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Antitrust probe into Microsoft and OpenAI ends in the UK

The UK Competition and Markets Authority (CMA) has concluded its investigation into Microsoft’s partnership with OpenAI, deciding not to move forward with a merger probe.

The decision comes after the CMA found that Microsoft does not hold enough control over OpenAI, a key factor in triggering a merger review. The companies’ collaboration began in 2019, when Microsoft invested $1 billion in the AI startup.

Despite this, the CMA stated that Microsoft’s influence had not evolved to the level of de facto control required for further scrutiny.

This marks the end of the UK’s formal investigation into the deal, although the CMA clarified that its decision should not be interpreted as a dismissal of potential competition concerns related to the partnership.

While the investigation is closed, the CMA has been increasingly active in examining major tech company acquisitions, particularly those involving AI startups.

Microsoft welcomed the CMA’s decision, asserting that their ongoing partnership with OpenAI fosters innovation and competition in AI development.

Meanwhile, the CMA continues to monitor the tech sector, with broader powers to investigate companies deemed to hold ‘strategic market status’.

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Northumberland approves Blackstone’s data centre project

Blackstone’s ambitious $13 billion ‘hyperscale’ data centre project in North East England has been given the green light by Northumberland County Council. The plan, which spans 540,000 square metres, was approved after a unanimous vote and is expected to represent an investment of up to £10 billion. The data centre will provide essential data storage and cloud computing services to businesses, addressing the rising demand in sectors such as AI.

The development is expected to generate substantial economic benefits, including up to 1,200 long-term construction jobs and hundreds of operational roles once the centre is running. Additionally, it could support up to 2,700 indirect jobs. As part of the agreement, Blackstone will contribute to a £110 million fund that will help drive growth along the Northumberland Line, a new railway route opened in December 2024.

This development follows the collapse of a previous plan to use the site for a Britishvolt facility, after the UK startup’s failure last year. With demand for data centres escalating, particularly due to AI advancements, this project is poised to play a crucial role in meeting growing technological needs across Europe.

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Malaysia sets sights on advanced chip production with $250 million deal

Malaysia has secured a landmark deal worth $250 million with Arm Holdings to acquire the company’s advanced chip design blueprints.

The agreement, which spans a decade, will enable Malaysia to produce its own AI chips, including graphics processing units, as demand for AI and data centres continues to surge globally.

The deal is part of Malaysia’s broader goal to become a major player in semiconductor manufacturing over the next ten years.

Prime Minister Anwar Ibrahim confirmed that the deal will also see Arm establish its first Southeast Asian office in Kuala Lumpur. The move is aimed at strengthening the company’s presence in the region, including expanding its reach to Australia and New Zealand.

Alongside this, Malaysia will invest in training 10,000 engineers to support the local manufacturing ecosystem.

The initiative is expected to drive significant economic growth, with Malaysia aiming to create 10 local chip companies, each generating annual revenues between $1.5 to $2 billion.

Malaysia aims to build a complete supply chain for advanced industries, covering everything from AI data servers to autonomous vehicles and robotics.

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New iPad Air arrives with advanced AI capabilities

Apple has launched new versions of the iPad Air, now featuring its latest M3 chip and AI capabilities. Starting at $599 for the 11-inch model and $799 for the 13-inch variant, the updated iPads are set to be available for pre-order with deliveries beginning on March 12.

The new devices are designed to meet growing demand for AI-powered features, such as enhanced writing and photo editing tools, helping Apple remain competitive against rivals like Samsung and Huawei.

Apple continues its strategy of integrating AI into its product ecosystem, recently introducing ‘Apple Intelligence’ to its devices, offering ChatGPT for tasks such as email composition and image editing.

Apple’s iPad sales have been robust, exceeding expectations during the holiday quarter, with over half of the sales attributed to new customers.

While the new iPad Air models come with double the storage and improved performance, Apple’s regular iPad has also been updated, though it will not feature the AI enhancements found in the Air. The move underlines Apple’s focus on integrating AI into its higher-end devices to attract tech-savvy consumers.

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EU plans legislation for car data access

The European Commission is preparing to introduce legislation that would allow insurers, leasing firms, and repair shops greater access to vehicle data.

The proposed law is expected to be published later this year, and it is a response to growing tensions between car service providers, automakers, and tech companies over the control and monetisation of valuable in-vehicle data.

Currently, vehicle data, ranging from driving habits to fuel efficiency, is not clearly defined in European law, leading to disputes over who owns it.

With the connected car market projected to be worth billions in the coming years, the Commission is stepping in to ensure that all sectors of the automotive industry can benefit from this data.

However, carmakers have expressed concerns, warning that the new law could compromise trade secrets and lead to misuse of sensitive information.

The debate has also highlighted fears about the dominance of Big Tech, with companies like Google and Apple already making inroads into car infotainment systems.

The Commission’s proposal could reshape the landscape by offering more equitable access to the data that is crucial for developing new products and services.

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Microsoft executive says firms are lagging in AI adoption

Microsoft’s UK boss has warned that many companies are ‘stuck in neutral’ when it comes to AI, with a significant number of private and public sector organisations lacking any formal AI strategy. According to a Microsoft survey of nearly 1,500 senior leaders and 1,440 employees in the UK, more than half of executives report that their organisations have no official AI plan. Additionally, many recognise a growing productivity gap between employees using AI and those who are not.

Darren Hardman, Microsoft’s UK chief executive, stated that some companies are caught in the experimentation phase rather than fully deploying AI. Microsoft, a major backer of OpenAI, has been promoting AI deployment in workplaces through autonomous AI agents designed to perform tasks without human intervention. Early adopters, like consulting giant McKinsey, are already using AI agents for tasks such as scheduling meetings.

Hardman also discussed AI’s potential impact on jobs, with the Tony Blair Institute estimating that AI could displace up to 3 million UK jobs, though the net job loss will likely be much lower as new roles are created. He compared AI’s transformative impact on the workplace to how the internet revolutionised retail, creating roles like data analysts and social media managers. Hardman also backed proposed UK copyright law reforms, which would allow tech companies to use copyright-protected work for training AI models, arguing that the changes could drive economic growth and support AI development.

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EU set to implement Entry/Exit System for border control

The European Union has reached an agreement to finally implement the long-awaited Entry/Exit System (EES), which will modernise border checks for short-stay travellers.

After several delays due to technical issues and a lack of readiness, the system is now set to begin operations in autumn, though a specific launch date has yet to be determined.

Member states will have the option to introduce the system all at once or in phases over a six-month transition period, with the full implementation to be completed by the end of the transition.

The EES, which was first proposed in 2016, aims to replace traditional passport stamping by collecting biometric data from non-EU visitors, including photos and fingerprints.

This data will be recorded each time visitors enter or exit the Schengen Area. The system is designed to improve border control, help authorities identify overstayers, and prevent identity fraud.

While Cyprus and Ireland will not participate in the new system, all other EU member states and four Schengen-associated countries will be involved.

Poland, which currently holds the EU Council’s rotating presidency, will lead negotiations with the European Parliament to finalise the law.

Tomasz Siemoniak, Poland’s Minister for Internal Affairs, indicated that a final agreement should be reached smoothly, with October set as the target for full implementation.

The EES is expected to provide authorities with new tools to enhance security and better manage borders within the Schengen Area.

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Aylo Holdings faces legal pressure over privacy concerns

Canada’s privacy commissioner has launched legal action against Aylo Holdings, the Montreal-based operator of Pornhub and other adult websites, for failing to ensure consent from individuals featured in uploaded content.

Commissioner Philippe Dufresne said Aylo had not adequately addressed concerns raised in an earlier investigation, which found the company allowed intimate images to be shared without the direct permission of those depicted.

A Federal Court order is being sought to enforce compliance with privacy laws in Canada. Aylo Holdings has denied violating privacy laws and expressed disappointment at the legal action.

The company claims it has been in ongoing discussions with regulators and has implemented significant measures to prevent non-consensual content from being shared. These include mandatory uploader verification, proof of consent for all participants, stricter moderation, and banning content downloads.

The case stems from a complaint by a woman whose ex-boyfriend uploaded intimate images of her without her consent.

Although Aylo says the incident occurred in 2015 and policies have since improved, the privacy commissioner insists that stronger enforcement is needed. The legal battle could have significant implications for content moderation policies in the adult entertainment industry.

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Kraken wins legal battle as SEC ends registration lawsuit

The US Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against cryptocurrency exchange Kraken, marking a significant shift in regulatory oversight under the new administration.

Kraken, which was accused of operating as an unregistered securities exchange, announced that the case was dismissed with prejudice, meaning it cannot be refiled. The company maintained that the lawsuit was politically motivated and hindered innovation in the crypto sector.

Kraken stated that the dismissal involved no admission of wrongdoing, no penalties, and no required changes to its business model.

The SEC had sued Kraken in 2023 as part of a broader crackdown on crypto firms under former SEC Chair Gary Gensler. However, the regulator has since scaled back its enforcement efforts, also ending a similar case against Coinbase and considering a resolution in its fraud case against entrepreneur Justin Sun.

The decision follows United States President Donald Trump’s appointment of Paul Atkins, a lawyer with a pro-crypto stance, to lead the SEC. Kraken remains one of the world’s largest cryptocurrency exchanges, ranking 10th globally in trading volume and liquidity.

The outcome signals a shift in the regulatory landscape, with growing support for digital assets under the current administration.

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DeepSeek highlights China’s rise in AI, Lou Qinjian says

DeepSeek’s progress is a clear sign of the growing influence of Chinese companies in the AI sector, according to a spokesperson for China’s parliament. Lou Qinjian, speaking to reporters on Tuesday, praised the achievements of DeepSeek’s young team, describing their work as ‘commendable’.

He highlighted the company’s open-source approach and its efforts to spread AI technology globally, contributing ‘Chinese wisdom’ to the world.

The AI startup has been widely celebrated in China, particularly for rolling out AI models that offer a significantly lower cost than those developed by US rivals like OpenAI.

While some countries, including South Korea and Italy, have removed DeepSeek’s chatbot from their app stores over privacy concerns, it has been embraced within China, where local governments and tech firms are integrating it into their systems.

Based in Hangzhou, DeepSeek is rapidly advancing its next-generation model, set to succeed its R1 release from January, as it continues to make waves in the global tech sector.

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