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

Game publishers have discussed raising the cost of video games, set at $60 in the 1990s, for decades, and are finally moving ahead with a plan to raise the standard price to $70, despite the doubling of U.S. unemployment due to the COVID-19 pandemic. Take-Two Interactive Software was one of the first to offer a $70 game with “NBA 2K1.” Meanwhile, Microsoft promotes its Xbox Game Pass, a subscription service with 100+ titles for $10 per month. Sony plans to offer a subscription service with fewer titles. Continue reading Game Publishers Launch a Plan to Raise Game Prices to $70

The COVID-19 pandemic is boosting the multi-billion-dollar video-game industry into the stratosphere, and Big Tech companies predict the trend will endure past the pandemic. Microsoft, for example, plans to acquire the company behind the “Doom” game franchise for $7.5 billion. NPD Group reported that about 244 million people in the U.S. play video games, up 15 percent from a 2018 study. The report added that, “Americans spend an average of 14 hours a week playing video games … compared with 12 hours weekly in 2018.” Continue reading Pandemic Could Have Long-Term Impact on Gaming Industry

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

Microsoft’s sales rose 12 percent to $37.2 billion, with a net profit of $13.9 billion for Q1 of its fiscal year, exceeding Wall Street expectations. Its cloud unit Azure’s revenue jumped 48 percent from the same quarter last year, driving the quarter’s results, said chief financial officer Amy Hood. Much of the dramatic leap in Azure’s use can be attributed to online demands created by the COVID-19 pandemic. Likewise, the company’s gaming content business showed a 30 percent increase in sales from last year. Continue reading Microsoft Q1 Revenues Rise in Part Due to Azure Cloud Unit

After beta-testing with 200,000 users, Facebook debuted a cloud gaming service for Android and the web, providing smaller free-to-play games such as “Asphalt 9: Legends,” “PGA TOUR Golf Shootout,” “Solitaire: Arthur’s Tale” and “Mobile Legends: Adventure.” Over time, the social media giant plans to add more games, which can be found in its Gaming section. In conjunction and to remind people about the new games, Facebook is also introducing “cloud playable ads,” derived from games’ native code. Continue reading Facebook Streams Free-to-Play Games via Its Cloud Service

The Coalition for App Fairness, debuted last month by Epic Games, Match Group, Spotify and others t0 combat what they claim are excessive commission payments to Apple, is experiencing a sharp increase in membership. Thirteen members founded the group, which has grown to 40 members with more than 400 requests to join. Smaller developers that are dependent on the Apple App Store for survival have, until now, been too intimidated to speak up. Microsoft voiced support for the Coalition and adopted its recommendations for its own store. Continue reading The Coalition for App Fairness Draws More Developer Interest

As anticipated, the U.S. Department of Justice has filed an antitrust lawsuit against Alphabet’s Google, accusing the company of “unlawfully maintaining monopolies” involving its search and related advertising services. The DOJ is also questioning the terms of Google’s Android operating system, which the Department believes essentially forces phone makers to pre-load Google apps and set Google Search as a default feature. The concern is that the practice unfairly hinders competition and enables Google to generate significant revenue from its search-related advertising business. Continue reading Department of Justice Files Antitrust Lawsuit Against Google

IBM and others are advocating the adoption of Confidential Computing, a standard that they state will provide deeper levels of security and privacy in the cloud. With encryption that can only be unlocked by keys held by the client, Confidential Computing guarantees that the company hosting data and applications can’t access the underlying data, regardless of whether it is stored in a database or passing through an application. That prevents hackers from accessing encrypted data when it moves to the application layer. Continue reading IBM Advocates for Confidential Computing Security Standard

At its annual Zoomtopia event, Zoom announced the debut of end-to-end encryption (E2EE) for free accounts in four stages. The first phase, which launches next week, will be a 30-day technical preview to gather feedback. Chief executive Eric Yuan stated the company will improve its integration of “office chatroom products” from Slack Technologies and Microsoft and also introduced its Zapps platform that allows users to bring third-party apps into video calls and a new integrated platform for classes and events. Continue reading Zoom Debuts End-to-End Encryption for Free User Accounts

When the COVID-19 pandemic began in the U.S., companies sent their employees home to work. Since then, the return-to-work date changed from “a few weeks” to September, and then January. Now, with the virus still problematic in many parts of the country, Google became the first to tell employees they’ll be back July 2021, followed by Airbnb, Slack and Uber and, more recently, Ford Motor Company. Microsoft, Target and The New York Times also plan to return in summer 2021, while Dropbox has made remote working the default for employees. Continue reading Silicon Valley Firms Remain Flexible with Remote Workforce

In the latest update to the ongoing battle between Apple and Epic Games, Judge Yvonne Gonzalez Rogers of the Northern District of California ruled that Apple does not have to reinstate Epic’s game “Fortnite” in its App Store. Epic Games, to avoid Apple’s 30 percent commission on apps sold in its store, offered its users a way to download the game on its own site. In retaliation, Apple banned “Fortnite” from the App Store. Gonzalez Rogers said Apple could continue to ban “Fortnite” because Epic violated its contract. Continue reading Judge Rules That Apple Can Block ‘Fortnite’ From App Store

To accelerate its shift to cloud computing, IBM revealed it is breaking out its IT unit to focus on that and artificial intelligence. Chief executive Arvind Krishna called it a “landmark day” for the 109-year old company. IBM’s move acknowledges the powerful shift to the cloud, with almost all new software created as cloud services delivered online from remote data centers. Amazon pioneered the cloud market by launching Amazon Web Services in 2006, and IBM is a latecomer but has made significant moves in recent years. Continue reading With Spinoff, IBM Aims to Lead In Corporate Cloud Services

Unlike Apple, which continues to keep tight control of its App Store, Microsoft wants to give developers more control. The company’s deputy general counsel Rima Alaily revealed 10 principles for the Microsoft Store. They include letting developers sell different services on their apps and websites and giving them and users access to third-party app stores. Microsoft, whose Store has always been more open, said the principles are aimed to “promote choice, ensure fairness and promote innovation.” Continue reading Microsoft Empowers Developers with 10 App Store Principles

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