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UK Watchdog Pushes for Google AI Opt-Out

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The U.K.’s Competition and Markets Authority this week proposed a series of measures that would allow companies to opt out of having their content used for Google’s AI overviews. 

The proposal, announced Wednesday, comes as part of a series of suggestions from the CMA to help chip away at Google’s monopoly over the U.K.’s online search market. 

Google search accounts for more than 90% of general search queries in the U.K., according to the watchdog. More than 200,000 British companies collectively spent more than £10 billion (about $13.7 billion) on Google’s search advertising last year.

“These services matter to the U.K.’s economy and society — so it is vital that competition works well,” the CMA’s announcement said.

The CMA proposed measures including publisher controls — allowing publishers “meaningful choice” over how their content is used to power or train AI. It also called for more transparency around the process of data scraping and proper attributions of original content for AI summaries.

Related:New York Signs off on AI Safety Legislation

Under the measures, Google would be required to demonstrate it fairly ranks search results to the CMA, including in its AI Overviews and AI Mode.

The proposals also suggested Google could make it easier for people to switch their default search engine by requiring choice screens on Android devices and the Chrome browser.

“These actions would give U.K. businesses and consumers more choice and control over how they interact with Google’s search services — as well as unlocking greater opportunities for innovation across the U.K. tech sector and broader economy,” Sarah Cardell, chief executive of the CMA, said in the statement. 

Will Hayter, the CMA’s executive director for digital markets, wrote in a separate blog post that the measures are intended to support “innovation and growth” for the U.K.’s content publishers. 

“This is an important milestone, as these are the first set of conduct requirements under the digital markets competition regime,” he added. 

The watchdog said it will be deliberating on the proposals following a feedback consultation period, which ends Feb. 25.

The news comes as media outlets report a dip in click-through traffic, which affects revenue, since Google began posting AI summaries. A report released by the Reuters Institute for the Study of Journalism this month found that media leaders anticipated search engine referrals could fall by as much as 43% over the next three years as a result of AI.

Until now, sites have been unable to opt out of being included in these AI summaries without also forfeiting their inclusion in Google search more widely. 

Related:US Government Seeks Tech Talent

The instance is also not the first time Google has been called out for monopolizing the market. 

In 2020, the tech giant was sued by the U.S. Department of Justice over its control of about 90% of the online search market. In the last two years, two U.S. judges in Washington and Virginia separately ruled Google acted illegally to maintain its control by squashing competition. 

Coinbase Insider Trading Lawsuit Against Armstrong, Andreessen Move Forward

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A Delaware judge has allowed a shareholder lawsuit accusing several Coinbase directors of insider trading to proceed, despite an internal investigation that cleared the executives of wrongdoing.

The case, filed by a Coinbase shareholder in 2023, alleges that company directors, including CEO Brian Armstrong and board member Marc Andreessen, used confidential information to sidestep more than $1 billion in losses by selling shares around the company’s public debut in 2021. According to the complaint, insiders sold more than $2.9 billion worth of stock, with Armstrong personally offloading about $291.8 million.

On Friday, Delaware Chancery Court Judge Kathaleen St. J. McCormick rejected a request to dismiss the suit following a probe by a special litigation committee formed by Coinbase, Bloomberg Law reported. While the judge noted that the committee’s findings present a strong defense for the directors, she ruled that questions surrounding the independence of one committee member were enough to keep the case alive, per the report.

The claims center on Coinbase’s decision to go public through a direct listing rather than a traditional initial public offering (IPO). Unlike an IPO, the direct listing did not include a lockup period, allowing existing shareholders to sell immediately, nor did it involve issuing new shares that could dilute ownership.

Related: Coinbase launches prediction markets in all 50 US states via Kalshi

Andreessen accused of selling $118 million in Coinbase shares

Andreessen, who joined Coinbase’s board in 2020, is accused of selling roughly $118.7 million in shares through his venture firm, Andreessen Horowitz. The plaintiff alleges the directors knew Coinbase’s valuation was inflated and sold stock to avoid subsequent losses.

Coinbase shares sold by directors after listing. Source: Lawsuit

Coinbase and the defendants have denied the allegations, arguing there is no evidence they possessed or acted on material nonpublic information. Coinbase reportedly told Bloomberg Law that it was “disappointed by the court’s decision” and vowed to continue fighting the “meritless claims.”

The lawsuit was paused last year while the special litigation committee conducted a 10-month review. The committee ultimately recommended ending the case, concluding the sales were limited and largely aimed at providing sufficient liquidity for the direct listing. It also argued Coinbase’s share price closely tracked Bitcoin (BTC)’s movements, rejecting claims the trades were driven by insider knowledge.

However, the shareholder challenged the committee’s independence, pointing to past business ties between committee member Gokul Rajaram and Andreessen’s firm. McCormick agreed that those connections raised legitimate concerns, but acknowledged there was no suggestion of bad faith.

Cointelegraph reached out to Coinbase for comment, but had not received a response by publication.

Related: Coinbase, JPMorgan CEOs clashed over market structure bill at Davos: Report

Coinbase faces new insider trading allegations

Meanwhile, new allegations of insider trading have surfaced after crypto researchers claimed certain traders may have profited from advance knowledge of token listings on Coinbase. The claims suggest that blockchain data and technical signals may have been used to anticipate which assets the exchange was preparing to list, allowing some market participants to trade ahead of public announcements.