MEF’s Riccardo Amati shares his take on the week’s mobile and tech stories from around the world. Headlines include… US Senate Rejects Big Tech’s AI Ban, EU’s AI Code of Practice Delayed to 2025 Amid Industry Pushback, California Jury Hits Google with $315M Fine Over Unauthorized Android Data Use and much more… Alternatively listen On MEF Radio.
US Senate Rejects Big Tech’s AI Ban, Opening Door to State-Level Rules
US Senate Rejects Big Tech’s AI Ban, Opening Door to State-Level Rules
The US Senate overwhelmingly voted 99-1 to reject a proposed 10-year ban on state-level AI regulation, removing a measure favored by big tech that aimed to avoid a patchwork of rules across states.
The move reflects growing concern over leaving AI unregulated amid its rapid growth and potential risks.
While some Republicans pushed for limited state oversight, fears remain that without national standards, tech giants could prioritize profits over safety.
The decision signals a shift towards more cautious governance in the AI-driven tech ecosystem as competition with China intensifies.
EU’s AI Code of Practice Delayed to 2025 Amid Industry Pushback
The European Commission said a new Code of Practice to help companies comply with the EU’s landmark AI rules may only take effect by the end of 2025.
This comes after major players like Google, Meta, and European firms including ASML and Mistral pushed for a delay, citing the absence of clear guidelines.
The voluntary code, aimed at large language models like ChatGPT, will offer legal clarity and set quality standards to prevent misleading AI products, especially from U.S. firms.
While signatories gain legal certainty, those who opt out risk falling behind.
Despite industry pressure, the EU insists it’s committed to harmonized AI safety and risk rules.
When it comes to AI compliance, the message from Brussels is clear: no shortcuts, no compromises.
Reuters
California Jury Hits Google with $315M Fine Over Unauthorized Android Data Use
Tuesday, a California jury ordered Google to pay $314.6 million for unauthorized data transfers on Android phones while idle, ruling the tech giant misused users’ mobile data for profit.
The lawsuit covers 14 million Californians and claims Google’s background data use drained users’ cellular plans without consent, despite Google’s defense citing privacy policies.
This verdict signals growing scrutiny of mobile ecosystems and user data rights, with a similar nationwide trial set for next year.
The ruling could reshape how smartphone platforms handle background data, impacting millions of users and the future of mobile privacy.
Reuters
UK Eyes Crackdown as Vodafone Faces £120M Franchise Lawsuit
The UK government could tighten franchise regulation after a £120 million lawsuit accused Vodafone of exploiting its mobile franchise partners — the Guardian reported Friday.
Sixty-two franchisees claim drastic commission cuts left them in debt, with some reporting suicidal thoughts.
The government says this case may expose a wider problem in the sector’s self-regulation—and it’s watching closely.
The case, unresolved in mediation, is likely headed to the High Court.
All this lands as Vodafone merges with Three and prepares a £9.5 billion 5G rollout.
Guardian
MEF Analysis: LINK Mobility’s Deal in SA Signals Return of M&A and Strategic Shift in Mobile Cloud
A billion-message power play is underway—European cloud communications giant LINK Mobility is making its first leap beyond the continent, snapping up South Africa’s SMSPortal for up to $145 million.
According to a Mobile Ecosystem Forum (MEF, us!) analysys, this move marks a clear return to mergers and acquisitions in cloud communications, with valuations on the rise after a two-year slump.
The deal, priced at up to 5.8 times earnings before interest, taxes, depreciation and amortization (EBITDA), shows the sector is heating up—but nowhere near the post-COVID highs of the last boom.
What’s behind it? A shift in strategy. With short messaging service (SMS) margins under pressure and richer messaging channels like WhatsApp, Rich Communication Services (RCS), and conversational artificial intelligence in demand, Communications Platform as a Service (CPaaS) players now need scale, smarts, and serious product breadth to stay in the game.
SMSPortal gives LINK not just a profitable South African foothold, but something even more valuable—local know-how in one of the world’s most mobile-first markets.
The company brings 5,100 clients, $112 million in revenue, and deep ties with banks, retailers, and small-to-medium-sized enterprises.
This deal shows the CPaaS industry entering a new phase—where scale, product breadth, and global reach aren’t just nice to have, they’re mission-critical.
In CPaaS today, you don’t grow just big—you grow smart.
MEF
MEF Analysis: Apple’s EU App Store changes break gatekeeper grip, reshaping mobile
Apple’s move to allow third-party app stores and external payment systems in the EU marks a major shift in the mobile ecosystem—and a direct response to pressure from the Digital Markets Act. From MEF’s perspective, this isn’t just about compliance—it’s a crack in the gatekeeper model.
Developers gain more control, lower costs, and new ways to reach users. Payment providers, ID services, and mobile operators all stand to benefit. But the changes also introduce new risks—fragmentation, security concerns, and shifting technical standards.
This is Europe setting the pace, with global markets watching. If it works, others will follow. The mobile ecosystem is being redefined—and the app store monopoly is no longer untouchable.
MEF
U.S. Eases Export Controls, Restarting GE Jet Engine Sales to China
The U.S. has quietly lifted key export bans, allowing GE Aerospace to resume shipping jet engines to China’s Comac — a major reversal in the tech trade standoff.
This comes alongside new permissions for chip design firms like Synopsys and Cadence to export without licenses, and a greenlight for ethane shipments.
The move signals a thaw in U.S.-China tech tensions, just weeks after both nations agreed to accelerate trade cooperation.
The stakes are massive: China’s C919 jet — built to rival Boeing and Airbus — depends on GE engines, and the greenlight revives billions in potential deals.
Reuters
Amazon’s Warehouses Near Robot Majority as Bots Drive 75% of Deliveries
Amazon’s warehouses are on the brink of becoming more robotic than human.
The e-commerce giant now counts over 1 million robots—nearly matching its human workforce—and says about 75% of global deliveries are now assisted by machines — the Wall Street Journal reported.
Why? Productivity is surging, and automation is helping curb hiring, especially amid high warehouse turnover.
Robots now pick, pack, sort, and even “feel” items with touch-sensitive arms like Vulcan. With AI guiding inventory and fulfillment, Amazon is reshaping logistics and labor alike—one algorithm at a time.
The mobile supply chain is evolving, and the bots are officially in charge.
CEOs Admitting the Worst: AI to Slash White-Collar Jobs by the Millions
CEOs are finally saying what many feared: AI is set to wipe out a massive chunk of white-collar jobs.
According to a Wall Street Journal report, Ford’s CEO predicts AI will replace literally half of all U.S. white-collar workers, while JPMorgan Chase expects a 10% cut in operations roles thanks to AI tools.
Amazon, Anthropic, and others warn of deep job losses, with entry-level roles hit hardest.
Meanwhile, tech giants — like Microsoft — are quietly trimming headcounts and consolidating roles, betting AI can do more with less.
Some experts caution the impact won’t be immediate, but the writing’s on the wall: AI isn’t just changing jobs—it’s shrinking the workforce.
When it comes to AI, the future is leaner, meaner, and way more automated.
SAP CEO: Europe Needs Smart AI, Not More Data Centers
Europe doesn’t need more AI data centers, according to SAP CEO Christian Klein, who is pushing back on Nvidia’s call for heavy investment in infrastructure.
Klein argues the focus should be on applying AI to improve industries like automotive and chemicals, not chasing the US’s expensive “Stargate” build-out.
Despite Europe’s lag in AI infrastructure spending compared to the US’s $500 billion plan, Klein sees value in smarter use of AI rather than massive hardware investments. SAP has dropped plans to invest in AI gigafactories and now aims to support future projects with technology and software.
In AI, it’s not about more power—it’s about smarter moves.
Bloomberg Investing
Russia Weaponizes Mobile Blackouts: 654 Shutdowns in June Signal New Digital Frontline
Russia has sharply increased mobile internet blackouts, with a record 654 shutdowns in June—nearly ten times the previous month—as a direct response to Ukrainian drone strikes deep inside Russian territory.
These blackouts disrupt banking, delivery apps, and communication across cities from Moscow to Siberia, reflecting the Kremlin’s tightening control over digital access.
The move aims to block mobile signals that drones use for targeting, protecting key military sites including nuclear-capable bomber bases.
Experts warn this new normal means Russians will face frequent internet blackouts, trading connectivity for security on a digital battlefield. In Russia, going offline is the new frontline.
