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Execs tell Congress how they've been burned by tech giants in a rare public rebuke – CNBC

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On Friday, executives from four companies aired their grievances about the Big Tech giants to Congress without the protection of a closed door.

While criticisms of Facebook, Google, Apple and Amazon are far from uncommon these days among academics and politicians, as well as privately by developers and advertisers, it’s more rare to see these concerns raised publicly by companies that still rely on Big Tech’s services.

But witnesses at Friday’s testimony to the House Antitrust Subcommittee at the University of Colorado said they felt they were in a position to speak out despite potential risks to their businesses. Sonos CEO Patrick Spence, PopSockets CEO David Barnett, Basecamp CTO David Heinemeier Hansson and Tile General Counsel Kirsten Daru took the stand.

Spence said his company is “in the fortunate position where I think we’re strong enough financially” to speak out, though he said he is still “taking a risk.” Sonos filed suit against Google for patent infringement last week and alleges Amazon behaved similarly but that it does not have the capacity to sue both simultaneously.

“I feel that this is a big enough issue that people need to speak out,” Spence told lawmakers. “We have a responsibility to speak for those that can’t.”

The witnesses described some of the tactics that could make smaller players who rely on the large tech firms’ services wary of coming forward. Barnett accused Amazon of what he called “bullying with a smile,” for example. He claimed Amazon executives would call to pressure the company to lower prices on the platform or risk Amazon sourcing PopSocket products from third-party sellers. PopSockets ultimately ended their relationship with Amazon, but Barnett said they continued to have trouble communicating with the company after that about resolving their balance.

An Amazon spokesperson said in a statement, “We sought to continue working with Popsockets as a vendor to ensure that we could provide competitive prices, availability, broad selection and fast delivery for those products to our customers. Like any brand, however, PopSockets is free to choose which retailers it supplies and chose to stop selling directly through Amazon. Even so, we’ve continued to work with PopSockets to address our shared concerns about counterfeit, and continue to have a relationship with PopSockets through Merch by Amazon, which enables other sellers to create customized PopSockets for sale.”

Spence said companies like Google and Amazon use their dominance to both subsidize products in new markets they are entering and impose restrictions on third-parties to maintain their dominance. In his opening remarks, Spence accused Google of refusing to let Sonos integrate Google Assistant into its products if it implemented a feature that lets users host multiple voice assistants at the same time. As a result, Spence said, Sonos customers must choose a single voice assistant on their devices through an app (he said Amazon, which lets Sonos users access Alexa, did not place similar restrictions on that feature).

“There’s such a dominant power that exists with these companies that when Google or companies like that are asking for these things, you really, even for a company of our size, feel that you have no choice but to provide them,” Spence said.

A Google spokesperson said in a statement that Sonos has made misleading statements about our history of working together. Our technology and devices were designed independently. We deny their claims vigorously, and will be defending against them.”

Hansson, the Basecamp CTO, blasted Facebook and Google’s advertising models, focusing in particular on Google’s search advertising, which he called a “shakedown.” Despite working to build a good reputation online for 20 years to show up in the first page of search results, Hansson said, “the only thing that matters is whether you buy the advertisement” at the top of the results.

“For trademarked terms like the name of a business, our policy balances the interest of both users and advertisers,” a Google spokeperson told CNBC is response to Hansson’s statements. “Like other platforms, we allow competitors to bid on trademarked terms because it offers users more choice when they are searching. However, if a trademark owner files a complaint, we will block competitors from using their business name in the actual ad text.”

Facebook declined to comment comment on the hearing.

Daru, of Tile, lodged her complaints against Apple for its restrictions on its App Store and for creating a product similar to Tile’s item-finding technology. Daru said the competition in itself isn’t the problem, but unlike a third-party app like Tile, Apple’s own “Find My” apps ship by default on Apple devices. Daru also said Apple’s new requirements for developers, which it touts as privacy advancements, further entrench its own technology instead.

Competing with Apple is like “playing a soccer game,” said Daru. “You might be the best team in the league, but you’re playing against a team that owns the field, the ball, the stadium and the entire league and they can change the rules of the game … at any time.”

In a statement, Apple said, “In regard to third-party apps, we created the App Store with two goals in mind: that it be a safe and trusted place for customers to discover and download apps, and a great business opportunity for all developers. We continually work with developers and take their feedback on how to help protect user privacy while also providing the tools developers need to make the best app experiences.”

Lawmakers wrapped up the hearing by asking what they could do to alleviate the stress the witnesses have felt from Big Tech firms.

“These dominant companies can infringe the intellectual property and invention of other companies and they do it calculating the fact that if they have to pay down the road, if that’s enforced later on, they’ll pay the fee and by that point the competition will be out of it and they’ll be so dominant that it’s a rounding error at the end of the day,” Spence said. “So swift action on that front and material action is something that I think would help.”

“We don’t have the resources to fight Amazon. We didn’t sue Amazon. We never will sue Amazon,” Barnett said. “We could use some help.”

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our 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,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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