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Rani Molla

EU says Meta’s “pay or consent” model may violate consumer protection laws, too

The European Commission is going after Meta and its “pay or consent” model on multiple fronts. Today, the government body said giving consumers only the options to either pay a €12.99 subscription fee to use Meta and Instagram or to consent for their personal data to be used in advertising might violate its consumer protection laws.

Consumer protection authorities found several elements of the company’s rollout of the model may have constituted “misleading or aggressive practices,” including:

  • using the word “free”

  • “confusing users” trying to read their privacy policy and terms of service

  • for using “imprecise terms and language”

  • and for pressuring them to make a choice quickly.

Meta has till September 1 to reply to the letter with proposed solutions.

Earlier this month, the EC said Meta’s model might have failed to comply with its Digital Markets Act by not offering consumers a third option.

Consumer protection authorities found several elements of the company’s rollout of the model may have constituted “misleading or aggressive practices,” including:

  • using the word “free”

  • “confusing users” trying to read their privacy policy and terms of service

  • for using “imprecise terms and language”

  • and for pressuring them to make a choice quickly.

Meta has till September 1 to reply to the letter with proposed solutions.

Earlier this month, the EC said Meta’s model might have failed to comply with its Digital Markets Act by not offering consumers a third option.

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OpenAI’s hot Sora video app is a copyright lawsuit waiting to happen

OpenAI has generated some serious buzz surrounding its new Sora video generation app. The app is currently No. 3 on the iOS free app leaderboards, even though it’s invitation-only for the time being.

But users have been flooding social media with videos generated by Sora, and in addition to a “Skibidi Toilet” Sam Altman and the OpenAI CEO dressed as a Nazi, the app is able to create videos featuring iconic characters from Disney, Nintendo, and Paramount Skydance.

On the system card for the Sora 2 AI model (which powers the Sora app), OpenAI says it was trained on things found on the internet:

“Sora 2 was trained on diverse datasets, including information that is publicly available on the internet, information that we partner with third parties to access, and information that our users or human trainers and researchers provide or generate.”

This seems like an invitation for a big copyright lawsuit, along the lines of the one Disney, Dreamworks, and NBCUniversal recently filed against AI image generator Midjourney.

But OpenAI is trying to flip the responsibility of protecting copyrighted material to the intellectual property owners themselves. According to The Wall Street Journal, OpenAI is allowing copyrighted material in Sora by default, unless copyright holders opt out of the service.

The courts will have to decide if this novel approach to intellectual copyright law works, but government regulators may not be that big of a problem, as Altman has made sure OpenAI is in the good graces of the Trump administration. If OpenAI has to pay up to copyright holders after a lawsuit, what’s a few billion dollars here or there when you’re raising so much capital?

On the system card for the Sora 2 AI model (which powers the Sora app), OpenAI says it was trained on things found on the internet:

“Sora 2 was trained on diverse datasets, including information that is publicly available on the internet, information that we partner with third parties to access, and information that our users or human trainers and researchers provide or generate.”

This seems like an invitation for a big copyright lawsuit, along the lines of the one Disney, Dreamworks, and NBCUniversal recently filed against AI image generator Midjourney.

But OpenAI is trying to flip the responsibility of protecting copyrighted material to the intellectual property owners themselves. According to The Wall Street Journal, OpenAI is allowing copyrighted material in Sora by default, unless copyright holders opt out of the service.

The courts will have to decide if this novel approach to intellectual copyright law works, but government regulators may not be that big of a problem, as Altman has made sure OpenAI is in the good graces of the Trump administration. If OpenAI has to pay up to copyright holders after a lawsuit, what’s a few billion dollars here or there when you’re raising so much capital?

Yann Le Cun meta AI

Tension emerges between Meta’s AI teams

Discontent between Meta’s AI research teams is growing, according to a report by The Information, at a critical time for Meta’s effort to get back into the AI race.

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