Microsoft has begun laying the groundwork to gain regulatory approval for its $68 billion Activision Blizzard bid, assuring D.C. decision-makers the purchase will not improperly advantage its own platforms and services. In an effort at transparency, Microsoft CEO Satya Nadella and president Brad Smith say they’re “sharing where we’re going with members of Congress” and meeting with think tank representatives to compile a best-practices road map to ensure lawmakers and stakeholders the deal presents no threat. Microsoft says it wants Activision’s IP not to dominate existing markets but to help stake its claim in the emerging metaverse. Continue reading Microsoft Takes Its Case for Activision Purchase to Capitol Hill

Nvidia has scrapped plans to buy Arm from Softbank Group due to “significant regulatory challenges preventing the consummation of the transaction,” according to a joint statement that indicates Arm will proceed with plans for an IPO. In what is being positioned as a coincidence of timing, Arm says Simon Segars has resigned as CEO with Rene Haas, formerly president, stepping into the role. After being announced in September 2020, the $40 billion deal faced opposition from both the European Commission and the Federal Trade Commission, which in December sued to block the sale. Continue reading Nvidia Calls Off $40 Billion Acquisition of Arm from Softbank

Amazon had a merry Q4, doubling net income to $14.3 billion from $7.2 billion the prior year. While quarterly revenue of $137.4 billion was up 9 percent due largely to its “biggest-ever” Black Friday to Cyber Monday shopping weekend, the profit surge was the result of a pre-tax gain of $11.8 billion from its investment in Rivian. The electric car manufacturer completed an initial public offering in November. The Amazon Web Services cloud unit grew revenue 40 percent to $17.8 billion, more than $5 billion of it income. Total 2021 revenue was $469.8 billion, up 22 percent. Continue reading Amazon Profits Double While Q4 Operating Income Plunges

Microsoft CEO Satya Nadella thinks the metaverse will be transformative. “Just like the first wave of the Internet allowed everybody to build a website, I think the next wave of the Internet will be a more open world where people can build their own metaverse worlds, whether they’re organizations or game developers or anyone else,” Nadella told analysts on an earnings call last week. The remarks follow Nadella’s January 18 statement that Microsoft’s $69 billion bid for Activision Blizzard “will provide building blocks for the metaverse.” Microsoft expects the deal to close in fiscal 2023, which begins July 1. Continue reading Microsoft CEO Nadella Details His Vision of Metaverse-for-All

The Federal Trade Commission is taking an alternative approach to antitrust protections and Big Tech, focusing not on the ultimate harms of monopolies to consumers but rather the damage perpetrated by the giants inflicted on smaller companies that are often their partners. For an agency that since the mid-80s has focused its antitrust actions on the price-gouging or shoddy goods that usually result from consolidation, the new strategy may be an effective way to rein-in companies that offer their services free of charge, like Google and Facebook, or at what appears to be market rate, like Amazon. Continue reading FTC Develops New Antitrust Strategies for Taking on Big Tech

Consumers were cheated out of $770 million by social media scams last year, according to the Federal Trade Commission, which said the number accounts for roughly one-fourth of fraud losses for the year. New scams involving e-commerce and cryptocurrency helped boost the haul, which was 18 times greater than the $42 million in social media fraud the FTC tracked for 2017. As a result, incidences of younger victims grew, with adults 18-to-39 reporting fraud losses 2.4 times more than adults 40 and over. Investment and romance scams were also high on the list.  Continue reading FTC Says Social Media Has Become Goldmine for Scammers

In the wake of a last week’s ruling that the Federal Trade Commission can prosecute its antitrust suit against Meta Platforms, it is now reported that the FTC and multiple state attorneys general are scrutinizing the company’s virtual reality unit — formerly known as Oculus Quest but renamed Meta Quest — for potential anti-competitive practices. New York, North Carolina and Tennessee are among the states that, in addition to the FTC, are said to be investigating whether the Meta Quest app store discriminates against app developers whose goods compete against Meta’s own products. Continue reading Meta Quest VR Unit Faces Antitrust Probe by FTC and States

A federal judge has allowed a Federal Trade Commission antitrust lawsuit against Facebook to proceed, denying dismissal, a major victory for the agency as it gears up to take on Big Tech. The FTC claims the company, which since renamed itself Meta Platforms, accrued monopoly power and abused it by harming competition through an acquisitions strategy described as “buy or bury.” The U.S. District Court for the District of Columbia ruling is seen as a warning to tech behemoths like Amazon, Apple and Google and the armies of lobbyists and lawyers employed to protect their interests. Continue reading Judge Rules That FTC Can Proceed with Meta Antitrust Case

During CES this week, CTA senior vice president of political and industry affairs Tiffany Moore led a discussion on the contentious issues surrounding privacy in an evolving digital landscape. With her, former FTC acting chair Maureen Ohlhausen was joined by Asad Ramzanali, legislative director to Representative Anna Eshoo (D-California), and Dr. Carlos Nunez, ResMed chief medical officer. Ohlhausen noted that the FTC is the primary agency tasked with privacy issues, based on a 1938 law passed by Congress prohibiting “unfair and deceptive acts or practices.” Continue reading CES: Stakeholders Debate the Complex Issues of Privacy 3.0

The U.S. Senate has introduced the bipartisan Platform Accountability and Transparency Act (PATA), which if passed into law would allow independent researchers to sue Big Tech for failing to provide requested data. The move follows last week’s Instagram hearing, where leaked internal research suggested the platform’s negative effects on the mental health of teens. On December 6, an international coalition of more than 300 scientists sent an open letter to Mark Zuckerberg — CEO of Meta Platforms, the company that owns Instagram and Facebook — requesting the social behemoth voluntarily share research. Continue reading Senate Wants Social Firms to Pay for Holding Back Research

Even before Jack Dorsey tweeted his resignation as Twitter CEO — and announced that another company he co-founded and runs as CEO, Square, will on December 10 change its name to Block — there was speculation that Twitter will soon be purchased. The rumors have been fueled by a belief that Twitter has potential beyond its stagnant share price — $44.47 as of yesterday’s close, slightly less than $44.90 the day of its November 2013 IPO — evidenced in its strong branding and popularity with elites. Top tech exec Parag Agrawal’s ascent to CEO is the corporate equivalent of staging in real estate.  Continue reading Talk of Twitter Sale Brews with Square/Block Floated as Suitor

Artificial intelligence and machine learning are technologies with lots of heat behind them, and some controversy. Organizations (including the Entertainment Technology Center at USC) are working to better understand the ramifications of AI and how to hold its users accountable. Among the criticisms is that AI disproportionately exhibits bias against minority groups — the so-called “discrimination feedback loop.” In November, the New York City Council became the first in the nation to pass a law requiring that the hiring and promotion algorithms of employers be subject to audit. Continue reading Guidelines, Accountability Considered as AI Becomes Priority

The Federal Trade Commission is suing to block Nvidia’s $40 billion acquisition of UK-based semiconductor IP firm Arm, claiming it would stifle competition and hurt consumers. In October, the European Commission cited like reasoning when it launched an investigation into the purchase. Arm licenses its chip and software technology to a about 500 companies, including Apple, Qualcomm, Samsung, TSMC and Nvidia. The major concern is whether the purchase would provide Nvidia an unfair competitive advantage. The global chip shortage and opposition on both sides of the pond dim the deal’s prospects. Continue reading FTC Files Lawsuit to Block $40 Billion Nvidia Purchase of Arm

During the COVID-19 pandemic, Amazon not only added workers to keep up with surging demand, it nearly doubled the size of its fulfillment network, adding 450 new facilities for storage, sorting and shipping, according to MWPVL International, a supply chain logistics consultancy. The e-commerce giant now has 930 facilities across the U.S. where it employs more than 950,000 people, according to its Q2 earnings report. While it’s hiring and infrastructure expansion have largely been concentrated near big cities, which helps mitigate supply-chain disruptions while also speeding shipping times, Amazon is still urging holiday shoppers to order early. Continue reading Amazon Positioned for Holiday Crunch with Network Buildout

In what’s billed as a major triumph in the “right to repair” movement, Apple says it will begin selling the parts and tools to allow people to make their own iPhone repairs. The movement gained momentum in July when the FTC announced it would step up enforcement against tech firms that made gadget repairs difficult for consumers and small businesses. Microsoft, which along with Apple, Google and Amazon had lobbied against the FTC effort, in October announced it was joining Dell, HP and Motorola in getting a jump on “right to repair” legislation. Continue reading Apple Self Service Repair Shop Is Good News for Consumers