Tech
EU Regulators Accuse Meta of Antitrust Violations Over New Ad-Supported Service
Meta, the parent company of Facebook, faced allegations from EU regulators on Monday for failing to comply with the bloc’s landmark antitrust rules concerning its recently introduced ad-supported social networking service. The European Commission criticized Meta’s subscription model, labelling it a “pay or consent” scheme. This model forces users to either pay to use Meta’s platforms without ads or consent to their data being processed for personalized advertising. This ad-supported subscription service was introduced for Facebook and Instagram in Europe last year.
EU Commission’s Preliminary Findings
The Commission’s preliminary view suggests that this binary choice compels users to agree to the combination of their personal data, thereby failing to provide a less personalized but equivalent version of Meta’s social networks. In a statement on Monday, the regulators emphasized that users should have access to a service that utilizes less of their personal data for ad personalization.
Meta’s Response
A Meta spokesperson responded to the allegations by stating that the company’s ad-supported subscription model adheres to the directives of the highest court in Europe and complies with the Digital Markets Act (DMA). “We look forward to further constructive dialogue with the European Commission to bring this investigation to a close,” the spokesperson added. Meta introduced this new model following a ruling from the European Court of Justice last year, which allowed companies to offer an alternative version of their service that does not rely on data collection for ads.
Commission’s Critique
Despite Meta’s justification, the Commission found two key issues with Meta’s ad-supported offering. First, it doesn’t allow users to choose a service that uses less personal data but is still equivalent to the personalized ads-based service. Regulators asserted that users should be able to access an equivalent service with reduced data usage for ad personalization.
Digital Markets Act (DMA) Enforcement
The DMA, enforceable since March this year, aims to curb anti-competitive practices by large digital companies and mandate them to open up some of their services to rivals. Companies found in breach of the DMA could face substantial fines, potentially up to 10% of their global annual revenue, and for repeated breaches, this figure could rise to 20%. For Meta, a breach of the DMA could result in a penalty as high as $13.4 billion, based on the company’s 2023 annual earnings.
Next Steps for Meta
Following the receipt of the EU’s preliminary findings, Meta has the opportunity to defend itself in writing. The Commission’s investigation, launched in March alongside two other probes into tech giants Apple and Alphabet, will conclude within 12 months from the start of the proceedings.
Meta’s compliance with the EU’s antitrust rules remains under scrutiny, as the company navigates these regulatory challenges while attempting to align its business practices with the DMA’s requirements.
Tech
Ferrari Unveils First Fully Electric Car
Ferrari has revealed its first fully electric vehicle, the Luce, marking a major shift for the iconic sports car brand.
The new EV, priced at about $640,000 (£474,320), was unveiled in Rome by Ferrari chief executive Benedetto Vigna, who said the project had taken five years to develop.
Named “Luce” — the Italian word for “light” — the model breaks with traditional Ferrari styling as the company’s first-ever five-seater vehicle.
The car was developed in collaboration with LoveFrom, the creative agency founded by former Apple design chief Jony Ive.
Reaction online has been sharply divided, with some social media users criticising the design while others praised it as a bold and innovative direction for the famous Italian manufacturer.
Ferrari said the Luce uses a Ferrari-built electric motor on each wheel, allowing it to accelerate from 0 to 60mph (96km/h) in around 2.5 seconds.
The company also stressed that all major components are produced in-house, which it says will allow Ferrari to maintain and repair the vehicle long into the future while helping preserve resale values.
The launch comes as several luxury carmakers reconsider their electric vehicle strategies because of weaker-than-expected demand and rising competition from Chinese manufacturers.
Brands including Lamborghini and Porsche have recently scaled back parts of their EV ambitions.
At the same time, automakers such as Ford Motor Company and Volkswagen have increased focus on petrol-powered vehicles, particularly in the United States, following slower EV demand and regulatory changes introduced under Donald Trump.
Ferrari chief design officer Flavio Manzoni acknowledged that the concept of an electric Ferrari with a radically different appearance would be “polarising”.
Speaking in an interview with YouTuber Cleo Abram, Manzoni said criticism was part of innovation and predicted public opinion would shift over time.
Ferrari has also confirmed it will continue producing petrol and hybrid models alongside its new all-electric vehicle lineup.
Tech
OpenAI Revises Pentagon AI Deal After Backlash Over Military Use
OpenAI says it is amending its recent agreement with the United States Department of Defense following criticism over the potential use of its technology in classified military operations.
Chief executive Sam Altman announced that the company will insert clearer restrictions into the contract, explicitly prohibiting the intentional use of its systems for domestic surveillance of US citizens and nationals.
The controversy emerged after tensions between OpenAI’s rival Anthropic and the Pentagon, related to concerns that Anthropic’s AI model, Claude, could be used for mass surveillance or in fully autonomous weapons systems.
In a statement over the weekend, OpenAI said its Pentagon agreement contained “more guardrails than any previous agreement for classified AI deployments”. However, Altman later acknowledged that the rollout of the deal had been rushed.
“The issues are super complex, and demand clear communication,” he wrote on social media, adding that the company had sought to de-escalate tensions but recognised that the announcement appeared “opportunistic and sloppy”.
Under the revised terms, intelligence agencies such as the National Security Agency would require additional contractual modifications before being permitted to use OpenAI systems.
The backlash has had measurable effects. Reports indicate that day-over-day uninstalls of the ChatGPT mobile app surged sharply following the announcement, while Anthropic’s Claude climbed to the top of Apple’s App Store rankings.
Anthropic’s model had previously been blacklisted by the administration of Donald Trump after the company refused to abandon a corporate principle barring the use of its technology in fully autonomous weapons. Despite that position, reports have since indicated that Claude was used in the US-Israel conflict with Iran shortly after the ban.
The Pentagon has declined to comment on its arrangements with Anthropic.
Tech
X to stop Grok AI from undressing images of real people
X has announced that its artificial intelligence tool, Grok, will no longer be able to edit images of real people to depict them in revealing clothing in jurisdictions where such activity is illegal, following widespread backlash over the misuse of sexualised AI deepfakes.
In a statement published on the platform, X said it had introduced new safeguards to prevent the Grok account from being used to manipulate photos of real individuals in a sexualised manner. “We have implemented technological measures to prevent the Grok account from allowing the editing of images of real people in revealing clothing,” the company said.
The move has been welcomed by UK authorities, who had previously raised concerns about the tool’s use. The UK government described the decision as a “vindication” of its calls for X to take stronger action to control Grok. Media regulator Ofcom also said the change was a “welcome development”, while stressing that its investigation into whether the platform breached UK laws is still under way.
“We are working round the clock to progress this and get answers into what went wrong and what’s being done to fix it,” Ofcom said, signalling continued scrutiny despite the latest measures.
Technology Secretary Liz Kendall welcomed X’s announcement but emphasised the need for accountability. She said she would “expect the facts to be fully and robustly established by Ofcom’s ongoing investigation”, underlining the government’s commitment to ensuring online safety rules are upheld.
However, campaigners and victims of AI-generated sexualised images say the decision has come after significant harm had already been caused. Journalist and campaigner Jess Davies, who was among women whose images were edited using Grok, described the changes as a “positive step” but said the feature should never have been permitted in the first place.
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