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  • Federal appeals court tosses state antitrust suit seeking to break up Meta | CNN Business

    Federal appeals court tosses state antitrust suit seeking to break up Meta | CNN Business

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    CNN
     — 

    A group of states that sued to break up Facebook-parent Meta in 2020 were years too late to file their challenge and failed to make a persuasive case that the company’s data policies harmed competition, a federal appeals court ruled Thursday in a sweeping victory for the tech giant.

    In siding with Meta, the decision by a three-judge panel of the US Court of Appeals for the DC Circuit upheld a lower-court decision tossing out the suit initially filed by New York and dozens of other states.

    The decision is a blow to regulators who have cited Meta as a prime example of the way tech giants have allegedly abused their dominance. And it casts a shadow over a parallel antitrust case against Meta that was brought by the Federal Trade Commission at around the same time.

    The states’ original complaint had sought to unwind Meta’s past acquisitions of Instagram and WhatsApp, accusing the company of a “buy-or-bury” approach that violated antitrust laws.

    In 2021, a federal judge dismissed the complaint, saying that the lawsuit came long after the acquisitions had been completed in 2012 and 2014. Thursday’s appellate decision agreed.

    “An injunction breaking up Facebook, ordering it to divest itself of Instagram and WhatsApp under court supervision, would have severe consequences, consequences that would not have existed if the States had timely brought their suit and prevailed,” wrote Senior Circuit Judge Raymond Randolph.

    In addition, Randolph wrote, state allegations claiming that Meta’s — then Facebook’s — policies placing restrictions on app developers were anticompetitive didn’t hold up.

    The policies in question, Randolph wrote, simply told app developers they could not use Facebook’s platform “to duplicate Facebook’s core products,” and did not rise to the level of an antitrust violation under federal law.

    Although the states argued that Facebook’s policies at the time — which have since been removed — discouraged innovation by the company’s rivals, the complaint failed to establish how widely the policies affected Facebook’s third-party developers.

    “The States thus have not adequately alleged that this policy substantially foreclosed Facebook’s competitors, giving us an additional reason to reject their exclusive dealing theory,” the court held.

    A spokesperson for New York Attorney General Letitia James didn’t immediately respond to a request for comment.

    In a statement, Meta said the state’s case reflected a mischaracterization of “the vibrant competitive ecosystem in which we operate.”

    “In affirming the dismissal of this case, the court noted that this enforcement action was ‘odd’ because we compete in an industry that is experiencing ‘rapid growth and innovation with no end in sight,’ Meta said. “Moving forward, Meta will defend itself vigorously against the FTC’s distortion of antitrust laws and attacks on an American success story that are contrary to the interests of people and businesses who value our services.”

    In spite of Thursday’s decision, Meta must still face a similar lawsuit by the FTC, which also seeks to break up the company in connection with its Instagram and WhatsApp acquisitions.

    Last year, the same federal judge who dismissed the state suit, James Boasberg, allowed the federal suit to proceed. Boasberg had tossed out the FTC suit as well in 2021, saying the agency had failed to make an initial showing that Meta holds a monopoly in personal social networking. But he permitted the FTC to re-file its complaint with changes.

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  • This is Google’s new folding phone | CNN Business

    This is Google’s new folding phone | CNN Business

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    CNN
     — 

    Just a few days ahead of its product launch, Google unveiled an early look at its first foldable smartphone.

    In a video posted to Twitter and YouTube, the company teased a Pixel phone with a vertical hinge that can be opened to reveal a tablet-like display.

    The company will host its annual developer conference at its Mountain View, California, headquarters next week, where it’s rumored to also introduce a Pixel 7a budget phone, its latest Android operating system and advancements to its AI-powered Bard chatbot.

    Although the company didn’t reveal specs for the Pixel Fold, it’s become increasingly common for companies to show off products leading up to their own events in an effort to drum up excitement and set expectations at a time when it’s difficult to surprise onlookers with something unexpected.

    Despite great interest in foldable phones — and a resurgence in 90s-style flip phones among celebrities and TikTok influencers — the foldable market is relatively small; with Samsung dominating the category, followed by others including Motorola/Lenovo, Oppo, and Huawei. According to ABI Research, foldable and flexible displays made up about 0.7% of the smartphone market in 2021, and in 2022 expected to fall just shy of 2%.

    High price points have limited consumer adoption, too. The Pixel Fold is rumored to start at $1,700.

    It’s not surprising Google is dipping its toes into the world of foldables but it’s possible it waited to launch its own version until the technology became more advanced. Early versions of the Samsung Galaxy Z Fold, for example, had issues with the screen and most apps were not well optimized for the design.

    “Google has been working on bringing better user experiences to foldable devices from a software perspective, so when coupled with improvements on the hardware side the market conditions are at a state now where it makes sense for a Pixel Fold,” said Michael Inouye, an analyst at ABI Research.

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  • Twitter shifts course, allowing governments to post automated weather alerts and transit updates ‘for free’ | CNN Business

    Twitter shifts course, allowing governments to post automated weather alerts and transit updates ‘for free’ | CNN Business

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    CNN
     — 

    Twitter said Tuesday it will permit public institutions such as transit agencies and the National Weather Service to post large volumes of automated tweets for free, provided that the accounts doing so are “verified gov or publicly owned services.”

    The announcement marks another sudden pivot in Twitter’s attempts to charge institutional users for access to its platform — reflecting an apparent concession to those who warned that Twitter’s paywall plan would disrupt consumers’ ability to receive timely updates from first responders, weather agencies and other vital services for which Twitter has become an essential distribution channel.

    Last week, New York’s Metropolitan Transit Authority announced it would stop posting real-time transit alerts on Twitter, citing reliability issues with Twitter’s platform and saying it does not pay tech platforms for the ability to provide the updates. In recent weeks, multiple regional accounts run by the National Weather Service have also warned followers to expect fewer weather updates in connection with Twitter’s platform changes.

    Tuesday’s shift comes amid a widespread backlash to Twitter’s paid plans, which cost as much as $2.5 million per year for top-level access privileges allowing organizations to download and post large volumes of tweets in an automated fashion.

    The changes, which took effect in March, restricted third parties from easily accessing Twitter’s application programming interface, or the technology that allows outside software to plug into Twitter’s platform. The changes provoked especially strong opposition from third-party app developers whose projects depend on uninterrupted Twitter access, as well as from academic researchers that study platform manipulation and misinformation, who said even the most expensive new plans provided just a fraction of the data Twitter once offered at no or low cost.

    On Tuesday, Twitter’s official account for developers acknowledged the impact the company’s paywall could have on civil society.

    “One of the most important use cases for the Twitter API has always been public utility,” it said. “Verified gov or publicly owned services who tweet weather alerts, transport updates and emergency notifications may use the API, for these critical purposes, for free.”

    But while Twitter appeared to be backing off from an attempt to charge vital services substantial fees for API access, the announcement left it ambiguous regarding how Twitter planned to ensure that critical public safety and transit accounts would be “verified.”

    Requiring that the accounts be verified under Twitter’s paid subscription program, Twitter Blue, could still involve forcing institutions to pay to access Twitter’s API.

    Twitter’s developer account didn’t immediately respond to CNN’s questions seeking clarification on the matter.

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  • Google rolls out an alternative to the password | CNN Business

    Google rolls out an alternative to the password | CNN Business

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    New York
    CNN
     — 

    The days of having to think up new passwords that aren’t “password123” may be coming to an end – at least on your Google accounts.

    Google on Wednesday began rolling out support for passkeys, an alternative sign-in method for apps and websites that the company says is meant to serve as an “easier to use and more secure” alternative to the password.

    With passkeys, Google said users can access their various accounts the same way they might unlock their phone: with a fingerprint, face scan or screen lock PIN.

    The FIDO Alliance, a security consortium that counts many tech firms as members, previously developed standards for passkeys. Microsoft, Apple and Google have since been working to make passkeys a reality.

    Apple rolled out its passkey option with the release of iOS 16, allowing people to use the technology across apps, including Apple Wallet. Passkey support was rolled out on Chrome and Android devices in October 2022, but now the option is available across Google accounts, from Gmail to Drive.

    People are notoriously bad at picking passwords. But even adding a special character or alphanumeric combination can only add so much protection from bad actors. Passkeys, by comparison, are widely seen as more secure than other options, with Google calling them “resistant to online attacks like phishing.”

    Google will continue to support passwords and two-factor authentication as other account access options.

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  • TV and film writers are fighting to save their jobs from AI. They won’t be the last | CNN Business

    TV and film writers are fighting to save their jobs from AI. They won’t be the last | CNN Business

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    CNN
     — 

    By any standard, John August is a successful screenwriter. He’s written such films as “Big Fish,” “Charlie’s Angels” and “Go.” But even he is concerned about the impact AI could have on his work.

    A powerful new crop of AI tools, trained on vast troves of data online, can now generate essays, song lyrics and other written work in response to user prompts. While there are clearly limits for how well AI tools can produce compelling creative stories, these tools are only getting more advanced, putting writers like August on guard.

    “Screenwriters are concerned about our scripts being the feeder material that is going into these systems to generate other scripts, treatments, and write story ideas,” August, a Writers Guild of America (WGA) committee member, told CNN. “The work that we do can’t be replaced by these systems.”

    August is one of the more than 11,000 members of the WGA who went on strike Tuesday morning, bringing an immediate halt to the production of some television shows and possibly delaying the start of new seasons of others later this year.

    WGA is demanding a host of changes from the Alliance of Motion Picture and Television Producers (AMPTP), from an increase in pay to receiving clear guidelines around working with streaming services. But as part of their demands, the WGA is also fighting to protect their livelihoods from AI.

    In a proposal published on WGA’s website this week, the labor union said AI should be regulated so it “can’t write or rewrite literary material, can’t be used as source material” and that writers’ work “can’t be used to train AI.”

    August said the AI demand “was one of the last things” added to the WGA list, but that it’s “clearly an issue writers are concerned about” and need to address now rather than when their contact is up again in three years. By then, he said, “it may be too late.”

    WGA said the proposal was rejected by AMPTP, which countered by offering annual meetings to discuss advancements in the technology. August said AMPTP’s response shows they want to keep their options open.

    In a document sent to CNN responding to some of WGA’s asks, AMPTP said it values the work of creatives and “the best stories are original, insightful and often come from people’s own experiences.”

    “AI raises hard, important creative and legal questions for everyone,” it wrote. “Writers want to be able to use this technology as part of their creative process, without changing how credits are determined, which is complicated given AI material can’t be copyrighted. So it’s something that requires a lot more discussion, which we’ve committed to doing.”

    It added that the current WGA agreement defines a “writer” as a “person,” and said “AI-generated material would not be eligible for writing credit.”

    The writers’ attempt at bargaining over AI is perhaps the most high-profile labor battle yet to address concerns about the cutting-edge technology that has captivated the world’s attention in the six months since the public release of ChatGPT.

    Goldman Sachs economists estimate that as many as 300 million full-job jobs globally could be automated in some way by the newest wave of AI. White-collar workers, including those in administrative and legal roles, are expected to be the most affected. And the impact may hit sooner than some think: IBM’s CEO recently suggested AI could eliminate the need for thousands of jobs at his company alone in the next five years.

    David Gunkel, a professor at the department of communications at Northern Illinois University who tracks AI in media and entertainment, said screenwriters want clear guidelines around AI because “they can see the writing on the wall.”

    “AI is already displacing human labor in many other areas of content creation—copywriting, journalism, SEO writing, and so on,” he said. “The WGA is simply trying to get out-in-front of and to protect their members against … ‘technological unemployment.’”

    While film and TV writers in Hollywood may currently be leading the charge, professionals in other industries will almost certainly be paying attention.

    “There’s certainly other industries that need to be paying close attention to this space,” said Rowan Curran, an analyst at Forrester Research who focuses on AI. He noted that digital artists, musicians, engineers, real estate professionals and customer service workers will all feel the impact of generative AI.

    “Watch this #WGA strike carefully,” Justine Bateman, a writer, director and former actress, wrote in a tweet shortly after the strike kicked off. “Understand that our fight is the same fight that is coming to your professional sector next: it’s the devaluing of human effort, skill, and talent in favor of automation and profits.”

    AI has had a place in Hollywood for years. In the 2018 “Marvel Avengers Infinity Wars” film, the face of Thanos – a character played by actor Josh Brolin – was created in part with the technology.

    Crowd and battle scenes in films including the “Lord of the Rings” and “Meg” have utilized AI, and the most recent Indiana Jones used it to make Harrison Ford’s character appear younger. It’s also been used for color correction, finding footage more quickly during post production and making improvements such as removing scratches and dust from footage.

    But AI in screenwriting is in its infancy. In March, a “South Park” episode called “Deep Learning,” was co-written by ChatGPT and the tool was highly focused on in the plot (the characters use ChatGPT to talk to girls and write school papers).

    August said writers are largely willing to play ball with tools, as long as they’re used as launching pads or for research and writers are still credited and utilized throughout the production process.

    “Screenwriters are not luddites, and we’ve been quick to use new technologies to help us tell our stories,” August said. “We went from typewriters to word processors happily and it increased productivity. …. But we don’t need a magical typewriter that types scripts all by itself.”

    Because large language models are trained on text that humans have written before, and find patterns in words and sentences to create responses to prompts, concerns around intellectual property exist, too. “It is entirely possible for a [chatbot] to generate a script in the style of a particular kind of filmmaker or scriptwriter without prior consent of the original artist or the Hollywood studio that holds the IP for that material,” Gunkel said.

    For example, one could prompt ChatGPT to generate a zombie apocalypse drama in the style of David Mamet. “Who should get credited for that?” August said. “What happens if we allow a producer or studio executive to come up with a treatment or pitch or something that looks like a screenplay that no writer has touched?”

    For now, the legal landscape remains very much unsettled on the matter, with regulations lagging behind the rapid pace of AI development. In early April, the Biden administration said it is seeking public comments on how to hold artificial intelligence systems like ChatGPT accountable.

    “We can’t protect studios from their own bad choices,” August said. “We can only protect writers from abuses.”

    The strike, and the demands around AI specifically, come at a time when both the writers and the studios are feeling financial pain.

    Many of the businesses represented by AMPTP have seen drops in their stock price, prompting deep cost cutting, including layoffs. The need to manage costs, combined with addressing the fallout from the strike, might only make the companies feel more pressure to turn to AI for scriptwriting.

    “In the short term, this could be an effective way to circumvent the WGA strike, mainly because [large language models], which are considered property and not personnel, can be employed for this task without violating the picket line,” Gunkel said. Such an “experiment” could also show production studios whether it’s possible “to get by with less humans involved,” he said.

    But Joshua Glick, a visiting professor of film and electronic arts at Bard University, believes such a move would be ill-advised.

    “It would be a pretty aggressive and antagonistic move for studios to move forward with AI-generated scripts in terms of getting writers to come to the negotiating table because AI is such a crucial sticking point in the negotiations,” said Glick, who also co-created Deepfake: Unstable Evidence on Screen, an exhibition at the Museum of the Moving Image in New York.

    “At the same time, I think the result of those scripts would be pretty mediocre at best,” he said.

    However the studios react, the issue is unlikely to go away in Hollywood. Film and TV actors’ contracts are up in June, and many are worried about how their faces, bodies and voices will be impacted by AI, August said.

    “As writers, we don’t want tools to replace us but actors have the same concerns with AI, as do directors, editors and everyone else who does creative work in this industry,” he added.

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  • Your iPhone will soon be able to replicate your voice after 15 minutes of training | CNN Business

    Your iPhone will soon be able to replicate your voice after 15 minutes of training | CNN Business

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    CNN
     — 

    Apple on Tuesday announced a series of new accessibility tools for the iPhone and iPad, including a feature that promises to replicate a user’s voice for phone calls after only 15 minutes of training.

    With an upcoming tool called Personal Voice, users will be able to read text prompts to record audio and have the technology learn their voice. A related feature called Live Speech will then use the “synthesized voice” to read the user’s typed text aloud during phone calls, FaceTime conversations and in-person conversations. People will also be able to save commonly used phrases to use during live conversations.

    The feature is one of several aimed at making Apple’s devices more inclusive for people with cognitive, vision, hearing and mobility disabilities. Apple said people who may have conditions where they lose their voice over time, such as ALS (amyotrophic lateral sclerosis) could benefit most from the tools.

    “Accessibility is part of everything we do at Apple,” said Sarah Herrlinger, Apple’s senior director of Global Accessibility Policy and Initiatives, in a company blog post. “These groundbreaking features were designed with feedback from members of disability communities every step of the way, to support a diverse set of users and help people connect in new ways.”

    Apple said the features will roll out later this year.

    While these tools have potential to meet a genuine need, they also come at a moment when advancements in artificial intelligence have raised alarms about bad actors using convincing fake audio and video – known as “deepfakes” – to scam or misinform the public.

    In the blog post, Apple said the Personal Voice feature uses “on-device machine learning to keep users’ information private and secure.”

    Other tech companies have experimented with using AI to replicate a voice. Last year, Amazon said it’s working on an update to its Alexa system that would allow the technology to mimic any voice, even a deceased family member. (The feature has not yet been released).

    In addition to the voice features, Apple announced Assistive Access, which combines some of the most popular iOS apps, such as FaceTime, Messages, Camera, Photos, Music and Phone, into one Calls app. The interface includes high-contrast buttons, large text labels, an option for an emoji-only keyboard and the ability to record video messages for people who may prefer visual or audio communications.

    Apple is also updating its Magnifier app for the visually impaired. It will now include a detection mode to help people better interact with physical objects. The update would allow someone, for example, to hold up an iPhone camera in front of a microwave and move their finger across the keypad as the app labels and announces the text on the microwave’s buttons.

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  • A new CEO won’t fix Twitter’s biggest problem | CNN Business

    A new CEO won’t fix Twitter’s biggest problem | CNN Business

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    New York
    CNN
     — 

    During his six months as Twitter’s CEO and owner, Elon Musk decimated its ad business, alienated some news publications and VIP users, and plunged the platform into a constant state of chaos.

    Now, a new chief executive will be tasked with trying to turn things around.

    Musk announced on Friday that he would in the coming weeks hand the CEO role over to Linda Yaccarino, a longtime media executive and former chairman of global advertising and partnerships at NBCUniversal. Yaccarino has said little publicly so far, beyond noting her excitement to “transform this business together.”

    Twitter is in desperate need of stability from a leader. And Yaccarino brings the ad industry chops that Twitter sorely needs to lure back top advertisers and boost its business after a turbulent period. But she may struggle to address Twitter’s biggest problem: Elon Musk.

    Although Musk is handing off the CEO title — and, perhaps, trying to shed some of the accountability that comes with it — the billionaire remains firmly in charge of the company as its owner and executive chair. Musk will still be in the C-Suite as Twitter’s chief technology officer. And he continues to be Twitter’s most-followed user, meaning his controversial statements to his nearly 140 million followers could still create headaches for the company.

    In tech, the CEO is often the public face of the brand. But Musk will almost certainly continue to fill that role, with or without the title, likely to Twitter’s detriment.

    Just this week, Musk drew backlash for baselessly attacking billionaire George Soros, a frequent target for antisemitic conspiracy theories, saying the financier “hates humanity.” Musk’s Twitter also faced criticism in recent days for removing some tweets and accounts at the behest of Turkey’s government amid the country’s election; the company later said it would object to the removal requests in court.

    On Tuesday, Musk said he “didn’t care” if his controversial tweets drew the ire of Twitter advertisers or Tesla shareholders. “I’ll say what I want to say, and if the consequence of that is losing money, so be it,” Musk said in an interview with CNBC.

    “The question is: can she help balance [Musk]?” said Tim Hubbard, management professor at University of Notre Dame’s Mendoza College of Business. He added that top ad buyers are more likely to take calls from Yaccarino than from Musk, who has previously said he hates advertising.

    But “the big problem with Twitter right now is, they’re on a pathway that turns advertisers off, turns users off,” Hubbard said. “Unless there are fundamental changes at Twitter, I don’t think [the leadership change] is going to have the immediate effect that Elon is hoping it will have.”

    Twitter did not respond to a request for comment on this story.

    The Musk issue was on full display at NBCU’s ad upfront this week, which was held shortly after Yaccarino resigned from the company following rumors of her appointment as Twitter’s CEO. On stage at the event, which aimed to promote NBCU’s platforms to advertisers, a talking bear sang to audience members: “Twitter may seem like the place to begin, but Twitter just let all the crazies back in.”

    Even if Musk pulls back on his tweeting, a feat he seems constitutionally incapable of achieving, it will be no easy task for Yaccarino to revive Twitter’s advertising business — let alone expand it.

    Many major advertisers left the platform following Musk’s takeover over concerns about an uptick of hate speech, frustrations over layoffs of much of the company’s ad and safety teams and general uncertainty about the platform’s future. Just 43% of Twitter’s top 1,000 advertisers as of September, the month before Musk’s takeover, were still advertising on the platform as of last month, according to data from market intelligence firm Sensor Tower.

    But for many, leaving Twitter may not have been a particularly difficult call.

    Even in the best of times, Twitter was an also-ran in the digital ad space compared to tech giants like Meta and Google, with a smaller user base and less sophisticated ad targeting technology. And Musk’s takeover came as many advertisers have pulled back their digital ad spending across the board during a precarious moment for the economy. That could only add to the difficulty Yaccarino will face in shoring up Twitter’s business.

    Musk, for his part, has been attempting to supplement, and potentially largely replace, Twitter’s ad business with subscriptions, but it appears that only a tiny fraction of Twitter users have bought in. The selection of Yaccarino suggests a recognition on his part that the company he bet $44 billion on will continue to be reliant on ad sales for the foreseeable future.

    It’s unclear how much freedom Yaccarino will have to hire additional staff to support her likely remit to revive advertising on Twitter after Musk laid off around 80% of the company’s staff last year. And even if she is able to hire, top talent may be wary of joining Twitter after Musk upended the company’s culture and reportedly rolled back benefits like work-from-home and extended parental leave.

    “Personnel is going to be a huge challenge for her … if tech workers are looking for a stable working environment, they will probably stay away from Twitter,” Hubbard said.

    But Musk’s ongoing influence remains the biggest potential hurdle.

    Musk has said he will oversee product, technology and software and systems operations, while Yaccarino will focus on business operations. The announcement has left open the question of whether Musk will remain in charge of controversial policy decisions, many of which — including allowing users to buy blue verification checks and restoring the accounts of rule violators, including white supremacists — have threatened Twitter’s popularity with users and advertisers.

    “Cleaning up Twitter requires reversing Musk’s dangerous policy decisions, reinvesting in content moderation and enforcement, and restructuring the platform’s governance,” Jessica Gonzalez, co-CEO of media watchdog Free Press who helped found the #StopToxicTwitter campaign encouraging advertisers to avoid the platform, said in a statement.

    “Musk is setting future CEO Linda Yaccarino up to fail — as long as he continues to make the platform toxic, it will be impossible to lure back advertisers and users,” she said.”

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  • How Meta got caught in tensions between the US and EU | CNN Business

    How Meta got caught in tensions between the US and EU | CNN Business

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    CNN
     — 

    Facebook-parent Meta has perhaps become the most high-profile casualty of a long-running privacy dispute between Europe and the United States — but it may not be the last.

    Meta has been fined a record-breaking €1.2 billion ($1.3 billion) by European Union regulators for violating EU privacy laws by transferring the personal data of Facebook users to servers in the United States. Meta said Monday it would appeal the ruling, including the fine.

    The historic fine against Meta — and a potentially game-changing legal order that could force Meta to stop transferring EU users’ data to the United States — isn’t just a one-off decision limited to this one company or its individual business practices. It reflects bigger, unresolved tensions between Europe and the United States over data privacy, government surveillance and regulation of internet platforms.

    Those underlying and fundamental disagreements, which have simmered for years, have now come to a head, casting a significant shadow over thousands of businesses that depend on processing EU data in the United States.

    Beyond its huge economic implications, however, the fine has once again highlighted Europe’s deep mistrust of US surveillance powers — right as the US government is trying to build its own case against foreign-linked apps such as TikTok over similar surveillance concerns.

    The origins of Meta’s fine this week trace back to a 2020 ruling by Europe’s top court.

    In that decision, the European Court of Justice struck down a complex transatlantic framework Meta and many other companies had been relying on until then to legally move EU user data to US servers in the ordinary course of running their businesses.

    That framework, known as Privacy Shield, was itself the outgrowth of European complaints that US authorities didn’t do enough to protect the privacy of EU citizens. At the time Privacy Shield was created, the world was still reeling from disclosures made by National Security Agency leaker Edward Snowden. His disclosures highlighted the vast reach of US surveillance programs such as PRISM, which allowed the NSA to snoop on the electronic communications of foreign nationals as they used tech tools built by Google, Microsoft, and Yahoo, among others.

    PRISM relied on a basic fact of internet architecture: Much of the world’s online communications take place on US-based platforms that route their data through US servers, with few legal protections or recourse for either foreigners or Americans swept up in the tracking.

    A 2013 European Parliament report on the PRISM program captured the EU’s sense of alarm, noting the “very strong implications” for EU citizens.

    “PRISM seems to have allowed an unprecedented scale and depth in intelligence gathering,” the report said, “which goes beyond counter-terrorism and beyond espionage activities carried out by liberal regimes in the past. This may lead towards an illegal form of Total Information Awareness where data of millions of people are subject to collection and manipulation by the NSA.”

    Privacy Shield was a 2016 US-EU agreement designed to address those concerns by making US companies certifiably accountable for their handling of EU user data. For a time, it seemed as if Privacy Shield could be a lasting solution facilitating the growth of the internet and a globally connected society, one in which the free flow of data would not be impeded.

    But when the European Court of Justice invalidated that framework in 2020, it reiterated longstanding surveillance concerns and insisted that Privacy Shield still didn’t provide EU citizens’ personal information the same level of protection in the US that it enjoys in EU countries, a standard required under GDPR, the EU’s signature privacy law.

    The loss of Privacy Shield created enormous uncertainty for the more than 5,300 businesses that rely on the smooth transfer of data across borders. The US government has said transatlantic data flows support the more than $7 trillion dollars of economic activity that occurs every year between the United States and the European Union. And the US Chamber of Commerce has estimated that transatlantic data transfers account for about half of all data transfers in both the US and the EU.

    The Biden administration has moved to implement a successor to Privacy Shield that contains some changes to US surveillance practices, and if it is fully implemented in time, it could prevent Meta and other companies from having to suspend transatlantic data transfers or some of their European operations.

    But it’s unclear whether those changes will be enough to be accepted by the EU, or whether the new data privacy framework could avoid its own court challenge.

    The possibility that US-EU data transfers may be seriously disrupted is refocusing scrutiny on US surveillance law just as the US government has been sounding its own alarms about Chinese government surveillance.

    US officials have warned that China could seek to use data collected from TikTok or other foreign-linked companies to benefit the country’s intelligence or propaganda campaigns, using the personal information to identify spying targets or to manipulate public opinion through targeted disinformation.

    But US moral authority on the issue risks being eroded by the EU criticism, a problem for the US government that may only be compounded by its own missteps.

    Just last week, a federal court described how the FBI improperly accessed a vast intelligence database meant for surveilling foreign nationals in a bid to gather information on US Capitol rioters and those who protested the 2020 killing of George Floyd.

    The improper access, which was not “reasonably likely” to retrieve foreign intelligence information or evidence of a crime, according to a Justice Department assessment described in the court’s opinion, has only inflamed domestic critics of US surveillance law, and could give ammunition to EU critics.

    The intelligence database at issue was authorized under Section 702 of the Foreign Intelligence Surveillance Act — the same law used to justify the NSA’s PRISM program and which the EU has repeatedly cited as a danger to its citizens and a reason to suspect transatlantic data sharing.

    While the US distinguishes itself from China based on commitments to open and democratic governance, the EU’s concerns about the US are not much different in kind: They come from a place of deep mistrust of broad surveillance authority and suspicions about the potential misuse of user data.

    For years, civil liberties advocates have alleged that Section 702 enables warrantless spying on Americans on an enormous scale. Now, the FBI incident may only further validate EU fears; add to the existing concerns that led to Meta’s fine; contribute to the potential unraveling of the US-EU data relationship; and damage US credibility in its push to warn about the hypothetical risks of letting TikTok data flow to China.

    If a new transatlantic data agreement is delayed or falls apart, Meta won’t be the only company stuck with the bill. Thousands of other companies may get caught in the middle, and the United States will have to hope nobody looks too closely at why while still trying to make a case against TikTok.

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  • Twitter debuts a mid-tier data access plan, to almost immediate backlash | CNN Business

    Twitter debuts a mid-tier data access plan, to almost immediate backlash | CNN Business

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    Washington
    CNN
     — 

    Twitter unveiled a new data access tier on Thursday aimed at attracting startups, after its decision to erect a paywall for developers and researchers prompted widespread backlash. But the new tier already has some describing it as “too little, too late.”

    The new paid tier, which the company calls “Pro,” costs $5,000 per month and allows subscribers to retrieve one million tweets a month, the company announced. The offering also allows for the monthly posting of up to 300,000 automated tweets.

    Under owner Elon Musk, Twitter has been racing to find new ways to boost revenue to offset declines from an exodus of advertisers and to help recoup the billions he spent buying the company.

    But the addition of an intermediate tier between Twitter’s Basic and Enterprise tiers reflects pushback from users who have said its plans severely restrict the amount of data that can be accessed or published through Twitter’s application programming interface (API). An enterprise plan starts at $42,000 a month and can cost as much as $210,000 a month.

    Public institutions such as New York’s Metropolitan Transit Authority have made headlines for pulling their real-time service alerts from Twitter over the paywall. The MTA later returned after Twitter backtracked and said eligible government and public service accounts would continue to be able to post automated tweets for free.

    But hours after its release, even the new Pro tier is being criticized as still unaffordable for many startups and coming too late to save others that have already shut down because of Twitter’s paywall.

    The replies to Twitter’s announcement are filled with complaints that “the jump to 5k is too much,” as one user responded.

    “1.66 cents per tweet… I mean, it’s cheaper to send emails these days, and it costs 1.66 cents for 280 characters?” came another reply.

    “That’s cool, but you already killed most Twitter apps by now,” another user said. “5K is still too much for most of us. A 1K plan could make sense… but then again it’s too late.”

    Others suggested a $500 per month tier would be “more appropriate.”

    The new paid tier comes amid a report that Twitter has demanded researchers delete the data they had downloaded from the platform from before the paywall went into effect, unless they agree to pay for an enterprise plan.

    Twitter didn’t immediately respond to a request for comment.

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  • Elon Musk says Twitter has ‘no actual choice’ about government censorship requests | CNN Business

    Elon Musk says Twitter has ‘no actual choice’ about government censorship requests | CNN Business

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    New York
    CNN
     — 

    Criticized for giving into governments’ censorship demands, Elon Musk on Sunday claimed that Twitter has “no actual choice” about complying those requests.

    The comment comes after Musk has previously called himself a “free speech absolutist” and said he wanted to buy Twitter to bolster users’ ability to speak freely on the platform. Shortly after agreeing to acquire Twitter, Musk explained his approach to free speech by saying: “Is someone you don’t like allowed to say something you don’t like? And if that is the case, then we have free speech.”

    He added at the time that Twitter would “be very reluctant to delete things” and “be very cautious with permanent bans,” and that the platform would aim to allow all legal speech.

    But Musk has faced blowback in recent weeks for appearing to cave to government censorship demands, including by removing some accounts and tweets at the behest of the government of Turkey ahead of the country’s elections (which the company later said it would attempt to fight in court). And in an interview with the BBC last month, Musk was asked about whether Twitter had removed a documentary about Indian Prime Minister Narendra Modi at the request of the Indian government, and said he didn’t know “what exactly happened.”

    Bloomberg columnist Matthew Yglesias on Sunday tweeted an article suggesting that Twitter has complied with a majority of government takedown requests since Musk took over as the platform’s owner. Musk replied: “Please point out where we had an actual choice and we will reverse it.”

    Musk has previously said the company would comply with laws governing social media companies around the world, although such laws in some cases appear to conflict with his free speech vision. Twitter did not respond to CNN’s request for comment.

    In last month’s interview with the BBC, Musk said, “the rules in India for what can appear on social media are quite strict, and we can’t go beyond the laws of a country … If we have a choice of either our people go to prison or we comply with the laws, we will comply with the laws.” At another point in the interview, Musk said: “If people of a given country are against a certain type of speech, they should talk to their elected representatives and pass a law to prevent it.”

    “By ‘free speech,’ I simply mean that which matches the law,” Musk said in a tweet last year about his vision for Twitter. “I am against censorship that goes far beyond the law.”

    In some countries, Twitter could risk substantial fines and other penalties — including, potentially, bans of the platform — for not complying with local laws.

    However, prior to Musk’s takeover, Twitter frequently fought government takedown requests in court, including from India and Turkey, in addition to publicly releasing detailed information about such requests and how it handled them. In many cases, Twitter led the charge among social media companies in protecting its users’ rights around the world.

    In last recent removal request report before Musk’s takeover, Twitter said it received more than 47,000 removal requests between July and December 2021, and complied with 51% of them. In many cases, when it did comply with a removal request because of a certain country’s laws, it removed the violating content only in that country, rather than globally.

    Musk was also criticized for backing down on his “free speech” vision when Twitter temporarily banned the accounts of several high-profile journalists in December, claiming that they had violated a new “doxxing” policy on the site. None of the banned journalists appeared to have shared Musk’s precise real-time location — the restrictions came after they reported on Twitter’s removal of an account that posts the updated location of Musk’s private jet.

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  • Job site ZipRecruiter cutting 20% of its staff | CNN Business

    Job site ZipRecruiter cutting 20% of its staff | CNN Business

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    New York
    CNN
     — 

    Fewer employers looking for workers means 270 employees at job search site ZipRecruiter will soon be out of a job.

    The company is cutting 20% of its staff by the end of this month, the company disclosed in a filing late Wednesday.

    “This action was taken in response to current market conditions and after reducing other discretionary expenses, with a view toward driving long-term efficiency,” according to the filing.

    The company had previously said it is experiencing a “typical softness in jobs posting” in January, but sounded other alarms about a slowing in the labor market. Its first quarter revenue fell 19% from a year earlier and it forecast that its revenue in the current quarter would be down nearly 30% from the second quarter of 2022.

    The job search site still projects adjusted earnings that are roughly the same for this year as last year, although it said to do so it would “respond to our environment quickly” by “increasing our focus on profitability during times of decreased demand from employers.”

    About half of the 270 employees losing their job are in the sales and customer support teams. The company will take a charge of between $7 million to $9 million to cover severance costs. It expects to still make the same level of profits, excluding special items such as severance, as in its earlier guidance.

    It also announced that CEO Ian Siegel agreed to a 30% cut in base salary, as of June 1. He has a base salary of $550,000, according to an earlier filing, but had total compensation last year of about twice that amount.

    Layoffs across the tech sector have become widespread in recent months. Amazon, one of the nation’s largest private-sector employers, has announced two rounds of job cuts this year totaling 27,000 positions, and Facebook holding company Meta has announced 21,000 job cuts since last fall. Alphabet, Microsoft and Salesforce — and especially Twitter — have all announced large job cuts.

    Outplacement firm Challenger, Gray & Christmas said Thursday there have been 137,000 layoffs in the sector in the first five months of the year, the most job cuts in the sector since there were 168,000 in all of 2001, the year after the dot.com bubble burst.

    Despite all the job cuts in technology and also in media, US employers overall are still hiring more people than they’re cutting.

    Private sector employment increased by 278,000 jobs in May, according to ADP’s monthly National Employment Report released Thursday, much stronger than the 170,000 forecast by economists. Economists are also forecasting a gain of 190,000 jobs for May when the Labor Department issues its monthly jobs report Friday. The April jobs report also came in much stronger than expected, as employers added 253,000 jobs.

    Still, hiring is at a slower pace than a year ago, when employers added 445,000 jobs a month, on average, in the first half of 2022. The Labor Department’s count of job openings, while up 3% in April compared to March, is down 14% from a year earlier — though that still means there are 1.8 jobs available for every job seeker.

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  • The rivalry between Meta and Apple is moving to a new playing field: virtual reality | CNN Business

    The rivalry between Meta and Apple is moving to a new playing field: virtual reality | CNN Business

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    New York
    CNN
     — 

    Months after Apple unveiled a privacy change that threatened Facebook’s core advertising business, the social networking company rebranded as Meta and shifted its focus to virtual reality.

    Now, less than two years later, Apple may be threatening Meta’s business there, too.

    Apple

    (AAPL)
    on Monday unveiled its mixed reality headset, the Vision Pro, in one of its most ambitious product launches in years. At the kickoff of the company’s annual developer conference, Apple

    (AAPL)
    CEO Tim Cook touted the Vision Pro, a $3,499 device that combines virtual reality and augmented reality, as a “revolutionary product,” with the potential to change how users interact with technology.

    The new Apple product, set to launch early next year, puts Apple in direct competition with Meta, which has been building headsets for years.

    On Thursday, just days before WWDC, Meta CEO Mark Zuckerberg tried to preempt the expected Apple headset announcement by teasing the Meta Quest 3. The new headset promises improved performance, new mixed-reality features and a sleeker, more comfortable design, at a much more affordable price ($499).

    Every period of consumer tech seems to be shaped by heated rivalries. Apple’s competition with Microsoft

    (MSFT)
    was central to the early personal computing era. Apple’s late CEO Steve Jobs declared “thermonuclear war” against Google over smartphones. Now, Apple and Meta could be the defining rivalry of the VR/AR era.

    The two companies had a tense relationship even before Apple’s entry into the market. They have competed over news and messaging features, and their CEOs have traded jabs over data privacy and app store policies. Last February, Meta said it expected to take a $10 billion hit in 2022 from Apple’s move to limit how apps like Facebook collect data for targeted ads.

    But the rivalry appears poised to reach a new level.

    Meta has until now been the dominant player in the headset market. But virtual and augmented reality remains a nascent market with little mainstream consumer adoption. The Wall Street Journal reported last year that Meta had just 200,000 active users in Horizon Worlds, its app for socializing in VR. And in 2023, IDC estimates just 10.1 million AR/VR headsets will ship globally from the entire market, far below the tens of millions of iPhones Apple sells each quarter.

    Morgan Stanley analysts called Apple’s Vision Pro a “moonshot” effort following its announcement on Monday, saying the product “has the potential to become Apple’s next compute platform,” but that the company has “much to prove” before the headset’s launch next year.

    “We’re always happy when more people join us in building the future,” Sheeva Slovan, a spokesperson for Meta’s Reality Labs unit, said in a statement to CNN.

    Apple and Meta may end up racing to see not only who can get consumers to choose their product, but whether either of them can get millions of customers to buy into this new wave of technology at all.

    Apple in many ways seems to have the upper hand, with its existing loyal customer base of more than two billion devices, impressive hardware chops and access to hundreds of stores where consumers can potentially try on the device.

    “Everything up until this moment has kind of felt like the pregame for me, of preparing for this moment when Apple would take this to the public consciousness and let people know, hey, these technologies are for real, this isn’t just a gimmick,” Eric Alexander, founder of VR music experiences app Soundscape, told CNN following Apple’s announcement.

    The iPhone maker also appears to be marketing its device differently. Apple chose not to focus on the term “virtual reality,” nor did it show off disembodied avatars without legs inhabiting a virtual world, as Meta did initially. Instead, Apple played up the headset’s potential to integrate much more seamlessly with users’ real-world lives through augmented reality, a technology that can overlay virtual objects on live video of the real world.

    “I don’t think Apple views itself in competition with Meta,” said Julie Ask, principal analyst at Forrester. Zuckerberg is “all in on this virtual world, and that’s not what Apple is about. Apple is saying, ‘We don’t think people want to be disconnected from the real world … we want to enhance the world that consumers are in.’”

    The Quest 3 headset that Meta teased last week is also a mixed reality headset with AR capabilities, so it seems likely that Meta may veer closer to Apple’s approach in the future. However, a demo video Zuckerberg posted to Instagram seems to imply the device is still largely gaming focused.

    Meta teased its new Quest 3 headset days before Apple's Vision Pro announcement.

    Many analysts say that the biggest hurdle to consumer adoption of mixed reality headsets is ensuring that there is a wide range of potential use cases and experiences available on the devices.

    While Meta has introduced features that let users play games, explore virtual worlds, watch YouTube videos, workout, chat with friends and more, it has yet to convince most consumers that the device is worthwhile.

    Apple’s announcement at WWDC seems targeted at ensuring that the large base of developers in its ecosystem will help create enticing new experiences for the device before its launch.

    Developing new AR and VR apps requires significant investment, not to mention hands-on time with a device, Alexander said, so it may be a while before a wide range of experiences are available for the Vision Pro. The lack of controllers and other accessories could also make it difficult for developers to create certain types of apps, such as games, for the new device.

    Still, at the Monday event, Apple touted features from Disney, such as Disney+, and gaming company Unity, that will be available on the device from the start, on top of the iPhone maker’s existing suite of services.

    Apple’s Vision One “isn’t a device that I will buy and think, ‘Oh, now I need to go buy content,’” said Forrester’s Ask. “This is a device that if I do buy it, it has a very intuitive interface … it’s a place I can watch my Apple TV and movies and all of those things. It’s not, ‘Oh, I bought this device now what do I do with it?’”

    D.A. Davidson analyst Tom Forte compared the Vision Pro’s launch to the introduction of the iPhone following the Blackberry, an unfavorable comparison that would likely make Zuckerberg grimace. (Forte did note that Meta’s headset seems less likely to fade into irrelevance, as the Blackberry eventually did.)

    “Blackberry had proven that there was a market for smartphones and had built a dominant position, but what it didn’t really do was the apps,” Forte said, adding that the iPhone introduced the idea of having a range of different use cases for one device. “In some regards, it’s like the iPhone where we’re going to need to see the ecosystem develop over time for this to succeed.”

    But if Apple does succeed at driving widespread consumer adoption of mixed reality headsets, Meta could still benefit by extension by being the budget pick, Forte said.

    Meta’s stock rose slightly Tuesday following Apple’s announcement.

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  • Elizabeth Holmes objects to government requesting she pay $250 a month to victims after prison | CNN Business

    Elizabeth Holmes objects to government requesting she pay $250 a month to victims after prison | CNN Business

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    CNN
     — 

    Elizabeth Holmes, the disgraced former Theranos CEO, has “limited financial means” and should not be forced to pay $250 a month to victims of her crimes after she is released from prison, her lawyers argued in a court filing on Monday.

    The move from Holmes’ attorneys comes after federal prosecutors said in a separate filing last week that “clerical errors” had resulted in no payment schedule being set for Holmes’ restitution after she is released from prison. Holmes and former Theranos COO Ramesh “Sunny” Balwani were previously ordered to pay $452 million in restitution to victims of their crimes.

    Holmes reported to prison late last month in Texas to serve out her more than 11-year sentence. She was convicted early last year on multiple charges of defrauding investors while running the failed blood-testing startup Theranos.

    Federal prosecutors asked that once Holmes is on supervised released, criminal monetary penalties should be paid monthly in the amount of $250, or at least 10% of her wages, whichever is greater.

    In the latest filing, Holmes’ attorneys argued “there is no basis in the record for the payment structure in the government’s request,” but did not object to her being asked to start paying $25 per quarter as part of her restitution while she is in prison.

    Holmes, once a paper billionaire, could hold a job at the Federal Prison Camp in Bryan, Texas, with hourly wages ranging from $0.12 to $1.15, according to the prison’s handbook.

    Theranos once claimed to have invented technology that could test for a range of conditions using a few drops of blood. It was valued at some $9 billion at its peak and raised money from a long list of prominent investors. Then it all began to unravel after a damning Wall Street Journal report cast doubt on the company’s claims.

    As part of the original restitution order, some $125 million is owed to media mogul Rupert Murdoch, as well as millions in payments to other Theranos investors.

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  • Amazon reinstates Alabama warehouse worker and union leader weeks after her firing | CNN Business

    Amazon reinstates Alabama warehouse worker and union leader weeks after her firing | CNN Business

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    New York
    CNN
     — 

    An Amazon worker and union organizer has been given her job back after she appealed her firing by the e-commerce giant earlier this month.

    Amazon on Thursday confirmed that it had reinstated Jennifer Bates — who became the face of the effort to unionize an Amazon facility in Bessemer, Alabama — following its appeals process. Bates had received notice of her termination from Amazon in early June.

    “Amazon was wrong, they tried to fire me and stifle a movement, but the movement pushed back, and I’m incredibly humbled by the global outpouring of support for my unjust termination,” Bates said in a statement Thursday about Amazon’s decision to reverse her firing.

    Bates will be reinstated with back pay per Amazon’s standard process, according to the company.

    At the time of her firing, Amazon had said that company records indicated “that Ms. Bates failed to show up to work for a period of time and didn’t respond or provide documentation to excuse her absences.” The Retail, Wholesale and Department Store Union (RWDSU), which spearheaded the so-far unsuccessful effort to unionize the Bessemer facility, said at the time that Bates was fired by Amazon after returning from medical leave following injuries sustained on the job.

    During its appeals review process, Amazon says it determined that Bates had failed to respond to requests for additional information regarding her leave, but that the company could have been more clear about what information was needed.

    Amazon spokesperson Mary Kate Paradis said in a statement to CNN that “as is our standard process for this type of situation, Ms. Bates had the opportunity to, and did, appeal her termination. After a full review of her case, the decision was made to reinstate her.”

    Bates’ firing had threatened to renew tensions between Amazon

    (AMZN)
    and workers who were spurred to organize earlier in the pandemic amid frustrations with the company’s response to the health crisis and a broader spotlight on racial inequities in the United States. In 2021, Bates testified before lawmakers about her “grueling” experience working at one of the company’s warehouses.

    Amazon workers at a New York warehouse voted to form the company’s first US union last year, although Amazon has since refused to recognize the union or come to the bargaining table. Other efforts to unionize Amazon facilities, including one across the street from the New York warehouse, have failed.

    The closely watched union election at the Bessemer facility ended with the results too close to call due to hundreds of challenged ballots. The National Labor Relations Board is still reviewing challenges brought against Amazon by the union accusing the company of illegal activity during the campaign. (Amazon has previously filed its own objections to the RWDSU’s conduct.)

    –CNN’s Catherine Thorbecke contributed to this report.

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  • Samsung flags massive drop in quarterly profit as chip glut drags on | CNN Business

    Samsung flags massive drop in quarterly profit as chip glut drags on | CNN Business

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    Samsung Electronics reported a likely 96% plunge in second-quarter operating profit on Friday, largely in line with forecasts, as an ongoing chip glut drives large losses in the tech giant’s key business despite a supply cut.

    The world’s largest memory chip and smartphone maker estimated its operating profit fell to 600 billion won ($459 million) in April to June, from 14.1 trillion won a year earlier in a short preliminary earnings statement.

    It would be Samsung’s lowest profit for any quarter since a 590 billion won profit in the first quarter of 2009, according to company data.

    The profit was largely in line with a 555 billion won Refinitiv SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.

    Shares in Samsung

    (SSNLF)
    fell 1.4% in early morning trade, underperforming a 0.6% drop in the wider market.

    Samsung is due to release detailed earnings on July 27.

    In the January to March quarter, the company reported a whopping 4.58 trillion won loss in its chip business as memory chip prices fell further and its inventory values were slashed.

    But in the second quarter, losses in Samsung’s memory chip business likely shrank due to more sales of DRAM chips — used in PCs, mobile phones and servers — analysts said.

    “Although memory prices fell, the drop was not as large as feared,” said Park Kang-ho, analyst at Daishin Securities.

    “When full earnings are announced, investors will be looking for third-quarter signals — how much effect the production cut will have in the third quarter, any demand recovery, and whether higher-end DRAM and high bandwidth memory (HBM) products are set to improve (Samsung’s) profit mix.”

    The memory chip downturn that began last year is expected to hit bottom in the third quarter, analysts said, although the rebound may start small.

    “DRAM memory prices are expected to rebound in earnest from the fourth quarter, and double-digit quarterly increases are expected from the second half of 2024,” said Greg Roh, head of research at Hyundai Motor Securities.

    “Unlike its competitors, (Samsung) is expected to maintain its investment in memory chips this year … which will pay off in increased market dominance in 2025.”

    In the mobile business, Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual – seen by analysts as a bid to dominate the premium phone market for longer before rival Apple

    (AAPL)
    releases its next iPhone.

    However, analyst outlooks for Samsung’s mobile profits in the third quarter were mixed as consumer sentiment in the global smartphone market remained weak, despite some recent recovery in economic indicators.

    Revenue in April to June likely fell 22% from the same period a year earlier to 60 trillion won, Samsung said in the statement.

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  • Meta’s Threads app rolls out first big batch of updates | CNN Business

    Meta’s Threads app rolls out first big batch of updates | CNN Business

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    New York
    CNN
     — 

    Meta’s Twitter rival app Threads on Tuesday rolled out its first major batch of updates since its launch two weeks ago as it works to maintain momentum.

    The new features include a translation button and a tab on users’ activity feed dedicated to showing who’s followed them, according to a post from Cameron Roth, a software engineer working on Threads.

    All new features should be available to iOS Threads users by the end of Tuesday, Roth said.

    Threads users have been clamoring for updates since its launch. The new app attracted over 100 million user sign-ups in less than a week, but it still lacks many of the features popular on Twitter and other platforms, including direct messaging and a robust search function.

    User engagement on Threads has dipped since its first week, according to web traffic analysis firm Similarweb. And Meta executives have teased plans to improve the app in hopes of getting users to keep coming back.

    “Early growth was off the charts, but more importantly 10s of millions of people now come back daily … The focus for the rest of the year is improving the basics and retention,” Meta CEO Mark Zuckerberg said in a Threads post Monday.

    Tuesday’s updates also include the ability to subscribe and receive notifications from accounts a user doesn’t follow and a “+” button that lets users follow new accounts from the replies on a post, as well as bug fixes and other improvements.

    Instagram head Adam Mosseri, who is overseeing Threads, has also hinted at plans to introduce a desktop version of the app as well as a feed of only accounts a user follows and an edit button.

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  • Google is building an AI tool for journalists | CNN Business

    Google is building an AI tool for journalists | CNN Business

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    CNN
     — 

    Google is developing an artificial intelligence tool for news publishers that can generate article text and headlines, the company said, highlighting how the technology may soon transform the journalism industry.

    The tech giant said in a statement that it is looking to partner with news outlets on the AI tool’s use in newsrooms.

    “Our goal is to give journalists the choice of using these emerging technologies in a way that enhances their work and productivity,” a Google spokesperson said, “just like we’re making assistive tools available for people in Gmail and in Google Docs.”

    The effort was first reported by The New York Times, which said the project is referred to internally as “Genesis” and has been pitched to The Times, The Washington Post and News Corp, which owns The Wall Street Journal.

    Google’s statement did not name those media companies but said the company is particularly focusing on “smaller publishers.” It added that the project is not aimed at replacing journalists nor their “essential role … in reporting, creating, and fact-checking their articles.”

    The new tool comes as tech companies, including Google, race to develop and deploy a new crop of generative AI features into applications used in the workplace, with the promise of streamlining tasks and making employees more productive.

    But these tools, which are trained on information online, have also raised concerns because of their potential to get facts wrong or “hallucinate” responses.

    News outlet CNET had to issue “substantial” corrections earlier this year after experimenting with using an AI tool to write stories. And what was supposed to be a simple AI-written story on “Star Wars” published by Gizmodo earlier this month similarly required a correction. But both outlets have said they will still move forward with using the technology.

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  • TikTok brings in text posts to rival Elon Musk’s X | CNN Business

    TikTok brings in text posts to rival Elon Musk’s X | CNN Business

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    London
    CNN
     — 

    TikTok will now allow users to post text-only content for the first time in a challenge to Elon Musk’s beleaguered X, formerly known as Twitter.

    Announcing the new post format Monday, the video streaming platform said it would broaden “options for creators to share their ideas and express their creativity.”

    “With text posts, we’re expanding the boundaries of content creation for everyone on TikTok, giving the written creativity we’ve seen in comments, captions, and videos a dedicated space to shine,” the company said in a statement.

    Users are now able to share “stories, poems, recipes, and other written content,” which can be customized by adding sound, stickers and background colors, among other features.

    In perhaps the most direct challenge to the X platform, text posts on TikTok will allow users to tag other accounts and add hashtags that relate to trending topics.

    The latest move by TikTok, which is owned by China’s ByteDance, may prove to be another knock for Musk, whose takeover of X in October has resulted in mass layoffs, a huge drop in advertising revenue and controversial changes to the platform’s verification policy.

    Earlier this month, Facebook’s parent company, Meta, launched Threads, a rival social media site. Threads surpassed 100 million user sign-ups in its first week.

    Musk re-branded Twitter to X Monday, giving the platform a new website domain and logo.

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  • Elizabeth Warren and Lindsey Graham want a new agency to regulate tech | CNN Business

    Elizabeth Warren and Lindsey Graham want a new agency to regulate tech | CNN Business

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    Washington
    CNN
     — 

    Two US senators are calling for the creation of a new federal agency to regulate tech companies such as Amazon, Google and Meta, in the latest push by members of Congress to clamp down on Big Tech.

    Under the proposal released Thursday by Sen. Elizabeth Warren, a Massachusetts Democrat, and Sen. Lindsey Graham, a South Carolina Republican, Congress would establish a new regulatory body with the power to sue platforms — or even force them to stop operating — in response to various potential harms to customers, rivals and the general public, including anticompetitive practices, violations of consumer privacy and the spread of harmful online content.

    The new regulator would have broad jurisdiction, covering not just social media platforms or e-commerce but also the rapidly evolving field of artificial intelligence. The bill targets tech platforms including Amazon, Apple, Google, Meta, Microsoft, TikTok and Twitter, which now officially known as X, a Senate aide told CNN, though the companies aren’t directly named in the legislation.

    “For too long, giant tech companies have exploited consumers’ data, invaded Americans’ privacy, threatened our national security, and stomped out competition in our economy,” Warren said in a statement. “This bipartisan bill would create a new tech regulator and it makes clear that reining in Big Tech platforms is a top priority on both sides of the aisle.”

    The push comes after years of stalled attempts to impose new rules on large tech companies and multiple failed efforts to block deals on antitrust grounds. Some AI companies have openly welcomed the creation of a special-purpose AI regulator. Warren and Graham’s legislation, the Digital Consumer Protection Commission Act, would be the first bipartisan bill of its kind, though a similar proposal by Sen. Michael Bennet, a Colorado Democrat, has been circulating since last year. Thursday’s proposal differs from Bennet’s bill, the aide said, in that it is in some ways more specific in its restrictions on the tech industry.

    The new commission would have far-reaching authority under the bill, with the ability to make regulations for the industry, investigate claims of wrongdoing and pursue enforcement actions. For the largest companies under its purview — defined by a mixture of user numbers, revenue figures, market capitalization and other metrics — the commission would issue operating licenses that could be revoked in the case of repeat offenses, according to a copy of the bill text reviewed by CNN.

    “Enough is enough. It’s time to rein in Big Tech,” Graham and Warren wrote in an op-ed in the New York Times Thursday. “And we can’t do it with a law that only nibbles around the edges of the problem. Piecemeal efforts to stop abusive and dangerous practices have failed.”

    The legislation would also ban certain practices outright and direct the new agency to police any violations. For example, companies such as Google would not be able to prioritize its own apps and services at the top of search results or use noncompete agreements to block employees from going to work for a rival startup.

    Companies covered by the legislation would also face restrictions on how they can use Americans’ personal information for targeted advertising, in a privacy-focused move.

    And the legislation seeks to address the type of national security concerns that have been linked to TikTok by forcing “dominant” platforms to be either based in the United States or controlled by US citizens, and by restricting the companies’ ability to store data in certain countries.

    In unveiling the bill, the lawmakers drew parallels between their proposed US agency and other sector-specific regulators such as the Federal Communications Commission, which oversees the telecom and broadcast industries, and the Nuclear Regulatory Commission, which regulates nuclear power.

    But the legislation could also lead to some areas of overlap — for example, with the Federal Trade Commission and the Department of Justice overseeing antitrust issues, as well as with the FTC on consumer protection issues. The Senate aide told CNN that the bill’s intent is to see the new tech-focused commission working together with the FTC and DOJ, and that the legislation ensures both existing agencies will also be able to conduct their own enforcement as well.

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