Jurisdiction

Antitrust investigation finds Amazon and Flipkart prioritised sellers

An Indian antitrust investigation has concluded that Amazon and Walmart’s Flipkart breached competition laws by favouring select sellers on their platforms. The probe, initiated by the Competition Commission of India (CCI), revealed that both companies created an ecosystem that prioritised certain sellers, making it harder for other retailers to compete.

Reports found that these preferred sellers were given an unfair advantage, appearing higher in search results and receiving additional services, leading to deep discounting practices. The findings highlighted that these practices harmed smaller retailers and stifled competition, especially in the mobile phone sector.

Both Amazon and Flipkart are expected to review the reports and submit objections before any fines are imposed. These companies have consistently denied any wrongdoing and argued that their operations comply with Indian regulations.

The investigation stemmed from complaints by traditional retailers and follows growing concerns about the dominance of e-commerce giants in India. Both Amazon and Flipkart remain major players in a market projected to be worth $160 billion by 2028.

Illegal gun parts from China seized by US authorities

US authorities have taken down over 350 websites selling gun silencers and parts from China used to convert semiautomatic pistols into fully automatic machine guns. The move follows an investigation that started in August 2023, targeting illegal sales of these dangerous devices.

Undercover operations revealed shipments from China, falsely labelled as items such as ‘necklaces’ or ‘toys’. Instead, these packages contained machine gun conversion devices, known as ‘switches’, and ‘silencers’, both banned under the National Firearms Act. Some websites even sold counterfeit goods, misusing the trademark of gun manufacturer Glock Inc.

Acting US Attorney Joshua Levy emphasised the importance of seizing these websites to halt the influx of illegal and dangerous contraband. Law enforcement has so far seized over 700 machine gun conversion devices, 87 illegal suppressors, 59 handguns, and 46 long guns.

Officials highlighted the growing problem of such devices being easily accessible, posing a serious threat to public safety. The seizures are part of a broader effort to tackle the illegal gun parts trade and protect communities.

Former Google exec reveals giant’s strategy to crush ad rivals

In 2009, Google’s goal was to ‘crush’ rival ad networks, as revealed by a former executive in a point highlighted in the ongoing US Department of Justice antitrust trial against the tech giant. The remarks, made by David Rosenblatt, Google’s former president of display advertising, surfaced as part of the prosecution’s argument that Google has been trying to monopolise the online adtech market, dominating both publisher ad servers and advertiser ad networks.

The trial is gaining momentum and has introduced evidence of Google’s internal strategies since it acquired DoubleClick in 2008. Rosenblatt’s comments, referenced in court notes, underscored Google’s aim to control the digital advertising ecosystem. He compared the company’s adtech ambitions to those of major financial institutions, stating that Google wanted to achieve in display ads what it had already done with search ads.

Google has denied the allegations, asserting it faces strong competition from other major players like Microsoft, Amazon, and Meta. The company argues that its advertising tools are common in the industry. However, the prosecution contends that Google’s integrated ad services give it an unfair advantage, particularly by making it difficult for publishers to switch platforms, a challenge Rosenblatt described as a ‘nightmare.’

Should the court rule against Google, prosecutors have called for the company to sell off its Google Ad Manager, including its publisher ad server and ad exchange, to restore competition in the digital advertising market.

Major data centre investment by Amazon in the UK

Amazon has announced plans to invest £8 billion in the UK to expand its data centre operations. The investment will be made by Amazon Web Services (AWS) over the next five years, aiming to meet growing demand for cloud computing, largely driven by AI advancements.

This new investment will add to AWS’s previous contributions of £3 billion since 2022, with facilities already in London and Manchester. The company expects the project to contribute £14 billion to the UK economy and support more than 14,000 jobs by the end of 2028.

AWS’s investment follows significant European cloud computing expansions, including substantial projects in Spain and Germany. After a pause last year, many corporate clients have resumed cloud spending, driven by a renewed interest in AI.

The announcement has been welcomed by the UK government, with Finance Minister Rachel Reeves highlighting its importance ahead of an upcoming investment summit. The exact locations of the new data centres will not be disclosed due to security reasons, but they will meet growing demand around London.

Russia to invest $660 million in modernising internet censorship

Russia is ramping up its efforts to control the internet by allocating nearly 60 billion roubles ($660 million) over the next five years to upgrade its web censorship system, known as TSPU. The system, developed by state regulator Roskomnadzor, is designed to filter and block content deemed harmful or illegal by the government. The funding, part of a broader ‘Cybersecurity Infrastructure’ project, will acquire new software and hardware and expand the system’s capabilities.

The initiative is seen as part of Moscow’s broader crackdown on online freedoms, which has intensified since Russia‘s invasion of Ukraine in 2022. The government has been targeting independent media and social media platforms, blocking websites, and cracking down on using Virtual Private Networks (VPNs), which many Russians use to bypass government restrictions. Roskomnadzor has been increasingly influential in blocking access to these tools, with officials planning to enhance the system’s efficiency further.

The TSPU system was introduced under a 2019 law that requires internet service providers to install government-controlled equipment to monitor and manage web traffic. As of late 2022, over 6,000 TSPU devices had been deployed across Russian networks. The new funding will modernise this infrastructure and improve the system’s ability to detect and block VPN services, making it harder for Russians to access uncensored content.

Why does this matter?

While the Kremlin continues to position these measures as necessary for national security, critics see them as a blatant attack on free speech. Digital rights activists, including those from Roskomsvoboda, warn that while new investments in censorship technology will tighten government control, it is unlikely to eliminate access to independent information. Developers of VPNs and other circumvention tools remain determined, stating that innovation and motivation are essential in the ongoing struggle between censorship and free access.

Russia’s battle with VPNs and independent media is part of a broader campaign against what it calls Western information warfare. Despite the government’s efforts to clamp down, demand for alternative ways to access the internet remains high. Developers are working on more resilient tools, even as the state pours resources into strengthening its censorship apparatus. This tug-of-war between government control and free access to information seems set to continue, with both sides ramping up their efforts.

US Senate to question tech leaders on election security

Tech industry leaders from some of the world’s most influential companies, including Google, Meta, Microsoft, and Adobe, are set to testify before the US Senate Intelligence Committee on 18 September. The hearing will focus on the growing threats to election security, particularly disinformation and misinformation, ahead of the closely watched 5 November election. As the nation prepares for a contentious face-off between Vice President Kamala Harris and former President Donald Trump, US officials are eager to ensure the integrity of the electoral process by addressing the risks of false online narratives.

Executives like Alphabet’s global affairs president Kent Walker, Meta’s Nick Clegg, and Microsoft’s Brad Smith are no strangers to congressional scrutiny, having testified before lawmakers in previous election-related hearings. Their appearance next week underscores the ongoing concerns about how foreign actors, such as Russia, Iran, and China, may attempt to meddle in American elections by exploiting digital platforms. These countries have repeatedly denied any interference while simultaneously accusing the US of involving itself in their political affairs, claims that Washington dismisses.

The testimony from these tech giants is expected to shed light on how their platforms prepare to handle the threats of misinformation and foreign influence leading up to the election. With the stakes as high as ever in this tight political contest, the role of technology companies in safeguarding democracy will be front and centre.

EU court rules against Apple’s tax deal and Google’s market practices

In a significant victory for European regulators, the EU’s top court upheld rulings against Apple and Google, marking key moments in the ongoing battle against Big Tech. Margrethe Vestager, the EU’s antitrust chief, has been at the forefront of efforts to challenge multinational companies benefiting from tax deals and engaging in anti-competitive behaviour. On Tuesday, the courts sided with her in two major cases involving Apple’s tax deal with Ireland and Google’s market practices.

The Apple case, which dates back to 2016, revolved around 13 billion euros ($14.4 billion) in back taxes. The European Commission argued that Apple’s arrangement with Ireland allowed the tech giant to pay an artificially low tax rate, at times as low as 0.005%. The Luxembourg-based Court of Justice agreed, confirming that Apple had received unlawful state aid and Ireland must recover the amount. Apple expressed disappointment, arguing that its income had already been taxed in the US and that the EU was attempting to change the rules retroactively.

Ireland, too, had challenged the ruling despite benefiting from the corporate taxes of large tech companies. The country’s low tax rates had attracted giants like Apple to establish European headquarters there. However, in a shift that signals broader changes in global tax policy, Ireland has since agreed to align with new international tax standards, even though its multinational tax take continues to grow.

On the same day, the European Court also ruled against Google in a separate antitrust case. In 2017, the European Commission fined Google 2.42 billion euros for abusing its market dominance by promoting its shopping service over smaller European rivals. Google appealed the decision but was met with a firm rejection. The court ruled that Google’s practices were discriminatory and did not constitute fair competition on the merits. Google, like Apple, voiced disappointment with the decision, though it claimed to have changed its business practices since the original ruling.

The ruling adds to the 8.25 billion euros in antitrust fines Google has accumulated in Europe over the past decade. The company continues to face scrutiny, with ongoing cases related to its Android operating system and AdSense advertising platform and an investigation that could lead to selling parts of its adtech business.

Why does this matter?

The decisions against Apple and Google reflect a broader movement within Europe to challenge the power of Big Tech. These cases are part of a growing trend where governments seek to hold multinational companies accountable for their tax practices and market behaviours. Other major corporations, such as IKEA and Nike, are also under investigation for their tax arrangements as regulators across the globe attempt to reshape the corporate landscape and foster a fairer competitive environment.

Irish government responds to Apple tax ruling as a historical matter

The Irish government responded to a European court ruling on Tuesday that found it had granted Apple unlawful tax benefits, stating the issue is now ‘of historical relevance’ due to changes in its tax system. The ruling stems from a 2016 European Commission order requiring Ireland to recover 13.8 billion euros from Apple, which had benefited from Irish tax rulings that reduced its tax rate to as low as 0.005% in 2014.

Ireland has consistently contested the order, asserting it does not offer preferential tax treatment to companies. However, the Court of Justice of the European Union upheld the decision, confirming that Apple paid insufficient taxes and that more needed to be recovered.

Since the 2016 ruling, Ireland has significantly reformed its corporate tax laws, aligning with international agreements and addressing corporate residence and profit attribution for non-resident companies operating in the country. The government will now begin releasing funds from the escrow account holding the recovered amount.

Apple loses €13 billion EU tax case

Apple has lost its battle with the European Union over a €13 billion tax payment dispute, marking a major win for the EU regulators. The European Commission initially ordered the payment in 2016, accusing Apple of benefiting from favourable Irish tax rulings that significantly reduced its tax obligations. These sweetheart deals allowed Apple to pay as little as 0.005% tax in 2014.

Apple and Ireland challenged the decision, arguing that the ruling defied logic, especially since Ireland’s low tax rates were instrumental in attracting major tech firms. However, the Court of Justice of the EU upheld the Commission’s order, declaring that Ireland had provided Apple with illegal state aid, which now must be repaid.

Apple expressed disappointment, accusing the EU of retroactively changing tax laws and arguing that its income had already been taxed in the US. The final and non-appealable ruling is a significant step in the EU’s efforts to clamp down on favourable tax deals for multinational corporations.

Nepal lifts TikTok ban after ten months

The Nepalese government has lifted the ban on TikTok after nearly ten months, following a cabinet meeting on 22 August 2024. This decision came after discussions with ByteDance representatives, who agreed to several conditions for TikTok’s operation in Nepal. These conditions include registering as a business, appointing a local contact, promoting tourism, supporting digital literacy, and moderating content in Nepali languages.

The Nepal Telecommunications Authority (NTA) has directed all Internet Service Providers (ISPs) to lift the ban, citing Section 15 of the Telecommunications Act. TikTok has three months to meet the government’s conditions and will collaborate with local authorities to ensure compliance with the new regulations.

The ban was initially imposed in November 2023 due to concerns about social harmony and inappropriate content, leading to criticism regarding freedom of expression. The recent decision to lift the ban has been positively received by TikTok, which is committed to fostering creativity and free expression among Nepali users, reflecting a balance between regulation and digital innovation.