According to a court document viewed by Engadget, the Federal Trade Commission accused Amazon of using Signal’s disappearing messages feature to conceal communications as part of its antitrust suit against the company. The FTC says the retailer continued to auto-delete its communications even after the agency notified it that it was under investigation and asked it to preserve them. Founder and former CEO Jeff Bezos and current CEO Andy Jassy are among the accused.

“For years, Amazon’s top executives, including founder and former CEO Jeff Bezos, discuss[ed] sensitive business matters, including antitrust, over the Signal encrypted-messaging app instead of email,” the FTC wrote in the full document, acquired by (Bezos-owned) The Washington Post. “These executives turned on Signal’s ‘disappearing message’ feature, which irrevocably destroys messages, even after Amazon was on notice that Plaintiffs were investigating its conduct.”

The FTC wants a federal judge to compel Amazon to provide documents related to its data handling. The government agency says the retailer didn’t disclose its Signal use until March 2022, ahead of a Wall Street Journal article highlighting the covert practice.

“Although the contents of deleted messages are impossible to recover, the app shows when a user turns the disappearing message feature on, off, or changes the timer for deletions, leaving breadcrumbs showing that Amazon executives’ deletions were widespread,” the document reads. “From the messages that were not deleted, it is apparent that Amazon executives used Signal to talk about competition-related business issues.”

The issue appears to be an increasingly common business practice in Silicon Valley. Last year, the DOJ accused Google of routinely destroying its internal chat histories, which it was required to preserve under federal law. In addition, before Elon Musk bought Twitter and changed its name to X, the company asked a judge to sanction the Tesla founder for using Signal’s auto-deletion to withhold messages sent through the app.

In addition to Bezos and Jassy, The Washington Post reports that the full document names General Counsel David Zapolsky, former CEO of Worldwide Consumer Jeff Wilke and former CEO of Worldwide Operations Dave Clark as participating in the practice.

The US Federal Trade Commission (FTC) has banned noncompete clauses in a move to "drive innovation" and protect workers' rights and wages, the regulator said in a press release. The new rule will free most new and current employees from such agreements, with the exception of "policy-making" executives earning more than $151,164 per year. 

"Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism," said FTC Chair Lina M. Khan. The agency estimated that the new rule will allow the creation of 8,500 new business each year, increase worker earnings by $524 per year and lower health care costs by $194 billion over the next decade. 

Noncompete clauses, widely used in the tech industry, keep employers from freely changing to similar jobs or starting a business in the same field. The result is that workers must often stay in jobs they don't want, switch to a lower-paid position, relocate, or defend against costly litigation. "An estimated 30 million workers — nearly one in five Americans [in the workforce] —are subject to a noncompete," according to the FTC.

The Commission found that noncompetes tend to negatively affect competitive conditions in labor markets by inhibiting efficient matching between workers and employers. There is also evidence that noncompetes lead to increased market concentration and higher prices for consumers.

Companies must now cancel existing noncompete clauses and notify employees about the change. The ruling applies to most employees and future hires, but current deals with senior executives still apply on the grounds that such agreements are likely to have been agreed upon by both parties. 

Tech companies ostensibly use noncompetes as a way to protect IP, but they function in reality to lock in workers. The FTC said that trade secret laws and non-disclosure agreements (NDAs) are a better way to protect IP, and "employers that wish to retain employees can compete on the merits for the worker's labor services by improving wages and working conditions."  

Microsoft, the third largest tech industry employer in the US, eliminated such clauses back in 2022. "While our existing employee agreements have noncompete obligations, we do not endorse the use of such provisions as a retention tool," the company said at the time. 

The FTC vote went 3 to 2 along party lines. Republic commissioner Melissa Holyoke said the Commission "overstepped the boundaries of its power" and estimated the ruling would be challenged in court and struck down. 

Amazon customers in California won't be able to get drone deliveries anymore. The e-commerce company has closed its delivery site in Lockeford, which has been operational since 2022, and will now offer its personnel in the area opportunities at other sites. Amazon made the revelation almost as an aside in an announcement that it's launching drone deliveries in the West Valley Phoenix Metro area later this year. Its drones will be deployed from facilities near its Tolleson fulfillment center. Amazon says it's the first time drone deliveries will be fully integrated into its network, and it will allow the company to fulfill and deliver purchases more quickly. 

The company doesn't have an exact launch date for its drone deliveries in Phoenix, because it's still working with the Federal Aviation Administration (FAA) and local officials to get the permits it needs. It does have the support of Phoenix Mayor Kate Gallego, though, who called drone deliveries "the future" and said it would help her city "reduce local pollution" and further cement it "as a hotbed for the innovative technology of tomorrow."

While Amazon's drone delivery operations are shutting down in California, it'll continue its activities in College Station, Texas. Shortly after it started using drones as couriers in those two areas, The Information reported that the company has made just a handful of deliveries via the method, mostly due to FAA limitations that prohibit the machines from flying over roads or people unless Amazon gets permission for every case. It eventually reached 100 drone deliveries by the middle of 2023, though that was likely far from what the company had hoped to get by then, since it aimed to reach 10,000 deliveries by the end of the year. 

Those setbacks, however, don't seem to have deterred Amazon. It's currently testing its next-gen MK30 drones that can fly twice as far as its current drones, and it also said that it's deploying drone deliveries in more locations in the US next year. 

Grindr has been sued for allegedly sharing personal information with advertising companies without users' consent. A lawsuit filed in London claims that the data included HIV statuses and test dates, ethnicity and sexual orientation, Bloomberg reports.

According to the class action-style suit, the alleged data sharing involved adtech companies Localytics and Apptimize. Grindr is said to have supplied the companies with user info before April 2018 and then between May 2018 and April 2020. Engadget has asked Grindr for comment.

In April 2018, Grindr admitted it had shared HIV data with Apptimize and Localytics following an investigation by BuzzFeed News and Norwegian non-profit SINTEF. It said it would stop the practice.

This isn't the only time Grindr has been accused of sharing users' personal information. A 2022 report from The Wall Street Journal indicated that precise location data on Grindr users was up for sale for at least three years. In addition, Norway's data protection agency fined Grindr $6 million in 2021 for violating the European Union's General Data Protection Regulation. The agency said Grindr had unlawfully shared "personal data with third parties for marketing purposes."

Amazon published a blog post on Wednesday providing an update about its Just Walk Out technology, which it reportedly pulled from its Fresh grocery stores earlier this month. While extolling Just Walk Out’s virtues as a sales pitch to potential retail partners, the article lists a startlingly minuscule number of (non-Amazon) stores using the tech. There are now “more than 140 third-party locations with Just Walk Out technology in the U.S., UK, Australia, and Canada.”

Mind you, that isn’t the number of companies or retail chains licensing the tech; that’s the total number of locations. Nor is that the tally in one state or even one country. In four countries combined — with a total population of about 465 million — Just Walk Out is being used in “more than 140 third-party locations.”

On average, that means there’s one third-party Just Walk Out store for every 3.3 million people in those four countries. (They must be busy!) By contrast, there are over one million retail locations in the US, and, as of 2019, Starbucks had 241 locations in New York City alone, and there are over one million

Amazon had reportedly already planned to remove Just Walk Out tech from its Fresh grocery stores for roughly a year because it was too expensive and complicated for larger retail spaces to run and maintain. The company now pitches its tech as ideal for smaller convenience stores with fewer customers and products — like its own Amazon Go stores, which it has been busy shutting down over the last couple of years.

Amazon

The company reportedly gutted the team of developers working on Just Walk Out tech earlier this month. (You get one guess as to how the laid-off workers were instructed to leave the office.) As part of recent layoffs from Amazon’s AWS unit and Physical Stores Team, the company allegedly left only “a skeleton crew” to work on the tech moving forward. A skeleton crew to maintain a skeleton sounds about right.

In fairness, some of those locations are at high-traffic venues. That includes nine merch stores at Seattle’s Lumen Field (home to the Seahawks and Sounders), near Amazon’s headquarters. Delaware North, a large hospitality and entertainment company, has opened “more than a dozen” stores using the tech. Amazon says stores adopting Just Walk Out have reported increased transactions, sales and customer satisfaction.

Despite the reported gutting of Just Walk Out’s development team, Amazon says it “continues to invent the next generation of this technology to improve the checkout experience for large-format stores.” Its next steps include improving latency for “faster and more reliable receipts,” new algorithms to recognize customer actions and new sensors better.

If the reports about layoffs are accurate, the handful of remaining Just Walk Out developers will have their work cut out for them.

After being briefly overtaken by Apple in 2023, Samsung once again holds the title for most global smartphone shipments. The International Data Corporation (IDC) Mobile Phone Tracker's preliminary data for 2024's first quarter showed Samsung reclaiming the lead it has held since 2010. 

Samsung has reportedly shipped 60.1 million units worldwide in quarter one, representing 20.8 percent of the market share. Apple shipped 50.1 million units for 17.3 percent of the market share. Both companies saw a decrease from 2023's quarter one, though Apple's was much more significant (-9.6 percent) than Samsung's (-0.7 percent). The top five brands remained the same in quarter one as all of 2023, rounded out by Xiaomi with 40.8 million units, Transsion with 28.5 million units and OPPO with 25.2 million units shipped. Transsion overtook OPPO to enter fourth place. 

The IDC points to these numbers as an indication that the smartphone market is strengthening. "Firstly, we continue to see growth in value and average selling prices (ASPs) as consumers opt for more expensive devices knowing they will hold onto their devices longer. Secondly, there is a shift in power among the Top 5 companies, which will likely continue as market players adjust their strategies in a post-recovery world," said Nabila Popal, research director with IDC's Worldwide Tracker team in a statement. "Xiaomi is coming back strong from the large declines experienced over the past two years and Transsion is becoming a stable presence in the Top 5 with aggressive growth in international markets. In contrast, while the Top 2 players both saw negative growth in the first quarter, it seems Samsung is in a stronger position overall than they were in recent quarters."

Late last year, over 100 employees of Avalanche Studios, the makers of Just Cause, announced an intent to unionize. The workers have officially ironed out a collective bargaining agreement with the Swedish labor unions Unionen and Engineers of Sweden. The agreement goes into effect during the second quarter of 2025.

While specifics of the agreement remain unknown, Avalanche said that it “will help standardize frameworks around essential areas such as salaries, benefits, employee influence, and career support.” The company says it’s working closely with both unions to ensure a smooth implementation of these frameworks.

Avalanche was founded in Sweden, but has since become a global entity. With this in mind, the move to unionize only impacts workers located in Sweden, which amounts to around 100 people. The company employs more than 500 workers globally.

Despite that caveat, this is still another high-profile move toward improving the rights of workers in the gaming industry. Avalanche joins several other companies that recently organized under collective labor contracts. Sega of America workers overwhelmingly voted to unionize last year, a move that impacted 200 employees. Over 300 ZeniMax Studios quality assurance workers voted to unionize last year, and parent company Microsoft didn’t stand in the way. Activision, another Microsoft company, boasts a union with over 600 members, which is the largest one in the entire industry.

This is all good news for workers, but there’s also a dark cloud floating around the industry. There have been a boatload of layoffs throughout the past several months. As a matter of fact, over 6,000 people lost their jobs in January alone. Impacted workers hail from many of the companies mentioned above, like Sega of America, Activision Blizzard and ZeniMax.

As for Avalanche, it’s continuing work on the forthcoming Xbox exclusive Contraband. The game’s been in the pipeline since 2021 and it looks to be an open-world co-op adventure set in the 1970s.

Meta has asked a judge to dismiss a Federal Trade Commission antitrust case against the company before it goes to trial. Alongside 48 states and territories, the FTC sued Meta in 2020 in an attempt to force the company to divest Instagram and WhatsApp, which it bought in 2012 and 2014, respectively.

The agency and dozens of attorneys general claim that Meta (then known as Facebook) bought the two platforms to stifle competition. Meta CEO Mark Zuckerberg “recognized that by acquiring and controlling Instagram, Facebook would not only squelch the direct threat that Instagram posed, but also significantly hinder another firm from using photo-sharing on mobile phones to gain popularity as a provider of personal social networking,” the FTC asserted. “Just as with Instagram, WhatsApp presented a powerful threat to Facebook’s personal social networking monopoly, which Facebook targeted for acquisition rather than competition.”

Meta notes that not only did the FTC approve both acquisitions in the first place, but its initial complaint was dismissed for failing to to state a plausible claim. While a judge has allowed an amended complaint to move forward, Meta claims that "the agency has done nothing to build its case through the discovery process" to show that the company holds monopoly power in the “personal social networking services” market and that it caused harm to consumers and competition through the purchases.

In its motion for summary judgment, the company points out that Instagram, which accounted for nearly 30 percent of the company's total revenue in the first half of 2022, wasn't making any money when it bought the service for $1 billion in 2012. Instagram had just two percent of the billion-plus users it has now, Meta says, adding that it introduced features such as direct messages, livestreaming, Stories and shopping. As for WhatsApp, Meta made the service free to use, added end-to-end encryption and implemented voice and video calling.

Meta argues that it has invested billions of dollars and millions of hours of work into the apps. It claims that both Instagram and WhatsApp are in a better place as a result, to the benefit of consumers and businesses.

Elsewhere, Meta argues that the FTC failed to establish a relevant antitrust market, claiming that the agency's definition of an “personal social networking services” market used "an artificially limited set of only four companies – Facebook, Instagram, Snapchat and MeWe – ignoring many of the most popular activities people engage in on Facebook and Instagram." For instance, Meta points out that YouTube and TikTok offer similar short-form video features to Reels.

What's more, the FTC's allegation that Meta has a “dominant share” of the artificial “personal social networking services market” doesn't hold up, according to the company. Meta says that's because the FTC's "market share numbers are meaningless without a properly defined market."

Meta, which accused the FTC of wielding "structurally unconstitutional authority" against the company in a separate case last year, also took the opportunity to take more potshots at the agency and antitrust rules. "The decision to revisit done deals is tantamount to announcing that no sale will ever be final," Jennifer Newstead, Meta’s Chief Legal Officer, wrote in a blog post. Newstead claims the Instagram and WhatsApp "lawsuit not only sows doubt and uncertainty about the US government’s merger review process and whether acquiring businesses can actually rely on the outcomes of the regulatory review process, but it will also make companies think twice about investing in innovation, since they may be punished if that innovation leads to success."

It looks like President Biden’s CHIPS Act is starting to pay off. Samsung is planning on doubling its investment in Texas, according to a report by The Wall Street Journal. This will bring the total investment in the state’s chip-manufacturing sector to $44 billion, as Samsung already spent nearly $20 billion to build a factory back in 2021.

The ambitious expansion will reportedly take the form of a new chip manufacturing facility, a packaging site and a research and development space. It’ll all be located in or near Taylor, Texas, as that’s where the pre-existing semiconductor facility was built. The current manufacturing hub isn’t operational yet, but will begin building “crucial logic chips” later this year. For the geographically challenged, Taylor is around a 40 minute drive from Austin.

If this actually happens, it’ll be a huge win for the Biden administration. One of the main goals of the CHIPS Act, after all, is to lure global chipmakers to build on US soil. To that end, Washington plans on awarding more than $6 billion to Samsung as further incentive to keep things running in the good ole USA.

The CHIPS Act has allowed the federal government to award funding and offer loans to many tech companies to encourage domestic spending. Back in February, the multinational semiconductor company GlobalFoundries received a grant of $1.5 billion to help pay for a major US expansion, in addition to a $1.6 billion loan. It plans on building a new fabrication facility in Malta, New York, which will handle the manufacture of chips for the automotive, aerospace, defense and AI industries.

More recently, Intel received the largest CHIPS grant to date, snagging up to $8.5 billion to continue various US-based operations. The current plan is for Intel to use that money to manufacture plants that make leading-edge semiconductor chips meant for use in AI and other advanced applications. The company’s building two new fabrication facilities in Arizona and two in Ohio. Additionally, it’s going to use the money to modernize two pre-existing fabs in New Mexico and expand one location in Oregon. All told, Intel is going to invest $100 billion in US-based chip manufacturing. The various projects are expected to create 20,000 construction and 10,000 manufacturing jobs.

The Biden administration signed the CHIPS and Science Act into law back in 2022 to foster domestic semiconductor research and manufacturing and to lessen America’s reliance on Chinese suppliers. It sets aside $52 billion in tax credits and funding for firms to expand stateside production.

AI models using individual's work without permission (or compensation) is nothing new, with entities like The New York Times and Getty Images initiating lawsuits against AI creators alongside artists and writers. In March, OpenAI CTO Mira Murati contributed to the ongoing uncertainty, telling The Wall Street Journal she wasn't sure if Sora, the company's new text-to-video AI tool, takes data from YouTube, Instagram or Facebook posts. Now, YouTube's CEO Neal Mohan has responded with a clear warning to OpenAI that using its videos to teach Sora would be a "clear violation" of the platform's terms of use.

In an interview with Bloomberg Originals host Emily Chang, Mohan stated, "From a creator's perspective, when a creator uploads their hard work to our platform, they have certain expectations. One of those expectations is that the terms of service is going to be abided by. It does not allow for things like transcripts or video bits to be downloaded, and that is a clear violation of our terms of service. Those are the rules of the road in terms of content on our platform."

A lot of uncertainty and controversy still surrounds how OpenAI trains Sora, along with ChatGPT and DALL-E, with The Wall Street Journal recently reporting the company plans to use YouTube video transcriptions to train GPT-5. On the other hand, OpenAI competitor Google is apparently respecting the rules — at least when it comes to YouTube (which it owns). Google's AI model Gemini requires similar data to learn but Mohan claims it only uses certain videos, depending on permissions are given in each creator's licensing contract.