Mozilla faces privacy complaint over Firefox tracking

Mozilla has been hit with a privacy complaint by NOYB, an advocacy group, over tracking users of its Firefox browser. NOYB, based in Vienna, claims that Mozilla’s privacy-preserving attribution feature tracks user activity on websites without their explicit consent.

Mozilla responded, stating that its feature aims to improve advertising practices by reducing invasive tracking. While NOYB acknowledges the feature is less invasive, the group argues it still violates European privacy laws by being enabled by default.

Privacy activist Max Schrems’ organisation has criticised Mozilla for not allowing users to opt in. NOYB’s data protection lawyer, Felix Mikolasch, said users should be able to make a choice, and the current system infringes on their rights.

The group is demanding Mozilla inform users, shift to an opt-in system, and delete all unlawfully processed data. NOYB has previously filed similar complaints against other tech giants, including Alphabet’s Chrome browser.

Ellison faces prison for role in FTX collapse

Caroline Ellison, former CEO of Alameda Research, has been sentenced to two years in prison for her involvement in the collapse of the cryptocurrency exchange FTX. The case, one of the largest financial scandals in US history, saw Ellison plead guilty to fraud charges and cooperate extensively with authorities to secure the conviction of FTX founder Sam Bankman-Fried, who received a 25-year prison sentence.

Ellison’s legal team had requested time served and supervised release, emphasising her crucial role in helping federal investigators uncover the misuse of billions in customer funds. However, District Judge Lewis A. Kaplan, while acknowledging her cooperation, ruled that Ellison must still serve time and forfeit around $11 billion.

Her cooperation with prosecutors has been central in exposing the FTX scandal, but the court concluded that her involvement in the mismanagement of funds warranted a prison sentence, drawing attention from legal experts and the broader crypto community.

SEC faces off against Coinbase

In a crucial court case, Coinbase, the largest US cryptocurrency exchange, confronted the Securities and Exchange Commission (SEC) in Philadelphia. The exchange is calling on the SEC to create new regulations for digital assets stemming from a lawsuit over the agency’s failure to address a 2022 petition. The petition aimed to clarify when a digital asset is deemed a security and suggested a new regulatory framework specifically designed for the cryptocurrency sector.

The SEC rejected Coinbase’s request in December 2023, asserting that current regulations are adequate for the cryptocurrency sector. Coinbase’s attorney argued that the SEC’s refusal to clarify registration processes has hindered the exchange’s ability to operate within US laws. In contrast, an SEC lawyer maintained that the agency is not obligated to create new rules, suggesting that businesses like Coinbase must adapt to the existing regulatory framework.

This legal dispute highlights an ongoing tension between the cryptocurrency industry and the SEC, which asserts that many crypto tokens qualify as securities and fall under its jurisdiction. The crypto sector largely views itself as existing in a regulatory grey area, pushing for new legislation to provide more precise guidelines for managing digital assets. This ongoing struggle underscores the need for a cohesive framework that addresses the unique challenges of the rapidly evolving crypto market.

As the appeals court considers both sides, the outcome could have significant implications for how cryptocurrencies are regulated in the United States, potentially shaping the industry’s future.

China plans stricter crypto regulations amid mining dominance

Chinese Bitcoin miners continue to control a significant portion of the global mining network, holding over 55% despite the country’s outright ban on cryptocurrencies. According to Ki Young Ju, CEO of CryptoQuant, while Chinese mining pools dominate the network, US pools gradually gain ground, managing around 40% of the mining power. The US pools primarily serve institutional miners, whereas Chinese pools cater to smaller miners in Asia.

This continued dominance persists despite China’s blanket ban on Bitcoin mining and trading, implemented in 2021. Even with these restrictions, technological advancements and the decentralised nature of cryptocurrencies have allowed mainland users to circumvent regulations, leading to increased money laundering risks. In response, China is set to amend its Anti-Money Laundering (AML) regulations in 2025 to oversee cryptocurrency transactions better.

The crypto market faces challenges, with Bitcoin miners reporting the lowest revenue in a year during August. Mining revenue fell to $827.56 million, a decrease of over 10.5% from July but a slight increase from the previous year. The number of Bitcoins mined also dropped from 14,725 in July to 13,843 in August, as the cryptocurrency remained around $25,000 for much of the month.

Brazil’s betting boom raises economic concerns

Brazil is witnessing a rapid rise in online sports betting, attracting foreign companies but raising alarms over its economic impact. While the government anticipates increased tax revenue, experts are concerned that gambling diverts money from consumer spending. Gabriel Galipolo, the incoming central bank governor, noted that this surge may hinder the benefits of rising incomes, as savings and consumption growth appear to be stalling due to the increased focus on betting.

Brazilians spent more than $12 billion on foreign betting platforms in the past year, placing the country among the world’s largest sports betting markets. Despite laws prohibiting the use of credit cards for betting, critics warn that gambling is taking a toll on household budgets, particularly among lower-income families. An increasing share of family income is being funnelled into betting, reducing spending on essentials like food, clothing, and healthcare.

The rapid growth of the gambling industry in Brazil has attracted major players like Betfair, Betsson, and Caesars Sportsbook, all keen to tap into the country’s 200 million sports enthusiasts. However, research from the U.S. indicates that legalised betting can lead to serious long-term consequences, such as rising credit card debt, bankruptcies, and economic instability for struggling families. Brazil now faces the challenge of balancing the potential economic benefits of the betting sector with the risks of increasing financial pressure on its citizens.

Telegram to share user data with authorities

Telegram apparently decided to alleviate its policy restrictions and to provide users’ IP addresses and phone numbers to authorities in response to valid legal requests. The shift in policy, announced by CEO Pavel Durov, marks a significant change for the platform, which has long been known for its resistance to government data demands. The update comes in the wake of Durov’s recent legal troubles in France, where he is facing charges related to the spread of child abuse materials on the platform.

Durov, under investigation since his arrest in France last month, says the new measures are part of broader efforts to deter criminal activity on Telegram. Historically, Telegram has been criticised for its lax approach to moderation, often ignoring government requests to remove illegal content or share information on suspected criminals. Now, with AI and human moderators, the app conceals problematic content from search results.

The case against Durov has intensified scrutiny of Telegram’s role in facilitating illegal activities. French authorities have accused Durov of refusing to cooperate with law enforcement by not providing data for wiretaps related to criminal investigations. Durov denies the charges despite these accusations and has remained in France in the inquiry.

Why does this matter?

Telegram has long been a tool for activists and dissidents, especially in countries like Russia and Iran, where it has been used to challenge authoritarian regimes. However, the platform has also attracted extremists, conspiracy theorists, and white supremacists. In some cases, Telegram has been used to coordinate real-world attacks, leading to mounting pressure on the company to take greater responsibility.

In response to these challenges, Telegram has introduced several policy changes. Earlier this month, the platform disabled new media uploads to combat bots and scammers. These moves signal a new chapter for Telegram as it navigates the delicate balance between privacy, free speech, and public safety.

Xiaomi challenges Flipkart report over data concerns

Xiaomi has urged India’s competition authority to recall an antitrust report concerning Walmart’s Flipkart. The Chinese smartphone maker claims the document contains confidential business information, which should have been redacted. The move could slow the ongoing investigation that began in 2021.

The Competition Commission of India (CCI) has previously responded to similar concerns, such as with Apple, leading to the recall of an antitrust report. Xiaomi is concerned that sensitive data, like model-specific sales figures, was shared without proper redaction, potentially harming its business.

The CCI report also found that e-commerce platforms, such as Amazon and Flipkart, gave preferential treatment to certain sellers, launching exclusive products from companies like Xiaomi. The commission has asked involved parties to return the report, allowing it to be reviewed again for necessary redactions.

Xiaomi’s concern with the report focuses on Flipkart’s involvement, while its dealings with Amazon remain unaffected. The CCI’s broader investigation includes various smartphone companies, with Samsung, Vivo, and Motorola also named for participating in exclusive online product launches.

Kenyan court allows lawsuit against Meta

A Kenyan court has determined that Meta, the parent company of Facebook, can be sued in Kenya over the dismissal of several content moderators by a contractor. The moderators, who worked for Sama, alleged they were fired for trying to organise a union and were later blacklisted from applying at Majorel, another firm. Efforts to reach a settlement with Meta last October were unsuccessful.

The Court of Appeal upheld earlier rulings allowing Meta to face trial over the dismissals and allegations of poor working conditions. This decision could have significant implications for Meta’s global relationships with content moderators. Meta has claimed it mandates that its partners provide industry-leading working conditions.

Lawyers for the moderators see this case as a pivotal moment for Big Tech, highlighting the need for accountability in human rights along supply chains. Supporters, including the British tech rights group Foxglove, are optimistic about the case advancing to court.

Apple’s iPhone 16 goes on sale in Russia despite ban

Russian retailers have started pre-sales of Apple’s iPhone 16, despite the company’s export ban after Moscow invaded Ukraine. Leading stores M.Video-Eldorado and mobile operator MTS are the first to offer the new devices, with M.Video planning deliveries next week. However, Russian consumers face significantly higher prices, paying hundreds of dollars more than U.S. customers.

Despite Apple halting product sales and services like Apple Pay in Russia in 2022, the iPhone 16 is still available through parallel imports from countries that have not enforced sanctions, such as Turkey, Kazakhstan, and China. The Kremlin has endorsed this grey market system to keep foreign goods accessible. However, prices are much higher in Russia, with the 128GB iPhone 16 starting at 112,999 roubles ($1,225) and the 1TB iPhone 16 Pro Max priced at 249,999 roubles ($2,710), significantly more than U.S. prices.

Despite sanctions, Western technology remains highly sought after in Russia. However, the Russian government has urged officials to stop using iPhones, claiming they are compromised by Western intelligence agencies, a claim Apple denied.

Meta and Spotify criticise EU decisions on AI

Several tech companies, including Meta and Spotify, have criticised the European Union for what they describe as inconsistent decision-making on data privacy and AI. A collective letter from firms, researchers, and industry bodies warned that Europe risks losing competitiveness due to fragmented regulations. They urged data privacy regulators to deliver clear, harmonised decisions, allowing European data to be utilised in AI training for the benefit of the region.

The companies voiced concerns about the unpredictability of recent decisions made under the General Data Protection Regulation (GDPR). Meta, known for owning Facebook and Instagram, recently paused plans to collect European user data for AI development, following pressure from EU privacy authorities. Uncertainty surrounding which data can be used for AI models has become a major issue for businesses.

Tech firms have delayed product releases in Europe, seeking legal clarity. Meta postponed its Twitter-like app Threads, while Google has also delayed the launch of AI tools in the EU market. The introduction of Europe’s AI Act earlier this year added further regulatory requirements, which firms argue complicates innovation.

The European Commission insists that all companies must comply with data privacy rules, and Meta has already faced significant penalties for breaches. The letter stresses the need for swift regulatory decisions to ensure Europe can remain competitive in the AI sector.