The United States has renewed pressure on Italy to scrap its domestic web tax, sources say, warning that ignoring the request could lead to retaliatory tariffs. Introduced in 2019, the Italian tax imposes a 3% levy on digital transactions for tech giants like Meta, Google, and Amazon, yielding under €500 million annually. While Washington views the tax as unfairly targeting US firms, Italy has held firm, awaiting clarity on the stance of the incoming US administration.
Italian Prime Minister Giorgia Meloni’s 2025 budget proposal includes expanding the tax’s reach by removing revenue minimums, which could bring in an additional €51.6 million. Italy’s Treasury hopes this adjustment, which would require more companies to pay, might address US concerns about the tax’s perceived bias. However, some Italian lawmakers argue for keeping the focus on large US tech companies, with proposed amendments aimed at raising the tax rate but maintaining protections for small and medium enterprises.
Forza Italia Senator Maurizio Gasparri supports stronger regulations on ‘web giants’ but acknowledges the risk of a backlash from the US if the changes move forward.
A Chinese state-sponsored hacking group, Volt Typhoon, reportedly breached Singapore Telecommunications (SingTel) in June as part of a broader cyber campaign targeting telecom companies and critical infrastructure globally.
SingTel confirmed that malware was detected during the breach but assured there was no data exfiltrated or service disruption. The company took immediate action, reporting the incident to authorities, though it could not confirm if the breach was the same event mentioned in media reports.
Chinese officials have denied involvement in the attack, with a spokesperson asserting that China opposes all forms of cyberattacks. Volt Typhoon, previously linked to cyberattacks on critical US infrastructure, is believed to have used this incident as a test for potential future attacks on US telecom firms. The breach highlights the growing concerns over Chinese cyber activities targeting global critical infrastructure.
The Competition and Markets Authority (CMA) has temporarily halted the proposed £762 million acquisition of UK logistics firm Wincanton by American logistics company GXO, citing potential competition risks. This decision follows the CMA’s preliminary investigation, which raised concerns about the merger’s impact on the already competitive contract logistics services sector.
An interim enforcement order (IEO) is now in effect, preventing any integration of the two firms during the review process. The CMA’s phase 1 investigation indicated that the merger could reduce competition in a market valued at £16 billion in the UK, where GXO and Wincanton are key players competing for contracts with major retailers. Naomi Burgoyne, senior director of mergers at the CMA, warned that diminished competition could lead to higher costs for consumers reliant on efficient delivery services.
GXO has five days to propose solutions to address the CMA’s concerns. If the proposals are found inadequate, the regulator will proceed to a more detailed phase two investigation. In response to the CMA’s announcement, a GXO spokesperson stated that they are reviewing the decision and are committed to collaborating with the CMA to achieve a favourable outcome, asserting that the acquisition would benefit logistics customers across the UK and support government initiatives for economic growth.
Tenstorrent, a Silicon Valley startup founded by veterans from Apple and Intel, has secured a deal with the Japanese government to train up to 200 Japanese chip designers over the next five years. This partnership, announced on Tuesday, includes a $50 million investment shared between Tenstorrent and Japan’s Leading-edge Semiconductor Technology Centre. It is part of Japan‘s initiative to revitalise its semiconductor industry, which has seen a significant decline since its dominance in the 1980s.
Central to this revitalisation effort is Rapidus, a government-backed contract chipmaker aiming to begin mass production of advanced semiconductors by 2027. To support Rapidus’s goals, the collaboration with Tenstorrent focuses on creating future customers by educating Japanese engineers in the US about chip design. Starting in April 2025, these engineers will work closely with Tenstorrent’s experienced team, including industry veterans who have worked on Apple chips.
The agreement allows Tenstorrent to retain the chip designs created during the training, which will utilise RISC-V, an open chip design architecture. Upon returning to Japan, the engineers will be equipped to leverage their new knowledge to develop their own RISC-V designs, further contributing to the growth of Japan’s semiconductor capabilities. Tenstorrent’s Chief Customer Officer, David Bennett, emphasised that Japan’s proactive investments reflect its commitment to taking control of its technological future.
The head of US cybersecurity, Jen Easterly, announced Monday that, despite an increase in disinformation targeting the 2024 presidential election, there has been no evidence of interference capable of affecting the election outcome. Easterly noted the unprecedented levels of false information spreading across online platforms, much of which has been attributed to foreign actors aiming to sow division among voters.
US authorities have pointed to Russia as one of the primary sources of election-related disinformation, including a widely circulated fake video in Georgia showing an immigrant falsely claiming to have voted multiple times. Officials say that similar tactics are expected to continue beyond Election Day, targeting trust in the electoral process through to January.
Easterly assured voters that election security is stronger than ever, thanks to enhanced protective measures and improved preparedness across voting jurisdictions. Her message emphasised the government’s ongoing commitment to maintaining safe, secure, and reliable elections for all Americans.
A federal judge has dismissed a proposed class-action lawsuit claiming Google illegally profited from scams involving Google Play gift cards. The plaintiff, Judy May, alleged she lost $1,000 after a scammer posed as a government official, instructing her to purchase Google Play gift cards to claim grant money. She argued that Google should have warned consumers about such scams on the card packaging.
However, Judge Beth Labson Freeman ruled that Google was not responsible for May’s losses, as the tech giant neither caused her financial harm nor knowingly benefited from the stolen funds. Freeman also dismissed claims that Google’s 15% to 30% commission on purchases using the gift cards was linked to the initial fraud.
The Federal Trade Commission reported that Americans lost $217 million to gift card fraud in 2023, with Google Play cards implicated in roughly 20% of reported cases. Though May’s case was dismissed, the judge allowed her the option to refile.
The Federal Energy Regulatory Commission (FERC) is examining the rapid growth of energy-intensive data centers being built next to US power plants. Known as co-location, this trend is driven by the tech sector’s need for large amounts of power for AI and other data-heavy operations. Co-locating data centers near power plants offers companies quicker access to electricity, bypassing the longer process of connecting to the broader grid.
However, regulators and industry experts are concerned about the impact on costs and reliability for other electricity consumers. If data centers use power plants that typically supply the public grid, there are questions about how such facilities will handle power disruptions and whether they will lean on the grid as backup. This could mean higher electricity bills for consumers who fund grid infrastructure, a point raised by FERC Commissioner Mark Christie.
The regulatory scrutiny comes as companies like Amazon and Google look to establish co-located data centers to meet growing energy needs. A recent arrangement in Pennsylvania, where Amazon bought a data center linked to a nuclear plant, has stirred debate among electric utilities over infrastructure costs and reliability. FERC’s review could lead to new guidelines clarifying financial responsibilities and operational rules for these partnerships.
The US Commerce Department has fined GlobalFoundries $500,000 for exporting semiconductor chips to SJ Semiconductor, an affiliate of China’s blacklisted chipmaker SMIC, without proper authorisation. GlobalFoundries, based in New York and one of the world’s largest contract chipmakers, reportedly made 74 shipments valued at $17.1M to the Chinese firm without obtaining the required export license. SJ Semiconductor and its parent, SMIC, were placed on the US trade restriction list in 2020 due to SMIC’s alleged links to China’s military.
GlobalFoundries disclosed the unintentional violation, attributing the exports to a data-entry error that occurred before the Chinese firms were listed. The company emphasised its commitment to strict compliance practices, a sentiment echoed by Assistant Secretary for Export Enforcement Matthew Axelrod, who urged American companies to be vigilant in transactions with Chinese entities.
This fine comes amid increased scrutiny of US export policy and enforcement, particularly as Washington works to prevent American technology from enhancing China’s military capabilities. GlobalFoundries is also in line to receive $1.5B in government support to expand semiconductor manufacturing in the United States, part of the Biden administration’s broader push to boost domestic chip production.
Abu Dhabi firms Realize and Neovision Wealth Management have announced the launch of the Realize T-BILLS Fund, a new investment vehicle focused on U.S. Treasury ETFs. The fund will purchase units from popular ETFs, such as BlackRock’s iShares and State Street’s SPDR, and tokenise them, converting them into blockchain-based digital tokens that can be traded and transferred. Dominik Schiener, co-founder of Realize, noted that the fund aims to grow to $200 million in assets.
The T-BILLS Fund will issue a digital token, $RBILL, representing fund units, and operate on both the IOTA and Ethereum blockchain networks. Realize will handle the tokenisation process, while Neovision Wealth Management will oversee fund operations. This fund is also the first of its kind to be based out of the Abu Dhabi Global Market, a move that highlights the growing trend of combining traditional assets with blockchain technology.
Tokenised US Treasuries have become a growing niche in the digital asset market, valued at $2.4B, and attracting both blockchain-native firms and established finance giants. With US Treasury bills seen as a secure and liquid asset class, these new tokens offer investors an easier way to trade and hold government-backed securities in a blockchain format, making them accessible to a wider audience in the digital economy.
The cryptocurrency industry is bracing for a shift in US regulatory policy, with leaders expecting a more favorable approach from Washington, regardless of the next administration. After years of regulatory tension under President Joe Biden’s administration, crypto companies are optimistic that the incoming administration will adopt a more supportive stance toward digital assets. Notable crypto firms, including Bitwise and Canary Capital, are actively developing new products, and other companies are preparing fresh pushes for pro-crypto legislation in Congress.
Both presidential candidates, Donald Trump and Vice President Kamala Harris, have expressed openness toward the digital asset industry. Trump has even pledged to become a “crypto president,” while Harris, though less specific, has shown support for digital innovation and investor protection, which many industry leaders interpret as a potential shift in regulatory tone. This perspective is reinforced by Harris supporter Mark Cuban, who recently emphasised her promise to protect crypto users.
The US Securities and Exchange Commission (SEC), led by Chair Gary Gensler, has taken a strict stance on crypto assets, citing risks illustrated by cases like FTX’s collapse. Gensler’s tenure has involved multiple enforcement actions against major crypto exchanges, creating a challenges for digital assets. However, crypto executives believe that a new administration could bring changes, including potentially overturning regulatory guidance that has deterred financial institutions from crypto involvement.
