Posts with «business» label

Apple sues chip startup for alleged theft of trade secrets

Apple has accused a company of stealing its trade secrets. In a complaint filed Friday, the tech giant claims Rivos, a “stealth-mode” startup based out of Mountain View, California, led a recent “coordinated campaign” to poach employees from Apple's chip design division.

According to Reuters, the first publication to report on the lawsuit, Apple alleges at least two former employees took gigabytes of confidential data with them to Rivos. Among the information those individuals allegedly stole are presentations that detail unreleased chip designs, reports Bloomberg.

“Apple has reason to believe that Rivos instructed at least some Apple employees to download and install apps for encrypted communications (e.g., the Signal app) before communicating with them further,” the company says in the complaint. We’ve reached out to Apple for comment.

Should the case move forward, it’s likely to draw a significant amount of attention, much like Waymo's suit against Uber for stealing confidential information about its self-driving technology did in 2017. After years of litigation, that case ended with Uber agreeing to settle for $245 million, and with a court sentencing Anthony Levandowski, the engineer at the center of the dispute, to 18 months in prison before former President Donald Trump issued a pardon.

Intel CEO says chip shortage could continue until 2024

Experts and tech industry veterans have long expected the global semiconductor shortage to last for years, but Intel chief Pat Gelsinger now says it could go on longer than previously expected. The CEO told CNBC's TechCheck that he expects the issue to drag on until 2024, because the shortage has now hit equipment manufacturing. That could make it difficult for companies to obtain key manufacturing tools and hit production goals that might be bigger than before due to growing demand. 

Gelsinger told the publication:

"That's part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged."

Lockdowns tied to the COVID-19 pandemic had severely impacted the chip industry at a time when demand was ramping up. It forced not just tech companies, but also automakers like GM and Ford, to limit and even to suspend production. Apple's MacBook and iPad shipments faced delays due to component shortages, and smartphone shipments in general fell in late 2021. This negative impact on the tech and auto industries translated to devastating economic consequences — according to CBS News, the global chip shortage cost the United States $240 billion in 2021 based on expert estimates.

Gelsinger previously said that he believes the situation will last until 2023, which falls in line with analysts' and other industry execs' expectations. After Gelsinger became Intel's CEO, the company had announced several massive investments meant to expand chip manufacturing outside Asia. (To note, a Bloomberg report from back in late 2021 claimed that the White House "strongly discouraged" Intel from ramping up its chip production in China.) Intel said it's spending $20 billion to build two chip factories in Arizona, and another $20 billion at least to build "the largest silicon manufacturing location on the planet" in Ohio.

CWA accuses Activision of threatening employees for discussing work conditions

The union working to organize Activision Blizzard workers — the Communications Workers of America — filed a complaint today with the National Labor Relations Board (NLRB), accusing the video game company of forbidding workers from discussing ongoing sexual and workplace harassment lawsuits. This isn’t the first time Activision has been accused of shutting down workplace dissent. Last September, CWA accused Activision of union-busting and intimidating workers who engaged in walkouts and other protests.

CWA filed its latest complaint after an incident in which an Activision worker posted a link to an article on their departmental Slack channel about an ongoing California Department of Fair Housing and Employment lawsuit against the company. The union shared no details about whether the worker was fired or reprimanded. Engadget has reached out to CWA for more information about the incident and will update when we hear back. Under federal law, employees have the right to discuss matters relating to wages, hours and working conditions.

Former Blizzard test analyst Jessica Gonzalez said Activision used “similar tactics” during her time at the company after she spoke out about workplace sexual harassment. “It is unfortunate that Activision continues to take the low road, but my hope is that everyone in the video game community understands how having a union on the job can encourage a workplace free from harassment and discrimination, which translates to better video games,” said Gonzalez in a statement.

Former Apple worker says Epic refused to hire her over labor advocacy

The worker who founded the #AppleToo movement has accused Epic Games of taking a similarly anti-labor stance. The Washington Postreports former Apple employee Cher Scarlett has filed a National Labor Relations Board complaint alleging Epic refused to hire her because she backed a labor organization, is cooperating with the NLRB and is otherwise fighting unfair working conditions. She claims Epic balked two days after she shared details of her advocacy work and federal testimony with recruiters for a senior web developer position.

Epic spokesperson Elka Looks denied any wrongdoing in a statement to The Post. She said Scarlett's labor rights efforts didn't factor into the hiring decision, and that the company had already settled on someone else before Scarlett shared details of her activities. The winning candidate simply "scored higher," Looks stated.

Whether or not the assertions hold up, it's no secret that Scarlett is known for challenging allegedly abusive and unfair workplaces. She helped draw attention to misconduct at Activision Blizzard by describing sexual harassment between 2015 and 2016. Scarlett also has three ongoing cases against Apple, including an NLRB complaint about a hostile work environment. Another NLRB complaint from February says Mozilla discriminated against her job application at that firm.

The complaint against Epic also comes as tensions have risen between tech companies and staffers demanding better labor practices. Amazon, Apple and other companies have been fighting unionization attempts, and there have long been concerns these brands might be firing outspoken employees. Even if Scarlett doesn't succeed, she'll highlight problematic behavior across the industry.

Airbnb adopts permanent remote work option for employees

Some companies have started requiring their employees to come into the office a few times a week now that most people have been vaccinated against COVID-19. Airbnb isn't one them. Company CEO Brian Chesky has informed employees in a letter that they have the option to work remotely forever. A "small number of roles" will be required to work in the office, but the majority of Airbnb employees don't have to come in if they don't want to. 

Chesky wrote:

"We want to hire and retain the best people in the world (like you). If we limited our talent pool to a commuting radius around our offices, we would be at a significant disadvantage. The best people live everywhere, not concentrated in one area. And by recruiting from a diverse set of communities, we will become a more diverse company. "

The CEO said that Airbnb had recovered quickly from the pandemic thanks to people booking listings to work remotely, proving that the world is now more open to flexible work arrangements. Apparently, in the second half of 2021, 20 percent of the nights booked on its website were for stays of longer than a month. 

Airbnb will pay employees the same salary wherever it is in their country they choose to work. It will implement pay tiers by country for both salary and equity starting in June, so those getting paid less based on their location could soon be earning more. International moves are much more complex, however, and the company said it won't be able to support employees who decide to live in another country this year.

That said, it will allow people to work in 170 countries for up to 90 days each starting in September. While employees still have to secure their own work authorization, the company is partnering with local governments to make the process easier. 

In comparison, Google and Apple employees are making a gradual return to office and are now required to work a few days a week on site as part of a hybrid work plan. Twitter opened some of its offices in late 2021 but also told employees that they can permanently work from home.

Beijing approves driverless taxi permits for Baidu and Pony.ai

Beijing is paving the way for driverless robotaxis. China’s capital city granted permits to auto startup Pony.ai and Chinese internet giant Baidu to offer self-driving car services to the general public, both companies announced today. Both operations will start out small — Baidu’s fleet will consist of 10 cars and Pony.ai will run four cars, reported CNBC. Eventually both companies plan to expand operations in the city.

The Beijing government is requiring a staff member to be onboard each driverless vehicle to make sure things go smoothly. But the employee isn’t required to be in the driver’s seat. Both firms had already been testing driverless taxis in Beijing and other major cities in China, but were required to have safety drivers behind the wheel.

The permits are a big step forward for the driverless taxi industry in Beijing, which set a goal for 70 percent of new cars sold in 2030 to have at least Level 2 self-driving technology installed.

An added perk for Beijing residents is that driverless car rides will be free, at least for now. The companies are still awaiting approval from the government to charge for the service. Until then, prospective riders can hail a ride through either Pony.ai’s PonyPilot+ app or Baidu’s Apollo Go app. There’s one caveat, though. Rides are currently restricted to a 23.1 square mile area in Yizhuang, a suburb of Beijing. There’s also no door-to-door pick-up service. Riders will instead be asked to choose from a number of public pick-up and drop-off locations, including subway stations, parks and stadiums.

Pony.ai ran into a number of challenges while testing its self-driving technology in the US. California suspended the Chinese company’s testing permit last year after a reported collision due to a glitch in Pony.ai’s AV software. No people were harmed in the crash and no other vehicles were involved. The California Department of Motor Vehicles issued a recall of all vehicles involved in the crash, which Pony.ai has complied with.

Activision Blizzard shareholders approve Microsoft's $68.7 billion takeover bid

Activision Blizzard's shareholders have overwhelmingly voted in favor of a proposed $68.7 billion takeover by Microsoft. More than 98 percent of the shares that voted at a special meeting held on Thursday approved of the merger.

Though the company called the vote non-binding and advisory, the deal could not have moved forward without the majority of shareholders giving it the green light. The board of directors unanimously agreed it was in the best interest of Activision Blizzard and its shareholders, and recommended they vote in favor.

The planned merger is not finalized and it could still collapse. The Federal Trade Commission is reviewing the deal and is expected to closely scrutinize the details. Under chair Lina Khan, the FTC has put the kibosh on NVIDIA's attempt to buy ARM and revived an antitrust case against Meta over its purchases of Instagram and WhatsApp.

Microsoft and Activision Blizzard will also need regulatory approval from the UK, the European Union, China and some other jurisdictions, according to an SEC filing. The companies expect the deal to close by June 2023.

There are other considerations that may impact the planned Activision Blizzard-Microsoft merger beyond antitrust concerns. The embattled game publisher has been the subject of lawsuits and accusations alleging workplace harassment and discrimination. Meanwhile, some quality assurance workers at Activision studio Raven Software are holding a union election over the next few weeks.

Samsung reports steep rise in profit for the first quarter of 2022

Samsung has reported a massive rise in operating profit for the first three months of 2022, thanks in part to the robust demand for its memory chips and the strong sales of its new Galaxy flagship devices. The Korean tech giant has posted an operating profit of KRW 14.12 trillion ($11.12 billion), which is 51 percent higher than the same period last year, and a record consolidated revenue of KRW 77.78 trillion ($61.2 billion). 

As usual, Samsung's memory division was a standout performer, exceeding market forecasts because memory prices didn't drop as much as analysts had expected. It posted a consolidated revenue of KRW 26.87 trillion ($21.14 billion), and while it saw a slight decline in profit due to incentives and seasonality, demand for PC and server chips remained solid. The company's foundry business also contributed to the division's performance by achieving its highest ever first quarter sales. Samsung is optimistic for the division's prospects going forward, but it also expects component shortages to persist through the second half of the year and will constantly monitor the situation. 

While overall demand for mobile was down due to seasonality and "geopolitical uncertainties," Samsung posted higher profit (KRW 3.82 trillion or $3 billion) and revenue (KRW 32.37 trillion or $25.5 billion) for the division this quarter compared to the last. The strong sales of its new flagship phones, particularly the Galaxy S22 Ultra, as well as of its mass market 5G phones contributed to both profit and revenue growth. Despite the allegations that a preinstalled app on S22 phones is throttling the performance of several applications, the company previously said that demand for the flagship is 20 percent higher than of its predecessor's. Samsung expects component shortages for mobile to continue, as well, but it also expects the availability of component supplies for the S22 to improve. That's why it plans to focus on maintaining strong sales for its flagships in the next quarter.

The tech giant reports a rise in mobile display earnings due to solid demand for premium products, as well. For larger displays, it says its QD monitors were well-received. It debuted its QD-OLED technology, which differs from standard OLED in that it only uses blue organic light-emitting diodes for a brighter output, at CES earlier this year. Samsung's TV business lagged behind its other divisions, though, and saw a decline in demand following strong sales in the end of 2021 and the Russian invasion of Ukraine. In early March, Samsung halted its product shipments to Russia, where it has a TV plant and where it's known as the top smartphone brand. 

Apple hired the same anti-union law firm as Starbucks: report

Apple hired Littler Mendelson — an anti-union law firm known for high-profile clients such as Starbucks, McDonald’s and Nissan — reportedThe Verge. The decision to retain the firm comes shortly after 100 workers at Apple's retail location in Atlanta’s Cumberland Mall petitioned the National Labor Relations Board last week to hold a union election. The tech giant has yet to formally respond to the petition. 

Apple workers at the Atlanta retail store are hoping to join the Communications Workers of America. The CWA has played a significant role in organizing tech industry workers in recent months, including its involvement in organizing drives Activision Blizzard subsidiary Raven Software and Verizon Wireless

The Cumberland Mall location is the first Apple Store in the US to file to unionize. But it likely won’t be the last. Earlier this month workers at Apple’s Grand Central location began collecting signatures to start a union. A worker at a New York store told The Verge the company had already begun holding captive audience meetings, a hallmark of union avoidance strategies. 

Hourly workers at Apple retail stores nationwide have complained of low pay, difficult working conditions and few opportunities for advancement. Many Apple employees were asked to work long hours or overtime during the pandemic, often at risk to their own health. Despite its steady ascent to becoming one of the world’s most profitable companies, the wages of its retail employees have not kept pace with either Apple's growth or the country's ballooning inflation, according to workers

“We are fortunate to have incredible retail team members and we deeply value everything they bring to Apple. We are pleased to offer very strong compensation and benefits for full time and part time employees, including health care, tuition reimbursement, new parental leave, paid family leave, annual stock grants and many other benefits,” Apple spokesperson Nick Leahy told The Verge, in a statement that did not in any capacity touch on the company's relationship with Littler Mendelson. 

“By retaining the notorious union busting firm Littler Mendelson, Apple’s management is showing that they intend to try to prevent their employees from exercising their right to join a union by running the same playbook as other large corporations,” said CWA Secretary-Treasurer Sara Steffens. “The workers at Starbucks, another Littler client, aren’t falling for it and neither will the workers at Apple.”

Are an Apple Store worker thinking about or starting to organize your location? We'd like to hear from you. Download Signal messenger for iOS or Android and send a text confidentially to 646 983 9846.

European Union limits targeted advertising and content algorithms under new law

Following a marathon 16-hour negotiation session, the European Union reached an agreement early Saturday to adopt the Digital Services Act. The legislation seeks to impose greater accountability on the world's tech giants by enforcing new obligations companies of all sizes must adhere to once the act becomes law in 2024. Like the Digital Markets Act before it, the DSA could have far-reaching implications, some of which could extend beyond Europe.

While the European Commission has yet to release the final text of the Digital Services Act, it did detail some of its provisions on Saturday. Most notably, the law bans ads that target individuals based on their religion, sexual orientation, ethnicity or political affiliation. Companies also cannot serve targeted ads to minors.

Another part of the law singles out recommendation algorithms. Online platforms like Facebook will need to be transparent about how those systems work to display content to users. They will also need to offer alternative systems "not based on profiling," meaning more platforms would need to offer chronological feeds. Additionally, some of the largest platforms today will be required to share "key" data to vetted researchers and NGOs so those groups can provide insights into "how online risks evolve."

Ta da! 16 hours, lots of sweets (but cookies still declined ;) We have a deal on the #DSA: The Digital Services Act will make sure that what is illegal offline is also seen & dealt with as illegal online - not as a slogan, as reality! And always protecting freedom of expression! pic.twitter.com/mUhU84Q9FS

— Margrethe Vestager (@vestager) April 23, 2022

"Today's agreement on the Digital Services Act is historic, both in terms of speed and of substance," said European Commission President Ursula von der Leyen. "It will ensure that the online environment remains a safe space, safeguarding freedom of expression and opportunities for digital businesses. It gives practical effect to the principle that what is illegal offline, should be illegal online."

Under the DSA, the EU will have the power to fine tech companies up to six percent of their global turnover for rule violations, with repeat infractions carrying the threat of a ban from the bloc. As The Guardian points out, in the case of a company like Meta, that would translate into a single potential fine of approximately $7 billion.

The DSA differentiates between tech companies of different sizes, with the most scrutiny reserved for platforms that have at least 45 million users in the EU. In that group are companies like Meta and Google. According to a recent report, those two, in addition to Apple, Amazon and Spotify, collectively spent more than €27 million lobbying EU policymakers last year to change the terms of the Digital Services Act and Digital Markets Act. The laws could inspire lawmakers in other countries, including the US, as they look to pass their own antitrust laws.

"We welcome the DSA's goals of making the internet even more safe, transparent and accountable, while ensuring that European users, creators and businesses continue to benefit from the open web," a Google spokesperson told Engadget. "As the law is finalized and implemented, the details will matter. We look forward to working with policymakers to get the remaining technical