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Welcome to the latest Tech newsletter! Here are today's top stories: - The DOJ's landmark antitrust trial against Google begins Tuesday.
- Uber may be working on a TaskRabbit-like service.
- Embracer Group is seeking to sell Gearbox, the maker of "Borderlands."
If you find this newsletter useful, please share it with your friends and colleagues. Thank you! Beth p/beth-duckett | |
1 | The U.S. Justice Department's landmark antitrust trial against Google, accusing the company of monopolizing online search, begins in a Washington district court on Tuesday. The trial, the first to focus on a tech monopoly since the case against Microsoft over two decades ago, focuses on Google's alleged anti-competitive practices related to its search engine dominance. More: - The case, filed by the Justice Department in 2020, is the first brought by the U.S. government against Google to go to trial.
- The trial, expected to last 10 weeks, poses a major challenge to Big Tech's dominance and could establish a precedent in the fight against industry monopolies.
- The Justice Department and state attorneys general will argue that Google breached anti-monopoly laws by securing exclusive agreements with internet browsers and phone manufacturers — such as Apple, Mozilla, and Samsung — to make its search engine the default choice on their products, throttling competition.
- The case also accuses Google of requiring Android partners to preinstall Gmail and other apps, which Google denies.
Zoom out: - Google maintains that its partners choose its search engine based on quality and consumer preferences.
- Potential outcomes could include financial penalties or conduct mandates, but breaking up the company seems unlikely.
Q: Looking at the broader picture, how do you think this trial could impact the future of the tech industry? Join the conversation here. | | |
2 | Uber is reportedly developing a service that would allow users to hire people for various tasks, similar to TaskRabbit. Uber's potential venture into gig work coincides with a growing trend of consumers seeking additional income through side jobs. Details: Uber's potential service, likely named "Chore," was discovered in Uber's iPhone app code by developer Steve Moster and reported by Bloomberg News. Users would be able to specify a task, select a preferred arrival time for the hired person, and let the app calculate the fee based on the job's estimated completion time. What brands should care: While the code doesn't specify the tasks, potential competitors like TaskRabbit and Angi provide services like cleaning, furniture assembly, and moving help. Why it matters: While Uber has not officially confirmed this service, it may serve as a strategic move to diversify its revenue streams beyond ride-sharing and food delivery. It could also capitalize on the growing market for gig work. According to PYMNTS, 29% of consumers are earning additional income, a trend that gained during the pandemic and the rise in remote work. | | |
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3 | Swedish video game conglomerate Embracer Group is exploring a sale or spinoff of Gearbox Entertainment, the creator of "Borderlands." Embracer, Europe's largest gaming firm, is actively seeking buyers for Gearbox, less than three years after acquiring the game developer for $1.3B. More: - Embracer announced studio closures and game cancellations this year due to the sudden collapse of a reported $2B deal with the Saudi-backed Savvy Games Group.
- The restructuring included the permanent shutdown of Volition, the studio behind "Saints Row," last month.
- After receiving interest from third parties, it's now looking to sell Gearbox to improve its finances.
Zoom out: - Since acquiring Gearbox in 2021, Embracer has launched two "Borderlands" spinoffs and has a Borderlands movie scheduled for 2024.
- Embracer's recent history includes acquisitions like "Dark Horse" comics, "Tomb Raider" maker Crystal Dynamics, and the rights to "The Lord of the Rings" and "The Hobbit" franchise.
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4 | Qualcomm inked a deal with Apple to supply 5G chips for iPhones until 2026. The deal suggests that Apple's efforts to develop its own internal 5G modem are still a work in progress. More: - The companies signed a chip supply agreement in 2019 that ends this year, making the iPhone 15 release the final one under that deal.
- The new agreement covers smartphone launches from 2024 to 2026.
- Apple is developing its own modem technology and acquired Intel's modem unit for $1B in 2019.
- Qualcomm projects that it will provide just 20% of the chips for Apple's 2026 iPhones.
Zoom out: - According to Bloomberg data, Apple is Qualcomm's largest customer, contributing to almost 25% of its revenue.
- The deal is expected to bolster Qualcomm's handset business, which reported $5.26B in sales in Q2 2023.
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5 | WhatsApp is expected to soon support third-party messaging services like iMessage to comply with new EU regulations. The EU's Digital Markets Act (DMA), which comes into force next year, requires certain platforms to have greater interoperability. More: - The EU added Meta, WhatsApp's parent company, to its list of six "gatekeepers" under the DMA law, requiring the tech giant to open some services to competitors.
- Meta must make WhatsApp compatible with third-party messaging apps like Signal and Telegram by March 2024, allowing cross-platform communication.
- The details of these features are still unknown, but it's expected that end-to-end encryption will remain intact.
Zoom out: - According to WaBetaInfo, the latest WhatsApp beta does include a new "Third-party chats" screen, suggesting an imminent launch.
- The screen, currently inactive, is designed to let users access messages from other messaging apps independently.
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6 | Microsoft is offering legal protection to customers who use its artificial intelligence products in the event of copyright infringement lawsuits. The company announced its "Copilot Copyright Commitment" to pay legal damages on behalf of commercial AI customers. More: - Microsoft will cover judgments or settlements resulting from those lawsuits, as long as customers use the built-in safeguards and content filters in its products.
- Microsoft has integrated its generative AI services, such as its "Copilot," into various products, including Windows 11, Edge, Teams, and Outlook.
- The protection extends to paying customers of Microsoft 365 Copilot and GitHub Copilot.
- It does not apply to non-commercial users of free AI-powered services, such as Bing AI.
Zoom out: - Other software developers, like Adobe, have made similar pledges to reassure users in the growing field of generative AI.
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- Apple's "Wonderlust" event on Tuesday is expected to announce the iPhone 15 series, Apple Watch Series 9, and next-generation Apple Watch Ultra. The keynote will stream live starting at 10 a.m. PT.
- Roblox announced the Roblox Assistant, its conversational AI assistant for creating virtual environments and more on the platform.
- Recording Academy CEO Harvey Mason Jr. clarified that the AI-generated Drake song "Heart on My Sleeve" will not be eligible for a Grammy award.
- Disney is releasing the Disney Legacy Animated Film Collection, a 100-film Blu-ray set spanning films from 1937 to this year, for $1,500.
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Term of the Day 51% attack: A 51% attack occurs when an entity takes control of more than 50% of a blockchain network's hash rate. Read More 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 curator and writer of the AI and Tech newsletters at Inside. With a career in journalism and editing that began in 2007, she has written for publications including USA Today, The Arizona Republic, Arizona Business Gazette, and more. You can reach her at Beth.Duckett@yahoo.com. | This newsletter was edited by Eduardo Garcia | |
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