Jurisdiction Archives | Page 96 of 139 | Digital Watch Observatory

Trump rescinds Biden’s AI risk policies

Donald Trump has rescinded a 2023 executive order issued by Joe Biden aimed at mitigating risks associated with AI to consumers, workers, and national security. Biden’s order mandated that developers of high-risk AI systems share safety test results with the US government before public release, under the Defense Production Act. It also required federal agencies to establish safety standards addressing potential threats such as cybersecurity, chemical, and biological risks. This move came amid congressional inaction on AI legislation.

The Republican Party had pledged to overturn Biden’s order, claiming it stifled AI innovation. The party’s 2024 platform emphasises support for AI development that aligns with free speech and human progress. Generative AI technologies, capable of creating content like text and images, have sparked both excitement and concern over their potential to disrupt industries and eliminate jobs.

While Trump revoked Biden’s AI safety framework, he left intact another executive order issued last week that supports the energy needs of advanced AI data centres. Biden’s newer order calls for federal assistance, including leasing Defense and Energy Department sites, to support the rapid growth of AI infrastructure. Meanwhile, US companies like Nvidia have criticised recent Commerce Department restrictions on AI chip exports, reflecting ongoing tensions between regulation and innovation in the tech sector.

Meta, X, Google join EU code to combat hate speech

Major tech companies, including Meta’s Facebook, Elon Musk’s X, YouTube, and TikTok, have committed to tackling online hate speech through a revised code of conduct now linked to the European Union’s Digital Services Act (DSA). Announced Monday by the European Commission, the updated agreement also includes platforms like LinkedIn, Instagram, Snapchat, and Twitch, expanding the coalition originally formed in 2016. The move reinforces the EU’s stance against illegal hate speech, both online and offline, according to EU tech commissioner Henna Virkkunen.

Under the revised code, platforms must allow not-for-profit organisations or public entities to monitor how they handle hate speech reports and ensure at least 66% of flagged cases are reviewed within 24 hours. Companies have also pledged to use automated tools to detect and reduce hateful content while disclosing how recommendation algorithms influence the spread of such material.

Additionally, participating platforms will provide detailed, country-specific data on hate speech incidents categorised by factors like race, religion, gender identity, and sexual orientation. Compliance with these measures will play a critical role in regulators’ enforcement of the DSA, a cornerstone of the EU’s strategy to combat illegal and harmful content online.

Circle CEO expects US executive orders to boost crypto adoption

Cir c le CEO Jeremy Allaire anticipates ‘imminent’ executive orders from incoming US President Donald Trump that could reshape the financial landscape for cryptocurrency. Allaire, whose company issues the USDC stablecoin, expects these orders to allow banks to trade crypto, offer crypto investments to high-net-worth clients, and even hold digital assets in portfolios.

Trump, who has positioned himself as a ‘crypto president,’ is expected to take action after his inauguration to reduce regulatory barriers for crypto and promote widespread adoption. Allaire pointed to repealing the Securities and Exchange Commission’s Staff Accounting Bulletin 121, which has made it challenging for banks and financial institutions to hold crypto assets on their balance sheets.

Allaire also forecasted increased legislative activity surrounding digital asset regulations, with Congress expected to take a more active role in the coming weeks. Circle’s USDC is the world’s second-largest stablecoin, and Allaire’s comments signal growing optimism in the crypto sector following Trump’s election.

Zuckerberg defends AI training as copyright dispute deepens

Mark Zuckerberg has defended Meta’s use of a dataset containing copyrighted e-books to train its AI models, Llama. The statement emerged from a deposition linked to the ongoing Kadrey v. Meta Platforms lawsuit, which is one of many cases challenging the use of copyrighted content in AI training. Meta reportedly relied on the controversial dataset LibGen, despite internal concerns over potential legal risks.

LibGen, a platform known for providing unauthorised access to copyrighted works, has faced numerous lawsuits and shutdown orders. Newly unsealed court documents suggest that Zuckerberg approved using the dataset to develop Meta’s Llama models. Employees allegedly flagged the dataset as problematic, warning it might undermine the company’s standing with regulators. During questioning, Zuckerberg compared the situation to YouTube’s efforts to remove pirated content, arguing against blanket bans on datasets with copyrighted material.

Meta’s practices are under heightened scrutiny as legal battles pit AI companies against copyright holders. The deposition indicates that Meta considered balancing copyright concerns with practical AI development needs. However, the company faces mounting allegations that it disregarded ethical boundaries, sparking broader debates about fair use and intellectual property in AI training.

Donald Trump rebrings TikTok online

TikTok began restoring its services in the US on Sunday after President-elect Donald Trump announced plans to revive the app upon taking office on Monday. Speaking at a rally ahead of his inauguration, Trump assured his supporters that TikTok, a platform used by 170 million Americans, would be brought back online through a joint venture that protects national security. Hours earlier, TikTok users had received a message crediting Trump for the app’s restoration efforts.

TikTok ceased operations late Saturday after a law banning the platform on national security grounds came into effect. The shutdown sparked a frenzy among users and businesses dependent on the app, with web searches for VPNs surging and concerns mounting over disruptions to TikTok Shop transactions. The app’s temporary return relieves millions, but important questions remain about its long-term future in the US.

Trump’s pledge to extend the ban’s enforcement period to facilitate a deal marks a shift from his stance in 2020 when he sought to ban TikTok over concerns that its Chinese parent company, ByteDance, was sharing user data with Beijing. Trump now calls for a joint venture, proposing a 50% US ownership stake while guaranteeing that service providers would not face penalties for restoring TikTok.

Despite Trump’s assurances, the law mandating TikTok’s divestiture remains contentious. Republican lawmakers, including Senators Tom Cotton and Pete Ricketts, have criticised any attempt to circumvent the law, insisting that ByteDance sever all ties with China to meet the divestiture requirements. Meanwhile, TikTok’s ongoing connection to China continues to fuel tensions in US-China relations, with Beijing accusing Washington of unfairly targeting Chinese companies.

TikTok’s temporary return has reignited debates over its valuation, reportedly as high as $50 billion, and potential suitors, including former Los Angeles Dodgers owner Frank McCourt and billionaire Elon Musk. While Beijing has reportedly discussed a possible sale, ByteDance denies such plans. Separately, US startup Perplexity AI has proposed merging with TikTok’s US operations to create a new entity.

The platform’s restoration signals its cultural and economic significance, but it also highlights the geopolitical complexities of its existence. Whether TikTok ultimately secures a deal or faces renewed legal battles, its journey reflects the growing and complicated intersection of technology, digital policies, cyber diplomacy, politics, and global commerce.

TikTok’s abrupt shutdown shakes the USA

TikTok’s future in the US took a dramatic turn late Saturday as the app went offline ahead of a Sunday deadline mandated by US law. The US government’s move, affecting 170 million US users, marks an unprecedented shutdown of one of the world’s most influential social media platforms.

The persistence of the US officials to ban TikTok stems from concerns over the platform’s ties to its Chinese parent company, ByteDance, and potential risks to national security. As users grapple with the platform’s disappearance, President-elect Donald Trump has hinted at a possible 90-day extension to allow time for a resolution.

The shutdown comes after the Supreme Court upheld a law requiring TikTok to sever ties with ByteDance or cease US operations. ByteDance’s other apps, such as CapCut and Lemon8, were also removed from US app stores.

TikTok issued a message to users acknowledging the shutdown and expressing hope for a political resolution under the Trump administration, which takes office Monday 20 January 2025. Trump has indicated that he will announce an extension early next week.

The app’s disappearance has sparked many reactions among users, businesses, and competitors. Social media platforms like RedNote, Meta, and Snap have seen an influx of users and investor interest, while many TikTok creators expressed sadness and uncertainty online. Virtual private network (VPN) searches surged as users sought workarounds to access the platform, highlighting the app’s deep integration into American culture and commerce.

Despite the shutdown, speculation continues about TikTok’s future. ByteDance has reportedly been discussing with potential buyers, including billionaire Elon Musk and other US-based entities. Meanwhile, TikTok CEO Shou Zi Chew is set to attend Trump’s inauguration, signalling possible negotiations to keep the platform operational. Proposals from new suitors, such as US search engine startup Perplexity AI, further illustrate the high stakes and value of TikTok’s US operations, which are estimated to be worth up to $50 billion.

The uncertainty has created a ripple effect, with businesses that rely on TikTok for marketing and e-commerce scrambling to adapt. Many worry about the broader implications of this shutdown, which has deepened tensions between Washington and Beijing.

The prospect of a political compromise looms as Trump prepares to take office, but whether TikTok can return to US screens remains uncertain. The platform’s sudden disappearance underscores the complex intersection of technology, geopolitics, and commerce, leaving millions of users and businesses in limbo.

China denies forcing firms to share user data

The Chinese government “has never and will never” require companies or individuals to collect or transfer data in ways that violate the law, China’s foreign ministry declared on Friday. The statement was issued in response to a privacy complaint filed by Austrian advocacy group Noyb, which accuses six Chinese companies, including TikTok, Shein, and Xiaomi, of unlawfully sending European Union user data to China.

Noyb, an organisation focused on data protection and privacy rights, alleges that the companies breached the EU’s General Data Protection Regulation (GDPR) by transferring user data without proper safeguards. The complaint has sparked concerns in Europe about how personal information is handled by Chinese firms operating within the EU. If proven, the violations could result in significant fines and further scrutiny of these companies.

In defending the nation’s stance, a foreign ministry spokesperson emphasised that China operates within the bounds of international laws and rejects any claims of illegal data practices. “China strictly upholds its legal and regulatory framework and will never engage in or endorse actions that violate laws regarding data collection or transfer,” the spokesperson said. The spokesperson also criticised what they described as “unfounded accusations” aimed at tarnishing Chinese businesses.

This case is the latest in a series of global concerns about data privacy and the practices of technology firms. It underscores the growing tension between nations over data security, cross-border data flows, and regulatory compliance, particularly as Chinese companies expand their presence in foreign markets. The outcome of Noyb’s complaint could have far-reaching implications for data governance and corporate practices in both Europe and China.

US officials push for more time to save TikTok

TikTok’s future in the US grew more uncertain this week as officials suggested its Chinese owner, ByteDance, should have more time to sell the app and prevent a ban. With the clock ticking toward Sunday’s deadline, key figures from both political sides urged for a 90-day extension to allow for a divestiture. US Representative Mike Waltz, who was appointed as Trump’s national security adviser, indicated that the new administration would take steps to keep TikTok operational if substantial progress is made in securing a deal.

Senate Majority Leader Chuck Schumer, traditionally a supporter of the law forcing TikTok to sell its US assets, also called for an extension, citing concerns over the app’s potential shutdown disrupting the lives of millions of users. The law, passed in April, mandates ByteDance either sell TikTok’s US assets by Sunday or face a ban on national security grounds. However, it’s now unclear whether the app will be allowed to stay active in the US without an official extension.

TikTok CEO Shou Zi Chew is reportedly set to attend President-elect Donald Trump’s inauguration, further hinting at a shift in relations between the app and the Trump administration. While concerns about Chinese ownership and its potential for data collection remain, Schumer and other lawmakers are signalling a growing bipartisan desire to avoid the political and economic fallout of a TikTok ban. The situation remains fluid, with decisions expected to unfold in the coming days.

As the deadline approaches, TikTok’s potential shutdown has already caused some users to explore alternatives, with RedNote, another Chinese social media platform, seeing a surge in US users. Meanwhile, with more than 170 million American users and substantial ad revenue at stake, the clock is ticking for a resolution before the app faces a permanent ban.

Trump may delay TikTok ban enforcement with executive order

President-elect Donald Trump is reportedly considering an executive order that would postpone the enforcement of the TikTok sale-or-ban law for up to 90 days. According to sources cited by the Washington Post, the order would temporarily halt the requirement for TikTok’s Chinese owner, ByteDance, to divest its US operations or face a ban.

The delay could provide more time for negotiations and potential deals to resolve security concerns raised by United States lawmakers. The law, passed under the Biden administration, aimed to address fears over TikTok’s links to China, but Trump has taken a more open stance towards the platform during his campaign.

A suspension of enforcement would offer relief to TikTok’s 170 million American users and businesses that rely on the app for advertising and engagement. The move, however, is likely to spark debate in Washington, where concerns over data security and Chinese influence remain key political issues.

New SEC leadership set to ease cryptocurrency regulations

Republican officials at the US Securities and Exchange Commission (SEC) are preparing to overhaul the agency’s cryptocurrency policies following the inauguration of President-elect Donald Trump. Commissioners Hester Peirce and Mark Uyeda, who will soon hold the majority at the SEC, are expected to begin reviewing crypto enforcement cases and initiating rule-making efforts to clarify when digital assets are considered securities. Trump’s pick for SEC chair, Paul Atkins, is widely expected to roll back the tough regulatory approach taken under outgoing chair Gary Gensler.

Gensler’s SEC pursued 83 crypto-related enforcement actions, targeting companies like Coinbase and Kraken. Many of these cases argued that cryptocurrencies function as securities and should comply with SEC regulations. Peirce and Uyeda are expected to review and potentially freeze some litigation that does not involve fraud. Industry leaders have long called for clearer regulations, and the new SEC leadership may start a public consultation process to shape future crypto policies.

Trump’s administration is also expected to issue executive orders directing financial regulators to reassess their crypto policies. Bitcoin surged past $100,000 in December amid optimism about a more crypto-friendly regulatory environment. Legal experts caution that dismissing numerous enforcement actions would be unprecedented and could set a controversial precedent. However, settlement negotiations may offer a pathway to resolving disputes while maintaining accountability for fraudulent activities in the sector.