Government Extends Deadline for ByteDance to Divest TikTok

Although ByteDance’s TikTok missed a Thursday deadline to complete its deal with Oracle and Walmart, the Commerce Department did not enforce the shutdown order, citing last month’s preliminary injunction from U.S. District Judge Wendy Beetlestone. That suit was brought by three TikTok stars who charged that the government exceeded its authority by threatening the “robust exchange of informational materials.” President Trump initiated the effort to get TikTok to divest itself of its U.S. operations based on national security concerns. Now the deadline has been extended to November 27. Continue reading Government Extends Deadline for ByteDance to Divest TikTok

Big Tech Companies Report Strong Third Quarter Revenues

In an otherwise glum economic picture, Big Tech companies have boomed. The general economy is improving, while Alphabet, Amazon, Apple and Facebook are reporting profits that suggest they may be capable of generating the kind of wealth that a single industry hasn’t seen in generations. In fact, those four companies had a quarterly net profit of $38 billion, despite regulator scrutiny and other obstacles. Amazon saw an almost 200 percent rise in profits, and Facebook had a stupendous quarter, despite the advertiser boycott. Continue reading Big Tech Companies Report Strong Third Quarter Revenues

Big Tech Executives Defend Their Services in Senate Hearing

Facebook chief executive Mark Zuckerberg, Twitter chief exec Jack Dorsey and Alphabet/Google chief exec Sundar Pichai faced a combative Senate Commerce Committee this week. Republicans want to update Section 230 of the Communications Decency Act that shields Internet platforms from liability for user-generated content. They also claim the platforms censor conservative views. Democrats also want to look at Section 230 but are more focused on whether the platforms are guarding against disinformation as the presidential election looms. Continue reading Big Tech Executives Defend Their Services in Senate Hearing

New York State Calls for a Dedicated Social Media Regulator

On the heels of a cyberattack on Twitter this summer, the New York State Department of Financial Services (DFS) called for a dedicated regulator to oversee big social media platforms. In a 37-page report, the department described the July 15 attack in which accounts of Barack Obama, Joe Biden, Jeff Bezos, Elon Musk and others were hacked and used to promote a cryptocurrency scam. Three people have since been charged with posing as employees to launch that attack, which relied on relatively simple tactics. Continue reading New York State Calls for a Dedicated Social Media Regulator

Government Report Urges Breakup of Big Tech Monopolies

After a 16-month investigation, the House Judiciary Committee presented a 449-page report stating that Big Tech companies Amazon, Apple, Facebook and Google abused their monopoly positions and calling for reform of the antitrust laws. Lawmakers stated the companies had evolved from startups to “the kinds of monopolies we last saw in the era of oil barons and railroad tycoons” and stated their breakup would restore competition. This marks the biggest antitrust effort since the government sued Microsoft in the 1990s. Continue reading Government Report Urges Breakup of Big Tech Monopolies

Google Will Pay News Publishers $1 Billion to License Stories

Google is debuting Google News Showcase and vowed to pay publishers $1+ billion over the next three years to license news content for the new product. Publishers will be able to select images and summaries for story panels, which are teasers for full articles. Clicking on a story panel will bring the user directly to the news publisher’s website to read the entire story. According to sources, Google is in talks with publishers in the U.S. and other countries and has already signed deals with almost 200 publications. Continue reading Google Will Pay News Publishers $1 Billion to License Stories

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

Proposed Legislation Would Weaken Shields for Social Media

The Justice Department sent Congress draft legislation to weaken Section 230 of the Communications Decency Act, leaving Facebook, YouTube and other social media platforms vulnerable to legal action for content posted by users. The proposed changes would create liability for platforms that allow “known criminal content” to remain once they are aware of it. President Trump claims that social media companies are biased against conservatives. The platforms have not been protected against some civil suits. Continue reading Proposed Legislation Would Weaken Shields for Social Media

TikTok-Oracle Deal Rests on Data Security, Ownership Details

In its deal with Oracle, ByteDance is angling for majority ownership of TikTok. “Conceptually, I can tell you I don’t like that,” responded President Donald Trump, who is still in favor of U.S. majority ownership of the app’s operations. Although Trump admitted he hadn’t been briefed on the specifics of the deal, Senate Republicans and others are concerned that it falls short of the original goal. A source stated that Treasury Secretary Steven Mnuchin aims to ensure that U.S. ownership is “well over 50 percent.” Meanwhile, the Commerce Department, at President Trump’s direction, announced this morning that TikTok and WeChat will be banned from app stores in the U.S. beginning on Sunday. Continue reading TikTok-Oracle Deal Rests on Data Security, Ownership Details

Government Considering Lawsuits Against Facebook, Google

According to sources, the Federal Trade Commission — after investigating concerns about Facebook’s efforts to stifle competition — may be readying an antitrust lawsuit by the end of the year. The same sources said, however, that the FTC doesn’t always bring a case after making preparations to do so and that no final decision has been made. Meanwhile, a bipartisan group of senators has put Google in the crosshairs regarding its dominance in the chain of technologies connecting digital publishers with advertisers. Continue reading Government Considering Lawsuits Against Facebook, Google

Antitrust Officials Focus on Google’s Advertising Ecosystem

In its antitrust investigation of Google, the U.S. Department of Justice and state attorneys general are looking at whether the Big Tech company engages in “tying,” a practice of bundling products together with the aim of blocking competition. According to sources, the government officials have questioned executives at competing companies about Google’s Network, the division that sells end-to-end digital advertising services, and whether it offers advertisers enticing terms to buy into its complete ecosystem. Continue reading Antitrust Officials Focus on Google’s Advertising Ecosystem

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

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