anti-competitive
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Italy is launching an antitrust investigation into Amazon and Apple
Italian officials want to know whether Amazon and Apple reached an antitrust agreement.
Snap's 'Project Voldemort' dossier detailed Facebook's copycat moves
Facebook hasn't been subtle about duping Snapchat features and otherwise undermining its competitor. Don't think Snap just shrugged its shoulders and focused on adding and opening up features, though -- apparently, it's been taking notes. Wall Street Journal sources claim Snap has documented Facebook's alleged anti-competitive moves in a collection of files nicknamed 'Project Voldemort.' Clearly, Snap sees Facebook as a villain worthy of taking on Harry Potter. Many of the perceived offenses are well-known, such as copying Stories and preventing people from linking to Snapchat profiles, but the Voldemort documents also accuse Facebook of intentionally suppressing Snapchat-related content.
Facebook’s Libra Association is being investigated by EU antitrust regulators
Facebook's Libra cryptocurrency project is being probed again, this time by European Union antitrust regulators. The European Commission said it is "currently investigating potential anti-competitive behavior," related to the Libra Association, Bloomberg reports. In a questionnaire sent out this month, the EU authority expressed concerns that Libra would unfairly shut out rivals.
Amazon faces record fine from French fraud watchdog
French President Emmanuel Macron recently helped open a new Amazon distribution center in the north of France, but now the retail giant is in the government's doghouse. Economic Minister Bruno Le Maire has filed a complaint against Amazon for abusing its suppliers with one-sided contract clauses, reports Le Parisien. It's seeking a record €10 million fine, "a strong and unprecedented action," the ministry said in a statement.
Amazon sidesteps French ban on free shipping by charging a penny
France's "anti-Amazon" law prohibiting free shipping and discounts has now gone into effect, and Amazon quickly announced that it had conformed -- technically. Though it no longer ships books for free, it only charges 0.01 euro, conforming to the letter if not the spirit of the law (French Prime members still receive free book shipping). It's also no longer allowed to give a 5 percent discount on books, the maximum allowed by French law. Despite Amazon's ceremonial cent for shipping, bricks-and-mortar competitors in the country now have a big leg-up. They're exempt from the law and can still offer 5 percent discounts and free delivery -- even those with a large online presence like FNAC, a French book and electronics giant. Meanwhile, Amazon could still appeal the decision to EU courts, who reportedly see the French decision as anti-competitive. [Image credit: François Guillot/AFP/Getty Images]
Samsung buys 10 percent stake in rival phone maker Pantech
Hang around these pages long enough and you're bound to come across Pantech, the South Korean purveyor of everything from giant 1080p handsets down to... giant 720p handsets. Samsung has noticed this rising star too and, so says Yonhap News, has now made a $50 million investment in the smaller company in return for a 10 percent stake. Implicit in that is that the Korean government has allowed Samsung's ever-expanding influence to infiltrate a potential rival, since Pantech is now the No. 3 phone maker in that country and only Qualcomm and a state-run bank possess larger stakes than Samsung's. As a result, the acquisition could have an anti-competitive aura to it -- but then, Pantech has actually been struggling of late, not least with large debts, and it has relied on big backers to bail it out.
Court upholds EU antitrust decision against Microsoft, reduces fine slightly to $1.07 billion
Europe's second-highest court has finally denied Microsoft's 2008 appeal of its 899 million euro ($1.35 billion) EU antitrust fine, while reducing the award to 860 million euros ($1.07 billion). If you can't remember that far back, Redmond was hit with the penalty for delaying information about its operating system to rival companies, impeding their progress in competing with the software giant. It's not known if a further appeal is possible, but we suspect that the company won't give up if it's got any options -- it's not exactly pocket change we're talking about.
WD grits teeth, hands over the goodies to Toshiba to regulators and dentists' delight
Western Digital has completed its FTC-ordered handover of assets to Toshiba in order to buy Hitachi's HDD business Viviti. The wedding of the year was halted when regulators, citing monopoly concerns, demanded WD hand over a bundle of IP, R&D materials and production line gear to Tosh. In exchange, Western Digital will take over Toshiba Storage Device (Thailand), the arm of the company that was devastated in the recent flooding. It's WD's aim to integrate the remaining assets into its own local operations -- you can read the official line in the land of pure imagination below.
Antitrust suit carries on against Intel, Apple, Google and others
They can hope and pray all that they want, but Google, Intel, Apple, Adobe, Intuit, Pixar and Lucasfilm will soon be facing some serious accusations in a courtroom under the Sherman Antitrust Act and California's Cartwright Act. After years of trying to dodge legal action over an "informal agreement" to not pinch each others employees, and an effort to have the case dismissed, the seven defendants will have to stand trial as ordered by District Judge Lucy Koh in San Jose, California. In her decision Koh said, not only was there evidence that these agreements were made at the highest levels of the company but, that six such deals were struck in secret in such a short time frame "suggests that these agreements resulted from collusion." There's still time for yet another deal to be struck, however, this time between the defendants and the DOJ. Otherwise it looks like all seven will have to stand trial in June of 2013.
FTC: Western Digital and Hitachi must give assets and IP rights to Toshiba (update: sale approved)
Thought everything was looking rosy for the hard drive hitch of the year? Well, it looks like Federal Trade Commission reckons the union of Hitachi and Western Digital isn't quite there just yet, ordering that the new company would have to shed some of its assets to Toshiba. The FTC wants to ensure a competitive climate in the 3.5-inch hard drive market and avoid Western Digital and Seagate -- the two largest HDD manufacturers -- carving up the whole sector between them. According to the FTC's proposals, Toshiba has to receive the production assets needed to equal Hitachi's current HDD market share, alongside access to Western Digital's research and development resources and licenses to its intellectual property. Regulators had previously stated that WD could expect to sell on some of its production assets in order to get the tie-up okayed. Western Digital now has 15 days to hand over these assets to Toshiba -- who, presumably, aren't complaining -- once the deal with Hitachi is finally inked. Update: Looks like all the FTC wrangling was worth it, because WD and Hitachi have announced that all the necessary approvals have been obtained and the deal is due to close on March 8th. PR's after the break.
DOJ investigation yields fresh evidence against Google, Apple in antitrust lawsuit
Back in 2009, a small controversy began swirling around Google and Apple, amid allegations that the two companies had struck an informal agreement to not poach each other's employees. The Department of Justice launched an investigation into the matter in 2010, but details of the case were only made public for the first time yesterday. TechCrunch was the first to sift through the documents, and has uncovered some ostensibly incriminating evidence against not only Google and Apple, but Pixar, Lucasfilm, Adobe, Intel, and Intuit, as well. According to filings from the US District Court for the Northern District of California, these companies did indeed enter "no poach" agreements with each other, and agreed to refrain from engaging in bidding wars. The documents also suggest that they collectively sought to limit their employees' power to negotiate for higher salaries. Some of the most apparently damning evidence derives from archived e-mails, including one that Adobe CEO Bruce Chizen penned to Steve Jobs in May 2005. In the message, sent under the subject "Recruitment of Apple Employees," Adobe's SVP of human resources explains that "Bruce and Steve Jobs have an agreement that we are not to solicit ANY Apple employees, and vice versa." Pixar's Lori McAdams expressed similar sentiments in an internal e-mail from 2007, writing: "I just got off the phone with Danielle Lambert [of Apple], and we agreed that effective now, we'll follow a Gentleman's agreement with Apple that is similar to our Lucasfilm agreement." This would suggest, as the DOJ writes, that there's "strong evidence that the companies knew about the other express agreements, patterned their own agreements off of them, and operated them concurrently with the others to accomplish the same objective." The DOJ announced in September that it had reached settlements with the six implicated firms, but a class-action lawsuit is scheduled to get underway next week in San Jose.
AT&T asks court to dismiss lawsuits filed by Sprint and C Spire Wireless
Well, look at Ma Bell now, wishing it'd all just go away. Tied up in lawsuits, the company has filed motions to dismiss the two complaints brought by Sprint and C Spire Wireless (formerly Cellular South), which seek to block AT&T's acquisition of T-Mobile. In the filings, it's argued that the two providers represent their own interests, rather than that of the public. AT&T further reveals that C Spire had pursued private negotiations prior to the lawsuit, where the regional provider agreed to support the merger "if AT&T would agree not to engage in facilities-based competition in Mississippi." Ma Bell goes on to state, "This inappropriate proposal confirms that what Cellular South fears is competition, not lack of competition." Given the latest maneuver (which smacks heavily of PR spin), there's no doubt that lawyers for Sprint and C Spire will have a bit of homework for the weekend.
Cellular South files antitrust lawsuit against AT&T over proposed T-Mobile takeover
Sprint and Uncle Sam aren't the only ones taking issue with AT&T's proposed acquisition of T-Mobile, because Cellular South has a bone to pick, as well. Yesterday, the provider filed a lawsuit against AT&T in a DC federal court, charging that its $39 billion merger with T-Mobile would violate US antitrust laws. "The merger of AT&T and T-Mobile is anti-competitive, and will result in consumers facing higher prices, less innovation, fewer choices and reduced competition," Cellular South said in a complaint. The company went on to argue that legal evaluation of the merger must incorporate the perspectives of smaller, regional carriers who, like Cellular South, will "find it harder to secure both wireless devices at competitive prices and times and nationwide roaming." An AT&T spokesman declined to comment on the case, but you can find more details about it at the source link below, or in the full press release, after the break.
Google's South Korean offices raided over alleged antitrust violations
Google's South Korea offices have been raided once again -- this time, over alleged antitrust violations. According to the Wall Street Journal, the Korean Fair Trade Commission (KFTC) stormed Google's Seoul offices on Tuesday, amid claims that the company unfairly stifles competition by making its search engine the default option on Android handsets. South Korea's largest mobile search operators, NHN and Daum Communications, filed a complaint with the KFTC in April, claiming that Android is "systematically designed" to discourage users from switching to different portals, and that Google excludes competitors by delaying OS certification for phone manufacturers that attempt to pre-load devices with other search engines. Similar charges, as you may recall, fueled an FTC investigation in the US, where anti-competitive allegations have been flying around for a few months, now. Google neither confirmed nor denied that yesterday's raid took place, but a spokesperson said the company would "work with the KFTC to address any questions they may have about our business," adding that its OS does "not require carriers or manufacturers to include Google Search or Google applications on Android-powered devices."
Google to face €295 million French lawsuit over alleged anti-competitive practices
Google's legal woes are piling up in a hurry. French search engine 1PlusV is suing El Goog over alleged anti-competitive practices, less than a week after the Federal Trade Commission opened a formal inquiry into similar accusations levied stateside. The suit, set to be filed in a Paris court this week, claims that Google uses its market dominance to bury rival search results while unfairly promoting those for its own services. According to 1PlusV, Google "black-listed" 30 of its vertical search engines between 2007 and 2010, making it difficult for the firm to compete. The company is also complaining about having to adopt Mountain View's technology in order to use AdSense and, in total, is seeking €295 million (about $418 million) in damages -- the largest damage claim Google has ever faced in Europe. 1PlusV operates the legal search group EJustice.fr and, along with Microsoft, helped spur an EU antitrust probe against Google last year. The company says its forthcoming lawsuit represents the "logical" next step in its ongoing antitrust crusade, while Google issued a brief statement, saying it "look[s] forward to explaining this."
Google to face formal EU antitrust investigation over unfair downranking of search competitors
Way back in February, the European Union announced its intention to look into allegations made against Google that the search leader wasn't ranking its competitors fairly in the results it delivered. Well, that fact-finding mission seems to have unearthed at least some hint of impropriety on Google's part, as it's now shed the "preliminary" label and has become a full-on antitrust probe. The original complaints came from EJustice.fr, Foundem.co.uk, and Microsoft's price comparison service Ciao, and they're still the basis of the investigation, though secondary issues, such as Google's conditions for advertisers and the way it tracks ad campaign data, will also be looked at. Let's not forget, however, that we're still dealing with allegations here, and it's going to be quite tricky to show any misdoing without delving into Google's famed algorithms and internal practices -- then again, maybe that's exactly what Mountain View's competitors are after. Update: Google has responded to the news on its Public Policy Blog.
Regulators perturbed by Comcast's executive reshuffling, NBC Universal takeover to blame
Hold your horses, Bubsy. While it looked like there were but a few Is to dot and Ts to cross before Comcast's takeover of NBC Universal was official, folks in high places are now shaking their heads at a recent decision by the carrier. As the story goes, Comcast and NBC Universal are still in talks with the government over the proposed takeover, and it seems that a few wires were crossed in recent days; Comcast decided to announce a new management slate for NBC Universal just a few days ago, despite the fact that the takeover hasn't actually been green-lit. According to an inside report over at The New York Times, one unnamed official in Washington had this to say: "For a deal this large, and one that hasn't been approved, Comcast's behavior is presumptuous and arrogant." Of course, it's not like this trigger-pulling in and of itself is reason for the whole deal to collapse, but it certainly won't make things any easier on either company. So much for taking on those new roles (and accompanying raises) prior to Turkey Day, huh?
Apple, Adobe, Google, Intel Intuit and Pixar: now free to cold call each other's employees
Attaboy, DoJ! Out of (almost) nowhere, the United States Department of Justice announced today that it was requiring six well-known technology outfits to stop entering into "anticompetitive employee solicitation agreements," and we're guessing you will have heard just a few of these names: Adobe, Apple, Google, Intel, Intuit and Pixar. As the story goes, these six companies were all mixed up (but not all together, mind you) in agreements that forbid each other from cold calling employees from a rival firm in order to offer them a different job. According to the DoJ, those arrangements acted as a "significant form of competition to attract highly skilled employees," and it has now filed a civil antitrust complaint today along with a proposed settlement that, "if approved by the court, would resolve the lawsuit." We're also told that some of the agreements were put into place as early as 2005, and they were "formed and actively managed by senior executives of these companies." Yikes. Hit the source link for the full report, and feel free to call back that "Unknown" caller that keeps hitting you up on your Adobe line -- it's probably Pixar with a seven-figure offer.
Skyhook sues Google for business interference and patent infringement
You might not know the company by name but you've almost certainly taken advantage of Skyhook's WiFi location-based services if you're a smartphone nerd. And let's face it, as an Engadget reader, you are. Now the company is suing Google for anti-competitive practices and patent infringement claiming that the ad giant used its control over Android to "force device manufacturers" to not only integrate Google's location technology instead of Skyhook's "superior end user experience," but also terminate contract obligations with Skyhook where they existed. Specifically, Skyhook says that Google wielded its power against handset manufacturers by "threatening directly or indirectly to deny timely and equal access to evolving versions of the Android operating system and other Google mobile applications." Boston-based Skyhook filed two lawsuits after negotiations with Google broke down, a business interference lawsuit filed in the Massachusetts Superior Court and a patent infringement lawsuit filed in the U.S. District Court of Massachusetts. According to Skyhook CEO Ted Morgan, "The message that Android is open is certainly not entirely true. Devices makers can license technology from other companies and then not be able to deploy it." Meow.
EU expected to rule against Intel in AMD antitrust case: Microsoft points, afraid to laugh
There are many tried and true methods for beating your competition in the free-market. Product innovation seems to work as does a proprietary ecosystem of peripherals, media, and services that keep customers locked-in for life. Or you can take Intel's approach: pay computer makers and retailers "to postpone or cancel" products containing CPUs from AMD, Intel's chief rival. That's the allegation it faces in the EU which, according to Reuters, has completed its antitrust investigation and is preparing to announce its decision on Wednesday. According to Reuters' sources, the European Commission will fine Intel for the violations discovered over the last eight years and order changes to Intel's business practices. It remains to be seen if the related fine exceeds the $655 million levied against Microsoft in 2004. But given the EU's distaste for anti-competitive practices, we're not expecting Intel to get off easy -- self-proclaimed "rock star" status or not.
