Two technology trade groups have filed a lawsuit against the US Consumer Financial Protection Bureau (CFPB), aiming to block a rule granting the agency oversight of payment apps and digital wallets offered by large non-bank companies. The rule, announced in November, targets companies handling over 50 million transactions annually, including platforms like Apple Wallet, Google Pay, and Venmo.
The groups, NetChoice and TechNet, argue the rule is an overreach of the US CFPB’s authority, claiming it stifles innovation and increases costs. They assert that the bureau failed to identify specific consumer risks justifying such oversight. CFPB Director Rohit Chopra, however, defended the measure, saying it ensures users of digital payments receive the same protections against fraud and privacy violations as traditional banking customers.
The lawsuit raises concerns about the potential impact on competition and innovation within the digital payments sector. With uncertainty over whether the incoming Republican administration will seek to modify or repeal the rule, the legal challenge underscores ongoing tensions between regulators and the tech industry.
The world of online dating is set for a significant shake-up as companies turn to AI to enhance user experiences. Major platforms like Tinder, Hinge, and Bumble are introducing AI-powered features aimed at improving matchmaking, personalising user journeys, and offering support for daters.
Hinge, part of the Match Group, plans to launch an AI-driven dating coach next year, helping users refine profiles and navigate conversations. Similarly, Bumble’s AI safety tools and enhanced matchmaking algorithms are already shaping the dating experience. These innovations aim to move dating apps from self-service platforms to guided experiences tailored to individual needs.
Experts believe AI could reduce the frustrations of early-stage communication by identifying more compatible matches and even offering tools like AI concierges to assist with planning dates. While the integration of AI into online dating is still in its early stages, the industry is poised for transformative changes that could redefine how people connect online.
The Telecom Regulatory Authority of India (TRAI) and Google have introduced new regulations to enhance user security and reduce spam. These changes are particularly significant for mobile users in India, focusing on improving the safety of online transactions and the quality of applications available for download. By implementing these measures, TRAI and Google are taking proactive steps to safeguard digital interactions, ensuring users can navigate their smartphones with greater confidence and security.
A key component of this initiative is TRAI’s new directive to combat spam calls and fraudulent messages. That regulation requires telecom operators to block unregistered numbers immediately, which is intended to protect users from scams. However, this measure may delay receiving one-time passwords (OTPs) during online transactions, as institutions like banks must register and allow their numbers to continue sending OTPs without interruption. While this could cause minor inconveniences, it is a crucial step toward preventing fraudulent activities and enhancing overall security for users.
In conjunction with TRAI’s efforts, Google has ramped up its policies to remove low-quality and potentially harmful apps from its Play Store. The following initiative aims to mitigate risks associated with malware and ensure that only trustworthy applications are accessible to users. By eliminating these problematic apps, Google creates a safer environment for users to download and use applications without compromising their personal information. The crackdown on low-quality apps is expected to significantly reduce the risk of malware, providing a more secure digital experience for all users.
Japan has passed a new law requiring tech giants like Google and Apple to allow access to third-party smartphone apps and payment systems on their platforms, threatening substantial fines for non-compliance. Like the EU’s Digital Markets Act, this legislation mandates fair access to operating systems, browsers, and search engines, with fines reaching up to 30% of revenue for continued anti-competitive behaviour.
The law was approved by Japan’s National Diet with no amendments and aimed to align Japan’s digital market regulations with those of the United States and Europe. That move is intended to foster fair competition and improve the competitive environment for software, such as app stores while ensuring consumer security. The law is set to take effect by the end of 2025.
Japan’s Fair Trade Commission highlighted the necessity for this new legal framework to address the dominance of major tech companies. Although the law does not explicitly name companies, it targets those like Google and Apple, often seen as a ‘duopoly’ in the smartphone app market. The EU’s similar regulatory efforts, particularly the Digital Markets Act, have faced criticism from Apple regarding potential risks to user privacy and security.
Google has issued new guidance for developers building AI apps distributed through Google Play in response to growing concerns over the proliferation of AI-powered apps designed to create deepfake nude images. The platform recently announced a crackdown on such applications, signalling a firm stance against the misuse of AI for generating non-consensual and potentially harmful content.
The move comes in the wake of alarming reports highlighting the ease with which these apps can manipulate photos to create realistic yet fabricated nude images of individuals. Reports have surfaced about apps like ‘DeepNude’ and its clones, which can strip clothes from images of women to produce highly realistic nude photos. Another report detailed the widespread availability of apps that could generate deepfake videos, leading to significant privacy invasions and the potential for harassment and blackmail.
Apps offering AI features have to be ‘rigorously tested’ to safeguard against prompts that generate restricted content and have to provide a way for users to signal it. Google strongly suggests that developers document the recommended tests before launching them, as Google could ask them to be reviewed in the future. Additionally, developers can’t advertise that their app breaks any of Google Play’s rules at the risk of getting banned from the app store. The company is also publishing other resources and best practices, like its People + AI Guidebook, which aims to support developers building AI apps.
Why Does It Matter?
The proliferation of AI-driven deepfake apps on platforms like Google Play undermine personal privacy and consent by allowing anyone to generate highly realistic and often explicit content of individuals without their knowledge or consent. Such misuse can lead to severe reputational damage, harassment, and even extortion, affecting both individuals and public figures alike.
Indonesia’s President Joko Widodo has mandated a halt on the development of new government mobile applications, aiming to streamline and integrate the existing 27,000 apps managed by various ministries and regional administrations. This directive is part of a broader initiative to enhance public service efficiency and reduce bureaucratic complexities. Widodo highlighted the redundancy of creating new applications with each change in leadership and emphasised the importance of simplifying public service access.
At the launch of INA Digital, a platform designed to consolidate these services, Widodo noted that this integration could save significant government funds previously allocated for new app development. The INA Digital initiative is not a new application but a system intended to unify access to various government services through a single sign-in process. Although users will still need different apps for specific services, the integration aims to ease the overall user experience.
Minister of State Apparatus Utilisation and Bureaucratic Reform Abdullah Azwar Anas mentioned that INA Digital would integrate services from at least 15 ministries by September. The development of this super application is spearheaded by 400 local digital talents under GovTech Indonesia, led by Perum Peruri, in collaboration with various government entities. The project is expected to be available to the public within four months following its trial phase.
The initiative is part of a strategic move to improve digital governance and public service delivery in Indonesia, addressing efficiency and cybersecurity concerns. The country has faced significant cybersecurity threats, with a notable breach of the General Elections Commission’s database in November 2023, underscoring the urgent need for robust digital infrastructure.
In April 2021, Apple introduced a feature that allowed iPhone users to choose not to be followed by different apps. Following the lead, Google also announced a plan to disable tracking tech in its Chrome web browser by 2023, and said it was working on limiting data sharing on Android phones.
The privacy measures introduced by Apple on the iPhone could have been less significant than initially thought. In spite of that, they are bringing some changes to the way online tracking is conducted, but also to the advertising industry.
Third-party tracking, which relies heavily on trailing internet users across websites they visit, is being incrementally substituted by what has been called ‘first-party’ tracking. Companies are focused on gathering information on what people are doing on their own website or app with user consent. Companies have practiced this kind of tracking for a long time, but the backlash against third-party tracking is making it increasingly important for the ad industry.
The collateral effect of first-party tracking is that companies that can collect a voluminous amount of data, due to their large number of users (such as Google and Amazon), are also well-positioned to offer their ad services to third parties. Therefore, the unintended effect of first-party tracking could strengthen the position of large tech companies. Topic: Digital Business Models
