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Debra KaufmanAugust 17, 2020
In an ongoing dispute over Apple’s 30 percent commissions in its App Store, Epic Games, maker of “Fortnite,” threw down the gauntlet by openly encouraging players to pay the company directly, rather than through Apple and Google’s app stores. But within hours of the announcement, Apple removed “Fortnite” from its App Store, noting Epic’s “express intent of violating App Store guidelines.” Google also pulled the game from its Play Store. Epic Games responded by suing the two tech giants in federal court, claiming antitrust violations. Continue reading App Store Battle: Epic Sues Apple, Google for Pulling ‘Fortnite’
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Debra KaufmanAugust 14, 2020
Qualcomm reached the end of a trying five-year period, battered by antitrust allegations, U.S.-China trade tensions, an activist shareholder and Broadcom’s hostile takeover attempt among other obstacles. This week, the U.S. Court of Appeals for the Ninth Circuit vacated a 2019 ruling by a federal judge that Qualcomm had overcharged phone makers for its patents and abused its monopoly position. Qualcomm chief executive Steve Mollenkopf is now predicting sales of between 175 million and 225 million 5G devices this year. Continue reading Qualcomm Faces Bright 5G Future After Appeals Court Ruling
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Debra KaufmanAugust 13, 2020
Google limits how Android apps track users, and it appears that TikTok violated this policy by collecting unique identifiers — called MAC addresses — from millions of mobile devices. In fact, TikTok seemed to have concealed this action via an added layer of encryption. TikTok, which has publicly declared it doesn’t share data with the Chinese government, ended the collection of MAC addresses in November. An AppCensus 2018 analysis found that about 1 percent of Android apps collect MAC addresses. Continue reading TikTok Used Privacy Loophole to Track Android Users’ Data
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Debra KaufmanAugust 12, 2020
SoftBank, which spent $32 billion to buy ARM Holdings in 2016, is now actively considering ARM’s sale to Nvidia, according to SoftBank founder and chief executive Masayoshi Son. The company has also invested in Slack, WeWork, and Uber, which have experienced high-profile problems. The U.K.-based ARM Holdings, originally founded by Acorn, Apple and VLSI, designs low-power RISC chips that have become ubiquitous for mobile phones. Last month, SoftBank reportedly hired Goldman Sachs to explore options for a sale or going public.
Continue reading SoftBank Is Considering the Sale of ARM Holdings to Nvidia
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Debra KaufmanAugust 11, 2020
U.S. District Judge Analisa Torres approved the Justice Department’s proposal to terminate the 71-year-old Paramount Consent Decrees, intended to prevent Warner Bros., 20th Century Fox, Paramount and other major studios from owning both the means of production and distribution. Studios such as The Walt Disney Company and Lionsgate that became distributors after the law went into effect were not subject to its rules. Last fall, the Justice Department suggested the Decrees were anachronistic in today’s entertainment ecosystem. Continue reading Judge Rules in Favor of Ending Paramount Consent Decrees
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Debra KaufmanAugust 11, 2020
Google recently unveiled three new Pixel phones — the $349 Pixel 4a, available for preorder and shipping on August 20; the 5G-enabled Pixel 5, shipping in the fall; and the Pixel 4a with 5G, priced at $499 and also shipping in the fall. According to Google, issues related to the COVID-19 pandemic prevented the Pixel 4a from debuting significantly earlier. The Pixel 4a, $50 less than last year’s Pixel 3a and the iPhone SE, stands apart from several competitors with its camera and “clean version” of Android. Continue reading Google Presents Three Phones: Pixel 4a, Pixel 4a 5G, Pixel 5
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Debra KaufmanAugust 10, 2020
After Apple repeatedly rejected the Facebook Gaming app for iOS devices, it finally approved it for the App Store — with the proviso that Facebook strip out all the playable games. Facebook chief operating officer Sheryl Sandberg slammed the decision, saying that “iOS users [will] have an inferior experience to those using Android.” Apple’s App Store also won’t permit Microsoft’s xCloud gaming service as, in the past, it also gave the cold shoulder to Google’s Stadia. Late last week, Facebook announced a new version of its Gaming app for iPhone and iPad users. Continue reading Apple Stands Firm in Its App Store Rules for Cloud Gaming
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Debra KaufmanAugust 5, 2020
Shanghai Zhizhen Network Technology Company was recently granted a Chinese patent for a voice assistant similar to Apple’s Siri. It has also filed a patent-infringement lawsuit against Apple, with about 10 billion yuan ($1.43 billion) in potential damages. The suit stated that Apple products violate a virtual assistant patent with technical architecture similar to Siri’s that is owned by a Chinese artificial intelligence company. Apple responded that Siri’s features are different from those described in the Chinese patent. Continue reading Apple Is in a Patent Infringement Dispute Over Siri in China
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Debra KaufmanAugust 3, 2020
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
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Debra KaufmanAugust 3, 2020
In the face of the COVID-19 pandemic, the wares and services of Big Tech companies such as Amazon, Apple and Facebook have become more indispensable than ever. As such, they are thriving. Amazon, for example, reported $88.9 billion in sales, with profits doubling to a record $5.2 billion in the quarter ending June, even though it spent $4 billion on its supply chain and worker safety in that time frame. Apple marked an 11 percent increase in quarterly sales, and Facebook sales rose 11 percent to $18.7 billion. Continue reading Big Tech Companies Are Thriving Despite the Current Climate
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Debra KaufmanJuly 31, 2020
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
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Debra KaufmanJuly 29, 2020
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
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Debra KaufmanJuly 28, 2020
Although Intel posted stronger earnings in Q2, largely due to the remote working environment created by COVID-19, the company revealed a now 12-month delay in producing 7-nanometer chips that are the foundation of future CPUs. With the news, Intel’s shares dropped in after-hours trading. The company faces competition from rival AMD and is expected to lose about 3 percent in revenue when Apple switches to its own chips. Intel chief executive Bob Swan broached the idea of continuing to design chips but outsourcing their production. Continue reading Intel Further Delays 7-Nano Chips and Considers Outsourcing
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Debra KaufmanJuly 21, 2020
About a year ago, the Federal Trade Commission chair Joseph Simons predicted that the antitrust probe of Facebook would be done before the presidential election, a goal that now seems unlikely. If it runs into next year, a new president could change the FTC’s priorities. For now, the Facebook investigation continues, with staff members prepping depositions of Facebook chief executive Mark Zuckerberg and chief operating officer Sheryl Sandberg and examining its purchase of Giphy, a search database for short videos. Continue reading FTC Probe of Facebook Unlikely to Conclude by Election Time
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Debra KaufmanJuly 20, 2020
The European Union’s antitrust unit has broadened its focus of Big Tech companies to include voice assistants such as Siri and Alexa and the growing number of connected Internet of Things (IoT) devices. The EU’s competition commissioner Margrethe Vestager noted the threat of a big company pushing the market until “competition turns into monopoly.” With regard to IoT, she pinpointed voice assistants as the “center of it all,” but included any digital device that records consumer data from Apple Watch to an Internet-connected refrigerator. Continue reading EU’s Antitrust Probe Expands to Include the Internet of Things