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Tag: FTC

  • FTC Sues to Block Nvidia’s Arm Purchase

    FTC Sues to Block Nvidia’s Arm Purchase

    The Federal Trade Commission (FTC) has filed a lawsuit to block Nvidia’s attempt to purchase Arm.

    Arm is one of the world’s most important semiconductor design companies. Unlike Intel or AMD, Arm designs and licenses its semiconductors to clients, who are then responsible for manufacturing them. Apple, Qualcomm, Nvidia, Samsung and others are among Arm’s customers.

    Nvidia announced its plans to purchase Arm in September 2020 for $40 billion, a move that immediately drew criticism throughout the industry. Many worried that Nvidia would keep Arm’s greatest innovations for itself, ending Arm’s long-standing practice of maintaining strict neutrality and licensing its designs to anyone willing to pay.

    The EU has already launched an investigation into the deal, and UK regulators have signaled they may try to block it. Now the FTC has filed a lawsuit to prevent the deal from happening.

    “The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies,” said FTC Bureau of Competition Director Holly Vedova. “Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets. This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals. The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations.”

    Given the headwinds Nvidia is facing, a deal to acquire Arm is looking increasingly unlikely.

  • Issues Force Tesla to Roll Back Latest Full Self-Driving Update

    Issues Force Tesla to Roll Back Latest Full Self-Driving Update

    Tesla has rolled back its latest Full Self-Driving (FSD) update following errors.

    FSD is Tesla’s attempt at autonomous driving. Despite the company’s advancements, FSD has had a number of high-profile incidents and accidents. The incidents have led senators to call on the Federal Trade Commission (FTC) to investigate the company’s claims regarding FSD’s capabilities.

    Some users reported issues with the latest beta, with the system warning of an impending crash, despite the car ahead being at a safe distance. The system would even aggressively apply the brakes, creating the possibility of a high-speed accident.

    CEO Elon Musk announced the rollback on Twitter.

  • FTC Will Require Health Apps to Notify Users of Data Breaches

    FTC Will Require Health Apps to Notify Users of Data Breaches

    The Federal Trade Commission (FTC) has updated its guidance for health apps, requiring them to notify users of data breaches impacting them.

    Smartphones and smartwatches are increasingly being used to help monitor users’ health and activity, while a plethora of apps access and use that data. The FTC is offering new guidance for these apps, in an effort to hold them to the same standards as companies specializing in health records.

    The FTC’s Health Breach Notification Rule helps to ensure that entities who are not covered by the Health Insurance Portability and Accountability Act (“HIPAA”) nevertheless face accountability when consumers’ sensitive health information is compromised. Under the Rule’s requirements, vendors of personal health records (“PHR”) and PHR-related entities must notify U.S. consumers and the FTC, and, in some cases, the media, if there has been a breach of unsecured identifiable health information, or face civil penalties for violations. The Rule also covers service providers to these entities. In practical terms, this means that entities covered by the Rule who have experienced breaches cannot conceal this fact from those who have entrusted them with sensitive health information.

    The Rule was issued more than a decade ago, but the explosion in health apps and connected devices makes its requirements with respect to them more important than ever. The FTC has advised mobile health apps to examine their obligations under the Rule,2 including through the use of an interactive tool.3 Yet the FTC has never enforced the Rule, and many appear to misunderstand its requirements. This Policy Statement serves to clarify the scope of the Rule, and place entities on notice of their ongoing obligation to come clean about breaches.

    The new guidance will likely have a major impact on the booming health app market and better protect users and their privacy.

  • California Bill Takes Aim at Amazon’s Warehouse Working Conditions

    California Bill Takes Aim at Amazon’s Warehouse Working Conditions

    Amazon has been under increased scrutiny over its labor practices, but a California bill may finally do something about it.

    Recently, Amazon has gone from one labor-related issue to another. The company settled with the FTC over stiffing its delivery drivers $62 million in tips and has been accused of violating labor laws in Alabama. The company has also been accused of substandard working conditions in its warehouses, with workers under constant pressure to maintain an unreasonable pace.

    California appears poised to tackle the problem, according to The New York Times, with a bill that has already passed the Assembly and likely up for a vote in the State Senate this week.

    Among other things, the bill would require companies to disclose productivity quotas that algorithms track and companies use to evaluate whether to keep or fire employees.

    “The supervisory function is being taken over by computers,” said the bill’s author, Assemblywoman Lorena Gonzalez. “But they’re not taking into account the human factor.”

    The bill would also ensure that employees are able to take bathroom breaks and state-mandated breaks, regardless of the company’s policy or quotas.

    If the law passes, it could have profound repercussions for Amazon, as well as countless other companies.

  • Tesla Autopilot’s Latest Crash Involved a Police Car

    Tesla Autopilot’s Latest Crash Involved a Police Car

    When you’re trying to convince the world of your autonomous driving software, it’s a good idea not to hit police cars — as Tesla is learning.

    According to The Associated Press, the Tesla in question hit a Florida Highway Patrol cruiser that was pulled over on the side of the road while the trooper helped a disabled vehicle.

    The trooper whose cruiser was hit shortly before 5 a.m. Saturday had activated his emergency lights and was on the way to the disabled vehicle when the Tesla hit the cruiser’s left side and then collided with the other vehicle.

    Tesla is already under scrutiny for its Autopilot and more advanced Full Self-Driving (FSD) software, with US senators calling for the FTC to investigate the company’s claims. In their letter to FTC chair Lina Khan, the senators words were almost prescient:

    “Tesla’s marketing has repeatedly overstated the capabilities of its vehicles, and these statements increasingly pose a threat to motorists and other users of the road.”

    There’s at least one Florida Highway Patrol trooper that would likely agree with that sentiment.

  • Senators Calling for FTC Investigation Into Tesla’s Self-Driving Claims

    Senators Calling for FTC Investigation Into Tesla’s Self-Driving Claims

    Senators Edward J. Markey and Richard Blumenthal have called on the Federal Trade Commission (FTC) to investigate Tesla’s marketing claims.

    Tesla has been touting its Autopilot and Full-Self Driving (FSD) features, but the reality hasn’t quite lived up to the description. In fact, Consumer Reports found Tesla’s software was “easily tricked.”

    The issues have caught the attention of Senators Markey and Blumenthal, and they are urging the FTC to investigate.

    “Tesla’s marketing has repeatedly overstated the capabilities of its vehicles, and these statements increasingly pose a threat to motorists and other users of the road,” wrote the senators to FTC Chair Lina Khan. “Accordingly, we urge you to open an investigation into potentially deceptive and unfair practices in Tesla’s advertising and marketing of its driving automation systems and take appropriate enforcement action to ensure the safety of all drivers on the road.”

    “[T]here are no fully autonomous vehicles currently available on the market,” the senators continued, stressing the limitations of Tesla’s Autopilot and FSD technology. “Understanding these limitations is essential, for when drivers’ expectations exceed their vehicle’s capabilities, serious and fatal accidents can and do result.”

  • Facebook Shuts Down Another Group of Researchers

    Facebook Shuts Down Another Group of Researchers

    Facebook has taken action against another group of researchers investigating it, drawing more scrutiny and condemnation.

    Facebook made headlines when it banned researchers from New York University who were studying political ads and misinformation on the platform. The move was blasted by none other than the FTC’s Acting Director of the Bureau of Consumer Protection.

    It appears the NYU researchers weren’t the first groups of researchers Facebook took action against. AlgorithmWatch was studying Instagram’s algorithm, to better understand how it prioritized photos and videos. Like the NYU researchers, AlgorithmWatch used a browser plug-in volunteers installed to collect data from their own feeds.

    Evidently, Facebook took issue with the researchers and their work, at first dismissing it as flawed before threatening them. 

    AlgorithmWatch said the move shows Facebook’s real intentions.

    We designed our add-on with great care so that Facebook cannot identify and prosecute our volunteers. However, Facebook’s reaction shows that any organization that attempts to shed light on one of their algorithms is under constant threat of being sued. Given that Facebook’s Terms of Service can be updated at their discretion (with 30 days’ notice), the company could forbid any ongoing analysis that aims at increasing transparency, simply by changing its Terms.

    It’s a safe bet Facebook has only just begun to experience backlash from this latest revelation.

  • Four Labor Unions Ask FTC to Block Amazon’s MGM Purchase

    Four Labor Unions Ask FTC to Block Amazon’s MGM Purchase

    The Strategic Organizing Center (SOC) has written the Federal Trade Commission, asking the agency to block Amazon’s MGM purchase.

    The SOC represents four unions: the Service Employees International Union, the International Brotherhood of Teamsters, the Communications Workers of America and the United Farmworkers. Together, the four unions include some 4 million workers.

    The SOC has written an open letter to Ms. Holly Vedova, the FTC’s Acting Director, Bureau of Competition, expressing concerns over Amazon’s proposed purchase of MGM Studios, valued at $8.45 billion.

    The letter highlights the current state of the streaming video-on-demand (SVOD) market, a market Amazon is uniquely poised to gain an unfair advantage in.

    The SVOD market is in the midst of both massive expansion and increasing vertical integration. The market is currently dominated by an oligopoly of five firms. In 2020, Netflix (20%), Amazon Prime Video (16%), Hulu (13%), HBO Max (12%), and Disney+ (11%) collectively comprised 72 percent of the entire US SVOD market.1 Each of these firms operate their own studios as well as a streaming platform which acts as distribution channel for content they choose to acquire, or, increasingly, that they produce themselves.

    The letter goes on to highlight that Amazon’s dominance in other markets, specifically e-commerce, allows the company to offer its SVOD services for free, putting it in a position to abuse its market power.

    Amazon’s Prime membership – which bundles free, expedited delivery with streaming video at no additional cost to consumers – is radically different from the per-month-fee model implemented by SVOD competitors. This model, which has already drawn the attention of competition authorities in Europe, involves an aggressive pricing strategy that unfairly leverages Amazon’s dominance in e- commerce into the SVOD market by offering streaming content at no cost to consumers.

    The letter quotes former studio exec Barry Diller’s assessment of the deal to sum up the SOC’s objections.

    “[When I ran studios] the key point of movies was to please consumers,” but for a service like Amazon Prime “incentives have changed … The system is not necessarily to please anybody. It is to buy more Amazon stuff.”

    The SOC’s opposition to Amazon’s MGM deal is just the latest challenge the company is facing amid increasing antitrust scrutiny.

  • FTC Official Blasts Facebook’s Actions Against Researchers

    FTC Official Blasts Facebook’s Actions Against Researchers

    The FTC’s Acting Director of the Bureau of Consumer Protection, Samuel Levine, has written an open letter blasting Facebook’s recent actions.

    Facebook banned researchers from New York University that were studying political ad spending and disinformation on the social media platform. The company used its Terms of Service, which prohibit scraping personal data, to justify its actions. As critics have pointed out, however, the only data NYU researchers were collecting was regarding ads that are, by their very nature, public.

    Director Levine has written an open letter to Facebook criticizing the company’s actions, and making it clear the company’s initial claim of ‘protecting privacy’ doesn’t hold water in these circumstances.

    Below is a copy of his letter:

    Dear Mr. Zuckerberg:

    I write concerning Facebook’s recent insinuation that its actions against an academic research project conducted by NYU’s Ad Observatory were required by the company’s consent decree with the Federal Trade Commission. As the company has since acknowledged, this is inaccurate. The FTC is committed to protecting the privacy of people, and efforts to shield targeted advertising practices from scrutiny run counter to that mission.

    While I appreciate that Facebook has now corrected the record, I am disappointed by how your company has conducted itself in this matter. Only last week, Facebook’s General Counsel, Jennifer Newstead, committed the company to “timely, transparent communication to BCP staff about significant developments.” Yet the FTC received no notice that Facebook would be publicly invoking our consent decree to justify terminating academic research earlier this week.

    Had you honored your commitment to contact us in advance, we would have pointed out that the consent decree does not bar Facebook from creating exceptions for good-faith research in the public interest. Indeed, the FTC supports efforts to shed light on opaque business practices, especially around surveillance-based advertising. While it is not our role to resolve individual disputes between Facebook and third parties, we hope that the company is not invoking privacy – much less the FTC consent order – as a pretext to advance other aims.

    Sincerely,

    /s/ Samuel Levine

    Acting Director

    Bureau of Consumer Protection

  • FTC May Target Google and Facebook’s Data and Algorithms

    FTC May Target Google and Facebook’s Data and Algorithms

    The Federal Trade Commission may target Google and Facebook’s data, and the algorithms they rely on, as part of a larger antitrust crackdown.

    Big Tech has been under increased scrutiny around the world, with regulators in the US and EU poised to take aggressive action to tackle antitrust issues. Google and Facebook, in particular, are facing some of the most intense scrutiny, and are already fending off lawsuits.

    The FTC may have one of the most novel solutions, and the one that should terrify Google and Facebook the most. FTC Chief Technologist Erie Meyer said companies that abuse privacy and collect user data illegally could be forced to pay fines, disclose data and turn over “algorithms that were juiced by ill-gotten data,” reports the Washington Examiner.

    The latter penalty should be especially concerning to both companies, as well as any other data-driven platforms. The algorithms companies use are often some of their most well-guarded secrets. When the US was trying to pressure ByteDance to sell TikTok, one of the issues that torpedoed a sale was China classifying algorithms — such as the one TikTok uses to drive engagement — as sensitive information that could not be exported. Indeed, much of TikTok’s success is believed to be the result of the algorithm it uses.

    If losing algorithms is on the table as a possible penalty, it may well be the single biggest motivation for Big Tech to straighten up and get its act together.

  • FTC Unanimously Embraces Right to Repair

    FTC Unanimously Embraces Right to Repair

    The Federal Trade Commission (FTC) has “unanimously voted to ramp up law enforcement against repair restrictions.”

    Right to repair has become a major issue for consumers, consumer advocacy groups and regulators alike. While it was once fairly easy to do basic repairs and upgrades to devices — such as replacing a cellphone battery or upgrading laptop memory — many manufactures have made it all but impossible in recent times.

    Some jurisdictions have already begun to roll out their own right to repair laws, and the movement has been gaining support. President Biden recently directed the FTC to draft right to repair rules, and the agency has unanimously adopted a policy statement aimed at enforcing those rights.

    “These types of restrictions can significantly raise costs for consumers, stifle innovation, close off business opportunity for independent repair shops, create unnecessary electronic waste, delay timely repairs, and undermine resiliency,” FTC Chair Lina Khan said during an open Commission meeting. “The FTC has a range of tools it can use to root out unlawful repair restrictions, and today’s policy statement would commit us to move forward on this issue with new vigor.” 

    The FTC’s vote is yet another ominous sign for Big Tech, signaling increased legislation and regulation that will have far-reaching impacts on all aspects of the industry.

  • Biden Preparing to Direct the FTC to Create ‘Right to Repair’ Rules

    Biden Preparing to Direct the FTC to Create ‘Right to Repair’ Rules

    President Joe Biden is preparing to direct the Federal Trade Commission (FTC) to create “right to repair” rules.

    Calls for right to repair have been increasing as legislators and consumer groups have argued that tech companies are making it more expensive to repair common electronic devices. Even something as simple as changing a cellphone battery often requires taking the phone to an authorized repair center.

    Growing calls for right to repair helped lead the New York Senate to pass a right to repair bill. Similarly, Congressman Joe Morelle has introduced right to repair legislation in the US House of Representatives.

    According to Bloomberg, President Biden is preparing to direct the FTC to create right to repair rules that would provide “greater competition in the economy, in service of lower prices for American families and higher wages for American workers,” said White House economic adviser Brian Deese.

    In addition to electronics, as Bloomberg points out, the rules would greatly benefit farmers and others who use specialty equipment. Many manufacturers use proprietary tools and software to diagnose and repair equipment, greatly limiting options for the end user. This drives up the price of repairs and prevents farmers and others from using less expensive options.

    An executive order should be forthcoming in the next few days.

  • Teamsters May Set Their Sights on Amazon

    Teamsters May Set Their Sights on Amazon

    The International Brotherhood of Teamsters may take on Amazon at a time when the company is aggressively combating unionization efforts.

    The Teamsters are the most well-known union in the US, with a long and storied history. The group also boasts some 1.4 million delivery drivers, putting it on a collision course with Amazon.

    Amazon has drawn significant criticism in recent years for its treatment of its workers, including delivery drivers. As recently as February, the company settled with the FTC for some $62 million dollars over its practice of illegally withholding tips from its drivers.

    The company has aggressively fought unionization efforts by its employees, however, successfully defeating an effort by warehouse workers in Alabama. The Teamsters have already come out swinging against the e-commerce giant, urging the House Judiciary to pass antitrust legislation that would target Amazon.

    On Thursday, the union will vote on whether to make unionizing Amazon drivers its top priority, according to The Seattle Times.

    “There is no clearer example of how America is failing the working class than Amazon,” says the resolution that will be voted on.

  • FTC Scrutinizing Amazon’s MGM Acquisition

    FTC Scrutinizing Amazon’s MGM Acquisition

    The Federal Trade Commission is planning to review Amazon’s acquisition of MGM at a time when Big Tech is facing increased scrutiny.

    Amazon announced in May it was purchasing MGM for $8.45 billion. MGM had reportedly been looking for a buyer for some time, and Amazon was a natural fit as it looks to expand its Prime Video content catalog.

    According to The Wall Street Journal, the FTC is planning on reviewing the decision, amid antitrust concerns and a wider scrutiny of the increasing power and influence the tech industry wields. The decision also comes immediately after the appointment of Lina Khan as FTC Chairwoman. Khan made a name as an antitrust critic, in large part for her criticism of Amazon.

    MGM is no longer one of the larger Hollywood studios, so that is certainly in the Amazon’s favor. Nonetheless, given the power Amazon already wields — not to mention the success of its Prime Video platform — buying MGM may be a bridge too far for regulators.

  • FTC Sues Frontier Over Misleading Internet Speed Claims

    FTC Sues Frontier Over Misleading Internet Speed Claims

    The Federal Trade Commission (FTC) has sued Frontier Communications, accusing the company of lying about its internet speeds.

    Internet speeds have become more important than ever, as unprecedented numbers of individuals have worked from home during the pandemic. The US already lags behind other developed countries, in terms of high-speed broadband, and the Biden administration has made broadband improvement a major part of its agenda.

    Given the current climate, it’s not surprising Frontier is under scrutiny. The FTC has filed a lawsuit, joined by Arizona, Indiana, Michigan, North Carolina, and Wisconsin, in addition to the district attorneys’ offices of Los Angeles County and Riverside County for the State of California.

    In a complaint, the FTC and its state partners allege that Frontier advertised and sold Internet service in several plans, or tiers, based on download speed. Frontier has touted these tiers using a variety of methods, including mail and online ads, and has sold them to consumers over the phone and online.

    In reality, the FTC alleges, Frontier did not provide many consumers with the maximum speeds they were promised and the speeds they actually received often fell far short of what was touted in the plans they purchased.

    In a statement, Frontier says it “believes the lawsuit is without merit,” and “will present a vigorous defense.”

  • FTC: Make Sure Your AI Algorithms Are Unbiased…Or Else

    FTC: Make Sure Your AI Algorithms Are Unbiased…Or Else

    The Federal Trade Commission (FTC) has sent a stark warning for companies to ensure their AI algorithms are unbiased…or else.

    AI is being adopted across a wide spectrum of industries. Unfortunately, studies repeatedly demonstrate the propensity for AI algorithms to be biased. In many cases, this is the result of the datasets used to train AIs not reflecting the necessary diversity.

    In a blog post, the FTC addresses this issue:

    Watch out for discriminatory outcomes. Every year, the FTC holds PrivacyCon, a showcase for cutting-edge developments in privacy, data security, and artificial intelligence. During PrivacyCon 2020, researchers presented work showing that algorithms developed for benign purposes like healthcare resource allocation and advertising actually resulted in racial bias. How can you reduce the risk of your company becoming the example of a business whose well-intentioned algorithm perpetuates racial inequity? It’s essential to test your algorithm – both before you use it and periodically after that – to make sure that it doesn’t discriminate on the basis of race, gender, or other protected class.

    The FTC also warns companies to be careful not to overpromise what their AI can do, such as advertising a product that delivers “100% unbiased hiring decisions,” yet was created with data that wasn’t truly diverse. The FTC advises companies to be transparent, use independent standards and be truthful about how they will use customer data.

    The FTC warns that companies failing to follow its advice will deal with the consequences:

    Hold yourself accountable – or be ready for the FTC to do it for you. As we’ve noted, it’s important to hold yourself accountable for your algorithm’s performance. Our recommendations for transparency and independence can help you do just that. But keep in mind that if you don’t hold yourself accountable, the FTC may do it for you. For example, if your algorithm results in credit discrimination against a protected class, you could find yourself facing a complaint alleging violations of the FTC Act and ECOA. Whether caused by a biased algorithm or by human misconduct of the more prosaic variety, the FTC takes allegations of credit discrimination very seriously, as its recent action against Bronx Honda demonstrates.

  • FTC Abandons Qualcomm Antitrust Case

    FTC Abandons Qualcomm Antitrust Case

    The Federal Trade Commission (FTC) has abandoned its antitrust case against Qualcomm, despite believing the company is guilty.

    Qualcomm has faced long-standing accusations of antitrust behavior, leading to multiple lawsuits. Apple famously engaged in a years-long court battle, before ultimately settling with the company. IBM similarly tried to enter the cellular modem market, before ultimately selling its modem business to Apple, citing what it believed was unfair competition from Qualcomm.

    In the initial court ruling, the FTC prevailed in its case, only to have that decision reversed on appeal. The FTC was originally planning on pursuing the case before the Supreme Court, but has now dropped it.

    “Given the significant headwinds facing the Commission in this matter, the FTC will not petition the Supreme Court to review the decision of the Court of Appeals for the Ninth Circuit in FTC v. Qualcomm,” said Acting Chairwoman Rebecca Kelly Slaughter. “The FTC’s staff did an exceptional job presenting the case, and I continue to believe that the district court’s conclusion that Qualcomm violated the antitrust laws was entirely correct and that the court of appeals erred in concluding otherwise. Now more than ever, the FTC and other law enforcement agencies need to boldly enforce the antitrust laws to guard against abusive behavior by dominant firms, including in high-technology markets and those that involve intellectual property. I am particularly concerned about the potential for anticompetitive or unfair behavior in the context of standard setting and the FTC will closely monitor conduct in this arena.”

    The announcement is good news for Qualcomm and bad news for its competitors, many of whose will face an uphill battle competing against it.

  • Amazon Stiffs Drivers $62 Million in Tips

    Amazon Stiffs Drivers $62 Million in Tips

    The Federal Trade Commission (FTC) has announced Amazon is settling to the tune of $61.7 million for tips it withheld from drivers.

    As part fo the Amazon Flex program, drivers were promised $18–25 per hour for making deliveries. In addition, ads recruiting Flex drivers routinely said: “You will receive 100% of the tips you earn while delivering with Amazon Flex.”

    Amazon also assured customers that any tips they gave would go straight to drivers. There’s only one problem: Amazon didn’t pay its drivers the tips from customers, pocketing nearly $62 million.

    “Rather than passing along 100 percent of customers’ tips to drivers, as it had promised to do, Amazon used the money itself,” said Daniel Kaufman, Acting Director of the FTC’s Bureau of Consumer Protection. “Our action today returns to drivers the tens of millions of dollars in tips that Amazon misappropriated, and requires Amazon to get drivers’ permission before changing its treatment of tips in the future.”

    “This theft did not go unnoticed by Amazon’s drivers, many of whom expressed anger and confusion to the company,” said FTC Commissioner Rohit Chopra. “But, rather than coming clean, Amazon took elaborate steps to mislead its drivers and conceal its theft, sending them canned responses that repeated the company’s lies. The complaint charges that Amazon executives chose not to alter the practice, instead viewing drivers’ complaints as a ‘PR risk,’ which they sought to contain through deception.”

    To make matters worse, in 2016, Amazon lowered the hourly rate they were paying drivers without notifying them. Instead, Amazon used the tips it had been withholding as a fund to maintain the $18-25 per hour rate, making drivers think they were receiving the same hourly rate.

    In essence, Amazon was ‘robbing Peter to pay Paul,’ stealing from drivers tips to cover for the fact that it had lowered drivers hourly rates without telling them. Amazon only stopped this behavior after it became aware of the FTC’s investigation in 2019.

    The $61.7 million settlement will be used by the FTC to compensate those drivers who were impacted. Amazon is also “prohibited from making any changes to how a driver’s tips are used as compensation without first obtaining the driver’s express informed consent.”

    For a company already accused of illegally firing workers for trying to organize unions, and using Pinkerton detectives to monitor workers and thwart unionization efforts, it’s little wonder that Amazon employees continue working to unionize.

    Amazon’s behavior in this matter is reprehensible, and represents a new low for corporate/worker relations.

  • Staples Wants to Buy Office Depot For $2.1 Billion

    Staples Wants to Buy Office Depot For $2.1 Billion

    Staples is once again offering to buy Office Depot, this time for $2.1 billion.

    Staples had previously tried to purchase its rival in 2015. At the time, the Federal Trade Commission (FTC) blocked the merger, saying the combined company would control too much of the market.

    According to CNN Business the company is determined to do whatever it takes to gain regulatory approval this time around. It has signaled it’s even willing to sell CompuCom, its IT management company, or sell its business-to-business unit.

    Staples is offering $2.1 billion, or $40 per share. This represents roughly a 60% premium over Office Depot’s current stock price, as of the time of writing. The translocation would be an all-cash deal, according to Staples.

  • FTC Demands Answers From Big Tech on Privacy

    FTC Demands Answers From Big Tech on Privacy

    The Federal Trade Commission (FTC) has issued orders to nine social media and video platforms, inquiring about their data practices.

    Big Tech is under more scrutiny than ever before, and privacy is a big focal point. Data breaches and mishandling of consumer data in recent years has resulted in individuals and officials being more privacy-conscious. As a result, there have been some instances of groundbreaking legislations, such as the EU’s GDPR and California’s CCPA/CPRA.

    It appears the FTC is increasing its own scrutiny of companies’ data practices, with an order to “Amazon.com, Inc., ByteDance Ltd., which operates the short video service TikTok, Discord Inc., Facebook, Inc., Reddit, Inc., Snap Inc., Twitter, Inc., WhatsApp Inc., and YouTube LLC.”

    The FTC is specifically looking to understand how these platforms “collect, use, track, estimate, or derive personal and demographic information.” In addition, the FTC wants to know how these platforms determine which ads and content are shown to users, how they handle user engagement and how children and teens are impacted.

    Some companies, such as Apple, Microsoft and Mozilla, have taken strong stands on privacy. The platforms covered by the FTC’s order, however, have based much of their business on collecting user information. In many cases, there has been a lack of transparency about what data is collected and how it is used.

    Hopefully the FTC’s inquiry is the first step toward stronger data protections for consumers.

  • Apple Working to Replace Qualcomm Internal Modems

    Apple Working to Replace Qualcomm Internal Modems

    Apple is working on the next step toward manufacturing independence, beginning work on a replacement for Qualcomm’s modems.

    Apple has had a troubled history with Qualcomm for years. Apple accused Qualcomm of charging unfair prices for its modems, and turned to Intel as an alternate source. Many critics believed Qualcomm had violated antitrust laws, prompting the Federal Trade Commission to file an antitrust case against the company.

    While Qualcomm lost the initial case, it ultimately prevailed on appeal. In the meantime, Intel was forced to exit the modem business, citing Qualcomm’s business practices as the reason. In the meantime, Apple settled its legal battle with Qualcomm and ended up buying Intel’s failed modem business.

    Last October, we covered a story that suggested Apple was using the purchased Intel modem business to develop its own line of components, with plans to begin using them as early as 2022.

    According to Bloomberg, Apple has now begun working on its own modem.

    “This year, we kicked off the development of our first internal cellular modem which will enable another key strategic transition,” said Johny Srouji, Apple’s senior vice president of hardware technologies, in a town hall meeting with Apple employees. “Long-term strategic investments like these are a critical part of enabling our products and making sure we have a rich pipeline of innovative technologies for our future.”

    The move follows Apple’s decision to ditch Intel in favor of its own custom silicon, based on ARM chips. Apple, more than almost any company in the tech industry, is well-known for integrating its hardware and software. Building its own modems is another critical piece of that strategy, and will likely give Apple the ability to innovate even more.