The Competition and Markets Authority (CMA) has temporarily halted the proposed £762 million acquisition of UK logistics firm Wincanton by American logistics company GXO, citing potential competition risks. This decision follows the CMA’s preliminary investigation, which raised concerns about the merger’s impact on the already competitive contract logistics services sector.
An interim enforcement order (IEO) is now in effect, preventing any integration of the two firms during the review process. The CMA’s phase 1 investigation indicated that the merger could reduce competition in a market valued at £16 billion in the UK, where GXO and Wincanton are key players competing for contracts with major retailers. Naomi Burgoyne, senior director of mergers at the CMA, warned that diminished competition could lead to higher costs for consumers reliant on efficient delivery services.
GXO has five days to propose solutions to address the CMA’s concerns. If the proposals are found inadequate, the regulator will proceed to a more detailed phase two investigation. In response to the CMA’s announcement, a GXO spokesperson stated that they are reviewing the decision and are committed to collaborating with the CMA to achieve a favourable outcome, asserting that the acquisition would benefit logistics customers across the UK and support government initiatives for economic growth.
The United States Supreme Court will soon consider whether Meta’s Facebook and Nvidia can avoid federal securities fraud lawsuits in two separate cases that may limit investors’ ability to sue corporations. The tech giants are challenging lawsuits following decisions from the Ninth Circuit Court of Appeals, which allowed class actions accusing them of misleading investors to move forward. The cases will examine the power of private plaintiffs to enforce securities laws amid recent rulings that have weakened federal regulatory authority.
The Facebook case involves allegations from a group of investors, led by Amalgamated Bank, who claim the social media giant misled shareholders about a 2015 data breach linked to Cambridge Analytica, which impacted over 30 million users. Facebook argues that its disclosures on potential risks were adequate and forward-looking. Nvidia’s case, brought by Swedish investment firm E. Ohman JFonder AB, alleges that the company understated the role of crypto-related sales in its revenue growth in 2017 and 2018, misinforming investors about the volatility in its business.
Observers say these cases could further empower businesses by limiting legal risks from private litigation, especially as the US Securities and Exchange Commission (SEC) faces resource limitations. With recent Supreme Court rulings constraining regulatory bodies, private securities lawsuits may become an increasingly critical tool for investors. David Shargel, a legal expert, notes that as agencies’ enforcement powers weaken, the role of private litigation to hold companies accountable may expand.
A federal judge has dismissed a proposed class-action lawsuit claiming Google illegally profited from scams involving Google Play gift cards. The plaintiff, Judy May, alleged she lost $1,000 after a scammer posed as a government official, instructing her to purchase Google Play gift cards to claim grant money. She argued that Google should have warned consumers about such scams on the card packaging.
However, Judge Beth Labson Freeman ruled that Google was not responsible for May’s losses, as the tech giant neither caused her financial harm nor knowingly benefited from the stolen funds. Freeman also dismissed claims that Google’s 15% to 30% commission on purchases using the gift cards was linked to the initial fraud.
The Federal Trade Commission reported that Americans lost $217 million to gift card fraud in 2023, with Google Play cards implicated in roughly 20% of reported cases. Though May’s case was dismissed, the judge allowed her the option to refile.
The UK’s Competition and Markets Authority (CMA) has indicated that a proposed merger between Vodafone and Three could proceed, contingent on the companies making commitments to protect consumer prices and enhance the nation’s 5G infrastructure. The regulator, initially concerned that combining the two networks could lead to higher costs and reduced competition, has now concluded that these issues could be mitigated if Vodafone and Three agree to specific remedies.
Vodafone has responded positively to the CMA’s findings, expressing optimism that the proposal offers a clear path to regulatory approval. The telecom giants have emphasised that the merger would benefit both consumers and businesses, with plans to bring advanced 5G access to schools, hospitals, and other vital sectors across the UK.
The CMA’s investigation, which began in January, is now focused on ensuring the merged entity honors price promises on certain data plans for at least three years. Additionally, the companies would be required to maintain existing deals with smaller Mobile Virtual Network Operators (MVNOs) like Sky Mobile, Lyca, and Lebara. Industry analysts see the CMA’s conditional support as a positive step, potentially leading to a stronger three-player market alongside existing competitors EE and O2.
With public feedback on the proposal open until 12 November, a final decision is expected from the CMA by 7 December.
Craig Wright, the Australian computer scientist who claims to be Bitcoin’s creator, now faces potential contempt of court charges in the UK. Wright recently filed a $1.2B lawsuit against Block, a payments firm founded by Jack Dorsey, despite an injunction barring him from bringing new claims based on his disputed identity as “Satoshi Nakamoto.” A UK court previously found “overwhelming evidence” against Wright’s authorship of Bitcoin’s founding document and accused him of fabricating evidence on a “grand scale.”
Wright was previously referred to UK prosecutors for potential perjury, following a court decision to block him from further lawsuits tied to his claim of creating Bitcoin. Jonathan Hough, a lawyer for the Crypto Open Patent Alliance (COPA), argued that Wright’s lawsuit against Block violates the court’s injunction. Wright, appearing by videolink, denied being in contempt but stated he would amend his lawsuit if necessary.
The court will hold a hearing in December to determine if Wright is indeed in contempt. In the meantime, his $1.2B lawsuit against Block has been temporarily halted pending further legal review.
The US Commerce Department has fined GlobalFoundries $500,000 for exporting semiconductor chips to SJ Semiconductor, an affiliate of China’s blacklisted chipmaker SMIC, without proper authorisation. GlobalFoundries, based in New York and one of the world’s largest contract chipmakers, reportedly made 74 shipments valued at $17.1M to the Chinese firm without obtaining the required export license. SJ Semiconductor and its parent, SMIC, were placed on the US trade restriction list in 2020 due to SMIC’s alleged links to China’s military.
GlobalFoundries disclosed the unintentional violation, attributing the exports to a data-entry error that occurred before the Chinese firms were listed. The company emphasised its commitment to strict compliance practices, a sentiment echoed by Assistant Secretary for Export Enforcement Matthew Axelrod, who urged American companies to be vigilant in transactions with Chinese entities.
This fine comes amid increased scrutiny of US export policy and enforcement, particularly as Washington works to prevent American technology from enhancing China’s military capabilities. GlobalFoundries is also in line to receive $1.5B in government support to expand semiconductor manufacturing in the United States, part of the Biden administration’s broader push to boost domestic chip production.
US tech companies have raised concerns over a proposed data protection law in Vietnam, warning it could restrict their ability to grow in one of Asia’s largest digital markets. The draft law, which is under discussion in Vietnam’s parliament, aims to tighten controls on data protection, limit data transfers abroad, and give authorities easier access to information. Major industry players, represented by the Information Technology Industry Council, argue that these restrictions could hinder companies like Meta, Google, and Equinix from effectively reaching their large Vietnamese user base and building new data centres.
Vietnam, home to 100 million people, is an attractive market for tech and social media companies and has ambitions to expand its data centre industry through foreign investments. However, the new law would require companies to obtain prior authorisation before transferring “core” or “important” data abroad—terms that critics say are vaguely defined. In addition, companies may be required to share data with the government in cases broadly categorised as being in the “public interest.”
The US tech sector has voiced opposition, citing an “undue expansion of government access” that could create significant compliance challenges. The American Chamber of Commerce in Hanoi has joined the call, urging lawmakers to reconsider the legislation’s quick adoption, which is scheduled for a vote on November 30. Industry analysts are watching closely, as the law could impact foreign investment plans, including Google’s potential new data centre in southern Vietnam.
Google has won a trademark lawsuit brought by Shorts International, a British company specialising in short films, over the use of the word ‘shorts’ in YouTube‘s short video platform, YouTube Shorts. London’s High Court found no risk of consumer confusion between Shorts International’s brand and YouTube’s platform, which launched in 2020 as a response to TikTok‘s popularity.
Shorts International, known for its short film television channel, argued that YouTube Shorts infringed on its established trademark. However, Google’s lawyer, Lindsay Lane, countered that it was clear the ‘Shorts’ platform belonged to YouTube, removing any chance of brand confusion.
Judge Michael Tappin ruled in favour of Google, stating that the use of ‘shorts’ by YouTube would not affect the distinctiveness or reputation of Shorts International’s trademark. The court’s decision brings the legal challenge to a close, dismissing all claims of infringement.
The Kremlin has called on Google to lift its restrictions on Russian broadcasters on YouTube, highlighting mounting legal claims against the tech giant as potential leverage. Google blocked more than a thousand Russian channels and over 5.5 million videos, including state-funded media, after halting ad services in Russia following its invasion of Ukraine in 2022.
Russia’s legal actions against Google, initiated by 17 Russian TV channels, have led to compound fines based on the company’s revenue in Russia, accumulating to a staggering figure reportedly in the “undecillions,” according to Russian media. Kremlin spokesperson Dmitry Peskov described this enormous number as symbolic but urged Google to take these legal pressures seriously and reconsider its restrictions.
In response, Google has not commented on these demands. Russian officials argue that such restrictions infringe on the country’s broadcasters and hope the significant financial claims will compel Google to restore access to Russian media content on YouTube.
Seven families in France are suing TikTok, alleging that the platform’s algorithm exposed their teenage children to harmful content, leading to tragic consequences, including the suicides of two 15-year-olds. Filed at the Créteil judicial court, this grouped case seeks to hold TikTok accountable for what the families describe as dangerous content promoting self-harm, eating disorders, and suicide.
The families’ lawyer, Laure Boutron-Marmion, argues that TikTok, as a company offering its services to minors, must address its platform’s risks and shortcomings. She emphasised the need for TikTok’s legal liability to be recognised, especially given that its algorithm is often blamed for pushing disturbing content. TikTok, like Meta’s Facebook and Instagram, faces multiple lawsuits worldwide accusing these platforms of targeting minors in ways that harm their mental health.
TikTok has previously stated it is committed to protecting young users’ mental well-being and has invested in safety measures, according to CEO Shou Zi Chew’s remarks to US lawmakers earlier this year.
