Good afternoon,

Here’s the headlines for this week: 7 February 2025

ECOMMERCE

Temu, Shein targeted as EU cracks down on unsafe e-commerce imports

• The European Commission has announced measures against Chinese e-commerce platforms Temu and Shein for selling unsafe products, aiming to curb the influx of cheap, dangerous goods into the EU. 
• An investigation into Shein will assess potential violations of EU consumer protection laws, reflecting broader concerns over product safety and market fairness. 
• The EU plans to phase out customs duty exemptions for low-value parcels and introduce handling fees to enhance import supervision and detect hazardous products before they reach consumers.

Trump slaps tariffs on top US trade partners—with risk of hikes if there’s retaliation—and there will be no exemptions

• President Donald Trump has imposed 25% tariffs on imports from Canada and Mexico, and 10% on Chinese goods, escalating tensions with key trading partners. 
• The tariffs are set to take effect on February 4, 2025, with the administration warning of potential increases if retaliatory measures are taken by the affected countries. 
• These actions risk igniting a trade war, with economists expressing concerns over potential slowdowns in global growth and rising inflation.

Canada announces retaliatory tariffs on long-time ally

• In response to U.S. tariffs, Canada has imposed 25% counter-tariffs on $30 billion worth of U.S. goods, effective February 4, 2025.
• The Canadian government stated that these measures will remain until the U.S. removes its tariffs against Canada, signaling a firm stance in the escalating trade dispute. 
• The tariffs target a range of U.S. products, reflecting Canada's strategic approach to applying economic pressure while minimizing domestic impact.

FTC Questions Temu About Amazon Pricing Policy

• The Federal Trade Commission has inquired into Temu's pricing practices, particularly regarding the offering of identical items at lower prices than Amazon. 
• This scrutiny is part of a broader investigation into Amazon's pricing policies and potential anti-competitive behavior. 
• The FTC's actions reflect ongoing concerns about fair competition and consumer pricing in the e-commerce sector.

CONSUMERS

‍Lawsuit accuses Amazon of secretly tracking consumers through cellphones

• A class-action lawsuit alleges that Amazon secretly tracked consumers' movements via their cellphones without consent and sold the collected data. 
• The plaintiffs claim that Amazon's actions violated privacy rights and seek damages for the unauthorized data collection. 
• Amazon has not yet publicly responded to the allegations, which raise significant concerns about consumer privacy and corporate data practices.

TECH

‍AI systems with ‘unacceptable risk’ are now banned in the EU

• The European Union's Artificial Intelligence Act has come into force, prohibiting AI systems deemed to pose an "unacceptable risk" to safety or fundamental rights. 
• The legislation categorizes AI applications into risk levels, with the highest-risk systems facing strict regulations or outright bans.
• Companies found in violation of the Act may face substantial fines, emphasizing the EU's commitment to responsible AI development and deployment.

Trump Says Microsoft Eyeing TikTok Bid to Keep App in US

• President Donald Trump has indicated that Microsoft is considering acquiring TikTok's U.S. operations amid ongoing national security concerns over the app's Chinese ownership. 
• The potential acquisition is seen as a move to prevent a U.S. ban on TikTok and address data privacy issues. 
• The situation reflects broader tensions between the U.S. and China regarding technology and data security.

Elon Musk's X is suing more advertisers over ad 'boycott'

• Elon Musk's social media platform, X, has filed lawsuits against several companies, including Lego and Nestlé, alleging they colluded to boycott advertising on the platform. 
• The lawsuits accuse these companies of antitrust violations and unfairly influencing platform policies through their participation in the Global Alliance for Responsible Media. 
• The legal actions highlight ongoing tensions between X and major advertisers concerning content moderation and platform governance.

Google Rages Over ‘Grave’ EU Errors in €4.3 Billion Android Fine

• Google is contesting a €4.3 billion fine imposed by the European Union for allegedly abusing its market power with the Android operating system.
• The company argues that the European Commission made significant errors in its assessment, claiming that Android's success is due to innovation rather than anti-competitive practices.
• Google is seeking to overturn the fine, emphasizing that its agreements with phone manufacturers promote competition.

UK raises cloud competition concerns, names Microsoft and Amazon as dominant players

• The UK's Competition and Markets Authority (CMA) has expressed concerns over the dominance of Microsoft and Amazon in the cloud computing market.
• Both companies hold significant market shares, potentially limiting competition and innovation.
• The CMA is considering further investigation to ensure a fair and competitive market environment.

RETAILERS

‍UPS to cut its Amazon business by more than 50%

• UPS plans to reduce its shipping volume with Amazon by over 50% by the second half of 2026.
• This strategic move aims to focus on more profitable ventures, as Amazon currently accounts for a significant portion of UPS's revenue.
• The announcement led to a notable decline in UPS's stock value.

Amazon introduces Easy Ship in Europe

• Amazon has launched its Easy Ship program in the Netherlands and Poland.
• The service allows sellers to streamline their shipping processes, offering faster and more cost-effective deliveries.
• Sellers can now drop off packages at designated locations, with Amazon handling the delivery to customers.

Amazon agrees to pay $6M and block sales of skin-lightening creams containing mercury, settling a decadelong lawsuit

• Amazon has settled a decade-long lawsuit by agreeing to pay $6 million and halt the sale of skin-lightening creams containing harmful levels of mercury.
• The lawsuit, initiated by the advocacy group As You Sow, highlighted the presence of toxic products on the platform.
• Amazon will also enhance its product safety measures to prevent future occurrences.

Amazon unveils location of first planned Prime Air drone delivery in the UK

• Amazon has selected Darlington as the site for its inaugural Prime Air drone deliveries in the UK.
• The service aims to deliver packages within 60 minutes using autonomous drones.
• Pending regulatory approvals, Amazon plans to commence operations, marking a significant advancement in delivery logistics.

CVS might soon let you open all those annoying locked shelves with your phone

• CVS is testing a new feature in its app that allows customers to unlock secured product cabinets using their smartphones.
• The initiative aims to enhance the shopping experience by reducing wait times for assistance.
• If successful, CVS plans to expand this feature to more locations later this year.

ADVERTISING

‍TikTok Tells Advertisers They Are Not Breaking the Law By Running Ads

• TikTok has assured advertisers that running ads on its platform does not violate any laws, despite ongoing regulatory scrutiny.
• The company emphasized that the recent "divest-or-ban" law applies to app distributors and service providers, not advertisers.
• TikTok remains committed to supporting its advertising partners amidst the evolving legal landscape.

See you next week,

The ChannelSight Team

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