Companies Complain to Justice Department About Big Tech

The federal government is listening to complaints about how the major digital platforms exploit their size and the paucity of regulations — and companies are lining up to tell their tales of woe. Yelp public policy chief Luther Lowe says firms that once quietly grumbled are now talking to the Department of Justice about anti-competitive behavior by the big tech companies, all of which vigorously deny the accusations. Two Instagram executives stated that, although some would like to break up social giant Facebook, that won’t help the problem. Continue reading Companies Complain to Justice Department About Big Tech

Tech Companies Have Long Prepared for Antitrust Scrutiny

Apple, Facebook and Google have been preparing for announcements from the Department of Justice (DOJ) and the Federal Trade Commission (FTC) that leading U.S. tech companies were going to be closely scrutinized for evidence of antitrust behavior. The news has sent shares roller-coasting but the three companies’ lawyers are, said sources, taking a “wait-and-see” approach. While Apple has been battling antitrust battles for years and Google has already faced antitrust investigations in the U.S. and Europe, some experts believe Facebook is not as prepared for the coming scrutiny. Continue reading Tech Companies Have Long Prepared for Antitrust Scrutiny

Study: Google Earned $4.7 Billion From U.S. News in 2018

According to a study by the News Media Alliance, Google earned $4.7 billion last year from the work of news publishers via the company’s search and Google News services (and the estimate is considered conservative since it does not include the value of personal data that Google collects on readers when they click on an article). The estimate is close to the $5.1 billion from digital advertising the entire U.S. news industry generated in 2018. The News Media Alliance is a trade association that represents more than 2,000 newspapers in North America. Its president and CEO David Chavern says journalists deserve a share of the $4.7 billion. Continue reading Study: Google Earned $4.7 Billion From U.S. News in 2018

Apple Reinstates Kid Controls, App Developers File Lawsuit

Apple abruptly reversed a decision made a year ago to remove iPhone apps that use one of two technologies to allow parents to control their children’s use of Apple devices. The company revealed its move to allow parental controls in a short blog post on its website. The reversal comes on the heels of news that the Department of Justice and the Federal Trade Commission are scrutinizing Silicon Valley tech companies for antitrust behavior. App developers filed a lawsuit in California accusing Apple of monopolizing app distribution. Continue reading Apple Reinstates Kid Controls, App Developers File Lawsuit

Government Expected to Take a Closer Look at Tech Giants

U.S. tech giants are expected to become targets of in-depth antitrust investigations to determine if any companies have become too large and may be stifling competition. According to sources, federal agencies have agreed to distribute the investigative responsibilities. The Justice Department reportedly has authority over looking into Apple and Google, while the Federal Trade Commission will have oversight of Amazon and Facebook. In addition, the House Judiciary Committee plans to examine competition in digital markets and the growing power of the tech industry. Continue reading Government Expected to Take a Closer Look at Tech Giants

Apple Updates App Store, Hopes to Combat Antitrust Claims

Apple is hoping that its new App Store website will help curb accusations regarding antitrust and anti-competition practices. Ahead of next week’s Worldwide Developers Conference (WWDC) in San Jose, California, the company launched a new App Store site with details about how apps are carefully reviewed and curated, and the different business models that are available to app developers. “We created the App Store with two goals in mind: that it be a safe and trusted place for customers to discover and download apps, and a great business opportunity for all developers,” the company detailed on the site. Continue reading Apple Updates App Store, Hopes to Combat Antitrust Claims

Judge Rules For FTC Against Qualcomm in Antitrust Case

U.S. District Judge Lucy Koh sided with the Federal Trade Commission’s antitrust lawsuit against Qualcomm, finding that it “unlawfully stifled competition in the market for wireless chips.” This brings uncertainty to Qualcomm’s core business of licensing its patents; Koh ruled that the company must renegotiate all existing patent license deals. That could result in lower costs for Apple and other smartphone makers. The Trump administration has pointed to Qualcomm as a “keystone” in the U.S. tech competition with China. Continue reading Judge Rules For FTC Against Qualcomm in Antitrust Case

Supreme Court: App Store Customers Can Now Sue Apple

In what could become a landmark decision, the Supreme Court has ruled to allow individual iPhone users to sue Apple in antitrust violation cases related to the tech giant’s App Store. In a 5-4 decision written by Associate Justice Brett Kavanaugh, the Supreme Court agreed with a lower court ruling that determined App Store customers could sue Apple for allegedly driving up prices by forcing them to purchase apps exclusively from the App Store. Apple lost its argument that was based on the contention that third-party developers set the prices for apps. While Apple holds steady in its belief that it does not represent a monopoly, the ruling could have future ramifications regarding consumers who seek to sue other app sellers for antitrust violations. Continue reading Supreme Court: App Store Customers Can Now Sue Apple

India Reportedly Launches Antitrust Investigation of Google

Sources informed Reuters that the Competition Commission of India (CCI) has ordered an antitrust investigation into Google for allegedly using the popularity of its Android operating system to block competitors. CCI began evaluating the complaint in 2018, and by April of this year reportedly determined that there was enough merit to launch a full investigation. A similar case played out in Europe last year, which resulted in a $5 billion fine against Google. In that case, the EU determined that Google had violated antitrust rules by forcing Android phone manufacturers to pre-install the Google search app and Chrome Web browser, providing the Google Play Store with an unfair advantage. Continue reading India Reportedly Launches Antitrust Investigation of Google

WWDC: Apple to Unveil Apps, Software, Development Tools

When Apple’s 5-day Worldwide Developers Conference (WWDC) kicks off June 3 in San Jose, the company is reportedly planning to introduce an array of new apps, software features and development tools. According to those familiar with the plans, Apple is expected to introduce operating system updates for its Apple TV, Apple Watch, iPad, iPhone and Mac computers. The new iOS 13, codenamed “Yukon,” will offer new and updated features — while iOS14, codenamed “Azul,” will launch next year to support 5G wireless and new AR functions. Continue reading WWDC: Apple to Unveil Apps, Software, Development Tools

Apple Facing Criticism for Restricting Parental Control Apps

“Can you really trust that Apple wants people to spend less time on their phones?” asked Fred Stutzman, founder and chief executive of Freedom, an app designed to limit screen time. Freedom had 770,000 downloads before Apple removed it from the App Store in August, and other app makers have similar stories. According to analysis from The New York Times and app-data firm Sensor Tower, Apple removed or restricted at least 11 of the 17 most downloaded screen time and parental-control apps as well as clamping down on similar but lesser known apps.

Continue reading Apple Facing Criticism for Restricting Parental Control Apps

Facebook Planning to Face FTC Fine in Excess of $3 Billion

In its first quarter earnings report yesterday, Facebook revealed that it is putting aside $3 billion (about 6 percent of its cash and marketable securities) in anticipation of an upcoming fine from the Federal Trade Commission regarding privacy violations. The penalty, which could become the highest of its kind against a tech company by U.S. regulators and the biggest privacy-related fine in the FTC’s history, is expected to run from $3 billion to $5 billion. The social media giant posted more than $15 billion in revenue, a 26 percent increase over the year-earlier period. Continue reading Facebook Planning to Face FTC Fine in Excess of $3 Billion

German Price-Comparison Service Files Suit Against Google

Price-comparison service Idealo sued Google in a Berlin court, claiming that the tech behemoth has made it harder for users to find Idealo on the search engine since it began promoting its own price-comparison product Google Shopping. Ideola’s suit also names Google Ireland, Alphabet’s European body, and seeks €500 million in damages. The suit is based on the European Union’s two-year old ruling that fined Google €2.42 billion ($2.72 billion) for favoring its own offerings over those of competitors. Continue reading German Price-Comparison Service Files Suit Against Google

Apple Music Now Has More Subscribers Than Spotify in U.S.

Apple Music now has more paid subscriptions in the U.S. than popular music streamer Spotify, as the global competition ramps up between the two rivals. According to those familiar with the matter, Apple Music surpassed 28 million U.S. subscribers by February, compared to Spotify’s 26 million subscribers (the figures only include paid subscriptions, not trial users). When including nonpaying music fans of its ad-supported offering, Spotify still holds the lead in the number of overall users in the U.S. To slow Apple’s progress, Spotify recently introduced new promotions, such as a discounted subscription bundle with Hulu. Continue reading Apple Music Now Has More Subscribers Than Spotify in U.S.

DOJ Warns Academy New Netflix Rules Could Violate Laws

As the Academy of Motion Picture Arts and Sciences mulls over rule changes that would limit the eligibility of content from Netflix and other streaming services, the U.S. Department of Justice weighed in with a warning that doing so could violate competition law and raise antitrust issues. Academy board member Steven Spielberg reportedly has encouraged changes to Oscar eligibility rules, prompting the DOJ’s response. At CinemaCon, movie theater owners are also discussing how Netflix is changing the landscape. Continue reading DOJ Warns Academy New Netflix Rules Could Violate Laws

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