Tag Archives: Company Legal & Law Matters

The TikTok ban law will be argued in court this September

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TikTok will face off with the Justice Department this fall in its bid to stop a law that could lead to a ban of the app in the United States. The US Court of Appeals for the District of Columbia set a September date for oral arguments in two cases challenging a law that requires ByteDance to sell the app or face a ban.

TikTok filed a lawsuit claiming that the law was unconstitutional earlier this month. The company has said that divesting from ByteDance is “simply not possible” and that it had already negotiated with the US government to address national security concerns. Separately, a group of TikTok creators are also challenging the law. They claim that the law violates their First Amendment rights because they would lose their ability to communicate on the platform. TikTok is reportedly paying the creators’ legal fees in the case.

In September, the appeals court will hear challenges in both cases, which have been consolidated. As Reuters notes, the September date lines up with TikTok’s desire for a “fast-track” schedule in the case, which could eventually end up before the Supreme Court.

This article originally appeared on Engadget at https://www.engadget.com/the-tiktok-ban-law-will-be-argued-in-court-this-september-185025724.html?src=rss

Meta and Activision face lawsuit by families of Uvalde school shooting victims

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The families of the shooting victims at Robb Elementary School in Uvalde, Texas have sued Call of Duty publisher Activision and Meta. They alleged that the companies "knowingly exposed the shooter to the weapon [he used], conditioned him to see it as the solution to his problems, and trained him to use it." The plaintiffs also accused the companies of "chewing up alienated teenage boys and spitting out mass shooters." 

In the lawsuit, the plaintiffs explained that the Uvalde shooter played Call of Duty, which featured an assault-style rifle made by gunmaker Daniel Defense. They also mentioned that he frequently visited Instagram, which advertised the gunmaker's products. The lawsuit claimed, as well, that Instagram gives gunmakers "an unsupervised channel to speak directly to minors, in their homes, at school, even in the middle of the night." It argued that the shooter was "a poor and isolated teenager" from small town Texas who only learned about AR-15s and set his sights on it, because he was exposed to the weapon from playing Call of Duty and visiting Instagram. In addition, it accused Meta of being more lenient towards firearms sellers than other users who break its rules. Meta prohibits the buying the selling of weapons and ammunition, but users can violate the policy 10 times before they're banned from its platforms. 

"The truth is that the gun industry and Daniel Defense didn’t act alone. They couldn’t have reached this kid but for Instagram," the plaintiffs' lawyer, Attorney Josh Koskoff, said at a news conference. "They couldn’t expose him to the dopamine loop of virtually killing a person. That's what Call of Duty does." Koskoff's law firm was the same one who reached a $73 million settlement with rifle manufacturer Remington for the families of the Sandy Hook Elementary School shooting victims. 

An Activision spokesperson told The Washington Post and Bloomberg Law that the "Uvalde shooting was horrendous and heartbreaking in every way," and that the company expresses its deepest sympathies to the families, but "millions of people around the world enjoy video games without turning to horrific acts."

This article originally appeared on Engadget at https://www.engadget.com/meta-and-activision-face-lawsuit-by-families-of-uvalde-school-shooting-victims-130025901.html?src=rss

Apple is battling a $2 billion EU fine over App Store practices

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Apple has formally challenged a €1.8 billion ($1.95 billion) antitrust fine issued by the European Union, according to a report. The bloc handed down the penalty in March after determining that Apple had constrained competing music streaming services on the App Store following a 2019 complaint from Spotify.

At the time, Apple pledged to appeal the decision, arguing that the EU failed to "uncover any credible evidence of consumer harm." Bloomberg reports that Apple has now filed a suit in an attempt to overturn the ruling.

Along with the fine, the EU instructed Apple to stop blocking rival music-streaming platforms from telling users that they could sign up for their services at a lower cost away from the App Store. Spotify claimed it had to increase subscription prices to cover costs related to how Apple runs the App Store. That's despite Spotify not making it possible to upgrade to Premium directly through its iOS app — doing so would mean having to fork over a commission to Apple. For its part, Apple maintains that Spotify doesn't pay it anything, even though the latter taps into its APIs, beta testing tools and more.

Spotify's complaint predated the Digital Markets Act coming into force. That law stops defined gatekeepers — including Apple and Play Store operator Google — banning developers from telling users about cheaper ways to pay for their products outside of their app marketplaces. The EU is currently investigating both companies over their compliance with that aspect of the law.

This article originally appeared on Engadget at https://www.engadget.com/apple-is-battling-a-2-billion-eu-fine-over-app-store-practices-160032104.html?src=rss

A group of TikTok creators are also suing the US government to stop a ban of the app

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A group of TikTok creators have joined the legal fight to keep the app from being banned in the United States. Eight creators have sued the US government in an effort to block a law requiring TikTok's parent company ByteDance to sell the service. 

The lawsuit claims that the “Protecting Americans from Foreign Adversary Controlled Applications Act” is unconstitutional because it violates the First Amendment rights of the creators who depend on the platform. “They have found their voices, amassed significant audiences, made new friends, and encountered new and different ways of thinking—all because of TikTok’s novel way of hosting, curating, and disseminating speech,” it states. “The Act’s ban of TikTok threatens to deprive them, and the rest of the country, of this distinctive means of expression and communication.”

The lawsuit comes one week after TikTok filed its own lawsuit against the government. According to The Washington Post, the company is “covering” the legal fees for the creators participating in the latest suit. It’s also strategy that has worked for the company in the past. A group of Montana-based TikTok creators sued the state over an attempted statewide ban last year. That effort was ultimately successful and the ban never went into effect. The Montana creators were represented by the same law firm currently repping the eight creators involved in the latest suit.

This article originally appeared on Engadget at https://www.engadget.com/a-group-of-tiktok-creators-are-also-suing-the-us-government-to-stop-a-ban-of-the-app-181524472.html?src=rss

A group of TikTok creators are also suing the US government to stop a ban of the app

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A group of TikTok creators have joined the legal fight to keep the app from being banned in the United States. Eight creators have sued the US government in an effort to block a law requiring TikTok's parent company ByteDance to sell the service. 

The lawsuit claims that the “Protecting Americans from Foreign Adversary Controlled Applications Act” is unconstitutional because it violates the First Amendment rights of the creators who depend on the platform. “They have found their voices, amassed significant audiences, made new friends, and encountered new and different ways of thinking—all because of TikTok’s novel way of hosting, curating, and disseminating speech,” it states. “The Act’s ban of TikTok threatens to deprive them, and the rest of the country, of this distinctive means of expression and communication.”

The lawsuit comes one week after TikTok filed its own lawsuit against the government. According to The Washington Post, the company is “covering” the legal fees for the creators participating in the latest suit. It’s also strategy that has worked for the company in the past. A group of Montana-based TikTok creators sued the state over an attempted statewide ban last year. That effort was ultimately successful and the ban never went into effect. The Montana creators were represented by the same law firm currently repping the eight creators involved in the latest suit.

This article originally appeared on Engadget at https://www.engadget.com/a-group-of-tiktok-creators-are-also-suing-the-us-government-to-stop-a-ban-of-the-app-181524472.html?src=rss

Most App Store developers aren’t taking Apple up on its new outside payments option

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It seems Apple’s recently added option for App Store developers to include links to external payment methods isn’t actually all that appealing. In a hearing on Friday as part of the ongoing legal battle with Epic, Apple said only 38 developers have applied to add such links — out of roughly 65,000 that could, according to Bloomberg. The new guidelines, introduced in January, require developers get Apple’s approval before they can add alternative payment options and stipulate that they’ll still have to pay a commission fee of up to 27 percent.

The changes were intended to satisfy an injunction ordered by U.S. District Judge Yvonne Gonzalez Rogers in 2021, but, per Reuters, Epic in March called Apple’s attempt at compliance “a sham” and filed a complaint with the court. At this point, Rogers doesn’t really seem impressed either. “It sounds to me as if the goal was to then maintain the business model and revenue you had in the past,” Rogers said of Apple's solution during the latest hearing, according to Bloomberg.

On top of Apple’s commission, developers also need to consider payment processing fees, which altogether could lead to them paying even more than they did before. “You’re telling me a thousand people were involved [in approving the new fee] and not one of them said maybe we should consider the cost [to developers]?” the judge reportedly said.

This article originally appeared on Engadget at https://www.engadget.com/most-app-store-developers-arent-taking-apple-up-on-its-new-outside-payments-option-210802382.html?src=rss

FTX plans to refund defrauded customers with interest

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FTX has filed a plan with a bankruptcy court to pay back creditors who held cryptocurrency at the embattled exchange. The vast majority of customers are set to get their money back with interest, though they (and the debtors) missed out on major gains in the crypto market since FTX’s dramatic collapse in November 2022 — the price of Bitcoin has more than tripled since then.

FTX aims to fully pay back non-governmental creditors based on the value of their claims as determined by the bankruptcy court. That means 98 percent of creditors (those who have up to $50,000 in claims) will get 118 percent of the amount of their allowed claims. Other creditors will get their money back, plus what FTX describes as billions of dollars in compensation “for the time value of their investments.”

Government creditors are in line for payouts with a nine percent interest rate. The Internal Revenue Service and Department of Justice are among the stakeholders with which FTX has agreed settlements.

The company suggests that, if its plan of reorganization is rubber stamped, it would be able to resolve disputes with private and government stakeholders “without costly and protracted litigation.” All told, FTX says that it will be able to distribute between $14.5 billion and $16.3 billion in cash.

But, you may be wondering, where exactly is all this money coming from? After all, when FTX filed for Chapter 11 bankruptcy protection 17 months ago, it held just 0.1 percent of the Bitcoin and 1.2 percent of the Ethereum that its customers thought it had.

FTX said it was able to monetize “an extraordinarily diverse collection of assets, most of which were proprietary investments held by the Alamedaor FTX Ventures businesses, or litigation claims.” As TechCrunch reports, the assets that FTX CEO John J. Ray III and his team tracked down included around $8 billion in real estate, political donations and venture capital investments.

The company filed the updated plan of reorganization just a few weeks after co-founder and former CEO Sam Bankman-Fried (aka SBF) was sentenced to 25 years in prison. He was found guilty in November of charges including wire fraud and conspiracy to commit money laundering.

This article originally appeared on Engadget at https://www.engadget.com/ftx-plans-to-refund-defrauded-customers-with-interest-143555536.html?src=rss

TikTok is suing the US government to stop its app being banned

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TikTok is officially challenging the law that could lead to a ban of the app in the United States. The company, which has long claimed that efforts to force a sale or ban of its app are unconstitutional, announced a lawsuit against the federal government.

In the lawsuit, TikTok claims that a divestiture of its business from ByteDance is “simply not possible,” and that the “Protecting Americans from Foreign Adversary Controlled Applications Act” violates the First Amendment. “They claim that the Act is not a ban because it offers ByteDance a choice: divest TikTok’s U.S. business or be shut down,” the suit states. “But in reality, there is no choice. The ‘qualified divestiture’ demanded by the Act to allow TikTok to continue operating in the United States is simply not possible: not commercially, not technologically, not legally.”

The filing of the lawsuit is the first beat in what’s expected to be a lengthy legal battle over the law, which was passed last month. Under the law, TikTok has up to a year to separate itself from Chinese parent company ByteDance or face a ban in US app stores. However, legal challenges from TikTok could significantly delay that process.

Free speech and digital rights groups have also opposed the law, saying that it could set a precedent for further bans. In its lawsuit, TikTok made a similar argument, and said that the alleged national security risks posed by its app are unproven. “If Congress can do this, it can circumvent the First Amendment by invoking national security and ordering the publisher of any individual newspaper or website to sell to avoid being shut down,” it says. “The Act does not articulate any threat posed by TikTok … Even the statements by individual Members of Congress and a congressional committee report merely indicate concern about the hypothetical possibility that TikTok could be misused in the future, without citing specific evidence.”

The filing also references Project Texas, the company’s multibillion-dollar investment into separating US user data and other security measures, as the result of negotiations with the Committee on Foreign Investment in the United States (CFIUS). Those negotiations eventually stalled and CFIUS told the company last year it wanted TikTok to divest from ByteDance after all.

TikTok says that, as part of those talks, it had already agreed to a “shut-down option,” which would “give the government the authority to suspend TikTok in the United States” if the company violated the terms of its agreement. Instead, TikTok says, Congress “tossed this tailored agreement aside” because it was “politically expedient."

This article originally appeared on Engadget at https://www.engadget.com/tiktok-is-suing-the-us-government-to-stop-its-app-being-banned-163132752.html?src=rss

Google says Epic’s Play Store demands are too much and too self-serving

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Epic Games won its antitrust lawsuit against Google in December when a federal jury found that the latter violated US antitrust laws with regards to how it runs the Play Store. A few months later, the gaming developer submitted its list of demands, which if implemented will blow the Play Store wide open. Now, Google has filed an injunction telling the court that no, it will not give Epic what it wants without a fight, because the company's asks "stray far beyond the trial record." 

The remedies Epic had submitted would require the court not just to create a global regulatory regime to set prices for apps, Google wrote in the filing as seen by Engadget, but also to micromanage "a highly complex and dynamic ecosystem" used by billions of consumers and app developers around the world. If you'll recall, Epic wants Google to open up Android to third-party app stores and to make its catalog of apps available to those stores. It also wants restrictions on pre-installed apps to be outlawed and to prohibit any Google activity that incentivizes third-parties. 

Google said that bowing down to all those demands would "effectively prevent [it] from competing," which in turn would negatively affect Android users and developers. Epic's proposals only benefit Epic, Google said in its filing, and will harm other developers by depriving them of control over where their app is distributed. Manufacturers will no longer be able to take advantage of the partnerships Google typically offers, while users have to deal with additional security and privacy risks. 

The company also slammed Epic over the "vagueness" of its proposed injunction, which would require the repeated and ongoing intervention of the courts. Similarly, Epic's demands would apparently require the court to micromanage Google's business. 

"Epic’s demands would harm the privacy, security, and overall experience of consumers, developers, and device manufacturers," Wilson White, Google's Vice President of Government Affairs & Public Policy, told Engadget in a statement. "Not only does their proposal go far beyond the scope of the recent US trial verdict — which we will be challenging — it’s also unnecessary due to the settlement we reached last year with State Attorneys General from every state and multiple territories. We will continue to vigorously defend our right to a sustainable business model that enables us to keep people safe, partner with developers to innovate and grow their businesses, and maintain a thriving Android ecosystem for everyone."

Google said that if Epic truly wants to promote competition rather than create "an unfair, court- supervised advantage for itself," then it would take cues from its settlement with the state officials that previously accused the company of abusing its dominance on Android app distribution. Epic Games CEO Tim Sweeney was, unsurprisingly, unhappy with that settlement, tweeting at the time: "If Google is ending its payments monopoly without imposing a Google Tax on third party transactions, we'll settle and be Google's friend in their new era. But if the settlement merely pays off the other plaintiffs while leaving the Google Tax in place, we'll fight on. Consumers only benefit if antitrust enforcement not only opens up markets, but also restores price competition."

This article originally appeared on Engadget at https://www.engadget.com/google-says-epics-play-store-demands-are-too-much-and-too-self-serving-123023699.html?src=rss

A researcher is suing Meta for the right to ‘turn off’ Facebook’s news feed

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Facebook’s News Feed algorithm has long been at the center of debates about some of Meta’s biggest problems. It’s also been a near constant source of complaints from users. But, if a newly filed lawsuit is successful, Facebook users may be able to use the social network with a vastly different feed. The Knight First Amendment Institute at Columbia University is suing Meta on behalf of a researcher who wants to release a browser extension that would allow people to “effectively turn off” their algorithmic feeds.

The extension was created by Ethan Zuckerman, a researcher and professor at the University of Massachusetts Amherst. He argues that Facebook users would be better off with more control over their feeds. “The tool, called Unfollow Everything 2.0, would allow users to unfollow their friends, groups, and pages, and, in doing so, to effectively turn off their newsfeed—the endless scroll of posts that users see when they log into Facebook,” the lawsuit explains. “Users who download the tool would be free to use the platform without the feed, or to curate the feed by refollowing only those friends and groups whose posts they really want to see.” (Meta officially renamed the News Feed to “Feed” in 2022.)

Zuckerman isn’t the first to come up with such a tool. He was inspired by a similar project, also called “Unfollow Everything,” from 2021. Facebook sued the U.K man who created that extension and permanently disabled his account. Zuckerman is trying to avoid a similar fate with his lawsuit. The suit, filed in San Francisco federal court Wednesday, asks the court “to recognize that Section 230 protects the development of tools designed to empower people to better control their social media experiences.”

The case could be a novel test of Section 230 of the 1996 Communications Decency Act, which is mostly known as the law that shields online platforms from legal liability for the actions of their users. But unlike recent Supreme Court cases involving the statute, Zuckerman’s case “relies on a separate provision protecting the developers of third-party tools that allow people to curate what they see online, including by blocking content they consider objectionable.”

A spokesperson for Meta declined to comment on the lawsuit. The company has a history of heavy-handed tactics when it comes to independent researchers. In addition to shutting down the earlier version “Unfollow Everything,” the company disabled the Facebook accounts of a group of NYU researchers attempting to study political ad targeting in 2021. Those types of tactics have led to some researchers pursuing “data donation” programs, which recruit volunteers to “donate” their own browsing data for academic studies.

If released, Zuckerman’s browser extension would also have a data donation component, allowing users to opt-in to sharing “anonymized data about their Facebook usage.” The data would then be used for research into the effects of Facebook’s feed algorithm.

This article originally appeared on Engadget at https://www.engadget.com/a-researcher-is-suing-meta-for-the-right-to-turn-off-facebooks-news-feed-210344993.html?src=rss