Documents reveal the behind-the-scenes battle between Spotify and Apple that lead to an antitrust investigation - Yahoo Finance | Canada News Media
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Documents reveal the behind-the-scenes battle between Spotify and Apple that lead to an antitrust investigation – Yahoo Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Apple (AAPL) and Spotify (SPOT) don’t have the best relationship. The two companies have clashed for years over how Apple handles Spotify’s apps, saying that the iPhone maker arbitrarily punishes the music streaming giant as a means to protect its own Apple Music and iTunes services.” data-reactid=”16″>Apple (AAPL) and Spotify (SPOT) don’t have the best relationship. The two companies have clashed for years over how Apple handles Spotify’s apps, saying that the iPhone maker arbitrarily punishes the music streaming giant as a means to protect its own Apple Music and iTunes services.

That’s part of the reason Apple is now being investigated for potential antitrust violations by the Department of Justice, state attorneys general, and the House Judiciary Committee.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On Wednesday, Apple CEO Tim Cook, as well as the heads of Amazon (AMZN), Facebook (FB), and Google (GOOG, GOOGL), sat before the Judiciary Committee’s Subcommittee on Antitrust, Commercial, and Administrative Law to discuss those accusations and how it treats competing apps in its app marketplace.” data-reactid=”22″>On Wednesday, Apple CEO Tim Cook, as well as the heads of Amazon (AMZN), Facebook (FB), and Google (GOOG, GOOGL), sat before the Judiciary Committee’s Subcommittee on Antitrust, Commercial, and Administrative Law to discuss those accusations and how it treats competing apps in its app marketplace.

Apple CEO Tim Cook speaks via video conference during a House Judiciary subcommittee hearing on antitrust on Capitol Hill on Wednesday, July 29, 2020, in Washington. (Graeme Jennings/Pool via AP)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Documents presented during the hearing provide a deeper look at the issues between the firms and why Spotify has become one of the key contributors to the testimony against Apple.” data-reactid=”43″>Documents presented during the hearing provide a deeper look at the issues between the firms and why Spotify has become one of the key contributors to the testimony against Apple.

The files come in the form of a written exchange between Apple vice president and general counsel Bruce Sewell and Spotify general counsel Horacio Gutierrez. In the documents, Sewell tells Gutierrez that a then-recent update to the Spotify app doesn’t comply with App Store guidelines because it provides users with a link that takes users outside of the app to Spotify’s own website where users can sign up for Spotify’s premium paid service.

According to Apple’s App Store rules, developers are not allowed to provide users with links from their apps to their own websites for transactions. Apple created the rule to ensure that the tech giant could still capture a cut of subscription sign ups in apps.

App developers can provide so-called “reader” apps in which users can access content they’ve purchased outside of the app, but the app itself can’t give a direct way for users to make such purchases. There are exceptions for apps, however, that offer physical goods, such as ride sharing and food delivery apps.

Spotify has been fighting with Apple for years over how the tech giant treat’s the streaming service’s app. (AP Photo/Patrick Semansky, File)

Sewell explains Apple’s stance to Gutierrez, then threatens Spotify with having its app removed from the App Store if it doesn’t comply with Apple’s request.

“If our rules change I will let you know at once, but for now, and in the future, if Spotify wishes to continue to utilize the App Store, it must follow the rules that apply to every other app developer. Your failure to do so will result in removal from the App Store,” Sewell wrote.

But in his own correspondence, Gutierrez tells Sewell that Spotify isn’t pushing customers from its iOS app to its own website and payment portal, but rather, that the company was doing so through email campaigns outside of its app.

“Plainly, there is no legal or contractual basis for Apple to interfere with app developers’ right to directly and freely communicate with their customers, especially in a case like this where the communication takes place outside of the app itself,” Gutierrez wrote.

During his testimony on Wednesday, Cook explained to members of the subcommittee that the vast majority of apps in the App Store don’t have to pay a commission, because they are free. Those that do, pay 30% of each purchase to Apple, while subscription services pay a 30% commission for each purchase, and 15% for each subsequent year.

Apple has long held that all apps in the App Store are treated equally, but Gutierrez counters that argument in his letter pointing to other apps like LinkedIn and Deezer that, at the time, offered ways for users to sign up for their services through their apps.

“This all is well beyond what Spotify’s app does, and one is hard pressed to imagine what could drive such obviously discriminatory treatment besides an attempt to unlawfully gain competitive advantage,” he wrote.

At the Judiciary Committee hearing, Apple’s treatment of apps was once again raised, this time by Representative Joe Neguse (D-CO), who questioned why app developers weren’t allowed to copy features and designs of existing apps, while Apple specifically mentions that it can copy developers’ apps in its developer agreement.

Apple argues that its App Store has created 1.9 million jobs and hosts 1.7 million apps including the likes of Uber and Grubhub. The company also provides assistance to app developers and software to run such apps.

Apple’s antitrust woes are unlikely to result in the company being broken apart, as its issue specifically relates to whether it favors its own apps over competitors’ offerings.

But given the company’s rocky relationship with Spotify, and that company’s push for antitrust investigations into Apple in both the U.S. and the European Union, it seems equally likely that Apple will need to make some changes to how it competes in the app space.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Got a tip? Email Daniel Howley at&nbsp;dhowley@yahoofinance.com&nbsp;over via encrypted mail at&nbsp;danielphowley@protonmail.com, and follow him on Twitter at&nbsp;@DanielHowley.” data-reactid=”82″>Got a tip? Email Daniel Howley at dhowley@yahoofinance.com over via encrypted mail at danielphowley@protonmail.com, and follow him on Twitter at @DanielHowley.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More from Dan:” data-reactid=”83″>More from Dan:

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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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