Amazon filed a motion on Friday in the Western Washington district court asking a judge to dismiss the Federal Trade Commission’s (FTC) antitrust lawsuit against it. The FTC along with 17 state attorneys general sued Amazon in September, alleging the company uses monopolistic practices that are unfair to both its competitors and consumers. Amazon is now arguing that the FTC did not provide evidence that its practices have driven up prices or harmed consumers, according to Bloomberg.
The FTC’s lawsuit claims Amazon uses illegal tactics to crush its competition — like punishing sellers who list their products for better prices elsewhere by burying them in search results, and coercing sellers into using Amazon’s own fulfillment service by tying it to Prime eligibility. It also accuses Amazon of inflating prices from 2016-2018 using an algorithmic tool codenamed Project Nessie. These increases added up to more than $1 billion, according to the suit.
In Amazon’s motion for dismissal, per AP, Amazon said it’s only engaging in “common retail practices” that “benefit consumers and are the essence of competition.” Amazon attorney Heidi Hubbard wrote that the suit “implausibly, and illogically, assumes that Amazon’s efforts to keep featured prices low on Amazon somehow raised consumer prices across the whole economy,” according to Bloomberg.
This article originally appeared on Engadget at https://www.engadget.com/amazon-asks-court-to-dismiss-ftc-lawsuit-that-accuses-it-of-monopolistic-practices-220546149.html?src=rss
Amazon filed a motion on Friday in the Western Washington district court asking a judge to dismiss the Federal Trade Commission’s (FTC) antitrust lawsuit against it. The FTC along with 17 state attorneys general sued Amazon in September, alleging the company uses monopolistic practices that are unfair to both its competitors and consumers. Amazon is now arguing that the FTC did not provide evidence that its practices have driven up prices or harmed consumers, according to Bloomberg.
The FTC’s lawsuit claims Amazon uses illegal tactics to crush its competition — like punishing sellers who list their products for better prices elsewhere by burying them in search results, and coercing sellers into using Amazon’s own fulfillment service by tying it to Prime eligibility. It also accuses Amazon of inflating prices from 2016-2018 using an algorithmic tool codenamed Project Nessie. These increases added up to more than $1 billion, according to the suit.
In Amazon’s motion for dismissal, per AP, Amazon said it’s only engaging in “common retail practices” that “benefit consumers and are the essence of competition.” Amazon attorney Heidi Hubbard wrote that the suit “implausibly, and illogically, assumes that Amazon’s efforts to keep featured prices low on Amazon somehow raised consumer prices across the whole economy,” according to Bloomberg.
This article originally appeared on Engadget at https://www.engadget.com/amazon-asks-court-to-dismiss-ftc-lawsuit-that-accuses-it-of-monopolistic-practices-220546149.html?src=rss
Game studios and publishers have collectively laid off an estimated 9,000-plus workers this year. Microsoft (which itself has laid off workers from Xbox teams in 2023) is bucking the trend to a certain extent by hiring dozens of ZeniMax quality assurance contractors as unionized employees.
The company agreed at the beginning of this year to formally recognize a union representing around 300 QA workers at ZeniMax Media, the parent company of Bethesda that Microsoft bought in 2021. As part of bargaining talks that have been ongoing since April, Microsoft has agreed to hire 77 temporary workers and incorporate them into the ZeniMax Workers United-CWA (Communications Workers of America) union.
Microsoft is hiring 23 of the workers as full-time, permanent employees with a pay increase of 22.2 percent. The other 54 workers are getting an immediate pay bump from $18 per hour to $20.75 an hour. Once the collective bargaining agreement is ratified, Microsoft will hire those workers as temporary employees.
According to the CWA, the new employees will now receive paid holidays and sick leave. The latter was previously only available if contractors lived in a jurisdiction that requires paid time off for illness. In addition, all of the workers will receive a copy of Starfield, the blockbuster game they had worked on. The CWA says it was not standard practice for contractors to get copies of the games they help to ship.
The CWA says the union will keep fighting for more contractors to have a pathway to permanent roles. “We look forward to continued good faith negotiations as we work towards a collective bargaining agreement,” Microsoft vice president Amy Pannoni told Bloomberg.
“We are now stronger at the bargaining table and are working to secure a fair contract for all workers — direct employees and contractors," Chris Lusco, associate QA tester and a member of ZeniMax Workers United-CWA, said in a statement. "We are all a part of ZeniMax Studio’s success and we all deserve our fair share. We hope to set a new precedent for workers across Microsoft and the entire gaming industry so that all workers, regardless of their employment status, are able to improve their working conditions through collective bargaining."
Last year, while Microsoft was attempting to win regulatory approval to buy Activision Blizzard, the company said it would remain neutral when the publisher's employees wished to unionize. A pact it reached with the CWA to that effect is set to come into force on December 12, 60 days after the Activision deal closed.
This article originally appeared on Engadget at https://www.engadget.com/microsoft-is-hiring-dozens-of-zenimax-qa-contractors-as-unionized-employees-180047283.html?src=rss
Genetic testing company 23andMe changed its terms of service to prevent customers from filing class action lawsuits or participating in a jury trial days after reports revealing that attackers accessed personal information of nearly 7 million people — half of the company’s user base — in an October hack.
In an email sent to customers earlier this week viewed by Engadget, the company announced that it had made updates to the “Dispute Resolution and Arbitration section” of its terms “to include procedures that will encourage a prompt resolution of any disputes and to streamline arbitration proceedings where multiple similar claims are filed.” Clicking through leads customers to the newest version of the company’s terms of service that essentially disallow customers from filing class action lawsuits, something that more people are likely to do now that the scale of the hack is clearer.
“To the fullest extent allowed by applicable law, you and we agree that each party may bring disputes against the other party only in an individual capacity and not as a class action or collective action or class arbitration,” the updated terms say. Notably, 23andMe will automatically opt customers into the new terms unless they specifically inform the company that they disagree by sending an email within 30 days of receiving the firm’s notice. Unless they do that, they “will be deemed to have agreed to the new terms,” the company’s email tells customers.
23andMe did not respond to a request for comment from Engadget.
In October, the San Francisco-based genetic testing company headed by Anne Wojcicki announced that hackers had accessed sensitive user information including photos, full names, geographical location, information related to ancestry trees, and even names of related family members. The company said that no genetic material or DNA records were exposed. Days after that attack, the hackers put up profiles of hundreds of thousands of Ashkenazi Jews and Chinese people for sale on the internet. But until last week, it wasn’t clear how many people were impacted.
In a filing with the Securities and Exchange Commission, 23andMe said that “multiple class action claims” have already been against the company in both federal and state court in California and state court in Illinois, as well as in Canadian courts.
Forbidding people from filing class action lawsuit, as Axiosnotes, hides information about the proceedings from the public since affected parties typically attempt to resolve disputes with arbitrators in private. Experts, such as Chicago-Kent College of Law professor Nancy Kim, an online contractor expert, told Axios that changing its terms wouldn’t be enough to protect 23andMe in court.
The company’s new terms are sparking outrage online. “Wow they first screw up and then they try to screw their users by being shady,” a user who goes by Daniel Arroyo posted on X. “Seems like they’re really trying to cover their asses,” wrote another user called Paul Duke, “and head off lawsuits after announcing hackers got personal data about customers.”
This article originally appeared on Engadget at https://www.engadget.com/23andme-frantically-changed-its-terms-of-service-to-prevent-hacked-customers-from-suing-152434306.html?src=rss
Walmart has seen enough from X. The retailer, America’s single biggest employer and largest company by revenue, toldReuters on Friday it’s no longer advertising on the platform formerly known as Twitter. The departure follows owner Elon Musk amplifying antisemitic posts and flinging expletives at fleeing advertisers. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokesperson told Reuters.
Walmart’s exit adds to a growing list of companies that have pulled ads from the platform. Apple, Disney, IBM, Comcast and Warner Bros. Discovery are among the businesses no longer buying ads on X. A group of advertisers toldThe New York Times on Thursday their temporary pauses will likely become permanent. “There is no advertising value that would offset the reputational risk of going back on the platform,” Lou Paskalis, CEO of marketing consultancy AJL Advisory, told the paper.
X’s former advertisers had no shortage of reasons to jump ship. Musk’s latest series of self-inflicted wounds began when the billionaire appeared to endorse and amplify a post falsely claiming Jewish communities were stoking hatred against white people. Musk replied to the user who spewed the racist “Great Replacement” conspiracy theory, saying their comments reflected “the actual truth.”
Michael M. Santiago via Getty Images
Watchdog group Media Matters then published a report showing ads from well-known brands placed next to antisemitic content. X responded by suing the organization, accusing it of “knowingly and maliciously [manufacturing] side-by-side images depicting advertisers’ posts on X Corp.’s social media platform beside Neo-Nazi and white national fringe content.”
Musk’s attempt to smooth things over only made things worse. After apologizing for amplifying the antisemitic content at The New York Times’ DealBook event, he told advertisers backing off of the platform to “Go fuck yourself.” His company now potentially stands to lose $75 million.
Walmart employs around 1.6 million people in the US. The retailer made $611 billion in revenue in the 2023 fiscal year.
This article originally appeared on Engadget at https://www.engadget.com/walmart-says-its-no-longer-advertising-on-x-215940504.html?src=rss
Meta has sued the Federal Trade Commission (FTC) in an attempt to stop regulators from reopening a landmark $5 billion privacy settlement from 2020 and to allow it to monetize kids’ data across apps like Facebook, Instagram and Whatsapp. This comes after a federal judge ruled on Monday that the FTC would be allowed to expand on 2020’s privacy settlement, paving the way for the agency to propose tough new rules on how the social media giant could operate in the wake of the Cambridge Analytica scandal.
Today’s lawsuit demands an immediate stop to the FTC’s proceedings, calling it an “obvious power grab” and an “unconstitutional adjudication by fiat.” A Meta spokesperson even referred to the FTC as “prosecutor, judge, and jury in the same case”, as reported by Bloomberg. This is the second attempt by Facebook’s parent company to stop the sanctions in court.
The FTC, for its part, says that Meta has repeatedly violated the terms of 2020’s settlement regarding user privacy. The agency also says that the company has violated the Children’s Online Privacy Protection Act (COPPA) by monetizing the data of younger users. The FTC has already been given the go ahead by a judge to restrict this type of monetization, a decision Meta hopes to overturn.
The FTC also seeks to implement new restrictions that limit Meta’s use of facial recognition, as well as a complete moratorium on new products and services until a third-party completes an audit to determine if the company’s complying with its privacy obligations.
“Facebook has repeatedly violated its privacy promises,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement. “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.” To that end, multiple states have sued Meta to stop the monetization of children’s data, along with the EU.
The FTC has been a consistent thorn in Meta’s side, as the agency tried to stop the company’s acquisition of VR software developer Within on the grounds that the deal would deter "future innovation and competitive rivalry." The agency dropped this bid after a series of legal setbacks. It also opened up an investigation into the company’s VR arm, accusing Meta of anti-competitive behavior.
Corporations have been all over the FTC lately in attempts to paint the agency as a prime example of government overreach. Beyond Meta, biotech giant Illumina is suing the FTC to halt a decision that stops it from a $7 billion acquisition of the cancer detection startup Grail.
This article originally appeared on Engadget at https://www.engadget.com/meta-sues-ftc-to-block-new-restrictions-on-monetizing-kids-data-185051764.html?src=rss
Fresh off successful contract negotiations with Ford, GM and Stellantis, the United Auto Workers (UAW) is seeking to unionize 150,000 workers across 13 automakers including Tesla, BMW, Mercedes Benz and Hyundai, it announced. "To all the autoworkers out there working without the benefits of a union: now it’s your turn," said UAW president Shawn Fain.
The UAW said the organizing drive covers "more than a dozen" non-union automakers. It notes that many use a mix of full-time, temporary and contract employees "to divide the workforce and depress wages." The union cited one example of a Hyundai assembly plant employee who worked for a subcontractor for eight years starting at $9.25 an hour before finally becoming a full-time Hyundai employee.
Non-union automakers, including VW, Nissan, Hyundai, Honda, Toyota and Subaru raised wages after the UAW's negotiations with the big three. VW, for one, bumped them to $23.42 an hour, rising to a maximum of $32.40. However, they "lag far behind UAW autoworkers in wages, benefits and rights on the job," the union said.
The UAW helped workers win a 25 percent raise over four years with the big three automakers, with the highest-paid Ford workers now earning $83,000 per year for a 40-hour work week (around $42 per hour). The union also gained reinstatement of cost-of-living allowances, shorter progression periods to top wages and a quicker conversion of temporary to in-progression (full-time) employees.
Tesla employees have attempted to unionize the company before, and some alleged that the company fired them for that — though that claim was recently dismissed by the US National Labor Relations Board (NLRB). The NLRB has previously found that Tesla violated labor law by prohibiting employees from talking about workplace matters. Back in 2022, Elon Musk challenged the UAW to hold a vote at Tesla's California factory.
Other automakers aren't exempt from worker complaints, including startup Rivian. "The company likes to tell us we’re making the plane while flying it, and that explains a lot about the problems we have," said one Rivian chassis worker. "We have all sorts of safety issues. Turnover is terrible. Every group has a story about a new employee who did not make it to first break. The lack of safety, the low pay, the forced overtime, there are so many reasons we need to be union."
This article originally appeared on Engadget at https://www.engadget.com/united-auto-workers-seeks-to-unionize-tesla-bmw-and-other-carmakers-100555374.html?src=rss
Unity Software is eliminating 3.8 percent of its global workforce and terminating an agreement with VFX company Weta as part of a "reset," Reuters has reported. The news follows some severe turbulence in the company, after it imposed and then partially walked back a controversial runtime fee for its game engine. Last month, John Riccitiello stepped down as president and CEO of the company after nine years in leadership.
Some 265 employees will be laid off, all related to Unity's professional services agreement struck as part of its purchase of Weta Digital's technology and engineering division back in 2021. Employees will have only a week to wrap up before their positions are fully terminated, according to FX Guide — a tough blow just before Christmas. In a statement, Weta FX said it will extend offers to as many affected employees as possible.
Unity will close offices in up to 14 locations including Berlin and Singapore, pending consultation with employees in some locations, while reducing its office footprint in San Francisco and Belleview, Washington. The company will no longer require that employees work from offices three days a week and will reduce "full in-office services" to three days a week.
After Unity's acquisition, Weta FX (the film industry VFX division) split off into a new and separate company. Unity, meanwhile, acquired Weta engineers along with tools for pipelines and FX, Weta's data platform, a library of assets and more. "Unity will retain ownership of the technology it acquired from Wētā in December 2021 and will be evaluating the best way to enhance its offerings with it over time. The technology will also remain fully available to Weta FX," Weta said in a statement.
Just a month ago, Unity rolled out some significant concessions to its developer pricing model after widespread backlash over its plan to charge developers for game installations. The move will directly impact developers, publishers and distributors. The upheaval of Unity’s business model came at the same time as a series of massive layoffs. In 2023, the company reduced its headcount three times in an attempt to cut costs. CEO John Riccitiello, who took much of the brunt of the criticism, stepped down last month and was replaced by former IBM president James Whitehurst, who is serving as an interim CEO.
This article originally appeared on Engadget at https://www.engadget.com/unity-cuts-265-jobs-as-part-of-a-company-reset-123511764.html?src=rss
Tesla sued Sweden’s transportation agency and postal service on Monday over a union strike blocking the company’s license plate deliveries in the country. The workers are striking to demand the non-unionized automaker sign a collective bargaining agreement, a standard practice that mechanics’ union IF Metall describes as “the backbone of the Swedish model.” However, the Swedish Transport Agency says it already received an interim decision from a district court ordering it to consent within seven days to Tesla’s request to collect license plates or face hefty fines. The agency says it’s too early to say what exactly that means for the standoff.
The Associated Pressreported Monday that Tesla, which delivered over 9,000 EVs to Swedish customers in 2022, described the actions of The Swedish Transport Agency (Transportstyrelsen) as a “unique attack” on the US company. Tesla’s lawsuit reportedly urges a district court to fine the Swedish Transport Agency 1 million kronor (US$95,803) while allowing Tesla to “retrieve license plates.” The registrations are held up because workers at state-owned postal service PostNord stopped supplying the plates to Tesla after its workers joined the strike.
The lawsuit allegedly claims the Swedish Transport Agency refused the automaker’s request to pick up the license plates itself or, failing that, send them through a different channel. Reutersreports Tesla filed two lawsuits: one against the Swedish Transport Agency and another against PostNord.
In a statement to Engadget, Swedish Transport Agency spokesperson Ann-Sofie Masth confirmed the lawsuit and revealed the court’s interim decision. “The Swedish Transport Agency has now received an interim decision from the Norrköping district court to consent within 7 days to Tesla collecting license plates directly from our sign manufacturer. It appears from the decision that our sign manufacturer has announced that it is prepared to provide the signs directly to Tesla, provided that the Swedish Transport Agency agrees to this. We at the Swedish Transport Agency now need to analyze the announcement and assess what consequences this has for us and what measures might need to be taken to implement the decision. It is currently too early to say exactly what that would mean.”
ASSOCIATED PRESS
Tesla, not exactly a union-friendly company, has a policy against signing collective bargaining agreements, claiming its employees already have equal or better terms than what the union proposed. The argument that it takes good enough care of its employees to void the need for a union echoes one Tesla CEO Elon Musk made in 2017 when accused of allegations of poor working conditions and low pay at the company’s Fremont, CA factory.
IF Metall, Sweden’s most prominent manufacturing union, began striking on October 27. Although Tesla doesn’t have a manufacturing plant in the country, it has several service centers, which stopped working on Tesla vehicles after going on strike. Other unions in the Nordic nation, including dockworkers, cleaners and electricians, have joined the strike in an act of unity. A component maker joined the unions on Friday in a sympathy action.
In Tesla’s court filing, the company reportedly described the decision as “a unique attack on a company operating in Sweden,” claiming the refusal to deliver the license plates would affect “a large number of consumers who ordered a new car from Tesla.”
In a statement to The AP, an IF Metall representative said, “We are doing this for the sake of our members, to ensure that they have safe working conditions.” A Swedish Transportation Agency spokesperson reportedly told Reuters, “We at the Swedish Transport Agency do not share this view and therefore Tesla has decided to have the issue tested in court, which is their right.”
This article originally appeared on Engadget at https://www.engadget.com/tesla-sues-sweden-for-blocking-license-plate-deliveries-during-labor-strike-190547427.html?src=rss
X, the social network formerly known as Twitter, typically earns the most money in the last months of the year, as brands ramp up their advertising campaigns for the holiday shopping season. According to The New York Times, though, the company's earnings report for this quarter might look different than usual. Based on internal documents The Times has seen, over 100 brands and even other types of advertisers, such as political candidates, have fully paused their ads on the website, while dozens more are considering pulling their campaigns. If advertisers don't come back, X could lose up to $75 million in ad revenue earnings this year.
The documents reportedly track how X would be affected by brands leaving the website, including the first ones that paused their ads shortly after Elon Musk's controversial tweet, wherein he agreed with an antisemitic conspiracy theory. Shortly after he posted his tweet, media watchdog Media Matters published a report showing ads on the website right next to antisemitic content. In response, X filed a lawsuit against the organization, accusing it of "knowingly and maliciously [manufacturing] side-by-side images depicting advertisers' posts on X Corp.'s social media platform beside Neo-Nazi and white national fringe content."
X said in its complaint that Media Matters deliberately created an environment to show ads from some of the platform's biggest advertisers next to "extreme, fringe content." Linda Yaccarino, the company's CEO, defended X in a post and said that only two users saw Apple's ad next to unpalatable content on the platform. One of them was Media Matters, she added. The organization called X's lawsuit "frivolous" in a statement to Engadget and said it looks forward to winning in court.
IBM, Apple and Disney were among the brands that quickly pulled their ads from X after the incidents. Lionsgate specifically cited Musk's tweet as its reason for suspending its advertising campaigns, while Ubisoft was one of the first video game companies to withdraw its ads from X. According to The Times' report, Airbnb has halted over $1 million worth of advertising on X, and Netflix has pulled $3 million in ads. X could also lose $4 million in ad revenue due to Microsoft's subsidiaries pausing their campaigns. Uber and Coca-Cola are two other well-known brands that have chosen to put their advertising on X on hold.
In a statement to the publication, the company said the figures it viewed were either outdated or "represented an internal exercise to evaluate total risk." It also said that the revenue at risk was only around $11 million and that the exact amount keeps fluctuating as some advertisers return or increase their ad spending.
This article originally appeared on Engadget at https://www.engadget.com/elon-musks-x-could-lose-75-million-in-ad-revenue-following-antisemitic-content-backlash-075316116.html?src=rss