Meta Challenges $840M EU Antitrust Penalty
State of Play: Meta is appealing an $840 million antitrust fine from the European Union, issued in November 2024. The penalty claims Meta unfairly integrated Facebook Marketplace into the Facebook app, giving it an unfair advantage over other online classified ad services. Margrethe Vestager, former Executive VP of the European Commission, stated this violates E.U. antitrust rules. Meta argues that Marketplace has not hindered competition from platforms like eBay and Vinted.
Why it Matters: Meta's leadership views the Commission’s regulations as overreach and has publicly criticized EU AI regulations, which have hindered launching its AI chatbot and image creation tools in Europe. This conflict has led to a partnership between Mark Zuckerberg and President Trump, with Zuckerberg seeking U.S. intervention against EU antitrust fines on American tech companies. Tech leaders, including Zuckerberg, are increasingly appealing to the Trump administration, as shown by Meta’s recent removal of fact-checking from its content moderation policies.
Apple Removes Advanced Data Protection (ADP) Tool in the UK Following Government Request
State of Play: Apple has withdrawn its Advanced Data Protection (ADP) tool from the UK market after the government demanded access to encrypted user data under the Investigatory Powers Act (IPA). The IPA compels companies to provide the government with access to communications when requested. Apple refused to comply and create a backdoor, citing concerns over user data privacy and security, and instead opted to remove the ADP feature for all UK users. The ADP, which uses end-to-end encryption, previously only allowed account holders to view stored photos and documents in iCloud.
Why it Matters: This decision marks another flashpoint in the ongoing power struggle between governments and tech companies over control of digital spaces. Apple’s decision signals a firm stance against weakening encryption, recognizing that compliance in one jurisdiction could set a precedent for broader government access worldwide. This development comes on the heels of Zuckerberg’s criticisms of governments pushing what he called politically motivated censorship, underscoring the deepening rift between Big Tech and regulators. Tech giants are drawing hard lines on privacy and control while governments push for more access under the banner of security. The question isn’t just about who wins this standoff, but what it means for the future of digital sovereignty and user rights worldwide.
Sam Altman Rejects Elon Musk’s Bid to Purchase OpenAI’s Nonprofit
State of Play: Sam Altman firmly rejected an unsolicited $97.4 billion bid from a group of investors headed by billionaire Elon Musk to acquire OpenAI’s nonprofit. To prevent future power struggles, OpenAI implemented special voting rights for its nonprofit board, ensuring it remains insulated from hostile takeovers. Meanwhile, Musk’s latest Grok release intensifies competition with Open AI’s GPT-4o and Deepseek-R1, escalating the AI arms race.
Why it Matters: There are a variety of motives at play that could be influencing Musk’s seemingly resolute commitment to purchasing OpenAI. One reason could be that, by going public with his plans to purchase the company, he has potentially made Altman’s goal of going for-profit much more difficult. Musk’s bid raised the floor for the nonprofit’s valuation significantly – to go for-profit, Altman will need to compensate the non-profit side fairly, and Musk has now set a high bar. Ultimately, Musk’s attempted takeover adds another layer to the competition for AI dominance, where control over leading models could influence entire industries. His bid, whether a serious acquisition attempt or strategic disruption, puts pressure on OpenAI at a time when it’s expanding its market reach.
Snap Says TikTok Uncertainty Has Benefited Its Business
State of Play: During the company’s Q4 earnings call on February 4th, CEO Evan Spiegel communicated that the uncertainty surrounding the future of TikTok has positively impacted Snap’s business. During the period TikTok went dark, Snap reported notably higher engagement. However, Speigel said that he does not want to “draw too many conclusions” from that brief period.
Why it Matters: As TikTok’s future remains uncertain, other social media platforms such as Snap may continue to reap the benefits in terms of both usership and advertising revenue. Advertisers and creators alike are focused on how they can maximize engagement and may look to turn their focus toward other platforms whose futures and trajectories are more certain.
President Trump Seeks U.S. TikTok Buyer
State of Play: With the future of TikTok still uncertain, several tech giants have emerged as potential buyers to save the U.S. branch of the platform. Oracle has been reportedly interested in the deal as the company is already managing local operations of the app. The company has also allegedly been involved in multiple discussions with the Trump administration about taking ownership of the app in the U.S. Amazon and Microsoft have also reportedly been in discussions about the app’s future.
Why it Matters: As of now, we expect one of the major players to buy TikTok. ByteDance, TikTok’s parent company, is seeking an alternative plan to retain control. Company leaders have met with White House officials to negotiate a joint venture with U.S. investors, allowing joint control and potentially new regulations. The company has until the first week of April to finalize a deal, or TikTok could be cut off from U.S. users again.
X Expands Lawsuit Over Advertiser “Boycott”
State of Play: X has expanded its antitrust lawsuit against advertisers, which CEO Linda Yaccarino calls a “systemic illegal boycott.” Initially filed in August 2024 against the World Federation of Advertisers (WFA), the Global Alliance of Responsible Media (GARM), and partner companies, the lawsuit claimed WFA orchestrated an advertiser boycott of X through GARM to force compliance with GARM Brand Safety Standards. The original suit named companies like CVS, Mars, and Twitch. The amended complaint now includes Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell.
Why it Matters: The latest legal filing claims that at least 18 companies paused advertising on X between November and December 2022, following Elon Musk’s takeover. This could explain the drop in the platform’s ad revenue, where X lags behind Facebook, Instagram, YouTube, and LinkedIn. The boycott raises the question: Can X compete for more ad revenue, or has Musk’s takeover permanently changed brands’ advertising strategies on the platform?
