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E.U. Takes Aim at Big Tech’s Power With Landmark Digital Act

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E.U. Takes Aim at Big Tech’s Power With Landmark Digital Act

GÖTTINGEN, Germany — The European Union was anticipated to finalize this week one of many world’s most far-reaching legal guidelines to deal with the facility of the largest tech firms, putting in guidelines that may have an effect on app shops, internet marketing, e-commerce, messaging companies and different on a regular basis digital instruments.

The legislation, known as the Digital Markets Act, could be essentially the most sweeping piece of digital coverage because the bloc enacted the world’s hardest guidelines to guard individuals’s on-line information in 2018. The laws is aimed toward stopping the most important tech platforms from utilizing their interlocking companies and appreciable sources to field in customers and squash rising rivals, creating room for brand spanking new entrants and fostering extra competitors.

What meaning virtually is that firms like Google may not gather information from totally different companies to supply focused adverts with out customers’ consent and that Apple may need to permit options to its App Retailer on iPhones and iPads. Violators of the legislation, which might seemingly take impact early subsequent 12 months, may face vital fines.

The Digital Markets Act is a part of a one-two punch by European regulators. As early as subsequent month, the European Union is predicted to succeed in an settlement on one other legislation that may drive social media firms equivalent to Meta, the proprietor of Fb and Instagram, to police their platforms extra aggressively.

With these actions, Europe is cementing its management as essentially the most assertive regulator of tech firms equivalent to Apple, Google, Amazon, Meta and Microsoft. European requirements are sometimes adopted worldwide, and the most recent laws additional raises the bar by probably bringing the businesses below a brand new period of oversight — identical to well being care, transportation and banking industries.

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“Confronted with large on-line platforms behaving like they had been ‘too large to care,’ Europe has put its foot down,” mentioned Thierry Breton, one of many high digital officers within the European Fee. “We’re placing an finish to the so-called ‘Wild West’ dominating our info area. A brand new framework that may turn out to be a reference for democracies worldwide.”

On Thursday, representatives from the European Parliament and European Council had been working behind closed doorways in Brussels to strike a closing deal. Their settlement would come after about 16 months of talks — a speedy tempo for the E.U. paperwork — and would set the stage for a closing vote in parliament and amongst representatives from the 27 nations within the union. That closing approval is considered as a formality after this week’s deal is struck.

Europe’s strikes distinction with the dearth of exercise in the US. Whereas Republicans and Democrats have held a number of high-profile congressional hearings to scrutinize Meta, Twitter and others lately, and U.S. regulators have filed antitrust instances towards Google and Meta, no new federal legal guidelines have been handed to deal with what many see because the tech firms’ unchecked energy.

Europe’s new guidelines may supply a preview of what’s to return elsewhere on the planet. The area’s 2018 privateness legislation, the Basic Knowledge Safety Regulation, which restricts the web assortment and sharing of private information, has served as a mannequin in nations from Japan to Brazil.

The trail of the Digital Markets Act confronted hurdles. Policymakers handled what watchdogs mentioned was one of many fiercest lobbying efforts ever seen in Brussels as trade teams tried to water down the brand new legislation. In addition they brushed apart issues raised by the Biden administration that the foundations unfairly focused American firms.

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Questions stay about how the brand new legislation will work in apply. Corporations are anticipated to search for methods to decrease the legislation’s influence by means of the courts. And regulators will want new funding to pay for his or her expanded oversight obligations at a time when budgets are below pressure from the pandemic.

“The stress shall be intense to point out outcomes, and quick,” mentioned Thomas Vinje, a veteran antitrust lawyer in Brussels who has represented Amazon, Microsoft and Spotify.

The Digital Markets Act is predicted to use to so-called gatekeeper platforms with a market worth of greater than 75 billion euros, or about $82 billion, which incorporates Alphabet, the proprietor of Google, and YouTube, Amazon, Apple, Microsoft and Meta.

Specifics of the legislation learn like a want record for rivals of the largest firms.

Apple and Google, which make the working techniques that run on practically each smartphone, could be required to loosen their grip. Apple would seemingly have to permit various app shops for the primary time. The legislation can be anticipated to let firms equivalent to Spotify and Epic Video games use various cost to Apple’s within the App Retailer, which costs a 30 p.c fee.

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On Android units, Google would seemingly have to offer prospects choices to make use of different e-mail and search companies on handsets in Europe, just like what it has already been doing in response to a earlier E.U. antitrust judgment. On Wednesday, Google introduced that Spotify and another app builders could be allowed to supply various cost strategies to Google’s inside its app retailer.

Amazon is predicted to be barred from utilizing information collected from exterior sellers on its companies in order that it may supply competing merchandise, a apply that’s the topic of a separate E.U. antitrust investigation. Meta additionally may seemingly not gather information about rivals to develop rival companies.

The legislation may lead to main adjustments for messaging apps. WhatsApp, which is owned by Meta, may very well be required to supply a approach for customers of rival companies like Sign or Telegram to ship and obtain messages to someone utilizing WhatsApp. These rival companies would have the choice to make their merchandise interoperable with WhatsApp.

The most important sellers of internet marketing, Meta and Google, would seemingly be restricted from providing focused adverts with out consent. Providing adverts based mostly on information collected from individuals as they transfer between YouTube and Google Search, or Instagram and Fb, is immensely profitable for each firms.

Policymakers had been additionally contemplating together with a provision that might give publishers in Europe the flexibility to barter new compensation with Google and Meta for articles posted on their platforms. A showdown over this subject in Australia briefly led Fb to cease letting information group publish articles contained in the nation.

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Meta and Amazon declined to remark. Google, Apple and Microsoft didn’t instantly reply to requests for remark.

Anu Bradford, a Columbia College legislation professor who coined the time period “Brussels Impact” concerning the affect of E.U. legislation, mentioned European guidelines typically turn out to be international requirements as a result of it’s simpler for firms to use them throughout their total group quite than one geography.

“Everyone seems to be watching the D.M.A., be it the main tech firms, their rivals, or overseas governments,” mentioned Ms. Bradford, referring to the Digital Markets Act. “It’s potential that even the U.S. Congress will now conclude that they’re carried out watching from the sidelines when the E.U. regulates U.S. tech firms and can transfer from speaking about legislative reform to truly legislating.”

President Biden has appointed Lina Khan, a distinguished Amazon critic, to steer the Federal Commerce Fee, and a lawyer essential of the tech giants, Jonathan Kanter, to move the antitrust division of the Division of Justice.

However efforts to alter American antitrust legal guidelines have moved slowly. Congressional committees have accredited payments that may cease tech platforms from favoring their very own merchandise or shopping for smaller firms. It’s unclear whether or not the measures have sufficient help to move the total Home and Senate.

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European regulators at the moment are confronted with imposing the brand new legislation. G.D.P.R. has been criticized for lack of enforcement.

The European Fee, the chief department of the bloc, may also have to rent scores of recent workers to analyze the tech firms. Years of litigation are anticipated as firms mount court docket challenges of future penalties issued because of the brand new legislation.

“The gatekeepers,” mentioned Mr. Vinje, the Brussels antitrust lawyer, “won’t be solely with out defenses.”

David McCabe contributed reporting from Washington.

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Video: How Bangladesh’s Leader Lost Her Grip on Power

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Video: How Bangladesh’s Leader Lost Her Grip on Power

Once viewed as the hope for a democratic future in Bangladesh, Sheikh Hasina turned increasingly autocratic during her years as prime minister. Weeks of violent protests ultimately forced her from office on Monday. Mujib Mashal, South Asia bureau chief for The New York Times, explains how Ms. Hasina fought until the very end.

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Nobel laureate tapped to lead Bangladesh after embattled prime minister's ouster

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Nobel laureate tapped to lead Bangladesh after embattled prime minister's ouster
  • Nobel laureate Muhammad Yunus has been selected as the temporary head of the Bangladeshi government following longtime Prime Minister Sheikh Hasina’s ouster.
  • Yunus, who founded regional microfinance giant Grameen Bank, will serve in a caretaker position until new elections are held.
  • Yunus, 84, is a longtime foe of the Hasina government. He has been the target of multiple state-led corruption investigations.

Bangladesh’s Nobel laureate Muhammad Yunus has been chosen to head the country’s interim government after the nation’s longtime prime minister resigned and fled abroad in the face of violent unrest against her rule.

Known as the “banker to the poorest of the poor” and a longtime critic of the ousted Sheikh Hasina, Yunus will act as a caretaker premier until new elections are held. The decision followed a meeting late Tuesday that included student protest leaders, military chiefs, civil society members and business leaders.

Hasina was forced to flee on Monday after weeks of protests over a quota system for allocating government jobs turned into a broader challenge to her 15-year rule, which was marked by a rising economy but an increasingly authoritarian streak.

BANGLADESH PM RESIGNS, LEAVES COUNTRY AFTER RESIDENCE IS STORMED BY PROTESTERS, ENDING 15-YEAR RULE

Hasina’s departure has plunged bangladesh into a political crisis. The army has temporarily taken control, but it is unclear what its role would be in an interim government after the president dissolved Parliament on Tuesday to pave the way for elections.

Student leaders who organized the protests have wanted Yunus, who is currently in Paris for the Olympics as an adviser to its organizers, to lead an interim government.

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He could not immediately be reached for comment, but key student leader Nahid Islam asserted that Yunus agreed to step in during a discussion with them. The 83-year-old is a well-known critic and political opponent of Hasina.

Yunus called her resignation the country’s “second liberation day.” She once called him a “bloodsucker.”

An economist and banker by profession, Yunus was awarded the Nobel Peace Prize in 2006 for pioneering the use of microcredit to help impoverished people, particularly women. The Nobel Peace Prize committee credited Yunus and his Grameen Bank “for their efforts to create economic and social development from below.”

FILE- Nobel Peace Prize laureate Muhammad Yunus smiles as he arrives to appear before a labor court in Dhaka, Bangladesh, Sunday, Jan. 28, 2024. (AP Photo/Mahmud Hossain Opu, File)

Yunus founded Grameen Bank in 1983 to provide small loans to entrepreneurs who would not normally qualify to receive them. The bank’s success in lifting people out of poverty led to similar microfinancing efforts in other countries.

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He ran into trouble with Hasina in 2008, when her administration launched a series of investigations into him. He had announced he would form a political party in 2007 when the country was run by a military-backed government but did not follow through.

During the investigations, Hasina accused Yunus of using force and other means to recover loans from poor rural women as the head of Grameen Bank. Yunus denied the allegations.

Hasina’s government began reviewing the bank’s activities in 2011, and Yunus was fired as managing director for allegedly violating government retirement regulations. He was put on trial in 2013 on charges of receiving money without government permission, including his Nobel Prize and royalties from a book.

He later faced more charges involving other companies he created, including Grameen Telecom, which is part of the country’s largest mobile phone company, GrameenPhone, a subsidiary of Norwegian telecom giant Telenor. In 2023, some former Grameen Telecom workers filed a case against Yunus accusing him of siphoning off their job benefits. He denied the accusations.

Earlier this year, a special judge’s court in Bangladesh indicted Yunus and 13 others on charges over the $2 million embezzlement case. Yunus pleaded not guilty and is out on bail for now.

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Yunus’ supporters say he has been targeted because of his frosty relations with Hasina.

Yunus was born in 1940 in Chittagong, a seaport city in Bangladesh. He received his PhD from Vanderbilt University in the United States and taught there briefly before returning to Bangladesh.

In a 2004 interview with The Associated Press, Yunus said he had a “eureka movement” to establish Grameen Bank when he met a poor woman weaving bamboo stools who was struggling pay her debts.

“I couldn’t understand how she could be so poor when she was making such beautiful things,” he recalled in the interview.

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Foreign minister: Italy 'ready for any event' in Middle East crisis

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Foreign minister: Italy 'ready for any event' in Middle East crisis

The country’s foreign ministry has warned Italians still in Lebanon that “those who can, should return”.

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As tensions in the Middle East continue to rise, Italy’s Foreign Minister Antonio Tajani has reassured citizens and military personnel that the south European country is prepared to respond to any escalation.

In a parliamentary briefing on Tuesday, Tajani emphasised the Italian government’s commitment to protecting the 4,000 Italians living in Lebanon and its troops deployed in the region.

Speaking about Italian nationals who are still in Lebanon, Tajani said his country is “ready for any event should the situation deteriorate,” adding that “those who can should return”.

The foreign minister’s comments come as Italy continues to try and help de-escalate the situation as tensions between Hezbollah and Israel ramp up following last week’s events.

Israel killed Fuad Shukr, a top Hezbollah commander and founding member of the group, in an airstrike in Beirut on 30 July for his alleged involvement in the Golan Heights of northern Syria, which killed 12 children. Hezbollah has sworn to retaliate against Israel in kind.

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Iran has also vowed revenge against Israel after Hamas political leader Ismail Haniyeh was killed in an airstrike while visiting Tehran on the next day. Israel has not claimed responsibility for the assassination.

‘Rarely have we seen a more tense situation’

Under Italy’s presidency, Tajani called a G7 meeting to address the worsening crisis. The group of seven nations voiced their support for US President Joe Biden’s plan for a ceasefire in Gaza.

“We call on the parties involved to desist from any initiative that could hinder the path of dialogue and moderation and favour a new escalation,” the G7 said, according to a final statement issued by the Italian Foreign Ministry.

Emanuele Loperfido, a member of the Foreign Affairs Parliamentary Committee from the right-wing populist Fratelli d’Italia (FDI) party, described the current geopolitical climate as one of unprecedented tension.

“Rarely have we seen a more tense situation,” Loperfido said, stressing that the Western bloc’s commitment to international law and the protection of victims is crucial.

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Meanwhile, opposition parties have criticised both the Israeli and Italian governments. Giuseppe Conte, leader of the left-wing populist Five Star Movement (M5S) party, condemned the Italian government’s handling of the situation, accusing it of failing to recognise the Palestinian State.

In a video posted on his Instagram account, Conte labelled the government’s approach as cowardly and complicit with the US administration.

“We think this government is cowardly. Three times, it had the chance to recognise the Palestinian State during the UN General Assembly and interrupt this military action and failed to do so,” Conte said.

Recent developments in Lebanon and Iran have complicated ceasefire talks. Despite neither Israel nor Iran seeking an all-out war, they seem unlikely to listen to calls for restraint at this stage.

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