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Grok Faces Lawsuit Over Images

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Elon Musk’s artificial intelligence company xAI is facing a lawsuit in the United States alleging its Grok image generator enabled the creation of explicit content using real photos of individuals.

The complaint was filed in federal court by three plaintiffs, including two minors, who claim the system allowed altered images based on their likeness to be produced and circulated online.

The case seeks class-action status for individuals in the United States who may have been identifiable in AI-generated explicit imagery.

According to the filing, the plaintiffs argue the technology lacked sufficient safeguards to prevent misuse involving real people.

The lawsuit is requesting damages and court orders that would require the company to halt the alleged practices.

The case adds to a growing global debate over safeguards and accountability for generative artificial intelligence tools.

EU Plan to Phase Out High-Risk Tech Draws Fire From China’s Huawei

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The European Union plans to phase out components and equipment from so-called high-risk technology suppliers in critical sectors, under proposed revisions to the EU Cybersecurity Act that have drawn sharp criticism from Huawei.

The draft proposal, released by the European Commission, aims to strengthen protections against rising cyber and ransomware attacks, foreign interference and espionage risks, while reducing Europe’s dependence on non-EU technology providers. Although the Commission did not name specific companies or countries, Huawei is widely expected to be among those affected.

EU technology chief Henna Virkkunen said the measures would improve security of critical ICT supply chains and bolster Europe’s technological sovereignty. The new rules would apply to 18 key sectors, including telecom networks, cloud services, semiconductors, energy systems, medical devices, drones and connected vehicles.

Under the proposal, mobile operators would have 36 months after publication of a high-risk supplier list to phase out key components. Additional timelines for fixed and satellite networks will be set later. Any restrictions would follow formal risk assessments and market impact studies.

Huawei said excluding suppliers based on country of origin rather than technical evidence violates EU legal principles and World Trade Organization obligations, echoing criticism from China’s foreign ministry. Industry group Connect Europe warned the measures could impose billions of euros in extra costs. The proposal must still be negotiated with EU governments and the European Parliament before becoming law.

India Tribunal Lifts WhatsApp Data-Sharing Ban but Upholds Meta’s $25 Million Fine

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An Indian appeals tribunal has overturned a five-year ban preventing WhatsApp from sharing user data with other Meta-owned entities but upheld a $25.4 million fine, delivering a mixed verdict for the U.S. tech giant.

The National Company Law Appellate Tribunal (NCLAT) ruled on Tuesday that the Competition Commission of India’s (CCI) 2024 order lacked sufficient justification for restricting data sharing, calling the regulator’s rationale “missing altogether.” However, it agreed with the CCI’s finding that Meta had abused its market dominance by imposing unfair terms on users.

WhatsApp had challenged the CCI’s ban, warning it could have been forced to roll back certain features if the restriction remained. Meta, in turn, argued that the watchdog lacked the technical expertise to assess the implications of its decision.

The dispute dates back to 2021, when changes to WhatsApp’s privacy policy sparked widespread backlash in India. Regulators accused the company of pressuring users to accept new data-sharing terms or risk losing access to the platform.

A Meta spokesperson said the company is reviewing the tribunal’s written order and reiterated that the 2021 privacy update “did not change the privacy of people’s personal messages, which remain end-to-end encrypted.”

India is Meta’s largest market globally, with hundreds of millions of users across WhatsApp, Facebook, and Instagram — making the ruling a critical development for the company’s operations in the country.