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Google

Google to block news in Canada over law on paying publishers

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Google announced its intention to block Canadian news on its platform within Canada, following in the footsteps of Facebook’s Meta Platforms Inc.

This move comes as a response to a new law, the Online News Act (Bill C-18), which requires payments to local news publishers.

Google
Image Source: cnbc.com

The Canadian media industry has been advocating for tighter regulations on internet giants like Facebook and Google, aiming to allow new businesses to recover financial losses resulting from the increasing dominance of these platforms in the online advertising market.

The Canadian government estimated that news businesses could potentially receive around C$330 million ($249 million) per year from the mandated deals under this legislation.

Also Read: Google lays off staff at its mapping app Waze

However, Heritage Minister Pablo Rodriguez clarified that the platforms are not immediately obligated to comply with the act and expressed the government’s willingness to engage in consultations with them regarding regulatory and implementation processes.

Facebook and Google have argued that the proposed legislation is unsustainable for their businesses. For months, they have hinted at the possibility of blocking news availability in Canada if the act was not amended.

However, the Canadian federal government has resisted making changes, and Prime Minister Justin Trudeau accused the companies of employing “bullying tactics.”

In response to the law, Google’s president of global affairs, Kent Walker, stated in a blog post that they believe the law is unworkable and that the regulatory process would not resolve the “structural issues with the legislation.”

Consequently, Google informed the government that it will remove links to Canadian news from its Search, News, and Discover products within Canada once the law goes into effect. The specific news outlets affected by this decision will be determined based on the government’s definition of “eligible news businesses” when the rules for implementation are finalized.

Furthermore, Google will terminate its News Showcase program in Canada, which involves agreements with 150 news publications across the country. One of these agreements is with Reuters, which produces News Showcase panels, including in Canada.

The Online News Act mandates that online platforms negotiate with news publishers and compensate them for their content. A similar law was passed in Australia in 2021, which led Google and Facebook to threaten to curtail their services in the country. However, both companies reached agreements with Australian media companies after the legislation was amended.

Google argues that Canada’s law is broader than those in Australia and Europe, as it assigns a value to news story links displayed in search results and can potentially apply to outlets that do not produce news content.

Google has proposed that payment should be based on the display of news content itself, rather than links and that only businesses adhering to journalistic standards should be eligible for compensation.

Apptio

IBM nears US$5 billion deal for Apptio

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In its newest move to boost its cloud and machine learning abilities, IBM announced on Monday that it will offer Vista Equity Partners a total of 4.6 billion USD in cash to purchase the technology Apptio which is a spend-management platform.

The price of IBM stocks fell somewhat in early trading. IBM stated that it will use cash on hand to fund the purchase and anticipates that it will conclude in the second half of 2023.

Apptio
Image Source: businesstimes.com.sg

The agreement is made at a time when businesses are reducing their technology spending due to adverse macroeconomic circumstances. IBM recorded an earnings rise of just under one percent year over year in the March quarter while cutting around 3,900 positions in the early part of the year.

Also Read: Japan’s Suzuki to Make ‘flying cars’ with SkyDrive

The tech behemoth said that the purchase of Apptio, a software-as-a-service (SaaS) company with more than 1,500 clients and alliances with cloud providers including Salesforce as well as Amazon.com’s AWS (Amazon Web Services), will boost IBM’s Red Hat work, Artificial Intelligence portfolio, along with consulting division.

Since its establishment in 2007, Apptio has offered online management services for IT budgeting, forecasting, including analysis. According to the business’s website, over 90 percent of Fortune 100 organizations utilize its products.

“Going forward, we are opportunistic (on M&A) and looking for opportunities in the software and consulting space,” Senior Vice President Rob Thomas told Reuters in an interview.

Source: reuters.com

Century-old IBM is changing its direction to concentrate on more recent artificial intelligence and services offered via the cloud.

It made its largest purchase to date in 2019 when it paid roughly thirty-four billion dollars for the software supplier Red Hat, and two years later it rotated out its IT facilities and information center firm Kyndryl Holdings. The business completed the sale of a few of its pharmaceutical analysis and information assets last year.

Also Read: Nasdaq to sell debt worth $5 bln to fund Adenza deal

Arvind Krishna, the CEO of IBM since 2020, has kept the 112-year-old business in flux. Even though they would probably be less than the thirty-four billion-dollar Red Hat purchase, he stated a few weeks ago that IBM is still intent on mergers.

According to financial analysts at UBS, Apptio’s sales totaled approximately 233 million USD in 2018 and are projected to increase by 11–13 percent compounding yearly until the fiscal year 2022.

Almost 3 years following the software business’s IPO, the private equity company, Vista Equity Partners acquired Apptio in a two-billion-dollar deal.

Nasdaq

Nasdaq to sell debt worth $5 bln to fund Adenza deal

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To pay for its acquisition of the software business Adenza, which is controlled by Thoma Bravo, Nasdaq stated on Thursday that it wants to dispose of its debt for $5.07 billion.

The exchange provider will become a financial tech business as part of the $10.5 billion acquisition, which was disclosed a few weeks ago. It includes $5.75 billion in currency and 85.6 million units of Nasdaq stock in common.

Nasdaq
Image Source: freemalaysiatoday.com

Based on a release, Nasdaq plans to offer senior bonds for $4.25 billion as well as 750 million euros which is about 821.33 million USD.

The business, which is based in New York, announced that it has entirely pledged to provide bridge funding for the cash portion of the purchase agreement and aims to put out around 5.9 billion USD of loans between the agreement’s signature and closure.

Also Read: TikTok COO Pappas quits after five years in the role

Nasdaq and several of its competitors have been transitioning into fintech (financial technology) companies, mostly through acquisitions, as regulatory as well as nationalist opposition successfully prevented significant international trade acquisitions and as the amount of trading decreased during the financial crisis between 2008 and 2009, limiting revenue based on the transaction.

The U.S. exchange operator acquired OMX, a holding company of the Nordic markets, for 3.7 billion USD in the year 2007, ISE (International Securities Exchange) for a price tag of 1.1 billion USD in 2016, alongside Verafin, an exporter of applications designed to combat illicit financial activity, for a total of $2.75 billion in 2020.

The first digital trading platform in the world, Nasdaq is an online worldwide platform for purchasing and selling securities.

In the US as well as Europe, it runs 29 markets, one clearinghouse, along with five primary securities storage facilities.

The Nasdaq is home to most of the largest technology companies worldwide.

Also Read: Japan’s Suzuki to Make ‘flying cars’ with SkyDrive

Nasdaq began as a division of NASD which stands for the National Association of Securities Dealers, which is now referred to as FINRA (the Financial Industry Regulatory Authority), and its name started as an abbreviation for National Association of Securities Dealers Automated Quotations.

The Securities and Exchange Commission, also known as the SEC, pushed NASD to centralize the marketplace for stocks that aren’t listed on an exchange, which led to the creation of Nasdaq. The first computerized trading platform was the outcome along with starting its operations in 1971 on February 8.

Pappas

TikTok COO Pappas quits after five years in the role

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TikTok’s Chief Operating Officer (COO), V Pappas, is leaving the popular social media platform after almost five years with the company. In a note to employees and on Twitter, Pappas, who uses she/her and they/them pronouns, mentioned that now that TikTok has achieved significant success, she feels it’s the right time to pursue her entrepreneurial passions. TikTok CEO Chew Shou Zi announced that Pappas will continue to serve as a strategic adviser.

Pappas
Image Source: scmp.com

Chew expressed gratitude for Pappas’ contributions, acknowledging her instrumental role in growing the business, promoting the company, enhancing product offerings and marketing campaigns, and fostering a positive community of creators and users.

Chew wrote, “I want to take this opportunity to thank V for their many contributions over the years. Throughout their time at TikTok, they have been instrumental in growing the business, advocating for the company, elevating our product offerings and marketing campaigns, and fostering a positive community of creators and users.

They have had a significant and lasting impact and we are truly grateful for their tireless efforts.” US lawmakers grill TikTok CEO on App’s alleged ties to Chinese Communist Party.

Also Read: Intel spends $33 billion in Germany in landmark expansion

Pappas initially joined TikTok in 2018 as the general manager and later became the interim head in 2020 when the previous CEO departed. She assumed the COO position the following year and has been a vocal advocate for the company, testifying before the US Senate committee on social media’s impact on homeland security.

TikTok has faced scrutiny over its Chinese origins, with concerns raised about user data sharing with the Chinese government and the dissemination of propaganda and misinformation.

The company is currently in negotiations with the Biden administration regarding its data privacy plans. TikTok maintains that it has never been asked by the Chinese government to share US user data and that it would refuse such a request if made.

In 2020, the Trump administration in the United States issued executive orders that sought to ban TikTok, citing national security concerns related to data privacy.

However, these bans were later blocked by court rulings, and negotiations between TikTok and various US companies, including Oracle and Walmart, resulted in the formation of a new entity called TikTok Global. This partnership was intended to address the concerns raised by the US government.

Since then, TikTok has taken steps to address data privacy and security concerns. They have established transparency centers, expanded their content moderation policies, and emphasized their commitment to safeguarding user data. TikTok’s data is stored in the United States, with backup copies in Singapore.

In addition to Pappas’ departure, TikTok CEO Chew announced an organizational shake-up. Zenia Mucha, a former communications executive at Disney, will join TikTok as the Chief Brand and Communications Officer, overseeing marketing and public relations. Adam Presser, currently the chief of staff, will take on the role of head of operations.

intel

Intel spends $33 billion in Germany in landmark expansion

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As a portion of its ambition for development in Europe, Intel (INTC.O) will invest over thirty billion euros (approximately 33 billion USD) in developing two chip-making facilities in Magdeburg. German Chancellor Olaf Scholz welcomed the agreement on Monday as the most significant overseas investment that Germany has ever received.

Intel
Image Source: freetimelearning.com

According to an individual who is acquainted with the situation, Berlin has decided to assist the worth of up to 10 billion euros to the American chipmaker, above the 6.8 billion euros it had previously given Intel to construct two advanced manufacturing plants in the eastern metropolis.

The government along with the territory of Saxony-Anhalt, where Magdeburg is situated, were thanked by the CEO of Intel Pat Gelsinger for achieving the goal of a lively, environmentally friendly, leading-edge semiconductor sector in Germany as well as the EU.

Also Read: Japan’s Suzuki to Make ‘flying cars’ with SkyDrive

To regain its position as the industry leader in chip manufacturing and more effectively rival AMD Nvidia (NVDA.O), (AMD.O), alongside Samsung, Intel has invested billions in constructing plants on three different continents.

“Today’s agreement is an important step for Germany as a high-tech production location – and for our resilience,” Scholz said after Monday’s signing.

“With this investment, we are catching up technologically with the world’s best and expanding our own capacities for the ecosystem development and production of microchips.”

Source: reuters.com

It’s the third significant deal of Intel in just a few days with the German transaction. Whilst Israel announced that Intel will invest a total of $25 billion in manufacturing there on Sunday, Poland, an additional member of the European Union (EU), received proposals for a 4.6 billion USD chip facility on Friday.

As Per McKinsey, the global semiconductor manufacturing market is predicted to grow from 600 billion dollars in 2021 to an estimated trillion-dollar sector by 2030.

having Germany anxious about dropping its appeal as an investment destination, both the United States along with Europe are working to entice major manufacturing companies with a combination of government support and advantageous laws.

Berlin’s authorities are spending millions of euros on incentives to entice technology companies, despite rising concern over the supply chain’s frailty and its reliance on South Korea as well as Taiwan for semiconductors.

“The size of Intel’s reaffirmed and increased commitment to its expansion in Magdeburg speaks louder than words about Germany’s appeal as a high-tech business location,” said Robert Hermann, CEO of government agency Germany Trade & Invest.

Source: reuters.com
SEC

Binance, SEC strike deal to keep US customer assets in country

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Binance, the largest cryptocurrency exchange globally, and its U.S. affiliate, Binance.US, have reached an agreement with the U.S. Securities and Exchange Commission (SEC) to keep U.S. customer assets within the United States until the resolution of an ongoing lawsuit.

This information was disclosed in court documents filed on Friday and is pending approval from the federal judge overseeing the case. The agreement aims to prevent U.S. customer assets from being moved offshore and limits access to these assets solely to Binance.US employees.

SEC
Image Source: zawya.com

The SEC filed a lawsuit on June 5 against Binance, its CEO Changpeng Zhao, and Binance.US’s operator, accusing Binance of activities such as artificially inflating trading volumes, diverting customer funds, failing to restrict U.S. customers, and misleading investors regarding market surveillance controls.

This lawsuit, along with a separate one filed by the SEC against U.S. exchange Coinbase, represents an intensified regulatory crackdown on the cryptocurrency industry.

While the agreement does not resolve the SEC lawsuit, it includes measures to ensure that Binance.US officials do not have access to private keys for wallets, hardware wallets, or root access to Binance.US’s Amazon Web Services tools.

The SEC stated that the emergency relief order obtained for Binance.US customers will safeguard their assets and enable them to continue withdrawing those assets.

Also Read: Nasdaq to buy fintech firm Adenza for $10.5 billion

Gurbir Grewal, director of the SEC’s enforcement division, emphasized the necessity of these restrictions, citing concerns about Binance and Changpeng Zhao having control over customer assets and potentially mishandling or diverting them.

Binance responded through a spokesperson, expressing satisfaction that the disagreement over the SEC’s emergency relief request was resolved on mutually acceptable terms while reiterating the commitment to ensuring user funds’ safety on all Binance-affiliated platforms.

“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please… these prohibitions are essential to protecting investor assets,” said Gurbir Grewal, director of the SEC’s enforcement division, in a statement.

In a statement on Saturday, a representative for Binance said, “Although we maintain that the SEC’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms. User funds have been and always will be safe and secure on all Binance-affiliated platforms.”

The proposed agreement also entails Binance.US creating new crypto wallets inaccessible to employees of the global Binance exchange, providing additional information to the SEC, and agreeing to an expedited discovery schedule.

In response to the SEC’s request to freeze Binance.US’s assets, the U.S. affiliate suspended dollar deposits and set a June 13 deadline for customers to withdraw their dollar funds.