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| Welcome to Inside Tech! Here are today's top stories: - The FTC and 17 states have sued Amazon, claiming the online marketplace abuses its power.
- The SAG-AFTRA union has authorized a strike against video game companies.
- Meta plans to launch chatbots with personalities on Facebook and Instagram.
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| 1 | The U.S. government and 17 states have sued Amazon, accusing the e-commerce giant of illegally abusing its market dominance to push out rivals. The long-anticipated antitrust lawsuit, led by the Federal Trade Commission (FTC) and state attorneys general, accuses Amazon of treating third-party sellers unfairly and manipulating prices, harming competition and consumers. More: - The lawsuit, filed in a Washington district court on Tuesday, stems from a years-long investigation and represents one of the most substantial legal challenges against the company.
- The FTC and states claim Amazon violated antitrust laws through anti-discounting measures that have punished merchants for offering lower prices elsewhere.
- According to their complaint, Amazon effectively forces merchants to use its logistics services and set the lowest prices on its platform, curbing sellers' ability to compete on other platforms.
- The lawsuit alleges that Amazon favors its own products in search results.
Zoom out: - The FTC is now seeking a permanent injunction to bar Amazon from "engaging in its unlawful conduct," according to FTC Chair Lina M. Khan.
- In response, Amazon's general counsel and head of public policy, David Zapolsky, said the FTC is "wrong on the facts and the law."
- Zapolsky argued that Amazon's practices have spurred competition and innovation and led to "greater selection, lower prices, and faster delivery speeds" for customers.
Q: In your opinion, has Amazon's growth and market dominance benefitted consumers, or do you think the drawbacks outweigh any advantages? Join the conversation here. |     | |
| 2 | | SAG-AFTRA members have voted to authorize a strike for video game performers ahead of the latest contract negotiations with gaming companies. The move could pressure major video game companies, including Activision Blizzard, Electronic Arts, and Epic Games, to address SAG-AFTRA's remaining "critical issues," including protections for actors against artificial intelligence. More: - The strike authorization, which received 98.32% support, doesn't automatically initiate a strike but could boost negotiation leverage.
- The SAG-AFTRA union, which represents movie and TV actors as well, is also striking against Hollywood studios.
- The video game actors are seeking the same wage increase as film and TV workers.
- In both cases, discussions have centered on the use of AI to recreate actors' images and voices.
- As games are computer-generated, the risk of AI replacement is high for video game performers, said Ray Rodriguez, SAG-AFTRA's chief contracts officer.
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| 3 | | Threads, Instagram's competitor to Elon Musk's X, is struggling to retain users after its July launch, according to the latest data from Insider Intelligence. 
What the numbers say: According to Insider Intelligence, Threads is projected to have 23.7 million monthly users in the U.S. by the end of 2023, far fewer than Facebook, Instagram, and TikTok, which are expected to reach 177.9 million, 135.2 million, and 102.3 million users. Meanwhile, X is forecasted to reach 56.1 million monthly U.S. users but could decline to 47 million by 2025 as more people leave the platform. Insider expects Threads to have 30 million users by 2025. The bigger picture: Threads gained over 100 million signups shortly after launch, making it the fastest-growing app on record. However, daily active users have since dropped precipitously. While Threads got an initial boost from Twitter's mistakes, it shouldn't count solely on X users defecting for future growth, according to Insider Intelligence's principal analyst Jasmine Enberg. However, Meta could have a "clearer avenue to monetize Threads" if Musk decides to introduce a monthly subscription fee for all X users, which could also drive more advertiser interest in Threads. To become a major player in the social media market, Enberg emphasized that Threads needs an identity beyond being an Instagram extension or X alternative. | | | |
| 4 | | France has received a software update from Apple designed to address radiation concerns for the iPhone 12. French authorities are currently evaluating the update, which may soon be available to iPhone 12 users in the country. More: - France's regulator recently ordered Apple to halt sales of the iPhone 12 after testing showed that the device emitted excessive electromagnetic waves when in contact with the body.
- According to Apple, the finding was due to a specific French testing protocol, and is not a safety concern.
- The company still pledged to issue a new software update to fix the problem.
- France's regulator plans to test the update, which it expects will "bring the model in line with the European standards applied in France" and allow Apple to resume sales.
Zoom out: - France's move raised concerns in other European nations, including Belgium, which also requested the software upgrade.
- However, Belgium's regulator told Reuters that the update is currently limited to France.
- Italy is also awaiting French deliberations on the update before making a decision.
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| 5 | | Meta plans to launch personality-driven AI chatbots on its platforms, with the rollout expected as soon as next week, per The Wall Street Journal. The "Gen AI Personas" are set to launch across Instagram, Facebook, and WhatsApp, targeting Gen Z users. More: - Meta's chatbots reportedly feature unique personalities, including "Bob the Robot," inspired by Futurama's sassy Bender character.
- Another bot, "Alvin the Alien," supposedly seeks personal information from users to better "understand humans."
- Other bots could be geared toward productivity, including coding assistance.
- Meta plans to develop "dozens" of the bots and is working on a tool to allow celebrities to create their own chatbots for fan interactions, according to the WSJ.
Zoom out: - The company plans to announce the bots at its Meta Connect event on Sept. 27-28.
- Meta is also expected to show off its Meta Quest 3 VR headset and second-generation Ray-Ban Stories smart glasses.
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| 6 | | Blue Origin, Jeff Bezos' space company, is replacing its CEO Bob Smith with Amazon hardware chief Dave Limp. Limp, Amazon's senior VP of devices and services, has managed the development and launch of products including the Echo, Alexa, and Amazon's Fire tablets. More: - After 13.5 years at Amazon, Limp announced in August that he would be leaving the company.
- However, Bezos has now tapped Limp to replace Smith, who resigned and is leaving Blue Origin in early December.
- Limp has experience in the space industry, overseeing Amazon's Kuiper satellite broadband project.
- Smith will now remain at Blue Origin until January 2 to assist with the transition.
Zoom out: - Blue Origin has been developing the New Shepard rocket for space tourism, which hasn't flown since a failed uncrewed mission in September 2022.
- The company's other projects include New Glenn, a powerful rocket for satellite launch contracts, and a future moon lander for NASA's Artemis lunar exploration program.
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Term of the Day Influencer marketing: Influencer marketing utilizes social media personalities, bloggers, vloggers, and other content creators to promote a brand or product. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
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 | AI and technology writer | | Beth is the writer of Inside's AI and Tech newsletters, with a career spanning journalism and editing since 2007. She has written for publications including The Arizona Republic, USA Today, and others, and authored a book on the solar industry in 2016. Reach out to her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Eduardo Garcia | |
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