An anonymous reader quotes a report from the New York Times: _The Justice Department is in the late stages of an investigation into Apple and [could file a sweeping antitrust case](https://www.nytimes.com/2024/01/05/technology/antitrust-apple-lawsuit-us.html) taking aim at the company's strategies to protect the dominance of the iPhone as soon as the first half of this year, said three people with knowledge of the matter. The agency is focused on how Apple has used its control over its hardware and software to make it more difficult for consumers to ditch the company's devices, as well as for rivals to compete, said the people, who spoke anonymously because the investigation was active. Specifically, investigators have examined how the Apple Watch works better with the iPhone than with other brands, as well as how Apple locks competitors out of its iMessage service. They have also scrutinized Apple's payments system for the iPhone, which blocks other financial firms from offering similar services, these people said._ _The Justice Department is closing in on what would be the most consequential federal antitrust lawsuit challenging Apple, which is the most valuable tech company in the world. If the lawsuit is filed, American regulators will have sued four of the biggest tech companies for monopolistic business practices in less than five years. The Justice Department is currently facing off [against Google](https://tech.slashdot.org/story/23/10/19/1455224/in-antitrust-trial-google-argues-that-smart-employees-explain-its-success) in two antitrust cases, focused on [its search and ad tech businesses](https://tech.slashdot.org/story/23/10/27/1726255/google-paid-a-whopping-263-billion-in-2021-to-be-default-search-engine-everywhere), while the Federal Trade Commission has [sued Amazon](https://news.slashdot.org/story/23/09/26/1620208/ftc-and-17-states-sue-amazon-alleging-illegal-online-marketplace-monopoly) and [Meta](https://tech.slashdot.org/story/22/01/14/2223247/metas-oculus-unit-faces-ftc-led-probe-of-competition-practices) for stifling competition. The Apple suit would likely be even more expansive than previous challenges to the company, attacking its powerful business model that draws together the iPhone with devices like the Apple Watch and services like Apple Pay to attract and keep consumers loyal to its products. Rivals have said that they have been denied access to key Apple features, like the Siri virtual assistant, prompting them to argue the practices are anticompetitive._

The European Union says Microsoft’s multibillion-dollar investment in ChatGPT-maker OpenAI could trigger a merger investigation LONDON -- Microsoft's multibillion-dollar investment in ChatGPT-maker OpenAI could trigger a European Union merger investigation, the bloc's executive branch said Tuesday. The European Commission said it's “checking whether Microsoft’s investment in OpenAI might be reviewable” under regulations covering mergers and acquisitions that would harm competition in the 27-nation EU. The review could lead to a formal investigation into whether the deal should be unconditionally cleared, allowed with concessions from the companies or blocked. Britain's antitrust watchdog opened a similar review last month. Antitrust enforcers in the U.S. also have signaled concerns about competition in the AI industry. The Federal Trade Commission in November approved new measures enabling it to more easily investigate AI products and services, noting that “AI can raise competition issues in a variety of ways, including if one or just a few companies control the essential inputs or technologies that underpin AI.” OpenAI has received several rounds of funding from Microsoft, including an initial $1 billion in 2019 and a multibillion-dollar investment last year. OpenAI's generative AI chatbot ChatGPT has captured world attention with its advanced capabilities, catapulting the San Francisco-based startup to the top ranks of AI companies. Generative AI systems like ChatGPT can spit out new text, images, videos or audio recordings based on prompts from users. The European Commission, the bloc's top antitrust enforcer, is asking businesses and experts for input on any competition issues that they see in generative AI and has asked “several large digital players” — which it didn't identify — for information. The commission is “also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” the EU's antitrust enforcer, Margrethe Vestager, said in a press release. Vestager is due to meet with OpenAI executives on a trip this week to the U.S., as well as Google CEO Sundar Pichai, Apple CEO Tim Cook and Nvidia CEO Jensen Huang.

The European Union says Microsoft’s multibillion-dollar investment in ChatGPT-maker OpenAI could trigger a merger investigation LONDON -- Microsoft's multibillion-dollar investment in ChatGPT-maker OpenAI could trigger a European Union merger investigation, the bloc's executive branch said Tuesday. The European Commission said it's “checking whether Microsoft’s investment in OpenAI might be reviewable” under regulations covering mergers and acquisitions that would harm competition in the 27-nation EU. The review could lead to a formal investigation into whether the deal should be unconditionally cleared, allowed with concessions from the companies or blocked. Britain's antitrust watchdog opened a similar review last month. Antitrust enforcers in the U.S. also have signaled concerns about competition in the AI industry. The Federal Trade Commission in November approved new measures enabling it to more easily investigate AI products and services, noting that “AI can raise competition issues in a variety of ways, including if one or just a few companies control the essential inputs or technologies that underpin AI.” OpenAI has received several rounds of funding from Microsoft, including an initial $1 billion in 2019 and a multibillion-dollar investment last year. OpenAI's generative AI chatbot ChatGPT has captured world attention with its advanced capabilities, catapulting the San Francisco-based startup to the top ranks of AI companies. Generative AI systems like ChatGPT can spit out new text, images, videos or audio recordings based on prompts from users. The European Commission, the bloc's top antitrust enforcer, is asking businesses and experts for input on any competition issues that they see in generative AI and has asked “several large digital players” — which it didn't identify — for information. The commission is “also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” the EU's antitrust enforcer, Margrethe Vestager, said in a press release. Vestager is due to meet with OpenAI executives on a trip this week to the U.S., as well as Google CEO Sundar Pichai, Apple CEO Tim Cook and Nvidia CEO Jensen Huang.

An Italian company that makes a popular Christmas cake says it acted in “absolute good faith” when it offered a special edition with the logo of an Italian influencer that has landed both under investigation by prosecutors ROME -- An Italian company that makes a popular [Christmas](https://abcnews.go.com/alerts/Christmas) cake said Tuesday it acted in “absolute good faith” in offering a special edition in 2022 featuring the logo of Italian influencer Chiara Ferragni that has landed both under investigation by prosecutors. Italy’s antitrust authority has already fined Ferragni 1 million euros, and the pandoro cake-maker Balocco SpA 420,000 euros. The authority last month accused Ferragni’s companies and Balocco of having led consumers to believe that by buying the “Pandoro Pink Christmas” cake they would be contributing to a donation to a Turin hospital. On Monday, prosecutors in Milan placed both Ferragni and Balocco President Alessandra Balocco under investigation for alleged aggravated fraud. Ferragni, a fashion blogger-turned-influencer with 29.5 million Instagram followers, said she trusted the judiciary would show she acted in good faith. Balocco said in a statement Tuesday that it too was cooperating with prosecutors and was certain it had acted in “absolute good faith.” The antitrust authority said Balocco had made a one-time donation of 50,000 euros to the Regina Margherita hospital in Turin in November 2022, before the Ferragni-branded cakes launched, and didn’t make any subsequent donations. It said Ferragni’s companies made 1 million euros to license her logo for the initiative. The Ferragni-branded cakes sold for 9 euros apiece rather than the usual 3.70 euro price tag, the antitrust authority said. In the statement Tuesday, Balocco said the family-operated business has been upset by what Italian media have dubbed a “pandoro-gate” scandal. It said numerous incorrect news reports had circulated and said it was sorry that its initiative had been “misunderstood.”

The European Union leveled its first [antitrust](https://www.fastcompany.com/91013668/apple-offers-rivals-access-to-tap-and-go-payment-tech-to-resolve-eu-antitrust-case?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss) penalty against Apple on Monday, fining the U.S. tech giant nearly $2 billion for breaking the bloc’s competition laws by unfairly favoring its own music streaming service over rivals. Apple banned app developers from “fully informing iOS users about alternative and cheaper music subscription services outside of the app,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust enforcer. “This is illegal, and it has impacted millions of European consumers,” Margrethe Vestager, the EU’s competition commissioner, said at a news conference. Apple behaved this way for almost a decade, which meant many users paid “significantly higher prices for music streaming subscriptions,” the commission said. The 1.8 billion-euro fine follows a long-running investigation triggered by a complaint from Swedish streaming service Spotify five years ago. The EU has led global efforts to crack down on Big Tech companies, including a series of multibillion-dollar fines for Google and charging Meta with distorting the online classified ad market. The commission also has opened a separate antitrust investigation into Apple’s mobile payments service. Apple hit back at both the commission and Spotify, saying it would appeal the penalty. “The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast,” the company said in a statement. It said Spotify stood to benefit from the decision, asserting that the Swedish streaming service that holds a 56% share of Europe’s music streaming market and doesn’t pay Apple for using its App Store met 65 times with the commission over eight years. “Ironically, in the name of competition, today’s decision just cements the dominant position of a successful European company that is the digital music market’s runaway leader,” Apple said. The commission’s investigation initially centered on two concerns. One was the iPhone maker’s practice of forcing app developers that are selling digital content to use its in-house payment system, which charges a 30% commission on all subscriptions. But the EU later dropped that to focus on how Apple prevents app makers from telling their users about cheaper ways to pay for subscriptions that don’t involve going through an app. The investigation found that Apple banned streaming services from telling users about how much subscription offers cost outside of their apps, including links in their apps to pay for alternative subscriptions or even emailing users to tell them about different pricing options. The fine comes the same week that new EU rules are set to kick in that are aimed at preventing tech companies from dominating digital markets. The Digital Markets Act, due to take effect Thursday, imposes a set of do’s and don’ts on “gatekeeper” companies including Apple, Meta, Google parent Alphabet, and TikTok parent ByteDance—under threat of hefty fines. The DMA’s provisions are designed to prevent tech giants from the sort of behavior that’s at the heart of the Apple investigation. Apple has already revealed how it will comply, including allowing iPhone users in Europe to use app stores other than its own and enabling developers to offer alternative payment systems. The commission also has opened a separate antitrust investigation into Apple’s mobile payments service, and the company has promised to open up its tap-and-go mobile payment system to rivals in order to resolve it. _This story has been corrected to show that the fine was issued Monday, not Tuesday._ _—Kelvin Chan, AP Business Writer_

The Justice Department plans to file an antitrust lawsuit against concert promoter Live Nation, people familiar with the investigation confirmed Tuesday. The specific allegations remain unclear, and the timing of a lawsuit is uncertain. The Justice Department declined to comment. But performers, politicians, scholars, rival promoters and other ticket sellers have argued that Live Nation wields far too much power in the live entertainment industry, with the ability to withhold the best shows from venues that do not use the company’s Ticketmaster service. Public criticism peaked in November 2022 after Ticketmaster’s website crashed under extraordinary demand for tickets to pop star Taylor Swift’s Eras Tour. At that time, the Justice Department [was investigating the company](https://www.washingtonpost.com/arts-entertainment/2022/11/18/taylor-swift-ticketmaster-doj-investigation/?itid=lk_inline_manual_6). In the view of critics, Live Nation and its ticketing platform have achieved outsize market dominance that harms consumers through exorbitant fees, dynamic pricing and a poor customer experience. A Live Nation official rejected those criticisms during a [January 2023 hearing](https://www.washingtonpost.com/business/2023/01/24/taylor-swift-ticketmaster-senate-hearing/?itid=lk_inline_manual_8) in the Senate, as lawmakers from both sides of the aisle accused the company of wielding “monopolistic control.” The company has denied that it is a monopoly and pushed back against allegations that it punishes non-Ticketmaster venues. “Ticketmaster has more competition today than it has ever had, and the deal terms with venues show it has nothing close to monopoly power,” Live Nation said in a statement Tuesday. In June, Live Nation agreed to list its ticketing fees upfront at its venues amid President Biden’s broad push to end excessive fees across an array of industries. In 2019, Live Nation agreed to extend court oversight of its 2010 merger with Ticketmaster after an investigation that found the company “repeatedly” violated the terms of its merger. The company also agreed to several clarifications to the court-monitored agreement, including that Live Nation could not threaten to withhold concerts from a venue if organizers used a ticket vendor other than Ticketmaster. The Wall Street Journal first reported the Justice Department’s intention to file an antitrust lawsuit. The federal government could file charges narrowly related to the Ticketmaster merger agreement or bring a bigger case related to Live Nation’s perceived market dominance, said Daniel McCuaig, a partner at Cohen Milstein’s antitrust practice and a former trial lawyer with the Justice Department’s antitrust division. Depending on what charges are filed, the government could seek to unwind the Ticketmaster merger, McCuaig said. He noted that the Justice Department has sought such a remedy in its [case against Google and digital ad business](https://www.washingtonpost.com/technology/2023/01/24/doj-google-lawsuit-ads/?itid=lk_inline_manual_18). “This DOJ has been more aggressive than previous administration DOJs about looking at old mergers and deciding that they may have made a mistake in letting something through previously that could now be unwound with a successful antitrust suit,” McCuaig said. _“_It looks like big-game hunting on a monopolization theory,” he added. “And monopolization cases are cases that this administration has not shied away from bringing_.”_

[Microsoft](https://www.fastcompany.com/91005760/microsoft-copilot-key-antitrust) was hit with a Spanish startup group’s complaint about its cloud practices to the Spanish [antitrust](https://www.fastcompany.com/91018611/the-ftc-is-looking-at-amazon-microsoft-and-googles-partnerships-with-ai-startups) regulator on Tuesday, the latest grievance over its fast-growing cloud computing services and which followed a trade group’s [EU complaint](https://www.fastcompany.com/91039416/microsofts-deal-mistral-ai-raises-flag-european-union). The U.S. tech giant ranks second in the cloud computing sector, behind market leader Amazon, but is expected to close the gap rapidly as a clutch of generative AI features powered by OpenAI’s technology attract business users. The Spanish Startup Association, which represents more than 700 startups in Spain, cited a number of allegedly anticompetitive practices by Microsoft in recent years. “Microsoft has not only taken advantage of the dominant position in the markets of Operating Systems (Windows) and traditional productivity software (Microsoft Office, Windows Server, SQL Server) to force the use of its Azure cloud, but they have also imposed artificial barriers that limit the ability of startups to compete fairly and competitively,” the complaint seen by Reuters said. “These practices include barriers to data portability or contractual conditions that restrict competition in software licenses, preventing the free choice of providers of these services, reducing the capacity for choice and flexibility that startups need to be able to be resilient, innovate and grow,” the document said. The association called on the Spanish competition watchdog to launch an investigation and to take urgent measures to ensure a competitive market. “We believe that all companies should be able to compete in an environment of equality so as not to be left behind either as customers or as companies providing this technology,” Carlos Mateo, president of the Spanish Startup Association, said in a statement. Cloud Infrastructure Services Providers in Europe (CISPE), whose members include Amazon, last November complained to EU antitrust regulators about Microsoft’s new contract terms imposed on October 1, along with other practices, saying these were harming the European cloud computing ecosystem. The European Commission has asked cloud rivals about Microsoft’s request for customer data as part of its investigation while the UK Competition and Markets Authority is also probing the sector. _—Foo Yun Chee, Reuters_ _ Recognize your brand’s excellence by applying to this year’s [Brands That Matter Awards](https://www.fastcompany.com/apply/brands-that-matter) before the early-rate deadline, May 3. _

Federal regulators have reached a deal that allows them to proceed with antitrust investigations into the dominant roles that Microsoft, [OpenAI](https://www.nytimes.com/2024/05/28/technology/openai-gpt4-new-model.html) and Nvidia play in the [artificial intelligence industry](https://www.nytimes.com/spotlight/artificial-intelligence), in the strongest sign of how regulatory scrutiny into the powerful technology has escalated. The Justice Department and the Federal Trade Commission struck the deal over the past week, and it is expected to be completed in the coming days, according to two people with knowledge of the matter, who were not authorized to speak publicly about the confidential discussions. Under the arrangement, the Justice Department will take the lead in investigating whether the behavior of [Nvidia](https://www.nytimes.com/2023/08/21/technology/nvidia-ai-chips-gpu.html), the biggest maker of A.I. chips, has violated antitrust laws, the people said. The F.T.C. will play the lead role in examining the conduct of OpenAI, which makes the ChatGPT chatbot, and [Microsoft](https://www.nytimes.com/2024/04/23/technology/microsoft-ai.html), which has invested $13 billion in OpenAI and made deals with other A.I. companies, the people said. The agreement signals intensifying scrutiny by the Justice Department and the F.T.C. into A.I., a rapidly advancing technology that has the potential to upend jobs, information and people’s lives. Both agencies have been at the forefront of the Biden administration’s efforts to rein in the power of the biggest tech companies. After a similar deal in 2019, the government investigated [Google](https://www.nytimes.com/2024/05/02/technology/google-antitrust-trial-closing-arguments.html), [Apple](https://www.nytimes.com/2024/03/21/technology/apple-doj-lawsuit-antitrust.html), [Amazon](https://www.nytimes.com/2023/09/26/technology/ftc-amazon.html) and [Meta](https://www.nytimes.com/2024/05/03/technology/google-apple-amazon-meta-antitrust.html) and has since sued each of them on claims that they violated antimonopoly laws. For months, Nvidia, Microsoft and OpenAI largely escaped the brunt of the Biden administration’s regulatory scrutiny. But that began to change as generative A.I., which can produce humanlike text, photos, videos and audio, burst onto the scene in late 2022 and created an industry frenzy. Regulators have recently signaled that they want to get ahead of developments in A.I. In July, the [F.T.C. opened an investigation](https://www.nytimes.com/2023/07/13/technology/chatgpt-investigation-ftc-openai.html) into whether OpenAI had harmed consumers through its collection of data. In January, the F.T.C. also [started a broad inquiry](https://www.nytimes.com/2024/01/25/technology/ftc-ai-microsoft-amazon-google.html) into strategic partnerships between tech giants and A.I. start-ups, including Microsoft’s investment in OpenAI and Google’s and Amazon’s investments in Anthropic, another young A.I. company. Thank you for your patience while we verify access. If you are in Reader mode please exit and [log into](https://myaccount.nytimes.com/auth/login?response_type=cookie&client_id=vi&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F06%2F05%2Ftechnology%2Fnvidia-microsoft-openai-antitrust-doj-ftc.html&asset=opttrunc) your Times account, or [subscribe](https://www.nytimes.com/subscription?campaignId=89WYR&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F06%2F05%2Ftechnology%2Fnvidia-microsoft-openai-antitrust-doj-ftc.html) for all of The Times. Thank you for your patience while we verify access. Already a subscriber? [Log in](https://myaccount.nytimes.com/auth/login?response_type=cookie&client_id=vi&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F06%2F05%2Ftechnology%2Fnvidia-microsoft-openai-antitrust-doj-ftc.html&asset=opttrunc). Want all of The Times? [Subscribe](https://www.nytimes.com/subscription?campaignId=89WYR&redirect_uri=https%3A%2F%2Fwww.nytimes.com%2F2024%2F06%2F05%2Ftechnology%2Fnvidia-microsoft-openai-antitrust-doj-ftc.html).

The [rapid rise](https://qz.com/ai-stocks-dot-com-bubble-nvidia-google-microsoft-amazon-1851407019) of [artificial intelligence](https://qz.com/ai-artificial-intelligence-glossary-vocabulary-terms-1851422473) has been led by a few key players in the tech world: [Microsoft](https://qz.com/microsoft-training-ai-model-compete-openai-google-1851458938), [OpenAI](https://qz.com/openai-chat-gpt-updates-sam-altman-magic-1851472690), and chipmaker [Nvidia](https://qz.com/apple-nvidia-stock-market-cap-microsoft-tech-ai-1851521409). Now, they’re all coming under federal scrutiny for their outsized dominance of the market. The New York Times, citing unnamed sources familiar with the matter, reports that the Department of Justice and the Federal Trade Commission have struck a deal that will allow them to carry out [antitrust investigations into the companies’ roles in the AI industry](https://www.nytimes.com/2024/06/05/technology/nvidia-microsoft-openai-antitrust-doj-ftc.html). Under the agreement, the Justice Department will spearhead the investigation into whether [Nvidia — which is world’s leading AI chipmaker](https://qz.com/nvidia-history-origin-ai-chip-jensen-huang-1851372906) — has violated antitrust laws. And the FTC will look into OpenAI and Microsoft’s potentially anticompetitive behavior in the space, The Times reported. Both agencies share antitrust responsibilities. Microsoft, which has a $13 billion investment in OpenAI, is [already being investigated](https://www.wsj.com/tech/ai/ftc-opens-antitrust-probe-of-microsoft-ai-deal-29b5169a) by the FTC for its deal with Inflection AI, The Wall Street Journal reports, citing an unnamed source familiar with the matter and other records. The tech giant has hired two of Inflection AI’s co-founders to [lead a new unit](https://blogs.microsoft.com/blog/2024/03/19/mustafa-suleyman-deepmind-and-inflection-co-founder-joins-microsoft-to-lead-copilot/) called Microsoft AI, and [reportedly hired a slew of its staff and paid the startup](https://www.wsj.com/tech/ai/mustafa-suleyman-brings-knowledge-and-past-controversy-as-he-joins-microsofts-ai-effort-5e5420d2?mod=article_inline) roughly $650 million to resell its technology under a licensing agreement. While any merger valued at more than $119 million has to be reported to federal antitrust enforcement agencies, the FTC is examining whether Microsoft’s deal with Inflection AI was structured to avoid antitrust safeguards. **Read more**: [Former OpenAI employees say AI companies pose ‘serious risks.’ Read their open letter](https://qz.com/open-letter-from-ai-employees-says-ai-companies-pose-se-1851518657) The moves are part of an ongoing regulatory crackdown on the tech industry, and the nascent AI sector, spearheaded by FTC Chair Lina Khan. In January, the regulator [opened inquiries into five generative AI companies](https://www.ftc.gov/news-events/news/press-releases/2024/01/ftc-launches-inquiry-generative-ai-investments-partnerships) — Google parent Alphabet, Amazon, Anthropic, Microsoft, and OpenAI — requiring them to share information about recent investments and partnerships with generative AI companies and major cloud services providers. Khan said at the time that the study “will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition.” “The AI space … is so fast moving,” Khan said in an [interview with Harvard Law](https://hls.harvard.edu/today/ftc-chair-lina-khan-discusses-ai-antitrust-concerns-at-harvard-law-school/) in February. “And so, we really want to make sure that the opportunity for competition and the potential for disruption is preserved, rather than this moment being co-opted by some of the existing dominant firms to double down on their dominance.”

[European Union antitrust regulators](https://www.fastcompany.com/91067364/3-major-ways-eus-antitrust-lawsuit-against-apple-could-impact-your-iphone) charged on Monday that [Apple](https://www.fastcompany.com/91046335/eu-slaps-apple-with-billion-dollar-antitrust-penalty) breached the [bloc’s tech rules](https://www.fastcompany.com/91025509/eu-regulators-antitrust-amazon-irobot), a charge that could result in a hefty fine for the iPhone maker which also faces another investigation into new fees imposed on app developers. The European Commission, which is also the EU’s antitrust and technology regulator, said it had sent its preliminary findings to Apple following an investigation launched in March. The charge against Apple is the first by the Commission under its landmark Digital Markets Act which seeks to rein in the power of Big Tech and ensure a level playing field for smaller rivals. It has until March next year to issue a final decision. DMA violations could result in a fine of as much as 10% of a company’s global annual turnover. EU antitrust chief Margrethe Vestager cited issues with Apple’s new terms, saying that they fell short of complying with the DMA. Apple can avoid a fine if it can address the concerns by modifying its business terms. “As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them,” she told a conference. She said it was up to Apple to decide how to comply with the DMA and not for her to tell the company what to do. Apple said it had made a number of changes in the past several months to comply with the DMA after getting feedback from app developers and the Commission. “As we have done routinely, we will continue to listen and engage with the European Commission,” it said in an email. The Commission said under most of the business terms, Apple allows steering only through ‘link-outs’, meaning that app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract. It also criticised the fees charged by Apple for facilitating via the App Store the initial acquisition of a new customer by developers, saying they went beyond what was strictly necessary for such remuneration. “We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” Apple said in its email. The EU executive said it was also opening an investigation into the iPhone maker over its new contractual requirements for third-party app developers and app stores and whether these were necessary and proportionate. At issue is its core technology fee, the multi-step user journey to download and install alternative app stores on iPhones and the eligibility requirements for developers to offer alternative app stores or directly distribute apps from the web on iPhones. Apple rolled out the new fees in March in the EU, which include the core technology fee to major app developers even if they do not use any of its payment services, prompting criticism from “Fortnite” creator Epic Games and others. Vestager also criticised Apple’s announcement last week that it would delay the launch of its AI-powered features of its AI-powered features in the EU which the company blamed on the DMA. Vestager said that it seemed that Apple suggested that its AI integration may be anti-competitive. _ Recognize your technological breakthrough by applying to this year’s [Next Big Things in Tech Awards](https://www.fastcompany.com/apply/next-big-things-in-tech) before the final deadline, July 12. Sign up for Next Big Things in Tech Awards notifications [here](https://events.fastcompany.com/2024nbtnotifications/register?ref=article). _

European Union regulators have accused Microsoft of “possibly abusive” practices that violate the bloc’s antitrust rules by tying its Teams messaging and videoconferencing app to its widely used business software LONDON -- Microsoft violated European Union antitrust rules with “possibly abusive” practices by tying its Teams messaging and videoconferencing app to its widely used business software, the bloc said. The European Commission said Monday it informed Microsoft of its preliminary view that the U.S. tech giant has been “restricting competition” by [bundling Teams](https://apnews.com/article/microsoft-office-teams-slack-antitrust-europe-b6c2a18f5420ddd553a4cb6ab79f838f) with core office productivity applications such as Office 365 and Microsoft 365. The commission, the 27-nation bloc's top antitrust enforcer, said it suspects Microsoft might have granted Teams a “distribution advantage” by not giving customers a choice on whether to have Teams when they purchased the software. The advantage might have been widened by limits on the ability of rival messaging apps to work with Microsoft software, it said. “We are concerned that Microsoft may be giving its own communication product Teams an undue advantage over competitors, by tying it to its popular productivity suites for businesses,” Margrethe Vestager, the commission's executive vice-president for competition policy, said in a statement. “And preserving competition for remote communication and collaboration tools is essential as it also fosters innovation on these markets.” The commission took aim at Microsoft a day after [accusing Apple](https://apnews.com/article/apple-european-union-digital-regulation-rules-app-store-07c34a80a5c98d0014e1c669a86af6a4) of breaching the bloc's new [digital competition rulebook](https://apnews.com/article/digital-markets-act-european-union-rules-apple-5162872791b985e794df9b3a7b46aed1), in a flurry of regulatory action underlining Brussels' leading role as a watchdog for Big Tech companies. Microsoft made some changes last year in an effort to head off an penalty, including offering the software [packages without Teams](https://apnews.com/article/microsoft-office-teams-slack-antitrust-europe-b6c2a18f5420ddd553a4cb6ab79f838f) for European customers. But the commission said Tuesday the changes are not enough to address its concerns and that it needs to do more to "restore competition." “Having unbundled Teams and taken initial interoperability steps, we appreciate the additional clarity provided today and will work to find solutions to address the Commission‘s remaining concerns.” Microsoft President Brad Smith said in a prepared statement. In April, the company also gave customers worldwide the option to get Microsoft 365 and Office 365 without Teams. The two software suites include programs like Word, Excel and Outlook. Microsoft now has a chance to respond to the accusations, formally known as a statement of objections, before the commission makes its final decision. The company could face a fine worth up to 10% of its annual global revenue, or be forced to carry out “remedies" to satisfy the competition concerns. The commission [opened its investigation](https://apnews.com/article/eu-microsoft-antitrust-investigation-teams-office-d7a6f5727387bae9b427d560218be84f) in July 2023 after rival Slack Technologies, which makes popular workplace messaging software, filed a complaint with Brussels. Alfaview, which makes videoconferencing software, also filed a separate complaint. Slack, owned by business software maker Salesforce, had alleged that Microsoft abused its market dominance to eliminate competition — in violation of EU laws. “The Statement of Objections issued today by the European Commission is a win for customer choice and an affirmation that Microsoft’s practices with Teams have harmed competition,” Salesforce President Sabastian Niles said. “We appreciate the Commission’s thorough investigation of Slack’s complaint and urge the Commission to move towards a swift, binding, and effective remedy that restores free and fair choice and promotes competition, interoperability, and innovation in the digital ecosystem.”

European Union regulators have accused Microsoft of “possibly abusive” practices that violate the bloc’s antitrust rules by tying its Teams messaging and videoconferencing app to its widely used business software LONDON -- Microsoft violated European Union antitrust rules with “possibly abusive” practices by tying its Teams messaging and videoconferencing app to its widely used business software, the bloc said. The European Commission said Monday it informed Microsoft of its preliminary view that the U.S. tech giant has been “restricting competition” by [bundling Teams](https://apnews.com/article/microsoft-office-teams-slack-antitrust-europe-b6c2a18f5420ddd553a4cb6ab79f838f) with core office productivity applications such as Office 365 and Microsoft 365. The commission, the 27-nation bloc's top antitrust enforcer, said it suspects Microsoft might have granted Teams a “distribution advantage” by not giving customers a choice on whether to have Teams when they purchased the software. The advantage might have been widened by limits on the ability of rival messaging apps to work with Microsoft software, it said. “We are concerned that Microsoft may be giving its own communication product Teams an undue advantage over competitors, by tying it to its popular productivity suites for businesses,” Margrethe Vestager, the commission's executive vice-president for competition policy, said in a statement. “And preserving competition for remote communication and collaboration tools is essential as it also fosters innovation on these markets.” The commission took aim at Microsoft a day after [accusing Apple](https://apnews.com/article/apple-european-union-digital-regulation-rules-app-store-07c34a80a5c98d0014e1c669a86af6a4) of breaching the bloc's new [digital competition rulebook](https://apnews.com/article/digital-markets-act-european-union-rules-apple-5162872791b985e794df9b3a7b46aed1), in a flurry of regulatory action underlining Brussels' leading role as a watchdog for Big Tech companies. Microsoft made some changes last year in an effort to head off an penalty, including offering the software [packages without Teams](https://apnews.com/article/microsoft-office-teams-slack-antitrust-europe-b6c2a18f5420ddd553a4cb6ab79f838f) for European customers. But the commission said Tuesday the changes are not enough to address its concerns and that it needs to do more to "restore competition." “Having unbundled Teams and taken initial interoperability steps, we appreciate the additional clarity provided today and will work to find solutions to address the Commission‘s remaining concerns.” Microsoft President Brad Smith said in a prepared statement. In April, the company also gave customers worldwide the option to get Microsoft 365 and Office 365 without Teams. The two software suites include programs like Word, Excel and Outlook. Microsoft now has a chance to respond to the accusations, formally known as a statement of objections, before the commission makes its final decision. The company could face a fine worth up to 10% of its annual global revenue, or be forced to carry out “remedies" to satisfy the competition concerns. The commission [opened its investigation](https://apnews.com/article/eu-microsoft-antitrust-investigation-teams-office-d7a6f5727387bae9b427d560218be84f) in July 2023 after rival Slack Technologies, which makes popular workplace messaging software, filed a complaint with Brussels. Alfaview, which makes videoconferencing software, also filed a separate complaint. Slack, owned by business software maker Salesforce, had alleged that Microsoft abused its market dominance to eliminate competition — in violation of EU laws. “The Statement of Objections issued today by the European Commission is a win for customer choice and an affirmation that Microsoft’s practices with Teams have harmed competition,” Salesforce President Sabastian Niles said. “We appreciate the Commission’s thorough investigation of Slack’s complaint and urge the Commission to move towards a swift, binding, and effective remedy that restores free and fair choice and promotes competition, interoperability, and innovation in the digital ecosystem.”

174485977 story [](//apple.slashdot.org/index2.pl?fhfilter=apple) Posted by msmash on Friday July 12, 2024 @02:40PM from the growing-consensus dept. India's antitrust watchdog has concluded that Apple [abused its dominant position in the iOS app store market](https://www.reuters.com/technology/india-antitrust-probe-finds-apple-abused-position-apps-market-2024-07-12/), according to a confidential report seen by Reuters, marking a significant development in the country's scrutiny of tech giants. The Competition Commission of India, which initiated an investigation into Apple in 2021, has determined that the company engaged in "abusive conduct and practices" by compelling developers to utilize its proprietary in-app purchase system, Reuters added. The report asserts that Apple wields "significant influence" over the distribution of digital products to consumers through its iOS platform and App Store, characterizing the tech giant as an "unavoidable trading partner" for app developers who have little choice but to comply with Apple's terms.

Microsoft’s [“acqui-hiring” deal with Inflection AI](https://qz.com/mustafa-suleyman-new-ceo-microsoft-ai-1851349236) is now drawing antitrust scrutiny across the pond. The tech giant paid artificial intelligence firm Inflection a $650 million “licensing fee” to use its AI models and [hire most of its employees](https://qz.com/mustafa-suleyman-new-ceo-microsoft-ai-1851349236), including its chief executive Mustafa Suleyman, back in March. In the U.S., the Federal Trade Commission has reportedly [already been investigating](https://qz.com/microsoft-inflection-ai-ftc-antitrust-1851523752) whether Microsoft sought to dodge regulatory scrutiny by poaching Inflection staffers and paying the fee rather than buying the company outright. While any merger valued at more than $119 million has to be reported to federal antitrust enforcement agencies, the FTC is examining whether Microsoft’s deal with Inflection AI was structured to avoid antitrust safeguards. **Read more:** [Big AI is finally on the antitrust hot seat. Here’s what that means](https://qz.com/microsoft-nvidia-and-openai-big-ai-antitrust-investiga-1851524938) On Tuesday, the Competition and Markets Authority — the primary competition and consumer regulatory agency in the UK — [said it was probing the deal](https://assets.publishing.service.gov.uk/media/66964b6fce1fd0da7b59260c/Commencement_notice.pdf), too. The agency said it had “sufficient information” related to Microsoft’s hiring of Inflection employees and its agreement with the AI company to launch an investigation into whether the deal is anti-competitive. A decision will be made on whether to move forward with further investigation by Sept. 11. “We are confident that the hiring of talent promotes competition and should not be treated as a merger,” a Microsoft spokesperson said in a statement. “We will provide the UK Competition and Markets Authority with the information it needs to complete its inquiries expeditiously.” Tech giants have fallen under the microscope for anti-competitive behavior, particularly with [the rise of AI fueling competition](https://qz.com/microsoft-nvidia-and-openai-big-ai-antitrust-investiga-1851524938) — and mergers. In the first half of 2024, tech sector deals in the U.S. [totaled $186 billion](https://www.ey.com/en_us/insights/mergers-acquisitions/m-and-a-outlook), the largest of any industry, according to consulting firm EY. Apart from Microsoft’s strange deal with Inflection, Amazon has [poured $4 billion into AI startup Anthropic](https://qz.com/amazon-anthropic-investment-ai-1851369950) to use its tech, and Apple purchased [Canadian startup DarwinAI](https://qz.com/apple-generative-ai-buy-canadian-startup-darwinai-1851336368) earlier this year, adding to its string of [quiet AI acquisitions](https://qz.com/apple-may-be-quiet-on-ai-but-it-s-also-the-biggest-buy-1850872570). As a result, the Department of Justice together with the FTC have [reportedly](https://www.nytimes.com/2024/06/05/technology/nvidia-microsoft-openai-antitrust-doj-ftc.html) reached a deal to [investigate Microsoft, Nvidia, and OpenAI](https://qz.com/microsoft-nvidia-openai-doj-ftc-investigation-antitrust-1851522748) over potentially anti-competitive behavior in the AI space, according to The New York Times.

Google parent Alphabet’s multi-billion dollar investment into [artificial intelligence](https://qz.com/ai-artificial-intelligence-glossary-vocabulary-terms-1851422473) firm [Anthropic](https://qz.com/anthropic-safe-ai-bloomberg-technology-summit-amodei-1851466207) has drawn antitrust scrutiny in the United Kingdom. The Competition and Markets Authority (CMA) is investigating whether Alphabet’s partnership with Anthropic has resulted in a “relevant merger situation,” the consumer regulatory agency [said Tuesday](https://www.gov.uk/cma-cases/alphabet-inc-google-llc-slash-anthropic-merger-inquiry). And, if so, the CMA is looking to probe whether that would result in a “substantial lessening of competition.” An Anthropic spokesperson said the company intends to cooperate with the agency and to give them with a “complete picture” of Google’s investment and commercial collaboration. “We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” the spokesperson said. **Read more:** [Big AI is finally on the antitrust hot seat. Here’s what that means](https://qz.com/microsoft-nvidia-and-openai-big-ai-antitrust-investiga-1851524938) Last October, Google agreed to invest up to [$2 billion in Anthropic](https://www.reuters.com/technology/google-agrees-invest-up-2-bln-openai-rival-anthropic-wsj-2023-10-27/), a rival to Microsoft-backed OpenAI founded by some of the company’s [former employees](https://qz.com/anthropic-founders-openai-executives-ai-1851469940). The investment included $500 million upfront, as well as $1.5 billion in additional funding over time. Even prior to the investment, Google already had a [reported 10% stake](https://www.ft.com/content/583ead66-467c-4bd5-84d0-ed5df7b5bf9c) in the company. Other major partners include Amazon, which said it would invest [up to $4 billion](https://qz.com/amazon-anthropic-investment-ai-1851369950) in Anthropic. Amazon also has a minority ownership position in the AI startup. In March, Anthropic unveiled its [new family of AI models, Claude 3](https://qz.com/anthropic-opus-claude-openai-chatgpt-ai-1851304996), which is accessible on Amazon Bedrock and Google Cloud’s [Vertex AI](https://cloud.google.com/blog/products/ai-machine-learning/anthropics-claude-3-opus-and-tool-use-are-generally-available-on-vertex-ai). Claude 3 includes Opus, branded as its “most intelligent model,” which Anthropic said outperformed Microsoft-backed OpenAI’s GPT-4 in a range of tasks. The CMA has launched a crackdown on big tech deals and investments. The agency said earlier this month that it’s [investigating](https://qz.com/microsoft-inflection-ai-deal-antitrust-probe-uk-1851594140) Microsoft’s [“acqui-hiring” deal with Inflection AI](https://qz.com/mustafa-suleyman-new-ceo-microsoft-ai-1851349236) — a deal that U.S. regulators were [reportedly already scrutinizing](https://qz.com/microsoft-inflection-ai-ftc-antitrust-1851523752). The CMA is also probing Anthropic’s partnership with Amazon. The regulator has opened up a comment period through August 13, after which it will make a decision on whether to move forward with further investigation.

Antitrust tensions are heating up in the chipmaking industry NEW YORK -- Antitrust tensions are heating up in the chipmaking industry. Rivals have accused Wall Street darling [Nvidia](https://apnews.com/article/nvidia-artificial-intelligence-ai-gaming-1acc94ebbe6a59f728742ca20b3532cf) of abusing its market dominance in selling chips that power [artificial intelligence](https://apnews.com/hub/artificial-intelligence) — and the U.S. Justice Department is now investigating these complaints, technology news site The Information [reported](https://www.theinformation.com/articles/nvidia-faces-doj-antitrust-probe-over-complaints-from-rivals). According to the news outlet, which cited unnamed sources familiar with the discussions, Justice Department officials are looking into concerns Nvidia is potentially cornering the market and pressuring its customers to unfairly retain business. That includes allegations of Nvidia threatening to punish those who buy products from both the Santa Clara, California-based tech giant and its competitors. The Information also reported that U.S. officials had reached out to several Nvidia competitors about the complaints. The Justice Department declined to comment or provide further information when reached by The Associated Press on Friday. But a statement from Nvidia said the company “wins on merit” — and competes “based on decades of investment and innovation, scrupulously adhering to all laws." Without directly acknowledging details of The Information’s Thursday report, the company added that it is “happy to provide any information regulators need.” Nvidia has faced calls for an antitrust investigation from some Democratic lawmakers and progressive groups before. Earlier this week, 10 progressive advocacy groups — including Demand Progress Education Fund and Tech Oversight Project — penned a [letter](https://s3.us-east-1.amazonaws.com/demandprogress/letters/Letter_-_Nvidia_DOJ_2024-07-30.pdf) to Assistant Attorney General Jonathan Kanter in support of an antitrust investigation into the chipmaker. “Nvidia is the world’s chip gatekeeper,” the groups wrote, arguing the company had “bullied its way into a prominent investment position” by leveraging scarce supply alongside tactics like blocking customers from doing business with competitors. “Such a company deserves the most aggressive scrutiny that the Department of Justice can bring to bear.” Nvidia’s has cemented itself as a poster child for the artificial intelligence boom — and in the process become one of the most valuable companies in the world. In June, the tech giant briefly reached a market value of [more than $3.3 trillion](https://apnews.com/article/nvidia-artificial-intelligence-stock-market-nasdaq-b1e79cf391f212a4714433afd140e341). Some of that market momentum has [stalled a little since](https://apnews.com/article/nvidia-chip-ai-apple-microsoft-51cc2b56e5871111907de6ad9cab59ae) — and any stock climbing to such heights is vulnerable to some investors selling shares to lock in profits. On Friday afternoon, shares for Nvidia were down 3%.

Antitrust tensions are heating up in the chipmaking industry NEW YORK -- Antitrust tensions are heating up in the chipmaking industry. Rivals have accused Wall Street darling [Nvidia](https://apnews.com/article/nvidia-artificial-intelligence-ai-gaming-1acc94ebbe6a59f728742ca20b3532cf) of abusing its market dominance in selling chips that power [artificial intelligence](https://apnews.com/hub/artificial-intelligence) — and the U.S. Justice Department is now investigating these complaints, technology news site The Information [reported](https://www.theinformation.com/articles/nvidia-faces-doj-antitrust-probe-over-complaints-from-rivals). According to the news outlet, which cited unnamed sources familiar with the discussions, Justice Department officials are looking into concerns Nvidia is potentially cornering the market and pressuring its customers to unfairly retain business. That includes allegations of Nvidia threatening to punish those who buy products from both the Santa Clara, California-based tech giant and its competitors. The Information also reported that U.S. officials had reached out to several Nvidia competitors about the complaints. The Justice Department declined to comment or provide further information when reached by The Associated Press on Friday. But a statement from Nvidia said the company “wins on merit” — and competes “based on decades of investment and innovation, scrupulously adhering to all laws." Without directly acknowledging details of The Information’s Thursday report, the company added that it is “happy to provide any information regulators need.” Nvidia has faced calls for an antitrust investigation from some Democratic lawmakers and progressive groups before. Earlier this week, 10 progressive advocacy groups — including Demand Progress Education Fund and Tech Oversight Project — penned a [letter](https://s3.us-east-1.amazonaws.com/demandprogress/letters/Letter_-_Nvidia_DOJ_2024-07-30.pdf) to Assistant Attorney General Jonathan Kanter in support of an antitrust investigation into the chipmaker. “Nvidia is the world’s chip gatekeeper,” the groups wrote, arguing the company had “bullied its way into a prominent investment position” by leveraging scarce supply alongside tactics like blocking customers from doing business with competitors. “Such a company deserves the most aggressive scrutiny that the Department of Justice can bring to bear.” Nvidia’s has cemented itself as a poster child for the artificial intelligence boom — and in the process become one of the most valuable companies in the world. In June, the tech giant briefly reached a market value of [more than $3.3 trillion](https://apnews.com/article/nvidia-artificial-intelligence-stock-market-nasdaq-b1e79cf391f212a4714433afd140e341). Some of that market momentum has [stalled a little since](https://apnews.com/article/nvidia-chip-ai-apple-microsoft-51cc2b56e5871111907de6ad9cab59ae) — and any stock climbing to such heights is vulnerable to some investors selling shares to lock in profits. On Friday afternoon, shares for Nvidia were down 3%.

A week after reporting [another record quarter](https://qz.com/nvidia-second-quarter-earnings-expectations-ai-chips-1851634682), chipmaker Nvidia [NVDA](https://qz.com/quote/NVDA) has reportedly been subpoenaed by the U.S. Department of Justice over [complaints that it is violating antitrust laws](https://www.bloomberg.com/news/articles/2024-09-03/nvidia-gets-doj-subpoena-in-escalating-antitrust-investigation?srnd=homepage-americas&sref=P6Q0mxvj). The Justice Department has also subpoenaed other companies for evidence after initially sending questionnaires about Nvidia’s business practices, Bloomberg reported, citing unnamed people familiar with the matter. In June, the Justice Department and the Federal Trade Commission [reached a deal to carry out antitrust investigations](https://qz.com/microsoft-nvidia-openai-doj-ftc-investigation-antitrust-1851522748) into Nvidia and fellow artificial intelligence industry leaders Microsoft and OpenAI. U.S. officials are reportedly concerned by complaints that include how Nvidia has made it difficult for customers to switch chip providers. Nvidia and the Justice Department both declined to comment. The Department of Justice reached out to the chipmaker’s competitors, including Advanced Micro Devices and AI chip startups, to gather information, including [allegations of threatening customers](https://qz.com/nvidia-ai-chips-doj-antitrust-investigation-amd-startup-1851611727) who buy products from competitors, as well as Nvidia’s recent acquisitions of AI software startups, The Information [reported](https://www.theinformation.com/articles/nvidia-faces-doj-antitrust-probe-over-complaints-from-rivals?rc=5xvgzc) in August, citing unnamed people familiar with the matter. Some of Nvidia’s customers fear it will charge a higher price for its chips, or even restrict the number of chips it will sell, if a customer is also buying chips from competitors, customers’ employees told The Information. Justice Department officials were reportedly investigating whether the chipmaker had pressured some of its customers, including cloud providers that rent servers powered by Nvidia’s chips to developers, to buy more of the company’s technology. Meanwhile, Nvidia’s [shares have taken a hit](https://qz.com/nvidia-stock-fall-pre-market-trading-beat-q2-earnings-1851635149) since its second-quarter earnings report. The chipmaker’s shares were down around 9.5% at the market close on Tuesday, losing a record $279 billion. Its stock was down around 2% in after-hours trading. However, Nvidia’s shares are up around 124.2% so far this year.

According to [Bloomberg](https://www.bloomberg.com/news/articles/2024-09-03/nvidia-gets-doj-subpoena-in-escalating-antitrust-investigation) _(paywalled),_ Nvidia has [received a subpoena from the U.S. Department of Justice](https://www.reuters.com/legal/nvidia-hit-with-subpoena-us-justice-department-bloomberg-news-reports-2024-09-03/) as the regulator seeks evidence that the AI computing company violated antitrust laws. "The antitrust watchdog had previously delivered questionnaires to companies, and is now sending legally binding requests," notes Reuters. "Officials are concerned that the chipmaker is making it harder to switch to other suppliers and penalizes buyers that do not exclusively use its artificial intelligence chips." The development follows a [push by progressive groups last month](https://yro.slashdot.org/story/24/08/01/2139241/us-progressives-push-for-nvidia-antitrust-investigation), who criticized Nvidia's bundling of software and hardware, claiming it stifles innovation and locks in customers. In July, French antitrust regulators announced plans to charge the company for [alleged anti-competitive practices](https://slashdot.org/story/24/07/01/1528252/french-antitrust-regulators-preparing-nvidia-charges). _Developing..._

A day after Nvidia [NVDA](https://qz.com/quote/NVDA) was reported to have been subpoenaed by the U.S. Justice Department in its antitrust probe, the chipmaker says it actually has not be subpoenaed. “We have inquired with the U.S. Department of Justice and have not been subpoenaed,” an Nvidia spokesperson said in a statement shared with Quartz on Wednesday. “Nonetheless, we are happy to answer any questions regulators may have about our business.” The chipmaker was reported to have been [subpoenaed by U.S. officials](https://qz.com/nvidia-subpoena-us-justice-department-antitrust-probe-1851639016) on Tuesday by Bloomberg, which cited unnamed people familiar with the matter. The Justice Department had also reportedly subpoenaed other companies for evidence after complaints that the chipmaker is possibly violating antitrust laws. In June, the Justice Department and the Federal Trade Commission [reached a deal to carry out antitrust investigations](https://qz.com/microsoft-nvidia-openai-doj-ftc-investigation-antitrust-1851522748) into Nvidia and fellow artificial intelligence industry leaders Microsoft and OpenAI. U.S. officials are reportedly concerned over complaints that include how Nvidia has made it difficult for its customers to work with other chip providers. The Department of Justice reached out to the chipmaker’s competitors, including Advanced Micro Devices and AI chip startups, to gather information, including on [allegations of threatening customers](https://qz.com/nvidia-ai-chips-doj-antitrust-investigation-amd-startup-1851611727) who buy products from competitors, and on Nvidia’s recent acquisitions of AI software startups, The Information [reported](https://www.theinformation.com/articles/nvidia-faces-doj-antitrust-probe-over-complaints-from-rivals?rc=5xvgzc) in August, citing unnamed people familiar with the matter. “Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” an Nvidia spokesperson said in a previous statement shared with Quartz. Shares of the chipmaker fell in after-hours trading on Tuesday after the Bloomberg report. However, its shares were already down 9.5% at the market close, resulting in a market capitalization loss of $279 billion — the [largest-ever single-day drop in market value](https://www.reuters.com/markets/nvidia-chip-index-tumble-investors-pause-ai-rally-2024-09-03/) for a U.S. company, according to Reuters. Meanwhile, Nvidia chief executive Jensen Huang [lost an estimated $9.8 billion](https://qz.com/nvidia-stock-plunge-ceo-jensen-huang-lose-10-billion-1851639520) from the plunge, according to [Bloomberg](https://www.bloomberg.com/news/articles/2024-09-04/nvidia-ceo-jensen-huang-wealth-drops-by-10-billion-in-biggest-one-day-wipeout?sref=P6Q0mxvj).

Despite another record quarter that [beat earnings estimates](https://qz.com/nvidia-second-quarter-earnings-expectations-ai-chips-1851634682), shares of Nvidia [NVDA](https://qz.com/quote/NVDA) have suffered — and the latest sell-off reportedly cost its chief executive almost $10 billion. The chipmaker’s shares closed down 9.5% on Tuesday, resulting in a market capitalization loss of $279 billion — the [largest-ever single-day drop in market value](https://www.reuters.com/markets/nvidia-chip-index-tumble-investors-pause-ai-rally-2024-09-03/) for a U.S. company, according to Reuters. Meanwhile, Nvidia chief executive Jensen Huang lost an estimated $9.8 billion from the plunge, according to [Bloomberg](https://www.bloomberg.com/news/articles/2024-09-04/nvidia-ceo-jensen-huang-wealth-drops-by-10-billion-in-biggest-one-day-wipeout?sref=P6Q0mxvj). Nvidia’s shares continued falling in after-hours trading, after [a report](https://www.bloomberg.com/news/articles/2024-09-03/nvidia-gets-doj-subpoena-in-escalating-antitrust-investigation?srnd=homepage-americas&sref=P6Q0mxvj) said the chipmaker had been subpoenaed by the U.S. Department of Justice over complaints that it is violating antitrust laws. The Justice Department also subpoenaed other companies for evidence after initially sending questionnaires about Nvidia’s business practices, Bloomberg reported, citing unnamed people familiar with the matter. In June, the Justice Department and the Federal Trade Commission [reached a deal to carry out antitrust investigations](https://qz.com/microsoft-nvidia-openai-doj-ftc-investigation-antitrust-1851522748) into Nvidia and fellow artificial intelligence industry leaders Microsoft and OpenAI. U.S. officials are reportedly concerned by complaints that include how Nvidia has made it difficult for customers to switch chip providers. “Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” Nvidia said in a statement shared with Quartz. The chipmaker’s shares were up around 0.9% during mid-day trading on Wednesday. So far this year, the company’s stock has climbed around 126.3%. Nvidia’s shares likely [reflect unimpressed investors who want more](https://qz.com/nvidia-beat-earnings-expectations-investors-want-more-1851637076) from the king of AI chips. The chipmaker reported [record second-quarter revenue of $30 billion](https://qz.com/nvidia-second-quarter-earnings-expectations-ai-chips-1851634682) for fiscal year 2025 — up 122% from a year ago. However, Nvidia set its third-quarter revenue guidance at $32.5 billion, plus or minus 2% — slightly above the average analysts were expecting, but below top-end estimates.

Google has won a court challenge against a 1.49 billion euro European Union antitrust fine imposed five years ago that targeted its online advertising business LONDON -- Google won a court challenge on Wednesday against a 1.49 billion euro ($1.66 billion) European Union antitrust fine [imposed five years ago](https://apnews.com/article/701658e16440433f840e15869b101fa8) that targeted its online advertising business. The EU's General Court said it was throwing out the 2019 penalty imposed by the European Commission, which is the 27-nation bloc's top antitrust enforcer. “The General Court annuls the Commission’s decision in its entirety,” the court said in a press release. The commission's ruling applied to a narrow portion of Google’s ad business: ads that the U.S. tech giant sold next to Google search results on third-party websites. Regulators had accused Google of inserting exclusivity clauses in its contracts that barred these websites from running similarly placed ads sold by Google’s rivals. The commission said when it issued the penalty that Google's behavior resulted in advertisers and website owners having less choice and likely facing higher prices that would be passed on to consumers. But the General Court said the commission “committed errors” when it assessed those clauses. The commission failed to demonstrate that Google's contracts deterred innovation, harmed consumers or helped the company hold on to and strengthen its dominant position in national online search advertising markets, it said. The ruling can be appealed, but only on points of law, to the Court of Justice, the bloc's top court. The commission said in a brief statement that it “will carefully study the judgment and reflect on possible next steps.” Google said it changed its contracts in 2016 to remove the provisions in question, even before the commission imposed its decision. “We are pleased that the court has recognised errors in the original decision and annulled the fine,” Google said in a statement. "We will review the full decision closely.” The company's legal victory comes a week after it lost a final challenge against a separate EU antitrust case for its [shopping comparison service](https://apnews.com/article/google-european-union-antitrust-shopping-court-a281e4e4722efa816e929a52a9939d86) that also involved a hefty fine. They were among three antitrust penalties totaling about 8 billion euros that the commission punished Google with in the previous decade. The penalties marked the beginning of an era of intensifying scrutiny for Big Tech companies. Since then, Google has faced escalating pressure on both sides of the Atlantic over its digital ad business. It’s currently battling the Justice Department in a U.S. federal court over allegations that its dominance over the technology that controls the sale of billions of internet display ads constitutes an illegal monopoly. British competition regulators this month accused the company of abusing its dominance in the country’s digital ad market and giving preference to its own [services](https://apnews.com/article/google-britain-antitrust-digital-ads-investigation-ed3405e99c4bc2be1d1b769834a03e48). EU antitrust enforcers carrying out their own investigation [suggested last year](https://apnews.com/article/google-advertising-antitrust-tech-regulation-18fc5931abd30c71b85aa5d84671993a) that breaking up the company was the only way to satisfy competition concerns about its digital ad business.

**Check out Shift, the best new browser for managing all your apps. [Click HERE to Download Shift for Free](https://shift.com/?utm_source=sourceforge&utm_medium=unitad&utm_campaign=1024)** One window for everything you do on the internet. The first browser to integrate your web apps into one seamless experience. × 175417631 story [](//slashdot.org/index2.pl?fhfilter=eu) Posted by msmash on Wednesday November 06, 2024 @11:05AM from the tussle-continues dept. The European Commission has [opened a formal investigation into Corning](https://www.theverge.com/2024/11/6/24289450/corning-eu-antitrust-investigation-gorilla-glass) to determine whether it has broken antitrust rules with its dominant Gorilla Glass product. From a report: _Corning's Alkali-aluminosilicate glass is used to protect most of the top phones and tablets, with both Samsung and Apple using it extensively across their range of devices. The EU is concerned that Corning has used a variety of exclusivity contracts to exclude rival glass makers from the phone market. "It is very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in the production of the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass," says outgoing EU competition chief Margrethe Vestager. "We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, thereby depriving consumers from cheaper and more break-resistant glass." The Commission's concerns are centered on the agreements with mobile device makers and companies that produce raw glass. The EU is looking into exclusive sourcing obligations that have required device makers to source "all of nearly all" of their glass from Corning, enabled rebates for exclusivity deals, and forced device makers to report on competitive offers and only accept them if Corning failed to price match._

European Union regulators hit Facebook parent Meta with a fine of nearly 800 million euros on Thursday for what it calls “abusive practices” involving its Marketplace online classified ads business LONDON -- European Union regulators issued their first antitrust fine to Facebook parent Meta on Thursday with a penalty of nearly 800 million euros for what they call “abusive practices” involving its Marketplace online classified ads business. The European Commission, the 27-nation bloc's executive branch and top antitrust enforcer, issued the 797.72 million euro ($841 million) penalty after its [long-running investigation](https://apnews.com/article/europe-technology-business-a44f2f093471ffa7ea8ff8e23f8282da) found that the company abused its dominant position and engaged in anti-competitive behavior. It’s the first time the EU has imposed a fine on the social media giant for breaches of the bloc’s competition law. Brussels has already slapped Big Tech rivals [Google](https://apnews.com/article/google-european-union-antitrust-shopping-court-a281e4e4722efa816e929a52a9939d86) and [Apple](https://apnews.com/article/apple-antitrust-fine-music-streaming-europe-439e3e8af91d844dee3dc8ff8012c68f) with billions in antitrust penalties. The commission had [accused Meta](https://apnews.com/article/technology-europe-business-european-union-f688beadd49ab55e326e163960675f19) of distorting competition by tying its online classified ad business to its social network, automatically exposing Facebook users to Marketplace “whether they want it or not" and shutting out competitors. It was also concerned that Meta was imposing unfair trading conditions with terms of service that authorized the company to use ad-related data — generated from competing classified ad platforms who advertise on Facebook or Instagram — to benefit Marketplace. Meta's practices gave it “advantages that other online classified ads service providers could not match,” Margrethe Vestager, the commission's executive vice-president in charge of competition policy, said in a press release “This is illegal under EU antitrust rules. Meta must now stop this behaviour.” Meta said in a statement that the decision fails to prove any “competitive harm” to rivals or consumers and “ignores the realities of the thriving European market for online classified listing services.” The company said the Commission's case ignores the fact that Facebook users can choose to ”engage with Marketplace, and many don't." It said online marketplaces, including global sites like eBay, Europe-wide platforms like Vinted, and national services are continuing to grow. Meta said it would comply with the Commission's order to end the offending conduct and not repeat it, but also vowed to appeal. The case dates back to 2021, when European Union regulators and their counterparts in Britain opened dual investigations into the classified business. The British regulator [wrapped up its investigation](https://apnews.com/article/amazon-meta-britain-antitrust-a63bf08544e67bd3e5eda5c4077f37c8) last year after Meta made concessions. The company continues to face EU scrutiny on other fronts, including investigations into whether Facebook and Instagram [child safety](https://apnews.com/article/facebook-instagram-meta-european-union-digital-services-act-61653e20757e75671092fb746e41ed4b) and [election integrity](https://apnews.com/article/meta-facebook-instagram-1fea720aeb5def876a6d415ed6136463) measures comply with the bloc’s digital rulebook. Meta has previously been hit with a series of [fines](https://apnews.com/article/meta-facebook-european-union-privacy-e40ab7bfa674b91bffb2813dce9b04d1) for breaches of the EU’s stringent privacy laws, including a [record 1.2 billion euro penalty](https://apnews.com/article/meta-facebook-data-privacy-fine-europe-9aa912200226c3d53aa293dca8968f84) last year.

European Union regulators hit Facebook parent Meta with a fine of nearly 800 million euros on Thursday for what it calls “abusive practices” involving its Marketplace online classified ads business LONDON -- European Union regulators issued their first antitrust fine to Facebook parent Meta on Thursday with a penalty of nearly 800 million euros for what they call “abusive practices” involving its Marketplace online classified ads business. The European Commission, the 27-nation bloc's executive branch and top antitrust enforcer, issued the 797.72 million euro ($841 million) penalty after its [long-running investigation](https://apnews.com/article/europe-technology-business-a44f2f093471ffa7ea8ff8e23f8282da) found that the company abused its dominant position and engaged in anti-competitive behavior. It’s the first time the EU has imposed a fine on the social media giant for breaches of the bloc’s competition law. Brussels has already slapped Big Tech rivals [Google](https://apnews.com/article/google-european-union-antitrust-shopping-court-a281e4e4722efa816e929a52a9939d86) and [Apple](https://apnews.com/article/apple-antitrust-fine-music-streaming-europe-439e3e8af91d844dee3dc8ff8012c68f) with billions in antitrust penalties. The commission had [accused Meta](https://apnews.com/article/technology-europe-business-european-union-f688beadd49ab55e326e163960675f19) of distorting competition by tying its online classified ad business to its social network, automatically exposing Facebook users to Marketplace “whether they want it or not" and shutting out competitors. It was also concerned that Meta was imposing unfair trading conditions with terms of service that authorized the company to use ad-related data — generated from competing classified ad platforms who advertise on Facebook or Instagram — to benefit Marketplace. Meta's practices gave it “advantages that other online classified ads service providers could not match,” Margrethe Vestager, the commission's executive vice-president in charge of competition policy, said in a press release “This is illegal under EU antitrust rules. Meta must now stop this behaviour.” Meta said in a statement that the decision fails to prove any “competitive harm” to rivals or consumers and “ignores the realities of the thriving European market for online classified listing services.” The company said the Commission's case ignores the fact that Facebook users can choose to ”engage with Marketplace, and many don't." It said online marketplaces, including global sites like eBay, Europe-wide platforms like Vinted, and national services are continuing to grow. Meta said it would comply with the Commission's order to end the offending conduct and not repeat it, but also vowed to appeal. The case dates back to 2021, when European Union regulators and their counterparts in Britain opened dual investigations into the classified business. The British regulator [wrapped up its investigation](https://apnews.com/article/amazon-meta-britain-antitrust-a63bf08544e67bd3e5eda5c4077f37c8) last year after Meta made concessions. The company continues to face EU scrutiny on other fronts, including investigations into whether Facebook and Instagram [child safety](https://apnews.com/article/facebook-instagram-meta-european-union-digital-services-act-61653e20757e75671092fb746e41ed4b) and [election integrity](https://apnews.com/article/meta-facebook-instagram-1fea720aeb5def876a6d415ed6136463) measures comply with the bloc’s digital rulebook. Meta has previously been hit with a series of [fines](https://apnews.com/article/meta-facebook-european-union-privacy-e40ab7bfa674b91bffb2813dce9b04d1) for breaches of the EU’s stringent privacy laws, including a [record 1.2 billion euro penalty](https://apnews.com/article/meta-facebook-data-privacy-fine-europe-9aa912200226c3d53aa293dca8968f84) last year.

The Federal Trade Commission has opened an investigation into whether Microsoft has violated antitrust law in multiple segments of its wide-ranging business, according to two people familiar with the matter, the latest salvo in a battle by the government to rein in the most powerful tech companies. The agency recently sent a long and detailed formal request for information to the company asking about its cloud computing, artificial intelligence and cybersecurity products, the people said. Of particular interest to the F.T.C. is the way that Microsoft bundles its cloud computing offerings with office and security products, they added, alongside the company’s growing power in the artificial intelligence space. The inquiry signals an intensifying focus on the power of the biggest tech companies over the way people consume information, communicate and shop online. Already, the F.T.C. has sued Amazon and Meta, accusing them of [anticompetitive behavior and stifling rivals.](https://www.nytimes.com/2023/09/26/technology/ftc-amazon.html) The Justice Department has also [sued Google over its dominance](https://www.nytimes.com/2024/09/27/technology/google-antitrust-case-lawsuit.html) in advertising technology, and [Apple for making it difficult](https://www.nytimes.com/2024/03/21/technology/apple-doj-lawsuit-antitrust.html) for consumers to leave its tightly knit universe of devices and software. Microsoft, one of the most valuable companies in the world with a disparate business that includes its Windows operating software, social media platform LinkedIn and video game platform Xbox, had so far largely escaped the recent ramp up in antitrust scrutiny. Microsoft and the F.T.C. declined to comment. Bloomberg and The Financial Times first reported details of the investigation. _This is a developing story. Check back for updates._

Check out Bright Data: award-winning proxy networks, AI-powered web scrapers, and business-ready datasets for download. [**Get started for FREE here**](https://brightdata.com/?utm_source=brand&utm_campaign=brnd-mkt_content_partner_slashdot_banner&hs_signup=1) Welcome to the internet’s most trusted web data platform. × 175555441 story [](//yro.slashdot.org/index2.pl?fhfilter=government)[ ](//yro.slashdot.org/index2.pl?fhfilter=microsoft)[](//yro.slashdot.org/index2.pl?fhfilter=usa) Posted by [BeauHD](https://www.linkedin.com/in/beauhd/) on Wednesday November 27, 2024 @05:40PM from the wide-ranging dept. The FTC has [opened a broad antitrust investigation into Microsoft](https://www.reuters.com/technology/microsoft-faces-wide-ranging-us-antitrust-probe-2024-11-27/), including of its software licensing and cloud computing business. Bloomberg [first reported](https://www.bloomberg.com/news/articles/2024-11-27/us-antitrust-watchdog-launches-broad-microsoft-investigation) the news. Reuters reports: _The probe was approved by FTC Chair Lina Khan ahead of her likely departure in January. The election of Donald Trump as U.S. president and the expectation he will appoint a fellow Republican with a softer approach toward business, leaves the outcome of the investigation up in the air. The FTC is examining allegations that the software giant is potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to other competitive platforms, sources confirmed earlier this month. The FTC is also looking at practices related to cybersecurity and artificial intelligence products, the source said on Wednesday. _

Antitrust enforcers with the Federal Trade Commission have opened a wide-ranging investigation into Microsoft’s business practices, starting off a big legal project that an incoming Trump administration must take up or abandon Antitrust enforcers with the Federal Trade Commission have opened a wide-ranging investigation into Microsoft's business practices, starting a big legal project that an incoming Trump administration must take up or abandon. The FTC is investigating Microsoft's cloud computing business and related product lines such as [artificial intelligence](https://apnews.com/hub/artificial-intelligence) and cybersecurity, according to a person who was not authorized to discuss details of the investigation publicly and spoke to The Associated Press on condition of anonymity. It's the latest action of more than three years of aggressive antitrust enforcement shepherded by FTC Chair Lina Khan, [who was elevated](https://apnews.com/article/joe-biden-technology-business-government-and-politics-57d894c1f85a5d6d2ad4d7d05934e4f8) to lead the agency by President Joe Biden after he came into office pledging tougher scrutiny of monopolistic behavior by Big Tech companies. Khan's FTC already lost one antitrust fight with Microsoft last year when a federal [judge declined to block](https://apnews.com/article/microsoft-activision-xbox-playstation-call-of-duty-2322c62e67e6c1316b3ce043e66cff62) its $69 billion takeover of video game company Activision Blizzard. This case would go deeper into the core of Microsoft's business in a way the company hasn't experienced in the U.S. since its antitrust showdown with the Justice Department in the 1990s. Microsoft declined to comment. Bloomberg News first reported about the investigation last week. The case will only move forward if President-elect Donald Trump's choice to lead the FTC decides to continue the investigation and take it to court. Some analysts are expecting a lighter approach to the tech industry under Trump, though incoming Vice President JD Vance has praised Khan's work. A number of other tech-related antitrust matters are also in play, including the Department of Justice's [investigation into chipmaker Nvidia](https://apnews.com/article/nvidia-openai-microsoft-ai-antitrust-investigation-ftc-doj-0adc9a4a30d4b581a4f07894473ba548) and its push to break up Google — possibly [spinning off the Chrome web browser](https://apnews.com/article/google-android-chrome-antitrust-f4b73387d152a1c14c9df65bf0149a69) — after a federal judge ruled Google [maintained an illegal monopoly](https://www.theverge.com/2024/8/5/24155520/judge-rules-on-us-doj-v-google-antitrust-search-suit) for the last decade.

Antitrust enforcers with the Federal Trade Commission have opened a wide-ranging investigation into Microsoft’s business practices, starting off a big legal project that an incoming Trump administration must take up or abandon Antitrust enforcers with the Federal Trade Commission have opened a wide-ranging investigation into Microsoft's business practices, starting a big legal project that an incoming Trump administration must take up or abandon. The FTC is investigating Microsoft's cloud computing business and related product lines such as [artificial intelligence](https://apnews.com/hub/artificial-intelligence) and cybersecurity, according to a person who was not authorized to discuss details of the investigation publicly and spoke to The Associated Press on condition of anonymity. It's the latest action of more than three years of aggressive antitrust enforcement shepherded by FTC Chair Lina Khan, [who was elevated](https://apnews.com/article/joe-biden-technology-business-government-and-politics-57d894c1f85a5d6d2ad4d7d05934e4f8) to lead the agency by President Joe Biden after he came into office pledging tougher scrutiny of monopolistic behavior by Big Tech companies. Khan's FTC already lost one antitrust fight with Microsoft last year when a federal [judge declined to block](https://apnews.com/article/microsoft-activision-xbox-playstation-call-of-duty-2322c62e67e6c1316b3ce043e66cff62) its $69 billion takeover of video game company Activision Blizzard. This case would go deeper into the core of Microsoft's business in a way the company hasn't experienced in the U.S. since its antitrust showdown with the Justice Department in the 1990s. Microsoft declined to comment. Bloomberg News first reported about the investigation last week. The case will only move forward if President-elect Donald Trump's choice to lead the FTC decides to continue the investigation and take it to court. Some analysts are expecting a lighter approach to the tech industry under Trump, though incoming Vice President JD Vance has praised Khan's work. A number of other tech-related antitrust matters are also in play, including the Department of Justice's [investigation into chipmaker Nvidia](https://apnews.com/article/nvidia-openai-microsoft-ai-antitrust-investigation-ftc-doj-0adc9a4a30d4b581a4f07894473ba548) and its push to break up Google — possibly [spinning off the Chrome web browser](https://apnews.com/article/google-android-chrome-antitrust-f4b73387d152a1c14c9df65bf0149a69) — after a federal judge ruled Google [maintained an illegal monopoly](https://www.theverge.com/2024/8/5/24155520/judge-rules-on-us-doj-v-google-antitrust-search-suit) for the last decade.