In today’s top Europe, Middle East and Africa news, the U.K.’s Competition and Markets Authority (CMA) fined retailers JD Sports and Footasylum $6 million for sharing commercially sensitive information, and Spain’s BBVA bank upped its stake in digital bank Neon with a $300 million investment.
Plus, stricter know your customer (KYC) eCommerce rules are set to take effect in the U.K. on March 14, South African infrastructure startup Stitch raised $21 million in a Series A funding and the CMA has secured a pledge from Google to fix competition concerns.
CMA: JD Sports, Footasylum Held Improper Meetings
The Competition and Markets Authority (CMA), the U.K.’s competition watchdog, has fined sportswear retailer JD Sports and sneaker seller Footasylum £4.6 million ($6 million) for sharing commercially sensitive information.
The CMA said there was a “black hole” around the discussions between the groups, as some phone records of meetings between the two companies’ chief executives appear to have been deleted.
Spain’s BBVA Backs Brazil’s Digital Bank Neon Payments With $300M
Spain’s BBVA bank upped its stake in digital bank Neon with a $300 million (€263 million) investment, giving the legacy financial institution an additional 21.7% interest in the Brazilian startup.
BBVA anticipates the new deal will close before the end of February. BBVA has held a stake in Neon since 2018 through its venture capital fund Propel, and following the closing of this new investment deal, BBVA will hold a 29.7% stake in Neon.
London IVF Insurance Startup Gaia Raises $20M
Fertility care startup Gaia has closed on a £14 million ($20 million) Series A funding round, the London-based company announced Monday (Feb. 14).
Founded in 2019 to make in vitro fertilization (IVF) more affordable, Gaia said it will use the funding to scale its operations and expand globally, targeting markets including the U.S.
Apple Fined Again in Dutch Dating App Case
Dutch antitrust regulators have levied a new €5 million ($5.6 million) fine against Apple over an order to open up app payments for dating services.
The tech giant’s new payment terms for data apps are “unreasonable and create an additional barrier,” the Netherlands Authority for Consumers and Markets (ACM) said in a statement on Monday (Feb. 14), noting Apple “still does not meet the requirements.”
TruKKer Secures $96M in Series B Funding Round
TruKKer, a Saudi Arabia-headquartered digital freight network, raised $96 million in a mix of debt and equity Series B financing.
The company plans to use the capital to expand in existing markets in the Middle East and Central Asia and launch new products and features, according to Chief Financial Officer Amit Agarwal.
New UK Rules May Require Additional Authentication Measures From Consumers
After being delayed for more than a year, stricter know your customer (KYC) eCommerce rules are set to take effect in the United Kingdom on March 14.
The Financial Conduct Authority (FCA), the U.K.’s financial regulatory body, proposed the strong customer authentication measures in 2019. While the measures were expected to be implemented last year, they were delayed to give retailers more time to prepare.
South African API Startup Stitch Raises $21M Series A Round
South African application programming interface (API) infrastructure startup Stitch raised $21 million in a Series A funding round to help accelerate the expansion of Africa’s rapidly growing FinTech sector, according to a press release.
The fresh infusion of capital will be earmarked to further build out the necessary infrastructure to create the future of money on the continent by connecting bank accounts, wallets and other stores of value.
UK Tax Case Marks First Ever NFT Seizure
In what is believed to be the first such action by British law enforcement, the U.K.’s tax watchdog has seized three non-fungible tokens (NFTs).
Her Majesty’s Revenue and Customs (HMRC) commandeered the NFTs amid a probe into an alleged value-added tax (VAT) fraud case worth £1.4 million ($1.9 million). The agency said three people have been arrested in the case, accused of tax fraud.
UK’s FCA Pushes BNPL Firms to Update Contract Terms
As the popularity of buy now, pay later (BNPL) rises, the U.K.’s FCA is asking these services to amend terms that could hurt consumers.
The FCA announced on Monday (Feb. 14) that it intends for these products to be regulated by the agency. In the meantime, the agency said such firms must comply with the consumer protections established by the Consumer Rights Act 2015 to assess the fairness and transparency of the terms of four firms offering unregulated BNPL products.
CMA to Watch Google as it Secures Privacy Pledges
The long running feud between the United Kingdom’s competition police and Google may have cooled.
The CMA has secured a pledge from the Alphabet Inc. subsidiary to fix competition concerns, the independent overseer announced Friday (Feb. 11).
UK Banks Get the First Taste of What AI Regulation May Look Like
Banks in the U.K. have been warned by financial regulators not to use artificial intelligence (AI) systems to approve loan applications unless they can prove that their algorithm isn’t biased against minorities, according to the Financial Times.
Financial institutions are using AI models and machine learning to decide whether to grant loans applications based on the data they can collect, which in many instances includes post codes, default rates in the area, employment benefits, salaries and related information.
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