Microsoft accuses Google of running campaigns in Europe to undermine its reputation

Microsoft took the unusual step of publicly accusing Google of conducting ‘shadow campaigns’ in Europe to undermine Microsoft’s reputation with regulators. According to a blog post by Microsoft lawyer Rima Alaily, Google allegedly hired the advisory firm DGA Group to organise the Open Cloud Coalition, enlisting European cloud companies to act as a front while Google finances and directs its operations. The coalition, recently launched, purports to advocate for a ‘fair, competitive, and open cloud industry’ across Europe.

Alaily claims this is part of Google’s pattern of targeting Microsoft, citing Google’s involvement in the Coalition for Fair Software Licensing and a separate effort to sway Cloud Infrastructure Services Providers in Europe with significant financial offers to oppose Microsoft’s proposed antitrust settlement. The conflict adds fuel to the rivalry between the two tech giants, who already compete intensely across cloud infrastructure, online advertising, AI, and productivity software.

In response, a Google spokesperson noted that Microsoft’s cloud licensing practices create vendor lock-in, potentially stifling competition, cybersecurity, and innovation. Hours after Microsoft published accusations, the Open Cloud Coalition formally announced its formation, listing Google as a member and calling on European authorities to intensify scrutiny on cloud competition issues. In September, Google said it was filing a complaint against Microsoft with the European Commission over what Google considers unfair practices for licensing the Windows Server operating system. 

Bybit penalised $2.4m for operating without Dutch registration

De Nederlandsche Bank (DNB), the Netherlands’ central bank, has fined crypto exchange Bybit €2.2 million ($2.4 million) for operating in the country without the required registration. Bybit’s non-compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act triggered the fine, as the exchange had not registered to support oversight and prevent illicit financial flows. The legislation, enacted in 2020, mandates that crypto providers register to reduce risks tied to anonymous transactions.

DNB stated that Bybit’s non-compliance hindered its ability to report suspicious transactions to Dutch authorities, a critical component of financial oversight. Although DNB acknowledged the severity and duration of the breach, it reduced the fine due to Bybit’s efforts to resolve the issue by transferring Dutch customers to local partner SATOS B.V., which holds a compliant operating licence.

Acknowledging the fine, Bybit underscored its commitment to regulatory adherence. CEO Ben Zhou highlighted Bybit’s actions in 2022 to mitigate potential risks, affirming the company’s goal of responsible growth through close cooperation with European regulators.

Russia issues $20 decillion fine to Google over YouTube channel ban amidst geopolitical tensions

Russia has slapped Google with an astronomical fine of $20 decillion, or 2 undecillion rubles, over the tech giant’s removal of Russian state-backed TV channels from YouTube. This 33-digit penalty, which has been mounting for four years since the initial court case in 2020, far exceeds Google’s entire market value and dwarfs even the global GDP, which stands at around $110 trillion.

Legal experts note that such an enormous fine is largely symbolic. Roman Yankovsky from the HSE Institute of Education explained that Russia has no real way to enforce this penalty internationally, as Google’s market cap sits at just over $2 trillion. The original case stemmed from YouTube’s ban of the Russian channel Tsargrad, following US sanctions imposed on the channel’s parent company.

While Google hasn’t commented, analysts view the fine as part of Russia’s broader pushback against Western tech companies and their content policies.

Temu faces EU scrutiny for alleged illegal product sales

The European Commission is preparing to investigate Chinese online retail giant Temu for possibly breaching rules designed to curb illegal product sales, according to sources cited by Bloomberg News. The inquiry follows an initial request from the Commission on 11 October for Temu to outline its efforts to prevent illegal items from being sold on its platform under the EU’s Digital Services Act (DSA).

Temu, a unit of PDD Holdings, has been classified as a ‘very large online platform’ (VLOP) by the EU, a designation that requires strict compliance with measures to counteract illegal content and counterfeit goods. While Temu submitted its response to the EU’s information request by the 21 October deadline, the Commission will determine its next steps after reviewing the data provided. Neither the European Commission nor Temu has commented on the impending investigation.

The Digital Services Act mandates platforms with more than 45 million users to ensure they are taking adequate steps to combat illegal content. The outcome of this investigation could have significant implications for both Chinese, Temu and other online marketplaces operating within the EU.

Foundem founders’ fight with Google reaches final ruling after 15 years

Shivaun and Adam Raff, founders of the now-closed price comparison site Foundem, recently concluded a 15-year legal battle against Google, which resulted in a record-breaking €2.4bn (£2bn) fine against the tech giant. The dispute began when Foundem’s online visibility plummeted due to a Google penalty shortly after the site’s 2006 launch. The Raffles believed it was an error but later suspected Google was deliberately pushing their site lower in search results to favour its own shopping services.

Following years of appeals, the European Court of Justice ruled against Google in 2024, upholding the European Commission‘s 2017 decision that Google had abused its market dominance by demoting competing shopping services. Although Foundem’s closure in 2016 made the victory bittersweet, the case has had lasting regulatory implications, prompting the European Commission to investigate Alphabet, Google’s parent company, for ongoing anti-competitive practices under the Digital Markets Act.

The Raffs, whose site once allowed users to compare a wide range of products, fought for years with little initial success, escalating the case to regulators in Brussels in 2010. Google argued its changes since 2017 comply with the EU ruling and benefit hundreds of price comparison sites, but the Raffs maintain that Google’s practices continue to stifle competition.

The couple’s legal journey has taken a toll, but they are still pursuing a civil damages claim against Google, scheduled for 2026. Their fight is seen as a pivotal moment in Big Tech regulation, underscoring their determination to challenge anti-competitive behaviour.

Luxottica founder’s son involved in alleged data access scheme, faces probe

Italian authorities have placed Leonardo Maria Del Vecchio, son of the late billionaire founder of Luxottica, and three others under house arrest as part of a probe into suspected illegal access to state databases. Del Vecchio, whose father created the Ray-Ban eyewear empire, is accused of employing a private intelligence agency, allegedly managed by a former police officer, to gather confidential data. The alleged access was reportedly linked to a family dispute over inheritance.

Del Vecchio’s lawyer, Maria Emanuela Mascalchi, said her client is “eagerly awaiting” the investigation’s conclusion, maintaining he has “nothing to do” with the allegations and is more a victim of the situation. Prosecutors allege that the intelligence agency illegally accessed data from state systems, including tax, police, and financial databases, which were reportedly used to blackmail business figures or sold to third parties.

The probe, which extends back to at least 2019 and continued until March 2024, highlights concerns about a lucrative market for sensitive information in Italy. Italy’s national anti-mafia prosecutor, Giovanni Melillo, remarked that the case has raised alarm over the existence of an underground market for confidential data, now operating on an industrial scale.

This case follows a recent investigation into a significant data breach at Italy’s largest bank, Intesa Sanpaolo, suggesting a wider issue of data misuse in the country.

Lyft fined $2.1 million by US FTC for misleading earnings claims to drivers

Lyft has been fined $2.1M by the US Federal Trade Commission (FTC) for allegedly misleading drivers about potential earnings. The settlement requires the rideshare company to adjust how it advertises driver pay, after it was found that earnings claims were exaggerated, often highlighting what only the top fifth of drivers made, and including tips in those figures.

The FTC stated that some Lyft ads claimed drivers could make ‘up to $33’ per hour in certain cities in the US, such as Atlanta, but these figures did not reflect average earnings. Instead, most drivers earned significantly less, with advertised pay inflated by as much as 30%. As part of the settlement, Lyft must now base earnings estimates on what typical drivers make, excluding tips from hourly pay claims.

In addition, Lyft’s guarantees, such as a $975 payout for completing 45 rides over a weekend, were found to be misleading. Drivers believed the amount would be a bonus, but it was actually a conditional minimum guarantee. The FTC stressed the need for accurate representation of driver pay, with Chair Lina M. Khan emphasising the agency’s commitment to protecting workers from deceptive claims.

US Commerce Department IoT panel recommends privacy labels for vehicles

The Commerce Department’s IoT Advisory Board has recommended that car dealers display privacy disclosures on vehicle windshields, urging government agencies and Congress to mandate this requirement. The report, developed with the officials from the National Institute of Standards and Technology (NIST), suggests including easy-to-understand privacy information on vehicle windshields, such as whether vehicles collect personal data and options for universal opt-outs.

This initiative aims to enhance consumer protection amid growing concerns over data privacy in connected cars. The board noted automakers often need to inform consumers about data practices adequately. Despite opposition from the Alliance for Automotive Innovation, the recommendation was adopted after a briefing highlighted the potential benefits of such labelling for consumer awareness.

“So many consumers tell us they had no idea their car is ‘a smartphone on wheels’ that can transmit data to the manufacturer and other companies,” said Amico, who runs Privacy4Cars, a privacy technology company which helps consumers and businesses better understand data privacy concerns related to connected cars. 

The report will be considered by a federal working group tasked with determining whether legislation or executive action is needed to implement the recommendations, including regulating third-party data sharing and simplifying privacy policies. The advisory board emphasised that this initiative could set a global standard for IoT device privacy. A few countries, e.g. Singapore, have created comprehensive standards around consumer Internet of Things devices, such as cybersecurity labelling schemes.

Linux creator supports removing Russian kernel maintainers

Linux creator Linus Torvalds has expressed support for removing several Russian maintainers from the Linux kernel project. This decision, announced by prominent developer Greg Kroah-Hartman, has sparked debate within the Linux community. The removals affect 11 Russian developers, largely due to compliance with new sanctions, though specific details of the removals still need to be fully clarified.

Responding to the concerns, Torvalds stated, “If you haven’t heard of Russian sanctions yet, you should try reading the news sometime,” emphasising that the changes will not be reversed.

The Linux kernel, the operating system’s core, is managed by maintainers who oversee code submissions and updates. Kroah-Hartman noted that those removed may return if they provide documentation proving independence from sanctioned entities, especially organisations associated with the Russian government.

This action has stirred reactions among developers, with some accusing the decision-makers of acting contrary to Linux’s open-source principles. Others warned that the decision could lead to future uncertainties about the participation of maintainers in sanctioned regions.

Responding to criticism, Torvalds dismissed the objections as originating from “Russian troll factories” and reaffirmed his stance, citing his opposition to Russian aggression. The move follows broader trends in the tech industry, where major US companies, like Docker Hub and GitHub, have imposed restrictions on Russian users, reflecting the impact of international sanctions on open-source software projects.

Alibaba settles US monopoly lawsuit for $433.5 M

Chinese e-commerce giant Alibaba has agreed to a $433.5 M settlement to resolve a US class-action lawsuit accusing the company of monopolistic practices. The lawsuit, filed in 2020, claimed that Alibaba misled investors by denying any anti-monopoly or unfair competition violations while allegedly pressuring merchants to stick to a single platform.

Although Alibaba denies any wrongdoing, the company opted for the settlement to avoid the costs and potential disruptions associated with prolonged legal battles. The settlement, which covers investors in Alibaba’s American depositary shares between 13 November 2019, and 23 December 2020, is pending approval from US District Judge George Daniels in Manhattan.

Lawyers for the plaintiffs have praised the deal, describing it as “an exceptional result” considering the potential damages in the case. Had the investors continued litigating, they could have sought up to $11.63 B in damages, far beyond the settlement amount. Approval of the settlement would mark the end of a major legal challenge for Alibaba, as it seeks to move forward from a period of regulatory scrutiny.