The Courts

'Anne Frank' Copyright Dispute Triggers VPN, Geoblocking Questions At EU's Highest Court (torrentfreak.com) 98

An anonymous reader quotes a report from TorrentFreak: The Dutch Supreme Court has requested guidance from the EU's top court on geo-blocking, VPNs, and copyright in a case involving the online publication of Anne Frank's manuscripts. The CJEU's response has the potential to reshape the online content distribution landscape, impacting streaming platforms and other services that rely on geo-blocking. VPNs services will monitor the matter with great interest too. [...] While early versions are presumably in the public domain in several countries, the original manuscripts are protected by copyright in the Netherlands until 2037. As a result, the copies published by the Dutch Anne Frank Stichting, are blocked for Dutch visitors. "The scholarly edition of the Anne Frank manuscripts cannot be made available in all countries, due to copyright considerations," is the message disallowed visitors get to see.

This blocking effort is the result of a copyright battle. Ideally, Anne Frank Stichting would like to make the manuscripts available worldwide, but the Swiss 'Fonds' has not given permission for it to do so. And since some parts of the manuscript were first published in 1986, Dutch copyrights are still valid. In theory, geo-blocking efforts could alleviate the copyright concerns but, for the Fonds, these measures are not sufficient. After pointing out that people can bypass the blocking efforts with a VPN, it took the matter to court. Around the world, publishers and streaming services use geo-blocking as the standard measure to enforce geographical licenses. This applies to the Anne Frank Stichting, as well as Netflix, BBC iPlayer, news sites, and gaming platforms. The Anne Frank Fonds doesn't dispute this, but argued in court that people can circumvent these restrictions with a VPN, suggesting that the manuscripts shouldn't be published online at all. The lower court dismissed this argument, stating the defendants had taken reasonable measures to prevent access from the Netherlands. The Fonds appealed, but the appeal was also dismissed, and the case is now before the Dutch Supreme Court.

The Fonds argues that the manuscript website is (in part) directed at a Dutch audience. Therefore, the defendants are making the manuscripts available in the Netherlands, regardless of the use of any blocking measures. The defendants, in turn, argue that the use of state-of-the-art geo-blocking, along with additional measures like a user declaration, is sufficient to prevent a communication to the public in the Netherlands. The defense relied on the opinion in the GO4YU case, which suggests that circumventing geo-blocking with a VPN does not constitute a communication to the public in the blocked territory, unless the blocking is intentionally ineffective.

Mozilla

Mozilla Hit With Privacy Complaint In EU Over Firefox Tracking Tech (techcrunch.com) 21

Mozilla has been hit with a complaint by EU privacy group noyb, accusing it of violating GDPR by tracking Firefox users by default without their consent. TechCrunch reports: Mozilla calls the feature at issue "Privacy Preserving Attribution" (PPA). But noyb argues this is misdirection. And if EU privacy regulators agree with the complaint the Firefox-maker could be slapped with orders to change tack -- or even face a penalty (the GDPR allows for fines of up to 4% of global revenue). "Contrary to its reassuring name, this technology allows Firefox to track user behaviour on websites," noyb wrote in a press release. "In essence, the browser is now controlling the tracking, rather than individual websites. While this might be an improvement compared to even more invasive cookie tracking, the company never asked its users if they wanted to enable it. Instead, Mozilla decided to turn it on by default once people installed a recent software update. This is particularly worrying because Mozilla generally has a reputation for being a privacy-friendly alternative when most other browsers are based on Google's Chromium."

Another component of noyb's objection is that Mozilla's move "doesn't replace cookies either" -- Firefox simply wouldn't have the market share and power to shift industry practices -- so all it's done is produce another additional way for websites to target ads. [...] The noyb-backed complaint (PDF), which has been filed with the Austrian data protection authority, accuses Mozilla of failing to inform users about the processing of their personal data and of using an opt-out -- rather than an affirmative "opt-in" -- mechanism. The privacy rights group also wants the regulator to order the deletion of all data collected so far.
In a statement attributed to Christopher Hilton, its director of policy and corporate communications, Mozilla said that it has only conducted a "limited test" of a PPA prototype on its own websites.While acknowledging poor communication around the effort, the company emphasized that no user data has been collected or shared and expressed its commitment to engaging with stakeholders as it develops the technology further.
Google

Google Complains To EU Over Microsoft Cloud Practices (reuters.com) 22

Alphabet unit Google filed a complaint to the European Commission on Wednesday against what it said were Microsoft's anti-competitive practices to lock customers into Microsoft's cloud platform Azure. From a report: Google, whose biggest cloud computing rivals are Microsoft and Amazon Web Services, said Microsoft was exploiting its dominant Windows Server operating system to prevent competition. Google Cloud Vice President Amit Zavery told a briefing that Microsoft made customers pay a 400% mark-up to keep running Windows Server on rival cloud computing operators. This did not apply if they used Azure. Users of rival cloud systems would also get later and more limited security updates, Zavery said.

Google pointed to a 2023 study by cloud services organization CISPE which found that European businesses and public sector bodies were paying up to 1 billion euros ($1.12 billion) per year on Microsoft licensing penalties. Microsoft in July clinched a 20-million-euro deal to settle an antitrust complaint about its cloud computing licensing practices with CISPE, averting an EU investigation. However, the settlement did not include Amazon Web Services, Google Cloud Platform and AliCloud, prompting criticism from the first two companies.

The Almighty Buck

Germany Seizes 47 Crypto Exchanges Used By Ransomware Gangs (bleepingcomputer.com) 30

German law enforcement seized 47 cryptocurrency exchange services "that facilitated illegal money laundering activities for cybercriminals," according to BleepingComputer, "including ransomware gangs."

Long-time Slashdot reader Arrogant-Bastard shares their report: The platforms allowed users to exchange cryptocurrencies without following applicable "Know Your Customer" regulations, meaning that users remained completely anonymous when making transactions. This created a low-risk environment for cybercriminals to launder their proceeds without fearing prosecution or being tracked. "Exchange services that enable such anonymous financial transactions and thus money laundering represent one of the most relevant building blocks in the criminal value chain of the cybercrime phenomenon," reads a Federal Criminal Police Office (BKA) announcement... When visiting any of the seized exchanges, you are now redirected to a warning page titled "Operation Final Exchange," which warns visitors that they have been deceived by the promises of anonymity by the operators of these platforms.
The new site notes years-long promises from the exchanges "that their hosting cannot be found, that they do not store any customer data and that all data is deleted immediately after the transaction...

"We have found their servers and seized them — development servers, production servers, backup servers. We have their data — and therefore we have your data. Transactions, registration data, IP addresses.

"Our search for traces begins. See you soon."
Power

How Cyprus Became a World Leader In Solar Heating (theguardian.com) 138

The republic of Cyprus "has outstripped all other EU member states in embracing hot-water solar systems," reports the Guardian, "with an estimated 93.5 % of households exploiting the alternative energy form for domestic needs." EU figures show the eastern Mediterranean island exceeding renewable energy targets set in the heating and cooling of buildings thanks to the widespread use of the solar thermal technology... [First introduced in the late 1960s], the solar thermal systems not only collected solar energy as heat — usually generated through electricity and the burning of fossil fuels — they were extremely cost-effective and had helped spawn an entire industry [says Charalampos Theopemptou, the island's first environment commissioner and the head of the Cypriot parliament's environment committee].

"It's been great for low-income families and then there's the jobs: so many have been generated," the MP says. "There are the local manufacturers who produce the parts and then all the people who are trained to install them. It's big business." In his role as environment commissioner, Theopemptou pushed hard to make the solar systems obligatory on all newly constructed residential and commercial buildings... The popularity of the water heaters is such that a union of local solar thermal industrialists was established in 1977. Since then, more than 962,564 square cubic metres of "solar [panel] collectors" have been installed, the union says. Increasingly, the country's vibrant tourist industry has also resorted to the green solution with solar-powered hot water systems deployed in, they say, close to 100% of hotels...

For Demetra Asprou, a retired engineer, it's obvious that a region blessed with more than 300 days of sunshine a year should embrace solar energy. "It reduces electricity costs, increases the efficiency with which hot water is provided and is kind to the environment," she says. "Why would anyone use other, more traditional means to heat up water when only a few hours of sunlight, between 11am and 2pm, is enough for a 200-litre [44-gallon] tank to be filled with warm water that will last 48 hours? On days when there is no sunlight, which is rare, you always have electricity as a backup if necessary... Installation costs may be three times higher today, but there are EU-funded grants that the government hands out and within a year it's all paid off," she says. "After that, you basically have free hot water and see your electricity bills greatly reduced. In a country like Cyprus, it's a no-brainer."

Thanks to Slashdot reader votsalo for sharing the article.
Transportation

California Drivers May Soon Get Mandatory In-Car Speed Warnings Like the EU (caranddriver.com) 207

UPDATE (9/28): California's governor vetoed the bill.

Below is Slashdot's original story...

"Exceed the speed limit in one of the 27 European Union countries, and you may get some pushback from your vehicle," reports Car and Driver. "As of July, new cars sold in the EU must include a speed-warning device that alerts drivers if they exceed the posted limit."

The warnings can be ither acoustic or haptic, "though the European Commission gives automakers the latitude to supplant those passive measures with either an active accelerator pedal that applies counterpressure against the driver's foot or a governor that restricts the vehicle's speed to the legal limit." Drivers can override or deactivate these admonishments, but the devices must default to their active state at startup.

Now California is looking to emulate the EU with legislation that would mandate in-car speed-warning devices [for driving more than 10 miles per hour over the speed limit — in "just about every 2030 model-year vehicle equipped with either GPS or a front-facing camera"].

The article cites statistics that 18% of those drivers involved in fatal crashes were speeding.

Although the projects director at the European Transport Safety Council also acknowledges the systems may struggle to identify speed limits from passing signs — and that their testing shows the systems generally irritate drivers, who often deactivate the systems...

Thanks to long-time Slashdot reader sinij for sharing the article.
AI

Tech Giants Push To Dilute Europe's AI Act (reuters.com) 38

The world's biggest technology companies have embarked on a final push to persuade the European Union to take a light-touch approach to regulating AI as they seek to fend off the risk of billions of dollars in fines. From a report: EU lawmakers in May agreed the AI Act, the world's first comprehensive set of rules governing the technology, following months of intense negotiations between different political groups. But until the law's accompanying codes of practice have been finalised, it remains unclear how strictly rules around "general purpose" AI (GPAI) systems, such as OpenAI's ChatGPT will be enforced and how many copyright lawsuits and multi-billion dollar fines companies may face.

The EU has invited companies, academics, and others to help draft the code of practice, receiving nearly 1,000 applications, an unusually high number according to a source familiar with the matter who requested anonymity because they were not authorised to speak publicly. The AI code of practice will not be legally binding when it takes effect late next year, but it will provide firms with a checklist they can use to demonstrate their compliance. A company claiming to follow the law while ignoring the code could face a legal challenge.

Earth

'Butterfly Emergency' Declared as UK Summer Count Hits Record Low (theguardian.com) 40

A national "butterfly emergency" has been declared by Butterfly Conservation after the lowest Big Butterfly Count since records began. From a report: An average of just seven butterflies per 15-minute count were recorded by participants in this summer's butterfly count, the lowest in the survey's 14-year history. It was the worst year on record for once-ubiquitous species, including the common blue, small tortoiseshell, small white and green-veined white. Eight out of the 10 most-seen species have declined -- in many cases dramatically -- over the count's history. Previous lowest-ever numbers of butterflies-per-count were logged in 2022, 2021 and 2020.

Butterfly Conservation is calling for the government to declare a "nature emergency" and ban insect-killing neonicotinoid pesticides, with no exceptions. Britain and the EU banned neonicotinoids in 2018 but the UK government has authorised an exemption for the pesticides to be used on sugar beet every year since 2021. Before the election, Labour promised to ban all neonicotinoids.
Further reading: UK Nature Chief Sounds Alarm Over Ecosystem Collapse as Butterfly Numbers Halve.
Encryption

Global Police Dismantle Encrypted Messaging App Used By Criminals (ft.com) 36

International police forces have taken down an encrypted communication platform and arrested 51 people, marking a success for co-ordinated efforts to crack down on anonymous messaging services used by criminal groups. FT: Europol and law enforcement agencies from nine countries dismantled Ghost [non-paywalled source], an online platform which used three different encryption standards and allowed users to destroy all messages by sending a specific code, Europol announced on Wednesday. The crackdown is the latest operation by international agencies to decode encrypted messaging services used by criminals to manage their international operations, following the takedown of platforms such as EncroChat and Sky ECC in recent years.

[...] McLean said Ghost was administered by a 32-year-old man from Australia, one of the operation's principal targets. As a result of the decryption operation, where officers broke the app's code so they could read users' messages, the death or injury of as many as 50 people could have been prevented, McLean said.

Crime

$50M In Counterfeit Vintage Consoles and Videogames Seized From Italian Crime Ring (bbc.com) 30

Police in Italy "smashed" a videogame trafficking ring, reports the BBC. They seized fake vintage Nintendo, Sega and Atari consoles that didn't meet strict safety standards, as well as counterfeit games — including Mario Bros., Street Fighter and Star Wars — that together were worth almost €50m ($55.5m) Around 12,000 consoles holding over 47 million pirated video games were seized by police, Alessandro Langella, head of the economic crime unit for Turin's financial police, told the AFP news agency... They were "all from China" and were imported to be sold in specialised shops or online, Mr Langella said...

The seized games have been destroyed. Nine Italian nationals have been arrested and charged with trading in counterfeited goods. If found guilty, they face up to eight years in prison.

Networking

'Samba' Networking Protocol Project Gets Big Funding from the German Sovereign Tech Fund (samba.plus) 33

Samba is "a free software re-implementation of the SMB networking protocol," according to Wikipedia. And now the Samba project "has secured significant funding (€688,800.00) from the German Sovereign Tech Fund to advance the project," writes Jeremy Allison — Sam (who is Slashdot reader #8,157 — and also a long standing member of Samba's core team): The investment was successfully applied for by [information security service provider] SerNet. Over the next 18 months, Samba developers from SerNet will tackle 17 key development subprojects aimed at enhancing Samba's security, scalability, and functionality.

The Sovereign Tech Fund is a German federal government funding program that supports the development, improvement, and maintenance of open digital infrastructure. Their goal is to sustainably strengthen the open source ecosystem.

The project's focus is on areas like SMB3 Transparent Failover, SMB3 UNIX extensions, SMB-Direct, Performance and modern security protocols such as SMB over QUIC. These improvements are designed to ensure that Samba remains a robust and secure solution for organizations that rely on a sovereign IT infrastructure. Development work began as early as September the 1st and is expected to be completed by the end of February 2026 for all sub-projects.

All development will be done in the open following the existing Samba development process. First gitlab CI pipelines have already been running and gitlab MRs will appear soon!

Back in 2000, Jeremy Allison answered questions from Slashdot readers about Samba.

Allison is now a board member at both the GNOME Foundation and the Software Freedom Conservancy, a distinguished engineer at Rocky Linux creator CIQ, and a long-time free software advocate.
Apple

Apple Must Pay $14 Billion Tax Bill To Ireland, EU Court Rules (telegraph.co.uk) 189

Bruce66423 shares a report: The European Union's top court ruled against Apple Tuesday in the tech company's protracted legal battle over contested back taxes in Ireland. The ruling means Apple will be forced to pay Ireland up to $14.4 billion in back taxes and represents the latest setback in Europe for the tech giant. Earlier this year, Apple became the first company to be accused of violating the EU's new major tech competition law. The tax case stretches back to 2016, when the European Commission (EC) ordered Apple repay Ireland roughly $14.4 billion of unpaid taxes.

The commission argued that the tech giant had received "illegal" tax benefits from Ireland over the course of two decades. Apple had housed its European headquarters in Ireland and paid a corporate tax rate of less than 1% in some years, which the EC argued gave Apple an unfair advantage over other companies. Apple and Ireland appealed the decision in 2019. The European Court of Justice on Tuesday overturned the lower court decision and upheld the EC's 2016 order. "Today is a big win for European citizens and for tax justice. The Court of Justice confirms ... that Ireland granted Apple unlawful aid which Ireland now has to recover," Margrethe Vestager, the EU competition chief, said in a statement Tuesday.

Google

Google's 2.4 Billion Euro Fine Upheld By Europe's Top Court in EU Antitrust Probe (cnbc.com) 11

Europe's top court on Tuesday upheld a 2.4 billion euro ($2.65 billion) fine imposed on Google for abusing its dominant position by favoring its own shopping comparison service. From a report: The fine stems from an antitrust investigation by the European Commission, the executive arm of the European Union, which concluded in 2017. The commission said at the time that Google had favored its own shopping comparison service over those of its rivals. Google appealed the decision with the General Court, the EU's second-highest court, which also upheld the fine. Google then brought the case before the European Court of Justice, the EU's top court.

The ECJ on Tuesday dismissed the appeal and upheld the commission's fine. "We are disappointed with the decision of the Court," a Google spokesperson told CNBC on Tuesday. "This judgment relates to a very specific set of facts. We made changes back in 2017 to comply with the European Commission's decision. Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services."

Crime

Pacific Islands Submit Court Proposal For Recognition of Ecocide As a Crime 58

Vanuatu, Fiji, and Samoa have proposed a change to the International Criminal Court (ICC) to recognize ecocide as a crime, allowing for the prosecution of individuals responsible for significant environmental harm. If successful, the change would recognize ecocide as a crime alongside genocide and war crimes. The Guardian reports: Vanuatu, Fiji and Samoa have proposed a formal recognition by the court of the crime of ecocide, defined as "unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment being caused by those acts." The proposal was tabled before the ICC in New York on Monday afternoon, and will have to be discussed in full at a later date. Holding full discussions on the proposal is a process likely to take some years, and will face fierce opposition, though much of it will be behind the scenes as most countries will not wish to openly speak out against it.

Philippe Sands KC, a prominent international lawyer and professor of law at University College London, acted as a co-chair of the independent expert panel for the legal definition of ecocide, convened by the Stop Ecocide Foundation. He told the Guardian he was "100% certain" that ecocide would eventually be recognized by the court. "The only question is when," he said. "I was skeptical at first, but now I am a true believer. There has already been real change, as some countries have put it in domestic law. I think this is the right idea at the right time." Belgium recently adopted ecocide as a crime, and the EU has changed some of its guidance on international crime to include it as a "qualified" offense. Mexico is also considering such a law. [...]

Getting to the point where the ICC will consider the proposal has taken years. Stop Ecocide International has been campaigning on the issue since 2017, and Vanuatu made the first call for the crime to be recognized by the ICC in 2019. Although it could take as long as a decade from now before anyone is charged with ecocide even if the changes were implemented by the ICC, the proposal tabled on Monday was vital to gaining broader acceptance of the concept, according to [Jojo Mehta, a co-founder of the Stop Ecocide International campaigning group, which is an observer to the ICC]. "There has been growing progress, as people are increasingly aware of the threat of climate [breakdown]," she said. "People are saying that this much harm to the planet is just not acceptable."
EU

US, UK, EU Sign 'Legally Binding' AI Treaty 51

The United States, United Kingdom and European Union have signed the first "legally binding" international AI treaty on Thursday, the Council of Europe human rights organization said. Called the AI Convention, the treaty promotes responsible innovation and addresses the risks AI may pose. Reuters reports: The AI Convention mainly focuses on the protection of human rights of people affected by AI systems and is separate from the EU AI Act, which entered into force last month. The EU's AI Act entails comprehensive regulations on the development, deployment, and use of AI systems within the EU internal market. The Council of Europe, founded in 1949, is an international organization distinct from the EU with a mandate to safeguard human rights; 46 countries are members, including all the 27 EU member states. An ad hoc committee in 2019 started examining the feasibility of an AI framework convention and a Committee on Artificial Intelligence was formed in 2022 which drafted and negotiated the text. The signatories can choose to adopt or maintain legislative, administrative or other measures to give effect to the provisions.

Francesca Fanucci, a legal expert at ECNL (European Center for Not-for-Profit Law Stichting) who contributed to the treaty's drafting process alongside other civil society groups, told Reuters the agreement had been "watered down" into a broad set of principles. "The formulation of principles and obligations in this convention is so overbroad and fraught with caveats that it raises serious questions about their legal certainty and effective enforceability," she said. Fanucci highlighted exemptions on AI systems used for national security purposes, and limited scrutiny of private companies versus the public sector, as flaws. "This double standard is disappointing," she added.
Businesses

Deutsche Bank Chief Tells Germans: Work Longer and Harder (politico.eu) 176

Deutsche Bank CEO Christian Sewing this week urged Germans to work harder to help restore the country's economy. From a report: "Investors are already doubting our ability to reform, but especially our ability and our will to perform," Sewing said at the Handelsblatt banking summit in Frankfurt. "More growth in Germany will come only if we also change our attitude to work; if we are prepared to work differently, but overall to work more and harder." Sewing said that EU citizens work about 34 hours a week on average compared with about 28 hours in Germany.

He argued that Germany should embrace longer work-weeks. "We won't manage it with an average of 28 hours per week and a pension at 63," he said. The euro area's biggest economy has been digesting a slate of negative economic data recently. For starters, the German economy contracted in the second quarter of the year, while at the start of the month, the manufacturing purchasing managers index (PMI), a key indicator of industrial sentiment, flashed negative, marking over a year it's been in negative territory.

The Courts

Clearview AI Fined $33.7 Million Over 'Illegal Database' of Faces (apnews.com) 40

An anonymous reader quotes a report from the Associated Press: The Dutch data protection watchdog on Tuesday issued facial recognition startup Clearview AI with a fine of $33.7 million over its creation of what the agency called an "illegal database" of billion of photos of faces. The Netherlands' Data Protection Agency, or DPA, also warned Dutch companies that using Clearview's services is also banned. The data agency said that New York-based Clearview "has not objected to this decision and is therefore unable to appeal against the fine."

But in a statement emailed to The Associated Press, Clearview's chief legal officer, Jack Mulcaire, said that the decision is "unlawful, devoid of due process and is unenforceable." The Dutch agency said that building the database and insufficiently informing people whose images appear in the database amounted to serious breaches of the European Union's General Data Protection Regulation, or GDPR. "Facial recognition is a highly intrusive technology, that you cannot simply unleash on anyone in the world," DPA chairman Aleid Wolfsen said in a statement. "If there is a photo of you on the Internet -- and doesn't that apply to all of us? -- then you can end up in the database of Clearview and be tracked. This is not a doom scenario from a scary film. Nor is it something that could only be done in China," he said. DPA said that if Clearview doesn't halt the breaches of the regulation, it faces noncompliance penalties of up to $5.6 million on top of the fine.
Mulcaire said Clearview doesn't fall under EU data protection regulations. "Clearview AI does not have a place of business in the Netherlands or the EU, it does not have any customers in the Netherlands or the EU, and does not undertake any activities that would otherwise mean it is subject to the GDPR," he said.
Apple

Spotify Points Finger at Apple Over an Unwelcome Change To Volume Control Tech (techcrunch.com) 82

Spotify claims Apple may be again in violation of European regulation, the Digital Markets Act (DMA), which requires interoperability from big technology companies dubbed "gatekeepers." From a report: This time, the issue isn't about in-app purchases, links or pricing information, but rather how Apple has discontinued the technology that allows Spotify users to control the volume on their connected devices.

When streaming to connected devices via Spotify Connect on iOS, users were previously able to use the physical buttons on the side of their iPhone to adjust the volume. As a result of the change, this will no longer work. To work around the issue, Spotify iOS users will instead be directed to use the volume slider in the Spotify Connect menu in the app to control the volume on connected devices. The company notes that this issue doesn't affect users controlling the volume on iOS Bluetooth or AirPlay sessions, nor users on Android. It only applies to those listening via Spotify Connect on iOS. As a result, Spotify iOS users globally will be directed to use the new in-app volume slider beginning on September 3.

EU

EU Investigating Telegram Over User Numbers (ft.com) 48

Brussels is investigating whether Telegram breached EU digital rules by failing to provide accurate user numbers [non-paywalled source], as officials push to bring the controversial messaging app under stricter supervision. Financial Times: EU legal and data experts suspect that the app has understated its presence in the EU to stay under a 45mn user threshold, above which large online platforms are subject to a swath of Brussels regulations designed to check their influence. The EU probe comes alongside a wide-ranging French investigation into alleged criminal activity on Telegram that led to the arrest on Saturday of its founder, Russian-born billionaire Pavel Durov.

Telegram has said Durov, who is now a French-Emirati citizen, has "nothing to hide." Telegram said in February it had 41mn users in the EU. Under the EU's Digital Services Act (DSA), Telegram was supposed to provide an updated number this month but did not, only declaring it had "significantly fewer than 45mn average monthly active recipients in the EU."

AI

Klarna Aims To Halve Workforce With AI-Driven Gains (ft.com) 49

Klarna aims to extend AI-driven cuts to its workforce with plans to axe almost half of its staff [non-paywalled source], as the lossmaking Swedish buy now, pay later company gears up for a stock market flotation. FT: Chief executive Sebastian Siemiatkowski heralded the benefits of AI in Klarna's second-quarter results on Tuesday, which showed a significant narrowing of its net loss from SKr854mn ($84mn) a year earlier to SKr10mn. The Swedish fintech has already cut its workforce from 5,000 to 3,800 in the past year. Siemiatkowski told the Financial Times that Klarna could employ as few as 2,000 employees in the coming years as it uses AI in tasks such as customer service and marketing.

"Not only can we do more with less, but we can do much more with less. Internally, we speak directionally about 2,000 [employees]. We don't want to put a specific deadline on that," he added. Klarna has imposed a hiring freeze on workers apart from engineers and is using natural attrition rather than lay-offs to shrink its workforce. Siemiatkowski has become one of the most outspoken European tech bosses about the benefits of AI, even if it leads to lower employment, arguing that is an issue for governments to worry about. The Stockholm-based group is lining up financial advisers for its long-anticipated initial public offering -- due as early as the first half of next year -- with Morgan Stanley, JPMorgan Chase and Goldman Sachs in lead positions to secure top roles, people familiar with the matter have previously told the FT.

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