Elon Musk’s social media platform, X, has moved to address legal requirements in Brazil by appointing a new legal representative, Rachel de Oliveira Conceicao. Musk’s step follows orders from Brazil’s Supreme Court, which had previously blocked the platform after it failed to comply with local regulations, including naming a legal representative after its office closure in mid-August. X’s decision to appoint Conceicao aims to fulfil Brazilian law, which requires foreign companies to establish local legal representation to operate in the country.
The platform faced a complete shutdown in Brazil when mobile and internet providers were ordered to block X in late August. The order came after months of disputes between Musk and Brazilian Supreme Court Justice Alexandre de Moraes, centring around X’s reluctance to remove content spreading hate speech and misinformation. Musk had criticised the court’s demands, calling them censorship, and the platform’s refusal to comply escalated tensions.
X’s legal team in Brazil announced that the company has begun complying with court orders to remove harmful content, a key demand from the country’s top court. The decision signals a shift in Musk’s approach to Brazil’s strict content regulations and could pave the way for the platform to resume full operations.
The legal battles between X and Brazil highlight the broader tension between free speech and government regulation as nations like Brazil take stronger stances on monitoring harmful content online. At the same time, platforms face the challenge of balancing compliance with global standards.
Elon Musk’s social media platform, X, is set to appoint a legal representative in Brazil as it fights a Supreme Court order. The platform faced suspension in August over concerns about hate speech, and despite a temporary workaround, remains under scrutiny.
Brazil’s Supreme Court recently ordered the platform to stop bypassing the block, threatening fines if X continues to circumvent the ruling. Lawyers for the platform have clarified that they are working to comply, including naming a local representative as required.
In a months-long legal dispute between Musk and Brazilian Justice Alexandre de Moraes, X’s offices in Brazil closed in mid-August. The company, however, says it is making efforts to restore full operations soon.
The firm has begun complying with content removal orders issued by courts in Brazil, addressing previous concerns over the spread of misinformation. X insists it is focused on resolving the legal issues and working with the government.
Philippines has introduced Joint Administrative Order No. 24-03, Series of 2024, which outlines the Implementing Rules and Regulations (IRR) for the Internet Transactions Act (ITA) of 2023. The new regulatory framework is designed to govern all business-to-business (B2B) and business-to-consumer (B2C) internet transactions under the jurisdiction of the Department of Trade and Industry (DTI).
Specifically, it applies to transactions involving parties within the Philippines or businesses targeting the Philippine market. To clarify the scope of the ITA, the IRR defines key terms such as ‘availment of the Philippine market,’ which includes activities like advertising, soliciting orders, and providing support within the country. Additionally, ‘minimum contacts’ refers to any interaction with customers in the Philippines, including allowing access to digital platforms and facilitating the exchange of goods or services.
Philippines has also specified specific exclusions from the ITA’s coverage through the IRR. For instance, it does not apply to Consumer-to-Consumer (C2C) transactions, purely offline transactions, or foreign entities not targeting the Philippine market. Furthermore, while most online media content is excluded, live selling is considered a form of advertising.
Consequently, the IRR outlines different obligations for various online entities, such as digital platforms that do not oversee transactions, e-marketplaces that retain oversight, and e-retailers or online merchants who must adhere to specific compliance requirements.
Philippines has made the IRR effective immediately; however, it allows for an 18-month transition period for businesses to comply. During this time, companies must submit detailed information to the E-Commerce Bureau and ensure that online merchants provide their registration details. Additionally, digital platforms must disclose information about product origins. Furthermore, the IRR includes Codes of Conduct for businesses and consumers to ensure fair and ethical e-commerce practices.
The US Securities and Exchange Commission (SEC) has reached a settlement with decentralised finance platform Rari Capital and its founders following accusations of misleading investors and operating as unregistered brokers. The settlement addresses serious concerns raised by the SEC over the platform’s compliance with financial regulations.
Rari Capital, which once managed over $1 billion in crypto assets at its peak, was co-founded by Jai Bhavnani, Jack Lipstone, and David Lucid. The SEC highlighted that the platform and its founders failed to properly disclose key information to investors, contributing to potential risks for those involved.
The following case underscores regulatory bodies’ increasing scrutiny of decentralised finance platforms, as they aim to ensure transparency and protect investors in the fast-evolving crypto space.
Russian retailers have launched pre-sales of the iPhone 16, despite Apple’s ongoing export ban to the country. Leading companies M.Video-Eldorado and MTS have begun offering the devices at prices far higher than in the United States. Deliveries are expected to begin within the next week.
Apple had paused sales in Russia in March 2022 after the invasion of Ukraine, in line with Western sanctions targeting technology exports. Although Apple no longer operates in the region, Russian retailers are obtaining the new iPhones via grey imports. These imports are routed through countries like Turkey and Kazakhstan, where sanctions are not enforced.
Prices for the iPhone 16 in Russia start at 112,999 roubles ($1,225), significantly higher than the $799 price tag in the US The Pro Max version, with 1TB storage, is priced at 249,999 roubles ($2,710), more than $1,000 over the US price. Russian consumers continue to show demand for Western technology, despite sanctions.
The Russian government supports the parallel import scheme for products like the iPhone 16. Despite efforts to encourage domestic alternatives, Western goods remain popular, even though officials have been warned to avoid using iPhones due to alleged security concerns, claims Apple has denied.
As the EU finalises its groundbreaking AI Act, major technology firms are lobbying for lenient regulations to minimise the risk of multi-billion dollar fines. The AI Act, agreed upon in May, is the world’s first comprehensive legislation governing AI. However, the details on how general-purpose AI systems like ChatGPT will be regulated remain unclear. The EU has opened the process to companies, academics, and other stakeholders to help draft the accompanying codes of practice, receiving a surge of interest with nearly 1,000 applications.
A key issue at stake is how AI companies, including OpenAI and Stability AI, use copyrighted content to train their models. While the AI Act mandates companies to disclose summaries of the data they use, businesses are divided over how much detail to include, with some advocating for protecting trade secrets. In contrast, others demand transparency from content creators. Major players like Google and Amazon have expressed their commitment to the process, but there are growing concerns about transparency, with some accusing tech giants of trying to avoid scrutiny.
The debate over transparency and copyright has sparked a broader discussion on the balance between regulation and innovation. Critics argue that the EU’s focus on regulation could stifle technological advancements, while others stress the importance of oversight in preventing abuse. Former European Central Bank chief Mario Draghi recently urged the EU to improve its industrial policy to compete with China and the US, emphasising the need for swift decision-making and significant investment in the tech sector.
The finalised code of practice, expected next year, will not be legally binding but will serve as a guideline for compliance. Companies will have until August 2025 to meet the new standards, with non-profits and startups also playing a role in drafting. Some fear that big tech firms could weaken essential transparency measures, underscoring the ongoing tension between innovation and regulation in the digital era.
Australian authorities have charged a Sydney man with creating and managing an encrypted messaging app, Ghost, allegedly used by global crime networks. The man, 32, was arrested in western Sydney and appeared in court on Wednesday, facing multiple charges related to the platform’s role in organised crime. Ghost is said to have been used by syndicates from Australia, the Middle East, and South Korea for drug trafficking and contract killings.
Police, in collaboration with international forces, carried out extensive raids across Australia and beyond, with searches also conducted in Italy, Ireland, Sweden, and Canada. Up to 50 Australians allegedly involved with Ghost are now facing charges, with significant prison terms expected. More arrests are anticipated in both Australia and abroad.
Authorities have made a breakthrough by cracking Ghost’s encryption, preventing the deaths or serious injuries of 50 individuals in Australia. This marks the first time an Australian has been accused of running a global criminal messaging platform, a major milestone in the country’s fight against organised crime.
The Australian Federal Police Deputy Commissioner highlighted the complex nature of dismantling encrypted communication platforms. The success in accessing evidence from Ghost represents a major achievement in efforts to disrupt global criminal activity.
Prager Metis, the former auditor for collapsed cryptocurrency exchange FTX, has agreed to pay $1.95 million to settle two cases brought by the US Securities and Exchange Commission (SEC). The settlement resolves allegations of negligence in auditing the exchange under the leadership of Sam Bankman-Fried, who has since been convicted of fraud. The SEC accused the New York-based firm of providing inaccurate audit reports for FTX in 2021 and 2022, failing to meet accepted auditing standards.
The audit firm was found to have misunderstood FTX’s operations, particularly its relationship with Alameda Research, a hedge fund tied to Bankman-Fried. Alameda suffered significant financial losses, prompting Bankman-Fried to misappropriate $8 billion from FTX customers to cover them. FTX’s sudden collapse in November 2022 led to its bankruptcy filing, leaving many investors defrauded and billions in losses.
As part of the settlement, Prager Metis will pay $1.75 million in civil fines alongside disgorged profits and interest, though the firm did not admit any wrongdoing. Additionally, the SEC settlement included charges related to auditor independence violations between 2017 and 2020. Prager Metis’ legal representative stated that the firm was also a victim of FTX’s internal fraud.
Meanwhile, Bankman-Fried is appealing his conviction and 25-year prison sentence. Caroline Ellison, former chief executive of Alameda and Bankman-Fried’s former girlfriend, pleaded guilty and testified against him. Her sentencing is set for later this month, and she is requesting leniency from the court.
Google’s advertising business has faced renewed scrutiny in the EU, with a recent proposal to sell its advertising marketplace, AdX, being rejected by European publishers. The tech giant offered the sale to resolve an antitrust investigation by the EU, which accuses Google of favouring its services. The investigation followed complaints from the European Publishers Council, and the European Commission has since charged Google with anti-competitive practices.
Publishers dismissed Google’s offer as insufficient, arguing that the sale of AdX alone would not address the broader conflicts of interest due to Google’s dominance across the entire adtech supply chain. These industry insiders suggest that more drastic measures may be needed to curb Google’s influence, but the EU has not yet demanded such extensive divestments.
Google, meanwhile, maintains that the Commission’s claims are based on a misinterpretation of the competitive nature of the advertising sector. Despite facing similar antitrust trials in the US over its advertising technology, the company continues to defend its business practices, where authorities have called for selling its Ad Manager product.
AdX, which allows publishers to auction unsold ad space to advertisers in real time, has become a key component in the ongoing investigation. The EU antitrust chief Margrethe Vestager previously suggested Google divest additional tools to resolve the issue. However, experts believe the Commission may first issue a simpler ruling to halt Google’s current practices before escalating to demands for asset sales.
With advertising contributing to 77% of Google’s $237.85 billion revenue in 2023, the company’s dominant position in digital advertising remains a central point of contention in the EU and globally.
Meta Platforms has secured a legal victory after a US court dismissed a lawsuit accusing the tech giant of misleading shareholders about the impact of Apple’s privacy changes on its advertising business. The suit, brought by Israeli insurers and pension funds, claimed Meta concealed how Apple’s iOS privacy updates would diminish the effectiveness of ads on Facebook and Instagram, harming the company’s ad revenue.
The plaintiffs argued that Meta’s stock value dropped 53% within a year, wiping out over $500 billion in market value as the truth about Apple’s changes came to light. However, US District Judge Yvonne Gonzalez Rogers ruled that Meta’s eventual admission of a $10 billion financial hit in 2022 due to Apple’s policy didn’t prove that earlier disclosures were misleading or fraudulent.
In addition to the privacy claims, the lawsuit also alleged Meta had concealed former COO Sheryl Sandberg’s use of company resources for personal projects, including her wedding and book. The judge rejected these accusations, noting they were based on unverified media reports. Claims that Meta’s transition to Reels, a short-form video format inspired by TikTok, negatively impacted the company’s financial performance were also dismissed for lack of evidence.
Judge Rogers’ ruling effectively closes the case, dismissing it with prejudice, meaning it cannot be refiled. Meta and its top executives, including CEO Mark Zuckerberg and CFO Susan Li, have denied the allegations throughout the legal battle. Meta and the plaintiffs’ lawyers have not commented on the court’s decision.
