Android

Unless Users Take Action, Android Will Let Gemini Access Third-Party Apps (arstechnica.com) 74

Google is implementing a change that will enable its Gemini AI engine to interact with third-party apps, such as WhatsApp, even when users previously configured their devices to block such interactions. ArsTechnica: Users who don't want their previous settings to be overridden may have to take action. An email Google sent recently informing users of the change linked to a notification page that said that "human reviewers (including service providers) read, annotate, and process" the data Gemini accesses.

The email provides no useful guidance for preventing the changes from taking effect. The email said users can block the apps that Gemini interacts with, but even in those cases, data is stored for 72 hours. The email never explains how users can fully extricate Gemini from their Android devices and seems to contradict itself on how or whether this is even possible.

The Courts

Samsung and Epic Games Call a Truce In App Store Lawsuit (arstechnica.com) 12

An anonymous reader quotes a report from Ars Technica: Epic Games, buoyed by the massive success of Fortnite, has spent the last few years throwing elbows in the mobile industry to get its app store on more phones. It scored an antitrust win against Google in late 2023, and the following year it went after Samsung for deploying "Auto Blocker" on its Android phones, which would make it harder for users to install the Epic Games Store. Now, the parties have settled the case just days before Samsung will unveil its latest phones.

The Epic Store drama began several years ago when the company defied Google and Apple rules about accepting outside payments in the mega-popular Fortnite. Both stores pulled the app, and Epic sued. Apple emerged victorious, with Fortnite only returning to the iPhone recently. Google, however, lost the case after Epic showed it worked behind the scenes to stymie the development of app stores like Epic's. Google is still working to avoid penalties in that long-running case, but Epic thought it smelled a conspiracy last year. It filed a similar lawsuit against Samsung, accusing it of implementing a feature to block third-party app stores. The issue comes down to the addition of a feature to Samsung phones called Auto Blocker, which is similar to Google's new Advanced Protection in Android 16. It protects against attacks over USB, disables link previews, and scans apps more often for malicious activity. Most importantly, it blocks app sideloading. Without sideloading, there's no way to install the Epic Games Store or any of the content inside it.

Auto Blocker is enabled by default on Samsung phones, but users can opt out during setup. Epic claimed in its suit that the sudden inclusion of this feature was a sign that Google was working with Samsung to stand in the way of alternative app stores again. Epic has apparently gotten what it wanted from Samsung -- CEO Tim Sweeney has announced that Epic is dropping the case in light of a new settlement.
Sweeney said Samsung "will address Epic's concerns," without elaborating on the details. Samsung may stop making Auto Blocker the default or create a whitelist of apps, like the Epic Games Store, that can bypass Auto Blocker. Another possibility is that Epic and select third-party stores are granted special access while Auto Blocker remains on for others, balancing security and openness.

A "more interesting outcome," according to Ars, would be for Samsung to pre-install the Epic Games Store on its new phones.
Google

OpenAI Says It Has No Plan To Use Google's In-house Chip (reuters.com) 3

An anonymous reader shares a report: OpenAI said it has no active plans to use Google's in-house chip to power its products, two days after Reuters and other news outlets reported on the AI lab's move to turn to its competitor's artificial intelligence chips to meet growing demand.

A spokesperson for OpenAI said on Sunday that while the AI lab is in early testing with some of Google's tensor processing units (TPUs), it has no plans to deploy them at scale right now.

AI

Google DeepMind's Spinoff Company 'Very Close' to Human Trials for Its AI-Designed Drugs (fortune.com) 40

Google DeepMind's chief business officer says Alphabet's drug-discovery company Isomorphic Labs "is preparing to launch human trials of AI-designed drugs," according to a report in Fortune, "pairing cutting-edge AI with pharma veterans to design medicines faster, cheaper, and more accurately." "There are people sitting in our office in King's Cross, London, working, and collaborating with AI to design drugs for cancer," said Colin Murdoch [DeepMind's chief business officer and president of Isomorphic Labs]. "That's happening right now."

After years in development, Murdoch says human clinical trials for Isomorphic's AI-assisted drugs are finally in sight. "The next big milestone is actually going out to clinical trials, starting to put these things into human beings," he said. "We're staffing up now. We're getting very close."

The company, which was spun out of DeepMind in 2021, was born from one of DeepMind's most celebrated breakthroughs, AlphaFold, an AI system capable of predicting protein structures with a high level of accuracy. Interactions of AlphaFold progressed from being able to accurately predict individual protein structures to modeling how proteins interact with other molecules like DNA and drugs. These leaps made it far more useful for drug discovery, helping researchers design medicines faster and more precisely, turning the tool into a launchpad for a much larger ambition... In 2024, the same year it released AlphaFold 3, Isomorphic signed major research collaborations with pharma companies Novartis and Eli Lilly. A year later, in April 2025, Isomorphic Labs raised $600 million in its first-ever external funding round, led by Thrive Capital. The deals are part of Isomorphic's plan to build a "world-class drug design engine..."

Today, pharma companies often spend millions attempting to bring a single drug to market, sometimes with just a 10% chance of success once trials begin. Murdoch believes Isomorphic's tech could radically improve those odds. "We're trying to do all these things: speed them up, reduce the cost, but also really improve the chance that we can be successful," he says. He wants to harness AlphaFold's technology to get to a point where researchers have 100% conviction that the drugs they are developing are going to work in human trials. "One day we hope to be able to say — well, here's a disease, and then click a button and out pops the design for a drug to address that disease," Murdoch said. "All powered by these amazing AI tools."

AI

Is China Quickly Eroding America's Lead in the Global AI Race? (msn.com) 136

China "is pouring money into building an AI supply chain with as little reliance on the U.S. as possible," reports the Wall Street Journal.

And now Chinese AI companies "are loosening the U.S.'s global stranglehold on AI," reports the Wall Street Journal, "challenging American superiority and setting the stage for a global arms race in the technology." In Europe, the Middle East, Africa and Asia, users ranging from multinational banks to public universities are turning to large language models from Chinese companies such as startup DeepSeek and e-commerce giant Alibaba as alternatives to American offerings such as ChatGPT... Saudi Aramco, the world's largest oil company, recently installed DeepSeek in its main data center. Even major American cloud service providers such as Amazon Web Services, Microsoft and Google offer DeepSeek to customers, despite the White House banning use of the company's app on some government devices over data-security concerns.

OpenAI's ChatGPT remains the world's predominant AI consumer chatbot, with 910 million global downloads compared with DeepSeek's 125 million, figures from researcher Sensor Tower show. American AI is widely seen as the industry's gold standard, thanks to advantages in computing semiconductors, cutting-edge research and access to financial capital. But as in many other industries, Chinese companies have started to snatch customers by offering performance that is nearly as good at vastly lower prices. A study of global competitiveness in critical technologies released in early June by researchers at Harvard University found China has advantages in two key building blocks of AI, data and human capital, that are helping it keep pace...

Leading Chinese AI companies — which include Tencent and Baidu — further benefit from releasing their AI models open-source, meaning users are free to tweak them for their own purposes. That encourages developers and companies globally to adopt them. Analysts say it could also pressure U.S. rivals such as OpenAI and Anthropic to justify keeping their models private and the premiums they charge for their service... On Latenode, a Cyprus-based platform that helps global businesses build custom AI tools for tasks including creating social-media and marketing content, as many as one in five users globally now opt for DeepSeek's model, according to co-founder Oleg Zankov. "DeepSeek is overall the same quality but 17 times cheaper," Zankov said, which makes it particularly appealing for clients in places such as Chile and Brazil, where money and computing power aren't as plentiful...

The less dominant American AI companies are, the less power the U.S. will have to set global standards for how the technology should be used, industry analysts say. That opens the door for Beijing to use Chinese models as a Trojan horse for disseminating information that reflects its preferred view of the world, some warn.... The U.S. also risks losing insight into China's ambitions and AI innovations, according to Ritwik Gupta, AI policy fellow at the University of California, Berkeley. "If they are dependent on the global ecosystem, then we can govern it," said Gupta. "If not, China is going to do what it is going to do, and we won't have visibility."

The article also warns of other potential issues:
  • "Further down the line, a breakdown in U.S.-China cooperation on safety and security could cripple the world's capacity to fight future military and societal threats from unrestrained AI."
  • "The fracturing of global AI is already costing Western makers of computer chips and other hardware billions in lost sales... Adoption of Chinese models globally could also mean lost market share and earnings for AI-related U.S. firms such as Google and Meta."

EU

EU Sticks With Timeline For AI Rules (reuters.com) 25

Reuters: The European Union's landmark rules on AI will be rolled out according to the legal timeline in the legislation, the European Commission said on Friday, dismissing calls from some companies and countries for a pause.

Google owner Alphabet, Facebook owner Meta and other U.S. companies as well as European businesses such as Mistral and ASML have in recent days urged the Commission to delay the AI Act by years.
Financial Times adds: In an open letter, seen by the Financial Times, the heads of 44 major firms on the continent called on European Commission President Ursula von der Leyen to introduce a two-year pause, warning that unclear and overlapping regulations are threatening the bloc's competitiveness in the global AI race.

[...] The current debate surrounds the drafting of a "code of practice," which will provide guidance to AI companies on how to implement the act that applies to powerful AI models such as Google's Gemini, Meta's Llama and OpenAI's GPT-4. Brussels has already delayed publishing the code, which was due in May, and is now expected to water down the rules.

The Almighty Buck

Wells Fargo Scandal Pushed Customers Toward Fintech, Says UC Davis Study (nerds.xyz) 18

BrianFagioli shares a report from NERDS.xyz: A new academic study has found that the 2016 Wells Fargo scandal pushed many consumers toward fintech lenders instead of traditional banks. The research, published in the Journal of Financial Economics, suggests that it was a lack of trust rather than interest rates or fees that drove this behavioral shift. Conducted by Keer Yang, an assistant professor at the UC Davis Graduate School of Management, the study looked closely at what happened after the Wells Fargo fraud erupted into national headlines. Bank employees were caught creating millions of unauthorized accounts to meet unrealistic sales goals. The company faced $3 billion in penalties and a massive public backlash.

Yang analyzed Google Trends data, Gallup polls, media coverage, and financial transaction datasets to draw a clear conclusion. In geographic areas with a strong Wells Fargo presence, consumers became measurably more likely to take out mortgages through fintech lenders. This change occurred even though loan costs were nearly identical between traditional banks and digital lenders. In other words, it was not about money. It was about trust. That simple fact hits hard. When big institutions lose public confidence, people do not just complain. They start moving their money elsewhere.

According to the study, fintech mortgage use increased from just 2 percent of the market in 2010 to 8 percent in 2016. In regions more heavily exposed to the Wells Fargo brand, fintech adoption rose an additional 4 percent compared to areas with less exposure. Yang writes, "Therefore it is trust, not the interest rate, that affects the borrower's probability of choosing a fintech lender." [...] Notably, while customers may have been more willing to switch mortgage providers, they were less likely to move their deposits. Yang attributes that to FDIC insurance, which gives consumers a sense of security regardless of the bank's reputation. This study also gives weight to something many of us already suspected. People are not necessarily drawn to fintech because it is cheaper. They are drawn to it because they feel burned by the traditional system and want a fresh start with something that seems more modern and less manipulative.

Google

Google Ends Recipe Pilot That Left Creators Fearing Web-Traffic Hit (msn.com) 29

An anonymous reader shares a report: Google has ended tests of a feature that would have let users open a snapshot of cooking-recipe content directly in web search results -- a welcome development for creators and food bloggers who were concerned about eroding traffic to their sites.

In recent months, Alphabet-owned Google has tested Recipe Quick View, which showed some food bloggers' content in search. The company framed the feature as an attempt to help users determine whether they are interested in a recipe before visiting a website. But some bloggers said they feared that the product would keep users from clicking through to their sites, depriving them of traffic and ad revenue.

Google on Tuesday confirmed it ended the trial.

Android

Data Breach Reveals Catwatchful 'Stalkerware' Is Spying On Thousands of Phones (techcrunch.com) 17

An anonymous reader quotes a report from TechCrunch: A security vulnerability in a stealthy Android spyware operation called Catwatchful has exposed thousands of its customers, including its administrator. The bug, which was discovered by security researcher Eric Daigle, spilled the spyware app's full database of email addresses and plaintext passwords that Catwatchful customers use to access the data stolen from the phones of their victims. [...] According to a copy of the database from early June, which TechCrunch has seen, Catwatchful had email addresses and passwords on more than 62,000 customers and the phone data from 26,000 victims' devices.

Most of the compromised devices were located in Mexico, Colombia, India, Peru, Argentina, Ecuador, and Bolivia (in order of the number of victims). Some of the records date back to 2018, the data shows. The Catwatchful database also revealed the identity of the spyware operation's administrator, Omar Soca Charcov, a developer based in Uruguay. Charcov opened our emails, but did not respond to our requests for comment sent in both English and Spanish. TechCrunch asked if he was aware of the Catwatchful data breach, and if he plans to disclose the incident to its customers. Without any clear indication that Charcov will disclose the incident, TechCrunch provided a copy of the Catwatchful database to data breach notification service Have I Been Pwned.
The stalkerware operation uses a custom API and Google's Firebase to collect and store victims' stolen data, including photos and audio recordings. According to Daigle, the API was left unauthenticated, exposing sensitive user data such as email addresses and passwords.

The hosting provider temporarily suspended the spyware after TechCrunch disclosed this vulnerability but it returned later on HostGator. Despite being notified, Google has yet to take down the Firebase instance but updated Google Play Protect to detect Catwatchful.

While Catwatchful claims it "cannot be uninstalled," you can dial "543210" and press the call button on your Android phone to reveal the hidden app. As for its removal, TechCrunch has a general how-to guide for removing Android spyware that could be helpful.
Android

Google Ordered To Pay $315 Million for Taking Data From Idle Android Phones (reuters.com) 23

A California jury has ordered Google to pay $314.6 million to Android smartphone users in the state after finding the company liable for collecting data from idle devices without permission.

The San Jose jury ruled Tuesday that Google sent and received information from phones while idle, creating "mandatory and unavoidable burdens shouldered by Android device users for Google's benefit." The 2019 class action represented an estimated 14 million Californians who argued Google consumed their cellular data for targeted advertising purposes.
AI

AI Note Takers Are Increasingly Outnumbering Humans in Workplace Video Calls (msn.com) 22

AI-powered note-taking apps are increasingly attending workplace meetings in place of human participants, creating situations where automated transcription bots outnumber actual attendees.

Major platforms including Zoom, Microsoft Teams and Google Meet now offer built-in note-taking features that record, transcribe and summarize meetings for invited participants who don't attend. The technology operates under varying legal frameworks, with most states requiring only single-party consent for recording while California, Florida, and Pennsylvania mandate all-party approval.
Google

Google Undercounts Its Carbon Emissions, Report Finds (theguardian.com) 21

An anonymous reader shares a report: In 2021, Google set a lofty goal of achieving net-zero carbon emissions by 2030. Yet in the years since then, the company has moved in the opposite direction as it invests in energy-intensive artificial intelligence. In its latest sustainability report, Google said its carbon emissions had increased 51% between 2019 and 2024.

New research aims to debunk even that enormous figure and provide context to Google's sustainability reports, painting a bleaker picture. A report authored by non-profit advocacy group Kairos Fellowship found that, between 2019 and 2024, Google's carbon emissions actually went up by 65%. What's more, between 2010, the first year there is publicly available data on Google's emissions, and 2024, Google's total greenhouse gas emissions increased 1,515%, Kairos found. The largest year-over-year jump in that window was also the most recent, 2023 to 2024, when Google saw a 26% increase in emissions just between 2023 and 2024, according to the report.

Communications

Bezos-Backed Methane Tracking Satellite Is Lost In Space (reuters.com) 60

MethaneSAT, an $88 million satellite backed by Jeff Bezos and led by the Environmental Defense Fund to track global methane emissions, has been lost in space after going off course and losing power over Norway. "We're seeing this as a setback, not a failure," Amy Middleton, senior vice president at EDF, told Reuters. "We've made so much progress and so much has been learned that if we hadn't taken this risk, we wouldn't have any of these learnings." Reuters reports: The launch of MethaneSAT in March 2024 was a milestone in a years-long campaign by EDF to hold accountable the more than 120 countries that in 2021 pledged to curb their methane emissions. It also sought to help enforce a further promise from 50 oil and gas companies made at the Dubai COP28 climate summit in December 2023 to eliminate methane and routine gas flaring. [...] While MethaneSAT was not the only project to publish satellite data on methane emissions, its backers said it provided more detail on emissions sources and it partnered with Google to create a publicly-available global map of emissions.

EDF reported the lost satellite to federal agencies including the National Oceanic and Atmospheric Administration, Federal Communications Commission and the U.S. Space Force on Tuesday, it said. Building and launching the satellite cost $88 million, according to the EDF. The organization had received a $100 million grant from the Bezos Earth Fund in 2020 and got other major financial support from Arnold Ventures, the Robertson Foundation and the TED Audacious Project and EDF donors. The project was also partnered with the New Zealand Space Agency. EDF said it had insurance to cover the loss and its engineers were investigating what had happened.

The organization said it would continue to use its resources, including aircraft with methane-detecting spectrometers, to look for methane leaks. It also said it was too early to say whether it would seek to launch another satellite but believed MethaneSAT proved that a highly sensitive instrument "could see total methane emissions, even at low levels, over wide areas."

Power

Google's Data Center Energy Use Doubled In 4 Years (techcrunch.com) 32

An anonymous reader quotes a report from TechCrunch: No wonder Google is desperate for more power: The company's data centers more than doubled their electricity use in just four years. The eye-popping stat comes from Google's most recent sustainability report, which it released late last week. In 2024, Google data centers used 30.8 million megawatt-hours of electricity. That's up from 14.4 million megawatt-hours in 2020, the earliest year Google broke out data center consumption. Google has pledged to use only carbon-free sources of electricity to power its operations, a task made more challenging by its breakneck pace of data center growth. And the company's electricity woes are almost entirely a data center problem. In 2024, data centers accounted for 95.8% of the entire company's electron budget.

The company's ratio of data-center-to-everything-else has been remarkably consistent over the last four years. Though 2020 is the earliest year Google has made data center electricity consumption figures available, it's possible to use that ratio to extrapolate back in time. Some quick math reveals that Google's data centers likely used just over 4 million megawatt-hours of electricity in 2014. That's sevenfold growth in just a decade. The tech company has already picked most of the low-hanging fruit by improving the efficiency of its data centers. Those efforts have paid off, and the company is frequently lauded for being at the leading edge. But as the company's power usage effectiveness (PUE) has approached the theoretical ideal of 1.0, progress has slowed. Last year, Google's company-wide PUE dropped to 1.09, a 0.01 improvement over 2023 but only 0.02 better than a decade ago.
Yesterday, Google announced a deal to purchase 200 megawatts of future fusion energy from Commonwealth Fusion Systems, despite the energy source not yet existing. "It's a sign of how hungry big tech companies are for a virtually unlimited source of clean power that is still years away," reports CNN.
Businesses

Figma Files For IPO (cnbc.com) 27

Figma has filed to go public on the NYSE under the ticker "FIG," marking one of the most anticipated IPOs in recent years following its scrapped $20 billion acquisition by Adobe. CNBC reports: Revenue in the first quarter increased 46% to $228.2 million from $156.2 million in the same period a year ago, according to Figma's prospectus. The company recorded a net income of $44.9 million, compared to $13.5 million a year earlier. As of March 31, Figma had 1,031 customers contributing at least $100,000 a year to annual revenue, up 47% from a year earlier. Clients include Amazon Web Services, Google, Microsoft and Netflix. More than half of revenue comes from outside the U.S. Figma didn't say how many shares it plans to sell in the IPO. The company was valued at $12.5 billion in a tender offer last year, and in April it announced that it had confidentially filed for an IPO with the SEC. [...]

Figma was founded in 2012 by CEO Dylan Field, 33, and Evan Wallace, and is based in San Francisco. The company had 1,646 employees as of March 31. Before establishing Figma, Field spent over two years at Brown University, where he met Wallace. Field then took a Thiel Fellowship "to pursue entrepreneurial projects," according to the filing. The two-year program that Founders Fund partner Peter Thiel established in 2011 gives young entrepreneurs a $200,000 grant along with support from founders and investors, according to an online description. Field is the biggest individual owner of Figma, with 56.6 million Class B shares and 51.1% of voting power ahead of the IPO. He said in a letter to investors that it was time for Figma to buck the "trend of many amazing companies staying privately indefinitely."
"Some of the obvious benefits such as good corporate hygiene, brand awareness, liquidity, stronger currency and access to capital markets apply," wrote Field. "More importantly, I like the idea of our community sharing in the ownership of Figma -- and the best way to accomplish this is through public markets."

As a public company, Field said investors should "expect us to take big swings," including through acquisitions.

In April, Figma bought the assets and team of an unnamed technology company for $14 million, according to the filing. They also registered over 13 million users per month, one-third of which are designers.
AI

Landmark EU Tech Rules Holding Back Innovation, Google Says (reuters.com) 45

Google will tell European Union antitrust regulators Tuesday that the bloc's Digital Markets Act is stifling innovation and harming European users and businesses. The tech giant faces charges under the DMA for allegedly favoring its own services like Google Shopping, Google Hotels, and Google Flights over competitors. Potential fines could reach 10% of Google's global annual revenue.

Google lawyer Clare Kelly will address a European Commission workshop, arguing that compliance changes have forced Europeans to pay more for travel tickets while airlines, hotels, and restaurants report losing up to 30% of direct booking traffic.
AT&T

AT&T Now Lets Customers Lock Down Account To Prevent SIM Swapping Attacks (theverge.com) 10

AT&T has launched a new Account Lock feature designed to protect customers from SIM swapping attacks. The security tool, available through the myAT&T app, prevents unauthorized changes to customer accounts including phone number transfers, SIM card changes, billing information updates, device upgrades, and modifications to authorized users.

SIM swapping attacks occur when criminals obtain a victim's phone number through social engineering techniques, then intercept messages and calls to access two-factor authentication codes for sensitive accounts. The attacks have become increasingly common in recent years. AT&T began gradually rolling out Account Lock earlier this year, joining T-Mobile, Verizon, and Google Fi, which already offer similar fraud prevention features.
Power

Google Buys 200 Megawatts of Fusion Energy That Doesn't Even Exist Yet (cnn.com) 77

Google has signed a deal to purchase 200 megawatts of future fusion energy from Commonwealth Fusion Systems, despite the energy source not yet existing. "It's a sign of how hungry big tech companies are for a virtually unlimited source of clean power that is still years away," reports CNN. From the report: Google and Massachusetts-based Commonwealth Fusion Systems announced a deal Monday in which the tech company bought 200 megawatts of power from Commonwealth's first commercial fusion plant, the same amount of energy that could power roughly 200,000 average American homes. Commonwealth aims to build the plant in Virginia by the early 2030s. When it starts generating usable fusion energy is still TBD, though the company believes they can do it in the same timeframe.

Google is also investing a second round of money into Commonwealth to spur development of its demonstration tokamak -- a donut-shaped machine that uses massive magnets and molten plasma to force two atoms to merge, thereby creating the energy of the sun. Google and Commonwealth did not disclose how much money is being invested, but both touted the announcement as a major step toward fusion commercialization. "We're using this purchasing power that we have to send a demand signal to the market for fusion energy and hopefully move (the) technology forward," said Michael Terrell, senior director of energy and climate at Google.

Commonwealth is currently building its demonstration plant in Massachusetts, known as SPARC. It's the tokamak the company says could forever change where the world gets its power from, generating 10 million times more energy than coal or natural gas while producing no planet-warming pollution. Fuel for fusion is abundant, derived from a form of hydrogen found in seawater and tritium extracted from lithium. And unlike nuclear fission, there is no radioactive waste involved. The big challenge is that no one has yet built a machine powerful and precise enough to get more energy out of the reaction than they put into it.

Medicine

Microsoft's New AI Tool Outperforms Doctors 4-to-1 in Diagnostic Accuracy (wired.com) 70

Microsoft's new AI diagnostic system achieved 80% accuracy in diagnosing patients compared to 20% for human doctors, while reducing costs by 20%, according to company research published Monday. The MAI Diagnostic Orchestrator queries multiple leading AI models including OpenAI's GPT, Google's Gemini, Anthropic's Claude, Meta's Llama, and xAI's Grok in what the company describes as a "chain-of-debate style" approach.

The system was tested against 304 case studies from the New England Journal of Medicine using Microsoft's Sequential Diagnosis Benchmark, which breaks down each case into step-by-step diagnostic processes that mirror how human physicians work. Microsoft CEO of AI Mustafa Suleyman called the development "a genuine step toward medical superintelligence."
Canada

In Last-Minute Move, Canada Rescinds Digital Services Tax, Restarts Negotiations (newsweek.com) 143

"Canada and the United States have resumed trade negotiations," reports Newsweek, "after Canadian Prime Minister Mark Carney agreed to rescind the country's digital services tax on U.S. technology companies." The development follows President Donald Trump's announcement on Friday that he was suspending all trade talks with Canada "effective immediately" over the tax policy... Canada's quick reversal signals the high stakes involved in maintaining trade relationships with the United States, particularly given the countries' deeply integrated economies.

Carney's office confirmed on Sunday that both leaders have agreed to restart negotiations after Canada committed to abandoning the 3 percent levy targeting major U.S. tech giants including Amazon, Google, Meta, Uber, and Airbnb. The tax was scheduled to take effect Monday and would have applied retroactively, creating an estimated $2 billion bill for American companies. The conflict escalated rapidly after Canada's Finance Department confirmed Friday that companies would still be required to make their first digital tax payments Monday, despite ongoing negotiations. The tax targeted revenue generated from Canadian users rather than corporate profits, making it particularly burdensome for technology companies operating internationally...

Canada's decision to rescind the tax came "in anticipation" of reaching a broader trade agreement, according to government officials. With negotiations resuming, both countries will likely focus on addressing broader trade issues beyond the digital services tax.

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