Amazon, Apple, Google, Facebook and Microsoft — the five largest U.S. tech firms — are speeding up their acquisitions, even as they are under antitrust investigation by federal officials and state attorneys general. By the end of June, the companies had disclosed 27 deals, up 29 percent from the same period last year, when they announced 21 deals. The increase in purchases could be used as proof by regulators and economists that these companies are using their wealth to dominate competitors and increase their market share. Continue reading Big Tech Firms Step Up Acquisitions Despite Antitrust Probes

About a year ago, the Federal Trade Commission chair Joseph Simons predicted that the antitrust probe of Facebook would be done before the presidential election, a goal that now seems unlikely. If it runs into next year, a new president could change the FTC’s priorities. For now, the Facebook investigation continues, with staff members prepping depositions of Facebook chief executive Mark Zuckerberg and chief operating officer Sheryl Sandberg and examining its purchase of Giphy, a search database for short videos. Continue reading FTC Probe of Facebook Unlikely to Conclude by Election Time

Chinese app TikTok has had a tumultuous few weeks. After being banned in India due to political tensions between that country and China, TikTok ceased its activities in Hong Kong in response to its concerns about the mainland’s imposition of a natural security law. In the U.S., the Trump administration is considering limiting the app’s access to its users. Now, sources say the U.S. Justice Department and Federal Trade Commission are probing allegations that TikTok has violated a 2019 agreement on children’s privacy. Continue reading FTC and DOJ to Probe TikTok Violation of Child Privacy Rules

The Justice Department is scrutinizing Apple’s App Store rules, specifically the requirement that app developers use Apple Pay, which takes up to a 30 percent cut. Since mid-2019, lawyers have been interviewing app developers about their experiences with Apple. Developers have pushed back by blocking subscriptions and payments on their apps or charging higher rates on iPhone apps. The DOJ’s antitrust resources are focused on Google’s dominance in digital advertising, which may result in a case as early as this summer. Continue reading Justice Department Probes Requirements of Apple App Store

Apple rejected Facebook Gaming’s submission to the App Store for at least the fifth time since February. Sources said that, with each rejection, Apple referred to its rules that don’t allow apps with the “main purpose” of distributing casual games. Apple’s App Store is the only officially approved venue for iPhone and iPad owners to find new games (and other programs), which generated about $15 billion in revenue last year. Microsoft president Brad Smith said antitrust regulators need to look at the practices of app stores. Continue reading Apple Rejects Facebook App, Calls for Antitrust Probe Grow

The Justice Department recommended, in a 25-page report, that lawmakers repeal portions of Section 230 of the Communications Decency Act of 1996, which has given website operators broad immunity for what people post on their services. The proposed repeal would take away that immunity, forcing social media platforms and similar sites to be responsible for the videos, words, images posted by their users, while assuring that their moderation is consistent. The DOJ’s recommendation will have to be enacted by Congress. Continue reading DOJ Favors Withdrawing Section 230’s Immunity for Big Tech

The French Competition Authority fined Apple 1.1 billion euros ($1.23 billion) after determining that the company unfairly divided products and customers between two wholesalers, Tech Data and Ingram Micro, and forced them to charge the same prices as those offered in its own retail stores. The Authority president Isabelle de Silva stated that doing so had the effect of “sterilizing the wholesale market for Apple products.” Tech Data and Ingram Micro were fined 76.1 million euros and 62.9 million euros, respectively. Continue reading French Competition Authority Fines Apple & Two Wholesalers

The Justice Department issued a federal indictment, which was unsealed in the Eastern District of New York, accusing Huawei Technologies and its affiliates of a “pattern of racketeering activity” as well as stealing trade secrets from six U.S. firms. The six firms were not named, but a source identified them as Cisco Systems, CNEX Labs, Fujitsu, Motorola Solutions, Quintel Technology and T-Mobile. Among the reportedly stolen information were source code and manuals for wireless technology. Continue reading Justice Department Charges Huawei with Racketeering, Theft

The Federal Trade Commission is focused on acquisitions made by Big Tech companies, ordering Alphabet, Amazon, Apple and Microsoft to turn over information on such past deals. Specifically, the FTC wants to know about the smaller deals — many less than $100 million — that the companies were not required to report to regulators, in hopes of learning more about potential antitrust abuses. FTC chair Joseph Simons noted that if they find “problematic transactions,” they can conceivably “initiate enforcement action.” Continue reading FTC Looks Into Acquisition Strategies of Big Tech Companies

The merger of T-Mobile and Sprint, the nation’s third and fourth largest wireless carriers, is nearly approved after a drawn-out battle. The Federal Communications Commission and Justice Department cleared the merger in June, but the process ground to a halt when attorneys general from 13 states and the District of Columbia sued. This week in Manhattan, U.S. District Court judge Victor Marrero rejected the suit, leaving one last step to navigate. The new company will be called T-Mobile and have about 100 million customers. Continue reading T-Mobile and Sprint Clear Another Hurdle to Finalizing Merger

The Justice Department is advancing its antitrust probe of Google with a more specific focus on how its third-party advertising business works with advertisers and publishers. The DOJ is also posing more detailed questions to executives inside the company, its rivals, advertising agencies, ad technology companies and publishers among others. Those questions center around Google’s integration of its ad server with its ad exchange, and Google’s requirement for advertisers to use its tools to buy ad space on YouTube. Continue reading DOJ’s Probe Into Google Focuses on Third-Party Ad Tools

At the World Economic Forum in Davos, major tech players such as Alphabet, Apple, Facebook and Microsoft asked lawmakers for regulations they once fought. Facing antitrust probes and pushback on AI, privacy and encryption among other issues, these companies believe laws are inevitable and want to have a role in creating them. They also fear a patchwork quilt of global laws. Most recently, the Justice Department sparred with Apple over its request for help to unlock the iPhones of the Saudi Arabian naval trainee who killed three people in Florida. Continue reading Big Tech Firms Call For Regulation, Lobby Specific Policies

Big Tech is now one of the biggest lobbying groups in Washington, D.C. Facebook posted the greatest increase in spending last year, followed by Amazon, Apple and Microsoft. By increasing spending in lobbying, the companies hope to influence privacy legislation, pursue government contracts and rebut charges of unfair competition. Alphabet is the only Big Tech company to reduce its spending for lobbying in 2019, by 44 percent to $11.8 million. It also ended its relationship with lobbyists at six outside firms. Continue reading Big Tech Firms Increase Spending to Influence Lawmakers

According to six sources, in response to FBI concerns, Apple dropped the plan to allow iPhone users to encrypt backups in its iCloud service. Although this took place two years ago, it is just now being reported. Stress between Apple’s stance on privacy and law enforcement’s push to have access to its phones re-emerged a few weeks ago when a Saudi Air Force officer killed three Americans at Naval Air Station Pensacola. U.S. attorney general William Barr and President Donald Trump urged Apple to unlock the killer’s two iPhones. Continue reading Apple Drops iCloud Encryption Plan Based on FBI Concerns

Universal Pictures Home Entertainment and Warner Bros. Home Entertainment inked a deal to form a joint DVD distribution venture in North America, for library titles, TV content and new releases. The pact, slated to be operational by Q1 2021, will last through 2031. Universal Pictures Home Entertainment president Eddie Cunningham will lead the venture, which will include executives from both studios. The two studios also signed license agreements for DVD distribution in countries outside of North America. Continue reading Universal, Warner Bros. Plan DVD Distribution Joint Venture