US

Trump’s new cryptocurrency venture draws attention

Donald Trump has unveiled a new cryptocurrency business, World Liberty Financial, during a live event on X Spaces. However, few details were provided about the company, its formation, or financing. The timing of the launch, just before the upcoming election, is unusual, but Trump aims to attract digital asset advocates.

The former president, once a critic of cryptocurrencies, has now embraced them, pledging to make the US the ‘crypto capital of the planet’. He promises minimal regulation and a national bitcoin reserve. This shift is seen as part of his strategy to appeal to tech-savvy voters.

Trump’s two sons, Eric and Donald Jr., have actively promoted the project, claiming it will revolutionise digital asset finance. Despite these bold statements, specifics about how World Liberty Financial will operate remain unclear.

Trump’s cryptocurrency move, combined with his evolving stance on digital assets, signals his focus on emerging financial technologies as a key aspect of his re-election campaign, looking to capitalise on the growing interest in the sector.

Drone technology smuggling: Russian man charged in US

A Russian national has been arrested in Florida on charges of illegally exporting drone-related technology to Russia. Authorities allege that 44-year-old Denis Postovoy, residing in Sarasota, smuggled microelectronic components with military applications to Russia following the 2022 invasion of Ukraine.

Postovoy is accused of violating US law by shipping technology that could enhance Russia’s military capabilities in the conflict. The Department of Justice stated that the exported components are used in drones and have dual-use potential for military purposes.

To conceal his activities, Postovoy allegedly worked through a network of companies in Russia and Hong Kong. He is said to have purchased the components from US distributors and sent them to intermediary locations before reaching Russia.

While the Russian embassy has acknowledged Postovoy’s detention, it noted no official communication from US law enforcement regarding the arrest has been received.

TikTok faces legal battle over potential US ban

TikTok and its parent company ByteDance are locked in a high-stakes legal battle with the US government to prevent a looming ban on the app, used by 170 million Americans. The legal confrontation revolves around a US law that mandates ByteDance divest its US assets by 19 January or face a complete ban. Lawyers for TikTok argue that the law violates free speech and is an unprecedented move that contradicts America’s tradition of fostering an open internet. A federal appeals court in Washington recently heard arguments from both sides, with TikTok’s legal team pushing for an injunction to halt the law’s implementation.

The US government, represented by the Justice Department, contends that TikTok’s Chinese ownership poses a significant national security threat, citing the potential for China to access American user data or manipulate the flow of information. This concern is at the core of the new legislation passed by Congress earlier this year, highlighting the risks of having a popular social media platform under foreign control. The White House, while supportive of curbing Chinese influence, has stopped short of advocating for an outright ban.

ByteDance maintains that divesting TikTok is neither technologically nor commercially feasible, casting uncertainty over the app’s future as it faces potentially severe consequences amid a politically charged environment.

The case comes at a pivotal moment in the US political landscape, with both presidential candidates, Donald Trump and Kamala Harris, actively using TikTok to engage younger voters. The judges expressed concerns over the complexities involved, especially with monitoring the massive codebase that powers TikTok, making it difficult to assess risks in real-time. As the legal wrangling continues, a ruling is expected by 6 December, and the case may eventually reach the US Supreme Court.

Legal showdown could decide TikTok ban in US

TikTok is facing a critical legal battle that could determine the future of the app in the US. On Monday, the US Court of Appeals in Washington, DC, will hear arguments from TikTok and its parent company, ByteDance, as they seek to block a new law that threatens to ban the app by 19 January 2024. With around 170 million US users, TikTok’s fate hangs in the balance just as the presidential election ramps up.

Donald Trump, the Republican candidate, and Vice President Kamala Harris are using TikTok to engage with younger voters, underscoring the app’s significant political and social influence. However, the US government remains concerned about national security risks, particularly the potential for China to access American user data through the app. Lawmakers passed the measure, calling for ByteDance to divest from TikTok, citing fears of surveillance.

ByteDance argues that the law violates free speech and insists that divesting from TikTok is not feasible. With a looming January deadline for a sale or a potential ban, TikTok’s legal team is seeking a ruling by early December. This would allow the US Supreme Court time to consider the case before any decision takes effect. President Joe Biden, who signed the law in April, holds the power to extend the deadline if ByteDance shows progress toward selling TikTok.

While the White House maintains that the move is about national security, not eliminating TikTok, the upcoming court ruling will be pivotal in shaping the app’s future in the US and possibly beyond.

US DoJ takes Google to court over monopoly

Google is facing another antitrust battle in a Virginia court, where the US Justice Department has accused the tech giant of monopolising the online advertising industry. Prosecutors argue that Google controls the infrastructure that handles hundreds of thousands of ad sales each second, using its size and dominance to push out competitors and restrict customer choice.

The trial, which US District Judge Leonie Brinkema is hearing, focuses on claims that Google acquired rivals and manipulated market transactions to gain control over both advertisers and publishers. The government’s case highlights how Google allegedly stifled competition and locked customers into its products, tactics reminiscent of traditional monopolies.

Google’s defence, led by attorney Karen Dunn, refuted the accusations by arguing that the case is based on outdated market conditions. She noted that Google now faces significant competition from other major tech companies like Amazon and Comcast and that its tools have evolved to work alongside its rivals.

As the trial progresses, prosecutors push for Google to be forced to sell off essential parts of its ad business, including Google Ad Manager. The case is part of a broader effort by US authorities to curb the dominance of Big Tech, with other lawsuits targeting companies such as Apple, Meta, and Amazon.

Coinbase faces class action over SEC lawsuit and asset risks

A US federal judge has rejected Coinbase’s attempt to dismiss a class-action lawsuit from shareholders. The lawsuit claims that Coinbase, the largest US cryptocurrency exchange, misled investors by downplaying the chances of facing legal action from the US Securities and Exchange Commission (SEC). The ruling comes 15 months after the SEC sued Coinbase for allegedly operating as an unregistered securities exchange, leading to a significant drop in the company’s stock price.

The shareholders argue that Coinbase and its top executives falsely portrayed the company’s position, emphasising that the crypto assets it listed were not securities and thus unlikely to attract regulatory action. Additionally, they allege that the company misled investors about the risks customers faced regarding their assets in the event of bankruptcy. Coinbase’s share price fell sharply after revealing disappointing earnings and adding new disclosures in May 2022.

While the judge dismissed claims that Coinbase falsely denied engaging in proprietary trading, some allegations can proceed, including those about misrepresenting risks to customer assets. Coinbase remains confident in its legal standing and is prepared to defend its case in court.

US Senate to scrutinise semiconductor firms over chips found in Russian weapons in Ukraine

The US Senate Permanent Subcommittee on Investigations will hold a hearing on Tuesday to examine the use of American-manufactured semiconductors in Russian weapons deployed in Ukraine. The hearing will feature executives from Analog Devices, Advanced Micro Devices (AMD), Intel, and Texas Instruments, who will address concerns about their products being found in Russian military equipment despite US export controls.

Senator Richard Blumenthal, who chairs the panel, has expressed concerns that US semiconductor manufacturers need to enhance efforts to prevent their chips from being misused by the Russian military. The investigation follows reports indicating that US-origin technology, including chips used in various weapons and military equipment, continues to appear on the battlefield.

Intel, AMD, Texas Instruments, and Analog Devices are sending vice presidents responsible for trade compliance to testify. The companies have stated their commitment to complying with export controls and combating illicit diversion of their products, though the effectiveness of these measures will be scrutinised during the hearing.

Google faces antitrust trial in US over ad dominance

Google is set to face a critical antitrust trial as the US Department of Justice targets the tech giant’s advertising practices, accusing the company of using its dominance to stifle competition and harm news publishers. The legal case will be heard in Alexandria, Virginia, and marks another important move in the Biden administration’s broader campaign to curb the influence of Big Tech through the enforcement of antitrust laws.

The trial will scrutinise Google’s less-visible but highly lucrative adtech system, which connects advertisers with website publishers and accounted for over 75% of Google’s $307.4 billion in revenue last year. While the Justice Department recently won against Google in a separate case concerning the company’s search engine monopoly, this new trial will delve into how Google allegedly maintains a ‘privileged position’ as the dominant middleman in the digital advertising market.

Prosecutors and a coalition of states argue that Google’s dominance in adtech is due to its strategy of tying together tools for advertisers and publishers, effectively controlling critical parts of the advertising ecosystem. They claim Google controls 91% of the ad server market, over 85% of ad networks, and more than half of the ad exchange market, making it nearly impossible for competitors to gain a foothold. Google, however, disputes these figures, arguing that when broader markets like social media and streaming are considered, its market share is significantly lower.

It is expected to feature testimony from key players in the advertising industry and executives from major news organisations that have felt the impact of Google’s practices. The Justice Department will likely argue that the consolidation of the digital advertising market, primarily driven by Google, has contributed to the decline of journalism, with one-third of US newspapers closing or being sold since 2005.

On the other hand, Google is expected to defend its business practices by highlighting its tools’ benefits to small businesses and publishers, arguing that a breakup would stifle innovation and harm these smaller players. The company has lined up witnesses to support this narrative, including current and former executives, such as YouTube CEO Neal Mohan, who played a significant role in developing Google’s adtech.

Intel faces scrutiny in US over planned job reductions

Senator Rick Scott has questioned Intel’s decision to cut over 15,000 jobs despite the company being set to receive nearly $20 billion in US grants and loans. His concerns centre on whether the Commerce Department’s metrics are robust enough to ensure taxpayer funds support US manufacturing and job creation.

In May, the Commerce Department announced a preliminary agreement for Intel to receive $8.5 billion in grants, up to $11 billion in loans, and access to a 25% investment tax credit. These funds are intended to create over 10,000 manufacturing jobs and nearly 20,000 construction jobs across several states, although the deal still needs to be finalised.

Despite these investments, Intel has announced plans to cut costs by $10 billion by 2025, reducing its workforce by more than 15%, mainly by the end of this year. CEO Pat Gelsinger noted that Intel’s workforce has grown by 10% since 2020 but with significantly lower revenue in 2023, causing a lower need for staff.

Scott is now seeking details on how many US employees will be affected and how these cuts might impact Intel’s semiconductor manufacturing investments in the country.

TikTok faces new challenges as key leader exits

Nicole Lacopetti, TikTok’s head of content strategy and policy, is set to leave the company in September, marking a significant change in the platform’s leadership. Her departure follows the earlier exit of former COO V Pappas and the ongoing reorganisation led by current COO Adam Presser.

TikTok’s strategy is evolving as the platform grows, aiming to cater to an older audience. According to industry insights, content is becoming more complex and engaging, with a notable trend toward interactive elements like online games, which have gained popularity among users over 30.

The platform has faced severe scrutiny from US lawmakers, who have raised concerns over data privacy and its connections to China, leading to discussions of a potential ban. Despite these challenges, TikTok remains a powerful tool for reaching younger audiences, particularly in the political sphere, where it engages younger voters.

As TikTok navigates these changes, the platform’s influence in the political landscape is expected to grow, with the next US president needing to acknowledge its power in connecting with voters more personally and dynamically.