Apple and Amazon Defeat $600 Million UK Lawsuit Over Alleged Collusion

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Apple and Amazon have successfully defended themselves against a mass lawsuit in the UK, which accused the tech giants of colluding to remove resellers of new Apple products from Amazon’s platform. The Competition Appeal Tribunal ruled on Tuesday that the lawsuit could not proceed.

The case was brought by consumer law academic Christine Riefa on behalf of around 36 million British consumers who had purchased Apple or Beats products. Riefa’s lawyers claimed that in 2018, Apple and Amazon conspired to block the majority of resellers of Apple and Beats-branded products from Amazon’s UK marketplace, allegedly reducing competition for these products.

Apple and Amazon argued that the lawsuit, valued at £494 million ($602 million) plus interest, was baseless and urged the tribunal to dismiss it. The tribunal agreed with the tech giants, ruling that Riefa had not demonstrated sufficient independence or robustness to represent the affected consumers. This decision was based on concerns about third-party funding for the litigation.

The refusal to certify the case was notable because the standard for certification is typically low, making it an unusual ruling in such legal matters. Neither Riefa’s legal team nor spokespeople from Apple and Amazon immediately commented on the outcome.

 

Semiconductor Groups Criticize Biden Administration’s New Export Controls

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A coalition of semiconductor and manufacturing trade groups has expressed concern over new export control regulations announced by the Biden administration, claiming they were rushed through without proper industry consultation. In a private letter dated January 13 and addressed to U.S. President Joe Biden, groups such as the Semiconductor Industry Association (SIA) and SEMI voiced objections to new rules that could affect the global distribution of advanced computing chips.

The Biden administration’s regulations, released on Monday, introduced a three-tier system governing the placement of U.S.-made chips, including those from companies like Nvidia, in AI data centers. These rules mandate that most countries will need to obtain licenses to use these chips in such projects.

In their letter, the trade groups expressed concerns over an additional rule expected to be announced soon, which would impose even stricter controls on high-bandwidth memory, a critical component for AI chips. The groups argued that these regulations were being implemented without adequate input from industry stakeholders, raising fears about the impact on U.S. companies and the potential to shift market share to international competitors.

High-bandwidth memory is primarily produced by U.S. and South Korean firms, and the new rules could limit its sale to China. A source familiar with the upcoming regulations indicated that the measures might also reverse a previous interpretation, potentially reducing revenue for companies like Lam Research, which supplies chip-making equipment to China. Lam Research has yet to comment.

OpenAI Introduces ‘Tasks’ Beta Feature to Compete with Virtual Assistants

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On Tuesday, OpenAI unveiled a new beta feature called “Tasks” for ChatGPT, marking the company’s entry into the virtual assistant arena, aiming to compete with established platforms like Apple’s Siri and Amazon’s Alexa. This feature allows ChatGPT users to request actions to be performed at a specified future time, such as one-time reminders for events like concert ticket sales or recurring tasks such as daily weather updates or weekly news briefings.

Based on interactions with users, ChatGPT will also proactively suggest tasks that users can choose to accept or decline. This new function broadens the scope of what ChatGPT can offer, making it more assistant-like, similar to Alexa and Siri.

The launch follows a growing trend where AI-powered systems are reshaping virtual assistant functionalities. Amazon, for example, has been revamping its Alexa service with generative AI capabilities to remain competitive, while Apple has incorporated its “Apple Intelligence” technology into Siri. In collaboration with Microsoft-backed OpenAI, Apple now seeks user consent before sending queries to OpenAI’s services.

OpenAI’s “Tasks” feature will be available to Plus, Team, and Pro users globally in the coming days, with the web platform being the first to get access.