FTC
Latest
Daily Roundup: Taiwan fines Apple, LG HomeChat, Siri photo-tagging patent and more!
You might say the day is never really done in consumer technology news. Your workday, however, hopefully draws to a close at some point. This is the Daily Roundup on Engadget, a quick peek back at the top headlines for the past 24 hours -- all handpicked by the editors here at the site. Click on through the break, and enjoy.
Taiwanese FTC fines Apple for interfering in iPhone handset and contract pricing
Taiwan's Fair Trade Commission has ruled that Apple's been naughty rather than nice this holiday week, fining it for 20 million Taiwan dollars (around $670,000) after it specified pricing to iPhone carriers. Once Apple sells distribution rights to an iPhone stockist, it has no right to dictate how much carriers and companies sell the devices for. According to the FTC's statement: "Through the email correspondence between Apple and these three telecom companies we discovered the companies submit their pricing plans to Apple to be approved or confirmed before the products hit the market." The iPhone maker will be able to appeal the ruling, although according to the WSJ, it could face a fine of up to $50 million Taiwan dollars if it doesn't comply.
FTC will not challenge Google's $1 billion Waze acquisition
When Google acquired Waze back in June, the Federal Trade Commission decided to investigate the deal to see if it violated antitrust regulations, and today, it looks like Mountain View is in the clear. According to Bloomberg's sources (unnamed people "familiar with the matter," naturally), the FTC will not interfere with the acquisition, as the $1 billion purchase isn't seen as an aggressive act designed to stifle competition. The review's outcome is indeed welcome news at Google, as the company can now proceed with integrating Waze's crowd-sourced traffic and mapping capabilities with its own services. By this point, antitrust challenges must be awfully familiar to the folks at Google, but we're pretty sure that winning them never gets old.
The FTC wants your thoughts on proposed patent troll investigation
Here's a question. Forced to decide, would you rather have a patent troll breathing down your neck, or cuddle up with an entity just as ghoulish that's living under a bridge? The FTC wants your thoughts on the matter, even if its description isn't quite so... colorful. The agency is putting out a call for public commentary on its proposed investigation of patent assertion entities, which have come under federal scrutiny as of late. Key to the proposal, the FTC would request information from 25 patent trolls to learn non-public information such as their corporate structure, patent holdings, means of acquiring patents, the cost of enforcing them and the earnings that the trolls generate. Accordingly, the agency hopes to "develop a better understanding of how they impact innovation and competition." For comparison sake, the FTC also proposes an information request from approximately 15 companies in the wireless communication sector, which would include manufacturers and other licensing entities. You're more than welcome to answer the bridge question in the comments, but if you want to contact the FTC directly, you'll find everything you need after the break. [Image credit: Tristan Schmurr / Flickr]
FTC finalizes settlement details with Google over anti-competitive issues
Google hasn't even had its breakfast yet, but that hasn't stopped the Federal Trade Commission approving a modified final order settling the accusations that Mountain View's business practices (involving Motorola) stifled competition among electronics manufacturers. Most of these changes involved the arbitration process used to resolve disputes over FRAND terms between companies. The final document means Google must license its standard-essential patents on "fair, reasonable, and non-discriminatory or FRAND terms." According to the FTC, these patents were necessary in the process of manufacturing smartphones, laptops, tablets and gaming consoles and that Google had pursued (or threatened to pursue) injunctions against companies that required said patents. Read the full order over at the FTC -- we've linked to it at the source.
South Korea's FTC finds Google not guilty of antitrust measures
Google has been acquitted of the anti-competitive allegations brought to it more than two years ago by South Korean search operators NHN and Daum Communications, the Yonhap News reported today. Back in April 2011, the two firms accused the Mountain View company of having an unfair advantage by making its own search engine the default on the Android operating system. After a couple of raids and a lengthy review process, the local Fair Trade Commission has finally decided that Google doesn't hurt NHN's or Daum's competitive chances at all. FTC officials said that both companies presently enjoy a healthy chunk of the domestic search engine market -- NHN's portal maintains a good 70 percent share, for example -- and that users could easily download NHN and Daum apps onto their phones as alternatives. Chalk this one up as at least one victory in the search giant's seemingly never-ending battle with authorities.
FTC approves settlement with HTC over logging software
In late February the FTC and HTC came to a tentative settlement over the manufacturer's poorly secured software, which included HTC Loggers. The commission voted three to none, with one commissioner recused, to require the company to patch the vulnerabilities and develop a security program that would undergo an independent assessment every other year for the next two decades. The American arm of HTC will also be watched closely regarding its security and consumer privacy claims. Any statements that are found to be false or misleading could lead to fines of up to $16,000 per violation. With the public comment period closed, the FTC has cleared the last hurdle to enforcing the settlement. Let's just hope others are taking heed, last thing we need is second round of electronic privacy scandals. Oh, wait...
Google's Waze acquisition catches FTC's investigative eyes
Google officially acquired the crowd-sourced mapping and traffic app Waze earlier this month, but the $1.1 billion deal is hitting a last-minute jam. The search giant has confirmed with Reuters that the Federal Trade Commission recently opened an antitrust investigation into the purchase, even though Waze will mostly operate independently. According to the New York Post, Google didn't file a review with the FTC because Waze makes less than $70 million annually, which is below the bar for an "automatic review." Reuters notes that the FTC can put a magnifying glass to any closed deals at its discretion, namely to ensure there was no prior intent simply to stifle competition. These latest happenings might make for a temporary roadblock between the integration of certain data from Waze and Google, notes the Post -- assuming the deal indeed gets an okay from The Man. Either way, we'd imagine concessions will be made if needed, as Google's no stranger to these types of proceedings.
FTC planning to take on patent trolls, hopes to reduce frivolous lawsuits
Sick of endless patent wars yet? According to the New York Times, so is the Federal Trade Commission. Referencing the usual persons briefed on the matter, the NYT reports that FTC chairwoman Edith Ramirez is preparing to propose an inquiry that will put patent-assertion entities -- companies that exist solely to buy and collect royalties on patents -- under federal scrutiny. If approved, patent trolls that catch the FTC's attention will need to detail how they operate and if their legal proceeds pay out to the original patent owner. The chairwoman is expected to explain the proposal in more detail at a patent law workshop later this week. According to the NYT, Ramirez doesn't have any specific company in mind, but aims to investigate companies that might hamper innovation. With any luck, the inquiry will help curb spurious litigation and rampant patent trolling -- something most of us can probably get behind.
FTC reveals $50,000 Robocall Challenge winners, alarms Rachel from card services (video)
The FTC has managed to find two non-violent solutions to its Robocall Challenge, aimed at blocking auto-dialing telemarketers, thanks to winners Serdar Danis and Aaron Foss. The pair, who will receive $25,000 each, came up with variations on a system that would pre-screen calls before ringing your phone while allowing the FTC to blacklist known scammers at the same time. Google took a non-cash prize in a separate category with a scheme that would foil caller-ID spoofing often used by boiler rooms like the notorious "Rachel from card services" outfit, which has over a hundred numeric aliases. The FTC receives a whopping 200,000 complaints per month about the nuisance and screened nearly 800 submissions (see the More Coverage link), many of which show a certain, shall we say, passion for the topic. Check winner Foss' video submission after the break.
FTC: your mobile and social media ads still need disclosures*
We've all seen online banner ads with lengthy disclosures and other warnings that what we see isn't necessarily what we'll get. Think that the tight spaces of a smartphone screen or a 140-character tweet are exempt from the rules? Think again: the FTC just updated its guidelines to make clear that any "constrained" ads on mobile platforms or social networks still have to reveal their true purposes and show realistic figures. Marketers can't use multiple posts, pop-ups or other tricks to tuck the disclaimers away, either. The warning won't prevent your favorite celebrity from suddenly posting out of character about diet pills, but at least you'll know the difference between a pure enthusiast and someone who has some skin in the game. *: This is a news post, not an ad. While we're at it, though, we'd really love it if you swung by Engadget Expand.
FTC report on mobile payments raises concerns about 'cramming' on carrier billing
The FTC held a workshop on mobile payments last year, and it's now followed that up with a full report that raises a few concerns and offers some recommendations for the industry. Those include the expected issues of privacy and security, which the FTC encourages companies to step up their efforts on, as well as the issue of billing disputes. On that latter front, the FTC draws attention to one problem in particular known as "cramming," in which companies or individuals place fraudulent charges on a user's cellphone bill. As the FTC notes in the report, "there are no federal statutory protections governing consumer disputes about fraudulent or unauthorized charges placed on mobile carrier bills," and it further adds in a blog post that "the way mobile carrier billing works makes this a challenging problem to solve." It goes on to outline some consumer protection measures it says all carriers should adopt, and notes that it will further address the issue at a roundtable on May 8th. You can find the full report at the source link.
HTC settles with the FTC over claims of insecurities in logging software
Much of the firestorm surrounding remote phone diagnostics in late 2011 ultimately enveloped Carrier IQ and the providers that used it, but HTC was also scorched by accusations that its phones' software flaws (including in HTC Loggers) made privacy breaches possible. The FTC went so far as to level charges against the company for allegedly not doing enough to secure software. That saga may be winding to a close now that HTC's American division has agreed to settle the whole affair. The smartphone designer has to do more than just deliver patches, which it already has -- it's now required to run a "comprehensive" security program to weed out flaws in advance, and it will be the subject of outside assessments every other year for the next 20 years. As tough as those conditions may seem, they're easier than dealing with fines or stiffer penalties. They'll hopefully prevent repeats of any privacy scares as well, even if the real-world risk has been slight.
FTC issues mobile privacy guidelines, values clarity and Do Not Track
The FTC has made online privacy one of its bigger missions as of late, going so far as to develop a full privacy framework that it hopes others will follow. Its counsel is extending to the mobile world with a new report full of recommendations for privacy inside apps, ads and mobile operating systems. Some of the advice includes decidedly common sense measures, such as asking for privacy permissions at a relevant moment or requiring clear disclosures as to what info leaves the device. Other tips require more exertion: the FTC would like to see dedicated privacy dashboards inside of apps, privacy policies that are visible directly from app stores and a simple Do Not Track option baked into both mobile browsers as well as ads. The suggestions aren't binding, and they're only partly useful when we've already seen features like Do Not Track find their way into newer platforms like iOS 6 and Windows Phone 8. Still, the report is potentially a worthwhile read for developers -- especially those that want to stay on the FTC's good side.
Path settles with the FTC over contact privacy violations
Path was quick to mend its ways after a dust-up over collecting contact information from iOS users without their consent, but it wasn't quick enough to avoid FTC claims of violating the Children's Online Privacy Protection Act. All that is just water under the bridge in the wake of a new settlement. As compensation for collecting contact information from 3,000 children without their parents' permission, Path has agreed to both pay a $800,000 fee and implement a privacy plan that will require audits from an outside party every other year. Consider it a lesson learned for Path and other mobile app firms, which now know that scraping personal data may have unintended consequences.
Path reaches a settlement with the FTC over COPPA violations
Path is paying handsomely for allowing minors under the age of 13 years old to sign up for its service. According to a statement released Friday, Path has settled with the FTC over an alleged violation of the Children's Online Privacy Protections Act (COPPA) involving 3,000 underage accounts. The social network has agreed to pay an US$8,000 fine. It will also establish a privacy program and submit to regular privacy assessments for the next 20 years. This COPPA violation was discovered as part of a bigger investigation following the revelation that Path uploaded iPhone contact information to the service's database without permission. [Via GigaOM]
Editorial: FTC and Google -- why the right decision feels so wrong to so many people
The Federal Trade Commission's absolution of Google after a lengthy investigation into alleged abuse of market power induced expected reactions from the principle players. Microsoft was infuriated. Google was triumphant and exuberantly overstated the FTC's exit. ("Google's services are good for users and good for competition.") Lawyers and lobbyists bunched on both sides of the fence to issue scathing or praiseful statements. The court of common opinion is now divided between nodding approval and eviscerating censure. The comment hate being hurled at Google is partly derived from general monopoly-busting sentiment, but there is also a stuck-in-the-past misunderstanding of what Google has become.
Google will license 'essential' Motorola patents, ending FTC probe
Google has reached a deal with the Federal Trade Commission to bring the body's 19-month antitrust investigation into the search giant to a close, according to Apple Insider. Part of the settlement hinged on Google's agreement to license certain standard-essential patents (SEPs) it acquired during its purchase of Motorola Mobility to its competitors in the mobile market, including Apple. The company will still need to work out terms and fees with others wanting to utilize the patents, but can't be unfair, unreasonable or discriminatory in the process. The other aspect of the FTC's probe involved concern that Google was promoting its own content and services over competitors' in search results. The commission concluded that Google hadn't been involved in the practice, despite claims by its search rivals such as Microsoft. It did, however, make the company agree not to reprint content from other sites, such as Yelp, in ways that could confuse users into thinking it was owned or created by Google.
Google pledges to change its ways to assuage FTC anti-competitive concerns
Google's drawn the ire of the Federal Trade Commission for myriad reasons over the past year, and so the FTC began a formal investigation into those transgressions. Today, Chairman Jon Leibowitz announced that the investigation has concluded with a settlement after the FTC found several issues with the way Big G does business. Head on past the break for a full rundown of the FTC's findings.
FTC introduces changes to Children's Online Privacy Protection Act, parental permission now required to collect information
The Children's Online Privacy Protection Act (or COPPA) was first introduced back in 1998, but you don't have to look very far to realize the internet has changed quite a bit since then. Today, the FTC is attempting to address some of those changes by introducing the first major revision to the act. Among the biggest changes is that operators of websites or online services will now have to seek permission directly from parents in order to collect information from anyone under the age of 13 when they have "actual knowledge that they are collecting personal information through a child-directed website or online service." In another change related to that, the FTC has also clarified that "personal information" now includes geolocation data in addition to photos and videos, and it says it has closed a loophole that allowed apps and websites to collection information through plug-ins. The agency will not, however, hold companies like Apple and Google liable for apps from other companies which attempt to collection information from children, and it will permit "contextual advertising" to children without the need for parental consent. You can find the FTC's full announcement of the changes after the break.
