Big Tech Faces Scrutiny by Regulators in the U.S and Abroad

The House Antitrust Subcommittee is about to release a report of its 15-month investigation of Google, Apple, Amazon and Facebook. The lawmakers gathered 1+ million documents from the companies in question and their rivals. The subcommittee, chaired by Congressman David Cicilline (D-Rhode Island), also met with the four companies’ chief executives. Meanwhile, the European Union plans to ban tech companies from “preferencing” their own services and apps, and China is planning its own antitrust investigation of Google. Continue reading Big Tech Faces Scrutiny by Regulators in the U.S and Abroad

Smaller Rivals Lose Google Search Engine Auction in the EU

To comply with a 2018 EU antitrust decision, Google now provides Android OS users in Europe a “choice” screen that lists competing search engines to pick as the device’s default. The problem is that numerous smaller search engines that have popular followings in Europe didn’t win spots in large European countries in the latest auction and therefore don’t appear on that list of choices. DuckDuckGo, for example, a U.S.-based search engine that doesn’t collect personal data, only won the auction in four small European countries. Continue reading Smaller Rivals Lose Google Search Engine Auction in the EU

App Developers Team to Oppose Apple, Google Store Rules

Thirteen app developers including Basecamp, Epic, Match Group and Spotify formed the nonprofit Coalition for App Fairness to oppose some of the policies of Apple’s App Store and the Google Play Store. Coalition spokeswoman Sarah Maxwell said the impetus for forming the group was to recognize “we’re not alone in this, and maybe what we should do is advocate on behalf of everybody.” Apple and Google have been scrutinized by regulators in the U.S. and the European Union; the Justice Department is expected to file an antitrust suit against Google shortly.

Continue reading App Developers Team to Oppose Apple, Google Store Rules

Apple Under Increasing Pressure to Change App Store Fees

Apple’s 30 percent commission on digital goods and services in its App Store has raised the ire of numerous companies, including Netflix and Spotify, which have formed a coalition to promote legal and regulatory changes for app marketplaces. Apple and Epic Games are battling the issue in court, and Spotify filed an antitrust suit in Europe last year, with claims that it unfairly harms competitors. Apple is, however, giving a brief COVID-19-related reprieve on fees to some companies selling virtual experiences. Continue reading Apple Under Increasing Pressure to Change App Store Fees

Facebook Pushes Back Against Regulators on Data Transfer

Facebook has upped the ante in its showdown with European regulators, stating that an unfavorable decision by Ireland’s Data Protection Commission (DPC) would leave the company no choice but to leave the region. Facebook Ireland’s head of data protection/associate general counsel Yvonne Cunnane is referring to the DPC’s preliminary order to stop the transfer of its European users’ data to servers in the U.S., citing fears of government surveillance. In response, Facebook filed a lawsuit challenging DPC’s ban. Continue reading Facebook Pushes Back Against Regulators on Data Transfer

Nvidia Acquisition of SoftBank’s Arm Brings Rewards, Risks

Nvidia agreed to pay $40 billion — $21.5 billion in stock, $12 billion in cash — for SoftBank’s Arm division, a chip designer based in the United Kingdom. Nvidia will pay $2 billion on signing, and SoftBank will also receive $5 billion in cash or stock should Arm’s performance meet specific standards. Arm employees will receive $1.5 billion in Nvidia stock. This will be the biggest semiconductor industry deal since SoftBank paid $31.4+ billion to purchase Arm in 2016. The deal will also increase competition between Nvidia and Intel. Continue reading Nvidia Acquisition of SoftBank’s Arm Brings Rewards, Risks

Ireland Orders Facebook to Stop Moving EU Data to the U.S.

Ireland’s Data Protection Commission sent Facebook a preliminary order to cease data transfers of its European Union users to the U.S., a move confirmed by Facebook vice president of global affairs Nick Clegg. In doing so, EU regulators have taken a major step to enact a July ruling forbidding such transfers. Facebook would have to partition the data it collects from European users or stop serving them altogether. Otherwise, Ireland’s commission can fine Facebook up to $2.8 billion, 4 percent of its annual revenue. Continue reading Ireland Orders Facebook to Stop Moving EU Data to the U.S.

Apple Privacy Controls Are Likely to Impact Digital Publishers

Apple is upgrading its operating system with privacy controls that reportedly have some advertisers worried. Set to debut in the fall, Apple’s iOS 14 will require apps to ask its users if they want their Internet activity tracked. Many digital publishers are concerned that most users will opt out, which would prevent them from personalizing ads and thus result in a slump in revenue. Facebook has spoken out, pointing out that it will no longer be able to collect a users’ advertising identifiers (IDFA) without their permission. Continue reading Apple Privacy Controls Are Likely to Impact Digital Publishers

International Agencies Arrest Members of Global Piracy Ring

Three members of the Sparks Group, a sophisticated global piracy ring, were arrested on federal charges of international piracy of movies and TV shows distributed online prior to their release dates, said acting U.S. attorney for the Southern District of New York Audrey Strauss. British citizen George Bridi was arrested in Cyprus, American Jonatan Correa was arrested in Olathe, Kansas and a third man, Umar Ahmad of Norway, is still being sought. TorrentFreak founder Ernesto van der Sar said, “the charges are significant.” Continue reading International Agencies Arrest Members of Global Piracy Ring

Oracle Joins Microsoft and Twitter as Latest to Pursue TikTok

Oracle Corporation is making a bid to buy the U.S. operations of TikTok, and President Trump has voiced his approval. Oracle cofounder and chair Larry Ellison held a fundraiser for Trump at his house earlier this year, and Oracle chief executive Safra Catz worked on Trump’s transition team in 2016. According to sources, Oracle has engaged in some preliminary conversations with minority TikTok owners, but it is unknown if the talks have advanced. Microsoft has also been in talks with TikTok and Twitter has explored a purchase. Continue reading Oracle Joins Microsoft and Twitter as Latest to Pursue TikTok

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

European Union Adopts New Strategy to Contain Tech Firms

The European Union has led the movement to leverage antitrust laws in an effort to limit the power of Big Tech companies from the United States. Now, convinced that the impact of these efforts did not go far enough to change behavior, they are pursuing a different tack, this time drafting regulations that address specific business practices. But even as the chief executives of Amazon, Apple, Facebook and Google were grilled in a Congressional hearing last week, they reported skyrocketing revenue and billions in profit. Continue reading European Union Adopts New Strategy to Contain Tech Firms

Big Tech Executives Are Grilled During Congressional Hearing

At a congressional hearing this week, the chief executives of Amazon, Apple, Facebook and Google endured frustration and hostile criticism from bipartisan lawmakers. House Antitrust Subcommittee chair David Cicilline (D-Rhode Island) started by saying that, “Our founders would not bow before a king. Nor should we bow before the emperors of the online economy,” referring to Amazon’s Jeff Bezos, Apple’s Tim Cook, Facebook’s Mark Zuckerberg and Google’s Sundar Pichai. The companies are collectively worth almost $5 trillion. Continue reading Big Tech Executives Are Grilled During Congressional Hearing

Big Tech Firms Step Up Acquisitions Despite Antitrust Probes

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

Google Ramps Up Online Shopping, Faces Scrutiny in Europe

Google has tried to compete with Amazon in online shopping four times since 2013. But, with shoppers stuck at home during the COVID-19 pandemic, the company now sees another opportunity. To lure sellers, Google said it would waive sales commissions, which range from 5 percent to 15 percent, and let retailers use third-party payment and order management services like Shopify. In the European Union, meanwhile, Google is facing the demand that it “make major concessions” related to its $2.1 billion purchase of Fitbit, including how it uses customer data for search and advertising. Continue reading Google Ramps Up Online Shopping, Faces Scrutiny in Europe