Lawsuits, fines and the tech at the heart of it all

When a company pushes false claims about using artificial intelligence in its business, that’s known informally as “AI washing.” It can feel like everybody’s doing it, but the Securities and Exchange Commission is cracking down on the practice this week by fining two companies a total of $400,000.

Plus, is the government’s communication with social media companies persuasion or coercion? The Supreme Court heard arguments in yet another case about online speech. Conservative attorneys general say the Joe Biden administration coerced internet platforms to take down certain content, but it seems like the justices might actually side with the White House on this one.

But first, the Department of Justice on Thursday said it’s bringing antitrust charges against Apple. The DOJ accuses the tech giant of exploiting its alleged iPhone monopoly.

Marketplace’s Lily Jamali spoke with Reuters Breakingviews columnist Anita Ramaswamy about all of these stories for this week’s episode of Marketplace Tech’s Bytes: Week in Review.

Marketplace Tech reached out to Apple for comment regarding the DOJ suit. Here’s what they said:

“At Apple, we innovate every day to make technology people love — designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users. This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”

More on everything we talked about

Justice Department, states accuse Apple of holding a smartphone monopoly from The Washington Post

The Main Driver of Apple’s Success Has Become Its Biggest Liability from The Wall Street Journal

The green bubble vs. blue bubble debate isn’t just a tech issue from Marketplace Tech

Alphabet and Apple have cause to circle AI wagons from Reuters Breakingviews

The Supreme Court is skeptical of restricting the White House from talking to social media platforms from The Verge

Supreme Court to hear online speech case with major 2024 implications from Politico

SEC Settles With Two Investment Advisers Over Alleged ‘AI Washing’ from The Wall Street Journal

Watch Out. Companies are using ‘AI washing’ to mislead consumers from The Washington Post