DeepSeek under scrutiny by European regulators

European regulators have raised concerns about DeepSeek, a Chinese artificial intelligence startup, signalling potential further actions over its data practices. The European Data Protection Board (EDPB) highlighted the issue following Italy’s decision to block DeepSeek’s chatbot due to insufficient transparency about personal data usage.

Regulators in countries like France, the Netherlands, and Belgium have also questioned the company’s data collection methods.

During a monthly meeting, the EDPB emphasised the growing need for coordinated responses to address urgent data protection issues. A taskforce initially focused on OpenAI’s ChatGPT has now expanded to include DeepSeek.

The move reflects the increasing regulatory attention on AI systems and their impact on citizens’ privacy rights across Europe.

The EDPB spokesperson confirmed the creation of a quick response team to support national authorities in handling sensitive matters. These efforts are part of Europe’s commitment to strict enforcement of its General Data Protection Regulation (GDPR), recognised as the world’s most robust privacy law.

DeepSeek’s rise in popularity has drawn intense scrutiny, underlining the EU’s proactive stance in safeguarding privacy in the evolving AI landscape.

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Europol arrests four Russians in ransomware crackdown

Authorities have arrested four Russian nationals suspected of deploying Phobos ransomware to extort payments from victims across Europe and beyond. Europol announced that law enforcement agencies from 14 countries worked together to dismantle the network, taking down 27 servers linked to the cybercriminals. The individuals arrested were reportedly leaders of the 8Base ransomware group, a key player in distributing Phobos malware.

The operation follows a series of recent arrests targeting Phobos-related cybercrime. In June 2024, a key administrator of the ransomware was apprehended in South Korea and later extradited to the United States, while another major affiliate was arrested in Italy last year. Authorities have since issued warnings to over 400 companies worldwide about imminent cyberattacks.

Phobos ransomware has been particularly damaging to small and medium-sized businesses, which often lack strong cybersecurity protections. Europol’s latest Russian crackdown is a significant step in weakening the ransomware network and preventing further cyber extortion efforts.

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LVMH media unit drops lawsuit against Musk’s X

Les Echos-Le Parisien, owned by LVMH, has opted out of a lawsuit involving French media and Elon Musk’s platform X, according to sources and court officials. The case sought to compel X to compensate publishers for content under EU copyright rules.

The lawsuit, initially backed by Les Echos-Le Parisien, Le Monde, and Le Figaro, aimed to enforce compliance with legislation ensuring fair compensation for digital use of journalistic content. LVMH’s decision to withdraw from the legal action was reportedly communicated to executives from other media groups, though the rationale remains unclear.

Despite this, Le Monde and Le Figaro have filed a joint case to pursue unpaid compensation. Les Echos-Le Parisien previously argued that platforms like X must adhere to EU copyright laws to protect the future of quality journalism.

LVMH, which owns various French media outlets, has previously challenged tech giants like Google and Meta on similar grounds. While declining to comment, LVMH continues to expand its media influence, recently acquiring Paris Match and a French radio station.

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French antitrust agency looks into Microsoft’s Bing deals

France‘s antitrust agency has launched an investigation into Microsoft over concerns that the company may be degrading search results for smaller rivals using Bing technology in their search-engine products. Microsoft has confirmed its full cooperation with the French regulator, the Autorité de la concurrence, but has not commented further. Although Microsoft does not dominate the general search market, it holds a significant share in the search-engine syndication sector.

The investigation, which was first reported by Bloomberg, could lead to formal charges and a potential fine for the US tech giant if the regulator determines that Microsoft’s actions are anti-competitive. The French competition authority has yet to provide any additional details about the probe. The case could have broader implications for the way major tech firms, including Microsoft, operate in the digital advertising and search-engine markets, potentially influencing how they collaborate with smaller companies.

If the investigation results in a fine or any form of penalty, it would further highlight the ongoing scrutiny of the practices of big tech companies in Europe. With regulators across the continent taking a closer look at the competitive dynamics of the tech sector, the outcome of this case could set a precedent for future antitrust actions within the industry.

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Microsoft offers price change to avoid EU antitrust fine

Microsoft has proposed increasing the price difference between its Office product with the Teams app and the version without it, to avoid a potential EU antitrust fine. This comes after complaints from rivals like Salesforce-owned Slack and German competitor alfaview regarding Microsoft’s practice of bundling Teams with Office. Since Teams became a part of Office 365 in 2017, it gained widespread use during the pandemic, largely due to its video conferencing capabilities.

To address concerns, Microsoft unbundled Teams from Office in 2023, offering Office without Teams for €2 less and a standalone Teams subscription for €5 per month. The European Commission is currently gathering feedback from companies, with a decision on whether to conduct a formal market test expected soon. As part of its offer, Microsoft has also proposed better interoperability terms to make it easier for competitors to challenge its products.

The EU has previously fined Microsoft €2.2 billion for similar antitrust issues in the past. If the Commission accepts Microsoft’s proposal without issuing a fine or finding wrongdoing, it would likely allow the EU to focus resources on ongoing investigations into other tech giants like Apple and Google.

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ByteDance faces pressure as US weighs TikTok’s future

Elon Musk has confirmed he has no intention of purchasing TikTok, despite speculation and suggestions from former US President Donald Trump.

Speaking at a summit hosted by The WELT Group, Musk stated he had not made a bid for the app and had no plans for its future. He also noted that he does not use TikTok personally and is unfamiliar with its format.

The billionaire emphasised that acquiring companies is rare for him, with his high-profile purchase of Twitter, now X, being an exception. He reiterated his preference for building businesses from the ground up rather than taking over existing ones.

ByteDance, TikTok’s Chinese parent company, has been under pressure to sell its US assets due to concerns about data security and potential government influence.

Apple and Google have yet to reinstate TikTok in their app stores since new US legislation took effect. In response, TikTok has enabled Android users to download the app directly from its website.

Trump has suggested that multiple parties are in discussions over the platform’s future, with a final decision expected soon.

ByteDance has consistently denied any plans to sell TikTok, despite mounting political scrutiny. Trump, who once sought to ban the app, has recently expressed support for it, citing its role in his popularity among young voters.

No official response has been provided by ByteDance or TikTok regarding the ongoing situation.

Amazon removes diversity references as companies scale back DEI policies

Amazon has removed references to ‘inclusion and diversity‘ from its latest annual report, signalling a shift away from diversity, equity and inclusion (DEI) initiatives. The change follows an internal memo from December, in which Amazon announced it was winding down certain DEI programmes by the end of 2024. Instead of maintaining separate initiatives, the company plans to integrate DEI efforts into broader corporate processes.

Tech giants such as Meta and Google have also been scaling back diversity programmes, facing pressure from conservative groups threatening legal action. Disney has similarly adjusted its DEI approach, removing mentions of its ‘Reimagine Tomorrow‘ programme while introducing an initiative to hire US military veterans. The trend reflects a broader corporate retreat from diversity-focused policies that gained traction after the 2020 protests against racial injustice.

Political opposition to DEI has grown, with President Donald Trump’s administration vowing to eliminate diversity policies in the private sector. In response, attorneys general from twelve US states, including New York and California, have reaffirmed their commitment to enforcing civil rights protections against workplace discrimination. The debate over DEI’s future remains contentious as businesses and lawmakers continue to clash over its role in corporate America.

Motorola loses appeal over UK emergency services contract

Motorola has been denied permission to appeal against the UK competition regulator’s ruling that it was making excessive profits from its contract to provide communications for Britain’s emergency services. The Court of Appeal unanimously dismissed the company’s application, upholding the Competition and Markets Authority’s (CMA) decision to impose a price cap on Motorola’s Airwave network.

The CMA introduced the cap in July 2023, reducing the cost of the Airwave service to reflect a competitive market, cutting an estimated £200 million in annual charges. Motorola had previously challenged the regulator’s findings at a tribunal but was unsuccessful. CMA Executive Director George Lusty welcomed the court’s decision, stating it ensures fair pricing for emergency services and marks the end of the legal dispute.

A Motorola spokesperson defended the company’s role, emphasising that Airwave remains essential for UK public safety communications. Despite disagreeing with the CMA’s ruling, Motorola said it is focused on continuing to provide high-quality emergency communication services.

UK gambling websites breach data protection laws

Gambling companies are under investigation for covertly sharing visitors’ data with Facebook’s parent company, Meta, without proper consent, breaching data protection laws. A hidden tracking tool embedded in numerous UK gambling websites has been sending data, such as the web pages users visit and the buttons they click, to Meta, which then uses this information to profile individuals as gamblers. This data is then used to target users with gambling-related ads, violating the legal requirement for explicit consent before sharing such information.

Testing of 150 gambling websites revealed that 52 automatically transmitted user data to Meta, including large brands like Hollywoodbets, Sporting Index, and Bet442. This data sharing occurred without users having the opportunity to consent, resulting in targeted ads for gambling websites shortly after visiting these sites. Experts have raised concerns about the industry’s unlawful practices and called for immediate regulatory action.

The Information Commissioner’s Office (ICO) is reviewing the use of tracking tools like Meta Pixel and has warned that enforcement action could be taken, including significant fines. Some gambling companies have updated their websites to prevent automatic data sharing, while others have removed the tracking tool altogether in response to the findings. However, the Gambling Commission has yet to address the issue of third-party profiling used to recruit new customers.

The misuse of data in this way highlights the risks of unregulated marketing, particularly for vulnerable individuals. Data privacy experts have stressed that these practices not only breach privacy laws but could also exacerbate gambling problems by targeting individuals who may already be at risk.

Coinbase faces lawsuit over alleged unregistered securities sales

A United States federal judge has ruled that Coinbase must face a lawsuit from customers accusing the cryptocurrency exchange of illegally selling securities without registering as a broker-dealer. The judge rejected Coinbase’s argument that it did not qualify as a seller under federal securities law, citing claims that customers traded directly with the company rather than with third parties. Allegations under state laws in California, Florida, and New Jersey will also proceed.

The lawsuit, initially dismissed in 2023, was partially revived by an appeals court last year. Customers are seeking unspecified damages, while Coinbase maintains that it does not list or sell securities on its platform. The company remains confident it will prevail in court. Meanwhile, the U6S Securities and Exchange Commission (SEC) has also sued Coinbase, arguing that the exchange allowed trading of unregistered securities.

Coinbase has appealed a separate ruling that could clarify whether digital tokens qualify as investment contracts under US law. The company told the appeals court that a decision in its favour could remove regulatory uncertainty surrounding the cryptocurrency market. The outcome of these legal battles could have significant implications for the broader industry.