The US Federal Trade Commission (FTC) has finalised a rule prohibiting companies from buying or selling fake online reviews. New regulation allows the FTC to impose fines of up to $51,744 per violation, targeting deceptive practices that harm consumers and distort competition.
The rule addresses various forms of manipulation, including fake reviews from non-existent customers, company insiders, or AI. It also bans purchasing fabricated views or followers on social media and using intimidation to remove negative reviews. While the rule does not require platforms to verify consumer reviews, it represents a significant step towards a more honest online marketplace.
Trade groups and businesses like Google, Amazon, and Yelp have supported the rule. Yelp’s General Counsel, Aaron Schur, stated that enforcing the rule would improve the review landscape and promote fair competition among businesses.
Consumer advocates, such as Teresa Murray from the US Public Interest Research Group, praised the rule as essential protection for online shoppers. The hope is that the fear of penalties will encourage companies to adhere to ethical practices, benefiting both consumers and businesses.
California Democrats are urging the Biden administration to halt plans for new restrictions on US technology exports to China, arguing that unilateral measures could harm American businesses while benefiting foreign competitors. These lawmakers, including Senator Alex Padilla and Representative Zoe Lofgren, expressed concerns that further controls on semiconductor manufacturing equipment could lead to a ‘death spiral’ for longstanding US companies, especially as allies like Japan and the Netherlands have not matched the most stringent US restrictions.
The Commerce Department reportedly plans a new rule to expand US power over exports to China while exempting Japan and the Netherlands, sparking concern among California’s representatives. They argue that additional unilateral export controls should be paused until their impact on US competitiveness in the semiconductor industry is fully assessed.
Why does this matter?
The letter from California Democrats highlights growing resistance to Biden’s semiconductor policies, especially from a state home to major chipmaking equipment firms like LAM, Applied Materials, and KLA. The lawmakers are not seeking to reverse existing restrictions on China but are calling for a more coordinated approach with US allies to ensure that American companies are not disadvantaged.
Companies from US and China are leading the race in AI research, with Alphabet, the parent company of Google, at the forefront. A recent study from Georgetown University revealed that Alphabet has published the most frequently cited AI academic papers over the past decade. Seven of the top ten positions are held by US companies, including Microsoft and Meta, reflecting their dominance in the field.
Chinese firms are not far behind, with Tencent, Alibaba, and Huawei securing spots within the top ten. These companies have shown remarkable growth, particularly in the number of papers accepted at major conferences. Huawei has outpaced its competitors with a 98.2% annual growth rate in this area, followed by Alibaba at 53.5%.
The competition extends beyond academic publications to patents. Baidu, a leading Chinese tech firm, topped the list of patent applications with over 10,000 submissions from 2013 to 2023. Baidu’s growth has been particularly striking, with a 228% increase in patent applications year-on-year in 2020. US companies hold three spots in the top ten for patents, with IBM making the list.
Samsung Electronics is the only Korean company to make the top 100, ranking No. 14 for highly cited AI articles and No. 4 for patents. However, Samsung’s growth in these areas has been slower compared to other global leaders, with modest increases in conference paper acceptances in recent years.
As the US election draws near, the proliferation of deepfake content is raising serious concerns about its impact on undecided voters. Deepfakes—AI-generated images, videos, or audio clips—pose a significant threat to the democratic process by making it increasingly difficult for the public to distinguish between reality and fiction. This issue was recently highlighted when Donald Trump falsely claimed that a large crowd welcoming Vice President Kamala Harris in Detroit was an AI fabrication, despite evidence proving the event’s authenticity.
Trump’s unfounded allegations and the spread of misleading deepfake content by his supporters are not just problematic for those who are firmly in his camp, but for undecided voters. These voters, who are critical to the outcome of the election, may struggle to discern the truth amidst a flood of manipulated media. This erosion of trust in what is real and what is fabricated undermines a key pillar of democracy and creates fertile ground for anti-democratic forces to gain power.
The growing prevalence of deepfakes and other digital misinformation strategies is expected to intensify in the run-up to the election. Already, Trump supporters have circulated a clearly AI-generated image, falsely claiming it was promoted by the Harris campaign. Such tactics aim to blur the lines between truth and falsehood, turning the election discourse away from verifiable facts and towards a chaotic environment where nothing can be trusted.
Experts warn that unless decisive action is taken, deepfake content will continue to compromise the integrity of the democratic process. The European Union has expressed similar concerns about the role of deepfakes in elections, highlighting the global scale of the problem. In the US, the spread of political spam and digital misinformation has surged as the 2024 election approaches, further complicating the landscape for voters.
Microsoft researchers revealed that Iranian government-linked hackers attempted to breach the account of a high-ranking US presidential campaign official in June, following an earlier breach of a county-level US official’s account. These incidents are part of a broader effort by Iranian groups to influence the upcoming US presidential election, though specifics about the targeted campaign official were not disclosed.
The report aligns with recent statements from US Intelligence officials, who have observed Iran’s increased use of fake social media accounts to sow political discord in the United States. The Iranian mission to the UN denied these allegations, claiming that Iran’s cyber capabilities are defensive and that it does not interfere in US elections.
In addition to the hacking attempts, Microsoft researchers highlighted that Iranian groups have been creating ‘covert’ news sites, using AI to mimic content from legitimate sources and targeting US voters with divisive content. Two such sites, Nio Thinker and Savannah Time, are designed to appeal to opposite ends of the political spectrum, furthering efforts to influence public opinion ahead of the election.
The United States Commerce Department announced on Tuesday that it plans to award SK Hynix up to $450 million in grants to support the construction of an advanced packaging plant and research facility for AI products in Indiana. SK Hynix, the world’s second-largest memory chip maker, previously announced an investment of approximately $3.87 billion to build the facility, which will include a cutting-edge production line for next-generation high bandwidth memory chips, crucial for AI systems.
In addition to the grants, the Commerce Department plans to provide $500 million in government loans for the SK Hynix project, which is expected to qualify for a 25% investment tax credit. The facility is projected to create 1,000 jobs and address a critical gap in the US semiconductor supply chain. The project is part of a broader effort to enhance US semiconductor manufacturing, supported by a $39 billion subsidy program and $75 billion in government lending authority approved by Congress in August 2022.
Commerce Secretary Gina Raimondo highlighted the significance of securing commitments from all five major semiconductor manufacturers, including TSMC, Intel, Samsung Electronics, Micron, and SK Hynix. Raimondo stated that these commitments would ensure the U. has the most secure and diverse supply chain for advanced semiconductors that power AI technologies. The SK Hynix facility in West Lafayette, Indiana, will play a pivotal role in producing high-bandwidth memory chips essential for training AI systems.
The announcement comes amid increasing global tensions over semiconductor supply chains, with the US expanding chip export controls and firms from China stockpiling high bandwidth memory chips in response to these restrictions. SK Hynix’s CEO, Kwak Noh-Jung, expressed gratitude for the US Commerce Department’s support, emphasizing the company’s excitement about bringing this transformational project to fruition. The initiative follows a previous $75 million award to Absolics, an affiliate of SK Group, for a facility in Georgia to supply advanced materials to the US semiconductor industry.
The next US administration is expected to adopt a ‘constructive’ stance on cryptocurrency regardless of the election outcome, according to Brian Armstrong. The CEO of Coinbase has highlighted the industry’s growing political influence as the November election approaches. Both Republican and Democratic parties have acknowledged the increasing significance of the crypto sector, with major political action committees raising over $230 million to support pro-crypto candidates.
Coinbase, the largest United States crypto exchange, is currently engaged in a legal battle with the SEC over allegations of failing to register as an exchange. The support from Wall Street and corporate figures like Elon Musk has boosted the sector’s mainstream appeal. Recently, Republican candidate Donald Trump pledged to create a ‘stockpile’ of bitcoin, while advisors to Democratic Vice President Kamala Harris have engaged with top crypto companies to improve relations.
A recent Supreme Court ruling overturning the ‘Chevron deference’ doctrine, which limited judicial interpretation of laws, is seen as a positive development for the crypto industry. Coinbase has strengthened its board by adding former US Solicitor General Paul Clement, a key figure in the Chevron ruling case. The shifting political landscape and favourable court rulings are expected to attract new institutional capital to the crypto market. Coinbase’s recent surpassing of Q2 revenue expectations and strategic board expansions further highlight its proactive stance amid these changes.
Chinese tech giants, including Huawei and Baidu, and startups are stockpiling high bandwidth memory (HBM) semiconductors from Samsung Electronics in anticipation of potential US export restrictions. The ramped-up purchasing began earlier this year, with China accounting for about 30% of Samsung’s HBM chip revenue in the first half of 2024. This strategic plan reflects China’s efforts to maintain its technological ambitions amid increasing trade tensions with the US and other Western nations, impacting the global semiconductor supply chain.
US authorities will soon announce an export control package, including new shipment restrictions to China’s semiconductor industry. The new package of measures will likely detail limits on access to HBM chips, although specific details and potential impacts remain unclear.
HBM chips are essential for developing advanced processors, such as Nvidia’s graphics processing units, used for generative AI since only three bigger chipmakers, SK Hynix, Samsung, and US-based Micron Technology, produce these kinds of chips.
Chinese demand has focused on the HBM2E model, two generations behind the latest HBM3E. Due to the global AI boom, the advanced model is in short supply. Chinese companies, from satellite manufacturers to tech firms like Tencent, have purchased these chips. Huawei has used Samsung’s HBM2E semiconductors for its advanced Ascend AI chip, and other firms like Hawking have also placed orders.
While Chinese firms like Huawei and CXMT are making progress in developing HBM2 chips, their efforts could be hindered by the new US restrictions. Samsung may face a major impact from these restrictions compared to its rivals, as it relies more on the Chinese market. SK Hynix, focusing on advanced HBM chip production, has nearly sold out its HBM chips for the next two years, while Micron has already stopped selling its HBM products to China since last year.
A coalition of 21 states and over 50 US lawmakers has supported the Justice Department’s mandate requiring China-based ByteDance to sell TikTok’s US assets by 19 January or face a ban. The collective, led by the attorneys general of Montana and Virginia, argues that TikTok threatens national security and consumer privacy, citing risks of the Chinese Communist Party exploiting user data.
Prominent lawmakers, including US Representative John Moolenaar and Representative Raja Krishnamoorthi, emphasised that the law offers a straightforward solution to mitigate the national security threats posed by TikTok’s ownership structure. The legislative measure, passed by Congress in April, reflects widespread concern over potential data access and surveillance by China.
In response, TikTok, its parent company ByteDance, and a group of TikTok creators have filed lawsuits to block the law. They argue that the ban violates the First Amendment rights of the 170 million Americans who use the app and claim no evidence supports the government’s security concerns.
The US Court of Appeals for the District of Columbia is set to hear oral arguments on the legal challenge on 16 September, amidst the lead-up to the 2024 presidential election. The outcome of this case could significantly impact TikTok’s future operations in the United States.
US progressive groups and Senator Elizabeth Warren have called on the Department of Justice to investigate Nvidia for potential anti-competitive practices, citing the company’s dominant position in the AI chip market. Nvidia’s market value surged to $3 trillion this summer, driven by high demand for its advanced chips used in AI models. The groups, including Demand Progress, criticised Nvidia’s bundling of hardware and software, arguing that it restricts competition and stifles innovation.
The Department of Justice has been directed to oversee potential antitrust probes into Nvidia, while the Federal Trade Commission is investigating other tech giants like Microsoft and OpenAI. Nvidia maintains that it follows all regulations and supports a wide range of industries and innovators.
With approximately 80% of the AI chip market and nearly 100% of the market excluding cloud providers’ custom chips, Nvidia’s dominance is significant. Senator Warren has expressed concerns about the risks of a single company controlling the AI market. The Department of Justice has not commented on the case’s specifics, but antitrust officials are concerned about potential bottlenecks in the industry.
