On 1 March, during the extra day of negotiations, WTO Members gathered in Abu Dhabi for the 13th Ministerial Conference agreed to extend the current Moratorium on Customs Duties on Electronic Transmissions until the next ministerial meeting, or until 31 March 2026, whichever is earlier. In spite of that, this could be the beginning of the end of the Moratorium: this is likely to be the last renewal.
The negotiating positions on the Moratorium ranged from, on the one hand, OECD countries, some developing countries, and China, aiming to make the Moratorium permanent and, on the other hand, some developing countries led by India, Indonesia, South Africa and Indonesia requesting the end of the Moratorium.
In 2022, an extension was granted until MC13, but fears of another postponement of the Ministerial led Members to call for an explicit renewal by Ministers or by the WTO General Council if the Ministerial got delayed beyond 31 March 2024. This would prevent the Moratorium from sliding into permanence, revealing that the idea of non-renewal was by that time strongly held by some members.
Google plans to produce Pixel smartphones in India by the second quarter of this year, a strategic move in an attempt to diversify its supply chain and tap into India’s expanding smartphone market, thereby lessening its dependence on Chinese manufacturing.
The entrance of Google into India’s competitive and innovative smartphone market by producing Pixel smartphones locally is likely to shift dynamics and intensify competition. Through this move company aims to cater to Indian consumers and enhance its competitive edge over rivals like Apple and Samsung.
Google, Apple, and Samsung’s significant investments in India underscore the nation’s growing relevance as an alternative to Chain-based manufacturing. Moreover, India’s burgeoning smartphone sector, enabled by the country’s rapid economic growth and tech-oriented population, offers a huge market, incentivizing companies to consolidate their market position.
Waymo’s application to expand its robotaxi service in Los Angeles and San Mateo counties has been suspended for 120 days by the California Public Utilities Commission’s Consumer Protection and Enforcement Division (CPED). Company can still operate driverless vehicles in San Francisco, but further expansion is on hold until June 2024. According to the CPED, the application has been suspended for additional staff review.
Waymo clarifies that this suspension is a standard procedural step in the CPUC’s thorough review process. However, David J. Canepa, Vice President of the San Mateo County Board of Supervisors, contends that Waymo has failed to engage in meaningful discussions about expanding into Silicon Valley, prompting the CPUC to suspend the application. Canepa sees this as an opportunity to address genuine concerns regarding public safety.
Waymo currently operates a commercial service round-the-clock in San Francisco and is permitted to offer free driverless rides in certain parts of Los Angeles. In January, Waymo submitted a document to the CPUC’s Consumer Protection and Enforcement Division, seeking approval of its updated safety plan and an expansion areas where its robotaxi vehicles can operate.
Various entities, including the city of South San Francisco, the Los Angeles County Department of Transportation, and the San Francisco Taxi Workers Alliance, have expressed opposition to Waymo’s expansion plans.
According to Indonesia’s minister for small-medium enterprises (SMEs), Teten Masduki, TikTok continues to disregard Indonesia’s prohibition on in-app transactions. The minister stated, “The trade minister has to reprimand TikTok so that it complies with the regulation, if not then … the government’s authority is undermined.”
This comes after social media company gained control of the country’s largest e-commerce platform, Tokopedia, at $840 million, in order to relaunch its online shopping operations after a ban was imposed last year. TikTok Shop, the e-commerce service of the company, was forced to shut down in Indonesia due to the country’s ban on social media platform-based online shopping in the country’s attempt to safeguard the interests of smaller merchants and protect user data.
It remains to be seen how social media giant circumvents the increasing pressure to comply with legal requirements. With its 125 million user base in Indonesia, the country is an important market that can potentially generate substantial e-commerce revenue.
Meta plans to capitalize on the discontent among advertisers in its own conflict with Apple regarding in-app purchase fees by announcing its intention to transfer the 30% service charge imposed by Apple to its own customers. Starting later this month, advertisers who wish to promote a post in the Facebook or Instagram iOS app will now be billed through Apple where this additional charge will be applied.
Meta offers an alternative for advertisers to avoid the additional charge imposed by Apple by paying to boost posts from the web on Facebook or Instagram, accessible through both desktop and mobile browsers. However, it recognizes that customers may not perceive this as a convenient option since in-app purchases are the most convenient way to transact on Apple’s devices. Therefore, those who opt for in-app purchases will now incur higher costs.
By passing on the burden of Apple’s commission to advertisers, Meta hopes to garner public support and, ultimately, influence lawmakers and regulators to bring about a change in Apple’s business practices. The current commission rates and the introduction of the ‘core technology fee’ have also faced criticism from companies such as Epic and Spotify.
The US Trade Representative Katherine Tai has withdrawn longstanding US digital trade demands in World Trade Organization (WTO) talks, allowing the US Congress the space to regulate big tech firms, according to her office. United States administration’s 2019 proposals insisting on WTO e-commerce rules that promote free cross-border data flows and prohibit national requirements for data localization and software source code reviews have been revoked. Decision was made during a meeting of the WTO’s Joint Statement Initiative on E-Commerce in Geneva.
Senator Ron Wyden, who chairs the Senate Finance Committee, described the move as a “win for China,” claiming that it would strengthen China’s internet censorship and government surveillance model. On the other hand, some lawmakers, including Senator Elizabeth Warren, praised the withdrawal, as it rejects efforts by big tech lobbyists to exploit trade deals to undermine regulation.
The decision aligns with the current administration’s goal of strengthening regulation of large technology firms and reflects ongoing digital trade negotiations in the U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) group. However, concerns have been raised about potential disadvantages for U.S. firms and the impact on international digital trade relationships. The U.S. Chamber of Commerce opposes the withdrawal, arguing that the digital trade principles, included in the 2020 U.S.-Mexico-Canada Agreement, have supported the success of U.S. tech firms globally. The U.S. remains an active participant in the WTO e-commerce talks.
Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending regulations. The EU market rules for crypto-assets
Crypto-assets are one of the main applications of distributed ledger technology. Crypto-assets are digital representations of value or of rights that have the potential to bring significant benefits to market participants, including retail holders of crypto-assets. Representations of value include external, non-intrinsic value attributed to a crypto-asset by the parties concerned or by market participants, meaning the value is subjective and based only on the interest of the purchaser of the crypto-asset.
According to a report from Reuters, the world’s largest payment processor companies, Visa and Mastercard, are pushing back the launch of products and services related to crypto, until market conditions and the regulatory environment improve. Visa and Mastercard already have a card issued in partnership with the cryptocurrency exchange Binance, and it offers a fiat-to-cryptocurrency gateway for Binance users.
Anyhow, companies shared concerns about the future of cryptocurrency regulation in a midst of the recent collapse of large players in the crypto industry, such as the FTX. A hard year for crypto companies, pushed Visa and MasterCard to delay the proposed partnerships and decide the way forward after a clearer regulation perspective is established.
At the outskirts of the G20 summit in India, the International Monetary Fund Managing Director, Ms Kristalina Georgieva answered the questions from media around the cryptoassets and digital currencies. In her words, the IMF is very much in favor of regulating the world of crypto and digital money. The IMF, alongside the Bank for International Settlements and the G20s Financial Stability Board (FSB) believes this is a top-priority in the forthcoming period.
She pointed out the difference between legal tenders (national currencies) which are backed by countries that issue them, and the ‘publicly issued cryptoassets and stablecoins calling them ‘just a speculative asset’. If such assets start to pose a threat to the consumers and/or financial stability for countries we should have a mechanism to ban crytpoassets altogether. We have requests from our members not to rule out the mechanism for the total ban. If there are strong consumer protection laws set in place, we will not need a ban. The ban of cryptocurrencies is indeed a tool of last resort, she added in her interview.
In the recent announcement from the Ministry of technology and science of Zambia Mr Felix Mutati, the central financial institutions in Zambia will soon introduce legislation that would regulate the cryptoassests, and in particular Central Bank Digital Currency (CBDC).
The Zambian Minister for technology and science, pointed out in the statement that: ‘there is a need for a policy framework that supports this revolutionary technology.’
In his words, Zambia is seeking the opportunity to embrace this innovative finance technology and will use the regulatory framework ‘as part of deliberate measures to achieve an inclusive digital economy for Zambia’. ‘Cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy’ he added.
