Tag Archives: Company Legal & Law Matters

Apple wins appeal against UK antitrust probe into mobile browser dominance

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Apple has handed the UK’s Competition and Markets Authority a major setback in its effort to regulate the tech giant. On Friday, the company won an appeal against an investigation the antitrust watchdog launched last fall. As a refresher, the CMA opened a full market probe into Apple and Google in November. At the time, the regulator said that many UK businesses felt restricted by the “stranglehold” the two tech giants had on mobile browsing. The probe also sought to determine if Apple was restricting the cloud gaming market through its App Store rules.

Per Reuters, Apple successfully argued the regulator had “no power” to investigate its position in the mobile browser market. The company said the CMA should have opened the probe at the same time it first published its report on mobile ecosystems last June. The Competition Appeal Tribunal (CAT), the court that oversees CMA cases, agreed with Apple, saying the regulator gave notice of its investigation too late.

Apple said it was “pleased” with the CAT’s decision, adding it would “continue working to deliver support for developers and a safe and secure experience for users.” Naturally, the CMA was less thrilled with the case’s outcome.

“We are disappointed with today’s judgment. We made this market investigation reference to make sure that UK consumers get a better choice of mobile internet services and that UK developers can invest in innovative new apps. Our concerns, and the reasons why we launched our market investigation, were not challenged by Apple,” the regulator said in a statement. "Given the importance of today's judgment, we will be considering our options including seeking permission to appeal."

This article originally appeared on Engadget at https://www.engadget.com/apple-wins-appeal-against-uk-antitrust-probe-into-mobile-browser-dominance-163706177.html?src=rss

NLRB says Activision Blizzard illegally surveilled employees during a walkout

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Activision Blizzard is facing yet another complaint by the National Labor Relations Board (NLRB). The labor agency has “found merit with several elements of the unfair labor practice charges filed by the Communications Workers of America (CWA)” on behalf of the company’s workers, the union has told Engadget. This particular case pertains to the CWA’s accusations that the game developer illegally surveilled workers when they walked out in July last year to protest the lack of gender equality in the company, the overturning of Roe v. Wade, as well as Activision Blizzard’s alleged union-busting practices. 

The NLRB found after an investigation that the company broke labor laws by using managers and security staff to monitor workers during the walkout. In addition, the labor board found merit in the CWA’s accusation that the developer threatened to cut off workers’ access to an internal chatroom where they discussed their pay, hours and overall working conditions. According to IGN, though, NLRB has dismissed one charge regarding the company cutting off people’s chat access to an all-hands meeting. The publication says Activision Blizzard‘s chief administrative officer Brian Bulatao has informed workers that chat was shut down for future all-hands because that particular meeting turned toxic. Attendees used it as a chance to “disparage the work of the Diablo Immoral team and others,” he explained.

An NLRB spokesperson told Reuters that it will move forward and prosecute Blizzard if the company doesn’t settle.

The company’s labor practices were thrust into the spotlight after California filed a lawsuit against it in 2021 for fostering a “frat boy” workplace. After a two-year investigation, the state’s Department of Fair Employment and Housing had determined that the developer discriminated against female employees. It’s one labor issue after another for Activision Blizzard after that, mostly related to workers’ organizing efforts. To note, the company is also facing another NLRB complaint, accusing it of violating labor laws by implementing an overbroad social media policy that prevented workers from talking about their working conditions and threatening employees who were exercising their right to join a union. Activision Blizzard told Engadget that those allegations were “false.”

This article originally appeared on Engadget at https://www.engadget.com/nlrb-says-activision-blizzard-illegally-surveilled-employees-during-a-walkout-094211193.html?src=rss

Sam Bankman-Fried pleads not guilty to latest fraud, bribery charges

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FTX founder and former CEO Sam Bankman-Fried (aka SBF) pleaded not guilty to five additional criminal charges this morning, according toCNBC. Prosecutors accuse the disgraced crypto exec of fraud and bribery for conspiring to send at least $40 million to Chinese government officials so they would unfreeze more than $1 billion in cryptocurrency, which he allegedly used to fund loss-generating trades.

On Tuesday, the U.S. Attorney’s Office for the Southern District of New York (SDNY) unsealed the third round of criminal charges against SBF in a superseding indictment; SBF has now pleaded not guilty to all 13 charges. Additionally, he faces civil charges from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). His attorney, Mark Cohen, claimed he would file a motion that SBF can’t be tried on charges brought after his extradition from the Bahamas in December.

Federal prosecutors allege SBF and his partners tried “numerous” legal and personal methods to unfreeze the funds before moving forward with the bribe. They say SBF directed Alameda Research, FTX’s sister company, to transfer more than $40 million to a private wallet. Of course, it’s illegal for US citizens to bribe foreign officials to generate business. The new charges ramp up pressure on the 31-year-old Bankman-Fried, who reportedly “arrived at the courthouse about an hour before the hearing, looking disheveled after an intense media scrum.”

Three former FTX executives, Caroline Ellison, Zixiao “Gary” Wang, and Nishad Singh, have pleaded guilty to fraud and conspiracy charges and have agreed to cooperate with the prosecution. There’s no word yet on the judge’s ruling about whether SBF will be forced to use a feature phone and limit internet access as part of his bail terms. After it was revealed SBF was using a virtual private network (VPN) and possibly tampering with witnesses, District Judge Lewis Kaplan previously said he didn’t want SBF “loose on his garden of electronic devices.”

This article originally appeared on Engadget at https://www.engadget.com/sam-bankman-fried-pleads-not-guilty-to-latest-fraud-bribery-charges-165445328.html?src=rss

Google found to have violated order to save chat evidence in Epic antitrust case

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A federal judge has ruled that Google violated a court order requiring it to preserve employee chat messages relevant to Epic's antitrust case, according to Bloomberg and CNBC. San Francisco US District Judge James Donato said the tech giant "adopted a 'don't ask, don't tell' policy for keeping messages, at the expense of its preservation duties," and must be sanctioned for its actions. Donato has yet to decide on what sanctions and penalties Google should face, but he ordered the company to cover Epic's attorney's fees related to this particular issue.

Donato said in his decision that Google gave almost 360 employees the complete freedom to decide whether or not to preserve chat histories. In a separate filing by the Department of Justice over the same complaint, the agency explained that the tech giant's internal chatroom, which is used to discuss "substantive and sensitive business," is set to delete chat messages within 24 hours by default. The agency expected Google to change its chat history setting in 2019 when it "reasonably anticipated [the] litigation," but it still allegedly left the decision to individual employees. 

Epic Games, to support its case, recently submitted exhibits to show how Google employees tend to switch off chat history. In one example from 2021, Google CEO Sundar Pichai allegedly wrote: "...also can we change the setting of this group to history off." He attempted to delete that message a few seconds later, according to the filing. Google employees also reportedly switch off chat histories when discussing topics, such as revenue sharing and mobile app distribution agreements, as well as a project that involves changing commission rates for Google Play. 

In a statement, a Google spokesperson said the company has worked with Epic and investigators over the years and has handed over millions of documents: "Our teams have conscientiously worked, for years, to respond to Epic and the state AGs’ discovery requests and we have produced over three million documents, including thousands of chats. We'll continue to show the court how choice, security, and openness are built into Android and Google Play," they said. 

The judge will hold further proceedings to finalize the sanctions Google must face. Donato said he'd like to see the evidence available "at the end of fact discovery," so that Epic would be better positioned to "tell the Court what might have been lost in the Chat communications."

This article originally appeared on Engadget at https://www.engadget.com/google-found-to-have-violated-order-to-save-chat-evidence-in-epic-antitrust-case-052711779.html?src=rss

Google found to have violated order to save chat evidence in Epic antitrust case

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A federal judge has ruled that Google violated a court order requiring it to preserve employee chat messages relevant to Epic's antitrust case, according to Bloomberg and CNBC. San Francisco US District Judge James Donato said the tech giant "adopted a 'don't ask, don't tell' policy for keeping messages, at the expense of its preservation duties," and must be sanctioned for its actions. Donato has yet to decide on what sanctions and penalties Google should face, but he ordered the company to cover Epic's attorney's fees related to this particular issue.

Donato said in his decision that Google gave almost 360 employees the complete freedom to decide whether or not to preserve chat histories. In a separate filing by the Department of Justice over the same complaint, the agency explained that the tech giant's internal chatroom, which is used to discuss "substantive and sensitive business," is set to delete chat messages within 24 hours by default. The agency expected Google to change its chat history setting in 2019 when it "reasonably anticipated [the] litigation," but it still allegedly left the decision to individual employees. 

Epic Games, to support its case, recently submitted exhibits to show how Google employees tend to switch off chat history. In one example from 2021, Google CEO Sundar Pichai allegedly wrote: "...also can we change the setting of this group to history off." He attempted to delete that message a few seconds later, according to the filing. Google employees also reportedly switch off chat histories when discussing topics, such as revenue sharing and mobile app distribution agreements, as well as a project that involves changing commission rates for Google Play. 

In a statement, a Google spokesperson said the company has worked with Epic and investigators over the years and has handed over millions of documents: "Our teams have conscientiously worked, for years, to respond to Epic and the state AGs’ discovery requests and we have produced over three million documents, including thousands of chats. We'll continue to show the court how choice, security, and openness are built into Android and Google Play," they said. 

The judge will hold further proceedings to finalize the sanctions Google must face. Donato said he'd like to see the evidence available "at the end of fact discovery," so that Epic would be better positioned to "tell the Court what might have been lost in the Chat communications."

This article originally appeared on Engadget at https://www.engadget.com/google-found-to-have-violated-order-to-save-chat-evidence-in-epic-antitrust-case-052711779.html?src=rss

Clearview CEO claims company’s database of scraped images is now 30 billion strong

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Clearview AI, the controversial facial recognition software used by at least 3,100 law enforcement agencies across the US, has scrapped more than 30 billion images from social media platforms like Facebook. CEO Hoan Ton-That shared the statistic in a recent interview with BBC News (via Gizmodo) where he also said the company had run nearly 1 million searches for US police.

Last March, Clearview disclosed its database featured more than 20 billion “publicly available” images, meaning the platform has grown by a staggering 50 percent over the past year. While Engadget cannot confirm those figures, they suggest the company, despite recent setbacks at the hands of groups like the American Civil Liberties Union and legal threats from platform holders, has found no shortage of interest for its services.

In a rare admission, the Miami Police Department revealed it uses Clearview AI to investigate all manner of crimes, including everything from theft to murder. Assistant Chief of Police Armando Aguilar said the force has used the technology about 450 times per year. “We don’t make an arrest because an algorithm tells us to,” he told BBC News. "We either put that name in a photographic line-up or we go about solving the case through traditional means."

Ton-That told BBC News he was not aware of any cases where Clearview mistakenly identified someone. Verifying that claim is difficult due to a lack of data and transparency around the use of facial recognition technology. For instance, in the recent wrongful arrest of Randal Reid, a Black man who was falsely accused of stealing in a state he had never visited, it’s unclear if police obtained the false match that led to the arrest using Clearview AI or MorphoTrak, a competing facial recognition system. Ton-That said wrongful arrests are the result of "poor policing.”

A handful of US cities, including Boston and San Francisco, have passed legislation restricting police and government use of facial recognition technologies. Federal action on the subject has been slow. In 2021, a group of 20 lawmakers led by Senator Ron Wyden (D-OR) introduced the Fourth Amendment is Not For Sale Act, a bill that seeks to ban law enforcement and intelligence agencies from buying data from Clearview. The legislation has yet to pass, however.

This article originally appeared on Engadget at https://www.engadget.com/clearview-ceo-claims-companys-database-of-scraped-images-is-now-30-billion-strong-174921576.html?src=rss

Clearview CEO claims company’s database of scraped images is now 30 billion strong

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Clearview AI, the controversial facial recognition software used by at least 3,100 law enforcement agencies across the US, has scrapped more than 30 billion images from social media platforms like Facebook. CEO Hoan Ton-That shared the statistic in a recent interview with BBC News (via Gizmodo) where he also said the company had run nearly 1 million searches for US police.

Last March, Clearview disclosed its database featured more than 20 billion “publicly available” images, meaning the platform has grown by a staggering 50 percent over the past year. While Engadget cannot confirm those figures, they suggest the company, despite recent setbacks at the hands of groups like the American Civil Liberties Union and legal threats from platform holders, has found no shortage of interest for its services.

In a rare admission, the Miami Police Department revealed it uses Clearview AI to investigate all manner of crimes, including everything from theft to murder. Assistant Chief of Police Armando Aguilar said the force has used the technology about 450 times per year. “We don’t make an arrest because an algorithm tells us to,” he told BBC News. "We either put that name in a photographic line-up or we go about solving the case through traditional means."

Ton-That told BBC News he was not aware of any cases where Clearview mistakenly identified someone. Verifying that claim is difficult due to a lack of data and transparency around the use of facial recognition technology. For instance, in the recent wrongful arrest of Randal Reid, a Black man who was falsely accused of stealing in a state he had never visited, it’s unclear if police obtained the false match that led to the arrest using Clearview AI or MorphoTrak, a competing facial recognition system. Ton-That said wrongful arrests are the result of "poor policing.”

A handful of US cities, including Boston and San Francisco, have passed legislation restricting police and government use of facial recognition technologies. Federal action on the subject has been slow. In 2021, a group of 20 lawmakers led by Senator Ron Wyden (D-OR) introduced the Fourth Amendment is Not For Sale Act, a bill that seeks to ban law enforcement and intelligence agencies from buying data from Clearview. The legislation has yet to pass, however.

This article originally appeared on Engadget at https://www.engadget.com/clearview-ceo-claims-companys-database-of-scraped-images-is-now-30-billion-strong-174921576.html?src=rss

FTX co-founder Sam Bankman-Fried accused of bribing Chinese officials

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Former FTX CEO Sam Bankman-Fried (aka SBF) now faces a total of 13 criminal charges. Per Reuters, a newly unsealed indictment accuses the disgraced entrepreneur of conspiring to pay a $40 million bribe to Chinese government officials. Federal prosecutors allege Bankman-Fried ordered Alameda Research, FTX’s sister company, to transfer the funds to a private wallet, in hopes of convincing Chinese authorities to unfreeze Alameda accounts with more than $1 billion in crypto assets. It is illegal for US citizens to bribe foreign government officials in order to obtain business.

The new charge adds even more pressure on the 31-year-old Bankman-Fried. It was only last month that federal prosecutors added four charges to his then 8-count indictment, accusing SBF of fraudulent activity involving FTX and Alameda Research and violating federal campaign finance laws by making secret donations. Bankman-Fried has pleaded not guilty to eight of the 13 criminal charges he faces. He has yet to be arraigned on the remaining ones. Separately, the former entrepreneur faces civil lawsuits from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). 

SBF has acknowledged FTX employed inadequate risk management. However, he maintains he's not criminally liable for the crypto exchange’s downfall. A trio of former FTX executives – Caroline Ellison, Zixiao "Gary” Wang and Nishad Singh – have pleaded guilty to their own fraud and conspiracy charges, and agreed to cooperate with prosecutors. According to Reuters, SBF is expected to be arraigned on the new charge on Thursday. That same day, Judge Lewis Kaplan will also consider tweaks to Bankman-Fried’s $250 bail package, including a provision that could limit him to using a dumb phone while he waits for the outcome of his trial.

This article originally appeared on Engadget at https://www.engadget.com/ftx-co-founder-sam-bankman-fried-accused-of-bribing-chinese-officials-160918751.html?src=rss

FTX co-founder Sam Bankman-Fried accused of bribing Chinese officials

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Former FTX CEO Sam Bankman-Fried (aka SBF) now faces a total of 13 criminal charges. Per Reuters, a newly unsealed indictment accuses the disgraced entrepreneur of conspiring to pay a $40 million bribe to Chinese government officials. Federal prosecutors allege Bankman-Fried ordered Alameda Research, FTX’s sister company, to transfer the funds to a private wallet, in hopes of convincing Chinese authorities to unfreeze Alameda accounts with more than $1 billion in crypto assets. It is illegal for US citizens to bribe foreign government officials in order to obtain business.

The new charge adds even more pressure on the 31-year-old Bankman-Fried. It was only last month that federal prosecutors added four charges to his then 8-count indictment, accusing SBF of fraudulent activity involving FTX and Alameda Research and violating federal campaign finance laws by making secret donations. Bankman-Fried has pleaded not guilty to eight of the 13 criminal charges he faces. He has yet to be arraigned on the remaining ones. Separately, the former entrepreneur faces civil lawsuits from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). 

SBF has acknowledged FTX employed inadequate risk management. However, he maintains he's not criminally liable for the crypto exchange’s downfall. A trio of former FTX executives – Caroline Ellison, Zixiao "Gary” Wang and Nishad Singh – have pleaded guilty to their own fraud and conspiracy charges, and agreed to cooperate with prosecutors. According to Reuters, SBF is expected to be arraigned on the new charge on Thursday. That same day, Judge Lewis Kaplan will also consider tweaks to Bankman-Fried’s $250 bail package, including a provision that could limit him to using a dumb phone while he waits for the outcome of his trial.

This article originally appeared on Engadget at https://www.engadget.com/ftx-co-founder-sam-bankman-fried-accused-of-bribing-chinese-officials-160918751.html?src=rss

Apple accused of illegally firing pro-union workers

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Apple is once again facing accusations of cracking down on union organizers. The Communications Workers of America union (CWA) has filed charges with the National Labor Relations Board (NLRB) asserting that Apple illegally intimidated and fired workers at Houston and Kansas City, Missouri stores in retaliation for their labor organization efforts. The ex-employees in Kansas City were ostensibly cut loose for being slightly late, calling out from work or even making typos in timesheets, but were also made to sign a "release of all claims" to get their severance pay. They couldn't challenge Apple's practices once they left, in other words.

In Houston, Apple allegedly questioned workers individually about their union support and offered improved conditions if they dropped their labor support. Those that persisted in pro-union activity were disciplined and threatened with deteriorating conditions, the CWA claims.

Only two US stores, in Oklahoma City and Towson, Maryland, unionized in 2022. Abroad, a store in Glasgow became the third. Other employees, such as those in St. Louis, Missouri, have filed for union elections. Staff in Atlanta called off a vote last spring after accusing Apple of intimidation tactics.

We've asked Apple for comment. The company has historically opposed unionization efforts, reportedly holding mandatory anti-union meetings. Apple is also said to have withheld benefits from unionized workers at the Towson store while claiming that they needed to strike a collective bargaining agreement. The firm has tried to head off labor movements by raising wages, expanding benefits and relaxing schedules.

Fights between tech giants and their rank-and-file workers aren't new. Labor organization in tech reached a fever pitch in 2022, with workers at companies like Activision Blizzard, Amazon and Microsoft either unionizing or making their displeasure known. Those brands, meanwhile, have frequently tried to block unionization attempts. The CWA's charges suggest those battles are continuing well into the new year.

This article originally appeared on Engadget at https://www.engadget.com/apple-accused-of-illegally-firing-pro-union-workers-140058541.html?src=rss