Tag Archives: Business

NLRB finds that eBay and subsidiary TCGPlayer engaged in union-busting practices

Posted on by

The National Labor Relations Board (NLRB) has found that eBay has violated the rights of unionized workers at TCGPlayer, a trading card marketplace owned by the company. This comes in response to charges filed by the Communications Workers of America back in March of this year. eBay has allegedly refused to recognize TCGPlayer’s worker union and it delayed participating in any bargaining practices and it has also refused to divulge any information with the group that the union is legally entitled to.

As part of its examination of the issue, the NLRB said that because eBay and TCGPlayer broke the law, the company must face legal consequences for its union-busting practices. The union, which officially formed in March following numerous anti-union actions from eBay and TCGPlayer, was denied representation during disciplinary investigations. The NLRB also found that eBay was changing working conditions and benefits without engaging in bargaining with the group. On top of that, eBay is said to have even enforced rules that would punish any workers’ elections to unionize.

While the NLRB lays out evidence of eBay’s union-busting practices, it did not officially issue a decision on the matter. The agency is still waiting on the company’s response to the issue. “Now that the board has come to a decision on eBay’s illegal practices, we hope the company will see the light, obey labor law and engage in good faith bargaining practices so that workers can secure a strong union contract,” Dennis Trainor, Communications Workers of America District 1 Vice-President, said in a statement. eBay could not be reached for comment.

This article originally appeared on Engadget at https://www.engadget.com/nlrb-finds-that-ebay-and-subsidiary-tcgplayer-engaged-in-union-busting-practices-205337429.html?src=rss

Adobe terminates its $20 billion Figma acquisition amid regulatory scrutiny

Posted on by

Adobe is abandoning its planned $20 billion acquisition of Figma after the companies determined that there was no clear path to obtaining approval from UK and European Union regulators. The two sides have signed an agreement that fully resolves all aspects of the Adobe-Figma merger termination. Adobe will pay the collaborative design platform a previously agreed $1 billion termination fee after failing to overcome regulatory hurdles.

In November, the UK's Competition and Markets Authority (CMA) and the European Commission both cited concerns over the proposed acquisition's impact on competition. The CMA said in its provisional findings that that the merger would “eliminate competition between two main competitors.” The watchdog said it was considering either blocking the deal or requiring Adobe to sell Figma's core product, Figma Design, along with Adobe XD.

Earlier on Monday, Adobe claimed that it wouldn't offer the CMA any potential remedies. “It is clear that no realistic remedy would satisfy the concerns the CMA is maintaining,” an Adobe spokesperson told Bloomberg. “We believe that the best path forward is to continue our ongoing engagement with the CMA on the merits.”

Last month, the EC sent Adobe a Statement of Objections, in which it warned the company that its planned purchase of Figma "may reduce competition in the global markets for the supply of interactive product design software and of other creative design software," such as vector editing tools (i.e. Illustrator and its ilk) and Photoshop-style raster editing tools. The EC planned to make a final decision on the merger by February 5. Adobe had indicated it was willing to offer possible remedies to appease European regulators, but it appears that's no longer the case.

“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” Shantanu Narayen, Adobe chair and CEO, said in a statement. “While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalize on our massive market opportunity and mission to change the world through personalized digital experiences.”

Adobe also anticipated a potential lawsuit from the US Department of Justice in an attempt to block the deal Stateside. The company and Figma reportedly met with DOJ officials last week to try and secure approval for their merger. 

This article originally appeared on Engadget at https://www.engadget.com/adobe-walks-away-from-its-20-billion-figma-acquisition-amid-regulatory-scrutiny-132203336.html?src=rss

Apple, Visa and Mastercard sued in proposed class action antitrust case over Apple Pay card fees

Posted on by

A proposed class action lawsuit has accused Apple of accepting a form of bribe from Visa and Mastercard to ensure their dominance over point-of-sale payment card services for Apple Pay transactions, according to Reuters. As a result, the lawsuit says merchants have been forced to pay higher fees.

The companies are being sued by beverage retailer Mirage Wine & Spirits in Illinois on behalf of “all merchants in the United States that accepted Apple Pay as a method of payment at the physical point-of-sale.” According to the complaint, Apple made an agreement with Visa and Mastercard that did away with any incentive for it to develop its own competing point-of-sale transaction payment network or allow other companies to make use of iPhone’s “tap to pay” NFC functionality with third-party wallet apps. On the iPhone, Apple’s own wallet app is the only option. All of this has led to inflated merchant fees, the suit argues.

“In exchange for agreeing not to compete with Visa and Mastercard in the Relevant Market, the two card networks offered Apple a very large and ongoing cash bribe,” the lawsuit states. This bribe came as a percentage of the two companies’ transaction fees for credit and debit card payments made with Apple Pay. “Even as Apple Pay was in its infancy, the Entrenched Networks and Apple understood that this bribe would amount to hundreds of millions of dollars per year.”

Apple has been accused of anti-competitive behavior with Apple Pay in the past for how it blocks third-party access to its contactless payment technology. But earlier this week, Reuters reported that Apple may open up NFC access in the EU to avoid a fine in a case that has been ongoing since 2020.

This article originally appeared on Engadget at https://www.engadget.com/apple-visa-and-mastercard-sued-in-proposed-class-action-antitrust-case-over-apple-pay-card-fees-203445696.html?src=rss

Activision Blizzard will pay $54 million to settle California’s gender discrimination lawsuit

Posted on by

California's Civil Rights Department (CRD) has announced that it has reached a settlement agreement with Activision Blizzard for a case it filed in 2021, accusing the company of systemic gender discrimination and fostering a culture that encouraged rampant misogyny and sexual harassment. The agency, which sued the developer when it was still called the California Department of Fair Employment and Housing, said Activision Blizzard will have to pay $54 million to settle its allegations. Out of the total, $45.75 million will go towards a fund meant to compensate female employees and contract workers who worked for the company in California from October 12, 2015 until December 31, 2020. 

In addition, the developer is expected to retain an independent consultant to evaluate its promotion policies and training materials, as well as to make recommendations based on what they see. If you'll recall, the agency's lawsuit alleged that female employees were overlooked for promotions and were paid less than their male colleagues. According to Marketwatch, though, the settlement will also see the agency withdraw its claims that there was widespread sexual harassment at the company. The department will reportedly have to file an amended complaint that only focuses on gender-based pay gap and discrimination. 

California's original lawsuit detailed how Activision Blizzard condoned a "frat boy" culture that encouraged certain unsavory behaviors. Male employees allegedly did "cube crawls," wherein they routinely groped and sexually harassed their female colleagues at their desks. A spokesperson for the company told Marketwatch that it is "gratified that the CRD has agreed to file an amended complaint that entirely withdraws its 2021 claims alleging widespread and systemic workplace harassment at Activision Blizzard." They added: "We appreciate the importance of the issues addressed in this agreement and we are dedicated to fully implementing all the new obligations we have assumed as part of it. We are committed to ensuring fair compensation and promotion policies and practices for all our employees, and we will continue our efforts regarding inclusion of qualified candidates from underrepresented communities in outreach, recruitment, and retention."

Meanwhile, the department told the website that its announcement, which contains no reference to its earlier sexual harassment allegations, "largely speaks for itself with respect to the historic nature of this more than $50 million settlement agreement, which will bring direct relief and compensation to women who were harmed by the company’s discriminatory practices."

As The Wall Street Journal noted when it reported the settlement, this lawsuit set the stage for Microsoft to acquire the developer. After reports came out that Activision Blizzard CEO Bobby Kotick kept sexual harassment allegations within the company from reaching its board of directors, the developer's shares fell, giving Microsoft the opening to offer a deal. The $68.7 billion acquisition was finalized in October after almost two years of contending with regulators trying to block the purchase. 

This article originally appeared on Engadget at https://www.engadget.com/activision-blizzard-will-pay-54-million-to-settle-californias-gender-discrimination-lawsuit-101149166.html?src=rss

Apple is settling a class action lawsuit over Family Sharing for $25 million

Posted on by

If you used Apple’s Family Sharing feature with at least one other person and bought a subscription to an app through the App Store between 2015 and 2019, you might just get a settlement of up to $50 from the company. MacRumors reports that Apple will pay $25 million to settle a class action lawsuit that accuses the tech giant of misleading customers over Family Sharing.

The feature lets up to six family members share app subscriptions with each other but allows individual developers to forbid people from sharing a single subscription if they wish to. The lawsuit, which was filed in 2019, accuses Apple of not being transparent about this and misleading customers by making them think they could share a subscription to every app available in the App Store. “[The] vast majority of subscription-based apps” did support Family Sharing, the lawsuit claims.

The complaint also alleges that Apple placed ads on the landing pages of some subscription-based apps that didn’t support Family Sharing. This led “millions of customers” to download subscription-based apps believing they would be able to access them through their Family Sharing subscription, it says, citing YouTube Red and a puzzle game called Brainwell as examples of apps that didn’t support sharing their subscriptions with family members. 

Apple has reportedly denied any wrongdoing and has only agreed to settle the case to avoid the potential costs associated with a jury trial. The company did not respond to a request for comment from Engadget.

This article originally appeared on Engadget at https://www.engadget.com/apple-is-settling-a-class-action-lawsuit-over-family-sharing-for-25-million-235208522.html?src=rss

OpenAI will pay to train its models on Business Insider and Politico articles

Posted on by

OpenAI will pay German publisher Axel Springer to use its news articles to train its AI models and show real-time information from Axel Springer's brands, which include Business Insider and Politico in the US and Bild and Welt in Europe, in ChatGPT’s responses. None of the companies disclosed how much the deal was worth, but Bloomberg reported that OpenAI will pay the publisher tens of millions of euros over the next three years.

“This partnership with Axel Springer will help provide people with new ways to access quality, real-time news content through our AI tools,” said OpenAI’s chief operating officer Brad Lightcap in a statement. “We are deeply committed to working with publishers and creators around the world and ensuring they benefit from advanced AI technology and new revenue models.”

OpenAI’s partnership with Axel Springer comes on the heels of concerns from creators, authors, and publishers who have criticized and sued generative AI companies for training their models on their content without consent or compensation. Some publishers like The New York Times, Vox Media, BBC News, Reuters, and CNN have blocked OpenAI from accessing their data. Striking deals with AI companies, however, could provide a brand new revenue source for publishers who are currently going through the worst year for the media business in decades.

As part of the deal, Alex Springer will provide OpenAI with both current news articles as well as archives from all its brands to train its large language models, the foundational tech that powers ChatGPT. When ChatGPT uses Axel Springer’s articles in its responses, it will include attribution and links to the pieces for transparency. Axel Springer will also be able to use OpenAI’s technology to improve its own products, The Wall Street Journal reported.

This isn’t the first deal that OpenAI has struck with a news publisher. Earlier this year, the company entered into a two-year partnership with The Associated Press to use select content from the AP’s archives dating back to 1985 to train its AI models, although the terms of that deal do not include letting ChatGPT use AP content in its responses. OpenAI also has a $5 million partnership with the American Journalism Project to explore how local news organizations can benefit from artificial intelligence.

This article originally appeared on Engadget at https://www.engadget.com/openai-will-pay-to-train-its-models-on-business-insider-and-politico-articles-200327559.html?src=rss

The EU will reportedly rule against Apple in Spotify’s complaint over App Store policies

Posted on by

EU regulators have reportedly sided against Apple in its long fight against Spotify over App Store policies. The complaint centered on "anti-steering" rules that allegedly prevented platforms like Spotify from adequately promoting alternative methods of payment. While Spotify was the key opposition, the decision impacts not just music-streaming, but anyone offering software that requires a monthly subscription.

Bloomberg reports that regulators are still putting the final touches on the ruling, with a formal decision expected for early next year. Along with the ruling, the EU will likely penalize Apple for the practice and ban it outright. It’s expected that Apple will get hit with a steep fine, with some experts suggesting it could be as much as ten percent of its annual global revenue. This could add up to nearly $40 billion.

However, the fine is likely to be lower than that, as the EU tends to place more of an emphasis on actually ending abusive practices, instead of relying solely on fines as a deterrent. So the big news will be Apple being forced to play by the rules when operating in Europe, ending anti-steering practices once and for all. Of course, it’s all up in the air until the regulating body releases its judgment.

This follows a probe that started four years ago. It all began with a complaint from Spotify alleging that Apple’s anti-steering practices were forcing the music-streaming platform to raise prices to cover costs associated with appearing on the App Store. This led to an initial “statement of objections” against Apple in 2021 and a formal charge sheet this past February, as reported by The Verge.

The formal charge sheet declared in a “preliminary view” that “Apple’s anti-steering obligations” offer “unfair trading conditions.” For years, Apple didn’t allow rival streaming services like Spotify to even include links in third-party apps to their own subscription sign-ups. The company has since loosened this restriction slightly after an antitrust investigation in Japan. The EU ruling could further erode this mandate.

The European regulatory commission will address the accusation that Apple stopped companies from advertising alternative subscription methods but will not address anything related to in-app purchases. If you’ve been following this story, fees associated with in-app purchases were also part of the complaint until being dropped in February. The EU has issued a separate probe into Apple’s tap-to-pay technology and whether there are any inherent antitrust concerns. According to reports, the company’s in talks to settle that case.

How will this affect the rest of the world? There’s a similar case making its way through the US courts, via an antitrust suit brought forth by Epic Games. A judge sided with Epic, but Apple recently asked the Supreme Court for an appeal. The court granted a temporary reprieve, so Apple can still do whatever it wants in its App Store, for now. Apple is a global entity, however, so all it takes is a few countries to force a company-wide change. As an example, just look at USB-C ports.

Google faced a different outcome in a US court this week. A federal jury sided with Epic Games in a similar antitrust case against Google. The jury unanimously agreed that Google held an illegal monopoly on app distribution and in-app billing services for Android devices.

This article originally appeared on Engadget at https://www.engadget.com/the-eu-will-reportedly-rule-against-apple-in-spotifys-complaint-over-app-store-policies-195704039.html?src=rss

Apple may lift NFC restrictions in Europe to escape antitrust fines

Posted on by

Apple is attempting to avoid a fine and ongoing legal battle with the European Union. The company is allegedly offering its rivals access to its Near-Field Communication (NFC) technology, used for tap-and-go payments, Reuters reports. The update follows the European Commission's May 2022 charge and ongoing probe into Apple's potential antitrust Apple Pay practices.

The Commission has been investigating Apple since 2020, with Executive Vice-President Margrethe Vestager previously stating there were "indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple's devices." 

While Apple's current proposal could get it out of a hefty fine and settle the case against it, it's not guaranteed to move forward. The Commission will likely confer with Apple's rivals and customers in the next month or so to determine if it should accept the offer. More than 2,500 banks across Europe use Apple Pay. 

Apple also faces a lawsuit in the United States, brought in July 2022 by Iowa's Affinity Credit Union. Similarly, it accuses Apple of engaging in anti-competitive behavior by illegally restricting iOS users to Apple Pay for any contactless payments.

In September 2023, a US District Court Judge Jeffrey S. White of California ruled that the case would move forward, stating: "Plaintiffs have plausibly alleged that Apple Pay charges arbitrary and inflated fees to issuers, and that competition in the tap-and-pay iOS mobile wallet market would spur innovation and lead to lower prices." In his decision, White also explained that the plaintiffs properly demonstrated Apple's alleged and attempted monopolization.

This article originally appeared on Engadget at https://www.engadget.com/apple-may-lift-nfc-restrictions-in-europe-to-escape-antitrust-fines-131004981.html?src=rss

Google loses antitrust trial against Epic Games

Posted on by

Epic Games' lawsuit against Google has had a much different turnout from its courtroom battle with Apple. A federal jury has sided with the video game developer and has found Google to be in violation of US antitrust laws when it comes to how it runs the Play Store. According to The Verge, the jury has unanimously agreed that Google held an illegal monopoly on app distribution and in-app billing services for Android devices. Further, it found the company's distribution agreements with other video gaming companies, as well as its deals with device manufacturers to pre-install its apps on Android devices, to be anticompetitive. 

In its complaint, Epic said that Google had silently paid game developers hundreds of millions of dollars to make their titles downloadable from the Play Store in an initiative that was originally known as "Project Hug." It alleged that the company had paid Activision Blizzard $360 million to abandon its plans of creating a competing app store, which the game developer subsequently denied. Google, which Epic said came up with the incentive program after it released Fortnite outside of the Play Store, also reportedly inked deals with Nintendo, Ubisoft and Riot Games. 

The jury has come to the conclusion that Epic Games has been negatively affected by Google's actions, but we've yet to know how its victory will change the latter's practices. In a statement posted on X, Epic Games CEO Tim Sweeney said the court will start "work[ing] on remedies" in January. Judge James Donato, who's overseeing the case, will be making the decision whether to order Google to give developers the freedom to introduce their own app stores and billing systems for Android devices. In the case of Epic's lawsuit against Apple, the court ruled that the iPhone-maker didn't violate US antitrust laws, but it ordered the company to allow App Store developers to direct customers through third-party payment systems. 

In a statement published on its website, Epic called its victory "a win for all app developers and consumers around the world" and said they have proved that "Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation." It also said that the case's outcome "demonstrates the urgent need for legislation and regulations that address Apple and Google strangleholds over smartphones."

Google, however, doesn't intend to go down without a fight. Wilson White, Google VP for Government Affairs and Public Policy, told Engadget that the company plans to challenge the verdict. "Android and Google Play provide more choice and openness than any other major mobile platform," White said. "The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem."

Update, Dec 12 2023, 11:00 AM ET: Added a statement from Epic.

This article originally appeared on Engadget at https://www.engadget.com/jury-sides-with-epic-games-in-its-antitrust-lawsuit-against-google-032341810.html?src=rss

Google loses antitrust trial against Epic Games

Posted on by

Epic Games' lawsuit against Google has had a much different turnout from its courtroom battle with Apple. A federal jury has sided with the video game developer and has found Google to be in violation of US antitrust laws when it comes to how it runs the Play Store. According to The Verge, the jury has unanimously agreed that Google held an illegal monopoly on app distribution and in-app billing services for Android devices. Further, it found the company's distribution agreements with other video gaming companies, as well as its deals with device manufacturers to pre-install its apps on Android devices, to be anticompetitive. 

In its complaint, Epic said that Google had silently paid game developers hundreds of millions of dollars to make their titles downloadable from the Play Store in an initiative that was originally known as "Project Hug." It alleged that the company had paid Activision Blizzard $360 million to abandon its plans of creating a competing app store, which the game developer subsequently denied. Google, which Epic said came up with the incentive program after it released Fortnite outside of the Play Store, also reportedly inked deals with Nintendo, Ubisoft and Riot Games. 

The jury has come to the conclusion that Epic Games has been negatively affected by Google's actions, but we've yet to know how its victory will change the latter's practices. In a statement posted on X, Epic Games CEO Tim Sweeney said the court will start "work[ing] on remedies" in January. Judge James Donato, who's overseeing the case, will be making the decision whether to order Google to give developers the freedom to introduce their own app stores and billing systems for Android devices. In the case of Epic's lawsuit against Apple, the court ruled that the iPhone-maker didn't violate US antitrust laws, but it ordered the company to allow App Store developers to direct customers through third-party payment systems. 

Google, however, doesn't intend to go down without a fight. Wilson White, Google VP for Government Affairs and Public Policy, told Engadget that the company plans to challenge the verdict. "Android and Google Play provide more choice and openness than any other major mobile platform," White said. "The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem."

This article originally appeared on Engadget at https://www.engadget.com/jury-sides-with-epic-games-in-its-antitrust-lawsuit-against-google-032341810.html?src=rss