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Sony

Sony Agrees to 10-Year 'Call of Duty' Deal with Microsoft (theverge.com) 26

The Verge reports that Sony "has agreed to a 10-year deal for Call of Duty with Microsoft to keep the franchise on PlayStation after the proposed Activision Blizzard acquisition." Microsoft Gaming CEO Phil Spencer says Sony and Microsoft have agreed to a "binding agreement" to keep Call of Duty on PlayStation. This ends a bitter battle between the companies that has been waged both privately and publicly over the past year after Microsoft announced its proposed acquisition of Activision Blizzard in January 2022...

Kari Perez, head of global communications at Xbox, confirmed the 10-year commitment to The Verge. Perez later confirmed to The Verge that the deal is only for Call of Duty, though. That makes the deal similar to a 10-year agreement between Microsoft and Nintendo, but not the various deals Microsoft has struck with Nvidia and other cloud gaming platforms to bring Call of Duty and other Xbox / Activision games to rival services...

Microsoft has always maintained it would keep Call of Duty on PlayStation, arguing it doesn't make financial sense to pull the game from Sony's consoles. Xbox chief Spencer tried to settle the argument in November before appearing in court last month and reiterating, under oath, that Call of Duty would remain on PlayStation 5. All eyes are now on the regulatory situation in the UK, after Microsoft's proposed deal was blocked there earlier this year.

The Financial Times writes that the Sony-Microsoft agreement "signalled a truce between the two gaming giants after a bruising 18-month battle that had seen the Japanese company become the biggest opponent to the acquisition. It follows regulatory breakthroughs for Microsoft on both sides of the Atlantic last week that have left it on brink of clinching victory for a deal that is expected to reshape the gaming industry."

The Verge also shares this interesting detail: Tensions over the fate of Microsoft's Activision Blizzard deal really came to a head when [Sony's] Jim Ryan spoke to Activision CEO Bobby Kotick on February 21st, 2023 — the same day Microsoft, Activision, Sony, and others were meeting with EU regulators. Ryan said to Kotick, "I don't want a new Call of Duty deal. I just want to block your merger." Jim Ryan confirmed the meeting during testimony in the FTC v. Microsoft hearing. "I told him [Bobby Kotick] that I thought the transaction was anti-competitive, I hoped that the regulators would do their job and block it."
Cellphones

It's Official: Smartphones Will Need To Have Replaceable Batteries By 2027 (androidauthority.com) 283

In mid-June, the European Parliament voted in favor of new legislation that would, among other things, require batteries in consumer devices like smartphones to be easily removable and replaceable. This week, the European Council officially agreed to the new regulation. Now, when the European Council and Parliament sign on the dotted line, the clock will start ticking for manufacturers to ensure their devices have replaceable batteries by 2027 -- that is, if they want to sell their devices in the EU. Android Authority reports: Now, the only step left is for the European Council and Parliament to sign on the dotted line. Once they do, the clock starts ticking: any manufacturer wanting to sell phones in the EU must ensure those phones have replaceable batteries by 2027. [...] The grace period from now until 2027 is to give OEMs enough time to redesign their products. This new law states, specifically, that users should be able to replace a battery in their phone without any special expertise or tools. Being that almost all smartphones today are designed like a "glass sandwich" that relies on extensive use of adhesives, the very fundamentals of how companies design phones will need to change. It's too early to say yet how this law will change iPhones, Galaxy S phones, Pixels, etc. However, they will change in response to this law, which is huge news.

Here are some other rules this new law covers related to phones with replaceable batteries:

- Collection of waste: OEMs will need to collect 63% of portable batteries that would normally go to a landfill by the end of 2027. By the end of 2030, that number should be at 73%.
- Recovery of waste: Lithium recovery from waste batteries will need to be at 50% by 2027. By the end of 2031, it should be at 80%, meaning 80% of the lithium inside a battery can be recovered and repurposed for new batteries.
- Recycling minimums: Industrial, SLI, and EV batteries will need to be made up of certain percentages of recycled content. Initially, this will be 16% for cobalt, 85% for lead, 6% for lithium, and 6% for nickel.
- Early recycling efficiency target: Nickel-cadmium batteries should have a recycling efficiency target of 80% by the end of 2025. All other batteries should be at a 50% efficiency target by 2025.

Businesses

Amazon Claims It Isn't a 'Very Large Online Platform' To Evade EU Rules (arstechnica.com) 48

An anonymous reader quotes a report from Ars Technica: Amazon doesn't want to comply with Europe's Digital Services Act, and to avoid the rules the company is arguing that it doesn't meet the definition of a Very Large Online Platform under EU law. Amazon filed an appeal at the EU General Court to challenge the European Commission decision that Amazon meets the criteria and must comply with the new regulations. "We agree with the EC's objective and are committed to protecting customers from illegal products and content, but Amazon doesn't fit this description of a 'Very Large Online Platform' (VLOP) under the DSA and therefore should not be designated as such," Amazon said in a statement provided to Ars today.

The Digital Services Act includes content moderation requirements, transparency rules, and protections for minors. Targeted advertising based on profiling toward children will no longer be permitted, for example. Amazon argued that the new law is supposed to "address systemic risks posed by very large companies with advertising as their primary revenue and that distribute speech and information," and not businesses that are primarily retail-based. "The vast majority of our revenue comes from our retail business," Amazon said. Amazon also claims it's unfair that some retailers with larger businesses in individual countries weren't on the list of 19 companies that must comply with the Digital Services Act. The rules only designate platforms with over 45 million active users in the EU as of February 17.

Amazon said it is "not the largest retailer in any of the EU countries where we operate, and none of these largest retailers in each European country has been designated as a VLOP. 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." Those other companies Amazon referred to include Poland's Allegro or the Dutch Bol.com, according to a Bloomberg report. Neither of those platforms appears to have at least 45 million active users.
A summary of the appeal provided by Amazon claimed the designation "is based on a discriminatory criterion and disproportionately violates the principle of equal treatment and the applicant's fundamental rights." In response, the EC said that "it would defend its position in court and added that Amazon still must comply with the rules by end of August, regardless of the appeal," Bloomberg wrote.

"The scope of the DSA is very clear and is defined to cover all platforms that expose their users to content, including the sale of products or services, which can be illegal," the commission said in statement reported by Bloomberg. "For marketplaces as for social networks, very wide user reach increases the risks and the platforms' responsibilities to address them."
EU

EU To Drop Ban of Hazardous Chemicals After Industry Pressure (theguardian.com) 74

The European Commission is poised to break a promise to outlaw all but the most essential of Europe's hazardous chemicals, leaked documents show. Bruce66423 shares a report: The pledge to "ban the most harmful chemicals in consumer products, allowing their use only where essential" was a flagship component of the European green deal when it was launched in 2020. It was expected that between 7,000 and 12,000 hazardous substances would be prohibited from use in all saleable products in an update to the EU's Reach regulation, including many "forever chemicals" -- or per- and polyfluoroalkyl substances (PFAS) -- which accumulate in nature and human bodies, and have been linked to various hormonal, reproductive and carcinogenic illnesses.

But the Guardian has learned that the EU's executive is on the brink of a climbdown under heavy pressure from Europe's chemical industry and rightwing political parties. The industry-led backlash is causing internal disquiet over the threat to public health and policymaking. One EU official said: "We are being pushed to be less strict on industry all the time."

EU

Big Tech Can Transfer Europeans' Data To US In Win For Facebook and Google (arstechnica.com) 23

An anonymous reader quotes a report from Ars Technica: The European Commission today decided it is safe for personal data to be transferred from the European Union to US-based companies, handing a victory to firms like Facebook and Google despite protests from privacy advocates who worry about US government surveillance. The commission announced that it "adopted its adequacy decision for the EU-US Data Privacy Framework," concluding "that the United States ensures an adequate level of protection -- comparable to that of the European Union -- for personal data transferred from the EU to US companies under the new framework. On the basis of the new adequacy decision, personal data can flow safely from the EU to US companies participating in the Framework, without having to put in place additional data protection safeguards."

In May, Facebook-owner Meta was fined 1.2 billion euros for violating the General Data Protection Regulation (GDPR) with transfers of personal data to the United States and was ordered to stop storing European Union user data in the US within six months. But Meta said at the time that if the pending data-transfer pact "comes into effect before the implementation deadlines expire, our services can continue as they do today without any disruption or impact on users." The data-transfer deal "is expected to face a legal challenge from European privacy advocates, who have long said that the US needs to make substantial changes to surveillance laws," a Wall Street Journal report said today. "Transfers of data from Europe to the US have been in question since an EU court ruled in 2020 that a previous deal allowing trans-Atlantic data flows was illegal because the US didn't give EU individuals an effective way to challenge surveillance of their data by the US government."

The EC's announcement said the new framework has "binding safeguards to address all the concerns raised by the European Court of Justice, including limiting access to EU data by US intelligence services to what is necessary and proportionate, and establishing a Data Protection Review Court (DPRC), to which EU individuals will have access." The new court "will be able to order the deletion" of data that is found to have been collected in violation of the new rules. The framework will be administered and monitored by the US Department of Commerce and the "US Federal Trade Commission will enforce US companies' compliance," the EC announcement said. EU residents who challenge data collection will have free access to "independent dispute resolution mechanisms and an arbitration panel." US companies can join the EU-US framework "by committing to comply with a detailed set of privacy obligations, for instance the requirement to delete personal data when it is no longer necessary for the purpose for which it was collected, and to ensure continuity of protection when personal data is shared with third parties," the European Commission said.
The latest deal is expected to get challenged, according to the WSJ. European Parliament member Birgit Sippel, who is in Germany's Social Democratic Party, said the "framework does not provide any meaningful safeguards against indiscriminate surveillance conducted by US intelligence agencies," according to The New York Times.

The Computer & Communications Industry Association, which represents major tech companies like Amazon, Apple, Google and Meta, said: "Today's decision means that EU and US businesses will soon have full legal certainty again to transfer personal data across the Atlantic... Data flows are vital to transatlantic trade and the EU-US economic relationship, which is worth 5.5 trillion euros per year. Nevertheless, the two economies had been left without guidelines for data transfers after an EU Court ruling invalidated the previous framework back in 2020."
Earth

Study the Risks of Sun-Blocking Aerosols, Say 60 Scientists, the US, the EU, and One Supercomputer (scientificamerican.com) 101

Nine days ago the U.S. government released a report on the advantages of studying "scientific and societal implications" of "solar radiation modification" (or SRM) to explore its possible "risks and benefits...as a component of climate policy."

The report's executive summary seems to concede the technique would "negate (explicitly offset) all current or future impacts of climate change" — but would also introduce "an additional change" to "the existing, complex climate system, with ramifications which are not now well understood." Or, as Politico puts it, "The White House cautiously endorsed the idea of studying how to block sunlight from hitting Earth's surface as a way to limit global warming in a congressionally mandated report that could help bring efforts once confined to science fiction into the realm of legitimate debate."

But again, the report endorsed the idea of studying it — to further understand the risks, and also help prepare for "possible deployment of SRM by other public or private actors." Politico emphasized how this report "added a degree of skepticism by noting that Congress has ordered the review, and the administration said it does not signal any new policy decisions related to a process that is sometimes referred to — or derided as — geoengineering." "Climate change is already having profound effects on the physical and natural world, and on human well-being, and these effects will only grow as greenhouse gas concentrations increase and warming continues," the report said. "Understanding these impacts is crucial to enable informed decisions around a possible role for SRM in addressing human hardships associated with climate change..."

The White House said that any potential research on solar radiation modification should be undertaken with "appropriate international cooperation."

It's not just the U.S. making official statements. Their report was released "the same week that European Union leaders opened the door to international discussions of solar radiation modification," according to Politico's report: Policymakers in the European Union have signaled a willingness to begin international discussions of whether and how humanity could limit heating from the sun. "Guided by the precautionary principle, the EU will support international efforts to assess comprehensively the risks and uncertainties of climate interventions, including solar radiation modification and promote discussions on a potential international framework for its governance, including research related aspects," the European Parliament and European Council said in a joint communication.
And it also "follows an open letter by more than 60 leading scientists calling for more research," reports Scientific American. They also note a new supercomputer helping climate scientists model the effects of injecting human-made, sun-blocking aerosols into the stratosphere: The machine, named Derecho, began operating this month at the National Center for Atmospheric Research (NCAR) and will allow scientists to run more detailed weather models for research on solar geoengineering, said Kristen Rasmussen, a climate scientist at Colorado State University who is studying how human-made aerosols, which can be used to deflect sunlight, could affect rainfall patterns... "To understand specific impacts on thunderstorms, we require the use of very high-resolution models that can be run for many, many years," Rasmussen said in an interview. "This faster supercomputer will enable more simulations at longer time frames and at higher resolution than we can currently support..."

The National Academies of Sciences, Engineering and Medicine released a report in 2021 urging scientists to study the impacts of geoengineering, which Rasmussen described as a last resort to address climate change.

"We need to be very cautious," she said. "I am not advocating in any way to move forward on any of these types of mitigation efforts. The best thing to do is to stop fossil fuel emissions as much as we can."

Power

Scientists Who Turned Humid Air Into Potential Renewable Power Source Say 'It Was an Accident' (theguardian.com) 156

Remember those researchers who generated electricity from the energy in air humidity?

"To be frank, it was an accident," the study's lead author, Prof Jun Yao, tells the Guardian: "We were actually interested in making a simple sensor for humidity in the air. But for whatever reason, the student who was working on that forgot to plug in the power." The UMass Amherst team were surprised to find that the device, which comprised an array of microscopic tubes, or nanowires, was producing an electrical signal regardless. Each nanowire was less than one-thousandth the diameter of a human hair, wide enough that an airborne water molecule could enter, but so narrow it would bump around inside the tube. Each bump, the team realised, lent the material a small charge, and as the frequency of bumps increased, one end of the tube became differently charged from the other. "So it's really like a battery," says Yao. "You have a positive pull and a negative pull, and when you connect them the charge is going to flow..."

"The beauty is that the air is everywhere," says Yao. "Even though a thin sheet of the device gives out a very tiny amount of electricity or power, in principle, we can stack multiple layers in vertical space to increase the power." That's exactly what another team, Prof Svitlana Lyubchyk and her twin sons, Profs Andriy and Sergiy Lyubchyk, are trying to do. Svitlana Lyubchyk and Andriy are part of the Lisbon-based Catcher project, whose aim is "changing atmospheric humidity into renewable power", and along with Sergiy they have founded CascataChuva, a startup intended to commercialise the research... Catcher and related projects [received] nearly €5.5m (£4.7m) in funding from the European Innovation Council. The result is a thin grey disc measuring 4cm (1.5in) across. According to the Lyubchyks, one of these devices can generate a relatively modest 1.5 volts and 10 milliamps. However, 20,000 of them stacked into a washing machine-sized cube, they say, could generate 10 kilowatt hours of energy a day — roughly the consumption of an average UK household. Even more impressive: they plan to have a prototype ready for demonstration in 2024...

The Lyubchyks estimate that the levelised cost of energy — the average net present cost of electricity generation for a generator over its lifetime — from these devices will indeed be high at first, but by moving into mass production, they hope to lower it significantly, ultimately making this hygroelectric power competitive with solar and wind... The team accept that it may take years to optimise a prototype and scale up production, but if they're successful, the benefits are clear. Unlike solar or wind, hygroelectric generators could work day and night, indoors and out, and in many places.

Yao explains to the Guardian that "Lots of energy is stored in water molecules in the air. That's where we get the lightning effect during a thunderstorm.

"The existence of this type of energy isn't in doubt. It's about how we collect it."

Thanks to Slashdot reader j3x0n for sharing the article.
Businesses

Amazon's iRobot Roomba Acquisition Under Formal EU Investigation (theverge.com) 20

European Union regulators have opened an official investigation into Amazon's proposed $1.7 billion acquisition of iRobot, the company behind the popular Roomba lineup of robot vacuum cleaners. The Verge reports: In a press release, the European Commission said it's concerned that "the transaction would allow Amazon to restrict competition in the market for robot vacuum cleaners ('RVCs') and to strengthen its position as online marketplace provider." The European Commission is also looking at how getting access to iRobot users' data may give Amazon an advantage "in the market for online marketplace services to third-party sellers (and related advertising services) and / or other data-related markets." The European Commission will make a decision about if it will block the deal by November 15th. Amazon announced plans to acquire iRobot for $1.7 billion in August last year.

Amazon spokesperson Alexandra Miller said in a statement: "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. iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products. We believe Amazon can offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers."
Social Networks

Meta Launches New Social Media App 'Threads' To Rival Twitter (theverge.com) 45

Instagram's new Twitter competitor called Threads launched today on the web, providing an early look at what to expect from the app that will launch on iOS and Android tomorrow. You can view the web interface here. The Verge reports: Meta briefly made Threads available on the web before pulling profiles offline a few hours later. The Verge was able to access Meta CEO Mark Zuckerberg's first thread (is that what we call them?!) using the web app, and many other brands and creators including Netflix, Gary Vee, and Instagram.

The web interface is fairly basic right now for viewing threads, with options to like, comment, repost, and share -- all prompting you to download the mobile app for the time being. If you're in an unsupported country, like markets in the EU, then you'll only be able to view threads right now. Much like Twitter, you can view an account's main posts in one section and the full reply history in another.

Fediverse integration won't be available immediately at the launch of Threads, but it's clear Instagram is looking to add this soon. Profiles include an Instagram username and link, with a threads.net label that includes the following description: "Soon, you'll be able to follow and interact with people on other fediverse platforms, like Mastodon. They can also find people on Threads using full usernames, like @zuck@threads.net."

China

EU and Japan Look To Partner On AI and Chips (cnbc.com) 7

The European Union (EU) is seeking closer cooperation with Japan in areas such as artificial intelligence to reduce reliance on China. CNBC reports: EU Commissioner Thierry Breton is meeting with the Japanese government on Monday, and artificial intelligence will be "very high" on his agenda, he said in a video posted on Twitter on Sunday. "I will engage with [the] Japanese government ... on how we can organize our digital space, including AI based on our shared value," Breton said.

Breton also said there will be an EU-Japan Digital Partnership council, to discuss areas including quantum and high-performance computing. The EU held a similar council with South Korea last week, in which the two sides agreed to cooperate on technologies such as AI and cybersecurity. Partnerships with key Asian countries with strong technology sectors come as the EU looks to "de-risk" from China -- a different approach from that of the U.S., which has sought to decouple its economy from Beijing. Part of that EU strategy involves deepening the relationship with allied countries around technology.

Breton told Reuters on Monday that the bloc and Japan will cooperate in the area of semiconductors. Japan is a key country in the semiconductor supply chain, and Tokyo has been looking to strengthen its domestic industry. Last week, a fund backed by the Japanese government proposed to buy domestic chipmaking firm JSR for around 903.9 billion yen ($6.3 billion). The EU has also been looking to strengthen its own semiconductor industry across the bloc.

Open Source

Linux Foundation's Yocto Project Expands LTS to 4 Years (linuxfoundation.org) 4

Wikipedia defines the Yocto Project as "a Linux Foundation collaborative open source project whose goal is to produce tools and processes that enable the creation of Linux distributions for embedded and IoT software that are independent of the underlying architecture of the embedded hardware."

This week the Linux Foundation shared an update on the 12-year-old Yocto Project: In an effort to support the community, The Yocto Project announced the first Long Term Support (LTS) release in October 2020. Today, we are delighted to announce that we are expanding the LTS release and extending the lifecycle from 2 to 4 years as standard.

The continued growth of the Yocto Project coincides with the welcomed addition of Exein as a Platinum Member, joining AMD/Xilinx, Arm, AWS, BMW Group, Cisco, Comcast, Intel, Meta and WindRiver. As a Member, Exein brings its embedded security expertise across billions of devices to the core of the Yocto Project...

"The Yocto Project has been at the forefront of OS technologies for over a decade," said Andrew Wafaa, Yocto Project Chairperson. "The adaptability and variety of the tooling provided are clearly making a difference to the community. We are delighted to welcome Exein as a member as their knowledge and experience in providing secure Yocto Project based builds to customers will enable us to adapt to the modern landscape being set by the US Digital Strategy and the EU Cyber Resilience Act."

"We're extremely excited to become a Platinum Partner of the Yocto Project," said Gianni Cuozzo, founder and CEO of Exein. "The Yocto Project is the most important project in the embedded Linux space, powering billions of devices every year. We take great pride in contributing our extensive knowledge and expertise in embedded security to foster a future that is both enhanced and secure for Yocto-powered devices. We are dedicated to supporting the growth of the Yocto Project as a whole, aiming to improve its support for modern languages like Rust, and assist developers and OEMs in aligning with the goals outlined in the EU Cyber Resilience Act."

EU

European Companies Claim the EU's AI Act Could 'Jeopardise Technological Sovereignty' (theverge.com) 15

Some of the biggest companies in Europe have taken collective action to criticize the European Union's recently approved artificial intelligence regulations, claiming that the Artificial Intelligence Act is ineffective and could negatively impact competition. From a report: In an open letter sent to the European Parliament, Commission, and member states on Friday, over 150 executives from companies like Renault, Heineken, Airbus, and Siemens slammed the AI Act for its potential to "jeopardise Europe's competitiveness and technological sovereignty." On June 14th, the European Parliament greenlit a draft of the AI Act following two years of developing its rules, and expanding them to encompass recent AI breakthroughs like large language AI models (LLMs) and foundation models, such as OpenAI's GPT-4. There are still several phases remaining before the new law can take effect, with the remaining inter-institutional negotiations expected to end later this year. The signatories of the open letter claim that the AI Act in its current state may suppress the opportunity AI technology provides for Europe to "rejoin the technological avant-garde." They argue that the approved rules are too extreme, and risk undermining the bloc's technological ambitions instead of providing a suitable environment for AI innovation.
Facebook

Meta Is Planning To Let People In the EU Download Apps Through Facebook (theverge.com) 28

Meta is planning to allow users in the EU to directly download apps through Facebook ads, aiming to compete with Google and Apple's app stores. The Verge's Alex Heath writes: The new type of ad is set to start as a pilot with a handful of Android app developers as soon as later this year, I've learned. Meta sees an opening to try this thanks to new regulation in the EU called the Digital Markets Act (DMA) that is expected to go into effect next spring. It deems Apple and Google as "gatekeepers" and requires that they open up their mobile platforms to alternative methods of downloading apps. Android technically allows sideloading already, though Google makes it difficult by coupling its in-app billing and licensing with the Play Store, along with the scary warnings it shows when someone tries to download an Android app from another source. Even still, Meta clearly thinks it's safer to try its test first on Android rather than Apple's iOS.

Meta's pitch to developers participating in the pilot is that, by hosting their Android apps and letting Facebook users download them directly without being kicked out to the Play Store, they'll see higher conversion rates for their app install ads. At least initially, Meta doesn't plan to take a cut of in-app revenue from participating apps, so developers in the pilot could still use whatever billing systems they want.

Businesses

FTC Prepares 'the Big One,' a Major Lawsuit Targeting Amazon's Core Business (arstechnica.com) 15

An anonymous reader quotes a report from Ars Technica: The Federal Trade Commission is preparing to file a major antitrust lawsuit accusing Amazon of "leverag[ing] its power to reward online merchants that use its logistics services and punish those who don't," Bloomberg reported today. Bloomberg described the forthcoming lawsuit as "the big one," following several earlier lawsuits filed by the FTC under Chair Lina Khan. "In the coming weeks, the agency plans to file a far-reaching antitrust suit focused on Amazon's core online marketplace, according to documents reviewed by Bloomberg and three people familiar with the case," the report said. Khan may try to force Amazon to "restructure" its business. "Based on her public comments, Khan is unlikely to accept compromises from Amazon and could seek to restructure the company -- a dramatic outcome that Amazon would surely appeal," Bloomberg wrote. [...]

Third-party sellers can rely on Amazon for warehousing, shipping, and other services through the Fulfillment by Amazon (FBA) system, but it takes a big cut out of their revenue. A recent Marketplace Pulse study based on profit and loss statements from a sample of sellers found that "Amazon is pocketing more than 50 percent of sellers' revenue -- up from 40 percent five years ago," because "Amazon has increased fulfillment fees and made spending on advertising unavoidable." "According to P&Ls provided by a sample of sellers, a typical Amazon seller pays a 15 percent transaction fee (Amazon calls it a referral fee), 20-35 percent in Fulfillment by Amazon fees (including storage and other fees), and up to 15 percent for advertising and promotions on Amazon. The total fees vary depending on the category, product price, size, weight, and the seller's business model," Marketplace Pulse wrote in February.

According to Bloomberg's article, the "FTC has amassed evidence that the company disadvantages sellers that don't use these services, and the agency is investigating an algorithm that selects merchants for the web store's coveted 'Buy Box,' where consumers can add products to their cart with one click." "The expected allegations are similar to a 2020 report from a US House subcommittee -- which counted Khan as a staff member -- and overlap with a European antitrust case that charged Amazon with rewarding sellers that use its fulfillment services and using merchants' sales data to boost its own retail business," Bloomberg wrote. Amazon agreed to a settlement with the EU in December 2022. The FTC's current investigation began two years before Khan became chair. "Amazon received the initial investigation notice in June 2019, according to documents viewed by Bloomberg. The first request for records followed two months later," the Bloomberg article said. Upon taking charge in 2021, Khan "personally helped draft some lines of questioning for investigators" and took other actions to beef up the probe into Amazon.

Apple

Apple Defies EU Over Antitrust Charges in Spotify Probe (bloomberg.com) 24

Apple is set for a showdown with European Union antitrust regulators, insisting it doesn't need to make any more changes to its App Store after it was hit by formal charges over its treatment of music streaming rivals such as Spotify. From a report: The iPhone maker will argue at a hearing in Brussels on Friday that the EU wrongly accused it of illegal curbs on the likes of Spotify that prevent developers from steering users away from the App Store. Apple will say it's already addressed any possible competition concerns over the past two years with changes that create a fair balance between the interests of Apple and app developers, according to a person familiar with the US firm's thinking, who spoke on condition of anonymity.

Apple was slapped with a revised charged sheet by the EU in February, which showed the commission had narrowed its probe, but continued to focus "on the contractual restrictions that Apple imposed on app developers which prevent them from informing iPhone and iPad users of alternative music subscription options." Spotify says that Apple's anti-steering rules prohibit it and other developers "from telling consumers about any deals or promotions through their own apps."

EU

The EU Wants To Crack Down on Rogue Efforts To Alter the Atmosphere (theverge.com) 85

An anonymous reader shares a report: It's surprisingly easy for someone to mess with the makeup of Earth's atmosphere, regardless of the consequences that could have for our planet. Now, as part of its plans to address security risks posed by climate change, the European Union is calling for talks on a potential international framework on how to treat deliberately atmosphere-altering technologies, AKA geoengineering.

The issue is that scientists aren't quite sure how much good that would do or whether geoengineering might inadvertently trigger new problems. That's why the European Commission says the world needs to start thinking about rules on geoengineering. Without them, climate vigilantes could decide to go ahead with their experiments without any oversight or accountability. In fact, that's already started to happen, albeit on a small scale.

EU

US Vendor Accused of Violating GDPR By Reputation-Scoring EU Citizens (theregister.com) 28

TeleSign, a U.S.-based fraud prevention company, has allegedly collected data from millions of EU citizens and processed it in the United States using automated tools without their knowledge. The complaint "alleges that TeleSign is in violation of the GDPR's provisions that ban use of automated profiling tools, as well as rules that require affirmative consent be given to process EU citizen's data," reports The Register. From the report: The complaint was filed by Austrian privacy advocacy group noyb, helmed by lawyer Max Schrems, and it doesn't pull any punches in its claims that TeleSign, through its former Belgian parent company BICS, secretly collected data on cellphone users around the world. That data, noyb alleges, was fed into an automated system that generates "reputation scores" that TeleSign sells to its customers, which includes TikTok, Salesforce, Microsoft and AWS, among others, for verifying the identity of a person behind a phone number and preventing fraud.

BICS, which acquired TeleSign in 2017, describes itself as "a global provider of international wholesale connectivity and interoperability services," in essence operating as an interchange for various national cellular networks. Per noyb, BICS operates in more than 200 countries around the world and "gets detailed information (e.g. the regularity of completed calls, call duration, long-term inactivity, range activity, or successful incoming traffic) [on] about half of the worldwide mobile phone users." That data is regularly shared with TeleSign, noyb alleges, without any notification to the customers whose data is being collected and used. "Your phone provider likely forwards data to BICS who then forwards it to TeleSign. TeleSign generates a 'trust score' about you and sells phone data to third parties like Microsoft, Salesforce or TikTok -- without anyone being informed or giving consent," Schrems said. [...]

When BICS acquired TeleSign in 2017, it began to fall under the partial control of BICS' parent company, Belgian telecom giant Proximus. Proximus held a partial stake in BICS, which Proximus spun off from its own operations in 1997. In 2021, Proximus bought out BICS' other shareholders, making it the sole owner of both the telecom interchange and TeleSign. With that in mind, noyb is also leveling charges against Proximus and BICS. In its complaint, noyb said Proximus was asked by EU citizens from various countries to provide records of the data TeleSign processed, as is their right under Article 15 of the GDPR. [...] Noyb is seeking cessation of all data transfers from BICS to TeleSign, processing of said data, and is requesting deletion of all unlawfully transmitted data. It's also asking for Belgian data protection authorities to fine Proximus, which noyb said could reach as high as $257 million -- a mere 4 percent of Proximus's global turnover.

The Internet

ISPs Say US Should Force Big Tech Firms To Pay For Broadband Construction (arstechnica.com) 144

An anonymous reader quotes a report from Ars Technica: Internet service providers in both the US and Europe are clamoring for new payments from Big Tech firms. European broadband providers are much closer to realizing the long-held goal of payments from tech companies, as the European Union government is holding an official consultation on the proposal. As the EU process unfolds, the telco lobby group USTelecom is hoping to push the US down a similar but not quite identical path. In a blog post on Friday, USTelecom CEO Jonathan Spalter argued that the biggest technology companies should contribute toward a fund that subsidizes the building of broadband networks. Spalter wrote that Amazon and similar Internet companies should fill what he called a "conspicuously empty seat at the collective table of global high-speed connectivity."

Given that "six companies account for half of all Internet traffic worldwide... Does it still make sense that the government and broadband providers alone fund this critical infrastructure? Is there no shared obligation from the primary financial beneficiaries of these networks -- the world's most powerful Internet companies?" Spalter wrote. "We need a modern reset that more equitably shares these financial obligations among those who benefit the most from these connections," he argued. USTelecom members include AT&T, Verizon, Lumen (formerly CenturyLink), Windstream, and other telcos. It's one of the biggest trade groups that lobbies for US-based Internet service providers.

[...] USTelecom pointed to the Biden administration's comments in its pitch to make Big Tech firms pay into a central fund like the existing Universal Service Fund (USF) managed by the Federal Communications Commission. "We concur with the US government's position that rather than the payments to broadband providers proposed in the EU, such 'publicly accountable funding mechanisms can better ensure that resources are devoted to key policy objectives, such as improving access and strengthening network security, while avoiding discriminatory measures that distort competition,'" Spalter wrote. The Biden administration's comments didn't call for tech companies to pay into a government-run fund, though. The document noted that the US "approach to financing improvements to broadband infrastructure involves private investments, a national Universal Service Fund, and significant public funding made from general appropriations," but didn't argue for any changes to who pays into the fund.

Businesses

Adobe's $20 Billion Figma Acquisition Likely To Face EU Investigation (gizmodo.com) 22

According to a report from The Financial Times, the European Union Commission is planning an in-depth investigation into Adobe's $20 billion purchase of Figma, the popular online graphics editing and interface design application. Gizmodo reports: Back in February, the EU Commission noted that it had received numerous requests to review the business deal. The international watchdog announced that it would need to clear the proposed merger, under the justification that it "threatens to significantly affect competition in the market for interactive product design and whiteboarding software."

Now, the Brussels-based Commission will open a phase II investigation, per the FT. Generally, anti-competition probes are handled at the phase I level, which accounts for 90% of all cases, according to EU internal data. In comparison, a phase II analysis takes more time and goes deeper. By the Commission's description, a phase II investigation "typically involves more extensive information gathering, including companies' internal documents, extensive economic data, more detailed questionnaires to market participants, and/or site visits." From the start of such a probe, the regulatory body has 90 days to make a decision.

The EU Commission would not directly confirm its plans to investigate the Adobe/Figma merger. In an email, spokesperson Marta Perez-Cejuela told Gizmodo, "this transaction has not been formally notified to the Commission." Such notification is a requirement before any investigation can move forward. Commission officials requested that Adobe submit an official notification in February. Despite the Commission's lack of formal announcement, an EU probe into the acquisition is expected. Already the U.S. Department of Justice and the United Kingdom's Competition and Markets Authority are looking into the digital design tool deal. The DOJ is reportedly preparing to file an antitrust suit blocking the merger, while the UK CMA is actively investigating the acquisition, with a first decision due by the end of June.

AI

Consumer Group Calls On EU To Urgently Investigate 'The Risks of Generative AI' (techcrunch.com) 35

An anonymous reader quotes a report from TechCrunch: European regulators are at a crossroads over how AI will be regulated -- and ultimately used commercially and non-commercially -- in the region, and today the EU's largest consumer group, the BEUC, weighed in with its own position: stop dragging your feet, and "launch urgent investigations into the risks of generative AI" now, it said. "Generative AI such as ChatGPT has opened up all kinds of possibilities for consumers, but there are serious concerns about how these systems might deceive, manipulate and harm people. They can also be used to spread disinformation, perpetuate existing biases which amplify discrimination, or be used for fraud," said Ursula Pachl, Deputy Director General of BEUC, in a statement. "We call on safety, data and consumer protection authorities to start investigations now and not wait idly for all kinds of consumer harm to have happened before they take action. These laws apply to all products and services, be they AI-powered or not and authorities must enforce them."

The BEUC, which represents consumer organizations in 13 countries in the EU, issued the call to coincide with a report out today (PDF) from one of its members, Forbrukerradet in Norway. That Norwegian report is unequivocal in its position: AI poses consumer harms (the title of the report says it all: "Ghost in the Machine: addressing the consumer harms of generative AI") and poses numerous problematic issues. It highlights, for example, how "certain AI developers including Big Tech companies" have closed off systems from external scrutiny making it difficult to see how data is collected or algorithms work; the fact that some systems produce incorrect information as blithely as they do correct results, with users often none the wiser about which it might be; AI that's built to mislead or manipulate users; the bias issue based on the information that is fed into a particular AI model; and security, specifically how AI could be weaponized to scam people or breach systems. [...]

The AI Law, when implemented, will be the world's first attempt to try to codify some kind of understanding and legal enforcement around how AI is used commercially and non-commercially. The next step in the process is for the EU to engage with individual countries in the EU to hammer out what final form the law will take -- specifically to identify what (and who) would fit into its categories, and what will not. The question will be in how readily different countries agree together. The EU wants to finalize this process by the end of this year, it said. "It is crucial that the EU makes this law as watertight as possible to protect consumers," said Pachl in her statement. "All AI systems, including generative AI, need public scrutiny, and public authorities must reassert control over them. Lawmakers must require that the output from any generative AI system is safe, fair and transparent for consumers."

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