Brazil’s Social Development Ministry will soon propose new measures to stop social benefit payments from being used for online gambling. This follows a report showing that 5 million recipients of Bolsa Familia, a cash transfer program, spent 3 billion reais on online betting in August. Bolsa Familia, which provides aid to 21 million families for essentials like food, saw nearly 20% of its monthly budget diverted to gambling, raising concerns about the misuse of these funds.
Social Development Minister Wellington Dias proposed potential solutions, such as banning the use of social benefits for gambling and implementing control mechanisms tied to tax ID numbers. These measures will be submitted to President Luiz Inacio Lula da Silva for approval. Dias stressed that the misuse of Bolsa Familia funds for betting undermines the program’s core goal of supporting low-income families with necessities.
Central Bank Chief Roberto Campos Neto emphasised that the bank’s report was not meant to criticise Bolsa Familia but to serve as a warning. He highlighted that the rapid rise of online gambling among lower-income households could jeopardise their financial stability.
A British man has been arrested and charged by US authorities for hacking into the computers of five companies to illegally obtain information about their expected earnings, resulting in profits of $3.75 million from insider trading. Robert Westbrook, 39, from London, faces multiple charges, including securities fraud, wire fraud, and five counts of computer fraud, with the US Department of Justice seeking his extradition.
Westbrook was arrested this week in the UK and is facing additional civil charges from the US Securities and Exchange Commission (SEC). Although the companies involved were not explicitly named in court documents, financial details indicate that they could include Tupperware, Tutor Perini, Guidewire Software, Murphy USA, and Lumentum Holdings.
Authorities allege that Westbrook was involved in a “hack-to-trade” scheme, gaining access to executives’ email accounts between January 2019 and May 2020. He allegedly utilised nonpublic information to trade stocks and options before at least 14 earnings announcements and even set up automatic forwarding of emails from these executives to his accounts.
Jorge Tenreiro, acting chief of the SEC’s crypto assets and cyber unit, characterised Westbrook’s actions as sophisticated international hacking, involving the use of anonymous email accounts, VPNs, and bitcoin to conceal his activities. Each charge of securities and wire fraud carries a maximum penalty of 20 years in prison, while the computer fraud charges could lead to up to five years each.
Appario, a former top seller on Amazon India, has petitioned a court to dismiss an antitrust investigation that concluded Amazon and several sellers breached local competition laws. The Competition Commission of India (CCI) alleges that Amazon, Walmart’s Flipkart, and certain smartphone brands favoured select sellers and prioritised specific listings. These accusations were based on a 2021 Reuters investigation, which exposed Amazon’s internal practices. Despite the findings, Amazon continues to deny any misconduct.
Appario, which has ceased selling on Amazon, is contesting the CCI’s findings in the Karnataka High Court, asserting that the report implicating it should be “set aside.” This legal action marks the first challenge to the CCI’s ongoing investigation, initiated in 2020, and poses a significant obstacle for Amazon in India, one of its most important markets.
The CCI previously conducted raids on Appario and other sellers during its investigation. Court records indicate that Appario is also challenging a CCI order that requires it to submit financial statements following the investigation. Neither Amazon nor Appario has commented on the ongoing legal proceedings.
Hungary plans to emphasise competition as the primary driver for investment in telecom infrastructure in its upcoming draft of the Council conclusions. This shift reflects a growing reluctance among the EU member states to adopt the European Commission’s deregulation proposals, highlighting the complexities within the telecom sector as member states consider the potential impacts on market dynamics and investment.
Prompted by the Commission’s February white paper advocating for consolidation, Hungary initially aimed to reconcile diverse stakeholder views in its draft. However, it faced criticism for being overly prescriptive, leading to revision plans. Moreover, Hungary is expected to clarify that the review of the EU’s telecom law, particularly the European Electronic Communications Code (EECC), must precede any consideration of transitioning from ex-ante regulation, designed to prevent monopolistic practices, to ex-post regulation, which addresses violations only after they occur.
That clarification highlights the critical need to uphold regulatory safeguards within the telecom sector. Additionally, Hungary is under pressure from fellow member states to ensure that the Commission publishes a new telecom strategy before allocating the EU funds to enhance submarine cable infrastructure’s security and resilience. Such an approach aligns with the broader objective of ensuring that funding mechanisms support robust and secure telecom networks throughout the EU.
Finally, Hungary has set a timeline for revisions, with member states given until 30 September to respond. A revised text is expected on 9 October, before the working group meeting on 15 October. That underscores the urgency of these discussions for the EU telecom policy.
Alphabet, Goldman Sachs, and several other firms have agreed to pay a combined total of $3.8 million in penalties to settle charges from the US Securities and Exchange Commission (SEC) over late filings. This action is part of a wider initiative aimed at companies and executives who failed to timely disclose important information to investors, such as changes in beneficial ownership and insider stock sales.
As part of the settlement, Alphabet will pay $750,000, while Goldman Sachs will contribute $300,000. Additional fines include $375,000 from Bank of Nova Scotia and $130,000 from Bain Capital Credit Member. Other firms, such as Sunbeam Management, TALANTA Investment Group, and Fortress Investment Group, also faced penalties ranging from $40,000 to $225,000.
None of the firms or individuals involved admitted to or denied the SEC’s findings, but they agreed to pay the civil penalties and refrain from any further violations. Additionally, ten individuals were also penalised for late filings, as stated by the SEC.
Google’s online advertising practices are under renewed scrutiny in the United Kingdom, as the Competition and Markets Authority (CMA) raised concerns over the company’s decision to retain third-party cookies in its Chrome browser. In July, Google reversed its plans to remove cookies, which track users across the web, after complaints from advertisers who rely on them to personalise ads. Advertisers feared that without cookies, they would have to depend on Google’s own user data, reducing competition.
To address these concerns, Google stated that Chrome users would be given the option to allow cookies to track them. However, the CMA invited feedback on this change and concluded that competition issues remain, despite Google’s revisions. The watchdog highlighted that Google’s approach could still harm competition in the digital advertising space.
The CMA announced it would seek further changes to Google’s plans to ensure fair competition. If Google does not adequately address the concerns, the CMA may take additional action to protect competition in the online advertising market.
Google has not yet responded to the CMA’s findings. The company’s advertising practices remain under global scrutiny as regulators examine their potential impact on market competition and consumer privacy.
After months of defiance, Elon Musk’s social media platform, X, has told Brazil’s Supreme Court that it has complied with orders to curb the spread of misinformation. The direction shift comes as Musk seeks to lift a ban on the platform following a prolonged battle with the Brazilian judiciary over what he called ‘censorship.’ The court had suspended access to X in late August, leaving Brazilians needing the platform in one of its largest global markets.
X, which boasts 21.5 million users in Brazil, attempted to circumvent the ban by using third-party cloud services, allowing temporary access. However, the effort was short-lived, especially after Moraes threatened heavy fines. In a more conciliatory move, X recently appointed a local legal representative in Brazil, signalling a shift in its approach.
In documents submitted to the court, X confirmed that it had blocked nine accounts linked to a hate speech and misinformation investigation. The action reflects a change in Musk’s strategy, as sources close to him suggest he now plans to comply with local laws while continuing to defend free speech through legal avenues.
Why does it matter?
Musk’s battle with the Brazilian judiciary mirrors similar tensions in countries like Australia and the UK, where governments are working to curb online misinformation. Despite his stance as a free speech advocate, Musk’s recent actions in Brazil indicate a more pragmatic approach to navigating regulatory challenges in key markets.
As X awaits the court’s decision, which could restore access within days, analysts believe that Musk’s surprising backtracking demonstrates a recognition that fighting the law in Brazil could have further damaged his standing in the country. Now, the company appears ready to respect legal boundaries, even if it means fighting battles in the courtroom rather than on the platform.
Italy‘s antitrust agency has launched an investigation into a Dublin-based company that runs Shein’s website and app over potentially deceptive environmental claims. The investigation targets Infinite Styles Services Co. Limited, accusing Shein of using unclear and misleading language to present its products as environmentally sustainable. It specifically questions claims related to Shein’s ‘evoluSHEIN’ collection, which may mislead consumers about the use of eco-friendly fabrics and the recyclability of its clothing.
Shein stated that it is prepared to cooperate with Italian authorities and provide necessary information fully. This investigation is part of a larger European push to combat ‘greenwashing,’ with the EU enforcing new rules that require companies to substantiate their environmental claims with clear evidence. Italy’s antitrust body also highlighted inconsistencies between Shein’s sustainability promises and the rise in greenhouse gas emissions the company reported in 2022 and 2023.
The case reflects a wider trend as European regulators intensify scrutiny of companies making environmental claims. Under Italy’s consumer protection laws, companies found guilty of misleading practices could face fines ranging from 5,000 to 10 million euros.
A federal judge has ruled that New York City’s law requiring food delivery companies to share customer data with restaurants is unconstitutional. The decision, handed down by US District Judge Analisa Torres, found the law violated the First Amendment by regulating commercial speech inappropriately.
The law, introduced in 2021 to support local restaurants recovering from the COVID-19 pandemic, required delivery platforms like DoorDash and UberEats to share customer details. Delivery companies in US argued that the law threatened both customer privacy and their business by allowing restaurants to use the data for their own marketing purposes.
Judge Torres stated that New York City failed to prove the law was necessary and suggested alternative methods to support restaurants, such as letting customers opt-in to share their data or providing financial incentives. City officials are reviewing the ruling, while delivery companies hailed it as a victory for data protection.
The New York City Hospitality Alliance expressed disappointment, claiming the ruling hurts small businesses and calling for the city to appeal the decision.
Societe Generale has partnered with Bitpanda to integrate crypto and stablecoins into the global financial system. The collaboration focuses on the mainstream adoption of Societe Generale-FORGE’s euro-denominated stablecoin, EUR CoinVertible (EURCV). The partnership is seen as a pivotal move towards establishing stablecoins as an essential element in modern finance, according to Jean-Mark Stenger, CEO of Societe Generale-FORGE.
As the Markets in Crypto-Assets (MiCA) bill prepares for full implementation on 30th December, both companies aim to position EURCV as a regulated, reliable digital currency for European users. Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, highlighted that regulated stablecoins will serve as a crucial link between traditional finance and the burgeoning crypto landscape.
Stablecoins play a vital role in facilitating access to digital assets, with the new EURCV set to be listed on the Bitpanda trading platform. With Societe Generale being one of the largest banking groups globally, holding over $1.7 trillion in assets, this partnership marks a significant step towards the evolving relationship between traditional finance and cryptocurrencies.
As the MiCA bill aims to establish a comprehensive regulatory framework for the crypto industry in the European Union, experts acknowledge that its success may depend on overcoming technical complexities and fostering international cooperation.
