Judge allows FTC antitrust case against Amazon to proceed

A US District judge has allowed the Federal Trade Commission’s antitrust case against Amazon to proceed, although some claims made by state attorneys general from New Jersey, Pennsylvania, Maryland, and Oklahoma were dismissed. The FTC accuses Amazon of using anti-competitive tactics to dominate the online retail market, including an algorithm that allegedly inflated prices for US households by over $1 billion before it was discontinued in 2019.

Amazon had sought to dismiss the case, arguing that the FTC had not proven harm to consumers. However, the judge ruled that it’s too early to consider Amazon’s defense that its practices benefited competition. The case will continue, keeping the spotlight on Amazon’s business practices.

US House committee investigates FCC’s withdrawal of broadband subsidies from Starlink

A US House committee revealed on Monday that it is investigating the Federal Communications Commission’s (FCC) decision to deny SpaceX’s satellite internet division, Starlink, $885.5 million in rural broadband subsidies. The FCC had reaffirmed in December that the denial stemmed from Starlink’s failure to meet essential program requirements and its inability to demonstrate that it could deliver the promised services, following SpaceX’s challenge to the decision made in 2022.

House Oversight Committee Chair James Comer, a Republican, has requested the FCC provide relevant documents by October 21 to ensure that the regulatory process was followed properly and not influenced by political motives. The FCC acknowledged receipt of the letter and will respond accordingly.

In December 2020, the FCC initially awarded $9.2 billion to more than 300 bidders for high-speed broadband deployment, with Starlink securing $885.5 million in a 2020 auction aimed at serving rural areas. However, in August 2022, the FCC revoked this funding, citing speed-test data that showed Starlink struggled to meet the program’s basic requirements, despite its commitments to provide high-speed service to 642,000 rural homes and businesses in 35 states.

Musk has strongly criticised the FCC’s ruling, calling it “illegal” and claiming that the funding could have saved lives during Hurricane Helene in North Carolina. FCC Chair Jessica Rosenworcel stated that Starlink’s performance data confirmed the agency’s findings about its uplink and downlink speed issues, adding that the proposal required subscribers to purchase a $600 dish to start service. Two Republican commissioners dissented, arguing that SpaceX was unfairly held to future performance targets. Rosenworcel has since expressed a desire for increased competition in the satellite internet market, emphasising the need to welcome additional companies to promote innovation and reduce monopolistic control.

Court ruling forces Google to allow rival app stores

A US judge has ruled that Google must make significant changes to its Play Store, allowing Android users to access third-party app stores and payment methods for three years. The ruling comes after a jury sided with ‘Fortnite’ creator Epic Games, which accused Google of monopolising app access and in-app payments on Android devices.

The order, issued by Judge James Donato, prevents Google from blocking alternative payment options or pre-installing its app store through deals with device makers. The decision is set to take effect on 1 November 2024, giving Google time to comply. However, Google plans to appeal the ruling, arguing that it could harm consumers, developers, and device makers.

Epic Games CEO Tim Sweeney called the decision “big news” and said it could lead to a more competitive Android ecosystem by 2025. Meanwhile, Google is also facing antitrust cases over its dominance in web search and ad technology.

X’s return to Brazil postponed as payment of fines remains unresolved

Brazil’s Supreme Court has delayed its decision on whether social media platform X can resume operations in the country due to issues regarding the payment of fines. Lawyers representing X argued that the company had made the payments correctly, but the court found that they did not pay to the proper bank, which remains the only unresolved issue for the platform’s reinstatement.

Since late August, X has faced suspension in Brazil, a significant market, following its failure to comply with court orders regarding hate speech moderation and the requirement to appoint a legal representative in the country. Earlier on Friday, X, owned by Elon Musk, submitted a new request to restore its services, claiming to have settled all outstanding fines.

In response to the request, Justice Alexandre de Moraes insisted that the payments must be transferred to the appropriate bank. He also noted that the prosecutor general of Brazil would provide input on X’s recent appeals once the fine payment situation is clarified.

After reversing its earlier stance and complying with court directives in recent weeks, including blocking specific accounts under investigation, X sought the court’s approval to resume services. However, de Moraes previously stated that the company needed to pay just over $5 million in fines before the suspension could be lifted.

Atos aims for strategic government deal

Atos, the French IT firm, is pushing forward with efforts to sell its most strategic assets, including cybersecurity and supercomputing units, to the French government. The company, which supports the country’s military and secret services, announced that despite the expiration of an initial offer, discussions remain open, with a new proposal already submitted.

The company has been undergoing financial restructuring, having secured an agreement with key creditors earlier this year. The government in France, keen to retain control over critical technology, intends to continue negotiations and has promised a revised acquisition plan soon.

Atos shares have experienced a severe decline, falling 0.6% in early Paris trading and down 90% overall this year. Concerns over the country’s budget deficit, expected to reach 6.1% of GDP this year, may affect the government’s ability to mobilise the necessary funds for the acquisition.

The strategic assets at stake include Atos’ Advanced Computing, Critical Systems, and Cyber Products units. These divisions employ around 4,000 people and generate nearly €900 million in annual revenue. Any deal would require approval from the Nanterre Commercial Court, with a decision expected later this month.

Ireland launches EU-wide investigation into Ryanair’s use of facial recognition technology

Ireland’s Data Protection Commissioner (DPC) launched an EU-wide investigation into Ryanair’s use of facial recognition technology for customers booking through some third-party websites. The probe aims to determine if this practice violates EU privacy laws. The DPC’s action follows complaints from Ryanair customers across Europe regarding the airline’s additional verification process for bookings made through online travel agents (OTAs) rather than directly with Ryanair.

Ryanair, the largest airline in Europe by passenger numbers, welcomes the investigation, emphasising that the verification process protects customers from unverified online travel agents (OTAs) that may provide inaccurate contact or payment information. According to the airline’s website, these additional identity checks are part of its safety and security protocols. Passengers who wish to avoid facial recognition can either arrive at the airport two hours before departure or undergo a manual verification process, which may take up to seven days to complete.

Ryanair stated that verification is not required for bookings made directly on its website, mobile app, or through OTAs that have entered into commercial agreements with the airline. Since the beginning of the year, Ryanair has established 14 such partnerships. The airline asserts that both its biometric and manual verification methods are fully compliant with the EU’s General Data Protection Regulation (GDPR).

FERMA calls on European institutions to simplify cyber reporting obligations

The Federation of European Risk Management Associations (FERMA) has called on European institutions to simplify cyber reporting requirements and consider the insurance implications of cyber legislation. This appeal follows the release of the Cyber Reporting Stack report, developed in collaboration with WTW, which offers risk managers vital guidance on navigating the landscape of cyber policy and reporting obligations.

The report outlines current and forthcoming regulations, along with incident reporting requirements, featuring the General Data Protection Regulation (GDPR), Network and Information Security (NIS) 2 Directive, the Digital Operational Resilience Act (DORA), and the Cyber Resilience Act (CRA).

Charlotte Hedemark, President of FERMA, highlighted the growing burden of cyber reporting and added that FERMA believes companies need a streamlined and consistent set of requirements for reporting cyber incidents. The report recommends establishing a ‘single point of entry’ for cyber incident notifications and guides EU member states to streamline their processes and participant involvement.

Philippe Cotelle, Chair of FERMA’s Digital Committee, emphasised there currently needs to be regulations specifying the necessary risk management measures or considering their insurance implications.

Media company faces 30-day ban in Tanzania for ‘restricted content’

Tanzania’s communications regulator has suspended the online platforms of Mwananchi Communications Ltd for 30 days, accusing the company of publishing content that damaged the nation’s image. The Tanzania Communications Regulatory Authority (TCRA) cited violations of the country’s Online Content Regulations 2020 and claimed the media company had shared material that disrupted national unity, peace, and harmony. However, the TCRA did not reveal the specific nature of the content.

Mwananchi Communications posted an animated video on its X and Instagram platforms on 1 October, which depicted people expressing concerns about missing or murdered loved ones. The company later deleted the video and apologised, stating that the content was misinterpreted. Opposition party ACT-Wazalendo criticised the suspension, arguing that the government was silencing media outlets that expose the country’s real issues, especially following recent cases of violence against political figures.

This action has raised concerns over press freedom in Tanzania, with critics pointing out a recent shift in the government’s approach. While President Samia Suluhu Hassan has been praised for easing restrictions on political rallies and media, recent incidents such as protest bans and the arrests of journalists have sparked fears of a rollback in democratic freedoms. Mwananchi Communications has stated that it will comply with the suspension order.

X must pay fine over child protection dispute

An Australian court has upheld a ruling requiring Elon Musk’s X, previously known as Twitter, to pay a $418,000 fine. The fine was issued for failing to cooperate with a request from the eSafety Commissioner regarding anti-child-abuse measures on the platform.

X had contested the penalty, arguing that it was no longer bound by regulatory obligations following a corporate restructure under Musk’s ownership. However, the court ruled that the platform was still required to respond to the request made by the Australian internet safety regulator.

The eSafety Commissioner stated that accepting X’s argument could have set a worrying precedent for foreign companies merging to avoid regulatory responsibilities. Civil proceedings against X have also begun due to its noncompliance.

Musk’s platform has clashed with authorities in Australia before, notably in a case where X refused to remove content showing a stabbing incident. The company claimed that one country should not dictate global online content.

US SEC appeals ruling on XRP status

The US Securities and Exchange Commission (SEC) has announced its intention to appeal a recent court ruling that limits its authority to oversee cryptocurrency markets. This decision stems from a July 2023 ruling by US District Judge Analisa Torres, which concluded that the XRP token sold by Ripple Labs on public exchanges does not qualify as a security. As a result, the approximately $757 million in sales of XRP would not fall under the protective regulations enforced by the SEC.

Ripple Labs, which could also appeal aspects of the ruling, has expressed its frustration with the SEC’s move. CEO Brad Garlinghouse labelled the decision to appeal as ‘misguided’ and ‘infuriating,’ yet he remained confident, stating that XRP’s status as a non-security is currently upheld in law. This ongoing legal battle could have significant implications for the broader regulatory landscape surrounding cryptocurrencies in the US.