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Google Fails to Overturn €2.4 Billion EU Antitrust Fine in Court

Google Fails to Overturn €2.4 Billion EU Antitrust Fine in Court

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Google lost its legal battle in opposition to a €2.4 billion antitrust sentence levied by the European Union, marking a significant win for European regulators. The fine, which was imposed in 2017 for the company’s deceptive promotion of its own shopping service above rivals’, was maintained by the EU’s highest court.

Verified Discriminatory Practices

Google Fails to Overturn €2.4 Billion EU Antitrust Fine in Court

Image Source: telecom.economictimes.indiatimes.com

Due to Google’s practice of giving preference to its own retail comparison results in search rankings, the European Court of Justice concluded that the company’s actions were discriminatory. Because it hampered competitors and lessened competition in a market that was already fragile, this activity was found to be illegal under EU competition law. There is no right of appeal for this final decision.

Google was first penalised for using search result manipulation to push its own Google Shopping service to the top of the results while hiding other services in less noticeable spots. This marked a change in the way big tech companies are controlled, as it was the first of several antitrust actions brought against the tech behemoth in Europe.

Greater Consequences for Big Technology

Additionally, this decision opens the door for more extensive enforcement under the EU’s Digital Markets Act (DMA), which went into force in 2023. The DMA forbids self-preferencing on its platforms and targets digital businesses that are regarded as “gatekeepers.” Although Google changed its business practices in 2017 to comply with the original order, it is still being investigated for possible DMA violations involving its search and app stores.

In a reaction, Agustín Reyna, Director General of consumer group BEUC, said he welcomes the decision, calling it "crucially important for Europe’s consumers."

"The Court has confirmed that Google cannot unfairly deny European consumers access to full and unbiased online information about where to get the best deals," Reyna said.

Tech lobby organisation CCIA Europe said in a statement “It is essential that companies in Europe know when competition law will force them to share their technology with their rivals. These companies need legal certainty in advance, they shouldn't be punished after the fact for competing successfully.”

euronews.com

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Google's Reaction

Google voiced its dissatisfaction with the court’s ruling. According to a corporate representative, the company implemented noteworthy modifications after the initial 2017 verdict, resulting in billions of clicks for more than 800 comparison shopping platforms. Rivals counter that these changes haven’t sufficiently levelled the playing field in spite of this.

This result strengthens the European Union’s regulatory strategy and gives rise to additional action against major tech corporations.

 
TikTok Suffers Setback in Initial Challenge to EU Big Tech Regulations

TikTok Suffers Setback in Initial Challenge to EU Big Tech Regulations

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According to a verdict by the European Union’s General Court, TikTok was defeated in its first legal battle with the European Union’s (EU) attack on big tech. The court ruled that TikTok, controlled by ByteDance Ltd., cannot avoid the new Digital Markets Act (DMA), which aims to govern the most powerful digital corporations, such as Google and Apple Inc.

Court Ruling

TikTok Suffers Setback in Initial Challenge to EU Big Tech Regulations

Image Source: luxtimes.lu

The European Union’s General Court decided that TikTok met the DMA’s standards, which went into operation in March. The court found that ByteDance’s complaint opposing the European Commission’s judgment lacked adequate grounds. TikTok expressed unhappiness with the verdict and noted that it has already implemented procedures to ensure compliance with the DMA. The ruling can still be challenged by the European Court of Justice, the European Union’s top court.

The Digital Markets Act (DMA)

The DMA tries to prohibit dominant tech companies from carrying out anti-competitive behaviour. The rule affects platforms with annual revenue in the European Union of at least €7.5 billion ($8.2 billion) or an estimated market value of €75 billion. Furthermore, all platforms need to have more than forty-five million monthly active end users in addition to more than 10,000 annual active business users in the European Union (EU).

Concerns for Tech Giants

The DMA prohibits big platforms from preferring their services over competitors’, merging private information across numerous platforms, and competing against them with data gathered from third-party vendors. In addition, they must allow consumers to download apps from other platforms. This regulation affects major firms such as Alphabet Inc.’s Google search engine, Apple’s Safari, as well as Amazon.com Inc.’s Marketplace. Both companies, Apple and Meta Platforms Inc. have questioned the DMA’s categorization of certain services.

Broader Context

TikTok’s legal proceeding is part of a larger global probe of the platform, which includes worries about its Chinese holdings. In the United States, President Joe Biden agreed to the legislation in April to outlaw TikTok unless ByteDance relinquishes control. This measure quickly passed via Congress, causing TikTok to question its legitimacy.

Furthermore, European Union regulators are looking into TikTok for elements that may be damaging to children, which could lead to fines of up to 1% of its yearly revenue in total under the European Union’s new Digital Services Act.

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Conclusion

The verdict against TikTok confirms the EU’s strict stance on governing Big Tech. As the corporation works to comply with the DMA, it stays under worldwide investigation, with substantial ramifications for its business practices as well as development in the computer industry.

 
EU Hits Microsoft with Antitrust Charges for Teams Bundling

EU Hits Microsoft with Antitrust Charges for Teams Bundling

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Microsoft has been accused by the European Union of breaking competition laws by illegally combining its Teams chat program with Office 365 and other Microsoft 365 subscriptions. This is the very first antitrust lawsuit Microsoft has faced in the European Union in fifteen years, after challenges regarding the bundling of Internet Explorer together with Windows Media Player.

Charge Specifications

EU Hits Microsoft with Antitrust Charges for Teams Bundling

Image Source: forbes.com

The European Commission declared its initial assessment that Microsoft violated EU competition laws by linking its Teams offering to its well-liked Office 365 and Microsoft 365 productivity suites. The European Union expressed its worries in an announcement of objections, citing the perception that Teams’ bundling gives them an unfair advantage over rivals.

Microsoft's Reaction

Microsoft separated Teams from Office 365 in Europe in the previous year in response to the inquiry, and it later released the program as a stand-alone worldwide.  Despite the efforts shown by Microsoft to correct it, The European Commission remains worried. President Brad Smith of Microsoft has stated that the organization is ready to cooperate with the Commission and will endeavour to resolve its outstanding issues.

The Investigation's Beginnings

The antitrust inquiry got underway in July 2020 as a result of a Slack complaint.

Microsoft allegedly "illegally tied" Teams to Office, "forcibly installed it for millions of users, prevented its removal, and concealed the true cost to enterprise customers,"

theverge.com

according to Slack. Salesforce, the parent company of Slack, applauded the Commission’s conclusions, viewing them as a win for consumer choice and market competition.

Possible Repercussions

Should Microsoft be found in breach of antitrust laws, the company may be fined up to ten percent of its yearly global revenue. Like in previous years, the European Commission can additionally implement measures to guarantee equal competition. Microsoft was forced to create a variant of Windows with no Media Player in 2004 and add a browser ballot box to Windows in 2009 so that customers could select their preferred web browser.

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Final Thoughts

The accusations made against Microsoft highlight the continuous regulatory examination of big tech’s business practices. The investigation’s potential findings might have a big impact on Microsoft and the tech sector as a whole, reaffirming the European Union’s dedication to encouraging customer choice as well as competition in the world of technology.

 

EU Finalizes World’s First Major Law Governing Artificial Intelligence

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In a landmark decision, European Union member states on Tuesday gave their final approval to the AI Act, the world’s first major legislative framework designed to regulate artificial intelligence. This pioneering law sets comprehensive rules for the use and development of AI technologies, aiming to balance innovation with essential safeguards.

“The adoption of the AI Act is a significant milestone for the European Union,” stated Mathieu Michel, Belgium’s Secretary of State for Digitization. “With the AI Act, Europe emphasizes the importance of trust, transparency, and accountability when dealing with new technologies while ensuring that this fast-changing technology can flourish and boost European innovation.”

The AI Act introduces a risk-based regulatory approach, categorizing AI applications according to the level of risk they pose. Applications deemed “unacceptable,” such as social scoring systems, predictive policing, and emotional recognition in schools and workplaces, are outright banned. High-risk AI systems, including those used in autonomous vehicles, medical devices, financial services, and education, will undergo stringent scrutiny to protect public safety and fundamental rights.

Impact on U.S. Tech Giants

The new regulations are expected to have profound implications for companies worldwide, especially for major U.S. tech firms that operate within the EU. Matthew Holman, a partner at the law firm Cripps, highlighted the unprecedented nature of the AI Act. “The EU AI Act is unlike any law anywhere else on earth,” he explained. “It establishes a detailed regulatory regime for AI for the first time.”

Holman noted that U.S. technology companies have been closely monitoring the development of this legislation. “There has been substantial investment in public-facing generative AI systems, and these companies will need to ensure compliance with the new, sometimes onerous, requirements,” he added.

The EU Commission will enforce the law, with potential fines for non-compliance reaching up to 35 million euros ($38 million) or 7% of a company’s annual global revenue, whichever is higher. The necessity for updated legislation became clear after the launch of OpenAI’s ChatGPT in November 2022, which exposed gaps in existing laws concerning advanced AI capabilities and the use of copyrighted material.

Implementation Process

Despite its adoption, the AI Act’s stringent requirements will not be implemented immediately. Dessi Savova, a partner at Clifford Chance, pointed out that the restrictions on general-purpose AI systems, which include generative AI technologies, will begin 12 months after the Act comes into force. Furthermore, currently available generative AI systems, such as OpenAI’s ChatGPT, Google’s Gemini, and Microsoft’s Copilot, will benefit from a 36-month transition period to achieve full compliance.

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“Agreement has been reached on the AI Act, and now the focus must shift to its effective implementation and enforcement,” Savova commented. This phased approach aims to give companies sufficient time to adapt to the new regulations, ensuring a smooth transition while maintaining the integrity and safety of AI innovations within the EU.

This new legislative framework marks a significant step in global efforts to regulate AI, setting a precedent that could influence future policies worldwide.

EU Investigating Facebook and Instagram Over Their Handling of Disinformation Ahead of the Election

EU Investigating Disinformation on Facebook and Instagram Ahead of Election

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Facebook and Instagram owned by Meta Platforms are being investigated by the European Commission for possible violations of EU online content regulations. EU IT regulators have responded to concerns over misleading advertising and misinformation ahead of the elections to the European Parliament.

Worries Regarding Deceitful Activities

EU Investigating Facebook and Instagram Over Their Handling of Disinformation Ahead of the Election

Image Source: communicationstoday.co.in

Growing worries regarding the dissemination of false information from both internal and external sources are reflected in the actions taken by EU authorities. The EU is concentrating on combating dishonest activities within its borders, especially by political parties and organisations looking to influence voters with misleading material, as Russia, China, and Iran have been identified as possible suppliers of misinformation.

Authority for Regulation: Digital Services Act

The Digital Services Act (DSA), which mandates that large digital companies take more aggressive action against unlawful and damaging information on their networks, provides the basis for the probe. There are severe penalties for breaking DSA commitments; these fines can reach 6% of a company’s yearly global revenue.

Doubts Regarding Meta's Moderation

Margrethe Vestager, the EU’s digital leader, voiced concerns over Meta’s moderation methods, pointing to a lack of transparency and inadequate action in relation to misleading marketing and content moderation processes. In order to evaluate Meta’s compliance with the DSA, the Commission has started procedures. The investigation will concentrate on matters like coordinated inauthentic behaviour and misinformation operations.

Meta's Reaction

With more than 250 million monthly active users throughout the EU, Meta justified its risk mitigation strategy by emphasising the protocols it has put in place for locating and resolving threats on its platforms. The business said that it would be happy to work with the European Commission and share more information about the steps it is taking to reduce risk.

Particular Issues the Commission Has Raised

Ahead of the elections to the European Parliament, the Commission brought up a number of specific concerns, chief among them being the absence of a reliable third-party platform for real-time civic discourse and election monitoring. Furthermore, criticism has been levelled at Meta for its choice to phase down CrowdTangle, its misinformation-tracking tool, without a viable successor.

Next Actions

Five working days have been granted to Meta to notify the EU of the corrective measures implemented in response to the Commission’s concerns. The investigation’s conclusion will have a big impact on Meta’s business operations in the EU and potentially influence future laws that fight false advertising and internet misinformation.

In summary, The EU’s investigation into Meta over claims of misleading advertising and misinformation highlights the need for strong regulatory frameworks to protect the integrity of online material. In order to stop the spread of false information and preserve democratic values in the digital era, regulatory oversight is crucial given the growing influence that digital platforms have on public opinion.

 
EU Targets Apple iPad in Latest Digital Dominance Crackdown

EU Targets Apple iPad in Latest Digital Dominance Crackdown

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The European Union’s aggressive attempts to stop any anti-competitive activities among computer companies have resulted in the latest setback for Apple Inc.’s iPad. With the EU enforcing strict new laws as part of its Digital Markets Act (DMA), Apple has six months to make sure its tablet ecosystem conforms with a number of preventive measures.

iPad Adds to the Hit List for DMA

EU Targets Apple iPad in Latest Digital Dominance Crackdown

Image Source: channelnews.com

Although there was previously criticism of Apple’s iOS mobile operating system, App Store, and Safari browser, the addition of the iPad represents a major step up. EU competition commissioner Margrethe Vestager stressed the need for fairness and competition in the digital sphere, noting that iPadOS is an essential platform for many businesses to contact their clientele even though it does not satisfy all requirements.

Apple's Challenges: Getting Used to New Responsibilities

The EU’s judgement is a significant defeat for Apple. The IT giant now has to work hard to modify its operating system in order to meet a lot of new requirements. These include enabling customers to remove preloaded applications—a move meant to promote a more competitive environment—and downloading apps from sources outside of Apple’s ecosystem.

Apple's Reaction: Concentrated on Customers in Europe

Apple responded by restating its dedication to European customers and recognising the difficulties the DMA presents with regard to data security and privacy. The business is committed to providing its goods and services while negotiating the changing regulatory environment, whatever the obstacles.

DMA: Going After Tech Giants

Not just Apple is included in the DMA; six of the most significant IT companies in the world are included as well; these companies are known as digital “gatekeepers.” In addition to Apple, additional regulations and more monitoring are in place for Meta Platforms, Google, Amazon, and ByteDance, the owner of TikTok, in order to stop monopolistic activities.

Principal Elements of the DMA

The DMA forbade designated corporations from exploiting third-party data to compete with merchants, favouring their own services, or combining personal data across platforms as of March 7, when it went into full force. In addition, it requires users to be able to download apps from other platforms in an effort to promote a more consumer-friendly and competitive digital environment.

In conclusion,  As Apple and other tech titans wrestle with the ramifications of the EU’s Digital Markets Act, the landscape of the digital economy is undergoing a major shift. A healthy digital ecosystem in the European Union and elsewhere depends on justice, competition, and innovation, all of which are fostered by regulatory oversight, notwithstanding its difficulties.