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Apple warns India’s EU-style charger rules will hit local production target

Apple warns India’s EU-style charger rules will hit local production target

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Apple warns India's EU-style charger rules will hit local production target

Apple (AAPL.O) has told India its local production targets will be hit if New Delhi follows the European Union and requires existing iPhones to have universal charging ports, a government document shows as the US tech giant lobbies for an exemption or delay.

India wants to implement a European Union rule that will require smartphones to have a universal USB-C charging port and has been in talks with manufacturers about introducing the requirement in India by June 2025, six months after the deadline in the EU.

While all manufacturers including Samsung (005930.KS) have agreed to India’s plan, Apple is pushing back.

Apple has for years offered a unique lightning connector port on its iPhones. The EU, however, estimates a single charger solution would save about $271 million for consumers, and India has said the move will reduce e-waste and help users.

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In a closed-door Nov. 28 meeting chaired by India’s IT ministry, Apple asked officials to exempt existing iPhone models from the rules, warning it will otherwise struggle to meet production targets set under India’s production-linked incentive (PLI) scheme, according to the meeting minutes seen by Reuters.

PLI is a key project of Prime Minister Narendra Modi and offers electronic manufacturers in India fiscal incentives for fresh investments and incremental phone sales each year. It has been extensively used by Apple suppliers like Foxconn (2317.TW) to expand iPhone manufacturing in the country.

“If the regulation is implemented on earlier models of mobile phones, they (Apple) will not be able to meet the PLI targets,” the minutes quoted Apple’s regulatory and product compliance executives as saying while opposing the rules.

Apple did not quantify the production impact in the meeting, and the IT ministry decided to review its request and reach a decision later, two people familiar with the discussions said.

Apple, whose India lobbying efforts are being reported for the first time, and India’s IT ministry, did not respond to Reuters requests for comment.

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DESIGN CAN’T CHANGE

India is seen as Apple’s next growth frontier after China.

Renowned Apple analyst Ming-Chi Kuo has estimated 12-14% of iPhone production in 2023 will be from India, with the number set to rise to as much as 25% next year.

In terms of market share, Apple accounts for 6% of India’s booming smartphone market, compared with just about 2% four years ago. Apple suppliers have expanded their facilities and make most iPhone 12, 13, 14 and 15 models in India for local sales and exports, Counterpoint Research estimates.

Only the iPhone 15 has the new universal charging port. Apple told Indian officials in the meeting that the “design of the earlier products cannot be changed,” the document showed.

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Consumers in India’s price-conscious market prefer buying older models of iPhones which typically become cheaper with new launches, and India’s push for the common charger on older models could hit Apple’s targets, said Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research.

“Apple’s fortunes in India have primarily been tied to older generation iPhones,” he said.

The EU’s charging port rules kick in in December 2024, and India wants compliance by June 2025.

Apple told officials it can comply with that timeline if existing models are exempted from the rules, but will need 18 months beyond 2024 if they are not.

“A natural transition period should be given … keeping in mind the product design timelines,” the minutes quoted Apple executives as telling government officials. 

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A former OpenAI leader says safety has ‘taken a backseat to shiny products’ at the AI company

A former OpenAI leader says safety has ‘taken a backseat to shiny products’ at the AI company

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A former OpenAI leader says safety has 'taken a backseat to shiny products' at the AI company

A former OpenAI leader who resigned from the company earlier this week said Friday that safety has “taken a backseat to shiny products” at the influential artificial intelligence company.

Jan Leike, who ran OpenAI’s “Superalignment” team alongside a company co-founder who also resigned this week, wrote in a series of posts on the social media platform X that he joined the San Francisco-based company because he thought it would be the best place to do AI research.

“However, I have been disagreeing with OpenAI leadership about the company’s core priorities for quite some time, until we finally reached a breaking point,” wrote Leike, whose last day was Thursday.

An AI researcher by training, Leike said he believes there should be more focus on preparing for the next generation of AI models, including on things like safety and analyzing the societal impacts of such technologies.

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He said building “smarter-than-human machines is an inherently dangerous endeavor” and that the company “is shouldering an enormous responsibility on behalf of all of humanity.”

“OpenAI must become a safety-first AGI company,” wrote Leike, using the abbreviated version of artificial general intelligence, a futuristic vision of machines that are as broadly smart as humans or at least can do many things as well as people can.

Open AI CEO Sam Altman wrote in a reply to Leike’s posts that he was “super appreciative” of Leike’s contributions to the company was “very sad to see him leave.”

Leike is “right we have a lot more to do; we are committed to doing it,” Altman said, pledging to write a longer post on the subject in the coming days.

The company also confirmed Friday that it had disbanded Leike’s Superalignment team, which was launched last year to focus on AI risks, and is integrating the team’s members across its research efforts.

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Leike’s resignation came after OpenAI co-founder and chief scientist Ilya Sutskever said Tuesday that he was leaving the company after nearly a decade.

Sutskever was one of four board members last fall who voted to push out Altman — only to quickly reinstate him. It was Sutskever who told Altman last November that he was being fired, but he later said he regretted doing so.

Sutskever said he is working on a new project that’s meaningful to him without offering additional details.

He will be replaced by Jakub Pachocki as chief scientist. Altman called Pachocki “also easily one of the greatest minds of our generation” and said he is “very confident he will lead us to make rapid and safe progress towards our mission of ensuring that AGI benefits everyone.”

On Monday, OpenAI showed off the latest update to its artificial intelligence m

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US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

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US, TikTok seek fast-track schedule, ruling by Dec. 6 on potential ban

The U.S. Justice Department and TikTok on Friday asked a U.S. appeals court to set a fast-track schedule to consider the legal challenges to a new law requiring China-based ByteDance to divest TikTok’s U.S. assets by Jan. 19 or face a ban.

TikTok, ByteDance and a group of TikTok content creators joined with the Justice Department in asking the U.S. Court of Appeals for the District of Columbia to rule by Dec. 6 to be able to seek review from the Supreme Court if needed before the U.S. deadline. 

On Tuesday, a group of TikTok creators filed suit to block the law that could ban the app used by 170 million Americans, saying it has had “a profound effect on American life.”

Last week, TikTok and parent company ByteDance filed a similar lawsuit, arguing that the law violates the U.S. Constitution on a number of grounds including running afoul of First Amendment free speech protections.

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“In light of the large number of users of the TikTok platform, the public at large has a significant interest in the prompt disposition of this matter,” the U.S. Justice Department and TikTok petitioners said.

TikTok said with a fast-track schedule it believes the legal challenge can be resolved without it needing to request
emergency preliminary injunctive relief.

The law, signed by President Joe Biden on April 24, gives ByteDance until Jan. 19 to sell TikTok or face a ban. The White House says it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok.

The parties asked the court to set the case for oral arguments as soon as practical during the September case calendar. The Justice Department said it may file classified material to support the national security justifications in secret with the court.

Earlier this week the Justice Department said the TikTok law “addresses critical national security concerns in a manner that is consistent with the First Amendment and other constitutional limitations.”

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The law prohibits app stores like Apple and Alphabet’s Google from offering TikTok and bars internet hosting services from supporting TikTok unless ByteDance divests TikTok.

Driven by worries among U.S. lawmakers that China could access data on Americans or spy on them with the app, the measure was passed overwhelmingly in Congress just weeks after being introduced.

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Spotify sued over alleged unpaid royalties

Spotify sued over alleged unpaid royalties

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Spotify sued over alleged unpaid royalties

Music streaming giant Spotify has been sued in a US federal court for allegedly underpaying songwriters, composers and publishers by tens of millions of dollars.

The lawsuit against Spotify USA was filed in New York on Thursday by the Mechanical Licensing Collective (MLC), a non-profit that collects and distributes royalties owed from music streaming services.

The suit alleges that Spotify on March 1, without advance notice, reclassified its paid subscription services, resulting in a nearly 50 percent reduction in royalty payments to MLC.

“The financial consequences of Spotify’s failure to meet its statutory obligations are enormous for Songwriters and Music Publishers,” MLC said.

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“If unchecked, the impact on Songwriters and Music Publishers of Spotify’s unlawful underreporting could run into the hundreds of millions of dollars.”

According to MLC, Spotify reclassified its Premium Individual, Duo and Family subscription streaming plans as Bundled Subscription Offerings because they now include audiobooks.

Royalties paid on bundled services are significantly less. MLC said Premium subscribers already had access to audiobooks and “nothing has been bundled with it.”

“Premium is exactly the same service that Spotify offered to its subscribers before the launch of Audiobooks Access,” it said. In a statement, Spotify said the lawsuit “concerns terms that publishers and streaming services agreed to and celebrated years ago.”

Spotify said it paid a “record amount” in royalties last year and “is on track to pay out an even larger amount in 2024.” “We look forward to a swift resolution of this matter,” the Swedish company said.

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In February, Spotify said it paid $9 billion to musicians and publishers last year, about half of which went to independent artists. 

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