Science & Technology
India seizes $725 million of Xiaomi assets over illegal remittances
India said on Saturday it had seized $725 million from the local bank accounts of China’s Xiaomi Corp (1810.HK) after a probe found the smartphone maker had made illegal remittances to foreign entities by passing them off as royalty payments.
The Enforcement Directorate had been investigating the Chinese company’s business practices over suspected violations of Indian foreign exchange laws.
The financial crime fighting agency said on Saturday it had seized the bank account assets from Xiaomi Technology India Private Limited after finding the firm had remitted the foreign currency equivalent of 55.5 billion rupees to three foreign-based entities, including one Xiaomi group entity, “in the guise of royalty” payments.
The remittance to two other unidentified and unrelated U.S.-based entities was also for “the ultimate benefit of the Xiaomi group entities”, the agency added in a statement.
“Such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities,” the directorate said.
Xiaomi said in a statement issued later on Saturday that it complies with Indian laws and believed its “royalty payments and statements to the bank are all legit and truthful”.
“These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products … we are committed to working closely with government authorities to clarify any misunderstandings,” it added.
The directorate’s actions against Xiaomi signal widening scrutiny of the Chinese smartphone maker, whose India office was raided in December in a separate investigation over alleged income tax evasion. Some other Chinese smartphone markers were also raided at the time.
Reuters reported on April 12 that Xiaomi’s former India head, Manu Kumar Jain, had been summoned for questioning as part of the directorate’s investigation.
Jain, who is now a global vice president at Xiaomi based in Dubai, appeared before investigators earlier this month, said a source with direct knowledge of the probe, asking not to be named due to the sensitivity of the matter.
The Enforcement Directorate also asked the company for details of foreign funding, shareholding and funding patterns, financial statements and information of key executives running the business.
Xiaomi was India’s leading smartphone seller in 2021, with a 24% market share, according to Counterpoint Research. South Korea’s Samsung was the No. 2 brand with a 19% share.
Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India has cited security concerns in banning more than 300 Chinese apps since then, including popular ones like TikTok, and also tightened norms for Chinese companies investing in India.
Science & Technology
Australia social media ban set to take effect, sparking a global crackdown
For the social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.
Australia is set to become the first country to implement a minimum age for social media use on Wednesday, with platforms like Instagram, TikTok and YouTube forced to block more than a million accounts, marking the beginning of an expected global wave of regulation.
From midnight, 10 of the biggest platforms will be required to block Australians aged under 16 or be fined up to A$49.5 million ($33 million), Reuters reported.
The law received harsh criticism from major technology companies and free speech advocates, but was praised by parents and child advocates.
The rollout closes out a year of speculation about whether a country can block children from using technology that is built into modern life. And it begins a live experiment that will be studied globally by lawmakers who want to intervene directly because they are frustrated by what they say is a tech industry that has been too slow to implement effective harm-minimisation efforts.
Governments from Denmark to Malaysia – and even some states in the U.S., where platforms are rolling back trust and safety features – say they plan similar steps, four years after a leak of internal Meta (META.O) documents showed the company knew its products contributed to body image problems and suicidal thoughts among teenagers while publicly denying the link existed.
“While Australia is the first to adopt such restrictions, it is unlikely to be the last,” said Tama Leaver, a professor of internet studies at Curtin University.
“Governments around the world are watching how the power of Big Tech was successfully taken on. The social media ban in Australia … is very much the canary in the coal mine.”
A spokesperson for the British government, which in July began forcing websites hosting pornographic content to block under-18 users, said it was “closely monitoring Australia’s approach to age restrictions.”
“When it comes to children’s safety, nothing is off the table,” they added.
Few will scrutinise the impact as closely as the Australians. The eSafety Commissioner, an Australian regulator tasked with enforcing the ban, hired Stanford University and 11 academics to analyse data on thousands of young Australians covered by the ban for at least two years.
Though the ban covers 10 platforms initially, including Alphabet’s (GOOGL.O), YouTube, Meta’s Instagram and TikTok, the government has said the list will change as new products appear and young users switch to alternatives.
Of the initial 10, all but Elon Musk’s X have said they will comply using age inference – guessing a person’s age from their online activity – or age estimation, which is usually based on a selfie. They might also check with uploaded identification documents or linked bank account details.
Musk has said the ban “seems like a backdoor way to control access to the internet by all Australians” and most platforms have complained that it violates people’s right to free speech.
For the social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.
Platforms say they don’t make much money showing advertisements to under-16s, but they add that the ban interrupts a pipeline of future users. Just before the ban took effect, 86% of Australians aged 8 to 15 used social media, the government said.
“The days of social media being seen as a platform for unbridled self-expression, I think, are coming to an end,” said Terry Flew, the co-director of University of Sydney’s Centre for AI, Trust and Governance.
Platforms responded to negative headlines and regulatory threats with measures like a minimum age of 13 and extra privacy features for teenagers, but “if that had been the structure of social media in the boom period, I don’t think we’d be having this debate,” he added.
Science & Technology
Ethiopian volcano erupts for first time in nearly 12,000 years
Ash from the eruption drifted across the region, spreading over Yemen, Oman, India, and parts of Pakistan.
The Hayli Gubbi volcano in Ethiopia’s Afar region has erupted for the first time in almost 12,000 years, sending massive ash plumes soaring up to 14 kilometres into the atmosphere, according to the Toulouse Volcanic Ash Advisory Centre.
The eruption began on Sunday and lasted several hours. Hayli Gubbi, located around 800 kilometres northeast of Addis Ababa near the Eritrean border, sits within the geologically active Rift Valley, where two major tectonic plates meet. The volcano rises roughly 500 metres above the surrounding landscape.
Ash from the eruption drifted across the region, spreading over Yemen, Oman, India, and parts of Pakistan. Satellite imagery and social-media videos captured a towering column of white smoke billowing into the sky.
The Smithsonian Institution’s Global Volcanism Program notes that Hayli Gubbi has no recorded eruptions during the Holocene, the period dating back about 12,000 years to the end of the last Ice Age.
Volcanologist Simon Carn of Michigan Technological University also confirmed on Bluesky that the volcano had “no record of Holocene eruptions.”
Science & Technology
Cloudflare outage easing after millions of internet users affected
A global outage at web-infrastructure firm Cloudflare began to ease on Tuesday afternoon after preventing people from accessing major internet platforms, including X and ChatGPT.
Cloudflare, whose network handles around a fifth of web traffic, said it started to investigate the internal service degradation around 6:40 a.m. ET. It has deployed a fix but some customers might still be impacted as it recovers service.
The incident marked the latest hit to major online services. An outage of Amazon’s cloud service last month caused global turmoil as thousands of popular websites and apps, including Snapchat, were inaccessible due to the disruption.
Cloudflare – whose shares were down about 5% in premarket trading – runs one of the world’s largest networks that helps websites and apps load faster and stay online by protecting them from traffic surges and cyberattacks.
The latest outage prevented users from accessing platforms such as Canva, X, and ChatGPT, prompting users to log outage reports with Downdetector.
Downdetector tracks outages by collating status reports from a number of sources. “We saw a spike in unusual traffic to one of Cloudflare’s services beginning at 11:20 UTC. That caused some traffic passing through Cloudflare’s network to experience errors,” the company said in an emailed statement.
“We are all hands on deck to make sure all traffic is served without errors.”
X and ChatGPT-creator OpenAI did not immediately respond to requests for comment. – REUTERS
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