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Adobe Launches Firefly AI Image Generation App for Smartphones, Expands Partner Integrations

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Adobe Inc. unveiled its first dedicated AI-powered smartphone app, Firefly, on Tuesday, combining Adobe’s own AI model with those from partners including OpenAI and Google. The app is available for both iOS and Android devices and aims to capitalize on the rising popularity of AI-generated images shared on social media.

Beyond Adobe’s internal AI models, Firefly integrates additional capabilities from new collaborators such as Ideogram, Luma AI, Pika, and Runway, accessible through Firefly Boards within the Firefly web app ecosystem.

The mobile app offers unlimited basic image generation from Adobe’s models for subscribers, with premium access to partner models available for an extra fee. Subscription pricing matches Adobe’s existing Firefly web plans, starting at $10 per month.

This move follows Adobe’s earlier rollout of AI features integrated into the mobile version of its flagship image-editing tool, Photoshop.

Adobe emphasized its commitment to ethical AI training practices, assuring users that Firefly’s AI is trained exclusively on legally licensed material, thus providing protection against copyright infringement claims.

Ely Greenfield, Adobe’s CTO for digital media, highlighted that this responsible approach has resonated well with consumers and remains a key differentiator in the competitive AI market.

Meta’s $14.8 Billion Scale AI Deal Raises Regulatory Questions Amid AI Partnership Scrutiny

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Meta’s $14.8 billion investment in data-labeling startup Scale AI, along with hiring its CEO, poses a test of the Trump administration’s stance on so-called “acquihire” deals—arrangements that some critics argue are used to bypass antitrust scrutiny.

The deal, announced Thursday, gives Meta a 49% nonvoting stake in Scale AI, which employs gig workers to manually label data and serves major clients including Meta’s rivals Microsoft and OpenAI. Because Meta does not gain a controlling stake, the transaction avoids mandatory U.S. antitrust review. Still, regulators could investigate if they suspect the deal was structured to sidestep rules or harm competition.

The structure aims to prevent Meta from cutting off competitors’ access to Scale’s services or gaining undue insight into rival operations. Despite this, Reuters reported that Alphabet’s Google has decided to sever ties with Scale following Meta’s investment, while other customers are reconsidering their relationships.

Scale AI stated its business remains strong and that it is committed to protecting customer data. Scale’s 28-year-old CEO Alexandr Wang will join Meta as part of the deal but will remain on Scale’s board with restricted access to sensitive information.

Experts say that while the Trump administration’s antitrust enforcers are cautious of big tech platforms, they generally want to avoid overregulating AI development. William Kovacic, competition law expert at George Washington University, noted regulators will watch these partnerships closely but might not intervene if they do not stifle competition.

Previous FTC inquiries into “acquihire” deals under the Biden administration—including Amazon’s hiring from AI startup Adept and Microsoft’s $650 million deal with Inflection AI—have so far resulted in no enforcement action.

Boston College Law professor David Olson highlighted Meta’s choice of a minority, nonvoting stake as a legal shield, though he acknowledged the FTC could still seek to review the deal.

The investment has drawn criticism from U.S. Senator Elizabeth Warren, who called for scrutiny to ensure Meta does not unlawfully suppress competition or increase monopoly power. Meta is already facing an FTC monopoly lawsuit, but whether regulators will challenge this specific investment remains unclear.

Separately, the U.S. Department of Justice’s antitrust division is probing whether Google’s partnership with chatbot maker Character.AI was structured to evade regulatory review and is seeking advance notice of Google’s AI investments as part of broader efforts to rein in the company’s dominance.

Mexico Closes Antitrust Case Against Google, No Fines Imposed

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Mexico’s Federal Economic Competition Commission (Cofece) announced on Friday the closure of its multi-year antitrust investigation into Google, clearing the tech giant of allegations related to monopolistic practices in the country. The probe, initiated in 2020, focused on Google’s digital advertising services both on its search engine and third-party websites.

Cofece’s investigation examined whether Google’s advertising platform design gave it an unfair advantage over competitors in the digital advertising market. The watchdog concluded that advertisers were not compelled to purchase ads on third-party sites to advertise on Google’s search engine, effectively negating claims of monopoly abuse.

A Google spokesperson welcomed the decision, stating, “We appreciate COFECE’s decision recognizing that our products give advertisers the freedom and control to use our tools in the ways that best suit their needs.”

Had Cofece found Google guilty, the company could have faced fines up to 8% of its annual revenue in Mexico. Although Alphabet does not publicly disclose specific revenue for Mexico, its “other Americas” region, which includes Latin America, generated approximately $20.4 billion in 2024.

Google continues to face antitrust scrutiny worldwide. In the United States, courts have ruled that Google holds unlawful monopolies in online search and advertising technologies. U.S. regulators have pushed for measures including data sharing and divestitures of key advertising assets to foster competition.