Posts with «business» label

Dozens of Facebook contractors lost their jobs after an algorithm reportedly chose them 'at random'

A firm contracted by Meta recently told dozens of its workers that their work for Facebook “was soon being taken away,” according to a new report from Insider. The cuts affect about 60 employees of Accenture, a firm that oversees teams of Facebook moderators and other contractors.

The reasons for the cuts are unclear as workers were not given an explanation for the changes. According to Insider, workers were informed of the news during a hastily scheduled video call during which nameless Accenture representatives told the contractors they had been selected “at random” via an algorithm.

Facebook declined to comment to Insider and an Accenture rep denied that “layoff actions” had taken place. Affected workers were reportedly told they could reapply and interview for new roles within the firm.

The cuts come as Meta faces unprecedented challenges to its business amid an economic downturn and hits to its advertising business. The company, which recently reported shrinking revenue for the first time in its history after losing billions of dollars on its virtual reality division, has already drastically cut hiring plans and told managers to weed out low performers. The company also cut back some of its famously extravagant employee perks, like onsite laundry service, earlier this year. Meta employees are reportedly concerned that the company could slash its workforce by as much as 10 percent, though the company has so far denied it has plans for mass layoffs.

Nintendo is reportedly investigating claims of sexual misconduct

Nintendo may respond quickly to allegations of sexual discrimination and harassment at its American division. A Kotakusource has reportedly shared a company-wide message from Nintendo of America President Doug Bowser revealing that the Switch creator is "actively investigating" the misconduct claims. The firm "will always" look into assertions like these and encourages workers to report violations, Bowser reportedly said.

We've asked Nintendo for comment. The company has previously reacted to incidents elsewhere in the industry, however. In November, Bowser said the accusations behind the Activision Blizzard scandal were "distressing and disturbing." Days later, Nintendo pledged to increase the number of female managers.

Several female game testers told Kotaku that they'd faced multiple forms of harassment and discrimination at Nintendo. Senior-ranking testers allegedly made unwanted advances and comments. Anti-LGBT remarks, pay gaps and attempts to suppress criticism were also part of the workplace culture, according to the allegations. Female workers are believed to be underrepresented at Nintendo as a whole (37 percent), and particularly among contract-based game testers (10 percent).

It's too soon to know if any investigation will lead to firings or reforms. If accurate, however, the scoop is a reminder that misconduct complaints haven't been limited to one developer. Activision Blizzard, Ubisoft and others have had to address concerns as well — it may reflect cultural issues across the industry.

Apple reportedly tested search ads in Maps in bid to expand advertising business

Apple may be planning to bring ads to more of its first-party apps. According to Bloomberg’s Mark Gurman, the company has conducted internal tests of a version of Maps that features search ads. Apple already employs similar advertisements within the App Store.

Developers can pay the company to get their software to show up at the top of the search results page when you input specific terms. Gurman suggests search ads in Maps would work in much the same way. For instance, a Japanese restaurant could pay Apple for their business to show up higher in local listings when people use search terms like “sushi.” Gurman believes Apple could implement similar ads in its Podcasts and Books apps. He says the company could begin offering an ad-supported tier through Apple TV+.

Gurman attributes the potential push to Todd Teresi, the vice president in charge of the company’s advertising division. Teresi recently began reporting directly to services chief Eddy Cue and has reportedly talked of greatly expanding his team’s impact. The division generates about $4 billion in annual revenue. Teresi’s ambition is to increase that number to the double digits. That would require a significant expansion of Apple’s current advertising efforts.

A wider advertising push would be an about-face for a company that has, at least externally, positioned itself as a champion of user privacy. With the release of iOS 14.5, Apple introduced a feature called App Tracking Transparency. The prompt allows you to prevent apps from logging your activity across other apps and websites. In 2022, it’s estimated the policy will cost Facebook parent company Meta approximately $13 billion in lost revenue. When Apple announced ATT at WWDC 2020, the company publicly said it designed the feature to protect user privacy. A recent report from The Wall Street Journal, which said the company pursued a revenue-sharing agreement with Facebook, suggests its motivations with ATT may have not been so altruistic.

US Justice Department is reportedly poised to sue Google over its digital ad dominance

Google may soon be facing its second antitrust lawsuit filed by the US Department of Justice. According to Bloomberg, the DOJ is gearing up to sue the tech giant as soon as September after a year of looking into whether it's been using its dominant position to illegally control the digital ad market. The Justice Department's lawyers have reportedly been conducting another round of interviews to glean additional information that could help make their case stronger. These new interviews are expected to build on previous ones conducted much earlier on in the investigation. 

The Justice Department first filed an antitrust lawsuit against the company back in 2020, accusing it of having an unfair monopoly over search and search-related advertising. For that particular case, the agency argued that forcing Android phone manufacturers to set Google as the default search engine prevents rivals from gaining traction and ensures that the company will earn an enormous amount of money from search-related advertising. 

In the same year, Texas filed a multi-state lawsuit against Google, with the state's Attorney General accusing the company of using its "monopolistic power to control" ad pricing. The company's ad practices are under scrutiny not just in the US but in other parts of the world: The European Commission also opened a probe to look into whether Google limits rival services' access to user data for ad purposes last year. As a concession to the EU's concerns, Reuters reported in June that Google may let rival ad platforms run ads on YouTube.

While the DOJ has yet to officially file its case, Google spokesperson Peter Schottenfels defended the company's ad business in a statement to Bloomberg, which says: "Our advertising technologies help websites and apps fund their content, and enable small businesses to reach customers around the world. The enormous competition in online advertising has made online ads more relevant, reduced ad tech fees, and expanded options for publishers and advertisers."

South Korea to investigate Apple, Google over possible in-app payment violations

Apple and Google are already facing scrutiny in the wake of a South Korean law requiring that they allow third-party payments. Reutersreports the Korea Communications Commission (KCC) will investigate Apple, Google and SK Group's One Store over potential violations of the in-app payment law. Regulators said they started inspecting the digital shops on May 17th, and found enough to be concerned all three might have broken the rules.

It's not certain just how the firms might have violated the law. MacRumorsnoted that a delay in communicating changes might have played a role in Apple's case. While the law (a revision of the Telecommunications Business Act) took effect in March, Apple didn't notify developers until late June. Google alerted Android developers in November of last year.

Both companies still take cuts from purchases made using alternative billing systems — they just take smaller portions. When Google announced its policy change, it maintained that it needed fees to "continue to invest" in Android and the Play Store. It's not clear if these policies play any role in the investigation, however.

We've asked Apple and Google for comment. In a statement to Reuters, Google said it would continue cooperating with the KCC and that it had "worked closely" with both the government and developers to comply with the law.

The law allows for fines as high as two percent of the average yearly revenue for related business. Officials didn't set expectations for possible fines, but the stores are major money generators. Apple, for example, paid developers $60 billion worldwide in 2021 and made a tidy profit for itself through fees on those sales. Even if South Korea only considered revenue earned within its borders to be actionable for fines, this could still lead to steep penalties if the KCC finds any violations.

Google and Sonos are now fighting over voice assistant patents

Google has sued Sonos, alleging that its new voice assistant violates seven patents related to its own Google Assistant technology, CNET has reported. It's the latest salvo in a long-running smart speaker battle between the companies, with each suing and countersuing the other following a period when they worked together. 

"[Sonos has] started an aggressive and misleading campaign against our products, at the expense of our shared customers," a Google spokesperson said in a statement. 

Sonos' Voice Control assistant arrived in June, letting users give commands with the phrase "Hey Sonos," much like Amazon's Alexa or Google Assistant. In the complaint, Google said it "worked for years with Sonos engineers on the implementation of voice recognition and voice-activated devices control in Sonos products... even providing its Google Assistant software to Sonos for many years." 

The fight erupted in early 2020 when Sonos sued Google for alleged patent infringement after the companies had collaborated for several years. Sonos claimed that Google gained knowledge of its technology when they worked together and used that information to develop its own smart speaker line. The company filed another suit in September 2020, claiming that Google infringed on five more patents. 

Google countersued, alleging that Sonos was using Google’s search, software, networking, audio processing and other technology without paying a license fee and made "false claims" about their work together

In 2021, the US International Trade Commission ruled that Google infringed on five Sonos patents. That forced Google to change the way its speakers were set up to avoid an import ban. Most of those were related to the way speaker groups are controlled — for instance, users can no longer change the volume of a group of speakers and must adjust them individually instead. 

"Google previously sued us all over the world and Sonos has prevailed in every decided case," Sonos' chief legal officer Eddie Lazarus told CNET. "[The latest lawsuits] are an intimidation tactic designed to retaliate against Sonos for speaking out against Google's monopolistic practices." 

Report: Apple retaliated against women who complained about misconduct

The Financial Times has published a lengthy report saying that Apple has fostered a culture of apathy toward reports of employee misconduct, and has actively retaliated against staff members who complained about colleagues, including those who reported incidents of sexual assault. If accurate, the allegations are at odds with the image of inclusiveness that Apple projects, and cast a pall on the real progress it has made in boosting its workforce diversity. 

Multiple women described filing complaints with Apple's human resources department over sexual abuse, bullying and other incidents. Former employee Megan Mohr complained that a colleague removed her bra and clothes while she was asleep and took photos of her after a platonic night out. However, the HR representative called the experience "a minor traffic accident."

"Although what he did was reprehensible as a person and potentially criminal, as an Apple employee he hasn't violated any policy in the context of his Apple work," Apple's HR department said in an email seen by FT. "And because he hasn't violated any policy we will not prevent him seeking employment opportunities that are aligned with his goals and interests." 

An Apple Store Genius employee complained about two instances of serious sexual assault including being raped, and said HR treated her not as a victim, but as the problem. "I was told [the alleged rapist] went on a ‘career experience’ for six months and they said: ‘maybe you’ll be better by the time he’s back?" She requested a transfer but it was declined, and she still works at the same store. 

IP attorney Margaret Anderson complained of a "toxic work environment" and "gaslighting," and said a male vice-president wanted to fire her, citing false allegations that predated her arrival at Apple. HR reportedly ignored a document she created refuting the allegations.

Employees have also complained about Apple suppressing worker organizing and blocking Slack channels used by employees to complain about bad managers and pay inequity. Software engineer Cher Scarlett said Apple retaliated after she filed a complaint with the National Labor Relations Board (NLRB). The company offered her a $213,000 severance package, but she refused to sign it because Apple demanded she hand over a letter sent to the NLRB that included the names of other employees. 

That's their playbook. Offer me enough money to pay off my lawyers and debt, and they wanted a list of people to retaliate against. How do I talk about how egregious that truly is?

She accepted the deal when Apple withdrew the demand, but was forced to pull the NLRB complaint. However, she intentionally broke the agreement when Apple sent a letter to the Securities and Exchange Commission (SEC) saying it "supports the rights of its employees and contractors to speak freely." Scarlett then showed her exit arrangement to the media, which led to eight US state treasurers asking the SEC to investigate "whether or not Apple misled the Commission and investors." 

The highest profile complaint was from Jayne Whitt, a director in Apple's legal department. She told HR that a colleague hacked her devices and threatened her life, with the expectation that the complaint would be handled seriously. Instead, the employee investigative division said Whitt "failed to act in a professional and work appropriate manner" during their meeting, at a time when Whitt "said she was begging for help and reliving trauma," the FT wrote. 

She subsequently posted a 2,800 word essay on the whistleblower platform The Lioness describing the situation, prompting an outpouring of support from Apple employees. However, Apple proceeded to fire her based on what she called an "irrelevant" six-year-old indiscretion. 

Whitt is now challenging Apple legally, and said the Slack channels on gender-pay disparity helped open her eyes. "I was disadvantaged — this is how women struggle," she said. "Had these stories [on Slack] not been coming out, I would not have been compelled to do the right thing, to blow up my career."

Apple told The Financial Times in a statement that it works hard to thoroughly investigate misconduct allegations and strives to create "an environment where employees feel comfortable reporting any issues." However, it acknowledged not having always met those ideals. "There are some accounts raised that do not reflect our intentions or our policies and we should have handled them differently, including certain exchanges reported in this story. As a result, we will make changes to our training and processes." It wouldn't comment on specific cases "out of respect for the privacy of the individuals involved." 

Google is making it easier to find and support Asian-owned businesses

Google is making it easier for people to find and support Asian-owned businesses in their communities. Starting today, US merchants can now add an "Asian-owned" label to a verified Google business profile, which will appear in Search and Maps queries.

The move is part of Google's efforts to support historically marginalized communities. It previously rolled out labels for Black-owned, Latino-owned, veteran-owned, women-owned and LGBTQ+ owned businesses. 

In addition, the company says its Grow with Google initiative, along with the non-profit US Pan Asian American Chamber of Commerce, will help another 10,000 Asian-owned small businesses learn digital skills. To date, they've assisted more than 20,000 Asian-owned businesses with workshops on things like e-commerce, analytics-driven decisions and design.

SEC charges 11 people over 'textbook' $300 million crypto Ponzi scheme

It's a day of the week ending in the letter "y," which inevitably means there's news of anothermessysaga in the cryptocurrency world. The Securities and Exchange Commission has charged 11 people who allegedly set up and promoted Forsage, which it said was a crypto Ponzi scheme that pulled in over $300 million from retail investors.

The agency asserts that Forsage enabled millions of people to engage in transactions through smart contracts on the Ethereum, Tron, and Binance blockchains. It alleged that Forsage had essentially been operating as a pyramid scheme for over two years, wherein the main way for investors to make money was by luring other people into the scheme. “Fraudsters cannot circumvent the federal securities laws by focusing their schemes on smart contracts and blockchains," Carolyn Welshhans, acting chief of the SEC’s Crypto Assets and Cyber Unit, said in a statement.

"Forsage is a textbook pyramid and Ponzi scheme," the SEC's complaint reads. "It did not sell or purport to sell any actual, consumable product to bona fide retail customers during the relevant time period and had no apparent source of revenue other than funds received from investors."

Four of those charged are Forsage's founders, who were last known to be living in Russia, the Republic of Georgia and Indonesia. The SEC also charged three promoters based in the US, who the founders allegedly recruited to endorse Forsage on its website and social media. Several members of a group called Crypto Crusaders, a group that promoted the scheme, were charged with violating the registration and anti-fraud provisions of federal securities laws as well. Two defendants have agreed to settle the charges without admitting or denying the allegations.

As CNBC notes, Forsage's founders launched the platform in January 2020. Regulators in the Philippines and Montana tried to shut it down with cease-and-desist actions. The SEC alleged that the defendants continued to promote Forsage while denying claims made against the platform in YouTube videos.

Microsoft negs Activision Blizzard to push through $68.7 billion acquisition

Microsoft is taking an interesting approach to secure regulatory approval for its acquisition of Activision Blizzard. In a recent filing spotted by Rock Paper Shotgun, the company told New Zealand’s Commerce Commission the troubled publisher produces no “must have” games. Yes, you read that right.

“There is nothing unique about the video games developed and published by Activision Blizzard that is a ‘must have’ for rival PC and console video game distributors that give rise to a foreclosure concern,” the company says in the document. Put another way, Microsoft believes owning the rights to best-selling Activision Blizzard franchises like Call of Duty won’t prevent rivals like Sony from competing against it.

At first glance, that would seem to be a nonsensical argument to make about a company Microsoft plans to spend $68.7 billion to acquire. All the same, it’s a claim the tech giant is making in response to its rivals. In a filing with Brazilian regulators, Sony called Call of Duty “an essential game” and an AAA title “that has no rival.” It argues the franchise is so popular that it influences the consoles people buy. Sony is likely speaking from experience. In 2015, the company announced an agreement with Activision that saw some Call of Duty content arrive on PlayStation consoles first.

Downplaying the importance of Call of Duty is just one of the ways Microsoft has tried to placate regulators. In February, the company pledged it would continue to make the franchise available on PlayStation consoles beyond the end of any agreements Sony and Activision had in place before the acquisition was announced. More recently, the company announced a labor neutrality agreement with the Communications Workers of America, which has been organizing video game workers across the industry.