Epic Games has prevailed against Google in U.S. District Court, scoring a victory in the 2020 lawsuit filed against the search giant over antitrust behavior related to its Google Play store. Epic claims that Google leverages control over the Android mobile operating system to require content creators who want a presence on an estimated 71 percent of the world’s smartphones to sell through the Play Store. The verdict “proves Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation,” Epic wrote of the win. Google disagrees with the ruling and says it plans to appeal. Continue reading Court Rules in Favor of Epic Games in Google Antitrust Case

Right on schedule and after a rocky start, Microsoft has closed the $69 billion acquisition of Activision Blizzard that regulators in the U.S. and UK had challenged. Big Tech is celebrating the move as a signal that their cash reserves can still be used to target expansion. The deal is consumer tech’s largest since AOL purchased Time Warner in a 2000 deal valued at more than twice that. Until now, Microsoft’s games unit, built around Xbox, has been a modest part of the company’s immense portfolio — representing just over 7 percent of total sales, or revenue of about $15 billion. Continue reading Microsoft Closes $69 Billion Acquisition of Activision Blizzard

The UK’s Competition and Markets Authority has issued a report featuring seven proposed principles that aim to “ensure consumer protection and healthy competition are at the heart of responsible development and use of foundation models,” or FMs. Ranging from “accountability” and “diversity” to “transparency,” the principles aim to “spur innovation and growth” while implementing social safety measures amidst rapid adoption of apps including OpenAI’s ChatGPT, Microsoft 365 Copilot, Stability AI’s Stable Diffusion. The transformative properties of FMs can “have a significant impact on people, businesses, and the UK economy,” according to the CMA. Continue reading UK’s Competition Office Issues Principles for Responsible AI

Paramount Global has agreed to sell publishing giant Simon & Schuster to private equity firm KKR for $1.62 billion in an all-cash transaction. Paramount Global President and CEO Bob Bakish said the transaction “delivers excellent value to Paramount shareholders while also positioning Simon & Schuster for its next phase of growth with KKR.” On closing, expected in the first half of 2024, Simon & Schuster will become a standalone private company under the continued leadership of President and CEO Jonathan Karp and COO and CFO Dennis Eulau. Continue reading KKR Will Pay $1.62 Billion for Paramount’s Simon & Schuster

Meta Platforms has agreed to sell Giphy to Shutterstock for $53 million in net cash, winding down a yearslong legal battle with the UK Competition and Markets Authority, which ordered the divestiture. Shutterstock, which licenses photos and other image content, said Giphy adds 1.7 billion in daily mobile users and global partners that include Meta’s own Instagram, Facebook and Whatsapp in addition to Microsoft, Samsung, Twitter, TikTok, Slack and Discord. Meta acquired Giphy in 2020 for $315 million and was one year later ordered by the UK CMA to unwind the deal, citing antitrust issues. Continue reading Meta Platforms Is Selling Giphy to Shutterstock for $53 Million

European Union regulators have approved Microsoft’s proposed $68.7 billion purchase of game company Activision Blizzard. The European Commission accepted Microsoft’s remedies for staving off antitrust concerns in the area of cloud gaming. Microsoft said it would guarantee at least 10 years of access to Activision titles on third party cloud services, which satisfied the 27-nation bloc’s executive body. The EU announced its decision just weeks after UK lawmakers blocked the acquisition, and in the U.S. Microsoft is fending off efforts by the Federal Trade Commission to cancel the deal. Continue reading EU Greenlights Microsoft Offer to Purchase Activision Blizzard

A bipartisan Senate group is supporting a bill aimed at reducing the online advertising dominance of Big Tech platforms like Google, Meta and others. Introduced last week by Mike Lee (R-Utah) and championed by Elizabeth Warren (D-Massachusetts), the AMERICA Act — short for Advertising Middlemen Endangering Rigorous Internet Competition Accountability Act — the bill prohibits companies that “process more than $20 billion in digital ad transactions” from owning multiple parts of the digital ecosystem presenting the advertisements. Proponents say the AMERICA Act could radically reshape the advertising framework that underpins the Internet economy. Continue reading AMERICA Act Proposes to Curtail Big Tech’s Ad Dominance

If it overcomes regulatory hurdles and completes its $75 billion acquisition of Activision Blizzard, Microsoft plans to launch a mobile app store for games to challenge Apple and Google, according to Phil Spencer, CEO of Microsoft Games. The EU’s Digital Markets Act mandates that the makers of Android devices and iPhones must make their mobile platforms accessible to app stores by third parties, with enforcement beginning in March 2024. That means Microsoft could open a mobile app store as soon as next year, adapting the company’s Xbox and Game Pass apps to accommodate sales to mobile devices. Continue reading Microsoft Plans to Launch Its Own Mobile Games App Store

The European Union’s implementation of the Digital Services Act (DSA) and the Digital Markets Act (DMA) is poised to trigger worldwide changes on familiar platforms like Google, Instagram, Wikipedia and YouTube. The DSA addresses consumer safety while the DMA deals with antitrust issues. Proponents say the new laws will help end the era of self-regulating tech companies. Although as in the U.S., the DSA makes clear that platforms aren’t liable for illegal user-generated content. Unlike U.S. law, the DSA does allow users to sue when tech firms are made aware of harmful content but fail to remove it. Continue reading Changes Ahead for Big Tech When EU Regulations Enforced

Microsoft has signed agreements giving Nintendo and Nvidia access to Activision Blizzard titles including from the popular “Call of Duty” franchise in a bid to advance its proposed $75 billion purchase of the game firm. The acquisition is opposed by some regulators in the U.S. and Europe on antitrust grounds. Microsoft’s offer to provide valuable IP to platforms that compete with its Xbox aims to quell such concerns. While Nvidia and Nintendo appear to have capitulated as a result of the new contingency, guaranteed for at least 10 years, Sony Interactive Entertainment remains a holdout. Continue reading Microsoft Elevates Activision Deal with ‘Call of Duty’ Promise

President Biden’s second State of the Union speech Tuesday night included calls for stronger consumer privacy protections and tougher antitrust laws in direct challenge to what many perceive as the unchecked power of Big Tech. “Pass bipartisan legislation to strengthen antitrust enforcement and prevent big online platforms from giving their own products an unfair advantage,” Biden stated, urging Congress to “stop Big Tech from collecting personal data on kids and teenagers online, ban targeted advertising to children, and impose stricter limits on the personal data these companies collect on all of us.” Continue reading Biden Challenges Big Tech, Calls for Children’s Online Safety

Anticompetitive practices, outrageous ticket fees and poor customer service were among the allegations leveled at Live Nation Entertainment Tuesday at a contentious Senate Judiciary Committee Hearing over botched Taylor Swift concert ticket presales by the company’s Ticketmaster subsidiary. Senator Amy Klobuchar (D-Minnesota) called the Live Nation relationship to Ticketmaster “the definition of monopoly,” adding that venues fearful of losing the company’s concerts don’t have the ability to push back because Live Nation is “so powerful that it doesn’t even need to exert pressure, it doesn’t need to threaten because people just fall in line.” Continue reading Senators Grill Live Nation on Antitrust After the Swift Debacle

Insider Intelligence forecasts that 2023 will mark the first time since 2014 that the combined digital advertising market share for Meta Platforms and Alphabet will fall below 50 percent, indicating erosion of their “duopoly.” Projection of a 2.5 percent drop due to increased competition from rivals including Amazon, Apple, TikTok and Microsoft will put the pair at a projected 48.4 percent this year, according to the research group. While the trajectory is likely to garner negative media and investor attention, it is a plus from the perspective of fending off global antitrust attacks. Continue reading Digital Ad Share for Meta, Alphabet to Drop Below 50 Percent

The European Commission has formed a “preliminary view” that Meta Platforms has breached EU antitrust law by manipulating competition in the online classified advertising markets on Facebook and Instagram. The Commission took particular umbrage with the bundling of Meta’s Facebook with access to Facebook Marketplace, which allows users to buy and sell items. Meta could face a fine as high as $11.8 billion if the allegations of self-dealing prove true. The Commission also claims Meta is imposing unfair conditions on Marketplace competitors for its own benefit. Continue reading EU Pushes Its Antitrust Case Against Facebook Marketplace

Apple is planning to allow app sideloading in response to the European Union’s Digital Markets Act, set to take effect in 2024. The move reverses long-held policies that were a source of ire to many Apple developers as well as global regulators. It is believed the new approach could spillover to other regions where lawmakers are at various stages of reining in Big Tech, with companies including Google and Meta Platforms also in the crosshairs. The news sent shares up among companies that offer dating apps, including Match Group and Bumble. Spotify also got a bump. Continue reading Apple Plans to Open iOS to Third-Parties Thanks to EU Laws