Tag Archives: Business

WordPress founder sued for alleged libel and attempted extortion

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The WP Engine web hosting service is suing WordPress co-founder Matt Mullenweg and his company Automattic. This follows a public feud over the WordPress trademark. The federal lawsuit accuses Mullenweg of “abuse of power, extortion and greed.”

This is the latest volley in an ongoing battle between WordPress and WP Engine, but it requires a bit of background. WordPress is the backend that powers a large chunk of the internet, around 40 percent of websites. Users can build a website from the ground up using WordPress or opt for an easier plug-and-play solution offered by third-party providers like WP Engine.

Mullenweg, who runs his own provider called Automattic, began loudly criticizing WP Engine back in September, calling it a “cancer to WordPress.” He said that the third-party provider’s name has confused customers into thinking it's actually part of WordPress. He also accused WP Engine of turning off certain features to save money.

WP Engine responded with a cease-and-desist letter and a request to withdraw the aforementioned comments, according to reporting by TechCrunch. It also said that its use of the WordPress trademark was legal under fair use. It went on to claim that Mullenweg threatened to take a “scorched earth nuclear approach” against WP Engine unless it agreed to pay “a significant percentage of its revenues for a license to the WordPress trademark.”

After this, the WordPress Foundation changed its Trademark Policy page and accused WP Engine of “never once” donating to the open-source arm of the foundation, “despite making billions of revenue on top of WordPress.” He went as far as to suggest that WP Engine covered up trademark abuse by editing websites. 

Mullenweg also banned WP Engine from accessing certain resources, like some plug-ins and themes. WP Engine powers over 200,000 websites and this move allegedly broke a lot of them. In response, the company wrote that Mullenweg’s “unprecedented and unwarranted action interferes with the normal operation of the entire WordPress ecosystem, impacting not just WP Engine and our customers.”

On October 1, WP Engine announced that it had developed its own solution that allowed consumers to access all of the missing themes and plug-ins. It followed that with today’s lawsuit, which accuses Mullenweg of demanding eight percent of the company’s monthly revenue as a royalty payment. The suit also alleges that Mullenweg and Automattic participated in libel, slander, violations of the Computer Fraud and Abuse Act and IRS fraud.

“Matt Mullenweg’s conduct over the last ten days has exposed significant conflicts of interest and governance issues that, if left unchecked, threaten to destroy that trust,” WP Engine said in a statement. “WP Engine has no choice but to pursue these claims to protect its people, agency partners, customers and the broader WordPress community.” Mullenweg and Automattic have yet to respond to today’s developments.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/wordpress-founder-sued-for-alleged-libel-and-attempted-extortion-152957987.html?src=rss

DoNotPay ‘robot lawyer’ fined $193K by the FTC for not being a lawyer

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The Federal Trade Commission is taking action against DoNotPay, alleging that the AI-powered company billing itself as "the world's first robot lawyer" failed to back its claims that it could replace human legal representation. The agency's complaint argues that DoNotPay did not conduct tests to assess whether its AI chatbot was equivalent to a human lawyer, and that the company did not hire or retain any attorneys of its own. DoNotPay has agreed to a proposed settlement that would see it face fines of $193,000. In addition, the settlement will require DoNotPay to inform customers who subscribed to its service between 2021 and 2023 about the limitations of its offerings.

This proposed settlement is part of an FTC program called Operation AI Comply, which is targeting businesses that leverage artificial intelligence to make deceptive claims. "Using AI tools to trick, mislead, or defraud people is illegal," FTC Chair Lina M. Khan said. "The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books. By cracking down on unfair or deceptive practices in these markets, FTC is ensuring that honest businesses and innovators can get a fair shot and consumers are being protected."

In addition to promising legal services, DoNotPay also claimed it could get accounts unbanned from social media platforms. The company postponed its first attempt to use its AI chatbot in a court setting in 2023 after multiple state bar associations intervened in the case.

This article originally appeared on Engadget at https://www.engadget.com/ai/donotpay-robot-lawyer-fined-193k-by-the-ftc-for-not-being-a-lawyer-223227153.html?src=rss

DoNotPay ‘robot lawyer’ fined $193K by the FTC for not being a lawyer

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The Federal Trade Commission is taking action against DoNotPay, alleging that the AI-powered company billing itself as "the world's first robot lawyer" failed to back its claims that it could replace human legal representation. The agency's complaint argues that DoNotPay did not conduct tests to assess whether its AI chatbot was equivalent to a human lawyer, and that the company did not hire or retain any attorneys of its own. DoNotPay has agreed to a proposed settlement that would see it face fines of $193,000. In addition, the settlement will require DoNotPay to inform customers who subscribed to its service between 2021 and 2023 about the limitations of its offerings.

This proposed settlement is part of an FTC program called Operation AI Comply, which is targeting businesses that leverage artificial intelligence to make deceptive claims. "Using AI tools to trick, mislead, or defraud people is illegal," FTC Chair Lina M. Khan said. "The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books. By cracking down on unfair or deceptive practices in these markets, FTC is ensuring that honest businesses and innovators can get a fair shot and consumers are being protected."

In addition to promising legal services, DoNotPay also claimed it could get accounts unbanned from social media platforms. The company postponed its first attempt to use its AI chatbot in a court setting in 2023 after multiple state bar associations intervened in the case.

This article originally appeared on Engadget at https://www.engadget.com/ai/donotpay-robot-lawyer-fined-193k-by-the-ftc-for-not-being-a-lawyer-223227153.html?src=rss

Apple Store employees in Oklahoma City ratify their first union contract

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Employees at an Apple Store in Oklahoma City's Penn Square Mall have voted to ratify their first collectively-bargained contract. The store's workers are part of the Communications Workers of America, operating as Apple Retail Union-CWA Local 6016. The employees' three-year agreement with Apple includes the following, according to a press release from CWA:

  • "Wage increases of up to 11.5% over the next three years."

  • "Worker involvement in scheduling and guaranteed paid time off to vote."

  • "A safer and more democratic workplace with a grievance and arbitration process and the establishment of joint Safety and Health and Working Relations committees."

  • "Job protection in the event of a store closure or relocation and severance pay."

  • "Guaranteed paid time off, health and other benefits."

It's worth pointing out that though the CWA press release says the wage increases are "of up to 11.5 percent over the next three years," Apple has said that this number is actually an average 10 percent increase over three years instead.

An Apple spokesperson said “At Apple, we work hard to provide an excellent experience for our team members and our customers. We have always paid our retail teams in the top tier of the market and we provide exceptional benefits for all full- and part-time employees. Throughout this process, we have bargained in good faith and this agreement allows Penn Square team members to enjoy similar performance-based wage increases this year as last year, along with the same medical and time away benefits our U.S. retail employees currently receive.”

Apple also shared more details around compensation and wages like how the tentative agreement provides an average 10 percent increase over 3 years. Penn Square Mall employees will also be able to participate in the scheduling options that were provided to all other US stores in 2022, and held to the same availability guidelines as the rest of the fleet with no exceptions. PSQ members will receive the same medical and time off benefits as all US team members, and subject to the same documented coaching, discipline and misconduct practices that apply across all of Apple's US stores.

Apple's spokesperson also said the agreement includes the creation of a safety committee at the PSQ location, like the one at all its other stores. A working relations committee, made up of two representatives from the union and two from the company, will meet twice a year.

Today's news caps off years of preparation to unionize and secure a contract for the Penn Square Mall Apple Store, which began organizing in early 2022. The parties reached a tentative agreement in early September after a unanimous strike authorization vote in August and a store picket.

The Oklahoma City employees are the second group of Apple retail workers to reach a contract through their union. An Apple Store in Maryland was the first of the tech company's retail stores to unionize, joining the International Association of Machinists and Aerospace Workers in June 2022.

Update, September 25 2024, 4:55PM ET: This story has been updated to include Apple's statement as well as details the company's spokesperson shared. We also clarified that there's a discrepancy between what the CWA press release says is the percentage for wage increase over the next three years and what Apple says it is.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-store-employees-in-oklahoma-city-ratify-their-first-union-contract-190218680.html?src=rss

Google files EU antitrust complaint against Microsoft

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Google filed a complaint against Microsoft with the European Commission on Wednesday. In it, Google accused Microsoft of making it prohibitively expensive for cloud customers to move their work from Azure to other providers, like Google Cloud.

Google claims Microsoft’s cloud licensing terms restrict European customers from switching to competing cloud platforms despite “no technical barriers to doing so.” In a blog post explaining its complaint, Google wrote that Microsoft’s practices have “significantly harmed European companies and governments,” costing European businesses €1 billion ($1.1 billion) annually, wasting taxpayer money and stifling competition.

Amazon’s AWS leads Europe’s cloud market. Microsoft’s Azure is second, followed by Google in third. Oracle, Salesforce and IBM rounded out the top six in Q2 2024.

On Wednesday, a European Commission spokesperson confirmed to Engadget that the EU governing body received Google’s complaint. “We will assess it according to our standard procedures,” EC spokesperson Lea Zuber wrote.

Google’s complaint referred to a settlement this summer between Microsoft and CISPE (Cloud Infrastructure Service Providers in Europe), the trade body for Europe’s cloud industry. The latter filed a complaint against Microsoft in late 2022, accusing the company of anti-competitive practices with Azure (strikingly similar to Google’s complaints from today). The full details of the settlement, which led to CISPE withdrawing its complaint, weren’t made public. CISPE wrote in July that Microsoft would make changes to address its concerns. Those included releasing an enhanced version of the Azure Stack HCI, which would bring features that Microsoft's customers enjoy to European cloud providers.

In a statement to Engadget, Microsoft was optimistic that the EC would dismiss Google’s complaint. “Microsoft settled amicably similar concerns raised by European cloud providers, even after Google hoped they would keep litigating,” a Microsoft spokesperson wrote, referring to a Bloomberg report that Google offered a $500 million alternative deal to keep the antitrust complaint alive. “Having failed to persuade European companies, we expect Google similarly will fail to persuade the European Commission,” Microsoft’s spokesperson wrote.

Google says Windows Server is at the heart of its complaint. Describing it as “a must-have workhorse in many IT environments,” the company says Microsoft changed its practices after cloud computing became a more lucrative business. “But as Azure faced more competition, Microsoft introduced new rules that severely limited customer choice,” Google wrote.

Google said the licensing terms Microsoft adopted in 2019 “imposed extreme financial penalties” on companies who wanted to use Windows Server software with Azure competitors like AWS and Google Cloud. “Microsoft’s own statements indicate that customers who want to move their workloads to these competitors would need to pay up to five times more,” Google wrote, citing an archived 2023 webpage comparing Azure pricing to that of AWS. Google said Microsoft also limited security patches and created other barriers to choice in cloud providers.

Google also linked to research from Professor Frédéric Jenny, a French economist and chair of the OECD Competition Committee. The study claims that European companies and government organizations pay “unfair, additional costs” to customers who license software to run on cloud infrastructure from independent service providers. Professor Jenny claimed those choosing non-Microsoft cloud providers “sucked an additional €1,010,394,489 out of the European economy in 2022.”

Google Cloud’s Head of Platform Amit Zavery wrote on Wednesday that Microsoft’s practices lock customers into Azure, hurt cybersecurity and limit innovation. Zavery also spoke with CNBC, advocating for a more open market for cloud providers. “Today the restrictions [do] not allow choice for customers,” he said. Zavery wants Microsoft’s restrictions “to be removed and allow customers to have and choose whatever cloud provider they think is best for them commercially and technically.”

This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-files-eu-antitrust-complaint-against-microsoft-183050473.html?src=rss

Google files EU antitrust complaint against Microsoft

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Google filed a complaint against Microsoft with the European Commission on Wednesday. In it, Google accused Microsoft of making it prohibitively expensive for cloud customers to move their work from Azure to other providers, like Google Cloud.

Google claims Microsoft’s cloud licensing terms restrict European customers from switching to competing cloud platforms despite “no technical barriers to doing so.” In a blog post explaining its complaint, Google wrote that Microsoft’s practices have “significantly harmed European companies and governments,” costing European businesses €1 billion ($1.1 billion) annually, wasting taxpayer money and stifling competition.

Amazon’s AWS leads Europe’s cloud market. Microsoft’s Azure is second, followed by Google in third. Oracle, Salesforce and IBM rounded out the top six in Q2 2024.

On Wednesday, a European Commission spokesperson confirmed to Engadget that the EU governing body received Google’s complaint. “We will assess it according to our standard procedures,” EC spokesperson Lea Zuber wrote.

Google’s complaint referred to a settlement this summer between Microsoft and CISPE (Cloud Infrastructure Service Providers in Europe), the trade body for Europe’s cloud industry. The latter filed a complaint against Microsoft in late 2022, accusing the company of anti-competitive practices with Azure (strikingly similar to Google’s complaints from today). The full details of the settlement, which led to CISPE withdrawing its complaint, weren’t made public. CISPE wrote in July that Microsoft would make changes to address its concerns. Those included releasing an enhanced version of the Azure Stack HCI, which would bring features that Microsoft's customers enjoy to European cloud providers.

In a statement to Engadget, Microsoft was optimistic that the EC would dismiss Google’s complaint. “Microsoft settled amicably similar concerns raised by European cloud providers, even after Google hoped they would keep litigating,” a Microsoft spokesperson wrote, referring to a Bloomberg report that Google offered a $500 million alternative deal to keep the antitrust complaint alive. “Having failed to persuade European companies, we expect Google similarly will fail to persuade the European Commission,” Microsoft’s spokesperson wrote.

Google says Windows Server is at the heart of its complaint. Describing it as “a must-have workhorse in many IT environments,” the company says Microsoft changed its practices after cloud computing became a more lucrative business. “But as Azure faced more competition, Microsoft introduced new rules that severely limited customer choice,” Google wrote.

Google said the licensing terms Microsoft adopted in 2019 “imposed extreme financial penalties” on companies who wanted to use Windows Server software with Azure competitors like AWS and Google Cloud. “Microsoft’s own statements indicate that customers who want to move their workloads to these competitors would need to pay up to five times more,” Google wrote, citing an archived 2023 webpage comparing Azure pricing to that of AWS. Google said Microsoft also limited security patches and created other barriers to choice in cloud providers.

Google also linked to research from Professor Frédéric Jenny, a French economist and chair of the OECD Competition Committee. The study claims that European companies and government organizations pay “unfair, additional costs” to customers who license software to run on cloud infrastructure from independent service providers. Professor Jenny claimed those choosing non-Microsoft cloud providers “sucked an additional €1,010,394,489 out of the European economy in 2022.”

Google Cloud’s Head of Platform Amit Zavery wrote on Wednesday that Microsoft’s practices lock customers into Azure, hurt cybersecurity and limit innovation. Zavery also spoke with CNBC, advocating for a more open market for cloud providers. “Today the restrictions [do] not allow choice for customers,” he said. Zavery wants Microsoft’s restrictions “to be removed and allow customers to have and choose whatever cloud provider they think is best for them commercially and technically.”

This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-files-eu-antitrust-complaint-against-microsoft-183050473.html?src=rss

Visa slapped with a DOJ antitrust lawsuit

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The Department of Justice (DOJ) filed an antitrust lawsuit against Visa. The lawsuit alleges that the financial firm holds a monopoly over debit network markets allowing it to charge banks and markets with exorbitant fees that get passed onto consumers and keep rival companies like PayPal and Square from competing on their level.

Bloomberg first reported on Monday that the DOJ planned to file an antitrust suit against Visa following a multiyear investigation into Visa’s business practices starting in 2020. Visa attempted to acquire the fintech startup Plaid with a $5.3 billion bid but the DOJ filed a lawsuit blocking the deal claiming the acquisition would eliminate a competitive threat that challenged Visa’s powerful control of debit markets.

Visa dropped the bid a year later to avoid any further legal entanglements but the DOJ continued investigating Visa’s business practices.

The DOJ alleges in its latest lawsuit that Visa’s “web of exclusionary agreements” with banks and businesses helped strengthen its market dominance and “smother” any potential competitors. Attorney General Merrick Garland said in a statement that Visa “unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market.

“Merchants and banks pass along those costs to customers, either by raising prices or reducing quality or service,” the statement reads. “As a result, Visa’s unlawful conduct affects not just the price of one thing — but the price of nearly everything.”

Visa's General Counsel Julie Rottenberg told Engadget in an emailed statement that the DOJ's lawsuit is "meritless" and that they plan to vigorously defend themselves in court. 

"Today's lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving," Rottenberg said by email. "When businesses and consumers choose Visa, it is because of our secure and reliable network, world-class fraud protection, and the value we provide. We are proud of the payments network we have built, the innovation we advance, and the economic opportunity we enable."

This article originally appeared on Engadget at https://www.engadget.com/big-tech/visa-slapped-with-a-doj-antitrust-lawsuit-204710873.html?src=rss

Visa slapped with a DOJ antitrust lawsuit

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The Department of Justice (DOJ) filed an antitrust lawsuit against Visa. The lawsuit alleges that the financial firm holds a monopoly over debit network markets allowing it to charge banks and markets with exorbitant fees that get passed onto consumers and keep rival companies like PayPal and Square from competing on their level.

Bloomberg first reported on Monday that the DOJ planned to file an antitrust suit against Visa following a multiyear investigation into Visa’s business practices starting in 2020. Visa attempted to acquire the fintech startup Plaid with a $5.3 billion bid but the DOJ filed a lawsuit blocking the deal claiming the acquisition would eliminate a competitive threat that challenged Visa’s powerful control of debit markets.

Visa dropped the bid a year later to avoid any further legal entanglements but the DOJ continued investigating Visa’s business practices.

The DOJ alleges in its latest lawsuit that Visa’s “web of exclusionary agreements” with banks and businesses helped strengthen its market dominance and “smother” any potential competitors. Attorney General Merrick Garland said in a statement that Visa “unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market.

“Merchants and banks pass along those costs to customers, either by raising prices or reducing quality or service,” the statement reads. “As a result, Visa’s unlawful conduct affects not just the price of one thing — but the price of nearly everything.”

Visa's General Counsel Julie Rottenberg told Engadget in an emailed statement that the DOJ's lawsuit is "meritless" and that they plan to vigorously defend themselves in court. 

"Today's lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving," Rottenberg said by email. "When businesses and consumers choose Visa, it is because of our secure and reliable network, world-class fraud protection, and the value we provide. We are proud of the payments network we have built, the innovation we advance, and the economic opportunity we enable."

This article originally appeared on Engadget at https://www.engadget.com/big-tech/visa-slapped-with-a-doj-antitrust-lawsuit-204710873.html?src=rss

Apple Store employees in Oklahoma City ratify their first union contract

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Employees at an Apple Store in Oklahoma City's Penn Square Mall have voted to ratify their first collectively-bargained contract. The store's workers are part of the Communications Workers of America, operating as Apple Retail Union-CWA Local 6016. The employees' three-year agreement with Apple includes the following, according to a press release from CWA:

  • "Wage increases of up to 11.5% over the next three years."

  • "Worker involvement in scheduling and guaranteed paid time off to vote."

  • "A safer and more democratic workplace with a grievance and arbitration process and the establishment of joint Safety and Health and Working Relations committees."

  • "Job protection in the event of a store closure or relocation and severance pay."

  • "Guaranteed paid time off, health and other benefits."

It's worth pointing out that though the CWA press release says the wage increases are "of up to 11.5 percent over the next three years," Apple has said that this number is actually an average 10 percent increase over three years instead.

An Apple spokesperson said “At Apple, we work hard to provide an excellent experience for our team members and our customers. We have always paid our retail teams in the top tier of the market and we provide exceptional benefits for all full- and part-time employees. Throughout this process, we have bargained in good faith and this agreement allows Penn Square team members to enjoy similar performance-based wage increases this year as last year, along with the same medical and time away benefits our U.S. retail employees currently receive.”

Apple also shared more details around compensation and wages like how the tentative agreement provides an average 10 percent increase over 3 years. Penn Square Mall employees will also be able to participate in the scheduling options that were provided to all other US stores in 2022, and held to the same availability guidelines as the rest of the fleet with no exceptions. PSQ members will receive the same medical and time off benefits as all US team members, and subject to the same documented coaching, discipline and misconduct practices that apply across all of Apple's US stores.

Apple's spokesperson also said the agreement includes the creation of a safety committee at the PSQ location, like the one at all its other stores. A working relations committee, made up of two representatives from the union and two from the company, will meet twice a year.

Today's news caps off years of preparation to unionize and secure a contract for the Penn Square Mall Apple Store, which began organizing in early 2022. The parties reached a tentative agreement in early September after a unanimous strike authorization vote in August and a store picket.

The Oklahoma City employees are the second group of Apple retail workers to reach a contract through their union. An Apple Store in Maryland was the first of the tech company's retail stores to unionize, joining the International Association of Machinists and Aerospace Workers in June 2022.

Update, September 25 2024, 4:55PM ET: This story has been updated to include Apple's statement as well as details the company's spokesperson shared. We also clarified that there's a discrepancy between what the CWA press release says is the percentage for wage increase over the next three years and what Apple says it is.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-store-employees-in-oklahoma-city-ratify-their-first-union-contract-190218680.html?src=rss

HP’s Print AI will offer a better way to print websites

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HP just announced HP Print AI, which is being advertised as “the industry’s first intelligent print” experience. Beyond squeezing in tech’s two favorite letters (AI), the software looks to “simplify and enhance printing from setup to support.” There are several tools here, but the most interesting aspect is something called Perfect Output.

This could actually solve the problem of printing from web pages, which typically produces something just a hair above absolute garbage. The company says the embedded algorithms will reduce all of that unnecessary white space and will get rid of ads.

Image size will also be optimized, so printing from a website should look about as good as something that came from a word processor. HP says everything will “fit perfectly on the page for the first time.” Perfect Output isn’t just for websites, as the company says it’ll also make short work of spreadsheets, which are another frustrating thing to print out.

This feature begins rolling out today, but only to select customers as a beta. HP told Engadget that Perfect Output will work with any of the company’s printers, so long as the correct driver is installed and it’s connected to a Windows 10 or Windows 11 machine. Once some customer feedback comes in, it should go into a wider release.

HP Print AI will also use artificial intelligence to customize support for each user, with the company saying that its “intelligent technology anticipates” the needs of consumers. HP says this will be especially useful when it comes to setup and for remembering user preferences. There’s also a chatbot in there that allows for language-based queries, which runs off of a proprietary LLM the company calls a "print language model." So it's technically a, sigh, PLM. 

For now, these tools are tied to driver software. HP says that they’ll be featured prominently in a forthcoming app update scheduled for next year. 

This article originally appeared on Engadget at https://www.engadget.com/computing/accessories/hps-print-ai-will-offer-a-better-way-to-print-websites-170523565.html?src=rss