Government Considering Lawsuits Against Facebook, Google

According to sources, the Federal Trade Commission — after investigating concerns about Facebook’s efforts to stifle competition — may be readying an antitrust lawsuit by the end of the year. The same sources said, however, that the FTC doesn’t always bring a case after making preparations to do so and that no final decision has been made. Meanwhile, a bipartisan group of senators has put Google in the crosshairs regarding its dominance in the chain of technologies connecting digital publishers with advertisers. Continue reading Government Considering Lawsuits Against Facebook, Google

China Presents Global Security Initiative to Counter U.S. Plan

Chinese foreign minister Wang Yi debuted an initiative to create standards for global data security, one month after the U.S. introduced the “Clean Network” program to protect data from “malign actors, such as the Chinese Communist Party.” U.S.-China relations have been deteriorating over trade issues and U.S. claims that Chinese technology threatens U.S. national security. Wang stated that “a certain country” is “bent on unilateral acts” and that “such blatant acts of bullying must be opposed and rejected.” Continue reading China Presents Global Security Initiative to Counter U.S. Plan

Antitrust Officials Focus on Google’s Advertising Ecosystem

In its antitrust investigation of Google, the U.S. Department of Justice and state attorneys general are looking at whether the Big Tech company engages in “tying,” a practice of bundling products together with the aim of blocking competition. According to sources, the government officials have questioned executives at competing companies about Google’s Network, the division that sells end-to-end digital advertising services, and whether it offers advertisers enticing terms to buy into its complete ecosystem. Continue reading Antitrust Officials Focus on Google’s Advertising Ecosystem

Big Five Tech Companies Dominate the Rise in Stock Market

The S&P 500 achieved record heights via the 37 percent rise in shares of the Big Five tech companies in the first seven months of 2020. Apple, Amazon, Alphabet, Microsoft and Facebook, the five largest publicly traded companies in the U.S., now account for 20 percent of the entire stock market’s total value. Meanwhile, according to Credit Suisse, all other stocks, fell a combined 6 percent. Apple’s valuation hit $2 trillion, the first U.S. company to do so, and only 21 weeks after its $1 trillion valuation. Continue reading Big Five Tech Companies Dominate the Rise in Stock Market

Some DOJ Lawyers Warn of a ‘Rush’ to Bring Google Lawsuit

The Justice Department and Attorney General William Barr plan to bring an antitrust lawsuit against Google as soon as this summer, but not all of the DOJ staffers are happy with what they say is an “aggressive timeline.” Critics believe that the case isn’t ready for trial and that they need more time to determine if the “millions of pages of documents” contain enough evidence to win the case. But Deputy Attorney General Jeff Rosen stated that the case is “a major priority” and the DOJ is “going full-tilt.”

Continue reading Some DOJ Lawyers Warn of a ‘Rush’ to Bring Google Lawsuit

Big Tech Companies Are Thriving Despite the Current Climate

In the face of the COVID-19 pandemic, the wares and services of Big Tech companies such as Amazon, Apple and Facebook have become more indispensable than ever. As such, they are thriving. Amazon, for example, reported $88.9 billion in sales, with profits doubling to a record $5.2 billion in the quarter ending June, even though it spent $4 billion on its supply chain and worker safety in that time frame. Apple marked an 11 percent increase in quarterly sales, and Facebook sales rose 11 percent to $18.7 billion. Continue reading Big Tech Companies Are Thriving Despite the Current Climate

India Hails Google’s New Fund but Plans to Regulate Big Tech

About half of India’s 1.3 billion people are not yet online, and Google hopes to improve its profile there with a new $10 billion Google for India Digitization Fund. The tech tech giant plans to invest in the country over the next five to seven years via equity investments and partnerships. But a recent government-ordered report urged India to create a data regulator position to oversee “the sharing, monetization and privacy of information collected online.” The report names Google (among other companies) as “squeezing new entrants and startups.” Continue reading India Hails Google’s New Fund but Plans to Regulate Big Tech

Loon and Telkom Kenya Provide Internet Service via Balloons

Loon, a California-based unit of Alphabet, and Telkom Kenya debuted 4G Internet service in central and western Kenya, a 31,000-square-mile area that includes the capital Nairobi. In preparation, over the last few months Loon launched 35 balloons 12 miles into the sky, above commercial airplanes. Previously, Loon provided Internet service via balloons in Puerto Rico after Hurricane Maria destroyed all the cell towers in 2017. Telecom executives are watching to see if Loon’s technology is reliable and profitable. Continue reading Loon and Telkom Kenya Provide Internet Service via Balloons

Big Tech Firms Face More EU Scrutiny, Facebook Loses Case

The European Union increased its efforts to regulate major U.S. technology companies, including Amazon, Apple and Google, with a new tool that allows it to investigate any potential antitrust issue and force changes without proving illegality. EU antitrust head Margrethe Vestager warned that the tech behemoths potentially risk being broken up as a “last resort” if they don’t adhere to the rules. Meanwhile, a German high court ruled against Facebook finding it abused its social media dominance to illegally harvest user data. Continue reading Big Tech Firms Face More EU Scrutiny, Facebook Loses Case

Google Plans Changes to How Long It Holds on to User Data

Google disclosed that it had changed its policy regarding how long it will hang on to users’ search data. Last year, the company introduced an option that allowed users to automatically delete data related to Internet searches, requests made to Google Assistant and location history after three months or 18 months. Beginning now, Google’s default policy is to automatically delete location history, voice recordings and web/app activity on new accounts after 18 months. The settings on existing accounts will remain the same. Continue reading Google Plans Changes to How Long It Holds on to User Data

Aussie Court Rules Publishers Liable for Facebook Comments

An Australian court ruled that newspapers and TV stations that post articles on Facebook will be considered publishers of the comments that Facebook users post, and therefore liable for them. Defendants in the original lawsuit — among them News Corp. and the Sydney Morning Herald — are considering an appeal. These two outlets noted that, “today’s decision means the media cannot share any story via Facebook without fear of being sued for comments which they did not publish and have no control over.” Continue reading Aussie Court Rules Publishers Liable for Facebook Comments

Alphabet and YouTube Ad Revenue Is Impacted by Pandemic

In Q1 2020, YouTube reported $4.04 billion in ad revenue, up 33 percent from 2019. Last year, YouTube earned $15.15 billion in ad revenue, up 36 percent. Its parent company Alphabet — which first broke out numbers for YouTube in Q4 2019 — generated $41.16 billion in revenue, a 13 percent year-over-year growth, with an adjusted net income of $6.84 billion or $9.87 per share. Those figures exceeded analyst expectations for revenue of $40.38 billion, but missed its EPS of $10.33; shares rose 8+ percent in after-hours trading. Continue reading Alphabet and YouTube Ad Revenue Is Impacted by Pandemic

Facebook Ad Sales Pick Up, Resulting in Strong Q1 Revenue

With the coronavirus pandemic, advertising plummeted on many online sites, including social media giant Facebook. The company’s chief financial officer David Wehner declared that factor “largely attributable” to the 16 percent decline in average price of ads purchased in March. But gaming and e-Commerce companies picked up the slack by spending more, taking advantage of less competition in the company’s ad auctions. As a result, Facebook chief executive Mark Zuckerberg told analysts the company would “remain in growth mode.” Continue reading Facebook Ad Sales Pick Up, Resulting in Strong Q1 Revenue

Pandemic Tests Big Tech Firms, Slows VC Money for Startups

This week, big tech companies such as IBM and Intel will report quarterly earnings, followed by Apple, Facebook, Alphabet, Amazon and Microsoft next week. Some companies — such as Amazon, Intel, Micron Technology and Microsoft — are doing well, even growing, whereas Facebook and Alphabet deal with a dramatic plunge in advertising. Even Apple issued a “rare profit warning.” The pandemic is hitting startups particularly hard, as venture capital money dries up and they are forced to lay off staff. Continue reading Pandemic Tests Big Tech Firms, Slows VC Money for Startups

U.S. Moves to Hinder China Telecom and Links to Hong Kong

The Trump administration wants to revoke licenses used by China Telecom’s U.S. subsidiary to act as a common carrier, connecting domestic and international networks. The U.S. Department of Justice, leading the departments of Defense and Homeland Security, requested that the FCC permanently rescind these licenses. The administration stated that China’s technology interests are a threat to U.S. security. Citing the same concerns, U.S. gave Google permission to open a high-speed Internet link to Taiwan but not Hong Kong. Continue reading U.S. Moves to Hinder China Telecom and Links to Hong Kong

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