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Paul Merrell

Open letter to Google: free VP8, and use it on YouTube - Free Software Foundation - 0 views

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    With your purchase of On2, you now own both the world's largest video site (YouTube) and all the patents behind a new high performance video codec -- VP8. Just think what you can achieve by releasing the VP8 codec under an irrevocable royalty-free license and pushing it out to users on YouTube? You can end the web's dependence on patent-encumbered video formats and proprietary software (Flash). This ability to offer a free format on YouTube, however, is only a tiny fraction of your real leverage. The real party starts when you begin to encourage users' browsers to support free formats. There are lots of ways to do this. Our favorite would be for YouTube to switch from Flash to free formats and HTML, offering users with obsolete browsers a plugin or a new browser (free software, of course). Apple has had the mettle to ditch Flash on the iPhone and the iPad -- albeit for suspect reasons and using abhorrent methods (DRM) -- and this has pushed web developers to make Flash-free alternatives of their pages. You could do the same with YouTube, for better reasons, and it would be a death-blow to Flash's dominance in web video. If you care about free software and the free web (a movement and medium to which you owe your success) you must take bold action to replace Flash with free standards and free formats. Patented video codecs have already done untold harm to the web and its users, and this will continue until we stop it. Because patent-encumbered formats were costly to incorporate into browsers, a bloated, ill-suited piece of proprietary software (Flash) became the de facto standard for online video. Until we move to free formats, the threat of patent lawsuits and licensing fees hangs over every software developer, video creator, hardware maker, web site and corporation -- including you. You can use your purchase of On2 merely as a bargaining chip to achieve your own private solution to the problem, but that's both a cop-out and a strategic mistake. Without making VP
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • The Commission found that Intel engaged in two specific forms of illegal practice. First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel. Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs. Such rebates and payments effectively prevented customers - and ultimately consumers - from choosing alternative products. Second, Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors’ x86 CPUs and to limit the sales channels available to these products.
  • Intel awarded major computer manufacturers rebates on condition that they purchased all or almost all of their supplies, at least in certain defined segments, from Intel: Intel gave rebates to computer manufacturer A from December 2002 to December 2005 conditional on this manufacturer purchasing exclusively Intel CPUs Intel gave rebates to computer manufacturer B from November 2002 to May 2005 conditional on this manufacturer purchasing no less than 95% of its CPU needs for its business desktop computers from Intel (the remaining 5% that computer manufacturer B could purchase from rival chip maker AMD was then subject to further restrictive conditions set out below) Intel gave rebates to computer manufacturer C from October 2002 to November 2005 conditional on this manufacturer purchasing no less than 80% of its CPU needs for its desktop and notebook computers from Intel Intel gave rebates to computer manufacturer D in 2007 conditional on this manufacturer purchasing its CPU needs for its notebook computers exclusively from Intel.
  • Furthermore, Intel made payments to major retailer Media Saturn Holding from October 2002 to December 2007 on condition that it exclusively sold Intel-based PCs in all countries in which Media Saturn Holding is active.
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  • In its decision, the Commission does not object to rebates in themselves but to the conditions Intel attached to those rebates.
  • Intel structured its pricing policy to ensure that a computer manufacturer which opted to buy AMD CPUs for that part of its needs that was open to competition would consequently lose the rebate (or a large part of it) that Intel provided for the much greater part of its needs for which the computer manufacturer had no choice but to buy from Intel. The computer manufacturer would therefore have to pay Intel a higher price for each of the units supplied for which the computer manufacturer had no alternative but to buy from Intel. In other words, should a computer manufacturer fail to purchase virtually all its x86 CPU requirements from Intel, it would forego the possibility of obtaining a significant rebate on any of its very high volumes of Intel purchases. Moreover, in order to be able to compete with the Intel rebates, for the part of the computer manufacturers' supplies that was up for grabs, a competitor that was just as efficient as Intel would have had to offer a price for its CPUs lower than its costs of producing those CPUs, even if the average price of its CPUs was lower than that of Intel.
  • For example, rival chip manufacturer AMD offered one million free CPUs to one particular computer manufacturer. If the computer manufacturer had accepted all of these, it would have lost Intel's rebate on its many millions of remaining CPU purchases, and would have been worse off overall simply for having accepted this highly competitive offer. In the end, the computer manufacturer took only 160,000 CPUs for free.
  • Intel also interfered directly in the relations between computer manufacturers and AMD. Intel awarded computer manufacturers payments - unrelated to any particular purchases from Intel - on condition that these computer manufacturers postponed or cancelled the launch of specific AMD-based products and/or put restrictions on the distribution of specific AMD-based products. The Commission found that these payments had the potential effect of preventing products for which there was a consumer demand from coming to the market. The Commission found the following specific cases: For the 5% of computer manufacturer B’s business that was not subject to the conditional rebate outlined above, Intel made further payments to computer manufacturer B provided that this manufacturer : sold AMD-based business desktops only to small and medium enterprises sold AMD-based business desktops only via direct distribution channels (as opposed to through distributors) and postponed the launch of its first AMD-based business desktop in Europe by 6 months. Intel made payments to computer manufacturer E provided that this manufacturer postponed the launch of an AMD-based notebook from September 2003 to January 2004. Before the conditional rebate to computer manufacturer D outlined above, Intel made payments to this manufacturer provided that it postponed the launch of AMD-based notebooks from September 2006 to the end of 2006.
  • The Commission obtained proof of the existence of many of the conditions found to be illegal in the antitrust decision even though they were not made explicit in Intel’s contracts. Such proof is based on a broad range of contemporaneous evidence such as e-mails obtained inter alia from unannounced on-site inspections, in responses to formal requests for information and in a number of formal statements made to the Commission by the other companies concerned. In addition, there is evidence that Intel had sought to conceal the conditions associated with its payments.
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    This is an uncharacteristically strong press release from DG Competition. I still must read the order, but the description of the evidence is incredible, particularly the finding of concealment of its rebate conditions by Intel.
Paul Merrell

European Union fines Intel a record $1.45 billion - Los Angeles Times - 0 views

  • European regulators today levied a record antitrust fine of $1.45 billion against Intel. Corp. for abusing its position as the world's dominant computer chip maker. The fine comes after nearly two years of investigation by the European Commission into allegations that the Santa Clara company offered improper rebates and other discounts to discourage companies from buying microprocessors from its smaller rival, Advanced Micro Devices Inc. Complaints from AMD triggered the case.
  • The fine tops the $1.23-billion fine European regulators levied against Microsoft Corp. last year for abusing its dominant position in computer software.
  • "Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal."
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  • The European ruling, which had been expected in recent days, comes as the U.S. Federal Trade Commission continues its own antitrust investigation against Intel, which was opened in June 2008. AMD also has sued Intel in federal court.
  • "The relief that the Europeans imposed I think will provide an excellent guide to U.S. enforcers as they try to determine what to do about Intel's exclusionary conduct," Balto said today.
Paul Merrell

Los Angeles Times - latimes.com - 0 views

  • The Obama administration put large companies on notice that it would be tougher on mergers and attempts to stifle competition, restoring the type of aggressive antitrust enforcement of the 1990s that led to the landmark government case against Microsoft Corp.
  • Among those likely to feel the heat of federal inquiries are technology companies, such as chip maker Intel Corp., Internet giant Google Inc. and longtime tech leader IBM Corp.
Paul Merrell

The antitrust thing that won't blow over | Here we go again | The Economist - 0 views

  • Google, the industry’s newest giant, is also coming under closer scrutiny. On April 29th it emerged that America’s Justice Department is examining whether Google’s settlement with authors and publishers over its book-search service violates antitrust laws; and on May 5th the Federal Trade Commission (FTC) launched a probe to see whether Google’s sharing of two board members with Apple reduces competition between the two firms.
  • Similarly, antitrust lobbying is part of a broader “platform war” for IBM, which hopes thereby to keep Microsoft at bay. Among other things, IBM is a sponsor of the European Committee for Interoperable Systems (ECIS), which has many of Microsoft’s other competitors as its members and is one of the prime movers behind the new browser case. It started in late 2007 with a complaint by Opera, a Norwegian browser-maker and ECIS member. Not to be outdone, Microsoft has entered the antitrust game, too. It recently made an investment in T3, a small vendor of mainframe-like computers, which in January lodged a complaint with the European Commission, alleging that IBM kept it from competing by refusing to license mainframe software to T3’s customers. Microsoft has also lobbied American antitrust regulators to tackle Google, encouraging them to look into an online-advertising deal between the search giant and its rival, Yahoo!, which was eventually abandoned.
  • IBM, for its part, would appear to have little to fear. It is hard to argue, with so many different computer systems around, that mainframes still constitute a separate market—a necessary condition if IBM’s behaviour is to be judged anticompetitive.
Matteo Spreafico

Google Redefines Disruption: The "Less Than Free" Business Model - 0 views

  • In the summer of 2007, excitement regarding the criticality of map data (specifically turn-by-turn navigation data) reached a fever pitch.  On July 23, 2007, TomTom, the leading portable GPS device maker, agreed to buy Tele Atlas for US$2.7 billion. Shortly thereafter, on October 1, Nokia agreed to buy NavTeq for a cool US$8.1 billion. Meanwhile Google was still evolving its strategy and no longer wanted to be limited by the terms of its two contracts. As such, they informed Tele Atlas and NavTeq that they wanted to modify their license terms to allow more liberty with respect to syndication and proliferation. NavTeq balked, and in September of 2008 Google quietly dropped NavTeq, moving to just one partner for its core mapping data. Tele Atlas eventually agreed to the term modifications, but perhaps they should have sensed something bigger at play.
  • Rumors abound about just how many cars Google has on the roads building it own turn-by-turn mapping data as well as its unique “Google Streetview” database. Whatever it is, it must be huge. This October 13th, just over one year after dropping NavTeq, the other shoe dropped as well. Google disconnected from Tele Atlas and began to offer maps that were free and clear of either license. These maps are based on a combination of their own data as well as freely available data. Two weeks after this, Google announces free turn-by-turn directions for all Android phones. This couldn’t have been a great day for the deal teams that worked on the respective Tele Atlas and NavTeq acquisitions.
  • Google’s free navigation feature announcement dealt a crushing blow to the GPS stocks. Garmin fell 16%. TomTom fell 21%. Imagine trying to maintain high royalty rates against this strategic move by Google. Android is not only a phone OS, it’s a CE OS. If Ford or BMW want to build an in-dash Android GPS, guess what? Google will give it to them for free.
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  • I then asked my friend, “so why would they ever use the Google (non open source) license version.”  (EDIT: One of the commenters below pointed out that all Android is open source, and the Google apps pack, including the GPS, is licensed on top.  Doesn’t change the argument, but wanted the correct data included here.)  Here was the big punch line – because Google will give you ad splits on search if you use that version!  That’s right; Google will pay you to use their mobile OS. I like to call this the “less than free” business model.
  • “Less than free” may not stop with the mobile phone. Google’s CEO Eric Schmidt has been quite outspoken about his support for the Google Chrome OS. And there is no reason to believe that the “less than free” business model will not be used here as well. If Sony or HP or Dell builds a netbook based on Chrome OS, they will make money on every search each user initiates. Google, eager to protect its search share and market volume, will gladly pay the ad splits. Microsoft, who was already forced to lower Windows netbook pricing to fend off Linux, will be dancing with a business model inversion of epic proportion – from “you pay me” to “I pay you.”  It’s really hard to build a compensation package for your sales team on those economics.
Paul Merrell

Leaked docs show spyware used to snoop on US computers | Ars Technica - 0 views

  • Software created by the controversial UK-based Gamma Group International was used to spy on computers that appear to be located in the United States, the UK, Germany, Russia, Iran, and Bahrain, according to a leaked trove of documents analyzed by ProPublica. It's not clear whether the surveillance was conducted by governments or private entities. Customer e-mail addresses in the collection appeared to belong to a German surveillance company, an independent consultant in Dubai, the Bosnian and Hungarian Intelligence services, a Dutch law enforcement officer, and the Qatari government.
  • The leaked files—which were posted online by hackers—are the latest in a series of revelations about how state actors including repressive regimes have used Gamma's software to spy on dissidents, journalists, and activist groups. The documents, leaked last Saturday, could not be readily verified, but experts told ProPublica they believed them to be genuine. "I think it's highly unlikely that it's a fake," said Morgan Marquis-Bore, a security researcher who while at The Citizen Lab at the University of Toronto had analyzed Gamma Group's software and who authored an article about the leak on Thursday. The documents confirm many details that have already been reported about Gamma, such as that its tools were used to spy on Bahraini activists. Some documents in the trove contain metadata tied to e-mail addresses of several Gamma employees. Bill Marczak, another Gamma Group expert at the Citizen Lab, said that several dates in the documents correspond to publicly known events—such as the day that a particular Bahraini activist was hacked.
  • The leaked files contain more than 40 gigabytes of confidential technical material, including software code, internal memos, strategy reports, and user guides on how to use Gamma Group software suite called FinFisher. FinFisher enables customers to monitor secure Web traffic, Skype calls, webcams, and personal files. It is installed as malware on targets' computers and cell phones. A price list included in the trove lists a license of the software at almost $4 million. The documents reveal that Gamma uses technology from a French company called Vupen Security that sells so-called computer "exploits." Exploits include techniques called "zero days" for "popular software like Microsoft Office, Internet Explorer, Adobe Acrobat Reader, and many more." Zero days are exploits that have not yet been detected by the software maker and therefore are not blocked.
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  • Many of Gamma's product brochures have previously been published by the Wall Street Journal and Wikileaks, but the latest trove shows how the products are getting more sophisticated. In one document, engineers at Gamma tested a product called FinSpy, which inserts malware onto a user's machine, and found that it could not be blocked by most antivirus software. Documents also reveal that Gamma had been working to bypass encryption tools including a mobile phone encryption app, Silent Circle, and were able to bypass the protection given by hard-drive encryption products TrueCrypt and Microsoft's Bitlocker.
  • The documents also describe a "country-wide" surveillance product called FinFly ISP which promises customers the ability to intercept Internet traffic and masquerade as ordinary websites in order to install malware on a target's computer. The most recent date-stamp found in the documents is August 2, coincidung with the first tweet by a parody Twitter account, @GammaGroupPR, which first announced the hack and may be run by the hacker or hackers responsible for the leak. On Reddit, a user called PhineasFisher claimed responsibility for the leak. "Two years ago their software was found being widely used by governments in the middle east, especially Bahrain, to hack and spy on the computers and phones of journalists and dissidents," the user wrote. The name on the @GammaGroupPR Twitter account is also "Phineas Fisher." GammaGroup, the surveillance company whose documents were released, is no stranger to the spotlight. The security firm F-Secure first reported the purchase of FinFisher software by the Egyptian State Security agency in 2011. In 2012, Bloomberg News and The Citizen Lab showed how the company's malware was used to target activists in Bahrain. In 2013, the software company Mozilla sent a cease-and-desist letter to the company after a report by The Citizen Lab showed that a spyware-infected version of the Firefox browser manufactured by Gamma was being used to spy on Malaysian activists.
Paul Merrell

Ericsson Sues to Block Apple iPhone in U.S. Amid Patent Spat | Bloomberg BNA - 0 views

  • The licensing battle between Apple Inc. and Ericsson AB is escalating.Ericsson, a pioneer in mobile phones that transformed itself into the world's largest maker of wireless networks, said Friday it's filing seven new lawsuits in a U.S. court and is asking the U.S. International Trade Commission to block Apple products from the U.S. market.Together, the complaints accuse Apple of infringing as many as 41 patents for some of the fundamental ways mobile devices communicate and for related technology such as user interfaces, battery saving and the operating system.
  • Apple had been paying royalties to Stockholm-based Ericsson before a license expired in mid-January. When talks over renewal failed, the companies sued each other, seeking court rulings on whether Ericsson's royalty demands on fundamental technology were fair and reasonable.
  • The new complaints being filed by Ericsson at the International Trade Commission in Washington take the dispute to another level and are designed to put pressure on Apple. The trade commission, whose job is to protect U.S. markets from unfair trade practices, moves more swiftly than district courts and has the power to block products from crossing the border.Apple's iPhone, iPad and other devices are made in Asia.
Paul Merrell

Did NSA, GCHQ steal the secret key in YOUR phone SIM? It's LIKELY * The Register - 0 views

  • The NSA and Britain's GCHQ hacked the world's biggest SIM card maker to harvest the encryption keys needed to silently and effortlessly eavesdrop on potentially millions of people. That's according to documents obtained by surveillance whistleblower Edward Snowden and leaked to the web on Thursday. "Wow. This is huge – it's one of the most significant findings of the Snowden files so far," computer security guru Bruce Schneier told The Register this afternoon. "We always knew that they would occasionally steal SIM keys. But all of them? The odds that they just attacked this one firm are extraordinarily low and we know the NSA does like to steal keys where it can." The damning slides, published by Snowden's chums at The Intercept, detail the activities of the as-yet unheard-of Mobile Handset Exploitation Team (MHET), run by the US and UK. The group targeted Gemalto, which churns out about two billion SIM cards each year for use around the world, and targeted it in an operation dubbed DAPINO GAMMA.
  • Gemalto's hacking may also bring into question some of its other security products as well. The company supplies chips for electronic passports issued by the US, Singapore, India, and many European states, and is also involved in the NFC and mobile banking sector. It's important to note that this is useful for tracking the phone activity of a target, but the mobile user can still use encryption on the handset itself to ensure that some communications remain private. "Ironically one of your best defenses against a hijacked SIM is to use software encryption," Jon Callas, CTO of encrypted chat biz Silent Circle told The Register. "In our case there's a TCP/IP cloud between Alice and Bob and that can deal with compromised routers along the path as well as SIM issues, and the same applies to similar mobile software."
  • On Wednesday the UK government admitted that its intelligence agencies had in fact broken the ECHR when spying on communications between lawyers and those suing the British state, so GCHQ might want to reconsider that statement.
Paul Merrell

Internet privacy, funded by spooks: A brief history of the BBG | PandoDaily - 0 views

  • For the past few months I’ve been covering U.S. government funding of popular Internet privacy tools like Tor, CryptoCat and Open Whisper Systems. During my reporting, one agency in particular keeps popping up: An agency with one of those really bland names that masks its wild, bizarre history: the Broadcasting Board of Governors, or BBG. The BBG was formed in 1999 and runs on a $721 million annual budget. It reports directly to Secretary of State John Kerry and operates like a holding company for a host of Cold War-era CIA spinoffs and old school “psychological warfare” projects: Radio Free Europe, Radio Free Asia, Radio Martí, Voice of America, Radio Liberation from Bolshevism (since renamed “Radio Liberty”) and a dozen other government-funded radio stations and media outlets pumping out pro-American propaganda across the globe. Today, the Congressionally-funded federal agency is also one of the biggest backers of grassroots and open-source Internet privacy technology. These investments started in 2012, when the BBG launched the “Open Technology Fund” (OTF) — an initiative housed within and run by Radio Free Asia (RFA), a premier BBG property that broadcasts into communist countries like North Korea, Vietnam, Laos, China and Myanmar. The BBG endowed Radio Free Asia’s Open Technology Fund with a multimillion dollar budget and a single task: “to fulfill the U.S. Congressional global mandate for Internet freedom.”
  • Here’s a small sample of what the Broadcasting Board of Governors funded (through Radio Free Asia and then through the Open Technology Fund) between 2012 and 2014: Open Whisper Systems, maker of free encrypted text and voice mobile apps like TextSecure and Signal/RedPhone, got a generous $1.35-million infusion. (Facebook recently started using Open Whisper Systems to secure its WhatsApp messages.) CryptoCat, an encrypted chat app made by Nadim Kobeissi and promoted by EFF, received $184,000. LEAP, an email encryption startup, got just over $1 million. LEAP is currently being used to run secure VPN services at RiseUp.net, the radical anarchist communication collective. A Wikileaks alternative called GlobaLeaks (which was endorsed by the folks at Tor, including Jacob Appelbaum) received just under $350,000. The Guardian Project — which makes an encrypted chat app called ChatSecure, as well a mobile version of Tor called Orbot — got $388,500. The Tor Project received over $1 million from OTF to pay for security audits, traffic analysis tools and set up fast Tor exit nodes in the Middle East and South East Asia.
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    But can we trust them?
Paul Merrell

Microsoft Helping to Store Police Video From Taser Body Cameras | nsnbc international - 0 views

  • Microsoft has joined forces with Taser to combine the Azure cloud platform with law enforcement management tools.
  • Taser’s Axon body camera data management software on Evidence.com will run on Azure and Windows 10 devices to integrate evidence collection, analysis, and archival features as set forth by the Federal Bureau of Investigation Criminal Justice Information Services (CJIS) Security Policy. As per the partnership, Taser will utilize Azure’s machine learning and computing technologies to store police data on Microsoft’s government cloud. In addition, redaction capabilities of Taser will be improved which will assist police departments that are subject to bulk data requests. Currently, Taser is operating on Amazon Web Services; however this deal may entice police departments to upgrade their technology, which in turn would drive up sales of Windows 10. This partnership comes after Taser was given a lucrative deal with the Los Angeles Police Department (LAPD) last year, who ordered 7,000 body cameras equipped with 800 Axom body cameras for their officers in response to the recent deaths of several African Americans at the hands of police.
  • In order to ensure Taser maintains a monopoly on police body cameras, the corporation acquired contracts with police departments all across the nation for the purchase of body cameras through dubious ties to certain chiefs of police. The corporation announced in 2014 that “orders for body cameras [has] soared to $24.6 million from October to December” which represents a 5-fold increase in profits from 2013. Currently, Taser is in 13 cities with negotiations for new contracts being discussed in 28 more. Taser, according to records and interviews, allegedly has “financial ties to police chiefs whose departments have bought the recording devices.” In fact, Taser has been shown to provide airfare and luxury hotels for chiefs of police when traveling for speaking engagements in Australia and the United Arab Emirates (UAE); and hired them as consultants – among other perks and deals. Since 2013, Taser has been contractually bound with “consulting agreements with two such chiefs’ weeks after they retired” as well as is allegedly “in talks with a third who also backed the purchase of its products.”
Paul Merrell

Google will lose up to 800 million users if Huawei ditches Android - Huawei CEO - 0 views

  • If one of the world’s leading smartphone makers, Huawei, turns away from Google’s Android operating system (OS), the US tech giant risks losing a huge number of users, Huawei’s CEO has warned. “[Huawei] will always be on the same line of interest, and if we don’t load Google’s system, Google will lose 700-800 million users in the future,” Ren Zhengfei said in an interview to CNBC.The Chinese telecommunications major was blacklisted last month by the Trump administration after Washington accused the company of spying for Beijing. Google, whose Android OS is used in many of Huawei’s phones, was among the American tech companies prohibited from dealing with Huawei.
  • Huawei said earlier that it is working on its own mobile operating system called Hongmeng and has already filed a trademark. In his interview, the CEO stressed that Hongmeng will allow the company to protect its growth if it is forced to replace Android, which Huawei does not want to do.
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

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

Epic Games accuses Google of bullying and bribing to block competition to its Android a... - 0 views

  • oogle on Monday confronted the second major U.S. antitrust trial in two months to cast the internet powerhouse as a brazen bully that uses its immense wealth and people’s dependence on one of its main products to stifle competition at consumers’ expense. The trial that opened in a San Francisco federal court targets the Google Play Store that distributes apps for the company’s Android software that powers virtually all the world’s smartphones that aren’t made by Apple. The case, stemming from a lawsuit filed by video game maker Epic Games, alleges Google has created an illegal monopoly on Android apps primarily so it can boost its profits through commissions ranging from 15% to 30% on purchases made within an app. “The result of what Google is doing is higher prices, lower quality and less choice for everybody,” Epic attorney Gary Bornstein said Monday during a 45-minute opening statement before the 10-person jury that will decide the case.
Paul Merrell

Why Google search is your phone's default, and not easy to change - The Washington Post - 0 views

  • There’s a setting on your phone and web browser that Google is desperate to keep you from discovering. How desperate? In 2021 alone, Google paid Apple, Samsung and others $26.3 billion to keep it buried.
  • That’s more money each year than McDonald’s makes selling burgers.This setting affects who gets to track your location and watch what you look up online. It affects the usefulness of the information you see and how much of your screen is taken up by ads.
  • I’m talking about your search engine — what pops up the answers when you type into the search bar. Google pays the makers of phones, laptops and browsers to be your default and to stop them from even presenting you other options during setup. It’s billions for a favor.
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