Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

Apple has lost its attempt to dismiss an antitrust lawsuit filed by the U.S. Department of Justice (DOJ) and state attorneys general, marking a significant victory for the Biden administration's aggressive enforcement stance, which has been carried on by enforcers under President Trump. The lawsuit accused the company of blocking competitors from accessing essential features on its devices. U.S. District Judge Julien Xavier Neals said that “allegations of this nature . . . are sufficient” to proceed. The case, filed in March 2024, could lead to years of litigation, with the DOJ asserting that Apple has deliberately created barriers to stifle competition. While Apple’s lawyers argued that the case lacks evidence of consumer harm, the judge ruled that the claims can move forward, indicating a complex legal battle ahead.

 

Los Angeles Times

Reuters

Responsible AI Starts Here: The Executive Guide to Azure OpenAI

As AI adoption accelerates, one question looms large for senior leaders: how do you unlock its full potential without exposing your business to unnecessary risk?

Securing Microsoft Azure OpenAI  - normally $44, download at no cost while this offer lasts - created to help leaders safely and confidently deploy AI at scale. It offers practical insights into using GPT-4o, DALL·E, and other advanced models securely within Microsoft Azure’s enterprise-grade environment.

Inside the guide:

• Best practices for responsible AI integration
• Risk mitigation strategies every business should know
• Real-world use cases across sectors
• Privacy, compliance, and governance essentials

If your organization is exploring AI at scale, this is essential reading for building trust, control, and competitive edge.

Download now and future-proof your AI strategy

 

U.S. government officials have issued a warning that Iranian-affiliated hackers may target American companies and critical infrastructure, particularly those linked to Israeli defense firms. Although there is currently no evidence of a coordinated cyber campaign, agencies including the FBI and NSA are advising organizations to bolster their cybersecurity measures. The advisory highlights the potential for malicious cyber activity despite ongoing negotiations for a ceasefire, and notes that Iranian state-sponsored hackers often exploit vulnerabilities in outdated software and weak passwords.

 

Reuters

The International Criminal Court (ICC) has reported a “sophisticated and targeted” cyber attack, prompting immediate measures to limit damage. The ICC said: "A Court-wide impact analysis is being carried out and steps are already being taken to mitigate any effects of the incident." This attack follows a previous incident in 2023 and occurred during a week when The Hague hosted a NATO summit, raising concerns about security. The ICC currently has ongoing high-profile investigations, including those related to Russian war crimes in Ukraine, and has previously faced espionage attempts. The court has not confirmed whether any confidential information was compromised, and it continues to deal with the repercussions of the attack. WiFi services are still not fully restored.

 

ABC News

The Independent

Tech companies Google and Palo Alto Networks have raised concerns about the "Scattered Spider" hacking group targeting the aviation sector amid reports of cyber incidents affecting airlines including Hawaiian Airlines and WestJet. Executives from both companies noted that they have observed multiple attacks resembling the group's tactics, although specific details about the incidents remain undisclosed. Scattered Spider has previously targeted major companies including MGM Resorts and Caesars Entertainment, causing significant operational disruptions.

 

Reuters

Google is to purchase power from a planned fusion power plant in the 2030s in only the second electricity offtake deal to be signed in the nascent fusion energy sector. The Alphabet-owned company has signed what it called the technology's first direct corporate power purchase agreement with Commonwealth Fusion Systems, a company that spun off from the Massachusetts Institute of Technology in 2018. “It’s a pretty big signal to the market that fusion’s coming. It’s desirable, and that people are gonna work together to make it happen,” CFS co-founder and chief executive Bob Mumgaard said about the deal.

 

Financial Times

Wall Street Journal

Aon chief executive Greg Case has called for $1trn in private capital to enter the insurance sector over the next decade to address increasing coverage gaps for natural disasters and cyber threats. Speaking to the Financial Times, Case said: “If we don't bring in a trillion dollars in alternative capital in the next decade, we've failed.” The insurance industry is under pressure from rising climate-related losses and a surge in cyber incidents, with Aon noting that since 2000, less than one-third of global natural catastrophe costs have been covered. In 2024, economic losses from natural disasters reached $223m, with only $145bn insured. Aon anticipates that alternative capital investment will double in the next five years, driven by investor appetite and demand from companies facing reduced capacity from traditional insurers. Case emphasised the importance of transparency and understanding risk to bolster investor confidence.

 

Insurance Business Magazine America

The dairy industry was caught off guard by bird flu's jump to cattle, Scientific American reports. "Spillovers of viruses is not something that happens on a daily basis. There are many factors that have to align and be in place for that to happen," observes Diego Diel, who leads the Virology Lab at Cornell’s Animal Health Diagnostic Center. He says: "given what we have seen so far, this virus is likely to continue to circulate in dairy cows. The continuous circulation of the virus in mammals can lead to mutations that will make this virus more adapted to the human receptor. That could increase the risk of infection in humans, severity of disease in humans and the potential transmissibility of the virus from human to human."

 

Scientific American

Satellite Chemical USA and Vinmar International have received letters from the U.S. government permitting them to load ethane for China but prohibiting its unloading without further authorisation, following a recent licensing requirement that has stalled shipments. The situation has led to concerns over domestic oversupply and potential profit reductions for US ethane producers. Around half of all U.S. ethane exports are directed to China.

 

Reuters

London's Competition Appeal Tribunal has ruled that Visa and Mastercard's multilateral interchange fees violate European competition law. Both companies plan to appeal the decision. Visa asserts that interchange fees are essential for a secure digital payments ecosystem. David Scott, global managing partner of law firm Scott+Scott, said: "This ruling is a significant win for all merchants who have been paying excessive interchange fees."

 

Reuters

Ripple Labs CEO Brad Garlinghouse has said the crypto firm is to drop its cross appeal against the Securities and Exchange Commission. The regulator had sued Ripple for allegedly violating securities laws through the sale of its XRP tokens. In 2023, a judge ruled that XRP sales on public exchanges were legal, but the $728m of sales to institutional investors broke the rules. "We're closing this chapter once and for all," Garlinghouse wrote in a post on X, adding that the SEC is also expected to drop the appeal that it had filed.

 

Reuters

Target is testing new smartphone-based technology that allows store shelves to be locked and unlocked digitally, aiming to reduce theft and improve the customer experience. This system will enable staff, Shipt delivery workers, and paid members to access locked cases more efficiently than using physical keys. Shoplifting has driven many retailers, including Target, to lock more items, but this can frustrate customers and burden employees. Similar tools have been explored by competitors, including Walmart.

 

Bloomberg

Prada has acknowledged the ancient Indian roots of its new sandal design after the debut of the open-toe footwear sparked controversy among artisans and politicians in India. At its fashion show in Milan last weekend, the luxury group showed models wearing leather sandals with a braided design that resembled handmade Kolhapuri slippers with designs dating back to the 12th century. A wave of criticism in the media and from lawmakers followed over the Italian brand's lack of public acknowledgement of the Indian sandal design, which is named after a city in the western state of Maharashtra. Lorenzo Bertelli has written to the Maharashtra Chamber of Commerce to address the matter, saying: "We acknowledge that the sandals . . . are inspired by traditional Indian handcrafted footwear, with a centuries-old heritage." Sambhaji Chhatrapati from the Kolhapur Royal family had previously said he was upset that craftsmen had not been acknowledged for the "history and heritage of 150 years."

 

Reuters