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.



China Curbs Exports of Key Chipmaking Components to US

The flag of China is placed next to the elements of Gallium and Germanium on a periodic table, in this illustration picture taken on July 6, 2023. (Reuters)
The flag of China is placed next to the elements of Gallium and Germanium on a periodic table, in this illustration picture taken on July 6, 2023. (Reuters)
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China Curbs Exports of Key Chipmaking Components to US

The flag of China is placed next to the elements of Gallium and Germanium on a periodic table, in this illustration picture taken on July 6, 2023. (Reuters)
The flag of China is placed next to the elements of Gallium and Germanium on a periodic table, in this illustration picture taken on July 6, 2023. (Reuters)

Beijing said Tuesday it would restrict exports to the United States of some key components in making semiconductors, after Washington announced curbs targeting China's ability to make advanced chips.

Among the materials banned from export are metals gallium, antimony and germanium, Beijing's commerce ministry said in a statement that cited "national security" concerns.

Exports of graphite, another key component, will also be subject to "stricter reviews of end-users and end-uses", the ministry said.

"To safeguard national security interests and fulfill international obligations such as non-proliferation, China has decided to strengthen export controls on relevant dual-use items to the United States," Beijing said.

"Any organization or individual in any country or region violating the relevant regulations will be held accountable according to the law," it added.

In its own latest curbs, Washington on Monday announced restrictions on sales, without additional permission, to 140 companies including Chinese chip firms Piotech and SiCarrier.

They also impact Naura Technology Group, which makes chip production equipment, according to the US Commerce Department.

The move expands Washington's efforts to curb exports of state-of-the-art chips to China, which can be used in advanced weapons systems and artificial intelligence.

The new US rules also include controls on two dozen types of chip-making equipment and three kinds of software tools for developing or producing semiconductors.

Beijing swiftly vowed to defend its interests, saying the United States "abuses export control measures" and has "hindered normal economic and trade exchanges".

- 'Weaponized' trade -

And on Tuesday, China said Washington had "politicized and weaponized economic, trade and technological issues" as it unveiled its own export curbs.

The moves also restrict the exports of "dual-use items to United States military users or for military purposes", Beijing said.

China accounts for 94 percent of the world's production of gallium -- used in integrated circuits, LEDs and photovoltaic panels -- according to a report by the European Union published this year.

For germanium, essential for fiber optics and infrared, China makes up 83 percent of production.

Beijing last year had already tightened restrictions on exporters of the metals, requiring them to provide information on the final recipient and give details about their end use.

But the curbs unveiled Tuesday now ban them outright.

It had also previously restricted curbs on exports of certain types of graphite --also key to making batteries for electric vehicles.

"The move is clearly a retaliatory strike at the US," Dylan Loh, an assistant professor at Singapore's Nanyang Technological University, told AFP.

"It drives home an important point which is that China is not completely passive (and) there are some cards it can play and hit the US with as well with regards to chips," Loh added.

These "back and forth curbs" could create supply chain disruption, as well as inflationary pressures, should they affect trade for third parties, said Chong Ja Ian, an associate professor of political science from the National University of Singapore.

But while the metals play critical roles in high-tech industries, they are upstream in the supply chain, which means their immediate impact on production "is limited", Brady Wang, associate director at technology market research firm Counterpoint, told AFP.

"As the US-China trade tensions have persisted for some time, many intermediary manufacturers in the supply chain have been stockpiling these materials," Wang added.