Nvidia Acquisition of Arm Faces FTC Probe, Big Tech Critics

As Nvidia moves to close its $40 billion deal to acquire Arm Holdings, tech companies Google, Microsoft and Qualcomm are saying the deal will harm competition and are asking for regulatory intervention. The UK-based Arm, which licenses its chip technology to Amazon, Apple, Huawei Technologies, Intel and Samsung Electronics among others, is known as the Switzerland in the semiconductor industry because it licenses its technology to companies rather than competes with them. Critics fear that Nvidia would change this policy or raise the cost. Continue reading Nvidia Acquisition of Arm Faces FTC Probe, Big Tech Critics

Senator Klobuchar Calls for Tough New Antitrust Legislation

As incoming head of the Senate antitrust subcommittee, Senator Amy Klobuchar (D-Minnesota) renewed her call to legislate major changes to U.S. trust laws. Specifically, the legislation would prevent companies that dominate in a sector from purchasing other companies unless they can prove the deals don’t “create an appreciable risk of materially lessening competition.” Klobuchar suggested such changes in Congress’ previous session and Republicans largely rebuffed them. Democrat control of the Senate could improve the odds of passage. Continue reading Senator Klobuchar Calls for Tough New Antitrust Legislation

Facebook Parries Apple’s Privacy Policy with Its Own Prompt

In response to Apple’s changes that require users’ consent to track their behavior, Facebook — which claims the privacy change will make targeted advertising too difficult — has responded with its own solution. The social media company plans to introduce an in-app prompt that asks users to give permission to use data collected from apps and third-party websites and provides information on how the data is used for personalized ads. That screen will appear with the Apple prompt detailing its new privacy policy. Continue reading Facebook Parries Apple’s Privacy Policy with Its Own Prompt

Amazon’s Jeff Bezos Steps Down After 26 Years at the Helm

Amazon chief executive Jeff Bezos is stepping down from the role he has held since he started the Big Tech company 26 years ago and will assume the role of executive chairman. Amazon Web Services head Andy Jassy will replace Bezos as Amazon’s new chief executive. Bezos hands over the reins during a time in which COVID-19 has helped the company achieve record-breaking sales, while it also faces regulatory and legal investigations. Personally, he vies with Tesla chief executive Elon Musk as the world’s wealthiest person. Continue reading Amazon’s Jeff Bezos Steps Down After 26 Years at the Helm

Amazon Exceeds $100 Billion in Quarterly Sales for First Time

Amazon’s robust holiday shopping quarter garnered $125.5 billion in sales and net income of $7.2 billion, the first time the company reached $100+ billion in quarterly revenue, and only days after Apple achieved the same milestone. Amazon amped up sales when it moved its two-day Prime Day shopping event from summer to October. The company’s overall 2020 sales hit $386.1 billion, a 38-percent year-over-year jump. According to analysts, e-commerce grew about 50 percent during the last year due to the coronavirus pandemic. Continue reading Amazon Exceeds $100 Billion in Quarterly Sales for First Time

Zuckerberg Anticipates Broader Competition with Rival Apple

Facebook chief executive Mark Zuckerberg has identified Apple as one of the company’s biggest rivals, even as it posted record-breaking revenue and profit in Q4. The two companies have clashed over data collection, app-store fees and, most recently, Apple’s plan to enable users to opt-out of data collection by third-party apps. That disadvantages Facebook, which has become an online advertising giant. Zuckerberg noted that Apple’s move will interfere with Facebook’s ability to target ads to its 1.85 billion daily users. Continue reading Zuckerberg Anticipates Broader Competition with Rival Apple

Bipartisan Efforts Underway to Regulate Big Tech Companies

Senator Amy Klobuchar, once an avid supporter of Big Tech companies and now Senate antitrust panel leader, is expected to play a role in bipartisan efforts to impose regulations on those companies’ market power and data privacy policies. Facebook and Google face federal and state allegations of anticompetitive behavior and Amazon and Apple are under investigation for antitrust violations. President Biden and others in his administration have vowed to hold Big Tech accountable for users’ speech on their sites. Continue reading Bipartisan Efforts Underway to Regulate Big Tech Companies

Commerce Chief Nominee Scrutinizes China, 5G and Internet

Rhode Island governor Gina Raimondo, President Biden’s nominee to head the Commerce Department, described some of her positions during a Senate confirmation hearing. She revealed that she will take a “very aggressive” stance against China’s “unfair” trade practices stressing the need to develop a “whole-of-government response” in concert with U.S. allies. Raimondo also called for a national 5G spectrum policy and stated she will pursue changes to Section 230 of the Communications Decency Act. Continue reading Commerce Chief Nominee Scrutinizes China, 5G and Internet

State Attorneys General File Another Lawsuit Against Google

Google is now facing a third antitrust suit. Two months after the Justice Department, joined by 46 state attorneys general, filed suits charging anticompetitive behavior, and only one day after 10 other state attorneys general accused the company of using its dominance to control advertising and overcharge publishers, another suit has landed. This suit, made up of a bipartisan group of 30 AGs, accuses the Big Tech giant of illegally manipulating search results to push competitors out of the way. Continue reading State Attorneys General File Another Lawsuit Against Google

Internet Platforms Say They’re Ready to Discuss Section 230

Facing a bipartisan push from Congress to change Section 230 of the Communications Decency Act, a liability shield against lawsuits for Internet platforms, tech companies have said they are now ready to discuss it. For 20+ years, Internet platforms have adamantly defended Section 230 but, in recent weeks, both Facebook chief executive Mark Zuckerberg and Twitter chief executive Jack Dorsey have voiced support for “updating” and/or “expanding” the law. Democrats and Republicans have threatened to repeal Section 230. Continue reading Internet Platforms Say They’re Ready to Discuss Section 230

Lawsuits Against Facebook Also Target Data Sharing via APIs

This week, the Federal Trade Commission and 46 state attorneys general filed lawsuits against Facebook for anticompetitive practices. But it is also looking at how Facebook leveraged user data to both lure and control third party developers, relying heavily on data sharing via application programming interfaces (APIs). MIT Initiative on the Digital Economy director Sinan Aral noted that the upcoming cases could set a precedent for any platform that shares data via an API and has conditions on that data sharing.

Continue reading Lawsuits Against Facebook Also Target Data Sharing via APIs

FTC and States File Lawsuits That Aim to Break Up Facebook

After an 18+ month investigation, the Federal Trade Commission and regulators from 46 states have officially accused Facebook of anticompetitive behavior by purchasing rivals. The separate lawsuits were filed in the U.S. District Court for the District of Columbia. Facebook currently owns three major messaging apps and the suits call for the company’s purchase of Instagram (for $1 billion in 2012) and WhatsApp (for $19 billion in 2014) to be undone. Since the acquisitions, both messaging apps have exploded in popularity. Continue reading FTC and States File Lawsuits That Aim to Break Up Facebook

Facebook Plans to Buy Customer Service Startup Kustomer

Facebook disclosed plans to buy Kustomer, a customer relationship management startup, in a deal valued by sources at close to $1 billion. Crunchbase stated the New York-based Kustomer has raised about $170 million in venture capital funding. Kustomer would help Facebook provide customer support on its main platform and its services such as WhatsApp, Instagram and Facebook Messenger. The deal, subject to regulatory scrutiny, comes as Facebook is already being investigated for its acquisition of startups as anticompetitive behavior. Continue reading Facebook Plans to Buy Customer Service Startup Kustomer

Amazon to Surpass Walmart as Top Global Private Employer

Amazon is on track to become the world’s largest private employer within two years. The company has added 427,300 more employees between January and October this year, for a total workforce of 1.2+ million around the world. Two years ago, its workforce was less than 650,000 people. The National Retail Federation reported that sales at Amazon, the top e-commerce player, will grow by as much as 30 percent compared with last year’s holiday season. The company has earmarked $500 million for employee holiday bonuses. Continue reading Amazon to Surpass Walmart as Top Global Private Employer

Lawsuits Against Facebook Likely Following Antitrust Probes

Sources said that state and federal investigators plan to bring antitrust charges against Facebook, with a focus on whether its acquisitions of Instagram and WhatsApp created an anticompetitive environment. Investigators examined how Instagram and WhatsApp changed after they were acquired and whether customers had fewer privacy protections. When Facebook purchased WhatsApp in 2014, it vowed to customers and regulators to preserve its strong privacy protections, but later tried to integrate user data into its other services. Continue reading Lawsuits Against Facebook Likely Following Antitrust Probes

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