Tag Archives: Business

23andMe will pay $30 million to settle 2023 data breach lawsuit

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23andMe is close to settling a proposed class action lawsuit filed against the company over a data breach that compromised 6.9 million users' information. According to the preliminary settlement filing, the DNA testing company has agreed to pay $30 million to affected customers, as well as to conduct annual computer scans and cybersecurity audits for three years. A website will be built to notify people eligible to a portion of the settlement fund and to facilitate payments. Affected users will also be sent a link where they can delete all their information from the service, and they'll be able to enroll to a three-year Privacy & Medical Shield + Genetic Monitoring program for free. A judge still has to approve those terms. 

In October 2023, the company admitted that the DNA Relatives profile information of roughly 5.5 million customers and the Family Tree profile information of 1.4 million DNA Relative participants had been leaked. It later revealed in a legal filing that the bad actors started breaking into customer accounts in late April 2023 and that they had access to its systems until September that year. It said that the hackers used a technique called credential stuffing, which uses previously compromised login credentials to access customer accounts. 

The breach led to several class action lawsuits filed against the company, including one that accused 23andMe of failing to notify the plaintiffs that they were specifically targeted for having Chinese and Ashkenazi Jewish heritage. In the settlement agreement [PDF] for the consolidated lawsuit, 23andMe noted that it "denies the claims and allegations set forth in the Complaint" and that it "denies that it failed to properly protect the Personal Information of its consumers and users." 

According to Reuters, 23andMe describes its financial condition as "extremely uncertain." In its financial report for the 2024 fiscal year, it revealed that it earned a total revenue of $220 million, down 27 percent from a $299 million revenue the year before. A huge chunk of the settlement money will come from cyber insurance, though, which the company expects to cover $25 million out of the $30 million total. 

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/23andme-will-pay-30-million-to-settle-2023-data-breach-lawsuit-150058702.html?src=rss

Unity dumps the runtime fee that caused a developer revolt

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Unity has ditched a controversial fee it was charging game developers. The game engine maker says it’s focusing on its seat-based subscription fee (i.e. an annual payment for each person using the software at a studio), though there will be a price increase for Pro and Enterprise users.

The company announced the runtime fee a year ago. Initially, it was going to make developers pay up every single time someone downloaded one of their games after certain thresholds were met. The backlash was swift and intense, with some industry figures suggesting that it would make Unity unviable for indie developers. Many developers (some of whom were years deep into making a game with Unity) were outraged over the sudden change and some threatened to abandon the engine.

Unity apologized a few days later and made some changes to the runtime fee. But the policy was a near-disaster for the company. Unity CEO and president John Riccitiello left through the back door the following month. In November, Unity laid off 265 workers in a move it attributed to its Weta Digital deal, but this occurred amid the company's ill-fated attempts to squeeze more revenue from developers. Two months later, Unity said it would lay off 1,800 people, about a quarter of its total workforce.

Current CEO Matt Bromberg, who took on the role in May, is hoping to rebuild trust (or, perhaps, unity) with developers by abandoning a loathed pricing model. The runtime fee is gone, effective immediately. The Unity Personal plan will remain free for developers with under $200,000 in revenue and funding. They'll also have the option to remove the Made with Unity splash screen from their games starting with Unity 6, which will arrive later this year.

On the flipside, pricing and annual revenue thresholds for Unity Pro and Unity Enterprise subscribers are changing on January 1. Pro users (those with at least $200,000 of total annual revenue and funding have to go with this plan) will need to pay $2,200 per seat per year. That's an eight percent increase. As for Unity Enterprise, which is required for developers with north of $25 million in annual funding and revenue, a 25 percent price increase will apply. Pricing is customized based various factors, such as the products and services Enterprise customers require.

Bromberg says that, going forward, Unity plans to consider possible price increases only on an annual basis. Developers will also be able to continue using an existing version of Unity on existing terms if they're not on board with changes to the Editor software.

"We want to deliver value at a fair price in the right way so that you will continue to feel comfortable building your business over the long term with Unity as your partner. And we’re confident that if we’re good partners and deliver great software and services, we’ve barely scratched the surface of what we can do together," Bromberg wrote in a blog post. "Canceling the Runtime Fee for games and instituting these pricing changes will allow us to continue investing to improve game development for everyone while also being better partners."

This article originally appeared on Engadget at https://www.engadget.com/gaming/unity-dumps-the-runtime-fee-that-caused-a-developer-revolt-181559332.html?src=rss

An Apple Store in Oklahoma City is close to approving an union agreement for its workers

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Talks between Apple and the union for the Apple Store in Oklahoma City have produced a tentative agreement that includes new benefits and protections for its staff. The Penn Square Mall Apple Store in Oklahoma City announced they’ve reached a “tentative labor agreement” with Apple and the Communication Workers of America (CWA), according to a released statement.

Terms are still being negotiated between both parties but the benefits for the store’s employees would be significant. The three-year agreement reached between the CWA and Apple would give employees a wage increase of up to 11.5 percent. An Apple spokesperson said by email that if the contract is ratified, employees would receive a 4 percent raise in the first year of employment and 3 percent in the second and third year each “based on employee performance.”

The agreement would also offer employees guaranteed paid time off and health and other benefits, allow employees to have a say in scheduling and the establishment of a “safer and more democratic workplace” through a grievance submission process with committees overseeing safety, health and working relations. An Apple spokesperson also noted the scheduling options “were provided to all other US stores in 2022.”

The Oklahoma City Apple Store had been working to form a union since 2022, becoming the second Apple Store in the US to unionize. Employees passed a strike authorization vote in August that passed with unanimous support and started a picket in front of the store ahead of bargaining sessions in early September. Workers will vote to ratify the tentative agreement on September 22.

CWA District 6 Vice President Derrick Osobase called the agreement achievement “a historic day for our members who have now secured a contract at the world’s most profitable company.”

The Apple Store in the Towson Town Center in Towson, Maryland became the first location to unionize. Members approved the union in 2022 with the International Association of Machinists and Aerospace Workers (IAM). A store in the Cumberland Mall in Atlanta, Georgia tried to form a union in 2022 with the CWA but workers called it off accusing Apple of committing “repeated violations of the National Labor Relations Act.”

This article originally appeared on Engadget at https://www.engadget.com/big-tech/an-apple-store-in-oklahoma-city-is-close-to-approving-an-union-agreement-for-its-workers-222605021.html?src=rss

UK watchdog claims Google’s ad tech practices are harming competition

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Google is facing yet more scrutiny over its ad tech practices after the UK’s competition watchdog provisionally found that the company is abusing its dominant market position. In a statement of objections, the Competition and Markets Authority said Google is harming competition in the country “by using its dominance in online display advertising to favor its own ad tech services.”

The watchdog contends that, since 2015, Google has taken advantage of its dominant position in the sector as the operator of the Google Ads and DV260 ad-buying tools and DoubleClick For Publishers, a publisher ad server, to bolster its AdX advertising exchange. The CMA said that AdX is at the heart of the company's ad tech stack and it's the platform on which it charges the highest fees to advertisers — approximately 20 percent of each bid for ad space that's processed there.

The CMA provisionally found that "the vast majority of publishers and advertisers use Google’s ad tech services in order to bid for and sell advertising space" on websites. By preferencing its own services, "Google disadvantages competitors and prevents them competing on a level playing field to provide publishers and advertisers with a better, more competitive service that supports growth in their business," the CMA stated.

The statement of objections gives Google a chance to provide feedback and the CMA will consider those representations before it makes any final decision. A case decision group comprising three people (none of whom were involved in the preliminary investigation or sending the statement of objections). If the CMA ultimately determines that Google has infringed competition rules, it can fine the company up to 10 percent of its global annual revenue and order legally binding changes to the ad tech business.

Google disagrees with the decision and “will respond accordingly,” Dan Taylor, vice president of Google Ads, said. “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” Taylor told CNBC in a statement. “Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector. The core of this case rests on flawed interpretations of the ad tech sector.”

Regulators elsewhere have taken aim at Google's position in the ad tech space. The European Commission accused the company of "abusive practices" in the online ad space in June last year. The EC said that a potential order for Google to implement remedies may not be enough to resolve those practices. That could lead to the EU breaking up Google's ad business.

Meanwhile, the Department of Justice and Google are set to go head-to-head in a trial that will start on Monday. The agency has called for the company's ad tech business to be broken up, citing an alleged illegal monopoly Google holds in that market. Google failed in an attempt to have the case dismissed. Last month, a federal judge ruled that Google illegally abused a monopoly over the search industry following a trial that stemmed from a separate DOJ lawsuit.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/uk-watchdog-claims-googles-ad-tech-practices-are-harming-competition-144944451.html?src=rss

Verizon will buy Frontier for $20 billion to expand its fiber network

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Verizon is acquiring Frontier for $20 billion, the provider announced one day after reports emerged that the two companies were in talks. The deal will expand Verizon's fiber network across the United States, allowing it to better compete with its rival, AT&T. Frontier will add 2.2 million fiber subscribers in 25 states, extending Verizon's reach to about 10 million customers in 31 states and Washington, DC. Verizon has experienced slowing revenue, and acquiring Frontier could give it the boost it needed in less time than it would take to expand its own network. 

"The acquisition of Frontier is a strategic fit," said Verizon Chairman and CEO Hans Vestberg in a statement. "It will build on Verizon's two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network."

Frontier has experienced a rocky few years. The company declared Chapter 11 bankruptcy in 2020 and pivoted to a "leaner business" but faced concerns about emptying its bank account before finishing ongoing upgrades. Furthermore, the FTC sued Frontier in 2021, claiming it misrepresented its actual speeds. The company had to pay over $8.5 million and remove all false information. 

This article originally appeared on Engadget at https://www.engadget.com/verizon-will-buy-frontier-for-20-billion-to-expand-its-fiber-network-114532971.html?src=rss

Report: A quarter of X advertisers plan to cut spending next year

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X’s advertising woes are about to get a whole lot worse, according to a new report from Kantar, details of which were published by Advanced Television. The market research firm found that 26 percent of marketers plan to cut their spending on X in the coming year, and that advertisers’ trust in X is “historically low.”

Kantar’s report, which is based on interviews with 18,000 consumers and 1,000 marketers from around the world, underscores just how far X’s advertising business has declined since Elon Musk took over the company. Over the last year and a half, the platform has seen numerous high-profile advertisers halt or slow down their spending amid concerns about hate speech and other toxic content.

Musk has also antagonized major advertisers, saying that brands worried about hate speech should “go fuck yourself.” he’s also accused advertisers of “blackmail,” and recently sued an industry group and several global companies for conducting an “illegal boycott” of the platform. Of note, Kantar found that only 4 percent of marketers believe X is safe for brands.

X didn’t immediately respond to a request for comment. The company told the Financial Times that “advertisers know that X now offers stronger brand safety, performance and analytics capabilities than ever before, while seeing all-time-high levels of usage.”

This article originally appeared on Engadget at https://www.engadget.com/social-media/report-a-quarter-of-x-advertisers-plan-to-cut-spending-next-year-235447747.html?src=rss

Verizon is reportedly near a deal to buy broadband provider Frontier Communications

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Verizon is reportedly near a deal to buy fiber provider Frontier Communications. On Wednesday, The Wall Street Journal said that an announcement could come as early as this week, provided discussions don’t “hit any last-minute snags.”

Frontier has a market value of over $7 billion and provides broadband to around three million locations in 25 states. The company would help Verizon boost its Fios fiber network and better compete with AT&T. The carrier has seen slowing wireless revenue and views fiber investment as a growth area. Acquiring companies with existing infrastructure, like Frontier, is potentially less expensive and time-consuming than rolling out its own network.

Based in Dallas, Frontier is currently upgrading its copper landline system to fiber — enabling it to offer a 5Gbps symmetrical plan. The company filed for Chapter 11 bankruptcy in 2020. It pivoted to a “leaner business,” as the WSJ describes, before running into concerns that it would run out of money before it finishes its current upgrades.

The FTC sued the company in 2021 for misrepresenting its speeds. Under a 2022 settlement, Frontier was required to stop lying about its internet performance, dole out over $8.5 million and install fiber service in 60,000 California homes over four years.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/verizon-is-reportedly-near-a-deal-to-buy-broadband-provider-frontier-communications-210317747.html?src=rss

The US government may be preparing to investigate internet retail giants like Shein and Temu

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Online retailers like Temu and Shein are known for selling cheap products like baby clothes, kitchen gadgets and electronics. The Consumer Product Safety Commission (CPSC) wants to know the true costs that foreign online retailers are cutting to sell these products at lower prices.

CPSC commissioners Peter Feldman and Douglas Dziak released a joint statement today calling for their staff to evaluate the operations of foreign e-commerce sites. The statement cites Shein and Temu as two online retail companies that “raise specific concerns.”

Recent news reports of “deadly baby and toddlers products” being sold on these platforms started to raise red flags at the CPSC. A recent report from The Information found several baby and children’s products on Shein deemed to be unsafe, such as children’s drawstring hoodies for sale that had been flagged by regulators as a strangulation risk. The fashion industry news site Fashion Dive found Temu selling children’s pajamas by brands that the CPSC ruled violated “the flammability standards for children’s sleepwear.”

A Shein spokesperson said in a statement to CNN that its customers’ safety remains their “top priority and we are investing millions of dollars to strengthen our compliance programs.” Meanwhile, a Temu spokesperson told us that it required "all sellers on [its] platform to comply with applicable laws and regulations, including those related to product safety." The spokesperson added: "Our interests are aligned with the US Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation."

The CSPC isn’t the first US government agency to scrutinize foreign e-commerce companies like Shein and Temu. Last year, the US-China Economic and Security Review Commission issued a brief detailing the challenges presented by “Chinese ‘fast fashion’ platforms.” The Commission questioned these platforms’ alleged exploitations of trade loopholes and concerns about its sale of items that posed product safety risks, violated copyrights and trademarks and used forced labor to make and sell products.

Update, September 05, 2024, 12:19AM ET: This story has been updated to add Temu's statement.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-us-government-may-be-preparing-to-investigate-internet-retail-giants-like-shein-and-temu-193218089.html?src=rss

Judge denies Media Matters’ motion to dismiss X’s not-libel lawsuit

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A Texas judge denied Media Matters for America’s request for a dismissal on Thursday allowing X’s lawsuit over alleged anti-semitic and racist content. The Verge reported that Northern District of Texas Judge Reed O’Connor dismissed the request for a dismissal paving the way for X’s lawsuit against Media Matters to continue.

Media Matters submitted its dismissal request in early March on the grounds that X’s case lacked “personal jurisdiction,” an “improper venue” and the “failure to state a claim.” O’Connor dismissed all of those claims, according to court records.

The lawsuit filed last year in federal court seeks damages from the media watchdog group over “maliciously manufactured” images reporting that X’s platform placed Neo-Nazi and white-nationlist content next to advertisers’ images causing advertisers to flee the site. The images Media Matters used weren’t manufactured but X’s claim is that its dogged pursuit of ads’ placement with racist content by using certain accounts to bypass ad filters caused irreparable harm to the social media giant.

X owner Elon Musk’s other companies are located in Texas but aren’t directly connected to the Media Matters lawsuit. X closed its San Francisco offices earlier this month and owner Elon Musk announced in July that X’s headquarters will move to Austin. Tesla moved its headquarters from California to the Lone Star State in 2021 and SpaceX from Delaware earlier this year when a judge threw out a $56 billion pay package from the state.

However, in dismissing the personal jurisdiction argument, O’Connor noted that two of X’s “blue-chip” advertisers like AT&T and Oracle included in Media Matters’ coverage are based in Texas. He cited the landmark 2002 Internet defamation case Revell v. Lidov quoting the 5th Circuit Court of Appeals’ assertion that “if you are going to pick a fight in Texas, it is reasonable to expect that it be settled there.”

This article originally appeared on Engadget at https://www.engadget.com/social-media/judge-denies-media-matters-motion-to-dismiss-xs-not-libel-lawsuit-204732720.html?src=rss

Yelp files antitrust lawsuit against Google

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Yelp has filed an antitrust lawsuit against Google. As CNN reports, the move caps off years of animosity between the two companies, with Yelp alleging that Google has leveraged its control over online searching to dominate local queries and prioritize its own reviews. 

"Google abuses its monopoly power in general search to keep users within Google’s owned ecosystem and prevents them from going to rival sites," Yelp Co-founder and CEO Jeremy Stoppelman said in a blog post announcing the suit. "This anticompetitive conduct siphons traffic and advertising revenue from vertical search services, like Yelp, that provide objectively higher quality local business content for consumers."

The US lawsuit could carry extra weight following a Department of Justice case where the judge deemed Google a monopolist over search. The August ruling did not place any sanctions on Google, but it's likely that Yelp's case will be the first of many brought by the tech company's competitors.

In response to a request for comment, a Google spokesperson told Engadget:

“Yelp’s claims are not new. Similar claims were thrown out years ago by the FTC, and recently by the judge in the DOJ’s case. On the other aspects of the decision to which Yelp refers, we are appealing. Google will vigorously defend against Yelp’s meritless claims.”

While this lawsuit centers on the US, Yelp has also been sounding off about Google's practices overseas. The European Digital Markets Act was meant to loosen some of the company's stranglehold over search results with rules to prevent massive tech businesses from favoring their own services. But Yelp argued that Google's attempt at DMA compliance actually made users less likely to leave the Google ecosystem.

In a statement regarding the suit, Yelp’s General Counsel Aaron Schur said:

"Yelp’s antitrust lawsuit against Google addresses how Google abuses its illegal monopoly in general search to engage in anticompetitive conduct, including self-preferencing its own inferior local product, to dominate the local search and local search advertising markets. For years, Google has leveraged its monopoly in general search to pad its own bottom line at the expense of what’s best for consumers, innovation, and fair competition. By willfully engaging in exclusionary, anticompetitive conduct, Google has driven traffic and revenue away from competitors, made it harder for them to scale, and increased their costs, while degrading consumer choice, to grow its own market power.

Judge Amit Mehta’s recent ruling in the government’s antitrust case against Google, finding Google illegally maintained its monopoly in general search, is a watershed moment in antitrust law, and provides a strong foundation for Yelp’s case against Google. In addition to injunctive relief, Yelp seeks a remedy that ensures Google can no longer self-preference in local search. The harms caused by Google’s self-preferencing are not unique to Yelp, and we look forward to telling our story in court."

Update, August 28, 8:15PM ET: This story was updated after publish to include a comment from a Google spokesperson and an additional comment from Yelp's General Counsel.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/yelp-files-antitrust-lawsuit-against-google-230228737.html?src=rss