Telegram CEO Arrested Over App’s Criminal Activity
State of Play: Telegram CEO Pavel Durov was arrested in Paris in late August as part of an ongoing investigation into the platform’s complicity in criminal activities on the app. Released on €5 million bail ($5.56 million), Durov is now under formal investigation for inadequate moderation of child sexual abuse material and facilitating illicit transactions and drug trafficking. Durov has since stated he should not be held accountable for third-party misuse of the platform. Despite Telegram’s existing content moderation policies, cybersecurity experts argue that Telegram's system is weaker than that of other social platforms. However, Telegram's chats are not encrypted, allowing investigators access, but similar criminal activities might be occurring on other fully encrypted apps.
Why it Matters: Following Durov’s arrest, the price of Telegram’s cryptocurrency, Toncoin (TON), crashed by a third, though soon rebounded, while downloads of the Telegram app soared. More broadly, this high profile arrest reawakens the debate over what role social media networks have in ensuring content moderation, in particular in preventing illegal activity, and the outcome of the investigation will have wider implications for the digital space.
Twitter/X Banned in Brazil
State of Play: The Supreme Court of Brazil has voted to uphold a ban on the social media platform X following a monthslong feud between Brazilian Supreme Court Justice Alexandre de Moraes and X owner Elon Musk. The public feud began when the justice had ordered for the suspension of accounts accused of spreading misinformation, with most of these accounts belonging to supporters of former president Jair Bolsonaro. Moraes accused X of failing to moderate this content that allegedly spread misinformation and violence, which eventually resulted in the nationwide ban of the platform. The ban has caused division in Brazil, and Justice Moraes has set a $9,000 fine for anyone found to still be accessing X via a virtual private network (VPN). Elon Musk has commented on the issue via X, stating: “Free speech is the bedrock of democracy and an unelected pseudo-judge in Brazil is destroying it for political purposes." Despite Elon’s protests, X announced they will comply with Brazil’s Supreme Court in hopes of eventually lifting the ban.
Why it Matters: Without access to X, many Brazilians have turned to Bluesky as an alternative. For context, Bluesky is a decentralized social media platform developed by former Twitter CEO Jack Dorsey. The platform has an interface similar to X; however, users have more control over the content they see on their main feed and overall experience. On Bluesky, users can create and join feeds for specific interests and topics. Additionally, Bluesky offers community-driven tools for blocking content and accounts. Bluesky is growing quickly in popularity in Brazil as the social media company announced that it had registered half a million new Brazilian users only two days after the ban.
Nvidia Allegedly Issued Subpoenas by U.S. DOJ
State of Play: On Tuesday, September 3rd, Bloomberg reported that the U.S. Department of Justice had served subpoenas to Nvidia, a technology company who has been a pioneer in the development of AI software, as it deepens its investigation into the company for allegedly violating antitrust laws. Nvidia released a statement the following day announcing that it did not receive a subpoena, but “inquired” with the Justice Department. Bloomberg then reported that the DOJ sent Nvidia a “civil investigative demand” over reports of Nvidia abusing its market dominance.
Why it Matters: If Nvidia were to eventually be issued a subpoena, that would indicate the investigation has intensified and would signify a step closer to a potential lawsuit. However, for now, Bloomberg reports that Justice officials are only investigating whether Nvidia has abused its market dominance. As of now, Nvidia’s AI accelerators have between 70% and 95% of the market share for AI chips, and a potential lawsuit could greatly impact Nvidia’s prominence in the AI industry.
U.S. Antitrust Trial Puts Google’s Digital Ad Business at Risk
State of Play: The U.S. Department of Justice has sued Google for monopolizing its digital advertising business through a series of anticompetitive measures. The complaint alleges that Google has been controlling the technology behind website ads by tying its tools for both publishers and advertisers as Google exists on multiple sides of the ad market (buying, selling, and ad exchanges), ultimately shutting competitors out. However, Google has denied these claims, communicating that the company is not required to “share technological advantages with rivals.”
Why it Matters: According to the Justice Department, Google owns 91% of the market for ad servers, upwards of 85% for ad networks and more than 50% of the market for ad exchanges. A victory for the DOJ could potentially mean a breakup of the Google Ad Manager Suite, which is the platform that allows brands to create and monitor campaigns and lets publishers sell inventory, placing more ad revenue directly into publishers’ hands.
Meta and Spotify Reportedly Developing New Music Feature
State of Play: Meta and Spotify are reportedly partnering up on a potential new music feature that would allow Instagram users to continuously share what music they are listening to. The feature builds off Instagram Notes, which allows users to share 30-second song clips. Currently, Instagram offers a catalog of songs for users to choose from; however, this new feature would allow users to choose from any song on Spotify.
Why it Matters: Developers have indicated that this partnership could better position Instagram to compete with TikTok in mainstream music discovery. Additionally, with a potential ban of TikTok on the horizon, the music business will need to find a new platform to market new artists and songs.
Tech Giants Announce Conversational AI for Mobile Devices
State of Play: Google announced AI voice assistant Gemini Live to compete with OpenAI’s conversational Voice Mode. It’s currently available in English on the Gemini app to Android users with a $20 per month Gemini Advanced subscription. Through its deep integration with Android devices, Gemini Live allows users talk or use voice commands even when their phones are locked and allows them to transfer between apps as if on a regular phone call.
Why it Matters: Tech giants continue to push ahead in the AI race, and advancing conversational chat bots is a way to develop technology in forms that make it convenient for users to adopt. While Gemini Live is a check in Androids’ column, Apple announced the integration of its AI system “Apple Intelligence” in the new iPhone 16 and 16 Pro, which can “help you write, express yourself, and get things done effortlessly” across apps. We can expect that AI will continue to evolve in ways that make it an inevitable part of our daily lives.
