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| Here's a look at today's tech briefing: - EU exempts iMessage, Bing from stricter tech rules.
- Paramount Global cuts 3% of workforce after record Super Bowl viewership.
- Microsoft could release some Xbox games on rival consoles.
- Amazon sued over ads on Prime Streaming.
- Some Uber, Lyft, and DoorDash drivers to strike on Wednesday.
Beth
p/beth-duckett | |
| 1 | | Apple's iMessage, along with Microsoft's Bing and Edge, do not hold dominant enough market positions to fall under Europe's stricter rules governing digital platforms, EU officials have ruled. The finding means Apple won't have to make iMessage compatible with Android messaging services or rival apps like WhatsApp. More: - After a five-month probe, the European Commission concluded that iMessage, Bing, Edge, and Microsoft Advertising don't meet the criteria for "gatekeeper services," meaning their platforms are not gateways for businesses to reach end-users.
- This means the services themselves won't fall under the EU's tighter controls governing how they can operate.
- However, Apple and Microsoft are still treated as "gatekeepers" under the law.
- Other products subject to the rules include Microsoft's Windows and LinkedIn, as well as Apple's iOS, the App Store, and Safari.
Zoom out: - The rules, which take full effect on March 7, force companies like Microsoft, Apple, Google, Amazon, Meta, and ByteDance to support third-party apps and make it easier to switch to competitors, while banning them from prioritizing their own services.
- While the EU isn't forcing iMessage compatibility with other services, Apple is still moving toward interoperability by adding support for RCS messaging on iPhones this year.
- RCS texts will still appear as green bubbles and not iMessage's blue bubbles.
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| 2 | | Paramount Global is cutting 3% of its workforce, or roughly 800 jobs, just two days after CBS network's record viewership of Super Bowl LVIII. CBS, a Paramount subsidiary, set records with 123.4 million Super Bowl viewers and sold ads at a record $7M for 30 seconds, according to the Wall Street Journal. 
The news: Paramount CEO Bob Bakish informed staff of the layoffs in a memo, saying that U.S. employees would be notified by the end of today. Although the memo didn't reveal the number of layoffs, sources indicate about 800 employees across CBS, Paramount Pictures, Paramount+, Pluto TV, Showtime, Comedy Central, Nickelodeon, and MTV will be affected. The bigger picture: Bakish first warned of layoffs in a January memo, saying Paramount Global needs to "operate as a leaner company and spend less." Paramount has been restructuring by merging Showtime with its streaming services, scaling back on international streaming efforts, and selling assets like Simon & Schuster to lower debt. Paramount+, its largest streaming service, remains unprofitable. | | | |
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| 3 | | Microsoft may be gearing up to release some Xbox games on the PS5 and Nintendo Switch, sources tell The Verge. Microsoft is set to announce games for "rival" consoles soon as it seeks to boost revenue amid flagging Game Pass subscriptions and Xbox sales. More: - Hi-Fi Rush and Pentiment are expected to be the first Xbox games to debut on rival consoles.
- Microsoft could also release Rare's Sea of Thieves on non-Xbox platforms later this year.
- It's possible Microsoft could reveal its plans for third-party development during a special edition of the Official Xbox Podcast this Thursday, Feb. 15.
- The podcast will include updates on the Xbox business from Microsoft Gaming CEO Phil Spencer, Xbox President Sarah Bond, and head of Xbox Studios Matt Booty.
Zoom out: - Microsoft has fallen short of projected Game Pass growth, reporting 25 million subscribers in 2022 — a 28% increase instead of its targeted 73%.
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| 4 | | A proposed class action lawsuit accuses Amazon of engaging in deceptive trade practices by showing new ads on Prime Video. Prime members now see the ads unless they pay an extra $3 per month on top of their existing $15 per month Prime subscription. More: - The Prime Video ads began airing in the U.S. on Jan. 29 and the U.K., Germany, and Canada on Feb. 5.
- The lawsuit filed in California federal court accuses Amazon of violating state consumer protection laws, saying Prime subscribers who signed up expected an ad-free experience.
- The complaint argues that the subscribers are being deprived of "the reasonable expectations to which they are entitled."
- The plaintiff, Wilbert Napoleon, bought an annual Prime subscription last year, which now costs $139 a year.
- He is seeking over $5M in damages and a court order to halt the commercials.
Zoom out: - Amazon also confirmed that a Prime Video subscription no longer includes Dolby Vision HDR or Dolby Atmos surround sound unless users pay the extra $3 per month.
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| 5 | | Thousands of drivers from Uber, Lyft, and DoorDash plan to strike across 10 U.S. locations tomorrow, demanding fair pay. Drivers in Rhode Island, Austin, Chicago, Hartford, Miami, Newark, Orlando, Philadelphia, Pittsburgh, and Tampa will boycott rides to and from the airport on Feb 14. More: - Justice for App Workers, a coalition of ride-sharing and delivery drivers, announced plans to strike on Wednesday, calling for fair wages and safety measures.
- It's the first strike since Uber and Lyft went public in 2019, with drivers planning to picket outside airports and Uber offices.
- The drivers, who are independent contractors, accused platforms of disproportionately high commissions, leaving them unable to afford basic necessities.
Zoom out: - In response, Uber said driver earnings are "strong" and U.S. drivers made about $33 per utilized hour as of Q4 2023.
- Lyft recently announced that it would cover the shortfall if drivers earn less than 70% of what riders paid after outside fees every week.
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| 6 | | Google has committed €25M ($26.9M) to support AI education and skills across Europe. Google's nonprofit arm will donate the funding to boost AI training, particularly for Europe's "vulnerable and underserved" population, according to the company. More: - About $10.8M is earmarked to equip Europe-based workers with AI skills to prevent them from being "left behind" in the AI revolution.
- The effort will fund startup "growth academies" in Europe, the Middle East, and Africa, supporting ventures that use AI to tackle societal challenges.
- Google will also tap the funds to expand language options for its free AI courses.
Zoom out: - The tech giant has opened applications for nonprofits and social enterprises to deliver the training to those who would benefit the most.
- The Centre for Public Impact, a Boston Consulting Group-funded foundation, is collaborating with Google on the nonprofit part of the initiative.
- Adrian Brown, the center's executive director, noted that AI could worsen existing inequalities, particularly with economic security and employment.
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| 7 | | QUICK HITS: - Visa and Mastercard have come to a historic $5 billion settlement, marking a pivotal moment for small business owners.*
- Microsoft is developing a DLSS-like AI upscaling feature for smoother and more detailed PC gaming, according to a Windows 11 test build.
- Canada's BlackBerry is planning additional layoffs in its cybersecurity division as it works to return to a positive cash flow.
- Peter Thiel's Founders Fund made a $200M investment in Bitcoin and Ether in H2 2023, preceding a market rally that elevated Bitcoin's price to over $50,000 per token.
- Lyft's program connecting women and nonbinary riders with similar drivers is expanding to more cities.
- Dive into advanced tips and tricks with the Kubernetes Cookbook. Get your copy, compliments of the cloud experts at DoiT.*
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 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for notable publications like USA Today and the Arizona Business Gazette. During her time as a public policy reporter at The Arizona Republic, she received recognition with a Pulitzer Prize nomination and a First Amendment Award for her collaborative reporting on pension cost increases. Beth also authored a book on the solar photovoltaic industry in 2016. You can reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Eduardo Garcia | |
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