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Google Wins Rare Legal Battle as €1.49 Billion Fine is Overturned

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Google Wins Rare Legal Battle as €1.49 Billion Fine is Overturned

Google has successfully overturned a €1.49 billion (£1.26 billion) fine imposed by the European Union for allegedly blocking rival online search advertisers. The European Commission accused Google of abusing its market dominance by limiting third-party rivals from displaying search ads between 2006 and 2016.

However, Europe’s second-top court found that the Commission “committed errors in its assessment,” leading to the annulment of the hefty fine. In response, the European Commission stated it would “reflect on possible next steps,” which may include an appeal to the EU’s top court.

In a statement, Google expressed satisfaction with the ruling: “We are pleased that the court has recognized errors in the original decision and annulled the fine.” The company also noted it would review the full decision closely.

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This verdict marks a rare win for Google, which has faced fines totaling €8.2 billion between 2017 and 2019 over various antitrust violations. Despite this success, Google remains under scrutiny globally. Just recently, the UK’s Competition and Markets Authority (CMA) provisionally found that it used anti-competitive practices to dominate the market. Additionally, the U.S. government has taken legal action against Google’s parent company, Alphabet, alleging it operates an illegal monopoly in the ad tech market. Google maintains that its market dominance results from the effectiveness of its products.

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Meta Forms Data-Sharing Alliance with UK Banks to Combat Fraud

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Meta Forms Data-Sharing Alliance with UK Banks to Combat Fraud

Meta, the parent company of Facebook, announced a new collaboration with two major UK banks, NatWest and Metro Bank, to tackle the rising issue of online scams. This initiative, part of Meta’s Fraud Intelligence Reciprocal Exchange (FIPE), aims to enhance fraud detection by allowing UK banks to share vital data directly with Meta. The goal is to identify and dismantle accounts involved in fraudulent activities.

The system has already seen significant success. For example, Meta claims it shut down 20,000 scam accounts linked to a network selling fake concert tickets in both the UK and the U.S., thanks to data provided by British banks.

Meta’s head of counter-fraud, Nathaniel Gleicher, emphasized the importance of collaboration between financial institutions and social media platforms, noting that such partnerships enable faster detection and removal of scam accounts.

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Meta’s existing policies already prohibit the promotion of financial fraud, including deceptive schemes such as loan scams and fake investment promises. However, this new collaboration represents a significant step in the ongoing fight against online financial crimes. Additional banks are expected to join the program soon, further expanding its reach.

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Goldman-backed Starling Bank hit with $38.5 million fine for financial crime prevention failures

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Goldman-backed Starling Bank hit with $38.5 million fine for financial crime prevention failures

Starling Bank, the British digital lender backed by Goldman Sachs, has been fined £29 million ($38.5 million) by the U.K.’s Financial Conduct Authority (FCA) for failing to adequately address financial crime risks. The penalty was imposed due to weaknesses in Starling’s financial sanctions screening system and for repeatedly breaching rules related to opening accounts for high-risk customers.

Between 2017 and 2023, Starling grew from 43,000 to 3.6 million customers, but its internal controls to combat financial crimes did not keep pace with this rapid expansion. Despite agreeing to stop opening accounts for high-risk customers during the investigation, Starling still opened 54,000 accounts for 49,000 high-risk individuals between September 2021 and November 2023, violating FCA guidelines.

In response, Starling Bank acknowledged the failings and emphasized steps taken to strengthen its risk management systems. David Sproul, chairman of Starling Bank, apologized and assured that the bank had learned from its past mistakes. He noted the company’s efforts to improve governance and controls, which he believes will support the bank’s ongoing growth.

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The FCA concluded its investigation in 14 months, significantly faster than its typical 42-month average for similar cases.

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OpenAI CTO Mira Murati Announces Departure After 6 Years

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OpenAI CTO Mira Murati Announces Departure After 6 Years

OpenAI’s Chief Technology Officer, Mira Murati, has announced her departure from the company after six and a half years. In a memo shared on X, Murati expressed that she had made the “difficult decision” to step away from OpenAI, citing her desire for personal exploration and reflection.

“There’s never an ideal time to step away from a place one cherishes, yet this moment feels right,” Murati wrote, emphasizing her commitment to ensuring a smooth transition for the company during this critical time.

Her exit follows other high-profile departures from the company, including co-founder Ilya Sutskever and former safety leader Jan Leike in May, as well as co-founder John Schulman, who left last month to join rival company Anthropic.

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Murati’s departure comes at a time when OpenAI is pursuing a new funding round, potentially valuing the company at over $150 billion, with significant investments anticipated from major players like Thrive Capital, Microsoft, and Nvidia. OpenAI, the company behind ChatGPT, has seen rapid growth since 2022 but has also faced internal controversies and employee turnover, sparking concerns about its ability to scale safely.

Murati became a public figure when she was appointed interim CEO last November after the abrupt ousting of CEO Sam Altman. Despite her departure, she remains focused on supporting OpenAI’s momentum in the coming months.

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