Allstate is facing a lawsuit from the state of Texas over claims that it secretly tracked millions of drivers through their mobile phones without consent. Texas Attorney General Ken Paxton alleges that the insurer collected location data through apps like GasBuddy and Life360 to create a vast driving behaviour database. The data was then used to raise insurance premiums, deny coverage, or sell to other insurers for profit.
The lawsuit also claims Allstate recently started purchasing vehicle location data directly from manufacturers, including Toyota, Mazda, and Stellantis brands like Jeep and Dodge. Texas accuses the company of violating state laws on data privacy and deceptive insurance practices. Prosecutors are seeking financial penalties, consumer restitution, and the destruction of unlawfully obtained data.
General Motors faced a similar lawsuit from Texas last year over allegations of secretly collecting and selling driver data. Allstate, headquartered in Illinois, has yet to respond to the claims. If found guilty, the company could face significant fines and legal consequences.
The US government has officially labelled the extreme right-wing ‘Terrorgram’ network as a terrorist organisation, citing its promotion of violent white supremacist attacks. The group operates mainly on the Telegram platform and has been linked to attacks across the globe, including shootings and planned assaults on critical infrastructure.
The move, announced by the State Department, includes sanctions against three of the network’s leaders based in Brazil, Croatia, and South Africa. The designation freezes any US-based assets belonging to the group and bans Americans from engaging with its members. Officials say the collective has provided detailed guidance for attacks on minorities and government officials, calling for a race war.
US authorities have been ramping up efforts to combat domestic extremism under President Biden, who launched the country’s first national strategy on countering domestic terrorism in 2021. Britain has already taken similar steps, outlawing the Terrorgram collective in April last year.
This crackdown follows criminal charges brought against two alleged leaders of the group, accused of using Telegram to incite violence against Black, Jewish, LGBTQ, and immigrant communities. Authorities stress that dismantling such online hate groups is essential to prevent further extremist attacks.
The US Supreme Court has rejected Meta’s attempt to block a massive class action lawsuit by advertisers accusing the company of inflating audience metrics. Advertisers claim Meta, the parent company of Facebook and Instagram, overstated the number of potential ad viewers, resulting in significant overcharges.
A lower court ruled that advertisers could seek damages collectively, stating Meta’s conduct was consistent across all affected parties. Plaintiffs, led by DZ Reserve and Cain Maxwell, argue Meta exaggerated potential audience figures by as much as 400%, focusing on social media accounts rather than unique users.
Meta challenged the decision, stating courts have rejected the ‘common course of conduct’ standard and that individual advertisers may not have relied on the figures. The company further criticised the court for excessive leniency when certifying class actions.
Potential damages could exceed $7 billion, covering millions of advertisers since 2014. Advertising remains Meta’s primary revenue source, with $116.1 billion generated in the first nine months of 2024.
Indonesia is preparing to introduce regulations setting a minimum age for social media users, aiming to shield children from potential online risks, according to Communications Minister Meutya Hafid. The announcement follows Australia’s recent ban on social media access for children under 16, which imposes penalties on platforms like Meta’s Facebook and Instagram, as well as TikTok, for non-compliance.
While the specific age limit for Indonesia remains undecided, Minister Hafid stated that President Prabowo Subianto supports the initiative, emphasising the importance of child protection in the digital space. The move highlights concerns about young users’ exposure to inappropriate content and data privacy risks.
Indonesia, with a population of approximately 280 million, has significant internet usage. A recent survey found internet penetration at 79.5%, with nearly half of children under 12 accessing the web, often using platforms like Facebook, Instagram, and TikTok. Among “Gen Z” users aged 12 to 27, internet penetration reached 87%. The proposed regulation reflects growing global efforts to prioritise child safety online.
Britain’s antitrust regulator, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search operations to assess their impact on consumers, businesses, and competition. With Google handling 90% of UK online searches and supporting over 200,000 businesses through advertising, the CMA aims to ensure fair competition and innovation in search services, said CMA chief Sarah Cardell.
The probe will evaluate whether Google’s dominant position restricts market entry and innovation, as well as whether it provides preferential treatment to its own services. The CMA will also investigate the company’s extensive collection and use of consumer data, including its role in AI services. The findings, expected within nine months, could lead to measures such as requiring Google to share data with rivals or giving publishers more control over their content.
Google has defended its role, stating that its search services foster innovation and help UK businesses grow. The company pledged to work constructively with the CMA to create rules that benefit both businesses and users. The investigation follows similar scrutiny in the US, where prosecutors have pushed for major reforms to curb Google’s dominance in online search.
Chinese officials are reportedly considering selling TikTok’s US operations to Elon Musk, the billionaire owner of X (formerly Twitter), if the app cannot avoid a looming US ban. According to a Bloomberg report, this move is being discussed as a contingency, although Beijing prefers TikTok to remain under the control of its parent company, ByteDance.
ByteDance, which partially owns TikTok, is under scrutiny due to its ‘golden share’ arrangement with the Chinese government, a setup some US lawmakers claim gives Beijing influence over the platform. While Chinese officials are exploring options, no consensus has been reached on whether a competitive sale or a government-coordinated arrangement would be the path forward.
One potential scenario would see Musk’s platform, X, taking over TikTok’s US operations and running them jointly. However, whether ByteDance, TikTok, or Musk are actively discussing such a deal is unclear. TikTok has consistently maintained that China’s ‘golden share’ does not affect its global operations outside China, including the US.
TikTok and Musk have declined to comment on the matter, with a TikTok spokesperson dismissing the reports as ‘pure fiction.’
Meanwhile, Beijing’s deliberations suggest that the app’s future may slip out of ByteDance’s control as concerns over data sovereignty and geopolitical tensions intensify.
Microsoft has taken legal action against a group accused of bypassing security measures in its Azure OpenAI Service. A lawsuit filed in December alleges that the unnamed defendants stole customer API keys to gain unauthorised access and generate content that violated Microsoft’s policies. The company claims the group used stolen credentials to develop hacking tools, including software named de3u, which allowed users to exploit OpenAI’s DALL-E image generator while evading content moderation filters.
An investigation found that the stolen API keys were used to operate an illicit hacking service. Microsoft alleges the group engaged in systematic credential theft, using custom-built software to process and route unauthorised requests through its cloud AI platform. The company has also taken steps to dismantle the group’s technical infrastructure, including seizing a website linked to the operation.
Court-authorised actions have enabled Microsoft to gather further evidence and disrupt the scheme. The company says additional security measures have been implemented to prevent similar breaches, though specific details were not disclosed. While the case unfolds, Microsoft remains focused on strengthening its AI security protocols.
Italy is exploring a potential agreement with Elon Musk’s Starlink to provide secure satellite communications for government and defence officials. The proposed five-year deal, worth €1.5 billion, would enable encrypted communications in high-risk areas. An Italian representative for Musk’s aerospace businesses stated that the country would retain full control over its data while using the technology.
Opposition parties have criticised the project, questioning whether a company owned by the US billionaire should handle sensitive Italian communications. Prime Minister Giorgia Meloni, who has faced scrutiny over her ties with Musk, dismissed concerns, insisting that discussions about the deal began before her government took office in 2022.
Starlink, a subsidiary of SpaceX, operates 6,700 satellites in low-Earth orbit and is a dominant player in global satellite communications. While the Italian government evaluates the deal, officials maintain that national interests and data security would remain protected.
Unacast has informed Norwegian authorities of a data breach involving its subsidiary Gravy Analytics. The announcement was revealed in a notice published by Norwegian broadcaster NRK.
The breach involved a compromised web server using a misappropriated key, with some stolen files potentially containing personal data. Unacast’s legal representatives, BakerHostetler, confirmed the breach was discovered on 4 January, though the exact timing remains under investigation.
Repeated attempts to reach Unacast and its legal team for comment have gone unanswered. Norway’s data protection authority also could not be reached for further statements after business hours on Friday.
Hewlett Packard Enterprise (HPE) has secured a deal worth over $1 billion to supply AI-optimised servers to Elon Musk’s platform X. The agreement, finalised late last year, was reported by Bloomberg News, citing sources familiar with the matter. Dell Technologies and Super Micro Computer had also submitted bids but were not selected.
The AI server market has experienced significant demand as businesses seek advanced hardware for AI applications. Musk’s ventures, includingTesla and xAI, have become key customers for this technology.
HPE shares saw a 1% rise during afternoon trading following the report. The company declined to comment on the deal.
