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Apple to cut mini app commissions amid mounting regulatory pressure

Ana Mary Joseph
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Apple to cut mini app commissions amid mounting regulatory pressure
  • Reduction applies to developers who adopt Apple’s technology for declaring user age ranges, a system Apple touts as a privacy-friendly alternative amid debates over digital age verification.
  • UK’s Competition Appeal Tribunal’s decision exposes Apple to possible damages exceeding £1b, with a parallel complaint also pending before European antitrust regulators.

Apple Inc. announced it will reduce App Store commissions for “mini apps” on its devices, marking a significant shift as regulatory scrutiny intensifies on the company’s digital marketplace practices worldwide.

Under the newly unveiled program, Apple will cut its commission rate from up to 30 per cent to 15 per cent for developers of mini apps—smaller applications hosted within larger “host apps,” such as games or specialised services.

The reduction applies to developers who adopt Apple’s technology for declaring user age ranges, a system Apple touts as a privacy-friendly alternative amid debates over digital age verification.

Mini apps are widely used in China, where platforms like Tencent Holdings’ WeChat and Alipay house a broad array of services, but the format is rapidly catching on in the US. OpenAI, for instance, revealed last month it will launch mini apps within its flagship ChatGPT app.

While Apple collects commissions directly from mini app sales, the split between host and mini app developers remains at the discretion of the apps involved.

Regulatory and legal hurdles

The commission reduction comes as Apple faces mounting legal and regulatory challenges in the US, Europe, and the UK. In a recent blow, the UK’s Competition Appeal Tribunal (CAT) denied Apple’s request to appeal last month’s ruling that found it abused dominance by imposing excessive commissions on developers.

The CAT decision exposes Apple to possible damages exceeding £1 billion ($1.3 billion), with a parallel complaint also pending before European antitrust regulators.

Apple has the option to seek an appeal before the UK’s Court of Appeal within 21 days. A company spokesperson criticised the CAT’s decision, saying it “takes a flawed view of the thriving and competitive app economy” and overlooks consumer and developer benefits.

Meanwhile, regulatory debates over age verification requirements continue. Multiple US states, alongside companies such as Meta Platforms, advocate for marketplace-level age checks. Apple argues that such mandates risk adult privacy and prefers its own age declaration system, which involves user-supplied age ranges and, for minors, adult approval.

Industry impact

Last month’s CAT decision calculated potential developer damages at £1.2 billion, incorporating overcharges between a typical 30 per cent Apple commission and the lower 17.5 per cent rate suggested by the tribunal. Developers were found to have passed half the excess cost on to consumers.

Rachael Kent, the British academic leading the UK case, stated, “This case has been a marathon, not a sprint, but we are one step closer to App Store users finally seeing their money rightfully returned to their pockets.”

Apple’s revised commission policy could set a precedent for further changes as global regulators scrutinise digital platform fees—potentially reshaping the economics of app distribution.

Cybersecurity, data governance top internal audit plans for 2026

Mohammed Fahad
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Cybersecurity, data governance top internal audit plans for 2026
  • Organisations are forced to adapt quickly to maintain compliance, even as economic pressures and organisational change heighten the risk of misconduct.
  • Gartner identifies geopolitical volatility, cost reduction pressure, and resilience planning as persistent audit priorities for next year.

Internal audit teams across major organisations will prioritise cybersecurity vulnerabilities, data governance, and regulatory compliance in their 2026 audit plans, according to research from advisory firm Gartner, Inc.

The findings, published in Gartner’s “2026 Audit Plan Hot Spots” report, are based on a survey of 160 chief audit executives (CAEs) as well as interviews with IT audit leaders conducted between May and June 2025.

The report highlights the convergence of challenges posed by rapid advances in artificial intelligence (AI), global regulatory uncertainty, and mounting cost pressures facing organisations worldwide.

“The rapid rise of AI is driving acute issues for organisations in terms of cybersecurity, data governance and regulatory compliance,” said James Bourke, Director of Research in Gartner’s Assurance Practice.

“Internal audit teams are very likely to be covering these areas in their audit plans for 2026, although with muted confidence in their ability to provide assurance over cybersecurity and data governance risks given how rapidly these areas are evolving.”

Cybersecurity under strain

A staggering 96 per cent of CAEs surveyed have placed cybersecurity risks at the top of their assurance agenda for 2026. As organisations increasingly rely on third-party vendors and grapple with sophisticated threats—including AI-driven attacks and disinformation—internal auditors face an uphill battle.

“Cybersecurity is a major risk area, especially as organisations depend more on third-party vendors who can introduce vulnerabilities,” Bourke explained.

At the same time, overstretched cybersecurity teams face accelerating threat volumes. CAEs’ confidence reflects these challenges: less than half (48 per cent) say they are highly confident in their ability to provide full assurance over cybersecurity risks.

Audit teams will focus on evaluating organisational readiness for cyber threats, the robustness of security controls, and oversight over third-party relationships.

Emphasis will be on strengthening governance, integrated risk management, and strong control environments to mitigate operational and reputational risks.

Data governance faces new AI risks

Data governance is set to be another major focus, with 94 per cent of CAEs including it in their 2026 plans. The proliferation of AI-generated content has created new governance challenges, from managing data volume and classification to navigating a patchwork of global regulations around data localisation and sovereignty.

Gartner recommends that companies bolster their data governance with comprehensive AI policies, effective controls over retention and deletion of AI-generated outputs, and robust frameworks to prevent the misclassification or unauthorised access of sensitive information.

Regulatory compliance rounds out the top three areas, with coverage planned by 97 per cent of audit leaders. Amid shifting US policies and a deregulatory climate, organisations are being forced to adapt quickly to maintain compliance, even as economic pressures and organisational change heighten the risk of misconduct.

“Misconduct by employees, agents and third parties is more likely amid a weakening macroeconomic environment and organisational change,” Bourke warned.

Beyond these core areas, Gartner also identified geopolitical volatility, cost reduction pressure, and resilience planning as persistent audit priorities for next year.

LG Electronics India reports 27% drop in profit after tax

Mohammed Fahad
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LG Electronics India reports 27% drop in profit after tax
  • Home appliances and air solutions revenue drop slightly while home entertainment division registers an improvement.

LG Electronics India on Thursday reported a 27.3 per cent year-on-year decline in profit after tax (PAT) to Rs389 crore for the second quarter of FY26, down from Rs536 crore in the same quarter last year.

Margins and profitability came under pressure despite a marginal 1 per cent rise in operating revenue to Rs6,174 crore, highlighting headwinds across the electronics and consumer durables sector.

Faces soft demand

The company’s EBITDA fell sharply by 28 per cent to Rs547 crore for the period, with operating margins shrinking by 350 basis points to 8.9 per cent. Segment-wise, home appliances and air solutions revenue dropped slightly to Rs3,948 crore, whereas the home entertainment division registered an improvement to Rs2,226 crore.

The industry overall faced soft demand, as consumers deferred purchases until a GST rate cut on electronics took effect in late September .

Commenting on the results, Managing Director Hong Ju Jeon cited “macroeconomic headwinds, a cool summer, geopolitical challenges, tariffs, and forex fluctuations,” but emphasised that LG Electronics India still achieved “resilient sales growth, gaining market share and maintaining stable profitability.” He reaffirmed the company’s long-term commitment to the Indian market.

The results mark LG Electronics India’s first quarterly report following its high-profile market debut in October, when shares listed at a 50 per cent premium on the NSE at Rs1,710 and closed the day at Rs1,682.8, capping a blockbuster IPO that was oversubscribed 54 times .

Tencent cites AI chip shortages as cloud growth bottleneck

Ana Mary Joseph
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Tencent cites AI chip shortages as cloud growth bottleneck
  • Company says it will lower 2025 capex guidance compared with previous forecasts, though spending will still exceed 2024 levels
  • Tencent posted Q3 revenue of 192.9 billion yuan, buoyed by a 15% rise in domestic gaming revenue and a 43% surge in global gaming, as well as a 21% jump in advertising driven by AI-enhanced targeting.

Tencent Holdings said on Thursday that a shortage of advanced artificial intelligence chips is limiting the expansion of its cloud business, as China’s tech giants feel the strain of ongoing US export restrictions.

Following strong third-quarter results, Tencent President Martin Lau acknowledged that supply constraints mean the company is allocating available AI compute power first to internal AI initiatives, rather than renting it out to external clients.

“One constraint of the cloud business growth is the availability of AI chips. When AI chips are actually in short supply, we actually prioritise internal use,” Lau said in a post-earnings call.

He added, “If there is not an AI chip supply constraint, our cloud revenue should be growing more,” highlighting the impact of tightened US rules affecting supplies from top vendors such as Nvidia .

Tencent posted Q3 revenue of 192.9 billion yuan ($27.08 billion), buoyed by a 15 per cent rise in domestic gaming revenue and a 43 per cent surge in global gaming, as well as a 21 per cent jump in advertising driven by AI-enhanced targeting.

Bets big on AI

Net profit climbed well above analyst estimates to 63.1 billion yuan. The company did not break out individual cloud results, but the broader FinTech and Business Services segment, which includes cloud, grew 10 per cent.

Tencent’s capital expenditure for the quarter totaled 13 billion yuan ($1.83 billion), down 24 per cent year-on-year. The company signaled it will lower 2025 capex guidance compared with previous forecasts, though spending will still exceed 2024 levels. AI-focused investments are expected to account for a “low teens” percentage of revenue next year.

Facing intensifying local competition, Tencent has bet big on AI as the next growth engine, integrating advanced models—including DeepSeek’s—across platforms like WeChat and launching Yuanbao, a leading ChatGPT-style AI assistant.

The company’s efforts underscore both the transformative promise and logistical hurdles of large-scale AI adoption in the current geopolitical environment.

Baidu unveils two AI chips amid US export curbs

Ana Mary Joseph
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Baidu unveils two AI chips amid US export curbs
  • Expected to offer Chinese firms greater control over their computing infrastructure as global tensions reshape the technology supply chain.
  • Baidu is now positioning these latest chips as alternatives to US-designed hardware now subject to tightened export rules.
  • Baidu also revealed two “supernode” products leveraging advanced networking to connect hundreds of processors for high-performance AI workloads.

Baidu has introduced two new artificial intelligence semiconductors, the M100 and M300, in a bid to supply Chinese enterprises with powerful and cost-effective AI compute options amid continued US export restrictions.

Announced Thursday at the Baidu World technology conference, these domestically developed chips are expected to offer Chinese firms greater control over their computing infrastructure as global tensions reshape the technology supply chain.

The M100, focused on AI inference, will launch in early 2026, while the more versatile M300, designed for both training and inference, is slated for early 2027. Having developed its own processors since 2011, Baidu is now positioning these latest chips as alternatives to US-designed hardware now subject to tightened export rules.

Domestic innovation

In addition to the new AI chips, Baidu revealed two “supernode” products leveraging advanced networking to connect hundreds of processors for high-performance AI workloads.

The Tianchi 256 supernode, built from 256 of Baidu’s P800 chips, will debut in the first half of next year, with a 512-chip version to follow in the second half. Supernodes are seen as a way to compensate for individual chip limitations and compete with industry leaders—including Huawei’s CloudMatrix 384 and Nvidia’s recently released GB200 NVL72.

Baidu also showcased the latest version of its Ernie large language model, highlighting expanded capabilities in text, image, and video analysis, as the company races to stay at the forefront of China’s competitive AI landscape.

The moves come as China accelerates efforts to localise its tech supply chain, bolstered by state and industry pressure on domestic innovation. Baidu’s announcements signal both resilience and ambition in the face of ongoing chip trade restrictions, as the company aims to establish itself as a key supplier of next-generation AI silicon for the Chinese market.

Tuta warns users against installing OpenAI’s Atlas AI browser

Naushad K. Cherrayil
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Tuta warns users against installing OpenAI’s Atlas AI browser
  • Atlas can access, read, and remember activity across logged‑in sites—including email and banking—by building persistent “memories” of browsing sessions when users grant permissions.
  • Atlas is useful for automation but potentially over‑permissive in data capture and susceptible to malicious page‑level instructions.

German encrypted email provider Tuta urged users to avoid installing OpenAI’s new Atlas AI browser, arguing the ChatGPT‑integrated app amasses extensive behavioural data and introduces novel attack surfaces that could outweigh its convenience features.

In a detailed advisory, Tuta said Atlas can access, read, and remember activity across logged‑in sites—including email and banking—by building persistent “memories” of browsing sessions when users grant permissions.

The company said those capabilities make it difficult for consumers to control what is stored or forgotten, and warned that “Incognito” mode is not truly private because interactions may still be visible to ChatGPT and third parties, with chats retained for 30 days for abuse detection.

Tuta also highlighted OpenAI’s US jurisdiction and temporary data retention even after deletion, and pointed to “Agent mode” as an additional risk area given prompt‑injection and phishing vulnerabilities observed in agentic browsers.

Data collection

OpenAI introduced Atlas as an AI‑powered alternative to mainstream browsers that can summarise content, compare products, analyse data, and execute tasks directly on web pages. Tuta framed those features as a double‑edged sword—useful for automation but potentially over‑permissive in data capture and susceptible to malicious page‑level instructions.

The firm consolidated its objections into five primary reasons to “think twice” before using Atlas until stronger safeguards and clearer data controls are in place.

Tuta referenced industry research suggesting agent browsers may be more vulnerable to phishing than traditional clients and cited demonstrations indicating AI agents can retain sensitive contextual information from browsing sessions. The company also cautioned that future product changes, such as advertising, could expand the use of collected data.

OpenAI has positioned Atlas as a productivity tool that personalises the web experience by remembering user preferences and completing tasks on their behalf.

The company says Atlas is not intended to store sensitive credentials. Tuta, however, argues current guardrails are insufficient and that users cannot reliably constrain what AI agents remember in practice.

What’s next

  • User adoption and enterprise policies: The warning may prompt privacy‑conscious users and regulated organisations to pause deployment pending clearer controls and third‑party audits.
  • Regulatory scrutiny: Atlas’s data practices and “agent mode” could draw attention from EU data protection authorities and consumer watchdogs, particularly around consent, retention, and cross‑border transfers.
  • Competitive responses: Browser makers with privacy positioning may seek to differentiate with stricter permissions, on‑device memory, or agent isolation by default.
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