Tag Archives: Business

X hit with $140 million fine from the EU

Posted on by

The European Commission has fined Elon Musk’s X €120 million (around $140 million) for breaching its transparency rules under the Digital Services Act. The European Union’s executive arm announced that it was investigating the social media company’s blue checkmarking verification system — first introduced when it was still known as Twitter — last year, along with other alleged DSA violations. Today’s verdict concerns the "deceptive design" of the checkmark, as well as "the lack of transparency of [X's] advertising repository, and the failure to provide access to public data for researchers."

The Commission's issue with X’s verification system is that where blue checkmarks were once something that Twitter that Twitter vetted, they can now be bough by anyone. According to the EU, this puts users at risk of scams and impersonation fraud, as they can’t tell if the accounts they’re engaging with are authentic. "While the DSA does not mandate user verification, it clearly prohibits online platforms from falsely claiming that users have been verified, when no such verification took place," it wrote in a statement.

The EU has also ruled that X’s advertisement repository employs "design features and access barriers" that make it difficult for good faith actors and the general public to determine the source of online ads and spot scams or threat campaigns. It says that X fails to provide information pertaining to both the content of an ad and the entity paying for its placement.

The third alleged infringement concerns the public data that companies are required by the DSA to make available to qualifying researchers. The European Commission claims that X’s practices in this area are unnecessarily prohibitive, therefore "effectively undermining research into several systemic risks in the European Union."

X has 60 working days to respond to the EU’s non-compliance decision — the first of its nature — on blue checkmarks, and 90 days to submit an "action plan" of how it will address the alleged breaches relating to its advertising repository and access to public data. Failure to comply could result in financial penalties.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/x-hit-with-140-million-fine-from-the-eu-161259324.html?src=rss

The New York Times and Chicago Tribune sue Perplexity over alleged copyright infringement

Posted on by

The New York Times and the Chicago Tribune have filed separate lawsuits against Perplexity over alleged copyright infringement. The Times said it had sent Perplexity several cease-and-desist demands to stop using its content until the two reached an agreement, but the AI company persisted in doing so. 

In the lawsuit [PDF], the Times accused Perplexity of infringing on its copyrights at two main stages. First, by scraping its website (including in real time) to train AI models and feed content into the likes of the Claude chatbot and Comet browser. Second, in the output of Perplexity's products, with the Times accusing the company’s generative AI products of often reproducing its articles verbatim. The Times also says Perplexity damaged its brand by falsely attributing completely fabricated information (aka hallucinations) to the newspaper.

The Chicago Tribune also filed a lawsuit against Perplexity for similar reasons. "Perplexity’s genAI products generate outputs that are identical or substantially similar to the Chicago Tribune’s content,” the newspaper claimed in its suit. “Upon information and belief, Perplexity has unlawfully copied millions of copyrighted Chicago Tribune stories, videos, images and other works to power its products and tools."

These lawsuits are the latest in dozens of legal cases involving copyright holders and AI companies in the US. The Times, for instance, previously sued OpenAI and Microsoft. It accused the companies of training their large language models on millions of its articles without permission. That case is ongoing.

Copyright holders have licensed their content to AI companies in some cases, though. OpenAI has struck multiple deals with media companies. The Times and Amazon reached an agreement this year that's said to be worth as much as $25 million per year to the media company.

This article originally appeared on Engadget at https://www.engadget.com/ai/the-new-york-times-and-chicago-tribune-sue-perplexity-over-alleged-copyright-infringement-153656431.html?src=rss

iam8bit is suing Skybound Game Studios alleging fraud and theft of designs

Posted on by

Skybound Game Studios is being sued by indie outfit iam8bit over fraud and breach of contract, including the theft of original designs. Skybound Entertainment, the parent company of Skybound Game Studios, is chaired by Robert Kirkman, who may be best known for creating the original comic book of The Walking Dead. We've reached out to Skybound for comment on the lawsuit but have not received a response as of publication.

iam8bit is a video game producer as well as a merchandise operation selling vinyl soundtracks and other geek gear. The company entered into a partnership with Skybound Game Studios in April 2021. Since then, iam8bit alleges that Skybound conducted a multi-year accounting scheme and failed to provide accurate financial reports for the partnership each month. "Skybound failed to provide the monthly reports as agreed," the Los Angeles Superior Court complaint reads. "It also padded its expenses with millions of dollars in fake line items." iam8bit claims Skybound has yet to explain the line items, even to a third-party auditor that it engaged. The company is alleging more than $4 million in damages related to the accounting issues. 

iam8bit also accused Skybound of cutting it out of a deal regarding indie video game Stray. According to the company's counsel, iam8bit designed and developed promotional materials for the launch of Stray on PlayStation and Xbox consoles. The complaint claims that Skybound used trade secrets from iam8bit to secure its own deal for the Nintendo launch of the game. It alleges Skybound used confidential information about iam8bit’s royalty split with publishing Annapurna Interactive to cut out its business partner, while also using “almost exact copies” of its creative output for marketing.

The full list of allegations in iam8bit's complaint include breach of contract, fraud, conversion, unjust enrichment and misappropriation. The company's legal team is seeking monetary damages, punitive damages and attorneys' fees in compensation.

This article originally appeared on Engadget at https://www.engadget.com/gaming/iam8bit-is-suing-skybound-game-studios-alleging-fraud-and-theft-of-designs-000822886.html?src=rss

Tencent agrees to stop promoting its Horizon ripoff during Sony lawsuit

Posted on by

Tencent has agreed to stop promoting and publicly testing Light of Motiram as a lawsuit with Sony works its way through the courts, according to a report by TheGamePost. This is Tencent's game that looks suspiciously similar to Sony's Horizon franchise, so much so that Sony sued the publisher.

Sony wants the court to block the game from sale entirely, but as the case continues Tencent has agreed to keep Light of Motiram out of the spotlight. The company submitted a court filing that says there will be "no new promotion of public testing" of the game as Sony's injunction request is argued. In return, Sony will give Tencent more time to respond to the injunction.

Tencent has also issued a request to dismiss the lawsuit entirely. Both companies have jointly requested that the injunction request and the motion to dismiss be moved to the same day, which could be as early as January.

For the uninitiated, Light of Motiram is an open-world hunting game that has some obvious similarities to Horizon Zero Dawn and its sequel. The basic setup is similar, as is the visual appearance of the characters and marketing materials. This all caused Sony to refer to it as a "slavish clone" in the lawsuit.

Image from suit.
Sony

To be fair, there are differences. The Horizon games are third-person adventures in the mold of Zelda, but Light of Motiram looks to be primarily a cooperative survival game.

Tencent is a giant multi-tentacled company that actually owns Riot Games, Supercell and Funcom. It also has investment stakes in Epic, Ubisoft, Activision and Blizzard and Larian Studios, among many others. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/tencent-agrees-to-stop-promoting-its-horizon-ripoff-during-sony-lawsuit-193043644.html?src=rss

Instacart sues New York City over minimum pay, tipping laws

Posted on by

You can tell a lot about a company by what they're willing to sue over. Take Instacart, which just filed a lawsuit against New York City. Its beef? The company doesn't like five new city laws, set to take effect in January. They would require Instacart to pay workers more and give customers a tipping option of at least 10 percent.

Reuters reports that Instacart's suit targets Local Law 124, which mandates that grocery delivery workers receive the same minimum pay as restaurant delivery workers. It also challenged Local Law 107, which mandates 10 percent or higher tipping options (or a place to enter one manually). The lawsuit also takes aim at other laws requiring extra recordkeeping and disclosures. The new rules are set to take effect on January 26.

As is typical of companies griping about regulations that hurt their bottom lines, Instacart framed the issue as a noble fight for what's right. "When a law threatens to harm shoppers, consumers, and local grocers — and especially when it does so unlawfully — we have a responsibility to act," the company proclaimed in a blog post. "This legal challenge is about standing up for fairness, for the independence that tens of thousands of New York grocery delivery workers rely on and for affordable access to groceries for the people who need it most."

Instacart's suit reportedly claims that Congress banned state and local governments from regulating prices on platforms such as its own. It also alleges that New York's state legislature "has long taken charge" of minimum pay, and that the US Constitution doesn't allow states and cities to discriminate against out-of-state companies.

The company warns that everyone will lose if it's forced to comply. Should the laws take effect, "Instacart will be forced to restructure its platform, restrict shoppers' access to work, disrupt relationships with consumers and retailers and suffer constitutional injuries with no adequate legal remedy," it claimed in the filing.

Instacart CEO Chris Rogers, elevated to the post in May, has an estimated net worth of at least $28.6 million. His predecessor, Fidji Simo, who chairs the board and is now with OpenAI, is reportedly worth around $72.7 million. If NYC’s minimum pay laws will be as catastrophic as Instacart claims, maybe they could chip in to help.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/instacart-sues-new-york-city-over-minimum-pay-tipping-laws-220205207.html?src=rss

Instagram mandates total return to office for employees in 2026

Posted on by

Instagram employees will be back at their desks full time next year. Beginning February 2, workers with the social media network will be expected to spend five days a week working in person in offices. Instagram leader Adam Mosseri announced the change in an internal memo first reported by Alex Heath's Sources newsletter. "It's clear we have to evolve," he told the staff, also closing with the note that "2026 is going to be tough." 

The full return to office mandate applies to Instagram's US employees in offices with assigned desks. The memo allowed that people will still be able to work remotely "when you need to," but gave an open-ended call to "use your best judgment" about when to take advantage of that flexibility. 

Many tech companies have adopted a hybrid approach to office work in the years following the COVID-19 pandemic. For instance, Meta instituted a policy of three days a week spent in the office in 2023. Although the messaging from executives insists that in-person work has important benefits, employees have often resisted the shift back to old ways. 

Mosseri outlined other planned changes intended to make the social media company "more nimble and creative." One shift that's probably more welcome than the return to office is to scale back recurring meetings. Any recurring meetings will be canceled every six months unless they're deemed "absolutely necessary." He also plans the team to have more prototypes of product overviews rather than decks, and a faster process for unblocking and decision-making.

This article originally appeared on Engadget at https://www.engadget.com/social-media/instagram-mandates-total-return-to-office-for-employees-in-2026-212738225.html?src=rss

US patent office says generative AI is equivalent to other tools in inventors’ belts

Posted on by

While generative AI systems cannot be considered inventors under US patent laws, the US Patent and Trademark Office has updated its guidelines on how they can be used in the process of creating innovations. The agency's director, John Squires, said in a notice obtained by Reuters that the USPTO deems genAI to be "analogous" to other tools that inventors might use in their process, including lab equipment, software and research databases. 

"AI systems, including generative AI and other computational models, are instruments used by human inventors," Squires wrote. "They may provide services and generate ideas, but they remain tools used by the human inventor who conceived the claimed invention." 

The notice [PDF], which is set to be published in the Federal Register on November 28, notes that there's no separate process for evaluating whether an AI-assisted invention qualifies for a patent. "When multiple natural persons are involved in creating an invention with AI assistance, the traditional joint inventorship principles apply," Squires added.

The Court of Appeals for the Federal Circuit has ruled that "AI cannot be named as an inventor on a patent application (or issued patent) and that only natural persons can be inventors." There's no change to that stance under the latest USPTO guidelines. But the updated rules do offer more clarity as to whether things like new medications that are developed with the help of genAI systems can be patented. 

This article originally appeared on Engadget at https://www.engadget.com/ai/us-patent-office-says-generative-ai-is-equivalent-to-other-tools-in-inventors-belts-211700837.html?src=rss

DoJ agrees to settle with RealPage in rent collusion software case

Posted on by

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

Posted on by

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

Posted on by

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