing rapidly, he plans to work on a more tailored approach with the legislature in the next session.
The AI bill faced mixed reactions from both the tech industry and lawmakers. While companies like Google, Microsoft, and Meta opposed the measure, Tesla’s Elon Musk supported it, arguing that stronger regulations are essential before AI becomes too powerful. The tech industry praised Newsom’s decision, stating that California’s tech economy thrives on competition and openness.
Newsom’s veto has raised questions about the future of AI regulation, both in California and across the US. With federal efforts to regulate AI still stalled, the debate over how best to balance innovation and safety continues.
The United States Department of Justice is investigating Super Micro Computer, according to a Wall Street Journal report citing sources familiar with the matter. Following the news, shares of the AI server maker fell by about 5%.
Earlier in the month, Super Micro had denied allegations made by short-seller Hindenburg Research, which accused the company of ‘accounting manipulation’ and cited issues like undisclosed related-party transactions and failure to comply with export controls.
Hindenburg revealed its short position in Super Micro in August, prompting a further examination of the company’s financial practices. Super Micro has dismissed the report as containing ‘false or inaccurate statements.’ The server maker did not immediately respond to requests for comment from Reuters.
Brazil’s Social Development Ministry will soon propose new measures to stop social benefit payments from being used for online gambling. This follows a report showing that 5 million recipients of Bolsa Familia, a cash transfer program, spent 3 billion reais on online betting in August. Bolsa Familia, which provides aid to 21 million families for essentials like food, saw nearly 20% of its monthly budget diverted to gambling, raising concerns about the misuse of these funds.
Social Development Minister Wellington Dias proposed potential solutions, such as banning the use of social benefits for gambling and implementing control mechanisms tied to tax ID numbers. These measures will be submitted to President Luiz Inacio Lula da Silva for approval. Dias stressed that the misuse of Bolsa Familia funds for betting undermines the program’s core goal of supporting low-income families with necessities.
Central Bank Chief Roberto Campos Neto emphasised that the bank’s report was not meant to criticise Bolsa Familia but to serve as a warning. He highlighted that the rapid rise of online gambling among lower-income households could jeopardise their financial stability.
A British man has been arrested and charged by US authorities for hacking into the computers of five companies to illegally obtain information about their expected earnings, resulting in profits of $3.75 million from insider trading. Robert Westbrook, 39, from London, faces multiple charges, including securities fraud, wire fraud, and five counts of computer fraud, with the US Department of Justice seeking his extradition.
Westbrook was arrested this week in the UK and is facing additional civil charges from the US Securities and Exchange Commission (SEC). Although the companies involved were not explicitly named in court documents, financial details indicate that they could include Tupperware, Tutor Perini, Guidewire Software, Murphy USA, and Lumentum Holdings.
Authorities allege that Westbrook was involved in a “hack-to-trade” scheme, gaining access to executives’ email accounts between January 2019 and May 2020. He allegedly utilised nonpublic information to trade stocks and options before at least 14 earnings announcements and even set up automatic forwarding of emails from these executives to his accounts.
Jorge Tenreiro, acting chief of the SEC’s crypto assets and cyber unit, characterised Westbrook’s actions as sophisticated international hacking, involving the use of anonymous email accounts, VPNs, and bitcoin to conceal his activities. Each charge of securities and wire fraud carries a maximum penalty of 20 years in prison, while the computer fraud charges could lead to up to five years each.
Appario, a former top seller on Amazon India, has petitioned a court to dismiss an antitrust investigation that concluded Amazon and several sellers breached local competition laws. The Competition Commission of India (CCI) alleges that Amazon, Walmart’s Flipkart, and certain smartphone brands favoured select sellers and prioritised specific listings. These accusations were based on a 2021 Reuters investigation, which exposed Amazon’s internal practices. Despite the findings, Amazon continues to deny any misconduct.
Appario, which has ceased selling on Amazon, is contesting the CCI’s findings in the Karnataka High Court, asserting that the report implicating it should be “set aside.” This legal action marks the first challenge to the CCI’s ongoing investigation, initiated in 2020, and poses a significant obstacle for Amazon in India, one of its most important markets.
The CCI previously conducted raids on Appario and other sellers during its investigation. Court records indicate that Appario is also challenging a CCI order that requires it to submit financial statements following the investigation. Neither Amazon nor Appario has commented on the ongoing legal proceedings.
Hungary plans to emphasise competition as the primary driver for investment in telecom infrastructure in its upcoming draft of the Council conclusions. This shift reflects a growing reluctance among the EU member states to adopt the European Commission’s deregulation proposals, highlighting the complexities within the telecom sector as member states consider the potential impacts on market dynamics and investment.
Prompted by the Commission’s February white paper advocating for consolidation, Hungary initially aimed to reconcile diverse stakeholder views in its draft. However, it faced criticism for being overly prescriptive, leading to revision plans. Moreover, Hungary is expected to clarify that the review of the EU’s telecom law, particularly the European Electronic Communications Code (EECC), must precede any consideration of transitioning from ex-ante regulation, designed to prevent monopolistic practices, to ex-post regulation, which addresses violations only after they occur.
That clarification highlights the critical need to uphold regulatory safeguards within the telecom sector. Additionally, Hungary is under pressure from fellow member states to ensure that the Commission publishes a new telecom strategy before allocating the EU funds to enhance submarine cable infrastructure’s security and resilience. Such an approach aligns with the broader objective of ensuring that funding mechanisms support robust and secure telecom networks throughout the EU.
Finally, Hungary has set a timeline for revisions, with member states given until 30 September to respond. A revised text is expected on 9 October, before the working group meeting on 15 October. That underscores the urgency of these discussions for the EU telecom policy.
Alphabet, Goldman Sachs, and several other firms have agreed to pay a combined total of $3.8 million in penalties to settle charges from the US Securities and Exchange Commission (SEC) over late filings. This action is part of a wider initiative aimed at companies and executives who failed to timely disclose important information to investors, such as changes in beneficial ownership and insider stock sales.
As part of the settlement, Alphabet will pay $750,000, while Goldman Sachs will contribute $300,000. Additional fines include $375,000 from Bank of Nova Scotia and $130,000 from Bain Capital Credit Member. Other firms, such as Sunbeam Management, TALANTA Investment Group, and Fortress Investment Group, also faced penalties ranging from $40,000 to $225,000.
None of the firms or individuals involved admitted to or denied the SEC’s findings, but they agreed to pay the civil penalties and refrain from any further violations. Additionally, ten individuals were also penalised for late filings, as stated by the SEC.
