European Commission charges €58.2 million in fees for DSA enforcement

The European Commission has charged the largest online platforms in the EU a total of €58.2 million in supervisory fees for their enforcement under the Digital Services Act (DSA).

These fees, which apply to platforms with over 45 million users per month, aim to fund the Commission’s activities for DSA enforcement, including administrative and human resource costs.

Meta, TikTok, and Google have filed five pending court cases against the fees, challenging the charges.

The DSA, designed to increase platform accountability, became fully applicable in February 2024, and the Commission has designated 25 Very Large Online Platforms, including major players like Amazon and LinkedIn.

During the 2024 period, the Commission launched formal proceedings against several platforms and sent over 100 requests for information.

However, instead of these fees fully covering the Commission’s expenses, they led to a deficit of €514,061. Investigations into platforms like X are ongoing, with transparency issues being a key concern.

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Runway expands AI video capabilities with Gen-4

Runway has unveiled Gen-4, its most advanced AI-powered video generator yet, promising superior character consistency, realistic motion, and world understanding.

The model is now available to individual and enterprise users, allowing them to generate dynamic videos using visual references and text-based instructions.

Backed by investors such as Google and Nvidia, Runway faces fierce competition from OpenAI and Google in the AI video space. The company has differentiated itself by securing Hollywood partnerships and investing heavily in AI-generated filmmaking.

However, it remains tight-lipped about its training data, raising concerns over copyright issues.

Runway is currently embroiled in a lawsuit from artists accusing the company of training its models on copyrighted works instead of getting permission. The company claims fair use as a defence.

Meanwhile, it is reportedly seeking new funding at a $4 billion valuation, with hopes of reaching $300 million in annual revenue. As AI video tools advance, concerns grow over their impact on jobs in the entertainment industry, with thousands of positions at risk.

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Apple expands AI features with new update

Apple Intelligence is expanding with new features, including Priority Notifications, which highlight time-sensitive alerts for users. This update is part of iOS 18.4, iPadOS 18.4, and macOS Sequoia 15.4, rolling out globally.

The AI suite is now available in more languages and has launched in the EU for iPhone and iPad users.

Additional improvements include a new Sketch style in Image Playground and the ability to generate ‘memory movies’ on Mac using simple text descriptions. Vision Pro users in the US can now access Apple Intelligence features like Writing Tools and Genmoji.

Apple’s AI rollout has been gradual since its introduction at WWDC last year, with features arriving in stages.

The update also brings fresh emojis, child safety enhancements, and the debut of Apple News+ Food, further expanding Apple’s digital ecosystem.

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OpenAI’s Ghibli-style tool raises privacy and data issues

OpenAI’s Ghibli-style AI image generator has taken social media by storm, with users eagerly transforming their photos into artwork reminiscent of Hayao Miyazaki’s signature style.

However, digital privacy activists are raising concerns that OpenAI might use this viral trend to collect thousands of personal images for AI training, potentially bypassing legal restrictions on web-scraped data.

Critics warn that while users enjoy the feature, they could unknowingly be handing over fresh facial data instead of protecting their privacy, raising ethical questions about AI and data collection.

Beyond privacy concerns, the trend has also reignited debates about AI’s impact on creative industries. Miyazaki, known for his hand-drawn approach, has previously expressed scepticism about artificial intelligence in animation.

Additionally, under GDPR regulations, OpenAI must justify data collection under “legitimate interest,” but experts argue that users voluntarily uploading images could give the company more freedom to use them instead of requiring further legal justification.

OpenAI has yet to issue an official statement regarding data safety, but ChatGPT itself warns users against uploading personal photos to any AI tool unless they are certain about its privacy policies.

Cybersecurity experts advise people to think twice before sharing high-resolution images online, use passwords instead of facial recognition for device security, and limit app access to their cameras.

As AI-generated image trends continue to gain popularity, the debate over privacy and data ownership is unlikely to fade anytime soon.

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Studio Ghibli AI trend overwhelms OpenAI

A wave of Studio Ghibli-style image generation has taken social media by storm, thanks to OpenAI’s new tool that lets users create art in the beloved animation style. The viral craze began in late March and quickly flooded platforms like TikTok and Instagram.

Initially amused, OpenAI CEO Sam Altman even joined in by updating his profile picture to a Ghibli-inspired version of himself. However, the trend’s popularity soon spiralled out of control, straining the company’s servers and pushing staff to their limits.

Altman has now urged users to ease off, describing the demand as ‘biblical’ and joking that his team needs sleep.

OpenAI plans to introduce temporary usage limits while it works to make the system more efficient. Fans, however, continue to flood Altman’s replies with memes and even more Ghibli art.

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DeepSeek overtakes ChatGPT in new visits, report shows

Chinese AI startup DeepSeek has emerged as the world’s fastest-growing AI tool, surpassing ChatGPT in new monthly website visits. In February alone, it recorded over 524 million fresh visits, edging past ChatGPT’s 500 million, according to analytics platform aitools.xyz.

Though still third overall behind ChatGPT and Canva in total traffic, DeepSeek’s market share rose sharply to 6.58%, with 792.6 million visits and 136.5 million unique users. India played a significant role, ranking fourth in traffic contribution with over 43 million monthly visits.

The report shows DeepSeek now holds over 12% of the global chatbot market. With the AI industry seeing more than 12 billion visits and 3 billion unique users last month, the rapid rise of DeepSeek signals intensifying competition in the AI space.

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Canada unveils self-assessment tool for privacy breaches

Privacy Commissioner of Canada Philippe Dufresne has introduced an online tool designed to help businesses and federal institutions assess the impact of privacy breaches.

The web-based self-assessment tool guides users through key questions to determine whether a breach poses a real risk of significant harm to individuals.

Organizations governed by the Personal Information Protection and Electronic Documents Act (PIPEDA) and federal institutions must report breaches that could cause harm, including financial loss, identity theft, or damage to reputation.

The tool assists users in evaluating data sensitivity and the likelihood of misuse, helping them determine if they must notify affected individuals and regulators.

Privacy breaches can result from cyberattacks, scams, or accidental data exposure, particularly involving sensitive health or financial information.

The Privacy Commissioner’s office aims to streamline risk assessments, ensuring compliance with federal privacy laws while improving data protection standards across Canada.

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EU regulators seek common approach on DSA

The Coimisiún na Meán has warned that differing interpretations of the Digital Services Act (DSA) by EU regulators are hindering a unified approach to online platform regulation.

Maria Donde, Director of International Affairs at Coimisiún na Meán, highlighted the challenges of aligning various regulators’ approaches to the DSA, which has left room for interpretation.

She emphasised the importance of finding common ground, especially as the DSA, which came into effect last February, imposes transparency and election integrity requirements on platforms.

The DSA requires each EU member state to appoint a Digital Services Coordinator as a point of contact for platforms. Ireland, home to major platforms like TikTok and X, is at the forefront of enforcement.

Donde stressed the need for a consistent voice within the EU, particularly as the law faces criticism globally. The US government has condemned the EU’s regulatory approach, calling it a threat to free speech and accusing Europe of sidelining US tech companies.

The European Commission has already initiated several investigations under the DSA, targeting platforms such as X, TikTok, and Temu. These probes are ongoing, with potential fines for non-compliance reaching up to 6% of a company’s global turnover.

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Elon Musk merges xAI and X to create XAI Holdings

Elon Musk’s AI startup xAI has officially acquired X, the social media platform (formerly Twitter), in an all-stock deal that values the two businesses combined at over $100 billion.

Musk disclosed that the transaction pegs xAI at $80 billion and X at $33 billion, though the latter includes $12 billion in debt, which brings its effective value to $45 billion.

The merged entity, XAI Holdings, streamlines Musk’s sprawling tech empire and solidifies the relationship between his AI pursuits and the platform that provides the training data.

According to Musk, the goal is to unify ‘data, models, compute, distribution and talent,’ enabling tighter integration between X’s reach and xAI’s growing capabilities.

This structural shift also clarifies to investors, many of whom have been concerned about X’s financial direction after Musk’s sweeping changes led to a loss of users and advertising partners.

Musk purchased Twitter in 2022 for $44 billion, which burdened the company with substantial debt. Since then, he has drastically altered the company’s operations and content policies under a ‘free speech absolutism philosophy,’ which has alienated many advertisers.

Although X’s advertising revenue dropped sharply post-acquisition, projections for 2025 show signs of recovery, with US ad sales expected to reach $1.31 billion, marking a 17.5% increase.

xAI, launched in 2023, has quickly positioned itself among leading AI labs. Its chatbot, Grok, has been trained using data from X, offering a competitive edge against other AI giants like OpenAI and Anthropic.

Analysts suggest that owning X gives xAI exclusive access to a rich proprietary data stream, something competitors lack. This advantage could strongly boost Grok’s development and positioning in the market.

Some investors in xAI, such as Andreessen Horowitz, Sequoia Capital, Fidelity, and BlackRock, also have stakes in X, making the merger a logical, if unexpected, evolution.

Financially, it also marks a turning point: banks that held onto Musk’s Twitter debt could finally sell it this year without losses, while X recently raised nearly $1 billion in new equity at a valuation close to its 2022 purchase price.

The merger may also influence broader industry trends. Analysts believe this move could inspire smaller social media platforms to seek strategic alliances with AI developers, especially given xAI’s high valuation.

One thing is clear: the XAI Holdings formation underscores a growing convergence between digital communication infrastructure and AI.

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French watchdog fines Apple for abuse of app tracking tool

Apple has been fined €150 million ($162.42 million) by French antitrust regulators for allegedly abusing its dominant position in mobile app advertising between 2021 and 2023. The fine is the first to be imposed on Apple over its App Tracking Transparency (ATT) tool.

While the tool, which allows iPhone and iPad users to control app tracking, is not criticised itself, the French competition watchdog claimed its implementation was excessive and not proportional to its goal of protecting personal data.

The French regulators stated that ATT particularly harmed smaller publishers, who rely heavily on third-party data for their business. Despite the fine, Apple was not required to modify the ATT tool.

The decision follows complaints from online advertisers, publishers, and internet networks, who accused Apple of misusing its market power. Apple expressed disappointment with the fine but noted that no changes to the tool were mandated.

The fine comes after a €1.8 billion penalty last year from the EU, which accused Apple of restricting music streaming competitors. Additionally, the German antitrust agency has launched a probe into Apple for allegedly giving itself preferential treatment with the same privacy tool.

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