After a period of growing tension over their contract, Apple finally told Qualcomm, which provides the iPhone’s main components, that it will no longer pay licensing revenue to iPhone contract manufacturers. Apple is Qualcomm’s main source of profit, and a permanent end to this technology licensing revenue would be damaging to the chip manufacturer. This contract has been in force since Apple debuted the iPhone in 2007. As a result of Apple’s move, Qualcomm has downgraded its recently released forecasts. Continue reading Apple Stops Licensing Payments to Chip Provider Qualcomm

Roku seems to be gearing up for a battle regarding net neutrality, as the FCC is expected to repeal or change regulations that require ISPs to treat all Internet traffic equally. Such changes could make it more challenging and potentially more expensive for Roku and others to provide services at top download speeds. In a first for the company, Roku has hired two DC lobbyists to focus on net neutrality issues. The President Obama-era net neutrality rules treat telecoms similarly to utilities. Those who support the regulations believe they are necessary to prevent service providers from throttling speeds or charging media companies more for content delivery. Continue reading Roku Hires Lobbyists, Prepping for Changes to Net Neutrality

Google is among the biggest buyers of its own ads and the Silicon Valley titan is increasingly pushing its own hardware products — from Nest smart-home thermostats to the new Pixel phones — on its own site. Now a recent study shows that Google gives its own ads and those of its affiliate companies the most prominent placement nearly all the time. Google isn’t the only company competing with its customers for online ad space; Facebook and Microsoft fall into that same category. The digital advertising industry is valued at $187 billion. Continue reading Google Competes with Customers for Prime Online Ad Space

Former rivals DraftKings and FanDuel announced they plan to merge their daily fantasy sports operations into one company, to be run by DraftKings CEO Jason Robins. FanDuel chief exec Nigel Eccles will become chairman. The board will include three directors each from DraftKings and FanDuel, plus an independent director, while headquarters will be divided between New York and Boston offices. The deal, which aims to increase innovation by freeing up money, is expected to close during the second half of next year. Continue reading Daily Fantasy Sports: FanDuel and DraftKings Agree to Merge

Google formally rebutted two antitrust charges made by the European Commission (the European Union’s executive body). The Commission claims that Google has used its search engine to boost Google Shopping, its price comparison service, and AdSense, its ad placement service. A third European Union antitrust suit claims that Google’s mobile OS is a ‘Trojan horse’ to promote its own products and services, injuring potential rivals. The EU says it “cannot at this stage prejudge the final outcome of the investigation.” Continue reading Google Offers Formal Response to Two EU Antitrust Charges

The European Commission has issued a $14.5 billion tax penalty against Apple, claiming the tech giant owes unpaid taxes following a sweetheart deal with Ireland that constitutes illegal state aid. Apple and Ireland both have plans to appeal the decision. “We never asked for, nor did we receive, any special deals,” wrote Apple CEO Tim Cook. “We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don’t owe them any more than we’ve already paid.” The Wall Street Journal suggests the “decision is likely to aggravate trans-Atlantic tensions over the investigations into tax deals brokered between U.S. multinational corporations and individual European countries.” Continue reading European Commission: Apple Must Pay Tax Penalty to Ireland

Against an environment of social anxiety and national pride, Europe has been trying to limit the reach and influence of American tech giants, enacting privacy regulations and launching antitrust investigations. Now, the European Commission is contemplating rules that would require some of these U.S. companies to carry — and even fund — local content in various local markets. That would impact Netflix, Amazon Prime and HBO among others, which would be required to allot 20 percent of local content to European-made content. Continue reading EU Pushes for U.S. Tech Companies to Invest in Local Content

European officials have charged Google with violating competition rules by favoring Android over rival mobile software. Europe’s competition chief Margrethe Vestager accused the tech giant of unfairly promoting its own mobile search and Chrome browser with phone makers. “We believe that Google’s behavior denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players,” said Vestager. From Brussels, the European Commission issued a release stating that Google has “abused its dominant position by imposing restrictions on Android device manufacturers and mobile network operators.” Continue reading European Officials Accuse Google of Breaking Antitrust Rules

Google just indicated one of its future initiatives when Amit Singhal, who oversees the Google search engine, stepped down, and was replaced by John Giannandrea, who oversees Google’s work in artificial intelligence and, by association, what’s called “deep learning.” Google has already used deep learning to reinvent Search, via RankBrain, a deep learning system to generate responses to search inquiries. As of October of last year, RankBrain has grown to handle a “large fraction” of the queries to the search engine. Continue reading Google Sees Future in Artificial Intelligence and Deep Learning

The Seattle City Council voted 9-0 to approve a bill allowing Uber and Lyft drivers to unionize. The city’s mayor, Ed Murray, who supports the workers’ right to organize, won’t sign due to his concerns about the unknown costs of administering the collective bargaining process. Even without his signature, it will become law, the first victory for the App-Based Drivers Association (ABDA) of Seattle, the organization of on-demand contract workers who joined with the local Teamsters union to lobby for the legislation. Continue reading Seattle’s United Vote Greenlights Uber and Lyft Driver Unions

Initiating its planned merger with Alcatel-Lucent, first announced in April, Nokia began its share-exchange offer with that company’s shareholders in Paris and London. Nokia is paying €15.6 billion ($16.6 billion) for Alcatel-Lucent, with the idea that combining the two companies’ expertise in telecom and Internet gear will help it better compete in a global economy. Nokia not only faces competition from new players such as China’s Huawei Technologies but from Ericsson, which just struck an alliance with Cisco. Continue reading Nokia Initiates Share-Exchange Offer in Alcatel-Lucent Merger

Ericsson and Cisco Systems, leaders in mobile and Internet equipment respectively, are forming an alliance to beat back the competition, enjoy synergies in the mobile market and target the growing fields of Internet of Things and 5G. The alliance isn’t a merger, but in many ways acts like one: Ericsson and Cisco plan to integrate their existing equipment, combine some sales and consulting areas and perhaps develop new hardware and services. Competitors include Chinese company Huawei and Nokia, which just bought Alcatel-Lucent. Continue reading New Ericsson, Cisco Alliance to Impact Internet of Things, 5G

Facebook and Yahoo just made strategic deals with regard to search. Facebook, which unsuccessfully attempted search with its Graph Search feature in 2013, states it has now indexed more than two trillion posts, promoting it as a way to follow news discussions in real time. Yahoo just inked a non-exclusive deal with Google to provide search results and ads; antitrust regulators struck down a similar deal in 2008. Yahoo renegotiated an exclusive deal with Microsoft’s Bing to make this latest deal. Continue reading Facebook and Yahoo Attempt to Expand Search Capabilities

Brussels, where the European Union is primarily based, is becoming a mecca for U.S. tech firms to plead their cases. That’s because the EU has taken a hard stance on issues of antitrust and privacy among others, becoming the world’s first regulator to confront Google on antitrust charges… twice. The unintended result is that U.S. tech companies are now hiring full-time lobbyists to protect their interests. And aggrieved U.S. firms go there to lodge complaints that might otherwise have gone to the Federal Trade Commission. Continue reading EU Regulators Gain Regulating Clout With U.S. Tech Companies

Google, which enjoyed enormous popularity and usage numbers in the European Union, now suffers blowback from information revealed in the NSA documents leaked by Edward Snowden. Not long ago, free-speech advocates in many countries applauded Google for shutting down its China site rather than face censorship, and Google has also been seen on the right side of history during the Arab Spring and in Syria. But now, the EU is accusing the tech giant of abusing its power — and it is looking for payback via an antitrust suit. Continue reading Google’s Fall From Grace in EU Culminates in Antitrust Suit