TikTok has contested claims made by the US Department of Justice in a federal appeals court, asserting that the government has inaccurately characterised the app’s ties to China. The company is challenging a law that mandates its Chinese parent company, ByteDance, to divest TikTok’s US assets by January 19 or face a ban. TikTok argues that the app’s content recommendation engine and user data are securely stored in the US, with content moderation conducted domestically.
The law, signed by President Joe Biden in April, reflects concerns over potential national security risks, with accusations that TikTok allows Chinese authorities to access American data and influence content. TikTok, however, contends that the law infringes on free speech rights, arguing that its content curation should be protected by the US Constitution.
The legislation also impacts app stores and internet hosting services, barring support for TikTok unless it is sold. The swift passage of the measure in Congress highlights ongoing fears regarding data security and espionage risks associated with the app.
Two US lawmakers have called on the Biden administration to investigate Chinese company TP-Link Technology Co. over concerns that its WiFi routers could pose a national security risk. The request was made in a letter to the Commerce Department, highlighting the potential for cyber attacks using vulnerabilities in TP-Link firmware. The company, a global leader in WiFi router sales, has not yet responded to the inquiry.
Concerns were raised after reports surfaced that TP-Link routers were exploited in cyber attacks targeting government officials in Europe. The lawmakers expressed fears that similar attacks could be carried out against the US infrastructure. They have urged the Commerce Department to assess the threat posed by Chinese-affiliated routers, particularly TP-Link’s, given its market dominance.
TP-Link, founded in China in 1996, has been linked to cybersecurity concerns before. Last year, the US Cybersecurity and Infrastructure Agency flagged vulnerabilities in the company’s routers that could be used for remote attacks. Around the same time, a Chinese state-sponsored hacking group was found to have targeted European officials using malicious implants in TP-Link routers.
The Commerce Department has the authority to impose bans or restrictions on technology transactions with companies from nations considered adversarial to US interests, including China. The investigation could lead to new measures aimed at preventing potential security risks from Chinese-made equipment in critical US infrastructure.
T-Mobile has been fined $60 million by a US committee focused on national security for failing to prevent and report unauthorised access to sensitive data. The penalty, imposed by the Committee on Foreign Investment in the US (CFIUS), is linked to violations of a mitigation agreement T-Mobile signed during its 2020 acquisition of Sprint Corp.
The data breach occurred in 2020 and 2021, during the integration of Sprint into T-Mobile’s operations. T-Mobile, controlled by Deutsche Telekom, explained that technical issues affected a small number of law enforcement data requests, but emphasised that the information never left the law enforcement community and was swiftly addressed.
The $60 million fine is the largest ever imposed by CFIUS, signalling a stronger approach to enforcement. Officials noted that the transparency of the penalty is intended to deter future violations, highlighting the committee’s commitment to holding companies accountable.
In the past 18 months, CFIUS has issued six penalties, including the one against T-Mobile, far surpassing the number of fines levied in the previous decades. The delay in T-Mobile’s reporting hampered the committee’s efforts to investigate and mitigate potential risks to US national security.
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.
