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Malaysia under scrutiny over semiconductor exports to China

Malaysia plans to tighten regulations on semiconductor shipments following US concerns over the potential transfer of high-end Nvidia chips to China.

Trade Minister Zafrul Aziz stated that the United States has urged Malaysia to closely monitor shipments, ensuring that advanced AI chips do not end up in unauthorised locations.

The move comes amid increasing global scrutiny over AI-related technology exports.

Authorities in Malaysia are also investigating whether local laws were breached in a case involving servers linked to a Singapore fraud investigation.

The case involves transactions worth $390 million, and reports suggest that some servers may have contained Nvidia chips subject to US export controls. Singapore media have linked the matter to potential transfers to Chinese AI company DeepSeek.

The United States has been tightening restrictions on advanced semiconductor exports to China, particularly chips crucial to AI development.

Malaysia’s role as a key semiconductor hub has drawn greater attention, with US officials pushing for stricter oversight.

The government is expected to introduce measures to ensure compliance with international regulations while maintaining its position in the global chip supply chain.

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Meta agrees to halt targeted ads in landmark UK privacy case

Meta, the owner of Facebook and Instagram, has agreed to stop targeting a UK citizen with personalised adverts as part of a settlement in a landmark privacy case.

The case, which avoided a high court trial, was brought by human rights campaigner Tanya O’Carroll in 2022, who claimed Meta had violated UK data laws by processing her personal data for targeted advertising without her consent.

O’Carroll’s case received support from the UK’s data watchdog, the Information Commissioner’s Office (ICO), which stated that users have the right to opt out of targeted ads.

The settlement has been hailed as a victory for O’Carroll, with potential implications for millions of social media users in the UK. Meta, however, disagreed with the claims. Instead of this, the company was considering introducing a subscription model in the UK for users who want an advert-free version of its platforms.

The ICO’s stance in favour of privacy rights could prompt similar lawsuits in the future, as users are increasingly demanding control over how their data is used online.

O’Carroll argued that the case demonstrated the growing desire for more control over surveillance advertising and said that the ICO’s support could encourage more people to object to targeted ads.

Meta, which generates most of its revenue from advertising, emphasised that it took its privacy obligations seriously and was exploring the option of a paid, ad-free service for UK users.

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MetaAI rolls out in Europe after regulatory hurdles

MetaAI, Meta’s AI chat function, is set to launch across Europe after delays caused by regulatory scrutiny regarding the use of personal data to train its models.

The European Commission is reviewing a risk assessment from Meta to ensure that the new feature complies with the EU’s Digital Services Act (DSA). However, this regulation mandates companies to submit risk assessments in advance of deploying new functions.

MetaAI was first launched in the US in September 2023, followed by India in June 2024, and the UK in October.

However, its European rollout was delayed last summer after the Irish Data Protection Commission raised concerns about using data from Facebook and Instagram users for AI training.

Meta faced criticism over Europe’s regulatory approach, with company officials, including CEO Mark Zuckerberg, expressing frustration with the delays.

Despite the regulatory hurdles, Meta is now moving forward with its plans to bring MetaAI to the EU, with the company noting that the process has taken longer than expected due to Europe’s complex regulatory landscape.

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Whistle-blower claims Meta is hindering legislative engagement

Former Facebook executive turned whistle-blower Sarah Wynn-Williams says Meta is preventing her from speaking to lawmakers about her experiences at the company following the release of her memoir Careless People. Meta filed for emergency arbitration the day her book was published, claiming it violated a non-disparagement agreement she signed upon leaving.

An arbitrator then temporarily barred her from promoting the book or making any critical remarks about Meta. As a result, Wynn-Williams says she cannot respond to requests from US, UK, and the EU lawmakers who want to speak with her about serious public interest issues raised in her memoir.

These include Meta’s alleged ties with the Chinese government and the platform’s impact on teenage girls. Her lawyers argue the arbitration order unfairly blocks her from contributing to ongoing investigations and legislative inquiries.

Meta maintains it does not intend to interfere with Wynn-Williams’ legal rights and insists the claims in her book are outdated or false. The company also points out that she can still file complaints with government agencies.

Wynn-Williams has filed whistle-blower complaints with the SEC and the Department of Justice. Her memoir, which describes internal controversies at Meta — including sexual harassment claims and the company’s ambitions in China — debuted on the New York Times best-seller list.

Despite Meta’s legal pushback, her legal team argues that silencing her voice is a disservice to the public and lawmakers working to address the social media giant’s influence and accountability.

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US judiciary faces pressure as Trump challenges court rulings

Donald Trump has called on the Supreme Court to restrict the power of federal judges to issue nationwide injunctions that block his administration’s policies.

The appeal follows legal challenges to several of his initiatives, including efforts to limit automatic birthright citizenship. In a social media post, Trump warned that if the court did not act, the United States would face serious consequences.

The Justice Department has asked the Supreme Court to narrow three nationwide injunctions that have halted Trump’s birthright citizenship order.

Chief Justice John Roberts recently criticised Trump for calling for the impeachment of a federal judge who ruled against a policy involving deportation flights to Venezuela. Roberts stressed that judicial decisions should be challenged through appeals rather than political intervention.

Nationwide injunctions have historically been used against both Republican and Democratic administrations, with courts previously blocking major policies under President Joe Biden.

The legal battle highlights growing tensions between the White House and the judiciary, as Trump’s sweeping executive actions continue to face significant legal obstacles.

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US judge says Social Security unlawfully shared data with Musk’s aides

A federal judge has ruled that the Social Security Administration (SSA) likely violated privacy laws by granting Elon Musk’s Department of Government Efficiency (DOGE) unrestricted access to millions of Americans’ personal data.

The ruling halts further data sharing and requires DOGE to delete unlawfully accessed records. United States District Judge Ellen Lipton Hollander stated that while tackling fraud is important, government agencies must not ignore privacy laws to achieve their goals.

The case has drawn attention to the extent of DOGE’s access to sensitive government databases, including Numident, which contains detailed personal information on Social Security applicants.

The SSA’s leadership allowed DOGE staffers to review vast amounts of data in an effort to identify fraudulent payments. Critics, including advocacy groups and labour unions, argue that the process lacked proper oversight and risked compromising individuals’ privacy.

The ruling marks a major legal setback for DOGE, which has been expanding its influence across multiple federal agencies. The White House condemned the decision, calling it judicial overreach, while SSA officials indicated they would comply with the order.

The controversy highlights growing concerns over government data security and the limits of executive power in managing public records.

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Google and Apple risk fines under EU’s Digital Markets Act

Google has been charged with two violations of the EU’s Digital Markets Act (DMA), while Apple has been ordered to allow greater interoperability with rival devices.

The European Commission accused Google of restricting app developers from promoting external offers outside its Play Store and favouring its own services, such as Google Flights, over competitors in search results. If found guilty, the company could face fines of up to 10% of its global annual revenue.

The Commission also directed Apple to make its iPhones and iPads more accessible to rival smartphone and accessory makers. Additionally, Apple must respond to app developers’ requests for interoperability with its systems within a set timeframe.

Both companies pushed back against the EU’s findings, with Google arguing that compliance could harm consumers and businesses, while Apple claimed the rules would slow innovation and unfairly benefit competitors.

Regulators have intensified their crackdown on Big Tech despite warnings from the United States government against targeting American firms.

Google has already been fined over €8 billion for previous antitrust violations in Europe, and failure to comply with the latest orders could lead to further penalties for both tech giants.

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OpenAI and Google face lawsuits while advocating for AI copyright exceptions

OpenAI and Google have urged the US government to allow AI models to be trained on copyrighted material under fair use.

The companies submitted feedback to the White House’s ‘AI Action Plan,’ arguing that restrictions could slow AI progress and give countries like China a competitive edge. Google stressed the importance of copyright and privacy exceptions, stating that text and data mining provisions are critical for innovation.

Anthropic also responded to the White House’s request but focused more on AI risks to national security and infrastructure rather than copyright concerns.

Meanwhile, OpenAI and Google are facing multiple lawsuits from news organisations and content creators, including Sarah Silverman and George R.R. Martin, who allege their works were used without permission for AI training.

Other companies, including Apple and Nvidia, have also been accused of improperly using copyrighted material, such as YouTube subtitles, to train AI models.

As legal challenges continue, major tech firms remain committed to pushing for regulations that support AI development while navigating the complexities of intellectual property rights.

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Amazon considers further appeal after losing GDPR case

Amazon has lost its appeal against a €746 million fine imposed by Luxembourg’s data protection regulator for breaching EU privacy laws.

The country’s administrative court upheld the penalty in a ruling on 18 March, siding with the National Commission for Data Protection (CNPD), which found Amazon had unlawfully processed personal data under the General Data Protection Regulation (GDPR).

The fine remains the largest issued under the EU privacy rules.

The CNPD also ordered Amazon to implement corrective measures, although enforcement will be suspended during the appeal period.

Amazon criticised the decision, arguing the fine was based on subjective legal interpretations without prior guidance from regulators. The company confirmed it is considering further legal action.

Europe has taken a strict stance on data privacy violations, with GDPR setting a global benchmark for consumer protections.

The ruling against Amazon reinforces the EU’s commitment to holding major tech companies accountable for their handling of personal data.

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RFE/RL sues Trump administration over grant cuts

Radio Free Europe/Radio Liberty (RFE/RL), the US-funded news outlet established during the Cold War to reach people under Communist regimes, filed a lawsuit against President Donald Trump’s administration on Tuesday.

The lawsuit aims to block the termination of its federal grant, which was recently cut by the US Agency for Global Media (USAGM).

The cuts affect not only RFE/RL, which broadcasts to Eastern Europe, Russia, and Ukraine, but also Radio Free Asia, which serves China and North Korea.

The decision to cut funding has been widely criticized by press freedom advocates and human rights organizations. Additionally, over 1,300 employees of Voice of America were placed on leave after Trump ordered cuts across USAGM and several other federal agencies.

In its lawsuit, RFE/RL argued that terminating the grant violates federal laws, including the US Constitution, which grants Congress the exclusive authority over federal spending.

RFE/RL President and CEO Stephen Capus called the move a dangerous step towards ceding influence to adversaries’ propaganda and censorship. The case was filed in US District Court for the District of Columbia.

While the Trump administration justified the cuts as part of its broader cost-reduction efforts, the action has drawn backlash from those who view it as an attack on free speech and independent journalism.

For more information on these topics, visit diplomacy.edu.