June 2025 Newsletter

1. FCC Power Shake‑up as Two Commissioners Resign:

Republican Nathan Simington and Democrat Geoffrey Starks unexpectedly announced they would step down from the five‑member Federal Communications Commission (FCC). Their departure hands President Trump two vacancies to fill and—until successors are confirmed—leaves the agency with only one Republican and one Democrat.

• Why does this matter? (WDTM?): The FCC is currently deadlocked 1‑1, unable to pass controversial items such as net‑neutrality restoration, big spectrum auctions, or major broadcast‑license disputes. Trump can now nominate ideological loyalists, potentially turning the FCC from an occasionally independent regulator into a sharper tool for his media and telecom agenda (e.g., pressure on social‑media “bias", broadcast license challenges, merger approvals). Telecom and Big Tech companies must now game‑plan for rapid policy whiplash when the new majority is seated, especially on broadband subsidy rules, Section 230 interpretations, and 5G/6G spectrum strategy.

2. OpenAI Snubs Google TPU Rumors as Chinese Chip Startups Bet on U.S. Curbs:

Two Chinese chip firms, Moore Threads and MetaX, announced $1.7 billion in combined IPOs, leaning into U.S. export restrictions as a market opportunity. By marketing themselves as homegrown alternatives to Nvidia and AMD, the startups are tapping into Beijing’s demand for tech self-reliance. Meanwhile, OpenAI stated it has "no plans" to adopt Google’s in-house AI chips (TPUs), instead deepening its reliance on Nvidia GPUs while also pursuing a custom chip design of its own—a move to secure more control over its computing power.

• WDTM?: There is an accelerating tech fragmentation between the U.S. These moves highlight the global fragmentation of the AI supply chain. As Washington tightens chip exports (even extending to chip design software), China is not only racing to build its own silicon stack, but is also pitching it as its own national strength. In the U.S., OpenAI’s continued reliance on Nvidia, combined with its shift toward proprietary chips, illustrates how central compute access has become in determining AI power. Control over chip design is becoming as important as control over data or models. Keep your eyes on this. 

3. Congress Nearly Froze State AI Laws for a Decade:

In late May, lawmakers inserted a 10-year moratorium on state-level AI regulations into a federal broadband funding bill. The moratorium was originally a proposed rider of President Trumps’ tax‑and‑spending package that would bar states from regulating “high‑risk” AI systems for a decade. Supporters (including industry groups) led by Sen. Ted Cruz, called it necessary to avoid a “patchwork” of tech regulation, while critics state that the provision would have invalidated emerging state laws on important issues like algorithmic bias, facial recognition, and more. After outcry from civil liberties groups and a rare bipartisan alliance of governors, the measure was dropped. “Washington shouldn’t be tying the hands of states that are trying to protect their kids and communities,” Arkansas Governor Sarah Huckabee Sanders said, one of the politicians leading the charge. 

• WDTM?: The uproar from this month forced both Democrats and Republicans to concede that a purely federal freeze is politically toxic unless Congress delivers substantive national rules alongside it. The loss of this provision in the tax package is a big blow for big tech: it signals that even with strong lobbying power, Big Tech can’t easily steamroll bipartisan concern over AI risks. Tech companies are lobbying for uniform national rules, while states, citing federal inaction, won out. The regulatory tug-of-war isn’t ove. But for now, state autonomy survives. 

4. DOJ Greenlights Antitrust Case Against Apple:

A federal judge allowed the Department of Justice’s monopoly lawsuit against Apple to proceed, rejecting Apple’s motion to dismiss. The case, first filed in March 2024, accuses Apple of stifling competition in the mobile app ecosystem, particularly through its App Store rules and restrictions that allegedly favor its own products and services. Key claims include that Apple prevents rival apps and digital wallets from accessing core iPhone hardware features (like NFC for tap-to-pay) and imposes anti-steering rules that stop developers from directing users to cheaper alternatives outside the App Store.  

• WDTM?: This has got to be one of the most aggressive U.S. antitrust challenges a big tech company has ever faced (ongoing since March 2024). It could ultimately reshape how digital marketplaces operate. If successful, the DOJ might force Apple to open iOS to alternative app stores or payment systems. The ruling signals that even Big Tech’s most entrenched players are no longer immune from serious legal scrutiny.

5. OpenAI Considers Antitrust Complaint Against Microsoft:

Wall Street Journal reporting—later confirmed by Reuters—revealed that senior OpenAI executives have discussed accusing their largest investor‑partner, Microsoft, of anticompetitive behavior. OpenAI is reportedly worried that Microsoft is: is bundling or tying OpenAI models with its products in a way that gives it an unfair advantage (e.g., forcing customers to use Azure to access GPT-4) and OpenAI is being restricted from selling to Microsoft’s rivals, or from launching its own commercial offerings in competition with Microsoft. Options under review allegedly include filing with the U.S. Department of Justice or the Federal Trade Commission.

• WDTM?: A public antitrust fight would mark the first major breakup drama inside the “closed club” of frontier‑model labs, exposing contract terms that regulators in the U.S. and EU already want to scrutinize. DOJ and FTC are actively searching for a “test case” to show that traditional merger law can address digital‑platform lock‑ins; OpenAI v. Microsoft could become that test.

6: Supreme Court Upholds Texas Online Age Verification Law

The U.S. Supreme Court upheld a Texas law requiring age verification for accessing adult content online—the first in a series of digital safety measures advanced by the state under the SCOPE Act (Securing Children Online through Parental Empowerment). This case follows a legal journey that began when a federal judge blocked key parts of the law in April, ruling it overly broad and likely unconstitutional. Following that move, Texas Attorney General Ken Paxton appealed that injunction, and now the nation’s highest court has weighed in.

• WDTM?: The case having been decided by the highest court in the U.S. matters is not an incidental or trivial ruling. This ruling shows that the country is looking to protect children in the media- it’s a win for digital safety advocates, parental rights groups, and lawmakers pushing for stricter online content controls, but for critics, it may be a challenge to First Amendment rights of freedom of speech, because mandatory age verification can chill lawful expression, create privacy risks, and give governments broader authority to dictate access to online content. It not only revives Texas’ stalled law but sets a national precedent that could pave the way for similar laws across the country. For lawmakers, it’s a green light to regulate the digital experiences of minors; for platforms, it signals growing legal exposure and compliance complexity. 

7. Cybersecurity Rollbacks Draw Scrutiny:

The White House signed an executive order repealing several cybersecurity mandates, including rules for federal contractors on encryption and secure development. Funding for the Cybersecurity and Infrastructure Security Agency (CISA) was also targeted for cuts, although Congress may partially restore it. Many observers who expected national security to remain a nonpartisan priority were surprised to see the repeal of core cybersecurity mandates. Critics argue it weakens the nation’s cyber posture just as the threat landscape becomes more complex. The fallout could be most acute for critical infrastructure sectors, like healthcare and energy, that rely on federal guidance to secure aging systems.

• WDTM?: At a time of escalating ransomware and nation-state threats, the rollback signals a broader pattern in federal policy: the ongoing pivot toward deregulation under the current administration. This move fits into a wider deregulatory trend that includes reduced oversight in data privacy, AI accountability, and environmental tech standards. Critics argue this approach weakens the nation’s cyber posture just as the threat landscape becomes more complex and interconnected. The fallout could be most acute for critical infrastructure sectors, like healthcare and energy, that rely on federal guidance to secure aging systems. It’s part of the Trump governing philosophy that prioritizes industry flexibility over centralized enforcement—even when national security is in play.

8. EU Prepares to Fine Elon Musk’s X $1 Billion:

European Union regulators, specifically the European Commission, are reportedly preparing a record-setting fine against X (formerly Twitter) for violating the Digital Services Act (DSA). The case centers on multiple alleged violations, including the use of deceptive design features like paid blue checkmarks (so-called 'dark patterns'), lack of advertisement transparency, obstruction of researcher data access, and failure to moderate illegal or harmful content. The Commission, which led the investigation under the now-departed Commissioner Thierry Breton, has the authority to fine X up to 6% of its annual global revenue and impose operational reforms.

• WDTM?: This could be the first major test of the DSA’s enforcement teeth. A billion-dollar fine combined with mandated platform changes would mark a new era in European tech regulation—one where noncompliance carries steep financial and operational costs. It also shows how serious the EU is about enforcing transparency, content moderation, and public accountability requirements on Very Large Online Platforms (VLOPs). As the first high-profile case under the DSA, it could set the tone for how aggressively the EU polices the digital public square, and could put other global platforms on notice. It also intensifies transatlantic tensions over platform governance and speech norms.

9. North Korean Freelancers Unmasked in U.S. Software Jobs:

U.S. authorities revealed that North Korean IT workers posing as freelance developers had secured jobs at American companies, including defense tech firms. These operatives—often using VPNs, fake résumés, and stolen or borrowed identities—successfully secured remote jobs at a range of U.S. companies, including several involved in sensitive sectors like defense technology and critical infrastructure. Using fake identities, they earned millions and allegedly exfiltrated proprietary data. According to the FBI and Department of Justice, the workers funneled millions of dollars in earnings back to the North Korean government, helping to fund weapons development and cyber operations. In some cases, they allegedly gained access to proprietary source code, internal documentation, and intellectual property, raising urgent concerns about espionage and supply chain security.

• WDTM?: This operation highlights a sophisticated evolution in cyber espionage: exploiting the global remote work boom to infiltrate secure environments. It exposes soft spots in corporate hiring and vetting systems, and raises urgent questions about supply chain trust and contractor security in high-stakes sectors. This isn’t a one-off. As detailed in The Lazarus Playbook, North Korea has perfected a model of cyber-enabled revenue generation to fund its weapons program—from crypto thefts to ransomware to now labor-market infiltration. Each tactic is designed not just to steal, but to strategically weaken adversaries' systems and trust in digital infrastructure. Cybersecurity is not just about firewalls and phishing; it’s also about who you hire, who you trust, and how well you verify them.

10. Healthcare Ransomware Crisis Deepens:

McLaren Health Care, a major hospital network in Michigan, confirmed that a ransomware attack last year had compromised data for over 700,000 patients. The attack delayed procedures and forced hospitals to revert to paper systems. Similar disruptions hit other healthcare providers across the U.S. in June.

• WDTM?: Ransomware remains the most disruptive form of cybercrime, and healthcare is one of its softest targets. The risks go beyond data theft: patient safety is at stake. Despite rising awareness, many healthcare providers remain under-resourced and vulnerable. The sector’s digital fragility continues to invite crisis.

11. India Proposes Criminal Penalties for "Fake News":

The Indian state of Karnataka introduced legislation criminalizing misinformation, anti-feminist content, and online superstition with penalties of up to 7 years in prison. The bill’s language defines prohibited content vaguely, leaving open-ended categories such as “misleading narratives” or “content that undermines constitutional values,” which critics argue could be used to target dissent or satire.

• WDTM?:  This is part of a broader global trend of democracies cracking down on disinformation with heavy-handed, often ill-defined laws. While the stated goal is to curb harmful viral lies, especially during elections or communal unrest, poorly written bills risk becoming tools for censorship

12. Startups in Healthcare AI and Cybersecurity Raise Record Rounds:

Tandem Health, a Swedish startup building AI co-pilots for doctors, raised $50M to expand real-time documentation tools. Cato Networks, an Israeli cloud security firm, secured $359M at a $4.8B valuation as demand for remote-friendly network protection surges.

• WDTM?: Tech venture investment overall slowed in early 2025, with many sectors experiencing reduced deal volume and valuation pullbacks compared to the boom years. However, key sectors like healthcare AI and cybersecurity continue to attract capital. Investors are betting on tools that reduce burnout and secure distributed systems. These firms show that pragmatic, infrastructure-focused innovation is alive and well and perhaps less flashy but more consequential than social apps or crypto platforms.

13. Tech Industry Asks Brussels to Hit Pause on the EU AI Act:

Computer and Communications Industry Association (CCIA Europe) —a major tech lobbying group whose members include Alphabet, Apple, Meta, and Amazon—issued a formal request urging the European Commission and Council to delay enforcement of the next phase of the EU AI Act, set to take effect on August 2. Industry leaders argue that the European Commission has not yet published critical implementation guidance and technical standards, making compliance practically impossible. They warn that forcing deployment decisions or redesigns before the rules are fully clarified could lead to fragmented model releases, delayed innovation, and disproportionate burdens for companies already adapting to the Digital Services Act and other new regulations.  

• WDTM?: While U.S. lawmakers are still arguing about whether states may act, the EU’s binding regime is weeks from biting. Tech giants fear they could be forced to segment models or pull features in Europe. If Brussels grants even a short pause, critics will portray the AI Act as unworkable; if it refuses, companies may litigate and fragment releases (EU‑only model versions, throttled APIs, etc.). Other jurisdictions (Brazil, Canada, ASEAN) look to the EU template; signs of industry‑induced delay could embolden them to adopt more flexible, U.S.‑style oversight.

14. ‘Scattered Spider’ Shifts Attacks from Retail to Aviation:

Google’s Mandiant and Palo Alto Networks warned that the Western‑based extortion crew (aka UNC‑3944/Muddled Libra) is actively breaching airline and transport systems. Hawaiian Airlines acknowledged a hack the previous day; WestJet also disclosed an incident. 

• WDTM?: Airlines had largely avoided 2023‑24 ransomware waves. Credential‑reset social engineering—the hacking groups’ specialty—now threatens aviation operations and passenger data. Public carriers face SEC cyber‑incident 4‑day reporting rules; insurers may hike premiums for sectors with Scattered Spider‑style lateral‑movement risks. Expect DHS/CISA advisories and potential FAA cybersecurity mandates, giving the U.S. government another justification for tighter software‑supply‑chain rules.

15. International Criminal Court Faces Second Sophisticated Hack:

The International Criminal Court (ICC) confirmed that it suffered a “new, targeted” cyber-intrusion, marking the second major breach in under a year. The hack comes just months after the ICC issued high-profile war crimes warrants for leaders of Russia and Israel, raising immediate speculation about geopolitical retaliation, though officials have not formally attributed the attack. The Court stated that containment measures have been completed and that critical systems are now secure, but declined to disclose the extent of the breach or whether sensitive materials were compromised. Reports suggest that the hack may have been a state-sponsored act of cyber-espionage or disruption. The Court's digital infrastructure holds an enormous amount of classified materials, including sealed indictments, witness testimony, and evidence in ongoing war crimes investigations, making it a high-value target.  

• WDTM?: Even quasi‑judicial global bodies are fair game in the growing geopolitical cyber shadow war, raising questions about sovereign immunity and retaliation. ICC evidence repositories hold sensitive witness testimony and sealed indictments; a breach could imperil prosecutions and witness safety. U.S. federal courts—especially those handling export‑control or sanctions cases—may reassess their own cyber posture, anticipating similar state‑sponsored interest.

16. Supreme Court Takes Up $1 Billion Cox Copyright Case ;

The U.S. Supreme Court agreed to hear a pivotal case that could reshape the boundaries of digital copyright enforcement. At issue is whether internet service providers (ISPs) like Cox Communications can be held secondarily liable when their subscribers engage in online piracy. The case stems from a 2019 jury verdict awarding nearly $1 billion in damages to music industry giants—Sony, Universal, and Warner—who alleged that Cox repeatedly failed to act on thousands of copyright infringement notices and allowed “repeat infringers” to continue pirating content via its network. Cox argues that it’s not responsible for the independent actions of users and that the verdict threatens the neutrality of ISPs. The music labels contend that Cox’s “willful blindness” and refusal to terminate violators amounts to facilitation.  

• WDTM?: A ruling for the labels could force ISPs to police users far more aggressively—potentially throttling or cutting service for repeat infringers and using AI traffic inspection. The logic about “knowledge” and “control” will ripple to edge‑compute and AI‑model‑as‑a‑service platforms hosting copyright‑sensitive data sets. If the Court narrows DMCA safe harbors, expect fresh lobbying for statutory updates that balance copyright protection with broadband access goals.

Until next time, thanks for reading!