In today’s Digest, we cover France investigating X for alleged algorithm manipulation, Perplexity seeking phone deals for its Comet AI browser, and the UK government looking to defuse its Apple encryption row with the US.

France investigates X for alleged algorithm manipulation

A criminal investigation has been launched into X by French authorities, accusing the platform of manipulating its recommendation algorithm and unlawfully extracting user data, according to the platform. The company denies the claims and describes the probe as politically charged.

In a statement issued, X revealed that French authorities are demanding access to its core algorithm and data on all user posts, X claims it has been left in the dark about the specifics of the allegations and has rejected the authorities’ demands. 

Perplexity seeks phone deals for Comet AI browser

Perplexity AI is in discussions with mobile manufacturers to pre-install its new AI-powered browser, Comet, on smartphones, a strategic move aimed at taking on Google’s dominance in mobile search. Currently in beta and limited to desktops, Comet blends Perplexity’s AI engine with traditional browsing, allowing users to receive answers regarding personal data such as emails, calendars, and browsing history, as well as delegate tasks like summarising content or scheduling meetings.

Speaking to Reuters on Friday, CEO Aravind Srinivas confirmed the talks, noting the challenge of displacing entrenched browsers like Chrome. “It's not easy to convince mobile OEMs to change the default browser to Comet,” he said, citing user inertia as a key barrier.

By pushing for default installation, Perplexity hopes to tap into browser stickiness, where users typically remain loyal to whatever browser app is pre-installed. The company plans to scale from hundreds of thousands of testers to “tens to hundreds of millions” of users in 2026, pending mobile rollout.

UK looks to defuse Apple encryption row

The UK government is scrambling to defuse a growing diplomatic row with the Trump administration over its controversial demand to bypass Apple’s end-to-end encryption to access customer data. Speaking to the Financial Times, two senior government sources confirmed that Keir Starmer’s administration would probably have to retreat after the Home Office’s January order demanding Apple create a backdoor into its most secure cloud storage system.

US officials have repeatedly raised concerns over the UK’s attempt to force Apple to compromise its encryption. “It’s a big red line in the US - they don’t want us messing with their tech companies,” one British official said, adding that the row risks derailing broader digital partnerships, including those focused on AI and data flows.

The Home Office has come under internal fire for mishandling the situation, with one senior official conceding it now has its “back against the wall.”The official also referred to the issue as “a problem of the Home Office’s own making,” with ministers now scrambling for a workaround to salvage relations with Washington and the tech sector.

Despite mounting pressure and internal division, the Home Office has yet to formally withdraw the notice.