Tag Archives: Business

DoJ agrees to settle with RealPage in rent collusion software case

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Last year, the Department of Justice filed an antitrust suit against software company RealPage, accusing it of manipulating the rental housing market and driving up prices. Now, the DoJ has announced a proposed settlement that would put limits on RealPage's ability to collect and use sensitive information gathered from landlords. Under the terms, though, RealPage would pay no damages and admit to no wrongdoing. 

Texas-based RealPage’s software is said to manage over 24 million rental units globally. The DOJ’s original complaint accused the company of working with landlords who agree to share “nonpublic, competitively sensitive information” about rental rates and other lease terms. RealPage then uses that data to train algorithms for its YieldStar software, which generate pricing and other recommendations “based on their and their rivals’ competitively sensitive information,” according to the DOJ.

If approved by the court, the settlement would require RealPage to only used landlord data that's 12 months or older in its algorithm. RealPage would also need to "remove or redesign" features that discourage landlords from lowering prices or prompt them to match competitors' prices. Its software would not be allowed to offer "hyperlocalized pricing" information that can manipulate rents "block-by-block," according to the DoJ's assist attorney general, Abigail Slater. 

"Competing companies must make independent pricing decisions, and with the rise of algorithmic and artificial intelligence tools, we will remain at the forefront of vigorous antitrust enforcement," Slater said in a statement. 

However, as the dedicated real estate site Propmodo put it, the "outcome looks much closer to a reset than a punishment," adding that the government will likely focus enforcement on tools that steer collective behavior. "Algorithms will continue to shape pricing strategies, but with clearer boundaries." 

This article originally appeared on Engadget at https://www.engadget.com/apps/doj-agrees-to-settle-with-realpage-in-rent-collusion-software-case-130002364.html?src=rss

Meta allegedly buried research showing its products are harming users

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Meta allegedly suspended internal research into the mental health effects of its products after it showed that people who stopped using Facebook experienced less depression, anxiety and loneliness. This comes from unredacted court filings in a lawsuit filed by multiple US school districts against major social media companies, as reported by Reuters. The suit alleges that these companies had knowledge of the health risks posed by these platforms but intentionally hid this from users.

Meta started the research project, dubbed "Project Mercury," in 2020. The company's scientists worked with survey firm Nielsen to investigate what effect, if any, "deactivating" Facebook had on its users. The suit alleges that when this research showed mental health benefits to quitting Facebook, Meta shut down the project, chose not to publish the results and decreed the findings tainted by “existing media narrative” surrounding the company.

According to Reuters, the filings also showed internal research staffers clearly expressing that the findings had merit, writing “the Nielsen study does show causal impact on social comparison.” Another compared the findings to the tobacco industry “doing research and knowing cigs were bad and then keeping that info to themselves.” The allegations call to mind the now well-known decisions by Shell and Exxon to bury internal research connecting fossil fuels with catastrophic climate change as far back as the 1980s.

In a statement obtained by Reuters, a Meta spokesperson said, “the full record will show that for over a decade, we have listened to parents, researched issues that matter most, and made real changes to protect teens." The statement touted the company's Instagram Teen Accounts and said, "We strongly disagree with these allegations, which rely on cherry-picked quotes and misinformed opinions.”

Meta is arguing to strike the documents underlying these allegations, which are not yet public, claiming the nature of what plaintiffs want to unseal is overly broad. These lawsuits, filed by hundreds of school districts, are being consolidated and handled in the Northern District of California, with a hearing regarding this particular filing set for January 26.  

This isn't even the first time the company has been accused of burying research that yielded inconvenient results. In 2023 Meta also faced a massive lawsuit from 41 states as well as the District of Columbia over allegations that its platforms harm and addict young users. A judge in that case ruled that Meta's lawyers tried blocking internal research showing its social media platforms were harmful to teen mental health.

There is growing concern surrounding the effects of social media on mental health, particularly for children. Today Malaysia joined a growing list of countries including Denmark and Australia in a plan to ban social media for underage users.

This article originally appeared on Engadget at https://www.engadget.com/social-media/meta-allegedly-buried-research-showing-its-products-are-harming-users-152236073.html?src=rss

A decision about breaking up Google’s adtech monopoly is on the horizon

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Google made its final arguments in a longstanding case against the US Department of Justice on whether it has to split up its ad tech practices. However, the judge presiding over the case may be looking to wrap up the case before Google has a chance to appeal, according to a report from Reuters. 

On Friday, both sides made their closing statements in the lawsuit where the Justice Department accused the tech giant of illegally monopolizing the ad tech market. While the US District Court Judge Leonie Brinkema ruled in April that Google held a monopoly in the online adtech space, the judge recently asked the Justice Department how quickly an anticompetitive measure could go into effect, adding that "time is of the essence."

Google's attorney, Karen Dunn, argued that forcing Google to sell its advertising tech subsidiary would be extreme and hurt customers in the process, according to the report. Google is also reportedly planning to appeal the latest decision. According to Reuters, Brinkema noted that any sort of remedy "most likely would not be as easily enforceable while an appeal is pending," meaning that Google could delay the forced sale until the appeal is concluded. At the same time, Google is facing a $3.5 billion fine for violating the European Union's antitrust laws within the adtech industry.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/a-decision-about-breaking-up-googles-adtech-monopoly-is-on-the-horizon-184409011.html?src=rss

Microsoft isn’t releasing a diversity report for 2025

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Microsoft will not release a diversity and inclusion report for 2025 like it has been doing every year since 2019, Stephen Totilo from Game File has reported. Totilo asked the company if it was skipping this year after it failed to publish a report from October to early November like it had done so the previous years. “We are not doing a traditional report this year as we’ve evolved beyond that to formats that are more dynamic and accessible — stories, videos, and insights that show inclusion in action,” said Microsoft’s chief communications officer, Frank Shaw, in a statement. “Our mission and commitment to our culture and values remain unchanged: empowering every person and organization to achieve more.”

As Totilo notes, the Trump administration made it very clear early on that it was against government and corporate diversity, equality and inclusion programs. Trump signed executive orders directing government agencies to roll back DEI initiatives and encouraged the private sector to do the same. Meta reportedly ended its DEI programs earlier this year, while Google reportedly announced that it will “no longer set hiring targets to improve representation in its workforce.”

Totilo previously reported that Microsoft didn’t mention anything about its diversity programs in two shareholder reports for 2025, signifying that the company wasn’t highlighting its DEI initiatives anymore like it did the previous years. Based on its statement, Microsoft isn’t completely dropping its DEI efforts. Without a report, however, we can’t keep an eye on its progress when it comes to things like pay equality and workforce diversity.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/microsoft-isnt-releasing-a-diversity-report-for-2025-180000401.html?src=rss

Meta ordered to pay €479 million to Spanish media outlets

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Stop me if you've heard this one before: Meta has been fined for unlawfully processing user data to gain a market advantage. On Thursday, Reuters reported that a Madrid court ordered the company to pay €479 million ($552 million) in damages to 87 Spanish media outlets. The fine stems from the company changing its legal grounds for harvesting personal data after new regulations took effect.

The court found that Meta's data collection practices violated the EU's General Data Protection Regulation (GDPR) — and, by extension, Spanish antitrust law. After the GDPR took effect in 2018, the company changed its legal grounds for collecting data on Facebook and Instagram from user consent to "necessity for the performance of a contract."

Regulators later ruled against that justification, and Meta reverted to user consent as its basis in 2023. But Spanish digital media outlets sued for damages, leading to today's fine. The court ruled that Meta gained a "significant competitive advantage" by processing user data that way. The court calculated the penalty as a percentage of the company's ad revenue over the five years it used the unlawful rationale.

"The illicit treatment of this enormous quantity of personal data meant Meta had an advantage that Spanish online media could not match," the Madrid court wrote in a statement (via The Associated Press). "Meta's actions harmed the online advertising revenues of Spanish digital media outlets."

Meta contested the penalty and says it will appeal. "This is a baseless claim that lacks any evidence of alleged harm and wilfully ignores how the online advertising industry works," the company wrote in a statement to Reuters. "Meta complies with all applicable laws and has provided clear choices, transparent information and given users a range of tools to control their experience on our services."

This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-ordered-to-pay-%E2%82%AC479-million-to-spanish-media-outlets-201000460.html?src=rss

Verizon confirms plans to lay off 13,000 employees

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Verizon is set to lay off more than 13,000 employees and every part of the company will be going through some changes, CEO Dan Schulman has confirmed. The company is reducing its headcount and cutting back on outsourcing and other external labor expenses in service of "building a stronger Verizon," Schulman wrote in a memo to staff. The company will also convert 179 retail stores that it owns into franchised outlets and it will close one store.

In September, Verizon said it had around 100,000 full-time employees, so the layoffs constitute about 13 percent of the workforce. Over the previous three years, Verizon had cut about 20,000 jobs. Meanwhile, a $20 billion takeover of telecoms company Frontier Communications is set to close early next year.

It was reported last week that Verizon was set to cull around 15,000 jobs as part of a cost-cutting drive in the face of sterner competition and a drop in postpaid wireless customers. Schulman — a former PayPal CEO who took on his current job in October — indicated during an earnings call last month that the company would “take bold and fiscally responsible action to redefine Verizon's trajectory at this critical inflection point for our company. These will not be incremental changes."

In Thursday’s memo, Schulman framed the downsizing as an attempt to create a leaner, more customer-focused operation. “As a customer-first culture, we have to align our teams and resources to create new value for customers and build a faster, stronger and more proactive Verizon,” Schulman wrote. “To do that, we must simplify our operations to address the complexity and friction that slow us down and frustrate our customers.”

Verizon says it has set up a $20 million reskilling and career transition fund to support the workers it’s turfing out. “This fund will focus on skill development, digital training and job placement to help our people take their next steps,” Schulman claimed. “Verizon is the first company to set up a fund to specifically focus on the opportunities and necessary skill sets as we enter the age of AI.”

This article originally appeared on Engadget at https://www.engadget.com/big-tech/verizon-confirms-plans-to-lay-off-13000-employees-144608021.html?src=rss

Waymo is coming to five more cities

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Waymo is launching in five new cities across Texas and Florida. Autonomous vehicles in Miami, Dallas, Houston, San Antonio, and Orlando will begin accepting rides next year.

The Alphabet-owned company said operations (sans passengers) will begin on Tuesday in Miami. The other cities will follow "over the coming weeks." This phase is where the vehicles drive around town without anyone inside. That gives the company a chance to spot local quirks and adjust the driving algorithm accordingly.

Waymo said this local adjustment phase requires fewer changes with each added city. "This data feeds into a flywheel of continuous improvement, bolstered by rigorous validation through real-world driving and advanced simulation, then implemented through regular software releases," it wrote. The company claims its robotaxis are involved in 11 times fewer serious injury accidents than human drivers.

Waymo's autonomous vehicles currently accept passengers in the San Francisco Bay Area, Los Angeles, Phoenix, Atlanta and Austin. The list of "up next" cities is much longer, including a recently announced expansion into San Diego, Detroit and Las Vegas.

This article originally appeared on Engadget at https://www.engadget.com/transportation/waymo-is-coming-to-five-more-cities-190000992.html?src=rss

Meta has won the antitrust case that could have forced it to spin off Instagram and WhatsApp

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Meta has successfully avoided what was once the biggest existential threats to its company. A federal judge has sided with the social media company in a landmark antitrust case, ruling on Tuesday that the Federal Trade Commission (FTC) had not proven that Meta is a monopoly.

The FTC filed antitrust charges against Meta, then known as Facebook, in 2020 during President Donald Trump's first term. The government had argued that by acquiring its one-time rivals, Instagram and WhatsApp, the company had hurt US consumers by stifling competition in the social media industry. Meta had argued that those services were only able to grow to the 1 billion-user apps because of its investment and had cited the rise of TikTok as proof that it continues to face strong competition.

On Tuesday, US District judge James Boasberg ruled in favor of Meta. "Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now," he wrote. "The Court’s verdict today determines that the FTC has not done so."

If the FTC had succeeded, it could have called for Meta to unwind its acquisitions of WhatsApp and Instagram. "We are deeply disappointed in this decision,” the FTC’s director of public affairs Joe Simonson said in a statement. “The deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment. We are reviewing all our options." The FTC could still appeal the ruling, though it’s not clear if it plans to do so.

"The Court's decision today recognizes that Meta faces fierce competition,” a Meta spokesperson said in a statement. “Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America."

A number of current and former high-profile executives, including Adam Mosseri, Sheryl Sandberg, Kevin Systrom and Mark Zuckerberg testified during the weeks-long trial earlier this year. In his testimony, Zuckerberg spoke about the immense pressure Meta felt from TikTok, saying that Meta's growth had "slowed down dramatically" as TikTok became more popular. 

It turns out that Meta's defense that TikTok and YouTube are major competitors to it helped sway Judge Boasberg. While the FTC's lawyers had tried to claim that Meta had a monopoly on "personal social networking" apps — a narrow group it said included Snapchat and the decentralized app MeWe — Boasberg was unable to ignore the dominance of TikTok and YouTube.

"PSN [personal social networking] apps may have been a market unto themselves when the FTC filed this case in 2020 or when it approved Facebook’s acquisitions of Instagram and WhatsApp in 2012 and 2014," he wrote. "That is no longer the case. The Court ultimately finds that YouTube and TikTok belong in the product market, and they prevent Meta from holding a monopoly.  Even if YouTube is out, including TikTok alone defeats the FTC’s case."

Update, November 18, 20225, 12:08PM PT: Added a statement from the FTC.

This article originally appeared on Engadget at https://www.engadget.com/social-media/meta-has-won-the-antitrust-case-that-could-have-forced-it-to-spin-off-instagram-and-whatsapp-184320742.html?src=rss

Tesla wins bid to decertify class action lawsuit alleging racial discrimination

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Tesla has secured a ruling to strip a 2017 lawsuit claiming a racist work environment of its class-action status, as reported by Reuters. California Superior Court Judge Peter Borkon, appointed by Gov. Gavin Newsom in 2021, ruled that the lawsuit could not proceed with class-action status because the plaintiffs' attorneys had failed to find 200 class members willing to testify. The judge said he could not assume that the experiences of a select group of workers could be applied to the entire class of would-be plaintiffs.

The 2017 lawsuit began with a single employee who filed suit alleging Tesla's Fremont production floor was a "hotbed for racist behavior," and that over 100 employees had experienced racial harassment.

In 2024, a lower court judge ruled the case could move forward as a class action, a decision that Tesla had been appealing since. A trial in the case was scheduled to begin in April, though now that the case has lost its class-action status, each plaintiff would have to bring their case against Tesla separately.

This is not the first time that Tesla has found itself in court over alleged racial misconduct. In 2023, the automaker was sued by the US Equal Employment Opportunity Commission over allegations that Black employees were subjected to racial slurs and retaliation.

Last year, Tesla reached a confidential settlement with a single employee who said he faced discrimination at the same California plant, reporting that his coworkers left drawings of swastikas and racist figures on his workspace.

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/tesla-wins-bid-to-decertify-class-action-lawsuit-alleging-racial-discrimination-191256294.html?src=rss

Jeff Bezos will head a new engineering-focused AI startup called Project Prometheus

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Jeff Bezos is spearheading a new AI started called Project Prometheus, focused on his current interests in space and engineering, The New York Times reports. The company, which has yet to be made public, will reportedly have $6.2 billion in funding. Part of that sum will come from Bezos, who will act as co-CEO. 

Project Prometheus will reportedly focus on creating AI systems that gain knowledge from the physical world, rather than just processing digital information, like AI chatbots. In particular, the company will reportedly explore how AI can support engineering and manufacturing in areas such as vehicles and space technology. Bezos founded space technology company Blue Origin more than two decades ago. The company's New Glenn rocket had a successful second flight last week. 

He is joined by Vik Bajaj as co-founder and co-CEO. Bajaj is a physicist and chemist who worked on projects at Google X including Wing and what became Waymo. In 2018, he co-founded Foresite Labs, which supports entrepreneurs in the fields of AI and data science. Bajaj is still named as CEO of Foresite Labs on the company's website and his LinkedIn page — the latter of which also shows his new titles at Project Prometheus. Bajaj lists his involvement in the new company as starting this month and puts San Francisco, London and Zurich as its locations. 

On its bare LinkedIn page, Project Prometheus' overview states only "AI for the physical economy." It also lists itself as a "Technology, Information and Internet" company with 51-200 employees. According to The New York Times, Project Prometheus has hired nearly 100 people, with some employees coming from fellow AI companies like OpenAI and DeepMind. 

This article originally appeared on Engadget at https://www.engadget.com/ai/jeff-bezos-will-head-a-new-engineering-focused-ai-startup-called-project-prometheus-122115977.html?src=rss