GlobalFoundries faces a $500,000 fine from the US Commerce Department for breaching export controls by shipping $17.1 million worth of chips to SJ Semiconductor (SJS), a blacklisted Chinese firm affiliated with Semiconductor Manufacturing International Corporation (SMIC). The company made 74 unauthorized shipments between February 2021 and October 2022, delivering nearly 5,700 wafers. The chipmaker attributed the violation to a data entry error in its Oracle trade management system, where SJS was incorrectly recorded under a direct customer's shipping details. While SJS had previously handled GlobalFoundries' chips as a third-party assembly provider, both SJS and SMIC were placed on the Entity List in 2020 due to suspected military ties.

GlobalFoundries received a significantly reduced fine due to its voluntary disclosure and cooperation avoiding a potential fine of up to $34.2 million. "GlobalFoundries' voluntary self-disclosure (VSD) and extensive cooperation throughout the investigation resulted in a significant reduction in the monetary penalty, which is the main incentive of our VSD policies," said John Sonderman, director of the Office of Export Enforcement (OEE) within the Commerce Department. The incident comes as the company anticipates $1.5 billion in CHIPS Act funding for manufacturing expansion. For comparison, the department previously fined Seagate $300 million in April 2023 for shipping $1.1 billion worth of drives to Huawei.

Epic Games, the developer behind the battle royale game Fortnite, has been slapped with a hefty fine of €1.1 million for violating EU consumer laws and pressuring youngsters into making in-game purchases. This decision was made by the Dutch Authority for Consumers and Markets (ACM) following an investigation into the company's practices. The ACM found that Epic Games had failed to provide clear information about the nature of its in-game purchases, particularly to children. This lack of transparency led to many young players making unintended purchases, which was a clear violation of EU consumer protection laws. The authority also noted that Epic Games' practices were designed to encourage children to make frequent purchases, which further deepens the issue. Netherlands' ACM claims that these were "dark patterns" which are prohibited in the EU. More specifically, these were "Get it now" or "Buy now" phrases that pushed youngsters into making choices. One fine is for illegal aggressive commercial practice that created fear of missing out (FOMO), which is calculated at €562,500. Another €562,500 is fined on countdown timers, which were used in the Item Shop for items that were still available even after the timer had reached zero. This totals €1.125 million.

In response to the fine, Epic Games has announced its intention to appeal the decision. This fine serves as a significant reminder to game developers of the importance of transparency and consumer protection in the gaming industry. As the popularity of online gaming continues to grow, companies must prioritize the well-being and financial security of their young players. The ACM's decision sends a strong message that such practices will not be tolerated and that companies must take responsibility for their actions. The fine is significant, and it will be interesting to see how Epic Games responds to the decision. In a statement for GameIndustry.biz, Epic Games has noted that "The findings in the ACM's decision contain significant factual errors about how Fortnite and the Item Shop operate. The ACM is mandating changes that would result in a poor experience for players. We will appeal this decision. While our appeal is pending, players in the Netherlands that are under the age of 18 will not be able to see or purchase items that are in the shop for less than 48 hours, beginning May 24, 2024."

The open-source Yuzu Switch Emulator attracted immediate Nintendo attention, around The Legend of Zelda: Tears of the Kingdom's launch window. Last Monday, news reports put many spotlights on freshly-filed legal documentation—the Japanese multinational video game firm's North American office took Tropic Haze LLC to court in Rhode Island. The aforementioned limited liability company created and distributed Yuzu and Citra—Switch and 3DS software emulators (respectively). Nintendo's lawsuit claimed that Tropic Haze's Yuzu software illegally circumvents their software encryption, and played a significant role in facilitating piracy "at a colossal scale." A prime example was presented in the case of Tears of the Kingdom—allegedly over one million illicit digital copies were distributed prior to its official retail release. The lawsuit proposed that "defendant (Tropic Haze) is thus secondarily liable for the infringement committed by the users to whom it distributes Yuzu."

According to a new filing, Tropic Haze has agreed to cease all operations and pay Nintendo $2.4 million in damages. This swift announcement arrived much earlier than expected—Yuzu's developer reportedly "lawyered up" late last week. According to Eurogamer: "over the weekend, Tropic Haze announced it had retained the legal services of an attorney and would be responding Nintendo's lawsuit within 60 days, but a new filing has now been spotted confirming both parties have reached a settlement—pending the court's final approval." A permanent injunction prevents Tropic Haze from: "offering to the public, providing, marketing, advertising, promoting, selling, testing, hosting, cloning, distributing, or otherwise trafficking in Yuzu or any source code or features of Yuzu." This order seemingly extends to Citra (their 3DS emulator): "other software or devices that circumvent Nintendo's technical protection measures." Tropic Haze has been ordered to surrender its website domains and turn in all held physical circumvention devices. Yuzu creators are required to not establish "new entities or associations to develop similar Nintendo emulation software" in the future. Open-source "Nuzu" and "Suyu" follow-ups/spiritual successors have already popped up online.

The European Commission has re-imposed a fine of around €376.36 million on Intel for a previously established abuse of dominant position in the market for computer chips called x86 central processing units ('CPUs'). Intel engaged in a series of anticompetitive practices aimed at excluding competitors from the relevant market in breach of EU antitrust rules.

With today's decision, we are re-imposing a €376.36 million fine on Intel for having abused its dominant position in the computer chips market. Intel paid its customers to limit, delay or cancel the sale of products containing computer chips of its main rival. This is illegal under our competition rules. Our decision shows the Commission's commitment to ensure that very serious antitrust breaches do not go unsanctioned. - Commissioner Didier Reynders, in charge of competition policy

At Xbox, we have the fundamental commitment to provide all players with a safe and secure experience on our platform - and this is especially true for our youngest players. We frequently iterate on our safety measures, in collaboration and with feedback from the community, regulators and partners. We recently entered into a settlement with the U.S. Federal Trade Commission (FTC) to update our account creation process and resolve a data retention glitch found in our system. Regrettably, we did not meet customer expectations and are committed to complying with the order to continue improving upon our safety measures. We believe that we can and should do more, and we'll remain steadfast in our commitment to safety, privacy, and security for our community.

Our two decades of safety experience has taught us that all players want, and need, safety and privacy protections. Since 2005, when we launched the first console that could connect players online, we've continued to invest in tools and technologies to protect our community. That work evolved into a multifaceted safety strategy. Our suite of safety, privacy and security measures are designed to respect player privacy and safety, and empower players, as well as parents and caregivers, to have control over their gaming experiences.

US authorities have imposed a $300 million penalty on Seagate Technology Holdings plc, a market leader in data storage solutions, for an alleged violation of export controls. The US Commerce Department has investigated the California-based company's business dealings with Chinese hardware firm Huawei Technologies Co. Limited, specifically for the sale of hard disk drives to operations within mainland China. It has found that Seagate has broken the "foreign direct product (FDP) rule" that was established by the US Government back in 2020. Seagate is said to have sold approximately 7.4 million hard drive units to Huawei after the period in which the new rulings took effect - the total value of these shipments was estimated in the region of $1.1 billion.

The US government's serving of a civil penalty to Seagate appears to be part of a larger drive to prevent North American tech companies from selling advanced computer equipment to Chinese firms. Two other suppliers (not named) of storage solutions had agreed to the government imposed terms and ceased trade with Huawei in 2020. In contrast, Seagate has seemingly become a record breaking heretic according to a statement released yesterday by the Bureau of Industry (BIS) and Security: "This historic foreign direct product enforcement case and settlement represents the largest standalone administrative penalty in BIS history. Today's resolution also includes a multi-year audit requirement and a five-year suspended Denial Order. In August 2020, the Bureau of Industry and Security imposed controls over certain foreign-produced items related to Huawei. Despite this, in September 2020, Seagate announced it would continue to do business with Huawei. Seagate did so despite the fact that its only two competitors had stopped selling HDDs to Huawei, resulting in Seagate becoming Huawei's sole source provider of HDDs."