Jurisdiction

Apple faces $1.8 billion UK lawsuit

Apple is defending itself against a $1.8 billion mass lawsuit in a London tribunal, accused of abusing its market dominance by charging app developers a 30% commission through its App Store. The lawsuit, brought on behalf of around 20 million UK iPhone and iPad users, claims the fees have unfairly inflated app costs for consumers.

Rachael Kent, the academic leading the case, argues Apple has leveraged its monopoly to exclude competition and impose restrictive terms on app developers. Apple’s lawyers counter that the fees reflect the benefits of its iOS ecosystem, emphasising its focus on security, privacy, and innovation. They also noted that most developers are exempt from paying commissions.

This trial marks the UK’s first class-action-style lawsuit against a tech giant under its evolving legal framework. Similar cases against Google, Meta, and Amazon are in progress, including a $1.1 billion lawsuit against Google over Play Store fees scheduled for later this year. The trial is expected to last seven weeks, with testimony from Apple’s CFO anticipated soon.

EU may expand probe into Elon Musk’s social network X

The European Union is considering expanding its investigation into Elon Musk’s social media platform X over potential content moderation breaches. The probe, launched in late 2023 under the Digital Services Act (DSA), relates partly to posts following Hamas’ attacks on Israel.

EU Commission Vice President Henna Virkkunen indicated the bloc is evaluating whether the investigation’s current scope is sufficient. Concerns have grown following Musk’s endorsement of far-right figures, including Germany’s Alternative for Germany candidate Alice Weidel, ahead of the country’s February elections.

The commission is also examining whether a live-streamed discussion between Musk and Weidel on X was unfairly promoted, potentially violating DSA rules by giving political advantage. X and the European Commission have yet to comment on the matter.

In July, EU regulators concluded that X breached the DSA, citing deceptive practices related to the platform’s blue checkmark system. Musk responded by welcoming a public legal confrontation to reveal the facts to European citizens.

UK launches probe into Google’s search practices

Britain’s antitrust regulator, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search operations to assess their impact on consumers, businesses, and competition. With Google handling 90% of UK online searches and supporting over 200,000 businesses through advertising, the CMA aims to ensure fair competition and innovation in search services, said CMA chief Sarah Cardell.

The probe will evaluate whether Google’s dominant position restricts market entry and innovation, as well as whether it provides preferential treatment to its own services. The CMA will also investigate the company’s extensive collection and use of consumer data, including its role in AI services. The findings, expected within nine months, could lead to measures such as requiring Google to share data with rivals or giving publishers more control over their content.

Google has defended its role, stating that its search services foster innovation and help UK businesses grow. The company pledged to work constructively with the CMA to create rules that benefit both businesses and users. The investigation follows similar scrutiny in the US, where prosecutors have pushed for major reforms to curb Google’s dominance in online search.

US lawmakers push to delay TikTok ban amid looming deadline

Two Democratic lawmakers have called on President Joe Biden and Congress to extend the looming 19 January deadline for ByteDance, TikTok’s China-based parent company, to sell its US operations or face a nationwide ban. The Supreme Court recently heard arguments from ByteDance’s lawyer, Noel Francisco, who argued that a sale by next week’s deadline would be impossible and that a ban would effectively shut down TikTok, which has 170 million American users.

Senator Edward Markey announced plans to propose a 270-day extension to the deadline, warning of the ban’s cultural and economic consequences. Markey emphasised that TikTok is a vital platform for social and economic interactions, stating, ‘We cannot allow millions to be silenced.’ Representative Ro Khanna echoed these concerns, urging Biden and President-elect Donald Trump to delay the ban to safeguard free speech and livelihoods tied to the app.

Without intervention, TikTok could face immediate restrictions, including bans on new downloads from app stores and eventual service degradation. While the White House has not commented, Biden retains the authority to extend the deadline if ByteDance demonstrates substantial progress toward divestiture—though meeting that standard appears unlikely.

TikTok’s future in Elon Musk’s hands?

Chinese officials are reportedly considering selling TikTok’s US operations to Elon Musk, the billionaire owner of X (formerly Twitter), if the app cannot avoid a looming US ban. According to a Bloomberg report, this move is being discussed as a contingency, although Beijing prefers TikTok to remain under the control of its parent company, ByteDance.

ByteDance, which partially owns TikTok, is under scrutiny due to its ‘golden share’ arrangement with the Chinese government, a setup some US lawmakers claim gives Beijing influence over the platform. While Chinese officials are exploring options, no consensus has been reached on whether a competitive sale or a government-coordinated arrangement would be the path forward.

One potential scenario would see Musk’s platform, X, taking over TikTok’s US operations and running them jointly. However, whether ByteDance, TikTok, or Musk are actively discussing such a deal is unclear. TikTok has consistently maintained that China’s ‘golden share’ does not affect its global operations outside China, including the US.

The uncertainty comes as the US Supreme Court recently leaned toward upholding a law that could either force TikTok’s sale or ban it entirely in the US by 19 January, citing national security concerns over China’s access to user data.

TikTok and Musk have declined to comment on the matter, with a TikTok spokesperson dismissing the reports as ‘pure fiction.’

Meanwhile, Beijing’s deliberations suggest that the app’s future may slip out of ByteDance’s control as concerns over data sovereignty and geopolitical tensions intensify.

Microsoft sues hackers over AI security breach

Microsoft has taken legal action against a group accused of bypassing security measures in its Azure OpenAI Service. A lawsuit filed in December alleges that the unnamed defendants stole customer API keys to gain unauthorised access and generate content that violated Microsoft’s policies. The company claims the group used stolen credentials to develop hacking tools, including software named de3u, which allowed users to exploit OpenAI’s DALL-E image generator while evading content moderation filters.

An investigation found that the stolen API keys were used to operate an illicit hacking service. Microsoft alleges the group engaged in systematic credential theft, using custom-built software to process and route unauthorised requests through its cloud AI platform. The company has also taken steps to dismantle the group’s technical infrastructure, including seizing a website linked to the operation.

Court-authorised actions have enabled Microsoft to gather further evidence and disrupt the scheme. The company says additional security measures have been implemented to prevent similar breaches, though specific details were not disclosed. While the case unfolds, Microsoft remains focused on strengthening its AI security protocols.

Infosys files counterclaim against Cognizant in Texas court

Infosys has filed a counterclaim against Cognizant in a Texas federal court, accusing the US-based technology firm of anti-competitive behaviour. The Indian company alleges that Cognizant included restrictive clauses in client contracts, preventing them from working with rival firms and withholding necessary software training.

The Bengaluru-based software giant also claims Cognizant engaged in targeted poaching of its senior executives. The hiring of former Infosys president S Ravi Kumar as Cognizant’s CEO in 2023 allegedly delayed the development of Infosys’ Helix software product.

Cognizant denied the allegations, stating it supports fair competition but accused Infosys of improperly using its intellectual property. The counterclaim follows a 2023 lawsuit by Cognizant’s subsidiary TriZetto, which accused Infosys of stealing trade secrets related to healthcare insurance software.

Infosys is seeking damages, including legal fees, but did not disclose the amount. The case is being heard in the US District Court for the Northern District of Texas.

Supreme Court weighs TikTok ban amid national security concerns

The US Supreme Court on Friday appeared inclined to uphold a law requiring a sale or ban of TikTok in the United States by January 19, citing national security risks tied to its Chinese parent company, ByteDance. Justices questioned TikTok’s potential role in enabling the Chinese government to collect data on its 170 million American users and influence public opinion covertly. Chief Justice John Roberts and others expressed concerns about China’s potential to exploit the platform, while also probing implications for free speech protections under the First Amendment.

The law, passed with bipartisan support and signed by outgoing President Joe Biden, has been challenged by TikTok, ByteDance, and app users who argue it infringes on free speech. TikTok’s lawyer, Noel Francisco, warned that without a resolution or extension by President-elect Donald Trump, the platform would likely shut down on January 19. Francisco emphasised TikTok’s role as a key platform for expression and called for at least a temporary halt to the law.

Liberal and conservative justices alike acknowledged the tension between national security and constitutional rights. Justice Elena Kagan raised historical parallels to Cold War-era restrictions, while Justice Brett Kavanaugh highlighted the long-term risks of data collection. Solicitor General Elizabeth Prelogar, representing the Biden administration, argued that TikTok’s foreign ownership poses a grave threat, enabling covert manipulation and espionage. She defended Congress’s right to act in the interest of national security.

With global trade tensions and fears of digital surveillance mounting, the Supreme Court’s decision will have wide-ranging implications for technology, free speech, and US-China relations. The court is now considering whether to grant a temporary stay, providing Trump’s incoming administration an opportunity to address the issue politically.

Meta accused of using pirated books for AI

A group of authors, including Ta-Nehisi Coates and Sarah Silverman, has accused Meta Platforms of using pirated books to train its AI systems with CEO Mark Zuckerberg’s approval. Newly disclosed court documents filed in California allege that Meta knowingly relied on the LibGen dataset, which contains millions of pirated works, to develop its large language model, Llama.

The lawsuit, initially filed in 2023, claims Meta infringed on copyright by using the authors’ works without permission. The authors argue that internal Meta communications reveal concerns within the company about the dataset’s legality, which were ultimately overruled. Meta has not yet responded to the latest allegations.

The case is one of several challenging the use of copyrighted materials to train AI systems. While defendants in similar lawsuits have cited fair use, the authors contend that newly uncovered evidence strengthens their claims. They have requested permission to file an updated complaint, adding computer fraud allegations and revisiting dismissed claims related to copyright management information.

US District Judge Vince Chhabria has allowed the authors to file an amended complaint but expressed doubts about the validity of some new claims. The outcome of the case could have broader implications for how AI companies utilise copyrighted content in training data.

Brazil’s Lula criticises Meta’s move to end US fact-checking program

Brazilian President Luiz Inácio Lula da Silva has condemned Meta’s decision to discontinue its fact-checking program in the United States, calling it a grave issue. Speaking in Brasília on Thursday, Lula emphasised the need for accountability in digital communication, equating its responsibilities to those of traditional media. He announced plans to meet with government officials to discuss the matter.

Meta’s recent decision has prompted Brazilian prosecutors to seek clarification on whether the changes will affect the country. The company has been given 30 days to respond as part of an ongoing investigation into how social media platforms address misinformation and online violence in Brazil.

Justice Alexandre de Moraes of Brazil’s Supreme Court, known for his strict oversight of tech companies, reiterated that social media firms must adhere to Brazilian laws to continue operating in the country. Last year, he temporarily suspended X (formerly Twitter) over non-compliance with local regulations.

Meta has so far declined to comment on the matter in Brazil, fueling concerns over its commitment to tackling misinformation globally. The outcome of Brazil’s inquiry could have broader implications for how tech firms balance local laws with global policy changes.