One Year in, EU Turning Up Heat in Big Tech Fight

People walk past an advertisement for Huawei's Honor smartphones at an airport in Shenzhen, Guangdong province, China February 27, 2019. (Reuters)
People walk past an advertisement for Huawei's Honor smartphones at an airport in Shenzhen, Guangdong province, China February 27, 2019. (Reuters)
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One Year in, EU Turning Up Heat in Big Tech Fight

People walk past an advertisement for Huawei's Honor smartphones at an airport in Shenzhen, Guangdong province, China February 27, 2019. (Reuters)
People walk past an advertisement for Huawei's Honor smartphones at an airport in Shenzhen, Guangdong province, China February 27, 2019. (Reuters)

If 2024 already looks like an annus horribilis for big tech in the EU, the months ahead could prove a winter of discontent as the bloc wields a fortified new legal armory to bring online titans to heel.
Since August 2023, the world's biggest digital platforms have faced the toughest ever tech regulations in the European Union -- which shows no sign of slowing down in enforcing them, said AFP.
Brussels scored its first major victory after forcing TikTok to permanently remove an "addictive" feature from a spinoff app in Europe in August, a year after content moderation rules under the bloc's Digital Services Act (DSA) started to apply.
That followed a seven-day period earlier in the summer in which Brussels issued back-to-back decisions targeting Apple, Meta and Microsoft.
And more is to come before 2024 is over, say officials.
The EU's moves are all thanks to two laws, the DSA -- which forces companies to police online content -- and its sister competition law, the Digital Markets Act (DMA) -- which gives big tech a list of what they can and can't do in business.
Since the DMA curbs kicked in in March, the EU has notably pressured Apple to back down in a spat with Fortnite maker Epic over a gaming app store.

"The European Commission is doing the job: it is implementing the DMA with limited resources and within a short timeframe compared to lengthy competition cases," said EU lawmaker Stephanie Yon-Courtin, who focuses on digital issues.
Jan Penfrat, senior policy advisor at online rights group EDRi, says changes are already visible: the DSA giving users the "right to complain" when content is removed or accounts are suspended, or the DMA allowing them to select browsers and search engines via choice screens.
"This is just the beginning," Penfrat said.
He notes for instance that EDRi and other groups in July compiled a list of areas where Apple fails to follow the DMA. "We expect the commission to go after those as well in time," Penfrat told AFP.
High-profile tests
Apple is the biggest thorn in the EU's side as the DMA's chief critic, claiming it puts users' security at risk.
The iPhone maker became the first company in June to face formal accusations of breaking the DMA's rules and faces heavy fines unless it addresses the charges.
Apple announced changes to the App Store on August 8 to comply with the DMA, although smaller tech firms under the Coalition for App Fairness slammed them as "confusing". The EU is now evaluating Apple's plans.
It is too early to say whether Apple will fall into line without the EU's heavy hand but one thing is clear: Brussels is ready for a fight.
Another high-profile test of the bloc's new powers will be X, with regulators to decide as early as September whether the former Twitter should be made to comply with the DMA.
The DSA's rules on curbing disinformation and hate speech have already sparked a spectacular clash between X's billionaire owner Elon Musk and the bloc's digital chief Thierry Breton -- with the specter of fines or an outright EU ban on the site if violations persist.
Full speed
EU competition chief Margrethe Vestager has said that Brussels is going at "full speed".
This was always the goal: to cut short the length of competition investigations, which lasted years, to a maximum of 12 months under the DMA.
But companies can challenge fines or decisions in the EU courts, which could mean years of subsequent legal battles, lawyers say.
And difficulties can also come from elsewhere: Apple said in June it would delay the rollout of new AI features in Europe because of "regulatory uncertainties".
EDRi's Penfrat accused Apple of fearmongering by blaming the EU for certain features not arriving in the bloc in order "to put pressure on the commission to not be too tough in the enforcement".
Pressure building
Apple aside, big tech isn't happy with DMA action so far.
"Instead of announcing possible punitive measures with political posturing, these probes under the DMA should focus on fostering open dialogue between the European Commission and the companies concerned," Daniel Friedlaender, head of tech lobby group CCIA Europe told AFP.
Undeterred, Brussels is turning up the heat.
In addition to potential new DMA curbs on X, the EU could soon add Telegram to its list of "very large" platforms, such as WhatsApp, that face the DSA's strictest rules.
Brussels wants no corner of the digital sphere left untouched.
That includes the critical area of artificial intelligence, with the EU currently looking into deals between giants and generative AI developers, such as Microsoft and its $13-billion tie-up with ChatGPT maker OpenAI.



AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP
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AI to Track Icebergs Adrift at Sea in Boon for Science

© Jonathan NACKSTRAND / AFP
© Jonathan NACKSTRAND / AFP

British scientists said Thursday that a world-first AI tool to catalogue and track icebergs as they break apart into smaller chunks could fill a "major blind spot" in predicting climate change.

Icebergs release enormous volumes of freshwater when they melt on the open water, affecting global climate patterns and altering ocean currents and ecosystems, reported AFP.

But scientists have long struggled to keep track of these floating behemoths once they break into thousands of smaller chunks, their fate and impact on the climate largely lost to the seas.

To fill in the gap, the British Antarctic Survey has developed an AI system that automatically identifies and names individual icebergs at birth and tracks their sometimes decades-long journey to a watery grave.

Using satellite images, the tool captures the distinct shape of icebergs as they break off -- or calve -- from glaciers and ice sheets on land.

As they disintegrate over time, the machine performs a giant puzzle problem, linking the smaller "child" fragments back to the "parent" and creating detailed family trees never before possible at this scale.

It represents a huge improvement on existing methods, where scientists pore over satellite images to visually identify and track only the largest icebergs one by one.

The AI system, which was tested using satellite observations over Greenland, provides "vital new information" for scientists and improves predictions about the future climate, said the British Antarctic Survey.

Knowing where these giant slabs of freshwater were melting into the ocean was especially crucial with ice loss expected to increase in a warming world, it added.

"What's exciting is that this finally gives us the observations we've been missing," Ben Evans, a machine learning expert at the British Antarctic Survey, said in a statement.

"We've gone from tracking a few famous icebergs to building full family trees. For the first time, we can see where each fragment came from, where it goes and why that matters for the climate."

This use of AI could also be adapted to aid safe passage for navigators through treacherous polar regions littered by icebergs.

Iceberg calving is a natural process. But scientists say the rate at which they were being lost from Antarctica is increasing, probably because of human-induced climate change.

 


AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
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AMD Predicts Weaker First-Quarter Sales, Shares Plunge on Nvidia Comparisons

An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)
An AMD logo and a computer motherboard appear in this illustration created on August 25, 2025. (Reuters)

Advanced Micro Devices on Tuesday forecast a slight decline in quarterly revenue, raising concerns about whether it ​can effectively challenge Nvidia in the booming AI market and sending its shares tumbling 8% in after-hours trade.

The lackluster prediction comes despite an unexpected boost from sales of certain artificial intelligence chips to China, which began in the last quarter after the Trump administration approved a license for orders that AMD received in early 2025.

And without those sales to China which generated $390 million, AMD's data-center segment would have missed estimates for the fourth quarter.

AMD said it expects revenue of about $9.8 billion this quarter, plus or minus $300 million. That's down from $10.27 billion in the fourth-quarter which was up 34% year-on-year and ahead of LSEG ‌estimates for $9.67 billion.

PALES ‌NEXT TO NVIDIA

Though AMD is seen as one of the ‌few ⁠contenders ​that can seriously ‌challenge Nvidia, investors noted the stark contrast between the two companies' performances. AMD expects an adjusted gross margin of 55% this quarter. Nvidia has said it expects adjusted gross margin in the mid-70% range during its fiscal 2027.

"The expectations for large blowout quarters for AI-related hardware companies have skewed what the market is looking for," said Bob O'Donnell, president of TECHnalysis Research.

The forecast for the current first quarter includes $100 million from sales to China, where the situation remains "dynamic," AMD CEO Lisa Su said on a conference call with investors.

The US government ⁠has placed restrictions on the exports of advanced chips to China, but AMD received licenses to sell modified versions of its MI300 series ‌of AI chips there. Its MI308 chip competes with Nvidia's H20 ‍chip in China.

OPENAI SALES

AMD has accelerated its ‍product launches and is moving into selling full AI systems to better compete against Nvidia, which now ‍provides "rack-scale" systems that combine GPUs, CPUs and networking gear.

Last year, it entered into a multi-year deal to supply AI chips to ChatGPT-owner OpenAI, which would bring in tens of billions of dollars in annual revenue and give the startup the option to buy up to roughly 10% of the chipmaker.

Su reiterated on Tuesday that the company ​expects sales of a new flagship AI server to OpenAI and others to rise rapidly in the second half of this year, saying a global memory-chip crunch will not ⁠slow its plans.

"I do not believe that we will be supply-limited in terms of the ramp that we put in place," Su said.

BEYOND OPENAI

As Big Tech and governments across the globe double down on investing in AI hardware, shares in Santa Clara, California-based AMD have doubled since the start of 2025, outperforming a 60% bump in the broader chip index.

But analysts remain concerned that AMD's success remains tied to a handful of customers that rivals such as Nvidia could try to poach. Reuters reported this week that Nvidia made a $20 billion move to hire most of chip startup Groq's founders after OpenAI held chip supply discussions with the startup.

"Growth appears concentrated in large deployments and specific regions, and China shipments are significant enough to influence a quarter," said eMarketer analyst Gadjo Sevilla.

Revenue in AMD's key data-center segment grew 39% to $5.38 billion in the ‌fourth quarter. But excluding sales of the MI308, which is a data-center chip, that revenue would have been $4.99 billion, below estimates of $5.07 billion.


Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
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Switch 2 Sales Boost Nintendo Results but Chip Shortage Looms

This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)
This photo taken on November 4, 2025 shows a woman taking photos of a Super Mario figure at the Nintendo Tokyo store in Tokyo. (AFP)

The runaway success of the Switch 2 console drove up Nintendo's net profit by more than 50 percent in the nine months to December, the Japanese video game giant said Tuesday.

But a global memory chip shortage, created by frenzied demand for artificial intelligence hardware, could push up manufacturing costs.

The Switch 2 became the world's fastest-selling games console after launching to a fan frenzy last summer.

It is the successor to the original Switch, which soared in popularity during the pandemic when games such as "Animal Crossing" struck a chord during long lockdowns.

Both are hybrid devices that can be connected to a TV or used on-the-go.

In April-December, net profit jumped 51.3 percent year-on-year to 358.9 billion yen ($2.3 billion), and revenue nearly doubled on-year to 1.9 trillion yen, Nintendo said.

But the firm kept its annual unit sales target for the Switch 2 steady at 19 million, and also held its full-year net profit forecast of 350 billion yen.

"Nintendo Switch 2 got off to a good start following its launch on June 5 and unit sales continued to grow through the holiday season," the company said.

Nearly 17.4 million Switch 2 devices were sold in the nine-month period, it added.

"Maintaining momentum is certainly a big focus for Nintendo," Krysta Yang of the Nintendo-focused Kit and Krysta Podcast told AFP.

A lack of heavy-hitting first-party new games for the Switch 2 in coming months risks hindering growth, although third-party titles such as "Resident Evil Requiem" should help fill the gap, she said.

Nintendo said Tuesday it planned to release "Mario Tennis Fever" this month and "Pokemon Pokopia" in March.

While the firm is diversifying into hit movies and theme parks, consoles remain the core of its business.

The Switch 1 has now sold 155.37 million units -- overtaking the Nintendo DS console to be its best-selling hardware of all time.

But soaring prices for memory chips, used in gaming consoles as well as phones, laptops and other electronics, will likely be a headwind for the company.

Their prices have been pushed up as chipmakers focus on producing the advanced memory chips in huge demand to power AI data centers.

"Nintendo and other console manufacturers are publicly keeping quiet about the impact of the shortage," gaming industry consultant Serkan Toto told AFP.

But "users can forget the past when consoles always became cheaper in tandem with component costs falling over time", with price hikes potentially on the way in 2026, he said.

Yang said she thought a price increase for the Switch 2 "is not out of the question" but added that Nintendo "would likely exhaust all other options" before doing so.