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EU reevaluates big tech probes amid shifting political landscape

The European Commission is reassessing its investigations into major tech companies, including Apple, Meta, and Google, under its landmark Digital Markets Act (DMA), according to the Financial Times. The review, which covers cases initiated since March 2024, comes as tech giants urge President-elect Donald Trump to push back against EU regulatory scrutiny. Sources suggest Trump’s presidency has influenced the review, though it was not the direct trigger.

The DMA, implemented in 2022, seeks to curb the dominance of Big Tech by imposing strict rules on their practices and fines of up to 10% of annual revenue for violations. The review may lead to narrowing or altering the scope of current probes, with all decisions and potential fines paused during this process. Technical work on the cases, however, will continue.

This development coincides with Meta’s recent overhaul of its US fact-checking program and CEO Mark Zuckerberg’s signals of a more conciliatory stance toward the Trump administration. Meanwhile, EU regulators are also examining whether Elon Musk’s social media platform X has violated content moderation rules, further highlighting the tech industry’s complex regulatory challenges.

Meta faces massive advertiser lawsuit after US Supreme Court decision

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.

Nvidia faces order delays as Blackwell chips overheat

Nvidia’s latest Blackwell AI chip racks are facing overheating issues, prompting major customers to delay or reduce their orders. Early shipments have reportedly suffered from technical glitches, affecting how the chips connect within data centre racks. As a result, companies including Microsoft, Amazon, Google, and Meta have scaled back their purchases, some opting for older Nvidia AI chips instead.

The hyperscalers had initially placed orders worth at least $10 billion each but are now reconsidering their plans. Microsoft, for example, intended to install 50,000 Blackwell chips in a Phoenix facility but has since switched to Nvidia’s previous-generation Hopper chips at OpenAI’s request. Nvidia has not commented on the situation, while Microsoft, Google, and Meta have yet to respond to inquiries.

Concerns over Nvidia’s sales extend beyond the overheating issues, as the US government has announced tighter restrictions on AI chip exports, potentially impacting revenue. Despite the setbacks, CEO Jensen Huang remains optimistic, stating that the company is still on track to generate billions in revenue from Blackwell chips this quarter. Huang has also denied earlier reports of overheating in liquid-cooled Blackwell servers.

Meta and Amazon scale back diversity programs amid changing political climate

Meta Platforms and Amazon have announced plans to wind down their diversity, equity, and inclusion (DEI) initiatives, reflecting shifting political and legal land scapes as Donald Trump prepares to return to the US presidency. Meta, in an internal memo, revealed it is discontinuing DEI programs related to hiring, training, and supplier selection, while Amazon is phasing out its representation and inclusion efforts, targeting completion by late 2024.

These moves come amid growing conservative opposition to DEI initiatives, which critics argue promote preferential treatment. The trend has gained momentum following a 2023 Supreme Court ruling that struck down affirmative action in university admissions. Meta Vice President Janelle Gale noted the legal shift, explaining that the term ‘DEI’ has become polarising, and courts are signalling changes in their approach to such programs.

Meta has also made high-profile changes to align with conservative leadership, elevating Republican Joel Kaplan as its chief global affairs officer and adding UFC CEO Dana White, a close Trump ally, to its board. The company’s relationship with Trump has softened recently, with Meta pledging $1 million to his inaugural fund in December. These developments mark a departure from the company’s previous focus on inclusive policies following the 2020 protests against racial injustice.

As political and cultural pressures mount, corporate America’s retreat from DEI programs signals a broader shift in how businesses approach diversity and inclusion, navigating the intersection of public sentiment, legal rulings, and political dynamics.

Meta accused of using pirated books for AI

A group of authors, including Ta-Nehisi Coates and Sarah Silverman, has accused Meta Platforms of using pirated books to train its AI systems with CEO Mark Zuckerberg’s approval. Newly disclosed court documents filed in California allege that Meta knowingly relied on the LibGen dataset, which contains millions of pirated works, to develop its large language model, Llama.

The lawsuit, initially filed in 2023, claims Meta infringed on copyright by using the authors’ works without permission. The authors argue that internal Meta communications reveal concerns within the company about the dataset’s legality, which were ultimately overruled. Meta has not yet responded to the latest allegations.

The case is one of several challenging the use of copyrighted materials to train AI systems. While defendants in similar lawsuits have cited fair use, the authors contend that newly uncovered evidence strengthens their claims. They have requested permission to file an updated complaint, adding computer fraud allegations and revisiting dismissed claims related to copyright management information.

US District Judge Vince Chhabria has allowed the authors to file an amended complaint but expressed doubts about the validity of some new claims. The outcome of the case could have broader implications for how AI companies utilise copyrighted content in training data.

Meta pushes free speech at the cost of content control

Meta has announced that Instagram and Threads users will no longer be able to opt out of seeing political content from accounts they don’t follow. The change, part of a broader push toward promoting “free expression,” will take effect in the US this week and expand globally soon after. Users will be able to adjust how much political content they see but won’t be able to block it entirely.

Adam Mosseri, head of Instagram and Threads, had previously expressed reluctance to feature political posts, favouring community-focused content like sports and fashion. However, he now claims that users have asked to see more political material. Critics, including social media experts, argue the shift is driven by changing political dynamics in the US, particularly with Donald Trump’s imminent return to the White House.

While some users have welcomed Meta’s stance on free speech, many worry it could amplify misinformation and hate speech. Experts also caution that marginalised groups may face increased harm due to fewer content moderation measures. The changes could also push discontented users toward rival platforms like Bluesky, raising questions about Meta’s long-term strategy.

Brazil’s Lula criticises Meta’s move to end US fact-checking program

Brazilian President Luiz Inácio Lula da Silva has condemned Meta’s decision to discontinue its fact-checking program in the United States, calling it a grave issue. Speaking in Brasília on Thursday, Lula emphasised the need for accountability in digital communication, equating its responsibilities to those of traditional media. He announced plans to meet with government officials to discuss the matter.

Meta’s recent decision has prompted Brazilian prosecutors to seek clarification on whether the changes will affect the country. The company has been given 30 days to respond as part of an ongoing investigation into how social media platforms address misinformation and online violence in Brazil.

Justice Alexandre de Moraes of Brazil’s Supreme Court, known for his strict oversight of tech companies, reiterated that social media firms must adhere to Brazilian laws to continue operating in the country. Last year, he temporarily suspended X (formerly Twitter) over non-compliance with local regulations.

Meta has so far declined to comment on the matter in Brazil, fueling concerns over its commitment to tackling misinformation globally. The outcome of Brazil’s inquiry could have broader implications for how tech firms balance local laws with global policy changes.

Meta to test eBay integration on Facebook Marketplace

Meta is set to trial a new feature allowing users in Germany, France, and the United States to browse eBay listings directly on Facebook Marketplace. Transactions will still be completed on eBay’s platform, but the integration aims to provide Facebook users with a wider selection of products while giving eBay sellers greater exposure.

The move follows a hefty $840 million fine imposed by the European Commission in November over alleged anticompetitive practices related to Facebook Marketplace. While Meta continues to appeal the decision, it says it is working to address regulators’ concerns. The European Commission has yet to comment on the latest development.

Meta’s partnership with eBay reflects broader efforts by tech companies to expand online marketplaces and enhance user experience. The initiative is expected to benefit both buyers and sellers by increasing reach and streamlining access to listings.

EU denies censorship claims made by Meta

The European Commission has rejected accusations from Meta CEO Mark Zuckerberg that European Union laws censor social media, saying regulations only target illegal content. Officials clarified that platforms are required to remove posts deemed harmful to children or democracy, not lawful content.

Zuckerberg recently criticised EU regulations, claiming they stifle innovation and institutionalise censorship. In response, the Commission strongly denied the claims, emphasising its Digital Services Act does not impose censorship but ensures public safety through content regulation.

Meta has decided to end fact-checking in the US for Facebook, Instagram and Threads, opting for a ‘community notes’ system. The system allows users to highlight misleading posts, with notes published if diverse contributors agree they are helpful.

The EU confirmed that such a system could be acceptable in Europe if platforms submit risk assessments and demonstrate effectiveness in content moderation. Independent fact-checking for European users will remain available for US-based content.

EU Court orders damages for data breach by Commission

In a landmark decision, the EU General Court ruled on Wednesday that the European Commission must pay €400 ($412) in damages to a German citizen for violating data protection laws. The case marks the first time the Commission has been held liable for failing to comply with its data regulations.

The court found that the Commission improperly transferred the citizen’s personal data, including an IP address, to Meta Platforms in the United States without adequate safeguards. The breach occurred when the individual used the ‘Sign in with Facebook’ option on the EU login webpage to register for a conference.

The Commission acknowledged the ruling, stating it would review the judgment and its implications. The decision underscores the robust enforcement of the EU’s General Data Protection Regulation (GDPR), which has led to significant penalties against major firms like Meta, LinkedIn, and Klarna for non-compliance.