Tag: big tech

Google, Apple and Meta to Face First Digital Markets Act Probes in the EU

Apple, Alphabet’s Google and Meta Platforms will be investigated for potential breaches of the EU’s new Digital Markets Act, European antitrust regulators said on Monday, potentially leading to hefty fines for the companies.

The European Union law, effective from March 7, aims to challenge the power of the tech giants by making it easier for people to move between competing online services like social media platforms, internet browsers and app stores. That should in turn open up space for smaller companies to compete.

Violations could result in fines of as much as 10% of the companies’ global annual turnover.

U.S. antitrust regulators are also challenging Big Tech over alleged anti-competitive practices in a crackdown that could even lead to companies being broken up.

Tech companies say they have deployed thousands of engineers to meet a Digital Markets Act requirement that six “gatekeepers” – which provide services like search engines and chat apps used by other businesses – give users and rivals more choices.

But the European Commission said on Monday it suspected that the measures taken fall short of effective compliance under the DMA, confirming a Reuters story.

Asked if the Commission was rushing the process just two weeks after the act kicked in, EU industry chief Thierry Breton said the investigations should not be a surprise.

“The law is the law. We can’t just sit around and wait,” he told a press conference.

Apple compliance

At issue is whether Apple complies with obligations to allow users to easily uninstall software applications on its iOS operating system, to change default settings on iOS or access choice screens allowing them to switch to a rival browser or search engine on iPhones.

Another concern for regulators is “steering”: whether Apple imposes limitations that hinder app developers from informing users about offers outside its App Store free of charge.

Apple said it was confident its plan complied with the DMA, adding that it had shown responsiveness to the Commission and developers throughout the process and incorporated their feedback into its changes.

Regulators say the anti-steering issue also applies to Alphabet. The investigation will examine whether it favours its vertical search engines such as Google Shopping, Google Flights and Google Hotels over rivals, and whether it discriminates against third-party services on Google search results.

Fees or no fees

The Commission also singled out Apple and Alphabet’s fee structures, saying they went against the DMA’s “free of charge” requirement. Both companies recently introduced new fees for some services.

Breton said Meta, which introduced a no-ads subscription service in Europe last November that has triggered criticism from rivals and users, should offer free alternative options.

A Meta spokesperson said the company was endeavouring to comply with the act’s guidance.

“Subscriptions as an alternative to advertising are a well-established business model across many industries, and we designed Subscription for No Ads to address several overlapping regulatory obligations, including the DMA,” the spokesperson said.

Google said it has made significant changes to its services and would defend its approach in the coming months.

The Commission is also taking steps to investigate Apple’s new fee structure for alternative app stores and Amazon’s ranking practices on its marketplace.

Amazon is another DMA “gatekeeper”, along with Microsoft and TikTok’s Chinese owner ByteDance.

“Amazon is compliant with the Digital Markets Act and has engaged constructively with the European Commission on our plans since the designation of two of our services,” an Amazon spokesperson said. “We continue to work hard every day to meet all of our customers’ high standards within Europe’s changing regulatory environment.”

The EU executive, which aims to wrap up the investigations within a year, the timeframe set out under the DMA, said it has ordered the companies to retain certain documents, allowing them to access relevant information in its current and future probes.

The EU investigations came amid escalating criticism from apps developers and business users about shortcomings in the companies’ compliance efforts.

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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Amazon Challenges EU Online Content Rules, Other Big Tech Firms Expected to Follow Suit

Amazon has launched a legal challenge against its inclusion in a group of companies subject to tough European Union online content rules, in a move that technology experts have said may prompt other tech giants to follow suit.

Amazon’s challenge at the Luxembourg-based General Court, Europe’s second highest, is the first by a Big Tech company and came two weeks after German online retailer Zalando sued the European Commission over the same issue.

Under the Digital Services Act (DSA), which came into force last year, 19 online platforms and search engines were labelled as very large online platforms (VLOP) as they have more than 45 million users. The VLOP designation requires companies to do more to tackle illegal online content.

“If the VLOP designation were to be applied to Amazon and not to other large retailers across the EU, Amazon would be unfairly singled out and forced to meet onerous administrative obligations that don’t benefit EU consumers,” an Amazon spokesperson said.

The U.S. company said it is not the largest retailer in any of the EU countries where it operates and that its bigger rivals in these countries have not been designated as such.

“Amazon doesn’t fit this description of a ‘Very Large Online Platform’ under the DSA and therefore should not be designated as such,” the spokesperson said.

The company asked the General Court to annul its designation. The EU executive did not immediately respond to a request for comment.

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Amazon’s Acquisition of iRobot Faces New Challenges From EU Antitrust Regulators

Amazon‘s $1.7 billion (nearly Rs. 14,100 crore) acquisition of robot vacuum cleaner maker iRobot may reduce competition and strengthen Amazon’s position as online marketplace provider, EU antitrust regulators warned on Thursday.

The European Commission opened a full-scale investigation and will decide by November 15 whether to clear or block the deal.

“We continue to work through the process with the European Commission and are focused on addressing its questions and any identified concerns at this stage,” an Amazon spokesperson told Reuters.

Antitrust enforcers around the world have stepped up scrutiny of Big Tech acquiring smaller rivals, concerned about the accumulation of troves of data by a few companies, and big players leveraging their dominance into new markets.

The acquisition announced in August last year would add iRobot’s Roomba robot vacuum to Amazon’s portfolio of smart devices, which include the Alexa voice assistant, smart thermostats, security devices and wall-mounted smart displays.

IRobot made its first Roomba robot vacuum in 2002. Amazon has previously said the vacuum cleaner market is very competitive, with lots of Chinese players.

“The Commission is concerned that the transaction would allow Amazon to restrict competition in the market for robot vacuum cleaners and to strengthen its position as online marketplace provider, ” the EU executive said.

“The Commission closely cooperated with other competition authorities during the initial investigation and will continue such cooperation during the in-depth investigation (…) the opening of an in-depth inquiry does not prejudge the outcome of the investigation”.

The Amazon spokesperson also said the company could “offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers.”

The EU competition enforcer’s decision confirmed a Reuters story last month and came a month after the UK antitrust agency cleared the deal unconditionally after a preliminary review.

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Meta Says Subsidies From Big Tech Should Be Last Option for EU Telcos

Meta Platforms said on Thursday subsidies from Big Tech should be the last option for European Union telecoms operators trying to get US companies to foot some of their network cost.

Deutsche Telekom, Orange, Telefonica and other operators have lobbied for two decades for US tech giants to contribute to 5G and broadband roll-out, saying they create a huge part of the region’s internet traffic.

The European Commission launched a consultation early this year on whether tech giants should bear some of the costs of Europe’s telecoms network.

Companies such as Meta have said such a move would not solve the telcos’ financial problems and ignores hefty investments by tech companies.

Telcos that receive subsidies should also face strong regulatory oversight, including a process to ensure the funds are only used for network investment, Meta said in a response to the European Commission’s exploratory consultation on network fee.

A majority of European Union countries have also rejected the push to levy a network fee on Big Tech, sources told Reuters earlier this month.

The European Commission did not immediately respond to a Reuters request for comment.

Meta said “the Commission should first require a demonstration by any telco seeking subsidies that it has first engaged with CAPs (content application providers) in good faith to reach technical, non-subsidy solutions”.

It added any subsidies be awarded by a tender to ensure availability to all network operators, not just the large players.

“Incumbent operators receiving the functional equivalent of government bailouts should have additional restrictions imposed on them such as elimination of executive bonuses, caps on compensation, freezes on dividends,” it said.

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Big Tech Gets Support From EU Regulators Against Telcos’ Network Fee Push

EU telecoms regulators’ group BEREC on Friday warned the European Commission against proposing legislation pushed by the sector to get Big Tech‘s help to pay for the rollout of 5G and broadband, saying it did not see a competition problem or a market failure.

The comments from The Body of European Regulators for Electronic Communications (BEREC) to the European Commission which is now looking into the issue underscores the high-stakes battle between Big Tech and Europe’s major telecoms operators.

“There is no evidence of a competition problem or a market failure to the detriment of end-users regarding IP-interconnection,” the group said.

Echoing Big Tech’s arguments, BEREC said it has its doubts about a mandatory network fee levied on the companies.

“It is questionable that mandatory payments from CAPs (content and application providers) to ISPs (internet service providers) would lead to member states meeting the connectivity targets,” BEREC said.

“On the contrary, it is rather likely that ISPs in already well supplied areas would benefit the most.”

It said a mandatory fee may disadvantage smaller telecoms operators with less economies of scale and bargaining power, while other telecoms companies with their own streaming or cloud services may discriminate and unfairly promote these services.

Such a fee may also lead to price hikes for consumers, disincentivise Big Tech from investments and breach EU net neutrality rules, BEREC said.

Deutsche Telekom, Orange, Telefonica and Telecom Italia have been lobbying for Big Tech to shoulder some of the network costs.

Alphabet‘s Google, Apple, Meta Platforms, Netflix, Amazon.com and Microsoft, which telcos say account for more than half of data internet traffic, have rejected the proposal.

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Facebook Parent Meta Plans Additional Layoffs in Coming Weeks: Report

Facebook-parent Meta Platforms is planning additional layoffs to be announced in multiple rounds over the next few months, which could match the 13 percent job cut tally from last year, the Wall Street Journal reported on Friday citing people familiar with the matter.

Meta let go of 11,000 employees four months ago and would be the first Big Tech company to announce a second round of mass layoffs.

The first wave of the new cuts would be announced next week and are likely to hit non-engineering roles the hardest, according to the report.

The company is also expected to shut down some projects and teams in conjunction with these cuts, the report added.

Meta did not immediately respond to a Reuters request for comment.

In other news, Meta Platforms said on Friday it is exploring strategic alternatives for customer service company Kustomer that it acquired in a process ending last year.

“We are currently exploring strategic alternatives for Kustomer and will continue to support Kustomer’s product and customer base throughout this process,” the Facebook owner said in an emailed statement to Reuters, without providing additional details on the alternatives.

The Wall Street Journal, which first reported the news on Friday, said Meta is planning to divest Kustomer as it looks to looks to refocus on its core business, citing the company and people familiar with the planned deal.

Kustomer sells CRM software for businesses to communicate with consumers by phone, email, text messages, WhatsApp, Instagram and other channels. It had seen a usage soar during the COVID-19 pandemic.

Meta has made the decision to focus on its fastest growing business messaging offerings, including the monetization opportunity for WhatsApp in light of the company’s “efficiency efforts,” the company said.

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TikTok Fined RUB 3 Million for Violating Russian Law Against Spreading LGBT Propaganda

A Russian court on Tuesday fined ByteDance-owned TikTok RUB 3 million (roughly Rs. 41,50,000) over the social media platform’s refusal to delete content Russian authorities say violates laws against spreading “LGBT propaganda.”

News agencies reported that the case against TikTok was based on accusations that the company was “promoting non-traditional values, LGBT, feminism, and a distorted representation of traditional sexual values” on its platform.

Russia is considering expanding its existing “gay propaganda” law, passed in 2013, which bans any person or entity from promoting homosexual relationships to children. Lawmakers have argued the law should be expanded to include adults as well and fines for exposing minors to “LGBT propaganda” should be increased.

TikTok, found guilty of an administrative offence for failing to delete prohibited content, did not immediately respond to a request for comment.

Interfax reported that a TikTok representative in the courtroom had insisted the proceedings be terminated, without giving further details.

The fine marks the latest step in Moscow’s long-running dispute with Big Tech, with fines over content, demands over data storage and some outright bans all throttling the influence and reach of Western firms in the country.

Russian authorities say they are defending morality in the face of what they argue are un-Russian liberal values promoted by the West, but human rights activists say the law has been broadly applied to intimidate Russia’s LGBT community.

In August, a Russian court fined streaming service Twitch RUB 2 million (roughly Rs. 26,21,100) as it hosted a short video which is claimed to contain “fake” information about alleged war crimes in the Ukrainian town of Bucha. Previously, Russia has also repeatedly threatened to fine other social platforms — including Google, Twitter and Wikipedia — which has been accused of hosting “fake” content related to its military campaign in Ukraine.

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US Senator Campaigns to Pass Antitrust Bill Against Big Tech as Time Runs Short

US congressional leader on antitrust, Senator Amy Klobuchar, on Tuesday called for Congress to pass a bill to rein in Big Tech, as prospects of it becoming law seemed to be dimming. Supporters have been pressing Senate Majority Leader Chuck Schumer to schedule a vote on the bill that would ban self-preferencing by Big Tech platforms like Amazon.com and Alphabet’s Google. Klobuchar, a lead sponsor along with Republican Chuck Grassley, has said she has the 60 votes required to pass the measure.

“We must pass legislation to put rules of the road in place for dominant tech companies,” Klobuchar said in a statement Tuesday. “These platforms use their dominance to unfairly disadvantage their rivals, all at the expense of competition and consumers.”

She is expected to give a speech on the Senate floor Tuesday evening on the Big Tech antitrust bill and related matters.

Schumer said Tuesday his emphasis was on a bill to boost chip manufacturing, and on judicial confirmations. Asked about antitrust bills, he said: “I’m working with Senator Klobuchar. I support these bills. … We have to see that we have 60 votes.”

The Senate has three weeks, including this one, before its scheduled August recess. When lawmakers return in September, expectations are that the focus will be on November midterm elections.

There has been discussion of considering Klobuchar’s bill along with another bipartisan measure that addresses Apple and Google’s control of their app stores.

Several bills to regulate the tech industry have been proposed, and experts thought these two antitrust bills had the best chance of passing this year because of bipartisan outrage over big tech companies. Democrats are worried about antitrust concerns while Republicans have accused tech platforms of stifling conservative voices.

An opponent of the measure said on Tuesday that it was “highly unlikely” to become law this year. Supporters disagree, and have continued to lobby for the anti-Big Tech measures.

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Digital Markets Act, Digital Services Act Passed as EU Moves to Rein in Big Tech; Enforcement Concerns Remain

EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in the power of tech giants such as Google, Amazon, Apple, Meta, and Microsoft, but enforcing them could be an issue due to regulators’ limited resources.

In addition to the rules known as the Digital Markets Act (DMA), lawmakers also approved the Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content.

Companies face fines of up to 10 percent of annual global turnover for DMA violations and 6 percent for DSA breaches. Lawmakers and EU states had reached a political deal on both sets of rules earlier this year, leaving some details to be ironed out.

The two rule books for Big Tech built on EU antitrust chief Margrethe Vestager’s experiences with investigations into the companies. She has set up a DMA taskforce, with about 80 officials expected to join up, which critics say is inadequate.

Lawmaker Andreas Schwab, who steered the issue through the European Parliament, has called for a bigger task force to counter Big Tech’s deep pockets.

European Consumer Organisation (BEUC) echoed the same worries.

“We raised the alarm last week with other civil society groups that if the Commission does not hire the experts it needs to monitor Big Tech’s practices in the market, the legislation could be hamstrung by ineffective enforcement,” BEUC Deputy Director General Ursula Pachl said in a statement.

The DMA is set to force changes in companies’ businesses, requiring them to make their messaging services interoperable and provide business users access to their data.

Business users would be able to promote competing products and services on a platform and reach deals with customers off the platforms.

Companies will not be allowed to favour their own services over rivals’ or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard.

The DSA bans targeted advertising aimed at children or based on sensitive data such as religion, gender, race and political opinions. Dark patterns, which are tactics that mislead people into giving personal data to companies online, will also be prohibited.

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Russia Says Cases Opened Against Google, Others For Personal Data Legislation Violation

Russia’s communications regulator Roskomnadzor said on Friday it had opened administrative cases against Alphabet Inc’s Google and six other foreign technology companies for alleged violations of personal data legislation.

Moscow has clashed with Big Tech over content, censorship, data and local representation in a simmering dispute that has erupted into a full-on information battle since Russia sent tens of thousands of troops into Ukraine on February 24.

Russia fined Google RUB 3 million (roughly Rs. 35 lakh) last year for not storing the personal data of Russian users in databases on Russian territory, and on Friday said it had opened a new case over what it called Google’s repeated failure to comply with Russian legislation.

Google, which declined to comment, could be fined between RUB 6-18 million (roughly Rs. 70 lakh to Rs. 80 lakh), Roskomnadzor said.

The regulator also said it had opened cases against six other companies – Airbnb, Pinterest, Likeme, Twitch, Apple and United Parcel Service – for alleged first-time offences carrying a potential fine of RUB 1-6 million (roughly Rs. 1 lakh to Rs. 70 lakh).

Likeme could not be reached, while the other five companies had no immediate comment.

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