Meta cuts jobs in Reality Labs

Meta has announced layoffs within its Reality Labs division, impacting Oculus Studios and hardware development teams. Among those affected is the team behind Supernatural, a popular VR fitness app that Meta acquired for over $400 million.

The company stated that these restructuring efforts aim to improve efficiency and focus on developing future mixed reality experiences, particularly in fitness and gaming. Despite reaffirming its commitment to VR and mixed reality, Meta’s moves reflect its Quest headset business challenges.

While its smart glasses partnership with Ray-Ban has exceeded sales expectations, Quest devices continue to underperform, with the latest Quest 3S already seeing discounts less than a year after release.

Why does it matter?

The layoffs signal Meta’s attempt to streamline operations as it navigates a shifting market for virtual and mixed reality. Although the company promises ongoing support for its VR communities, these changes highlight the pressures Meta faces in turning its ambitious metaverse and hardware ventures into sustainable success.

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DW Weekly #209 – Big Tech on global trial: lawsuits, data leaks, cryptocurrency and viral tendencies

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18 – 25 April 2025


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Dear readers,

The past week has delivered another wave of developments redefining the digital world. Legal battles involving Big Tech took centre stage on both sides of the Atlantic, with the EU and the USA involved in antitrust disputes, amid an escalating global trade war that may be fuelling this regulatory reckoning.

The EU has imposed its first fines under the Digital Markets Act (DMA), targeting Apple and Meta for anti-competitive practices. Apple faces a €500 million penalty for restricting app developers from directing users to alternative purchasing options outside its App Store. Meta has been fined €200 million for its ‘consent or pay’ model, which required users to either consent to personalised ads or pay a fee for an ad-free experience on Facebook and Instagram. ​

Meta is also facing fresh legal backlash in France as 67 French media companies representing over 200 publications filed a lawsuit alleging unfair competition in the digital advertising market.

European regulators are putting pressure on Big Tech, with Alphabet’s Google and Elon Musk’s X expected to be the next in line for penalties under the EU’s tough new digital rules. Despite US President Donald Trump’s objections, the EU appears undeterred, viewing the DMA as a veiled tariff on American tech firms.

On the other side of the Atlantic, we have the Google antitrust court case in the USA, where the US Department of Justice (DOJ) added the AI-driven search monopoly accusation to its court file. Namely, the DOJ launched its opening arguments in a long-awaited landmark antitrust trial against Google, aiming to curb the tech giant’s dominance in online search and prevent it from leveraging AI to entrench its position further.

One of the potential conditions for Google to comply with regulatory requirements may involve divesting its Chrome browser, for which OpenAI has expressed acquisition interest.

South Korea’s data protection authority has flagged serious privacy concerns over the operations of Chinese AI startup DeepSeek, accusing the company of transferring personal data and user-generated content abroad without consent.

Speaking of cryptocurrency, Paul Atkins has officially been sworn in as the 34th Chair of the US Securities and Exchange Commission (SEC). Known for his pro-crypto stance, Atkins is expected to bring much-needed clarity to digital asset regulations.

Dutch banking giant ING is preparing to launch a Euro-based stablecoin. It is teaming up with other financial institutions to form a consortium.

Staying in the Netherlands, Adyen, the Dutch payment processor, fell victim to three coordinated DDoS attacks on Monday evening, severely disrupting debit card and online payments.

A viral development of the past seven days is the story about a controversial new startup called Cluely, which has secured $5.3 million in seed funding to expand its AI-powered tool designed to help users ‘cheat on everything,’ from job interviews to exams.

To finish, the blog: Dr Jovan Kurbalija, the Director of Diplo, is dealing with AI and linguistics this time. In his blog ‘Linguists in the AI era: From resistance to renaissance,’ he introspects the shift from initial scepticism among linguists to a newfound synergy, as AI tools enhance language analysis, translation, and cultural understanding in diplomacy.

For the main updates and reflections, consult the Radar and Reading Corner below.

DW Team


RADAR

Highlights from the week of 18 – 25 April 2025

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The EU has fired its first regulatory shot under the Digital Markets Act, fining Apple €500M and Meta €200M for anti-competitive practices. As US-EU digital tensions grow, the tech giants…

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Prosecutors are calling for sweeping measures, including the sale of Chrome and a breakup of exclusive deals with device makers, including its Gemini app installed on Samsung devices, which reinforces…

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Cluely’s founders say their tool challenges outdated norms, but critics warn it could erode trust in recruitment and education.

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CISA has extended MITRE’s contract to operate the CVE program for 11 months, ensuring continuity of vulnerability tracking services. Meanwhile, a new non-profit CVE Foundation has been established to support…

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Low-cost retailers face up to 145% tariffs under revised US trade rules.

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Analysts warn of potential sell pressure as 40 million TRUMP tokens prepare to hit the market.

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Three DDoS attacks disrupted payment services on Monday, with full functionality only restored by 3:40 am, severely impacting Adyen’s operations.

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With over 20 years in capital markets, Paul Atkins takes charge at the SEC, eyeing reforms for digital asset regulations.

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Nick Turley revealed OpenAI lacks a deal with Google and struggles to expand ChatGPT’s presence on Android despite a successful Apple partnership.

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Digital asset exchanges like Kraken are expanding into traditional finance, highlighting the growing synergy between digital assets and Wall Street.

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Researchers warn of a phishing campaign using video call links to compromise Microsoft 365 accounts of NGOs focused on Ukraine and human rights issues.


READING CORNER
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In the context of Geneva’s multilingual landscape, the rise of AI has sparked both concern and opportunity within the linguistic community. While AI will automate many translation and interpretation tasks, linguists are essential for addressing the limitations of AI, particularly in navigating syntax and semantics.

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The Cuban Missile Crisis pushed humanity to the edge of catastrophe—but it also revealed the quiet strength of diplomacy. In a tense standoff between superpowers, backchannel negotiations and mutual restraint averted disaster.

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Why do ~80% of us say ‘please’ & ‘thank you’ to AI like ChatGPT? Explore the psychology, hidden costs, and what our AI politeness reveals about our humanity.

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Trainers, labs, surgeons, psychologists – all boost performance. But doping? That’s banned. Is the real scandal the drugs – or the unequal coronas of support? Aldo Matteucci examines.

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Demystifying AI: How to prepare international organisations for AI transformation? 🗓️ 29 April 2025 | 🕐 13:00–14:00 CEST

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Diplo Academy will launch the Humanitarian Diplomacy online diploma course on 16 September 2024 in partnership with the International Federation of Red Cross and Red Crescent Societies. Stay updated on courses by subscribing to their newsletter.

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The conference, organised by Medicus Mundi Schweiz, will provide a platform for examining the evolving role of AI and digital technologies in shaping public health and sexual and reproductive health…

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Trump and tech: After 100 days Date: 30 April 2025Time: 10.00 EST | 14.00 UTC | 16.00 CESTDuration: 90 minutesLocation: Online

Meta under scrutiny in France over digital Ad practices

Meta, the parent company of Facebook, is facing fresh legal backlash in France as 67 French media companies representing over 200 publications filed a lawsuit alleging unfair competition in the digital advertising market. 

The case, brought before the Paris business tribunal, accuses Meta of abusing its dominant position through massive personal data collection and targeted advertising without proper consent.

The case marks the latest legal dispute in a string of EU legal challenges for the tech giant this week. 

Media outlets such as TF1, France TV, BFM TV, and major newspaper groups like Le Figaro, Liberation, and Radio France are among the plaintiffs. 

They argue that Meta’s ad dominance is built on practices that undermine fair competition and jeopardise the sustainability of traditional media.

The French case adds to mounting pressure across the EU. In Spain, Meta is due to face trial over a €551 million complaint filed by over 80 media firms in October. 

Meanwhile, the EU regulators fined Meta and Apple earlier this year for breaching European digital market rules, while online privacy advocates have launched parallel complaints over Meta’s data handling.

Legal firms Scott+Scott and Darrois Villey Maillot Brochier represent the French media alliance.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta uses AI to spot teens lying about age

Meta has announced it is ramping up efforts to protect teenagers on Instagram by deploying AI to detect users who may have lied about their age. The technology will automatically place suspected underage users into Teen Accounts, even if their profiles state they are adults.

These special accounts come with stricter safety settings designed for users under 16. Those who believe they’ve been misclassified will have the option to adjust their settings manually.

Instead of relying solely on self-reported birthdates, Meta is using its AI to analyse behaviour and signals that suggest a user might be younger than claimed.

While the company has used this technology to estimate age ranges before, it is now applying it more aggressively to catch teens who attempt to bypass the platform’s safeguards. The tech giant insists it’s working to ensure the accuracy of these classifications to prevent mistakes.

Alongside this new AI tool, Meta will also begin sending notifications to parents about their children’s Instagram settings.

These alerts, which are sent only to parents who have Instagram accounts of their own, aim to encourage open conversations at home about the importance of honest age representation online.

Teen Accounts were first introduced last year and are designed to limit access to harmful content, reduce contact from strangers, and promote healthier screen time habits.

Instead of granting unrestricted access, these accounts are private by default, block unsolicited messages, and remind teens to take breaks after prolonged scrolling.

Meta says the goal is to adapt to the digital age and partner with parents to make Instagram a safer space for young users.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

DW Weekly #208 – US tariffs, the digital trade and digital policies court battles

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12 – 18 April 2025


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Dear readers,

Last week, we focused on the effects that the global trade war is producing worldwide. After President Trump’s administration increased tariffs, forcing major tech firms to rethink their strategies urgently, Apple swiftly responded to the looming trade barriers by orchestrating a record-breaking $2 billion iPhone airlift from India to the US, strategically sidestepping the elevated tariffs.

Meanwhile, the US has temporarily exempted certain critical electronics imported from China, including smartphones and semiconductor components, from tariff hikes.

The ripple effects of the US tariffs extend beyond US borders. South Korea, heavily reliant on its semiconductor exports, has launched an ambitious $23 billion investment into its domestic chip industry.

Parallel to the tariff turmoil, major US tech firms are embroiled in intensifying legal disputes concerning digital market dominance. The US Justice Department is pursuing legal action against Google, alleging monopolistic practices within its search and advertising services.

Echoing similar concerns, the Federal Trade Commission (FTC) is challenging Meta’s stronghold on the social media market, marking a critical moment in US antitrust enforcement.

These legal confrontations are not confined to the US. Japan recently directed Google to address its dominant position on Android search services, pressing for enhanced competition and user choice. 

In Europe, X (formerly Twitter) faces heightened scrutiny over its AI data-use policies, as the EU regulators investigate potential misuse of user data. 

Additionally, Meta has confirmed plans to utilise the EU user data for AI model training, prompting regulatory concerns and further legal scrutiny.

For the main updates and reflections, consult the Radar and Reading Corner below.

DW Team


RADAR

Highlights from the week of 12 – 18 April 2025

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The Global Blockchain Forum will bring together international crypto experts to discuss Bitcoin, adoption trends, and Russia’s crypto future.

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Community gains from DeepSeek’s open-source contributions.

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Despite significant investments, WLFI’s portfolio is down by $145.8 million, with losses primarily in its Ethereum holdings.

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Beijing claims US operatives targeted infrastructure and Huawei with NSA-led cyberattacks.

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Mayor Mizrachi confirmed Panama City’s plan to facilitate cryptocurrency payments, using banks to convert assets into fiat currency.

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Despite launching multiple probes under the Digital Services Act, the EU has yet to close any, prompting a recruitment push for its enforcement team.

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The US administration has tightened rules on AI chip exports, affecting AMD’s MI308 products and potentially causing major financial losses for the company.

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AI developers question Meta’s transparency after benchmark controversy.

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A cyber defence exercise involving 20 allied nations was held to strengthen coordination and improve response to attacks on critical infrastructure, led by NATO.

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Just 11% of El Salvador’s Bitcoin service providers are operational under the country’s Bitcoin Law, central bank data shows.

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As the global race to harness AI accelerates, a new international effort is working to ensure that progress doesn’t come at the cost of people or the planet.


READING CORNER
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What happens when machines not only speak like us but begin to mirror the subtleties of our personalities, emotions, and intentions — and we can no longer tell the difference?

BLOG featured image 2025 56

How do words get their meaning? Aldo Matteucci shows how terms like ‘dispositif’ and ‘consul’ gain meaning not through definitions, but through repeated use in historical and political contexts.

UPCOMING EVENTS
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23 April 2025
The event will provide a timely discussion on methods, approaches, and solutions for AI transformation of International Organisaitons. 
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Conversation on IP and AI will take place on April 23-24, 2025, focusing on the role of copyright infrastructure in supporting both rights holders and AI-driven innovation.

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The Hamburg Sustainability Conference (HSC) is a global gathering of leaders and changemakers from governments, international organizations, businesses, civil society, and academia. Together, they co-create innovative solutions for a sustainable and fair future. The next conference is scheduled for 2-3 June 2025.  

Businesses face Meta account lockouts

Small businesses are increasingly falling victim to scams targeting their Instagram and Facebook accounts, with many reporting long and frustrating recovery processes.

Wedding dress designer Catherine Deane, whose Instagram account was hacked through a fake verification link, described the experience as ‘devastating’ and said it took four months and persistent efforts to regain access.

Despite repeated emails to Meta, the issue was only resolved after a team member contacted someone within the company directly.

Cybersecurity experts say such cases are far from isolated. Jonas Borchgrevink, head of US-based firm Hacked.com, said thousands of business accounts are compromised every day, with some clients paying for help after months of failed recovery attempts.

Scammers often pose as Meta support, using convincing branding and AI-generated messages to trick victims into revealing passwords or verifying accounts on fake websites. These tactics allow them to gain control of business profiles and demand ransoms or post fraudulent content.

Meta has declined to disclose the full scale of the problem but says it encourages users to enable security features like two-factor authentication and regularly check their account safety. Some businesses, however, report being locked out despite not being hacked.

Others say Meta has wrongly removed pages without notice, with limited recourse or explanation. Calls are growing for the company to improve its support systems and take faster action to help affected businesses recover access to their vital online platforms.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

FTC challenges Meta’s dominance in social media trial

Mark Zuckerberg has defended Meta’s high-profile acquisitions of Instagram and WhatsApp during testimony in a major antitrust trial brought by the US Federal Trade Commission.

On the stand for a second day, the Meta CEO admitted the company could have developed its own rival to Instagram, but noted that building successful apps is extremely difficult.

Emails presented by the FTC showed Zuckerberg expressing concern about Instagram’s rapid growth in 2012 and WhatsApp’s dominance in messaging before both were bought by Meta.

The FTC argues that Meta unfairly stifled competition by acquiring its closest rivals instead of innovating independently. It is pushing for the breakup of Meta, saying that platforms like Instagram might have become major standalone competitors.

Zuckerberg, however, claimed that competition in the social media space remains intense, pointing to platforms such as TikTok, YouTube, and X. He insisted that Instagram was acquired mainly for its advanced camera technology, not to eliminate a competitor.

Emails from 2018 suggest that Zuckerberg anticipated future regulatory scrutiny and even considered the possibility of spinning off the company’s acquisitions.

The antitrust trial, set to last several weeks, will feature testimony from key industry figures including Sheryl Sandberg and Instagram co-founder Kevin Systrom. If the court rules in favour of the FTC, a second phase will determine how to dismantle the alleged monopoly.

For more information on these topics, visit diplomacy.edu.

Meta to use EU user data for AI training amid scrutiny

Meta Platforms has announced it will begin using public posts, comments, and user interactions with its AI tools to train its AI models in the EU, instead of limiting training data to existing US-based inputs.

The move follows the recent European rollout of Meta AI, which had been delayed since June 2024 due to data privacy concerns raised by regulators. The company said EU users of Facebook and Instagram would receive notifications outlining how their data may be used, along with a link to opt out.

Meta clarified that while questions posed to its AI and public content from adult users may be used, private messages and data from under-18s would be excluded from training.

Instead of expanding quietly, the company is now making its plans public in an attempt to meet the EU’s transparency expectations.

The shift comes after Meta paused its original launch last year at the request of Ireland’s Data Protection Commission, which expressed concerns about using social media content for AI development. The move also drew criticism from advocacy group NOYB, which has urged regulators to intervene more decisively.

Meta joins a growing list of tech firms under scrutiny in Europe. Ireland’s privacy watchdog is already investigating Elon Musk’s X and Google for similar practices involving personal data use in AI model training.

Instead of treating such probes as isolated incidents, the EU appears to be setting a precedent that could reshape how global companies handle user data in AI development.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Benchmark backlash hits Meta’s Maverick model

Meta’s latest open-source language model, Llama 4 Maverick, has ranked poorly on a widely used AI benchmark after the company was criticised for initially using a heavily modified, unreleased version to boost its results.

LM Arena, the platform where the performance was measured, has since updated its rules and retested Meta’s vanilla version.

The plain Maverick model, officially named ‘Llama-4-Maverick-17B-128E-Instruct,’ placed behind older competitors such as OpenAI’s GPT-4o, Anthropic’s Claude 3.5 Sonnet, and Google’s Gemini 1.5 Pro.

Meta admitted that the stronger-performing variant used earlier had been ‘optimised for conversationality,’ which likely gave it an unfair advantage in LM Arena’s human-rated comparisons.

Although LM Arena’s reliability as a performance gauge has been questioned, the controversy has raised concerns over transparency and benchmarking practices in the AI industry.

Meta has since released its open-source model to developers, encouraging them to customise it for real-world use and provide feedback.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta under fire for scrapping diversity and moderation policies

The NAACP Legal Defense Fund (LDF) has withdrawn from Meta’s civil rights advisory group, citing deep concerns over the company’s rollback of diversity, equity and inclusion (DEI) policies and changes to content moderation.

The decision follows Meta’s January announcement that it would end DEI programmes, eliminate factchecking teams, and revise moderation rules across its platforms.

Civil rights organisations, including LDF, expressed alarm at the time, warning that the changes could silence marginalised voices and increase the risk of online harm.

In a letter to Meta CEO Mark Zuckerberg, they criticised the company for failing to consult the advisory group or consider the impact on protected communities. LDF’s Todd A Cox later said the policy shift posed a ‘grave risk’ to Black communities and public discourse.

LDF also noted that the company had seen progress under previous DEI policies, including a significant increase in Black and Hispanic employees.

Its reversal, the group argues, may breach federal civil rights laws and expose Meta to legal consequences.

LDF urged Meta to assess the effects of its policy changes and increase transparency about how harmful content is reported and removed. Meta has not commented publicly on the matter.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!