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Paul Merrell

Facebook's Marketplace Faces Antitrust Probes in EU, U.K. - WSJ - 0 views

  • The European Union and the U.K. opened formal antitrust investigations into Facebook Inc.’s FB -0.86% classified-ads service Marketplace, ramping up regulatory scrutiny for the company in Europe. Both the European Commission—the EU’s top antitrust enforcer—and the U.K.’s Competition and Markets Authority said Friday they are investigating whether Facebook repurposes data it gathers from advertisers who buy ads in order to give illegal advantages to its own services, including its Marketplace online flea market. The U.K. added that it is also investigating whether Facebook uses advertiser data to give similar advantages to its online-dating service. The two competition watchdogs said they would coordinate their investigations.
  • Separately on Friday, Germany’s competition regulator announced that it is opening an investigation into Google’s News Showcase, in which the tech company pays to license certain content from news publishers. That probe, which is based on new powers Germany had granted the regulator, will look among other things at whether Google is imposing unfair conditions on publishers and how it selects participants, the Federal Cartel Office said.
  • The three newly opened cases are part of a new wave of antitrust enforcement in Europe. The European Commission filed formal charges last month against Apple Inc. for allegedly abusing its control over the distribution of music-streaming apps, including Spotify Technology SA . In November, it filed formal charges against Amazon.com Inc. for allegedly using nonpublic data it gathers from third-party sellers to unfairly compete against them. Both companies denied wrongdoing. At the same time, the U.K.’s CMA has opened investigations into Google’s announcement that it will retire third-party cookies, a technology advertisers use to track web users, and whether Apple imposes anticompetitive conditions on some app developers, including the use of Apple’s in-app payment system, which is also the subject of a lawsuit in the U.S. In the EU, the European Commission has been investigating Facebook for more than a year on multiple fronts. Facebook and the Commission have squabbled over access to internal documents as part of those investigations.
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  • New York State Attorney General Letitia James outlined in December a sweeping antitrust suit against Facebook by the Federal Trade Commission and a bipartisan group of 46 state attorneys general, targeting the company’s tactics against competitors. Photo: Saul Loeb/AFP via Getty Images (Video from 12/9/20)
Paul Merrell

Facebook, Google struck illegal advertising deal: state AGs - Business Insider - 0 views

  • A coalition of state attorneys general filed an antitrust case against Google on Wednesday. They accused Google of giving Facebook unfair advertising advantages to stop it from getting into an area of adtech called "header bidding." Google perceived a move by Facebook into this space as a threat, they said. Per Wired, if this deal is proved to be true, it could spell big trouble for Google and Facebook, as it would fall under part of the Sherman Antitrust Act that has a relatively low bar for illegality. Google denied the claims, and Facebook was not immediately available for comment.
Paul Merrell

How Silicon Valley, in a Show of Monopolistic Force, Destroyed Parler - Glenn Greenwald - 1 views

  • As Silicon Valley censorship radically escalated over the past several months — banning pre-election reporting by The New York Post about the Biden family, denouncing and deleting multiple posts from the U.S. President and then terminating his access altogether, mass-removal of right-wing accounts — so many people migrated to Parler that it was catapulted to the number one spot on the list of most-downloaded apps on the Apple Play Store, the sole and exclusive means which iPhone users have to download apps. “Overall, the app was the 10th most downloaded social media app in 2020 with 8.1 million new installs,” reported TechCrunch.It looked as if Parler had proven critics of Silicon Valley monopolistic power wrong. Their success showed that it was possible after all to create a new social media platform to compete with Facebook, Instagram and Twitter. And they did so by doing exactly what Silicon Valley defenders long insisted should be done: if you don’t like the rules imposed by tech giants, go create your own platform with different rules.
  • But today, if you want to download, sign up for, or use Parler, you will be unable to do so. That is because three Silicon Valley monopolies — Amazon, Google and Apple — abruptly united to remove Parler from the internet, exactly at the moment when it became the most-downloaded app in the country. If one were looking for evidence to demonstrate that these tech behemoths are, in fact, monopolies that engage in anti-competitive behavior in violation of antitrust laws, and will obliterate any attempt to compete with them in the marketplace, it would be difficult to imagine anything more compelling than how they just used their unconstrained power to utterly destroy a rising competitor.
Paul Merrell

EU unveils landmark law curbing power of tech giants | News | DW | 15.12.2020 - 0 views

  • The European Union unveiled landmark legislation on Tuesday that lays out strict rules for tech giants to do business in the bloc. The draft legislation, dubbed the Digital Services Act (DSA) and the Digital Markets Act (DMA), outlines specific regulations that seek to limit the power of global internet firms on the European market. Companies including Google, Apple, Amazon, Facebook and others could face hefty penalties for violating the rules. EU antitrust czar Margrethe Vestager and EU digital chief Thierry Breton presented the draft on Tuesday, after the content of the new rules was leaked to the media on Monday.
  • What's in the draft laws? The dual legislation sets out a list of do's, don'ts and penalties for internet giants: Companies with over 45 million EU users would be designated as digital "gatekeepers" — making them subject to stricter regulations. Firms could be fined up to 10% of their annual turnover for violating competition rules. The could also be required to sell one of their businesses or parts of it (including rights or brands). Platforms that refuse to comply and "endanger people's life and safety" could have their service temporarily suspended "as a last resort." Companies would need to inform the EU ahead of any planned mergers or acquisitions. Certain kinds of data must be shared with regulators and rivals. Companies favoring their own services could be outlawed. Platforms would be more responsible for illegal, disturbing or misleading content.
  • Following the announcement on Tuesday, US internet giant Google criticized the draft legislation, saying it appeared to target specific firms.  "We will carefully study the proposals made by the European Commission over the next few days. However, we are concerned that they seem to specifically target a handful of companies," said Karan Bhatia, the vice president of government affairs and public affairs at Google. Facebook appeared to offer a more conciliatory tone, saying the legislation was "on the right track."
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  • The draft still faces a long ratification process, including feedback from the EU's 27 member states and the European Parliament. Company lobbyists and trade associations will also influence the final law. The process is expected to take several months or even a year.
Paul Merrell

Keller Lenkner & Quinn Emanuel File Antitrust Class-Action Lawsuit Against Facebook - 1 views

  • National plaintiffs’ law firm Keller Lenkner LLC and global business litigation firm Quinn Emanuel Urquhart & Sullivan, LLP filed a class-action lawsuit against Facebook, Inc. alleging violations of federal antitrust laws and California law on behalf of Facebook users.ADVERTISEMENTFiled in the U.S. District Court for the Northern District of California, the complaint alleges that Facebook obtained and maintained a social network and social media monopoly by consistently deceiving consumers about the data-privacy protections it provided to users, and by exploiting the data it extracted from users to target smaller startup companies for destruction or acquisition.The lawsuit seeks to put an end to Facebook’s misrepresentations about its privacy practices and its anticompetitive acquisition conduct; to require Facebook to engage in third-party auditing of its conduct; and to require Facebook to divest assets, such as Instagram and WhatsApp, that entrench its market power.
  • According to the complaint, which was filed on behalf of named plaintiffs Sarah Grabert and Maximilian Klein, Facebook did not achieve its Big Tech monopoly through innovation or vigorous competition. Despite its public pledge to protect user privacy, Facebook lied to users and violated their trust in a scheme to build a technology empire. Facebook also acquired technology from smaller firms that it used to track consumer activity across the internet so that it could identify and target competitors.ADVERTISEMENTThe complaint further alleges that in a strategic, intentional ploy for market domination, Facebook engaged in its scheme to destroy all competition without a care for the ultimate harm it would inflict on consumers. By the time Facebook’s deception about its lackluster privacy protections became public knowledge, Facebook had already achieved dominance, making it difficult for any firm to challenge its social media and social network monopoly.
  • The complaint notes that Facebook derives enormous economic value from the data it harvests from consumers on its platform. In fact, Facebook itself has described how it generates massive earnings per user from the data it collects. The complaint details how Facebook’s destruction of competition has caused consumers substantial economic injury. Consumers who sign up for Facebook agree to give up their valuable data and attention in exchange for using Facebook’s platform. That information and attention is then sold in measurable units to advertisers in exchange for money. The complaint alleges that consumers were harmed by Facebook’s anticompetitive conduct, as they did not receive the benefit of their bargain with Facebook.The lawsuit includes claims for violations of federal antitrust laws and California common law. It also seeks an order enjoining Facebook from continuing to engage in the alleged wrongful acts, requiring Facebook to engage third-party auditors to evaluate and correct problems with Facebook’s conduct, and requiring Facebook to divest assets like Instagram and WhatsApp. The lawsuit also seeks monetary damages, restitution and/or disgorgement of Facebook’s wrongful gains, attorneys’ fees, and costs.
Paul Merrell

Federal Trade Commission calls for breakup of Facebook - 0 views

  • The Federal Trade Commission sued to break up Facebook on Wednesday, asking a federal court to force the sell-off of assets such as Instagram and WhatsApp as independent businesses.“Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire,” the commission said in the lawsuit filed in federal court in Washington, D.C.The lawsuit asks the court to order the “divestiture of assets, divestiture or reconstruction of businesses (including, but not limited to, Instagram and/or WhatsApp),” as well as other possible relief the court might want to add.
  • Attorneys general from 48 states and territories said they were filing their own lawsuit against Facebook, reflecting the broad and bipartisan concern about how much power Facebook and its CEO, Mark Zuckerberg, have accumulated on the internet.
Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”
  • Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.
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    "In addition, the Commission opened a second antitrust investigation into Amazon's business practices that might artificially favour its own retail offers and offers of marketplace sellers that use Amazon's logistics and delivery services (the so-called "fulfilment by Amazon or FBA sellers"). In particular, the Commission will investigate whether the criteria that Amazon sets to select the winner of the "Buy Box" and to enable sellers to offer products to Prime users, under Amazon's Prime loyalty programme, lead to preferential treatment of Amazon's retail business or of the sellers that use Amazon's logistics and delivery services. The "Buy Box" is displayed prominently on Amazon's websites and allows customers to add items from a specific retailer directly into their shopping carts. Winning the "Buy Box" (i.e. being chosen as the offer that features in this box) is crucial to marketplace sellers as the Buy Box prominently shows the offer of one single seller for a chosen product on Amazon's marketplaces, and generates the vast majority of all sales. The other aspect of the investigation focusses on the possibility for marketplace sellers to effectively reach Prime users. Reaching these consumers is important to sellers because the number of Prime users is continuously growing and because they tend to generate more sales on Amazon's marketplaces than non-Prime users. If proven, the practice under investigation may breach Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position. The Commission will now carry out its in-depth investigation as a matter of priority"
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    On the filed charges, the violation seems to be fairly clear-cut and straightforward to prove. (DG Competition has really outstanding lawyers.) I suspect the real fight here will be over the remedy.
Paul Merrell

EU files antitrust charges against Amazon over use of data | The Seattle Times - 0 views

  • European Union regulators filed antitrust charges Tuesday against Amazon, accusing the e-commerce giant of using its access to data from companies that sell products on its platform to gain an unfair advantage over them.The charges, filed two years after the bloc’s antitrust enforcer began looking into the company, are the latest effort by European regulators to curb the power of big technology companies. Margrethe Vestager, the EU commissioner in charge of competition issues, has slapped Google with antitrust fines totaling nearly $10 billion and opened twin antitrust investigations this summer into Apple. The EU’s executive Commission also opened a second investigation Tuesday into whether Amazon favors product offers and merchants that use its own logistics and delivery system.
  • The EU investigation found that Amazon is accessing and analyzing real-time data from other vendors that sell goods on its platform to help it decide which new products of its own to launch and how to price and market them. That “appears to distort genuine competition,” Vestager said.Investigators focused on that practice in France and Germany, the company’s two biggest markets in the EU, but Vestager didn’t give specific examples of merchants affected by Amazon’s behavior.The stakes have risen for retailers as many European countries have shut nonessential shops temporarily to try to contain the coronavirus pandemic, pushing more shopping online, where Amazon is a major presence. Advertising Skip AdSkip AdSkip Ad Amazon faces a possible fine of up to 10% of its annual worldwide revenue. That could amount to as much as $28 billion, based on its 2019 earnings. The Seattle-based company rejected the accusations.
Paul Merrell

Dept. of Justice Accuses Google of Illegally Protecting Monopoly - The New York Times - 1 views

  • The Justice Department accused Google on Tuesday of illegally protecting its monopoly over search and search advertising, the government’s most significant challenge to a tech company’s market power in a generation and one that could reshape the way consumers use the internet.In a much-anticipated lawsuit, the agency accused Google of locking up deals with giant partners like Apple and throttling competition through exclusive business contracts and agreements.Google’s deals with Apple, mobile carriers and other handset makers to make its search engine the default option for users accounted for most of its dominant market share in search, the agency said, a figure that it put at around 80 percent.“For many years,” the agency said in its 57-page complaint, “Google has used anticompetitive tactics to maintain and extend its monopolies in the markets for general search services, search advertising and general search text advertising — the cornerstones of its empire.”The lawsuit, which may stretch on for years, could set off a cascade of other antitrust lawsuits from state attorneys general. About four dozen states and jurisdictions, including New York and Texas, have conducted parallel investigations and some of them are expected to bring separate complaints against the company’s grip on technology for online advertising. Eleven state attorneys general, all Republicans, signed on to support the federal lawsuit.
  • The Justice Department did not immediately put forward remedies, such as selling off parts of the company or unwinding business contracts, in the lawsuit. Such actions are typically pursued in later stages of a case.Ryan Shores, an associate deputy attorney general, said “nothing is off the table” in terms of remedies.
  • Democratic lawmakers on the House Judiciary Committee released a sprawling report on the tech giants two weeks ago, also accusing Google of controlling a monopoly over online search and the ads that come up when users enter a query.
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  • Google last faced serious scrutiny from an American antitrust regulator nearly a decade ago, when the Federal Trade Commission investigated whether it had abused its power over the search market. The agency’s staff recommended bringing charges against the company, according to a memo reported on by The Wall Street Journal. But the agency’s five commissioners voted in 2013 not to bring a case.Other governments have been more aggressive toward the big tech companies. The European Union has brought three antitrust cases against Google in recent years, focused on its search engine, advertising business and Android mobile operating system. Regulators in Britain and Australia are examining the digital advertising market, in inquiries that could ultimately implicate the company.“It’s the most newsworthy monopolization action brought by the government since the Microsoft case in the late ’90s,” said Bill Baer, a former chief of the Justice Department’s antitrust division. “It’s significant in that the government believes that a highly successful tech platform has engaged in conduct that maintains its monopoly power unlawfully, and as a result injures consumers and competition.”
Paul Merrell

House Lawmakers Condemn Big Tech's 'Monopoly Power' and Urge Their Breakups - The New Y... - 0 views

  • House lawmakers who spent the last 16 months investigating the practices of the world’s largest technology companies said on Tuesday that Amazon, Apple, Facebook and Google had exercised and abused their monopoly power and called for the most sweeping changes to antitrust laws in half a century.In a 449-page report that was presented by the House Judiciary Committee’s Democratic leadership, lawmakers said the four companies had turned from “scrappy” start-ups into “the kinds of monopolies we last saw in the era of oil barons and railroad tycoons.” The lawmakers said the companies had abused their dominant positions, setting and often dictating prices and rules for commerce, search, advertising, social networking and publishing.The House ReportRead the full report here »
  • To amend the inequities, the lawmakers recommended restoring competition by effectively breaking up the companies, emboldening the agencies that police market concentration and throwing up hurdles for the companies to acquire start-ups. They also proposed reforming antitrust laws, in the biggest potential shift since the Hart-Scott-Rodino Act of 1976 created stronger reviews of big mergers.
Paul Merrell

Barr Ignores Lawyers' Calls to Go Slow on Google Antitrust Case - The New York Times - 0 views

  • The Justice Department plans to bring an antitrust case against Google as soon as this month, after Attorney General William P. Barr overruled career lawyers who said they needed more time to build a strong case against one of the world’s wealthiest, most formidable technology companies, according to five people briefed on internal department conversations.Justice Department officials told lawyers involved in the antitrust inquiry into Alphabet, the parent company of Google and YouTube, to wrap up their work by the end of September, according to three of the people. Most of the 40-odd lawyers who had been working on the investigation opposed the deadline. Some said they would not sign the complaint, and several of them left the case this summer.Some argued this summer in a memo that ran hundreds of pages that they could bring a strong case but needed more time, according to people who described the document. Disagreement persisted among the team over how broad the complaint should be and what Google could do to resolve the problems the government uncovered. The lawyers viewed the deadline as arbitrary.While there were disagreements about tactics, career lawyers also expressed concerns that Mr. Barr wanted to announce the case in September to take credit for action against a powerful tech company under the Trump administration.
Paul Merrell

Is Apple an Illegal Monopoly? | OneZero - 0 views

  • That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.
  • Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.
  • But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.
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  • Whether Apple customers have a real choice in mobile platforms, once they’ve bought into the company’s ecosystem, is another question. In theory, they could trade in their pricey hardware for devices that run Android, which offers equivalents of many iOS features and apps. In reality, Apple has built its empire on customer lock-in: making its own gadgets and services work seamlessly with one another, but not with those of rival companies. Tasks as simple as texting your friends can become a migraine-inducing mess when you switch from iOS to Android. The more Apple products you buy, the more onerous it becomes to abandon ship.
  • The case against Apple goes beyond iOS. At a time when Apple is trying to reinvent itself as a services company to offset plateauing hardware sales — pushing subscriptions to Apple Music, Apple TV+, Apple News+, and Apple Arcade, as well as its own credit card — the antitrust concerns are growing more urgent. Once a theoretical debate, the question of whether its App Store constitutes an illegal monopoly is now being actively litigated on multiple fronts.
  • The company faces an antitrust lawsuit from consumers; a separate antitrust lawsuit from developers; a formal antitrust complaint from Spotify in the European Union; investigations by the Federal Trade Commission and the Department of Justice; and an inquiry by the antitrust subcommittee of the U.S House of Representatives. At stake are not only Apple’s profits, but the future of mobile software.Apple insists that it isn’t a monopoly, and that it strives to make the app store a fair and level playing field even as its own apps compete on that field. But in the face of unprecedented scrutiny, there are signs that the famously stubborn company may be feeling the pressure to prove it.
  • Tile is hardly alone in its grievances. Apple’s penchant for copying key features of third-party apps and integrating them into its operating system is so well-known among developers that it has a name: “Sherlocking.” It’s a reference to the time—in the early 2000s—when Apple kneecapped a popular third-party web-search interface for Mac OS X, called Watson. Apple built virtually all of Watson’s functionality into its own feature, called Sherlock.In a 2006 blog post, Watson’s developer, Karelia Software, recalled how Apple’s then-CEO Steve Jobs responded when they complained about the company’s 2002 power play. “Here’s how I see it,” Jobs said, according to Karelia founder Dan Wood’s loose paraphrase. “You know those handcars, the little machines that people stand on and pump to move along on the train tracks? That’s Karelia. Apple is the steam train that owns the tracks.”From an antitrust standpoint, the metaphor is almost too perfect. It was the monopoly power of railroads in the late 19th century — and their ability to make or break the businesses that used their tracks — that spurred the first U.S. antitrust regulations.There’s another Jobs quote that’s relevant here. Referencing Picasso’s famous saying, “Good artists copy, great artists steal,” Jobs said of Apple in 2006. “We have always been shameless about stealing great ideas.” Company executives later tried to finesse the quote’s semantics, but there’s no denying that much of iOS today is built on ideas that were not originally Apple’s.
Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has opened formal antitrust investigations to assess whether Apple's rules for app developers on the distribution of apps via the App Store violate EU competition rules. The investigations concern in particular the mandatory use of Apple's own proprietary in-app purchase system and restrictions on the ability of developers to inform iPhone and iPad users of alternative cheaper purchasing possibilities outside of apps. The investigations concern the application of these rules to all apps, which compete with Apple's own apps and services in the European Economic Area (EEA). The investigations follow-up on separate complaints by Spotify and by an e-book/audiobook distributor on the impact of the App Store rules on competition in music streaming and e-books/audiobooks.
  • iPhone and iPad users can only download native (non web-based) apps via the App Store. The Commission will investigate in particular two restrictions imposed by Apple in its agreements with companies that wish to distribute apps to users of Apple devices: (i)   The mandatory use of Apple's own proprietary in-app purchase system “IAP” for the distribution of paid digital content. Apple charges app developers a 30% commission on all subscription fees through IAP. (ii)  Restrictions on the ability of developers to inform users of alternative purchasing possibilities outside of apps. While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere (e.g. on the website of the app developer) also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper.
Paul Merrell

Facebook probe by U.S. states expands to 47 attorneys general - Reuters - 0 views

  • A New York-led probe into allegations that Facebook Inc put consumer data at risk and pushed up advertising rates has expanded to include attorneys general from 47 U.S. states and territories, New York Attorney General Letitia James said in a statement on Tuesday.
  • The investigation of Facebook announced in September had included Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia. It now includes most U.S. states as well as the U.S. territory of Guam.
  • Some states, particularly New York and Nebraska, have raised concerns that Facebook and other big tech companies engage in anti-competitive practices, expose consumer data to potential data theft and push up advertising prices.
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  • The Facebook investigations are part of a larger landscape of probes of big tech firms. Reuters and others reported in June that the Justice Department and FTC had divided responsibility for the companies being investigated, with the Justice Department taking on Alphabet Inc’s Google and Apple Inc while the FTC looked into Facebook and Amazon.com Inc. The Justice Department later said it was opening a probe of online platforms, which would include Facebook.
Paul Merrell

States to launch antitrust investigation into big tech companies, reports say | TechCrunch - 2 views

  • The state attorneys in more than a dozen states are preparing to begin an antitrust investigation of the tech giants, The Wall Street Journal and The New York Times reported Monday, putting the spotlight on an industry that is already facing federal scrutiny.The bipartisan group of attorneys from as many as 20 states is expected to formally launch a probe as soon as next month to assess whether tech companies are using their dominant market position to hurt competition, the WSJ reported.If true, the move follows the Department of Justice, which last month announced its own antitrust review of how online platforms scaled to their gigantic sizes and whether they are using their power to curb competition and stifle innovation. Earlier this year, the Federal Trade Commission formed a task force to monitor competition among tech platforms.
Paul Merrell

Explainer: What Google, Facebook could face in U.S. antitrust probe - Reuters - 0 views

  • The U.S. Department of Justice is investigating whether big technology companies are engaged in anticompetitive behavior, addressing a rising tide of criticism they have become too powerful to the detriment of consumers.
  • The Justice Department has said it will investigate “whether and how” online platforms in “search, social media, and some retail services online” are engaging in behavior that stifles competition and harms consumers. While the Justice Department did not name any targets in announcing the probe on Tuesday, sources have indicated Alphabet Inc’s Google, social media giant Facebook Inc, online retailer Amazon.com Inc and possibly Apple Inc will likely be reviewed. Here’s what regulators could focus on at the big technology companies:
Paul Merrell

Trump Declares War On Silicon Valley: DoJ Launches Google Anti-Monopoly Probe | Zero Hedge - 0 views

  • Just before midnight on Friday, at the close of what was a hectic month for markets, WSJ dropped a bombshell of a story: The paper reported that the DoJ has opened an anti-trust investigation of Alphabet Inc., which could "present a major new layer of regulatory scrutiny for the search giant, according to people familiar with the matter." The report was sourced to "people familiar with the matter," but was swiftly corroborated by the New York Times, Bloomberg and others. For months now, the FTC has appeared to be gearing up for a showdown with big tech. The agency - which shares anti-trust authority with the DoJ - has created a new commission that could help undo big-tech tie-ups like Facebook's acquisition of Instagram, and hired lawyers who have advanced new anti-monopoly theories that would help justify the breakup of companies like Amazon. But as it turns out, the Trump administration's first salvo against big tech didn't come from the FTC; instead, this responsibility has been delegated to the DoJ, which has reportedly been tasked with supervising the investigation into Google. That's not super surprising, since the FTC already had its chance to nail Google with an anti-monopoly probe back in 2013. But the agency came up short. From what we can tell, it appears the administration will divvy up responsibility for any future anti-trust investigations between the two agencies, which means the FTC - which is already reportedly preparing to levy a massive fine against Facebook - could end up taking the lead in those cases.
  • Though WSJ didn't specify which aspects of Google's business might come under the microscope, a string of multi-billion-euro fines recently levied by the EU might offer some guidance. The bloc's anti-trust authority, which has been far more eager to take on American tech giants than its American counterpart (for reasons that should be obvious to all), has fined Google over its practice of bundling software with its standard Android license, the way its search engine rankings favor its own product listings, and ways it has harmed competition in the digital advertising market. During the height of the controversy over big tech's abuses of sensitive user data last year, the Verge published a story speculating about how the monopolistic tendencies of each of the dominant Silicon Valley tech giants could be remedied. For Google, the Verge argued, the best remedy would be a ban on acquisitions - a strategy that has been bandied about in Congress.
Paul Merrell

Facebook co-founder Chris Hughes calls for the company to be broken up - 0 views

  • show chapters Facebook co-founder Chris Hughes calls for the company to be broken up    15 Hours Ago Facebook co-founder Chris Hughes issued a forceful call for regulators to break up the company he helped build in a New York Times op-ed published Thursday. Hughes, who left Facebook to work for Barack Obama's 2008 presidential campaign, said that from his own experience building and working inside the company, Facebook now has more power than a private sector entity is due. While emphasizing his belief that CEO Mark Zuckerberg has good intentions overall, he said the executive has far too much unchecked power, aided by his majority voting stake in the company.
Paul Merrell

Google Caves to Russian Federal Antimonopoly Service, Agrees to Pay Fine - nsnbc intern... - 0 views

  • Google ultimately caved to Russia’s Federal Antimonopoly Service, agreeing to pay $7.8 million (438 million rubles) for violating antitrust laws. The corporate Colossus will also pay two other fines totaling an additional $18,000 (1 million rubles) for failing to comply with past orders issued by state regulators. Last year Google caved to similar demands by the European Union.
  • In August 2016 Russia’s Federal Antimonopoly Service responded to a complaint by Russian search engine operator Yandex and fined the U.S.-based Google 438 million rubles for abusing its dominant market position to force manufacturers to make Google applications the default services on devices using Android. Regulators set the fine at 9 percent of Google’s reported profits on the Russian market in 2014, plus inflation. Similar to the case against the European Union Google challenged the penalty in several appellate courts before finally agreeing this week to meet the government’s demands. The corporation also agreed to stop requiring manufacturers to install Google services as the default applications on Android-powered devices. The agreement is valid for six years and nine months, Russia’s Antimonopoly Service reported. Last year Google, after a protracted battle, caved to similar antitrust regulations by the European Union, but the internet giant has also come under fire elsewhere. In 2015 Australian treasurer Joe Hockey implied Google in his list of corporate tax thieves. In January 2016 British lawmakers decided to fry Google over tax evasion. Google and taxes were compared to the Bermuda Triangle. One year ago the dispute between the European Union’s competition watchdog and Google, culminated in the European Commission formally charging Google with abusing the dominant position of its Android mobile phone operating system, having launched an investigation in April 2015.
Gonzalo San Gil, PhD.

With the Google Antitrust Case, the European Commission Is Is Trying to Gerrymander Yes... - 1 views

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    "Earlier this month Google filed its response to the European Commission's Android antitrust complaint, which alleges that Google thwarts its competitors in search, mobile apps, and mobile devices by limiting their access to Android users through self-serving licensing terms. "
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