After more than three years of litigation, Apple has quietly dropped its lawsuit against Gerard Williams III, the former chip executive the company accused of poaching employees. Williams spent nearly a decade working for Apple, leading development on some of its most important chips – including the A7, the first 64-bit processor for mobile devices.

In 2019, Williams left Apple to co-found Nuvia, a chip design firm later acquired by Qualcomm in 2021. When the tech giant first sued Williams, it accused him of “secretly” starting Nuvia and recruiting talent for his startup while he was still an Apple employee. Williams disputed Apple’s claims and accused the company of spying on his text messages.

As reported by Bloomberg, Apple filed a request to dismiss the suit against Williams earlier this week. The document does not state the company’s reason for dropping the case. However, it does say Apple did so “with prejudice,” meaning it cannot file the same claim against Williams again. It also suggests the two sides came to a settlement. Apple did not immediately respond to Engadget’s comment request.

In the weeks leading up to Wednesday’s dismissal request, court documents show Apple sought the recusal of Judge Sunil Kulkarni. Around March 17th, 2023, the company added two lawyers from the legal firm Morrison and Foerster to the team litigating its case against Williams. On March 28th, Judge Sunil Kulkarni filed a brief disclosing that he had worked at Morrison and Foerster for approximately 13 years and had kept in contact “over the years” with Bryan Wilson and Ken Kuwayti, the two “MoFo” attorneys Apple hired on as counsel earlier in the month.

“I have occasional social interactions with them (e.g., bimonthly lunches, seeing them at parties of mutual friends, and so on),” Judge Kulkarni wrote. “I believe I have recused myself from past cases involving Mr. Wilson and/or Mr. Kuwayti, but solely as a prophylactic measure.” After learning of the involvement of his former colleagues, Judge Kulkarni held an “informal” meeting with the two sides where he said he was “leaning toward recusal” if Apple retained the counsel of either Wilson or Kuwayti. In that same meeting, Kulkarni says he told Apple and Williams his recusal from the case would likely mean a delay in the case going to trial. Before the meeting, the case was scheduled to go to trial on October 2nd, 2023.

In a brief filed on April 6th, Williams and his legal team came out strongly against the idea of Judge Kulkarni removing himself from the case, arguing Apple’s position on the subject “should not matter” and that the move had the potential to be “prejudicial” against the former exec.

“Given that this case has been pending for over three years – with a fast-approaching discovery deadline and trial date – and given the Court’s familiarity with the parties, the case history, and the applicable law, the Court’s recusal decision has the potential to be prejudicial and disruptive,” the brief states. It then argues it was Apple that introduced a potential conflict of interest to the case.

“Even if a conflict existed that might warrant recusal, the procedure imposed by the Court – allowing the party that introduced the ‘conflict’ and would theoretically stand to benefit from it – to decide whether to waive it is inconsistent with basic rules of fairness and due process,” the brief concludes. “Such a procedure would set a dangerous precedent for judge shopping in the middle of a case: any part, at any time, could recruit former colleagues of a sitting judge and then force his or her recusal.”

Putting together what happened after that point is more difficult. However, after the 6th, the court in Santa Clara held multiple hearings where no one from either side appeared. Apple then filed to dismiss the case on April 26th. Qualcomm, Williams' current employer, did not immediately respond to Engadget's request for comment. 

A former Apple employee who pled guilty to defrauding the company out of over $17 million has been sentenced to three years in prison and ordered to repay his ill-gotten gains. Dhirendra Prasad, who primarily worked as a buyer in Apple's Global Service Supply Chain department during his time at the company, admitted to charges of conspiracy to commit mail fraud and conspiracy to defraud the United States in November. As iMore notes, two charges of conspiracy to commit money laundering were dismissed during sentencing.

Prasad joined Apple in 2008 and carried out his schemes between 2011 and 2018. According to the US Attorney's Office for the Northern District of California, he conspired with two vendors to conduct fraud against Apple by "taking kickbacks, stealing parts, inflating invoices and causing Apple to pay for items and services it never received." Prasad is said to have used his insider knowledge of Apple's fraud detection practices to avoid being caught for several years.

The government has already seized $5.5 million worth of assets from Prasad, who a judge ordered to pay an additional forfeiture money judgment of $8.1 million. On top of that sum and the $17.4 million Prasad has been told to give back to Apple, he was ordered to pay $1.9 million to the Internal Revenue Service — he conceded that he did not pay tax on the proceeds of his schemes. Following Prasad's time in prison, he will have to serve three years of supervised release.

Samsung's earnings results for the first quarter of 2023 are in, and they're a massive departure from the same period's last year wherein it reported a steep rise in profit. The tech giant has posted a consolidated revenue of KRW 63.75 trillion (US$47.5 billion) and an operating profit of only KRW 0.64 trillion (US$477 million), mostly because its semiconductor business has (according to Reuters) reported record losses. Samsung's DS division, which operates its semiconductor and display businesses, reported a consolidated revenue of KRW 13.73 trillion (US$10.2 billion). However, it also posted KRW 4.58 trillion (US$3.4 billion) in operating losses for the first quarter.

Overall demand for memory products has been decreasing over the past months, with the division reporting only KRW 0.27 trillion (US$201 million) in operating profit for the fourth quarter of 2022. This quarter, Samsung blamed ongoing inventory adjustments, as well as the economic slowdown and the weakened customer spending that resulted from it for the decrease in overall demand. That said, the company expects demand to gradually recover in the second half of the year as customers' inventory levels get depleted.

Despite the loss in profits overall, Samsung's mobile division performed well in the first quarter. The company's MX and Networks businesses, which cover both mobile devices and telecommunication network equipment, posted KRW 31.82 trillion (US$23.7 billion) in consolidated revenue and KRW 3.94 trillion (US$2.9 billion) in operating profit. Samsung explained that while there was a low demand for smartphones overall, the market for premium devices grew year-over-year. The division's positive performance was apparently made possible by the strong sales of the Galaxy S23 series, specifically the Galaxy S23 Ultra. 

Going forward, the company's MX business will focus on supporting Galaxy S23 sales while boosting the marketing for its foldable phones to increase awareness about the devices before the next generation drops. Samsung is expected to unveil its next foldable devices in the second half of the year, possibly in August likes its previous launches. 

On April 24th, 2023, reports circulated that Blizzard Entertainment was being sued by former Chinese publishing partner NetEase after servers shutdown in January when the two failed to reach a continuation agreement. However, a day later, it turns out that NetEase was in fact not suing the company — instead, as reported by PC Gamer, the suit is being brought by a single individual who is known to be a serial litigant with no history with NetEase. It appears the court documents listened NetEase erroneously; the company does not have anything to do with the lawsuit. Originally, MMO-focused gaming website Wowhead noticed the suit.

Since this story was originally published, those court documents have been re-published to reflect that the suits are coming from a Yang Jun; all mentions of NetEase have been removed.

“We haven’t received the lawsuit yet, but we are confident we aren’t in breach of any licensing agreements. The terms NetEase appears to be complaining about reflect standard industry practice and have been mutually-beneficial for years," an Activision rep wrote in a statement to Engadget prior to the discovery that NetEase was not involved in the lawsuit. "While this persistent campaign by one former partner is disappointing and puzzling, it’s important to note that we have enjoyed nearly two decades of positive experiences operating in China, and remain committed to serving players and protecting their interests.”

Blizzard and NetEase were successful partners for the past 14 years before negotiations broke down to renew the long-term licensing agreement. This led to a complete cessation of all Blizzard games and services in the region, including popular properties like World of Warcraft, Overwatch 2, Starcraft and Diablo III, among others. Millions of Chinese players lost access to their accounts and related data. Some started fresh with new accounts in other regions, but most (112 million people) opted for a refund.

The agreement did not end amicably, with reports of NetEase staffers tearing down the Blizzard offices and livestreaming the destruction of a World of Warcraft statue. NetEase's president of global investment and partnership, Simon Zhu, also seemed to call out a high-ranking Blizzard staffer as a “jerk” in a LinkedIn post. Despite the seeming animosity, though, the lawsuit does not come from NetEase.

Update, 4/24/23, 3:30PM ET: This story and its headline have been updated to indicate that this lawsuit hasn't been confirmed yet, as Activision itself nor Engadget has seen a copy of the lawsuit yet. 

Update, 4/25/23, 11:30AM ET: A full statement provided by Activision has been added to the story.

Update, 4/25/23, 2:35PM ET: This story and its headline has been updated to reflect the recent development that NetEase was erroneously named in this lawsuit. 

The UK's Competition and Markets Authority (CMA) has introduced a new bill that would give it the power slap the biggest tech companies with a fine worth billions if they don't comply with its rules. It's a multi-faceted bill that's aimed at protecting consumers and encouraging competition, and it will allow the CMA to directly enforce the law instead of having to go through the court. 

If the bill passes, the agency's Digital Markets Unit (DMU) will be able to enforce a set of rules on how companies it deems to have "strategic market status" in key digital services have to operate. The CMA didn't name any specific company in its announcement, but the DMU will most likely identify Google, Apple and Amazon as organizations with strategic market status. 

The DMU could require them to be more transparent on how their app store review systems work or to open up their data to rivals — in Google's case, it could be a rival search engine. If these companies fail to abide by the new rules, the DMU could fine them up to 10 percent of their global turnover. Apple, for example, earned around $283 billion in revenue for 2022, so that could translate to a massive fine worth $28.3 billion. 

In addition to giving CMA the ability to set rules for tech giants, the new bill will also address the problem with "subscription traps," which is costing UK consumers £1.6 billion (US$2 billion) a year. Its new rules will require businesses, not just the biggest tech companies, to provide customers with clearer information before they start a subscription. Companies will also be required to send customers notifications if their free or low-cost trial is coming to an end and before their subscription auto-renews. Plus, companies will have to provide customers an easy way to unsubscribe. In the US, the Federal Trade Commission proposed a similar rule back in March that would make it as easy to cancel subscriptions as it is to sign up. The proposal is also still waiting for approval before it can be implemented. 

Another concern the bill will address is fake reviews. The new rules are expected to prohibit companies from commissioning the composition and submission of fake reviews and from posting reviews without taking steps to ensure that they're genuine. Further, the rules would make it illegal to offer or to advertise submitting, commissioning and facilitating fake reviews.

Sarah Cardell, Chief Executive of the CMA, said in a statement:

"The new powers in this bill help the CMA take swift, decisive action to tackle rip offs, protecting consumers whether they are shopping online or on the high street. The new fining powers will provide an important deterrent to businesses seeking to take advantage of people while also ensuring fair dealing businesses can thrive. 

The bill will also strengthen the Digital Markets Unit, helping to ensure digital markets remain competitive and continue to benefit people, business, and the UK economy. We welcome its introduction to parliament and look forward to it progressing."

An appeals court has issued a ruling in the long-running antitrust tussle between Apple and Epic Games. As Bloomberg reports, the US Ninth Circuit Court of Appeals upheld a lower court ruling, which rejected most of Epic's claims that Apple violated federal competition law by prohibiting alternative app stores on its devices. The three-judge panel also upheld a part of the original ruling that was in Epic's favor.

“There is a lively and important debate about the role played in our economy and democracy by online transaction platforms with market power,” the panel wrote in the decision. “Our job as a federal court of appeals, however, is not to resolve that debate — nor could we even attempt to do so. Instead, in this decision, we faithfully applied existing precedent to the facts.”

The ruling maintains the status quo, unless further appeals move the case to a higher court. One added wrinkle is the fact that Epic may now be on the hook for Apple's legal fees, as Axios' Stephen Totillo pointed out.

“Today’s decision reaffirms Apple’s resounding victory in this case, with nine of ten claims having been decided in Apple’s favor. For the second time in two years, a federal court has ruled that Apple abides by antitrust laws at the state and federal levels," Apple told Engadget in a statement. "The App Store continues to promote competition, drive innovation, and expand opportunity, and we’re proud of its profound contributions to both users and developers around the world. We respectfully disagree with the court’s ruling on the one remaining claim under state law and are considering further review.”

In the original 2021 ruling, US District Judge Yvonne Gonzalez Rogers determined that although Apple prevented users from being able to pay less for apps or in-app purchases, it wasn't running the App Store like a monopoly. Still, Rogers told Apple to let developers direct users to alternative payment systems, which would have enabled them to bypass the 15 to 30 percent cut Apple typically takes from in-app purchases.

Apple won a last-gasp delay on the implementation of those changes. However, in 2022, it started allowing the makers of certain apps to redirect users to their own websites for payments and to fully manage their accounts.

Engadget has contacted Epic for comment. The company has made similar antitrust claims in a lawsuit against Google and that case is set to go to trial in November. 

Epic kickstarted its battles against Apple and Google when it offered Fortnite mobile players a cheaper way to pay for in-game currency that bypassed the iOS and Android payment systems. Apple and Google removed Fortnite from their app stores, and Epic responded withlawsuits against both companies.

Regardless of the ultimate outcome in both cases, Apple and Google may support third-party app stores on iOS and Android anyway. Regulators in other markets have scrutinized both companies' app store practices. As a result of new European Union laws in particular, Apple is reportedly preparing to allow third-party marketplaces on the iPhone as soon as next year. If and when it does, Epic's own mobile app store is ready to go, according to CEO Tim Sweeney. Microsoft is preparing its own mobile app store too.

Blizzard Entertainment is being sued by former Chinese publishing partner NetEase after servers shutdown in January when the two failed to reach a continuation agreement. NetEase is seeking ¥300 million Yuan (roughly $43.5 million) in damages, which the company says will be put toward issuing refunds for discontinued games and recouping investments from unsold merchandise inventory.

The suit has multiple components. NetEase says Blizzard was supposed to handle customer refunds with regard to discontinued games and that it got stuck with the bill. NetEase also alleges that the original contract was worded in such a way as to grant Blizzard “unequal terms and conditions” in favor of the publisher’s “unilateral rights," as reported and translated by MMO-focused gaming website Wowhead. A representative from Blizzard’s parent company Activision told Engadget that it has yet to see any formal paperwork announcing the lawsuit and said that NetEase is “contractually responsible” for refunds and anything else that falls under the “operations” umbrella.

NetEase also alleges that it provided Blizzard with a large advance to make future titles. The Chinese developer says that not only were these titles never finished or released, but that Blizzard never returned any of the seed money. Again, Activision had no comment as it has not seen the suit. 

Blizzard and NetEase were successful partners for the past 14 years before negotiations broke down to renew the long-term licensing agreement. This led to a complete cessation of all Blizzard games and services in the region, including popular properties like World of Warcraft, Overwatch 2, Starcraft and Diablo III, among others. Millions of Chinese players lost access to their accounts and related data. Some started fresh with new accounts in other regions, but most (112 million people) opted for a refund.

The agreement did not end amicably, with reports of NetEase staffers tearing down the Blizzard offices and livestreaming the destruction of a World of Warcraft statue. NetEase's president of global investment and partnership, Simon Zhu, also seemed to call out a high-ranking Blizzard staffer as a “jerk” in a LinkedIn post. Now there’s an alleged lawsuit to add even more fuel to the fire. This is a developing story so we will update this post when and if Activision/Blizzard receives a copy of the lawsuit.

NBCUniversal CEO Jeff Shell is leaving Comcast, effective immediately. The telecom giant made the surprise announcement in a terse press release it issued on Sunday. Following an investigation prompted by a complaint of inappropriate behavior, Comcast says it came to a “mutual” decision with Shell that he should resign his position.

“Today is my last day as CEO of NBCUniversal. I had an inappropriate relationship with a woman in the company, which I deeply regret,” Shell said in a joint statement. “I'm truly sorry I let my Comcast and NBCUniversal colleagues down, they are the most talented people in the business and the opportunity to work with them the last 19 years has been a privilege.”

Comcast has not named a successor to Shell. In a memo obtained by Variety, Comcast CEO Brian Roberts and President Mike Cavanagh told employees they were “disappointed” to share the news. “We built this company on a culture of integrity. Nothing is more important than how we treat each other. You should count on your leaders to create a safe and respectful workplace,” they wrote. “When our principles and policies are violated, we will always move quickly to take appropriate action, as we have done here.”

Shell joined Comcast in 2004. He became the CEO of NBCUniversal in 2020. That same year, he oversaw the launch of Peacock. Shell leaves NBCUniversal without having made the streaming service profitable. At the start of the year, Comcast told investors that it had added five million paying subscribers during the final three months of 2022. However, over that same period, the company lost nearly $1 billion operating the service.

Google's advertising customers will soon be able to use the company's generative artificial intelligence to create ad campaigns, according to the Financial Times. Apparently, the tech giant is gearing up to embed its generative AI, the same technology powering its Bard chatbot, into its Performance Max program. Performance Max can already help customers determine where their ads should run and generate simple ad copy. But the Times' says the AI's addition will give it the capability to create sophisticated campaigns similar to those designed by marketing agencies. 

The company has reportedly shown ad customers a presentation entitled "AI-powered ads 2023," telling them that its technology can generate advertisements based on the imagery, video and text they supply. In addition, Google told them that the ads its AI creates will fit the audience they aim to reach and will be designed to enable them to reach sales targets and other goals. 

At least one person expressed concerns about the possibility of Google's ad tool spreading misinformation, the Times says, because it could be optimized to convert new customers with no concern for facts. Back when Google posted on ad on Twitter about Bard, for instance, the chatbot spouted a falsehood claiming that the James Webb Space Telescope had taken "the very first pictures of a planet outside of our own solar system." In truth, it was the European Southern Observatory's Very Large Telescope that took the very first images of exoplanets that we had ever seen. Google has assured the Financial Times that it will put firm guardrails in place to prevent errors and misinformation when it rolls out AI-powered ads in the coming months. 

Starting on April 25th, advertisers using Microsoft's social media management tool will no longer be able to access Twitter on their dashboard. As Mashable has first reported, the tech giant has announced on its Advertising platform page that its Digital Marketing Center's Smart Campaigns with Multi-platform tool will no longer support the social network in a few days' time. The announcement comes almost a month after Twitter revealed how much users will have to pay to access its API. While the company wasn't that forthcoming when it came to pricing for enterprise customers, Wired previously reported that the cheapest package available for them cost $42,000 a month. 

Although Microsoft could easily afford to pay that, it seems to have chosen to drop Twitter instead. Removing support for the website on its social media management tool means advertisers will no longer be able to use it to create, manage or schedule draft tweets, as well as to view past tweets and engagements. Microsoft has noted in its announcement that other social media channels, such as "Facebook, Instagram, and LinkedIn will continue to be available."

After Microsoft's announcement, Elon Musk responded to a tweet reporting its decision with a threat to take legal action against the company. "They trained illegally using Twitter data. Lawsuit time," Twitter's owner wrote. He didn't elaborate on how Microsoft illegally trained anything using Twitter data, but it's worth noting that the tech giant is a key backer of ChatGPT developer OpenAI. The executive co-founded OpenAI back in 2015, but he distanced himself from the organization and has been vocally criticizing the chatbot and AI as a whole as of late. Musk also recently revealed his plans for his own AI company that could rival OpenAI and Google. 

Whether Musk's lawsuit threat would actually materialize remains to be seen. Regardless, Microsoft's decision came at a very bad time for Twitter. The website has been steadily losing advertisers since Musk took over, and according to digital marketing analysis firm Pathmatics by Sensor Tower, less than half of its top 1,000 advertisers spent money on ads in January.