By
Paula ParisiOctober 25, 2022
Microsoft is reportedly building an Xbox mobile store, challenging Apple and Google. The Redmond company’s pending Activision Blizzard deal is key to successful implementation of its mobile gaming strategy, which was previously hinted at and now comes to light in a filing with the UK Competition and Markets Authority, which requested additional information from Microsoft as part of its analysis of the $68.7 billion deal. In its filings, Microsoft says a “next generation” game store that “operates across a range of devices, including mobile” is significant impetus for the acquisition. Continue reading Microsoft’s New Gaming Strategy Includes Xbox Mobile Store
By
Paula ParisiOctober 20, 2022
The UK’s Competition and Markets Authority has rendered a final decision ordering Meta Platforms to sell its Giphy marketplace for animated GIFs. Meta acquired the U.S.-based Giphy in 2020. The CMA subsequently found the purchase anticompetitive, determining the move would stunt innovation in UK display advertising and limit social media choices for consumers. After Meta failed to decisively win an appeal, the matter went back to the CMA, which this week reaffirmed its earlier decision and ordered Giphy sold. Meta said in a statement it is “disappointed by the CMA’s decision,” but won’t pursue further appeal. Continue reading Meta Says It Will Sell Giphy per UK Competition Unit’s Order
By
Paula ParisiSeptember 20, 2022
Adobe announced it plans to purchase rival digital design suite Figma for $20 billion in cash and stock. The news was disclosed as part of its Q3 earnings report, which saw revenue of $4.43 billion, exceeding analysts’ expectations. Despite the healthy cashflow, Adobe says it may have to finance part of the deal, which will have to clear regulatory hurdles in a very pro-competition environment. Founded in 2011, Figma released its first product in 2015, leveraging the WebGL API to create real-time collaborative tools for web-based design teams “working together beyond company walls.” Figma lists Airbnb, Conde Nast and Github among its users. Continue reading Adobe Will Purchase Digital Design Rival Figma for $20 Billion
By
Paula ParisiSeptember 16, 2022
California attorney general Rob Bonta has filed an antitrust lawsuit against Amazon, claiming the e-tailer has managed to bend competition and pricing to its will. Only about 25 million of Amazon’s 147 million U.S. customers are domiciled in California, but if the measure succeeds it could impact regulations across the country and across the globe. “For years, California consumers have paid more for their online purchases because of Amazon’s anticompetitive contracting practices,” Bonta said Wednesday. “Amazon’s market dominance, allowing the company to make increasingly untenable demands on its merchants,” resulted in “higher prices and more control.” Continue reading California Attorney General Files Antitrust Suit Against Amazon
By
Paula ParisiSeptember 8, 2022
This past year, Big Tech has invested more than $95 million in lobbying initiatives designed to kill the American Innovation and Choice Online Act, which seeks to rebalance the power between consumers and major technology companies such as Amazon, Alphabet, Apple and Meta Platforms. In two years, the bill has advanced further than any similar U.S. legislative effort, but time is running out before midterm elections and the unknown of a potential shift in control of the House and/or Senate. Supporters of the measure say they currently have the votes needed for passage. Continue reading Big Tech Lobbying and Midterms Could Impact Antitrust Bill
By
Paula ParisiAugust 10, 2022
After a big victory passing CHIPS-plus, Congress recessed on Saturday with several technology goals pending. Among the outstanding items is a bipartisan antitrust bill that seeks to rein in the industry’s heavyweight players, a consumer privacy bill and confirmation of Gigi Sohn, a Biden administration nominee to the FCC, where net neutrality hangs in the balance. Although Senate Majority Leader Chuck Schumer (D-New York) has promised to fast track those votes immediately upon return September 6, the clock is winding down as November’s midterm elections may push Democrats out of power in one or both houses. Continue reading Congress Leaves Key Tech Legislation on Table Over Recess
By
Paula ParisiAugust 4, 2022
The nation’s largest publisher, Penguin Random House, was in federal court this week to defend itself against the Justice Department, which filed an antitrust lawsuit to block its acquisition of Simon & Schuster. The DOJ has been increasingly focused on antitrust and is hiring more trial lawyers in preparation for an action against Alphabet’s Google for its dominance in search and digital advertising. Although ostensibly on trial for threatening to shrink the number of American mass-market publishers from five to four, the Penguin suit also involves examination of the retail power of Amazon. Continue reading How the DOJ Antitrust Publishing Lawsuit Relates to Amazon
By
Paula ParisiAugust 3, 2022
TikTok is at the center of yet another attention-grabbing trend: Gen Z has begun using it as a search engine, edging out Google. TikTok says a third of its billion or so global users are Gen Z, and these 10-to-25-year-olds are now using the short-form video platform for more than just entertainment and are increasingly turning to it as a source of information. Meta Platforms’ Instagram is also making a strong showing among information seekers in Gen Z — an important demographic among advertisers, as they are still forming brand loyalties and shopping habits. Continue reading Gen Z Turning to TikTok and Instagram for Search and News
By
Paula ParisiAugust 1, 2022
Google is delaying plans to phase out third-party ad tracking cookies on its Chrome browser until late 2024. The move will have broad ramifications as to how ads are targeted on websites. The Alphabet unit has been working under its Privacy Sandbox initiative since 2019 to find less intrusive alternatives to cookie-tracking technology. Google has been working with developers, publishers, marketers, regulators and advertisers to test its cookie alternative, and says feedback indicates more time is needed to test and evaluate the Privacy Sandbox before it’s phased-in to Chrome worldwide. Continue reading Google Delays Alternative to Cookies for Its Chrome Browser
By
Paula ParisiJuly 29, 2022
Meta Platforms’ revenue dropped 1 percent in the second quarter, totaling $28.8 billion, just missing Wall Street’s expectation. It was the first year-over-year revenue drop since the company went public 10 years ago. Meta logged $6.69 billion in Q2 profit, down 36 percent over the same period in 2021. Costs increased by 22 percent, largely due to ongoing heavy investment in the metaverse, where the company’s ambitions took a hit Wednesday when the Federal Trade Commission filed a lawsuit to prevent Meta from buying Los Angeles-based virtual reality firm Within. Continue reading Profits Down as FTC Sues Meta to Block Purchase of Within
By
Paula ParisiJuly 19, 2022
Sony Interactive Entertainment has completed its acquisition of the Bellevue, Washington-based Bungie game studio. In an effort to allay antitrust concerns, the developer of the “Destiny” game series will operate as an independent subsidiary of Sony, its mandate to “continue to independently publish and creatively develop our games,” Bungie CEO Pete Parsons wrote in a blog post. Both firms have offered assurances that future game development will not be limited to PlayStation exclusives. Sony valued the developer of “Destiny” and “Destiny 2” at approximately $3.7 billion in a Friday SEC filing. Continue reading Sony Completes Its $3.7B Purchase of Bungie Game Studio
By
Paula ParisiJuly 18, 2022
In the wake of the European Union’s strict new digital-competition laws, Amazon has proposed settlements in two EU antitrust cases. The U.S.-based e-commerce giant says it will stop using non-public data it obtains from the activities of independent sellers on its marketplace to inform its own business decisions in competition with those sellers. A separate investigation found Amazon to be self-dealing with regard to its Buy Box and Prime plans, resulting in a commitment to give third-party sellers equal treatment. The commitments would remain in force for five years, monitored by a trustee reporting to the European Commission. Continue reading Amazon Offers Concessions to Call Off EU’s Antitrust Probes
By
Paula ParisiJuly 14, 2022
Antitrust scrutiny under the European Union’s new Digital Markets Act is causing concern among U.S.-based cloud services providers. Cost-savings for clients who bundle services are not unusual in the cloud sector, and while some clients prefer using multiple cloud vendors, others want to take advantage of discounts. As enterprise continues to shift operations to the cloud, packages from Google Cloud Platform, Amazon Web Services and Microsoft Cloud find themselves subject to criticism in what some say is nothing less than a regulatory assault on vertical integration. Continue reading European Union Digital Markets Act Creates Cloud Concerns
By
Paula ParisiJuly 13, 2022
U.S. tech execs are experiencing app envy, with companies from Uber to PayPal and billionaires Elon Musk and Jack Dorsey setting their sights on building one-size-fits-all “super apps” to rival Tencent’s WeChat in China and SoftBank’s LINE in Japan. Where typical apps are built to do one thing really well, so-called super apps are generalists, which in theory means people will use them more often. Spotify and Snap have also expressed interest in super solutions, which have been popular in Asia since 2020 and are sparking new interest in the West. Continue reading U.S. Firms Chase China’s WeChat in Bid to Build Super Apps
By
Paula ParisiJuly 12, 2022
Battling new antitrust action by the U.S. Department of Justice, Google is offering to separate part of its adtech business into a discrete unit. The new Alphabet company would focus on app dissemination and programmatic auctions for advertising space and could potentially be worth billions of dollars. It is not known whether the move would satisfy the DOJ, which is reportedly prepping a fresh antitrust suit in the wake of a 2020 action. Google is also the target of antitrust investigations by state attorneys general and under EU and UK inquiries for anticompetitive measures. Continue reading Under Antitrust Scrutiny, Google Could Spinoff Its Adtech Biz