Jurisdiction

Zuckerberg alleges Biden admin pressured Meta on COVID censorship

Meta Platforms CEO Mark Zuckerberg has disclosed in a recent letter that senior Biden administration officials pressured his company to censor COVID-19 content during the pandemic. The letter, sent on 26 August to the US House Judiciary Committee, reveals Zuckerberg’s regret over not publicly addressing this pressure sooner and his acknowledgement of questionable content removal decisions made by Meta.

You can read the letter by clicking on X post

Zuckerberg detailed in the letter that, in 2021, the White House and other Biden administration officials exerted considerable pressure on Meta to suppress certain COVID-19-related content, including humour and satire. According to Zuckerberg, this pressure led to frustration when Meta did not fully comply.

The letter, which the Judiciary Committee on Facebook shared, highlights Zuckerberg’s criticism of the government’s actions. He expressed regret for not being more vocal about the situation and reflected on the decisions made with the benefit of hindsight.

The White House and Meta have not commented on the matter outside regular business hours. The Judiciary Committee, led by Chairman Jim Jordan, has labelled the letter a ‘big win for free speech,’ noting Zuckerberg’s admission that Facebook censored some content.

Additionally, Zuckerberg announced that he would refrain from contributing to electoral infrastructure for the upcoming presidential election. The approach follows his controversial $400 million donation in 2020 through his Chan Zuckerberg Initiative, which faced criticism and legal challenges from some groups who perceived it as partisan.

Elon Musk pushes for AI safety law in California

Elon Musk has urged California to pass the AI bill requiring tech companies to conduct safety testing on their AI models. Musk, who owns Tesla and the social media platform X, has long advocated for AI regulation, likening it to rules for any technology that could pose risks to the public. He specifically called for the passage of California’s SB 1047 bill to address these concerns.

California lawmakers have been busy with AI legislation, attempting to introduce 65 AI-related bills this season. These bills cover a range of issues, including ensuring algorithmic fairness and protecting intellectual property from AI exploitation. However, many of these bills have yet to advance.

On the same day, Microsoft-backed OpenAI supported a different AI bill, AB 3211, which requires companies to label AI-generated content, particularly in light of growing concerns about deepfakes and misinformation, especially in an election year.

The push for AI regulation comes when countries representing a broader portion of the global population are holding elections, raising concerns about the potential impact of AI-generated content on political processes.

Pavel Durov detained in France amid crime probe

According to French authorities, Pavel Durov, the founder of the messaging app Telegram, was detained in France as part of an ongoing investigation into several serious crimes, including child pornography, drug trafficking, and fraud. The arrest occurred at Le Bourget airport near Paris, and French President Emmanuel Macron later confirmed the news, stressing that the arrest was not politically motivated.

The arrest is tied to an investigation launched in July by the Paris prosecutor’s office, focusing on Telegram’s alleged role in facilitating illegal activities, including running an online platform for illicit transactions and refusing to provide information to authorities. The probe also includes allegations of money laundering and giving cryptographic services to criminals. Durov, who holds several citizenships, including the French, could be detained further as the investigation progresses.

Telegram, which boasts nearly a billion users worldwide and is especially popular in Russia and Ukraine, responded by stating that it complies with the EU laws and maintains industry-standard moderation practices.

The company dismissed claims that the platform or Durov himself was responsible for criminals’ app misuse.

On the other side, the Kremlin has expressed concerns that France’s accusations against Telegram founder Pavel Durov could be an attempt to limit freedom of communication unless supported by substantial evidence. Kremlin spokesperson Dmitry Peskov announced that Russia is prepared to assist Durov due to his Russian citizenship, though his French citizenship presents additional challenges. Peskov emphasised that the gravity of the charges requires equally serious evidence to avoid perceptions of an effort to curtail communication freedoms.

Peskov also suggested that the case might be used to intimidate a prominent business leader and questioned French President Emmanuel Macron’s assertion that Durov’s detention was free from political motives. Russia has previously faced challenges in blocking Telegram and has fined the company for not removing content it deemed illegal.

The UAE has also called for clearer information about the arrest and investigation. The UAE’s Ministry of Foreign Affairs indicated that it is closely monitoring Pavel Durov’s case and has requested the French government to urgently provide consular services. The ministry emphasized prioritising its citizens’ care, safeguarding their interests, and ensuring comprehensive support are key commitments for the UAE.

Ultimately, Elon Musk confronted Emanuel Macron by responding directly to his post on X, claiming that ‘It would be helpful to the global public to understand more details about why he was arrested’, as he described it as an attack on free speech.

Amazon faces renewed antitrust lawsuit as Washington, DC appeals court reinstates case

A Washington, DC, appeals court has revived a lawsuit against Amazon, claiming that the company’s pricing policies stifle competition. The District of Columbia had initially filed the lawsuit in May 2021, accusing Amazon of restricting third-party sellers from offering lower prices on other platforms and maintaining agreements with wholesalers that discourage price reductions. The lawsuit alleges that these practices harm competition and lead to higher prices for consumers.

The DC Court of Appeals reversed a previous ruling that dismissed the case, stating that the claims made by the DC Attorney General were plausible and could proceed. The lawsuit is part of a broader legal challenge, as Amazon also faces similar accusations from the US Federal Trade Commission and several states.

Amazon has defended its policies, arguing that they benefit consumers by ensuring competitive pricing. However, DC Attorney General Brian Schwalb has welcomed the court’s decision, reaffirming his commitment to fighting what he describes as Amazon’s unfair practices that limit innovation and choice in online retail.

Hybrid work powers Zoom’s revenue growth

Zoom has raised its annual revenue forecast, driven by increasing demand for AI-powered collaboration tools in hybrid work environments. The video-conferencing company has been focusing on integrating AI into its products, which has contributed to its financial success. A key highlight was the success of Zoom Contact Center, a platform that secured several major clients in the second quarter.

Large accounts generating over $100,000 in trailing 12-month revenue saw a notable increase of 7.1%, with average monthly churn rates reaching an all-time low. Industry experts believe Zoom’s continued innovation and product expansion are crucial for sustaining growth beyond its pandemic-era success. However, the company will face challenges in maintaining this momentum.

Zoom also announced that CFO Kelly Steckelberg will be stepping down after the company reports its earnings for the quarter ending 31 October. Steckelberg, who has been with Zoom since 2017 and led its IPO in 2019, will be succeeded by a new CFO, as the search for her replacement is underway.

For fiscal 2025, Zoom now expects revenue between $4.63 billion and $4.64 billion, slightly above previous estimates. The company’s second-quarter revenue of $1.16 billion surpassed expectations, as did its adjusted earnings of $1.39 per share.

Shein and Temu clash over copyright allegations

A fast fashion retailer Shein has escalated its legal battle against rival Temu by filing a lawsuit accusing Temu of operating as an unlawful enterprise. The allegations against Temu include counterfeiting, theft of trade secrets, and manipulating sellers on its platform. Shein claims Temu exerts complete control over its sellers, even preventing them from removing products after admitting to intellectual property infringement.

The lawsuit is part of an ongoing feud between the two budget retailers, which have exchanged legal threats before. Temu had previously accused Shein of pressuring manufacturers to cut ties with it, while Shein claimed Temu encouraged false statements by influencers. Both companies are known for aggressive tactics to dominate the US market, where Temu has recently overtaken Shein in sales.

Shein’s latest lawsuit also highlights its own struggle to improve its reputation as it prepares to go public in the US. The company, notorious for poor working conditions and accusations of copying independent designers, now accuses Temu of similar practices. Both retailers are heavily reliant on the Chinese supply chain and exploit trade loopholes to maintain their competitive pricing.

Meanwhile, Shein itself faces a class action lawsuit, accused of large-scale copyright infringement against small designers and artists. Despite these legal challenges, Shein continues to battle Temu in a race to the bottom in the competitive world of fast fashion.

Federal court reopens Google Chrome privacy case

Google must now contend with a class action lawsuit accusing it of collecting data through Chrome without user consent. A US federal appeals court has revived the case, overturning a 2022 decision that had dismissed it. The court highlighted the need for a closer examination of Google’s privacy disclosures to determine whether users genuinely understood and consented to the data collection.

The lawsuit, originally filed in 2020, alleges that Google collected user data from Chrome even when they did not enable Chrome sync. Plaintiffs argue that browsing history, IP addresses, and unique browser identifiers were shared without explicit permission. Google has maintained that users consented by accepting its privacy policy, a stance previously upheld by a lower court.

However, the recent ruling suggests that the lower court may have overlooked whether users truly grasped the implications of their agreement with Google. The case will now return to the lower courts for further consideration. Google remains confident in its position, stating that Chrome Sync provides seamless functionality across devices while maintaining clear privacy controls.

Despite the ongoing legal challenge, Google spokesperson José Castañeda has emphasised that upcoming changes to Chrome’s sync feature, which will no longer be necessary for accessing saved information, are unrelated to the lawsuit.

Judge in Dallas blocks FTC’s ban on noncompete agreements

A federal judge in Dallas has blocked the Federal Trade Commission’s (FTC) ban on noncompete agreements, which would have made it difficult for workers to join competing employers or start their own businesses. The ruling, issued by US District Judge Ada Brown, prevents the ban from taking effect on 4 September, although the FTC may still appeal the decision. Judge Brown stated that the FTC had exceeded its authority, calling the ban ‘unreasonably overbroad’ and potentially causing ‘irreparable harm.’

The FTC has expressed disappointment with the ruling, emphasising its commitment to challenging noncompete agreements that they argue restrict economic freedom, hinder innovation, and depress wages. The agency is considering an appeal, which would go to the Fifth Circuit Court of Appeals. In the meantime, the FTC will have to address noncompete issues on a case-by-case basis.

The ruling stems from a lawsuit filed by tax firm Ryan LLC, supported by the US Chamber of Commerce and Business Roundtable, which argued that the ban would make it harder for companies to retain talent. Despite the FTC’s claim that the ban would enable the creation of over 8,500 new businesses annually, the judge’s decision has put the nationwide ban on hold.

X shuts down operations in Brazil over censorship dispute

Elon Musk’s media platform X announced last Saturday that it would cease operations in Brazil immediately, citing ‘censorship orders’ from Brazilian judge Alexandre de Moraes. According to X, de Moraes allegedly threatened to arrest one of the company’s legal representatives in Brazil if they did not comply with orders to remove certain content from the platform. X shared images of a document purportedly signed by the judge, stating that the representative, Rachel Nova Conceicao, would face a daily fine and possible arrest if the platform did not comply.

In response, X decided to close its operations in Brazil to protect its staff, although the service remains available to Brazilian users. The Brazilian Supreme Court, where de Moraes serves, declined to comment on the authenticity of the document shared by X.

Musk’s decision follows earlier orders by de Moraes to block specific accounts on X as part of an investigation into ‘digital militias’ accused of spreading fake news during former President Jair Bolsonaro’s government. Musk criticised de Moraes’ decisions, calling them ‘unconstitutional,’ and X initially resisted these rulings.

However, after Musk’s objections, X eventually assured Brazil’s Supreme Court that it would comply with the legal orders, although technical issues reportedly allowed some blocked users to remain active. Musk has since condemned de Moraes as a ‘disgrace to justice’ and rejected the judge’s alleged ‘secret censorship’ demands.

Fortnite returns to iPhones in EU after four-year ban

After a four-year absence, Fortnite is once again available on iPhones across the European Union, thanks to new regulations under the EU’s Digital Markets Act. This development comes as Epic Games, the US based creator of Fortnite, has finally overcome legal challenges that led to the game’s removal from Apple’s App Store in 2020. At the time, the game was banned due to a dispute over in-app payment commissions, which led to a series of lawsuits against Apple and Google.

With the new law in place, Epic Games can relaunch Fortnite on iPhones within the EU, although Apple continues to block access outside Europe. Epic’s CEO, Tim Sweeney, expressed gratitude towards the European Commission for enforcing the regulations, ensuring that tech giants couldn’t hinder competition in the digital market. Alongside Fortnite, Epic’s mobile game store is also launching with other popular titles like Rocket League Sideswipe and Fall Guys.

Globally, Fortnite has also reappeared on Android devices, further expanding its reach. The company aims to add 100 million new mobile users by the end of the year, with plans to collaborate with other developers to offer a broader range of games through independent mobile stores such as AltStore.

This relaunch marks a significant victory for Epic Games, which had 75 million monthly active users in its PC store, now setting its sights on a massive mobile expansion. The return of Fortnite, particularly on iPhones in the EU, is likely to reignite the game’s popularity and player base.