2080����

Good afternoon,

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

ECOMMERCE

• 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.

• 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.

• 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.

• 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

‍

• 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

‍

• 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.

• 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 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 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.

• 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 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 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 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 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 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 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 2080���� Team

‍

Sign up below to get Coffee & Commerce delivered to your inbox each week.