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Amazon Faces UK Lawsuit Over Allegations for Abusing Online Marketplace Position

Amazon is facing a lawsuit in Britain for damages of up to GBP 900 million (nearly Rs. 8,400 crore) over allegations the online marketplace abused its dominant position by favouring its own products, lawyers said.

Consumer rights advocate Julie Hunter plans to bring the collective action on behalf of British consumers who have made purchases on Amazon since October 2016, lawyers representing her said.

The proposed case — which Amazon said was “without merit” — would be the latest mass action against a tech giant to be filed at London’s Competition Appeal Tribunal (CAT).

Law firm Hausfeld, which represents Hunter, said on Thursday that Amazon has breached competition law by using “a secretive and self-favouring algorithm” to promote its own products through the “Buy Box” feature on its website.

Hunter said in a statement, “Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics. Other sellers, however good their offers might be, are effectively shut out.”

An Amazon spokesperson said in a statement, “This claim is without merit and we’re confident that will become clear through the legal process.”

The lawsuit is expected to be filed at the CAT by the end of this month and will have to be certified by the tribunal before it can proceed.

It is being brought on an “opt-out” basis, meaning that any potential claimants will be included in the claim unless they choose to opt out.

The case follows the announcement by Britain’s antitrust watchdog in July that it is investigating Amazon over suspected breaches of competition law, including how it selects which products are placed within the “Buy Box” feature.

Amazon has faced similar probes elsewhere, recently making an offer to the European Commission to avert possible hefty EU antitrust fines.

The platform has also declined to describe its product-search system to an Australian competition regulator which has heard complaints of large marketplace platforms giving preference to in-house wares.

The CAT authorised an estimated GBP 920 milion (nearly Rs. 8,600 crore) damages claim against Google in July and approved another case worth up to GBP 1.7 billion (nearly Rs. 15,900 crore) against Apple in May.

The tribunal is also due to decide in January whether to give the go-ahead to a claim valued at up to GBP 2.2 billion (nearly Rs. 20,600 crore) against Meta Platforms, the owner of Facebook and Instagram, over alleged anti-competitive behaviour.

Google and Apple deny the allegations against them, according to court filings, and Meta did not immediately respond to a Reuters request for comment.

© Thomson Reuters 2022

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Meta Built AI That Translates Spoken-Only Language Under Universal Speech Translator Project

Meta on Wednesday said that it built an artificial intelligence system that translates Hokkien into English even though the Taiwanese language lacks a standard written form.

The Silicon Valley tech titan that owns Facebook and Instagram billed the work at its Universal Speech Translator project as an effort to enable users from around the world to socialise regardless of the languages they speak.

When Facebook renamed itself as Meta a year ago, co-founder and chief Mark Zuckerberg said the company was focusing on a shift to online life playing out in virtual realms, a concept referred to as the metaverse.

“Spoken communications can help break down barriers and bring people together wherever they are located — even in the metaverse,” Meta said in a blog post.

The fledgling system for translating Hokkien was billed by Meta as the first artificial intelligence-powered “speech-to-speech translation system developed for an unwritten language.”

The translation technology, which the tech firm said will be shared for others to use, allows someone speaking Hokkien to converse with someone who speaks English, but only with one full sentence at a time, according to Meta.

“It’s a step toward a future where simultaneous translation between languages is possible,” Meta said.

“The techniques we pioneered with Hokkien can be extended to many other unwritten languages and eventually will work in real time.”

Hokkien is widely spoken within the Chinese diaspora. It is used by 16 million people across Asia and is spoken by three quarters of the population of Taiwan, according to the French National Institute of Oriental Languages and Civilizations. 

But the language lacks a standard written form, making it a challenge to train AI models how to interpret what is said, according to Meta.

More than 40 percent of the world’s 7,000 existing languages are primarily spoken, without a standard or widely known written form, the tech firm said.

“In the future, all languages, whether written or unwritten, may no longer be an obstacle to mutual understanding,” Meta said.

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Russian Lawmaker Urges WhatsApp Ban, Advocates Use of Domestic Software

A Russian lawmaker on Wednesday urged state institutions to stop using WhatsApp messenger and the industry ministry sought to promote domestically produced software as Russia tries to wean itself off Western technology.

WhatsApp owner Meta Platforms was found guilty of “extremist activity” in Russia in March and later added to financial monitoring agency Rosfinmonitoring’s list of “terrorists and extremists”. Meta’s lawyer in court has said Meta was not carrying out extremist activity and was against Russophobia.

Russia blocked Meta’s Facebook and Instagram in March, objecting to restrictions on Russian media and some posts permitted by users in Ukraine.

Widely used among Russians, WhatsApp has always remained available, but Anton Gorelkin, deputy head of the Russian parliament’s committee on information policy, on Wednesday said he personally would be deleting the app and recommended a wider ban.

“I think it is necessary to introduce a full ban on WhatsApp use for official purposes by the Russian state and municipal employees,” Gorelkin wrote on Telegram, an alternative messenger that is very popular in Russia.

“Whether it is a Russian alternative or from Dubai does not matter — the main thing is that it does not belong to a company that openly participates in the information war against our country and is included on the list of terrorist and extremist organisations.”

Russia has acknowledged major shortcomings with its electronics industry. As Western sanctions and an exodus of foreign firms stymie its access to technology imports and solutions, Moscow has sought to boost the industry with tax breaks and preferential loans.

Vasily Shpak, deputy industry and trade minister, said the niche vacated by foreign telecoms manufacturers should be filled by domestic ones.

“There will be no going back,” Interfax news agency quoted Shpak as saying, adding that firms exiting the country must not be allowed to return to the same niches they have vacated.

“This niche should be filled by our producers,” Shpak said, calling for electronics products with domestic software to form the “basis of Russia’s technological independence”.

© Thomson Reuters 2022

 

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Meta Accepts CMA Order to Sell Giphy After Losing Appeal in UK Antitrust Battle

A UK competition regulator on Tuesday re-issued its order for Facebook owner Meta to sell animated graphics startup Giphy in a final decision after a failed appeal.

The Competition and Markets Authority (CMA) said in a statement that Giphy must be “sold off in its entirety”, having already ruled last year that the acquisition would hit competition and advertising.

The regulator has again ordered the sale after the US tech giant lost an appeal over the purchase.

The watchdog argued the deal would limit choice for UK social media users and reduce innovation in UK display advertising.

“The CMA has concluded the only way to avoid the significant impact the deal would have on competition is for Giphy to be sold off in its entirety to an approved buyer,” it said in a final verdict.

Giphy is a platform and search engine for “stickers” and other products using the graphics interchange format, or GIFs.

Meta had announced the purchase for a reported $400 million (roughly Rs. 3,289 crore) in May 2020.

“This deal would significantly reduce competition in two markets,” added Stuart McIntosh, chair of the CMA’s inquiry group, in the statement.

“It has already resulted in the removal of a potential challenger in the UK display ad market, while also giving Meta the ability to further increase its substantial market power in social media.

“The only way this can be addressed is by the sale of Giphy.”

McIntosh said that the sale would promote “innovation in digital advertising, and also ensure UK social media users continue to benefit from access to Giphy.”

In response, Meta expressed disappointment but said it would “accept today’s ruling as the final word on the matter”.

“We are grateful to the Giphy team during this uncertain time for their business, and wish them every success,” said a Meta spokesperson.

“We will continue to evaluate opportunities — including through acquisition — to bring innovation and choice to more people in the UK and around the world.”

New York-based Giphy, founded in 2013, is one of the world’s top GIF-sharing platforms with more than 700 million daily users.

The CMA had in late 2021 fined social media giant Facebook, whose parent group is now known as Meta, more than EUR 50 million (roughly Rs. 405 crore) for deliberately failing to provide details of the takeover.

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Google May Face EU Antitrust Charges Over Its Digital Advertising Business

Alphabet unit Google could face antitrust charges next year over its digital advertising business, with EU regulators frustrated over the slow pace of settlement talks with the company, people familiar with the matter said on Thursday.

Google‘s ad business is Alphabet‘s biggest moneymaker, accounting for about 80 percent of annual revenue, despite efforts over the past decade to push into selling hardware, subscription services and cloud computing technology. The European Commission launched an investigation into Google’s adtech business in June last year, concerned that the US tech giant may be getting an unfair advantage over rivals and advertisers.

The company, which risks its fourth billion-EUR fine, subsequently sought to settle the case but concessions were minor and very preliminary, one of the people said. Google has racked up more than EUR 8 billion (nearly Rs. 64,100 crore) in EU antitrust fines in the last decade. The EU competition enforcer is likely to issue the charges early next year although the timing may still change, one of the people said.

The Commission declined to comment. Google, which is the world’s leading seller of online advertising, well ahead of Facebook and Instagram owner Meta Platforms, had no immediate comment.

Last month, Google was reported to be facing similar claims for damages to the tune of EUR 25.4 billion (roughly Rs. 2,04,500 crore) in two lawsuits. The Alphabet-owned firm was reportedly facing action in a Dutch court and the UK’s Competition Appeal Tribunal, over the company’s digital advertising practices.

Publishers have previously complained about the firm’s adtech practices, prompting investigations from regulators in Europe.

Previously, Google was reported to be facing scrutiny into its adtech practices by both the European Commission and the Competition and Markets Authority (CMA) in the UK.

© Thomson Reuters 2022

 

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Meta Ordered to Pay Voxer $174.5 Million Over Violation of Live Streaming Patents: All Details

A US jury on Wednesday ordered Meta to pay $174.5 million (roughly Rs. 1405 crore) for violating live-streaming patents developed by a US Army veteran seeking to fix shortcomings in battlefield communications.

A trial in Texas federal court ended with jurors deciding that “live” features at Facebook and Instagram used technology patented by Voxer, a company co-founded by Tom Katis, legal documents showed.

“We believe the evidence at trial demonstrated that Meta did not infringe Voxer’s patents,” a company spokesperson said in response to an AFP inquiry.

“We intend to seek further relief, including filing an appeal.”

Katis had reenlisted in the army after the September 11, 2001 attacks in the United States and served as a Special Forces communications sergeant in Afghanistan, court filings said.

When his combat unit was ambushed in Kunar province, he felt that the systems for coordinating reinforcements, medical evacuations and more “were ill-suited for time-sensitive communications with multiple groups in a highly disruptive environment,” the complaint said.

“Mr. Katis and his team began developing communications solutions in 2006 to remedy these shortcomings,” his lawyers said.

“The new technologies enabled transmission of voice and video communications with the immediacy of live communication and the reliability and convenience of messaging.”

Facebook approached San Francisco-based Voxer about potential collaboration after it launched a Walkie Talkie app in 2011, but no agreement was reached, according to legal documents.

Instead, the lawsuit argued, Facebook went on to launch Facebook Live and Instagram Live, incorporating Voxer technology into the features.

Buying an affordable 5G smartphone today usually means you will end up paying a “5G tax”. What does that mean for those looking to get access to 5G networks as soon as they launch? Find out on this week’s episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Twitter Tests New Tools to Expand Recommendations, Allows Users to Remove Unrelated Tweets From Timeline

Twitter is expanding how it recommends posts from accounts that users do not follow, the social media company announced on Tuesday. As part of the expansion, it is also building tools for users to control and provide feedback on that content.

“With millions of people signing up for Twitter every day, we want to make it easier for everyone to connect with accounts and Topics that interest them,” Twitter said in a blog post.

The tests come as social media companies double down this year on what they call “unconnected content,” or posts from accounts users do not follow, after short video app TikTok shot to prominence relying entirely on algorithm-driven suggestions.

Among the new designs Twitter has been testing is placement of “related tweets” below conversations on a tweet detail page, said Angela Wise, a Senior Director of Product Management responsible for “discovery” on the service.

Twitter is also experimenting with an “X” tool that users may click to remove recommended tweets they do not like from their timelines, the blog post said.

Competitor Meta Platforms is aiming to double the percentage of recommended content that fills its users’ feeds on Facebook and Instagram by the end of 2023, it disclosed in July.

Twitter is making less of a wholesale shift than that, having embraced recommended tweets in its home timeline as far back as 2014, although at least some of its redesigns likewise include nods to TikTok.

In one recent experiment presenting a choice between algorithmic and chronological versions of its home timeline, it renamed the algorithmic version “For You,” the same as TikTok’s main page, for example.

Twitter’s Wise said the company’s discovery efforts were largely aimed at new users, who have yet to figure out which accounts to follow and generally send the company fewer signals about their interests than do prolific longtime tweeters.

Some users have complained about “related tweets” exposing them to irrelevant hyperpartisan content and creating confusion over which tweets were part of a conversation and which were suggested by algorithm.



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Meta Partners With Qualcomm For Custom Virtual Reality Chips: Report

Meta is partnering with Qualcomm to build custom chips for its Quest virtual reality devices, the companies announced at a consumer electronics conference in Berlin on Friday. The engineering and product teams of both companies will work together to produce the chips and they will run on Qualcomm’s Snapdragon platforms. Meta, which owns Facebook and Instagram, is investing heavily in virtual and augmented reality as part of its efforts to build the “metaverse”. It is expected to unveil a pair of AR (augmented reality) glasses in 2024.

According to a report by Reuters, Meta and Qualcomm have struck an agreement to produce custom chipsets for Quest virtual reality devices, which would be powered by Qualcomm’s Snapdragon platforms.

They will be optimised specifically for the Quest’s system specifications, the report adds, quoting Meta spokesperson Tyler Yee as saying. The agreement reportedly covers only virtual reality devices — Meta is designing its own custom silicon chips to power the next generation of its augmented and virtual reality devices, he added.

“There could be situations where we use off-the-shelf silicon or work with industry partners on customizations, while also exploring our own novel silicon solutions. There could also be scenarios where we use both partner and custom solutions in the same product,” Yee told Reuters.

Meta’s virtual reality devices, including the latest Quest 2 headsets, use Qualcomm’s chips. The firm’s metaverse push also includes augmented reality glasses and goggles. Codenamed Project Nazare, the first generation of Meta’s AR glasses are expected to arrive in 2024.

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Facebook, Instagram Removed 2.7 Crore Posts in India During July: All Details

Meta-owned social media platforms Facebook and Instagram took action against a total of 2.7 crore posts on the social media platforms in July, according to its monthly report. The firm, which is an intermediary under the IT Rules, took down 1.73 crore spam posts and 23 lakh posts for violent and graphic content, as part of its efforts to comply with the government’s regulations for social media platforms. Meta also published details of actions taken on complaints under the grievance redressal mechanism, stating it had responded to 100 percent of user reports.  

In its monthly report under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, for July published on Wednesday, Meta revealed that the company had removed 2.5 crore posts on Facebook, and 20 lakh posts on Instagram in July. The company publishes regular reports on actions taken on content during the previous month. 

According to Meta’s latest report, the company removed 1.73 crore instances of spam on Facebook, with a “proactive rate” of 99.6 percent. In addition to the action taken on spam, 1.1 lakh posts related to hate speech, 23 lakh posts related to violent and graphic content, and 27 lakh posts with nudity and sexual content were removed from the platform with proactive detection rates of 99.9 and 99.4 percent, respectively. 

The company says that over 9 lakh posts on Instagram were related to suicide and self-injury, while over 22,000 instances of hate speech and 3.7 lakh posts related to nudity and sexual content were removed from the photo and video sharing service.  The proactive detection rates for these types of content were 99.5 percent, 77.4 percent, and 96 percent, respectively. 

Under the IT Rules, Meta’s social media platforms are expected to respond to users’ complaints via a grievance redressal mechanism. The company said that it received 626 and 1033 reports from users on Facebook and Instagram respectively, and claims that it responded to all user reports. 

On Facebook, the company resolved the issues for 603 reports by providing appropriate tools, taking action on nine out of the 23 remaining complaints based on the company’s policies. 

Meanwhile, on Instagram, the company says it resolved issues for users in in 945 cases with the help of the required tools, while action was taken on 35 of the remaining 88 reports, according to Meta. The company says it expects to publish subsequent editions of the report with a delay of 30 to 45 days after the reporting period. 

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