Legal Archive

FTC sues to block Nvidia acquiring ARM

The Federal Trade Commission today sued to block U.S. chip supplier Nvidia Corp.’s $40 billion acquisition of U.K. chip design provider Arm Ltd. Semiconductor chips power the computers and technologies that are essential to our modern economy and society. The proposed vertical deal would give one of the largest chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips. The FTC’s complaint alleges that the combined firm would have the means and incentive to stifle innovative next-generation technologies, including those used to run datacenters and driver-assistance systems in cars. It seems increasingly unlikely that this acquisition will go through. I think that’s a good thing – while I’d rather Nvidia purchase ARM than Apple, Google, Microsoft, or Amazon, an even better outcome would be a profitable, independent ARM.

EU coalition urges EU to push back against gate keeping by Microsoft, files official complaint

A coalition of EU software and cloud businesses joined Nextcloud GmbH in respect of their formal complaint to the European Commission about Microsoft’s anti-competitive behavior in respect of its OneDrive (cloud) offering. In a repeat from earlier monopolistic actions, Microsoft is bundling its OneDrive, Teams and other services with Windows and aggressively pushing consumers to sign up and hand over their data to Microsoft. This limits consumer choice and creates a barrier for other companies offering competing services. I mean, anything to reign in the power of these massive technology companies, but I’m not sure browser choice screens and versions without Windows Media Player are the way to go. I want a more permanent solution – just like we’ve done countless times in the past, break these massive companies up into various smaller pieces that have to compete on merit, instead of being propped up by one or two deeply entrenched money-printing products.

Apple, Google and Facebook may be forced into cross-platform messaging

Apple, Google, Facebook and other tech companies may be forced into finding a solution that allows users to connect across the various messaging platforms. Currently, each service has its own way of handling communication that is not compatible with others, placing a burden upon the user when there is a need to reach someone using a different platform or service. A universal communication method would benefit the end-user, whether using an iPhone or Android phone, with Facebook, iMessage, or other social media apps. A cross-platform solution works against the existing model that social media and tech companies have accepted as standard, keeping their customers or users circling back to the same company rather than moving between different services. It’s the same reason for members’ rewards cards at grocery stores and punch cards for a free sandwich at the deli. Keeping the existing customer is much easier than recruiting a new one. This is such an obvious and popular requirement, I’m baffled it’s taking governments around the world this long to get to implementing it. So much of our communication infrastructure is owned by 3-4 giant technology companies, all incompatible with each other, with absolutely zero control over what happens to your messages and your data. Forcing them to be interoperable – preferably via forcing the publication of open APIs third party developers can tap into – is not only the bare minimum we should expect from our online communication channels, it’s probably also a highly popular requirement that would simplify the the lives of people all across the European Union, where different countries favour different messaging protocols. How could anybody without a financial stake in Apple, Google, or Facebook be against this? Of course, the very, very sour note here is that at the same time, the European Commission is also toying with the idea of weakening or outright eliminating end-to-end encryption in messaging applications, so it might well turn out to be all for naught.

Last of original SCO v IBM Linux lawsuit settled

While at the Linux Foundation Members Summit in Napa, California, I was bemused to find that an open-source savvy intellectual property attorney had never heard of SCO vs. IBM.  You know, the lawsuit that at one time threatened to end Linux in the cradle? Well, at least some people thought so anyway. More fool they. But now, after SCO went bankrupt; court after court dismissing SCO’s crazy copyright claims; and closing in on 20-years into the saga, the U.S. District Court of Utah has finally put a period to the SCO vs. IBM lawsuit. I think we first mentioned the lawsuit on OSNews way back in 2003. The then-current version of the Linux kernel was 2.4/2.5.

Apple, Google cooperate with Putin to steal Russia’s elections

Alphabet’s Google and Apple have removed jailed Kremlin critic Alexei Navalny’s tactical voting app from their stores, his team said on Friday, after Russia accused the U.S. tech firms of meddling in its internal affairs. Russia goes to the polls on Friday to elect a new parliament in a three-day vote that the ruling United Russia party is expected to win despite a ratings slump after the biggest crackdown on the Kremlin’s critics in years. Apple, only a few weeks ago during the CASM debacle, adamantly told the world it would never bow to government pressure. Unsurprisingly, that was a bold-faced lie. Google publicly commits itself to human rights, but apparently, that does not extend to Putin critics and the Russian opposition.

Major win for Epic Games: Apple has 90 days to open up app store payments

On Friday, the Northern California judge handling the closely watched Epic Games v. Apple court case turned in a ruling that, in many ways, works out in Apple’s favor—but with one massive, App Store-changing exception. The ruling from US District Judge Yvonne Gonzalez Rogers includes a single-page permanent injunction demanding that Apple open up payment options for any software sellers on the App Store. In other words, Epic Games’ effort to add Epic-specific payment links inside the free-to-play game Fortnite, and thus duck out of paying Apple’s 30 percent fee on in-app transactions, can now happen. This is a massive blow to Apple’s money printing machine, since it means both applications as well as gambling apps (or “games” as Apple refers to them) can now circumvent Apple’s 30% protection racket. Since the vast majority of App Store revenue – and thus, the vast majority of Apple’s services revenue – comes from exploitative gambling apps, this will have a major impact on Apple’s current strategy of sucking as much money out of Candy Crush whales.

Apple and Google must allow developers to use other payment systems, new Korean law declares

South Korea has passed a bill written to prevent major platform owners like Google and Apple from restricting app developers to built-in payment systems, The Wall Street Journal reports. The bill is now expected to be signed into law by President Moon Jae-in, whose party championed the legislation. The law comes as a blow to Google and Apple who both require in-app purchases to flow only through their systems, instead of outside payment processors, allowing the tech giants to collect a 30 percent cut. If tech companies fail to comply with the new law, they could face fines of up to 3 percent of their South Korea revenue. This is going to spread like a wildfire, and the company’s statements regarding this new law fill me with unreasonable amounts of pleasure and schadenfreude.

App store competition targeted by bipartisan senate bill

Their legislation would bar the companies from certain conduct that would tend to force developers to use their app stores or payment systems. It also would obligate the companies to protect app developers’ rights to tell consumers about lower prices and offer competitive pricing. It would effectively allow apps to be loaded onto Apple users’ devices outside of the company’s official app store. There’s so much movement on this front, I highly doubt Apple and Google will be able to stop it. This is one of the very, very rare cases where both sides of the political spectrum seem to somewhat agree, and I hope they can make it stick. It’s definitely not enough, but it’s a step in the right direction. I’m an extremist – all source code should be freely available (not necessarily open source – just viewable), to give consumers and society as a whole the ability to ensure they’re not being spied on, lied to, or endangered by foreign entities or corporate trickery. If copyright is good enough for writers, artists, and musicians, it’s damn well good enough for programmers. With how vital computers and software have become – woven into the fabric of our society – we as people should be able to see and check what those threads are doing and where they’re going to and coming from. Corporations have shown time and time again that they are not trustworthy entities and that they do not have society’s best interests at heart, and we need tools to bring the balance of power back – black boxes of code are dangerous.

California sues Activision Blizzard over a culture of ‘constant sexual harassment’

California’s Department of Fair Employment and Housing (DFEH) says that renowned game publishing studio Blizzard Entertainment, and its owner Activision Blizzard, have created a culture of “constant sexual harassment” and gender-based discrimination, in a new lawsuit filed Tuesday that claims top executives were aware and/or involved. And in the hours since the suit was revealed, numerous women have already stepped forward to corroborate the allegations. The details are so disturbing that we’re going to start with a trigger warning right now. The idea that male employees held “cube crawls” is one of the tamer allegations in the lawsuit. This is by far the worst case of structural sexual abuse at a gaming company to date, and you really need to the read the full complaint to understand just how criminal the behaviour of male Activision Blizzard employees and managers has been, but some of these examples should give you a good idea. It even led to the suicide of one of the female employees at the company. The abuse was so widespread, so pervasive, so depraved, and so institutionalised, that in my view, we’re dealing with a criminal organisation that ought to be shut down and banned, much like any other criminal organisation. The fact this is a company (or a religious institution, for that matter) should be of no consequence. The complain itself is the result not of a single employee or one particular case, but of a two year investigation by California’s Department of Fair Employment and Housing.

Biden signs executive order targeting right to repair, ISPs, net neutrality, and more

President Joe Biden has signed an executive order meant to promote competition — with technology directly in the crosshairs. The order, which the White House outlined earlier this morning, calls on US agencies like the Federal Communications Commission (FCC) and Federal Trade Commission (FTC) to implement 72 specific provisions. The topics include restoring net neutrality provisions repealed during the prior administration, codifying “right to repair” rules, and increasing scrutiny of tech monopolies. Good intentions, but these are just executive orders – not actual bills that can withstand the test of time. I understand executive orders are the best the US can get with its broken and gridlocked political system, but it’s simply not enough – the next president can just wipe them off the desk.

Judge dismisses FTC and state antitrust complaints against Facebook

A federal court on Monday dismissed the Federal Trade Commission’s antitrust complaint against Facebook, as well as a parallel case brought by 48 state attorneys general, dealing a major setback to the agency’s complaint, which could have resulted in Facebook divesting Instagram and WhatsApp. However, the court ruled Monday that the FTC failed to prove its main contention and the cornerstone of the case: that Facebook holds monopoly power in the U.S. personal social networking market. I mean, I hear Friendster and MySpace are the bomb.

Tech giants, fearful of proposals to curb them, blitz Washington with lobbying

It seems the big technology companies are running scared. According to a report by The New York Times, they have ramped up their lobbying efforts into the stratosphere at all levels of government, and Tim Cook is even personally calling politicians – most prominently, Nancy Pelosi. The calls by Mr. Cook are part of a forceful and wide-ranging pushback by the tech industry since the proposals were announced this month. Executives, lobbyists, and more than a dozen think tanks and advocacy groups paid by tech companies have swarmed Capitol offices, called and emailed lawmakers and their staff members, and written letters arguing there will be dire consequences for the industry and the country if the ideas become law. The bills, the most sweeping set of antitrust legislation in generations, take aim at Amazon, Apple, Facebook and Google by trying to undo their dominance in online commerce, advertising, media and entertainment. There are six bills in total, and if passed, they would empower regulators, make it harder for the tech giants to acquire start-ups and prevent the companies from using their strength in one area to form a grip in another. Apple also published a 16 page PR document today, warning that the world will end if Apple is forced to allow sideloading or third party application stores on iOS. Of course, this is all nonsense, as the only thing Apple worries about is the protection money it extracts that makes up the vast majority of its services push that it uses to please investors. Nobody is going to break into iOS users’ homes and force them to sideload – don’t sideload if you don’t want to, but the rest of us should be allowed to do whatever we want with the devices we paid money for. Another major reason Apple is running is scared is that if it has to allow sideloading, the company will lose the control over its platform that is so coveted by Apple’s closest friends and allies, the totalitarian governments of this world. China, Saudi-Arabia, Russia, and others are weaponising Apple’s walled garden, and if that wall is cracked open, Apple is suddenly no longer as valuable to totalitarian governments. This would hurt Apple’s bottom line significantly. Amazon and Google also have a lot to lose, of course. Google controls most of the advertising market and any measures to lessen that control will be a major blow to the company’s bottom line. Amazon, for its part, abuses the data it collects about buyers and sellers to create their own products and delist their competitors, which has become a cornerstone of the company’s strategy. The fact they are running scared bodes well for the contents of these proposed bills, but at the same time, it also means a lot of bribes are flowing towards Washington, and American politicians are nothing if not deeply, systematically corrupt and easily bought.

EU accuses Apple of App Store antitrust violations

The European Commission is issuing antitrust charges against Apple over concerns about the company’s App Store practices. The Commission has found that Apple has broken EU competition rules with its App Store policies, following an initial complaint from Spotify back in 2019. Specifically, the Commission believes Apple has a “dominant position in the market for the distribution of music streaming apps through its App Store.” The EU has focused on two rules that Apple imposes on developers: the mandatory use of Apple’s in-app purchase system (for which Apple charges a 30 percent cut), and a rule forbidding app developers to inform users of other purchasing options outside of apps. The Commission has found that the 30 percent commission fee, or “Apple tax” as it’s often referred to, has resulted in higher prices for consumers. “Most streaming providers passed this fee on to end users by raising prices,” according to the European Commission. As predicted, and entirely reasonable. This is only the first step in the process, and Apple will have the opportunity to respond. If found guilty, Apple could face a fine of more than 22 billion euro, 10% of its annual revenue, or be forced to change its business model.

Apple will reportedly face EU antitrust charges this week

I’m linking to The Verge, since the original FT article is locked behind a paywall. The European Commission will issue antitrust charges against Apple over concerns about the company’s App Store practices, according to a report from the Financial Times. The commission has been investigating whether Apple has broken EU competition rules with its App Store policies, following an initial complaint from Spotify back in 2019 over Apple’s 30 percent cut on subscriptions. The European Commission opened up two antitrust investigations into Apple’s App Store and Apple Pay practices last year, and the Financial Times only mentions upcoming charges on the App Store case. It’s not clear yet what action will be taken. I’m glad both the US and EU are turning up the heat under Apple (and the other major technology companies), since their immense market power and clear-cut cases of abuse have to end. I am a strict proponent of doing what the United States used to be quite good at, and that’s breaking Apple and Google up into smaller companies forced to compete with one another and the rest of the market. The US has done it countless times before, and they should do it again. In this specific case, Apple should be divided up into Mac hardware, mobile hardware, software (macOS, iOS, and applications), and services. This would breath immense life into the market, and would create countless opportunities for others to come in and compete. The US has taken similar actions with railroads, oil, airplanes, and telecommunications, and the technology market should be no different.

US House committee approves blueprint for big tech crackdown

The U.S. House of Representatives Judiciary Committee formally approved a report accusing Big Tech companies of buying or crushing smaller firms, Representative David Cicilline’s office said in a statement on Thursday. With the approval during a marathon, partisan hearing, the more than 400-page staff report will become an official committee report, and the blueprint for legislation to rein in the market power of the likes of Alphabet Inc’s Google, Apple Inc, Amazon.com Inc and Facebook Inc. This could be potentially really good news, but let’s just say that US Congress hasn’t exactly been the most reliable governmental body, so I won’t cheer until Biden signs a dotted line.

Arizona Senate skips vote on controversial bill that would regulate Apple and Google app stores

The Arizona State Senate was scheduled to vote an unprecedented and controversial bill on Wednesday that would have imposed far-reaching changes on how Apple and Google operate their respective mobile app stores, specifically by allowing alternative in-app payment systems. But the vote never happened, having been passed over on the schedule without explanation. The Verge watched every other bill on the schedule be debated and voted on over the senate’s live stream, but Arizona HB2005, listed first on the agenda, never came up. One notable Apple critic is now accusing the iPhone maker of stepping in to stop the vote, saying the company hired a former chief of staff to Arizona Gov. Doug Ducey to broker a deal that prevented the bill from being heard in the Senate and ultimately voted on. This is after the legislation, an amendment to the existing HB2005 law, passed the Arizona House of Representatives earlier this month in a landmark 31-29 vote. Corruption and bribery at work.

Arizona advances bill forcing Apple and Google to allow alternative payment options

The Arizona House of Representatives just passed landmark app store legislation in a 31-29 vote on Wednesday that could have far-reaching consequences for Apple and Google and their respective mobile operating systems. The legislation, a sweeping amendment to Arizona’s existing HB2005, prevents app store operators from forcing a developer based in the state to use a preferred payment system, putting up a significant roadblock to Apple and Google’s ability to collect commissions on in-app purchases and app sales. It will now head to the state senate, where it must pass before its sent to Arizona Gov. Doug Ducey. A lot of bribes are going to flow from Apple and Google to Arizona, since if a law like this passes, it could have devastating consequences for these two companies. Obviously, I hope it passes, but I have my doubts local Arizona politicians will be able to withstand those juicy, juicy bribes.

Apple subpoenas Valve as part of its legal battle with Epic: Valve fights back

A new court filing has revealed that, as part of the ongoing legal battle between Apple and Epic Games, Apple subpoenaed Valve Software in November 2020, demanding it provide huge amounts of commercial data about Steam sales and operations going over multiple years. Apple is demanding Valve – who is not a party to this lawsuit in any way, shape, or form – provide Apple with detailed data and information about, initially, every single game sold on Steam, including “names, prices, configurations and dates of every product on Steam, as well as detailed accounts of exactly how much money Steam makes and how it is all divvied-up”. Apple later scaled this down to just the top 600 games on Steam. Valve is not having any of it, of course. Valve’s argument goes on to explain to the court that it is not a competitor in the mobile space (this is, after all, a dispute that began with Fortnite on iOS), and makes the point that “Valve is not Epic, and Fortnite is not available on Steam.” It further says that Apple is using Valve as a shortcut to a huge amount of third party data that rightfully belongs to those third parties. The conclusion of Valve’s argument calls for the court to throw Apple’s subpoena out. “Somehow, in a dispute over mobile apps, a maker of PC games that does not compete in the mobile market or sell ‘apps’ is being portrayed as a key figure. It’s not. The extensive and highly confidential information Apple demands about a subset of the PC games available on Steam does not show the size or parameters of the relevant market and would be massively burdensome to pull together. Apple’s demands for further production should be rejected.” This feels weird and wrong in so many ways, so much so that it almost feels as if Apple is trying to gain insight into a massive market – PC games – that it is not a part of – yet. The amount and detailed nature of the data Apple is requesting is so bizarre and over the top, that the only logical conclusion I can draw is that Apple wants this data for potential competitive purposes, and not for legal purposes at all.

Google, Facebook tell SCOTUS it should be harder for you to sue them

Suing technology firms when they mess up is already hard, especially over privacy violations. Now, Facebook, Google, and the trade groups representing all the big tech firms are asking the Supreme Court to make it even harder for class actions to pursue cases against them. Facebook, Google, and all the others submitted a filing (PDF) to the Supreme Court this week basically arguing that if you cannot prove the specific extent to which their screwup injured you, you should not have any grounds to be part of a lawsuit against them. They are already pretty much invulnerable, but of course, they want even more protections than their sheer size, wealth, influence, and monopoly positions already give them. How surprising.