EU Fines Qualcomm $272 Million for Antitrust; 60 Companies Paid Zero Taxes With New Tax Law; Prime Day Record; Netflix Q2 Subscriber Miss

The world’s #1 chipmaker, Qualcomm, has been fined $272 million by the European Union for blocking a rival from the market about 10 years ago. Venturebeat.com reports that this is Qualcomm’s 2nd EU antitrust penalty. “Qualcomm’s strategic behavior prevented competition and innovation in the market,” Competition Commissioner Margrethe Vestager said in a statement. Qualcomm has responded that it is ‘unsupported by the law, economic principles or market facts.’ The company will appeal. The Commission had already fined Qualcomm $1.1 billion last year for paying iPhone maker Apple to use its chips exclusively.

A new analysis by the Institute on Taxation and Economic Policy shows that 60 of Fortune 500 companies paid ZERO federal income taxes in 2018, thanks to the Trump Tax Cuts and Jobs Act. According to yahoo.com, their total average effective tax rate was -5%. Sixty companies is triple the number of companies that avoided paying corporate taxes on average from 2008 to 2015!

Amazon says it moved a record 175 million items over Prime Day (which was really days, since it lasted two.) Geekwire.com says that’s a 75% increase over the 100 million items sold last year. As usual, Amazon didn’t say how much Prime members spend, but did say that ‘independent small and medium-sized businesses’ sold more than $2 billion worth of items over the 48 hour period. Amazon has been able to turn it into a real event…Adobe Analytics notes that large retailers— ones with over a billion in annual sales— saw revenue increase 68% during Prime Day(s). Smaller retailers picked up a 28% bump.

Netflix stubbed its toe on subscriber increase for 2nd quarter, adding 2.7 million, and missing its own guidance and Wall Street Expectations by a mile. The Street thought the uptick would be closer to 5 million. Businessinsider.com reports that the stock dropped over 10% to $317.91 after the earnings report. Revenue was $4.92 billion, while Wall Street looked for $4.93…which was also Netflix’ forecast. Some of the blame may go to the imminent rollout of Disney Plus and Apple’s new TV offerings. The third quarter seems to be off to a big start, though….the new season of ‘Stranger Things’ was the biggest four day debut of any original show on the service. New seasons of ‘Orange is the New Black’ and ‘The Crown’ will be coming out, which should add to the numbers 3rd quarter.

Tech Under Fire From Congress; FaceApp-What About Your Pics; EU Investigates Amazon for Antitrust

Three separate Congressional hearings yesterday took aim at the power big tech companies have amassed, with politicians from both sides of the aisle calling for more government oversight of the tech giants’ reach and expansion plans. The Wall Street Journal reports that legislators were probing several areas, including Facebook’s upcoming Libra cryptocurrency, Google’s alleged censorship, and antitrust concerns about Facebook, Google, and Apple.

“In an effort to promote and continue this new economy, Congress and antitrust enforcers allowed these firms to regulate themselves with little oversight,” House Antitrust Subcommittee Chairman David Cicilline (D., R.I.) said at the outset of a hearing featuring executives from the four companies. “But as a result, the internet has become increasingly concentrated, less open and growingly hostile to innovation and entrepreneurship.”

In their testimony, the companies said that they still face competition in markets from advertising to apps, and that their online platforms have facilitated the growth of many other smaller companies.

The Department of Justice and the FTC have privately divvied up jurisdiction for potential antitrust probes of the four companies (Amazon being the fourth). Facebook has already been fined $5 billion by the FTC, which will barely whack a month’s worth of the social network’s revenue.

Not all Congressmen were hostile to the tech companies. Rep. James Sensenbrenner (R., Wis.), the House Antitrust Subocmmittee’s top Republican, told colleagues: “Just because a business is big doesn’t mean it’s bad.”

That view wasn’t held by Sen. Ted Cruz (R., Texas), who accused Google of “playing Big Brother” by collecting swaths of data on Americans who use its search engines and controlling public discourse through its dominance of internet search.
Mr. Cruz said the tech giant’s frequent response—that its results are produced by algorithms—is inadequate. Algorithms are “written and maintained by people.”

FaceApp made the rounds a couple years ago, but the improved app is back with a vengeance…as anyone with a Facebook newsfeed can attest. There were concerns about what happens to your photos you modify then, as well as now…the app that makes you look younger or older via AI is from a team of Russian developers, and they have admitted that you have to upload the pic so their servers can modify it. According to techcrunch.com, the developers won’t say this, nor will they say if they keep a copy of the photos. Rumors that the app accesses all of your photos appears to be untrue, though…at least on iOS. Apple has a setting that prevents that. It only accesses the photo you explicitly tap. Since your profile photo on Facebook can be seen by anyone, what’s the big deal? While that’s true, in the case of FaceApp, the pic is in a system that has AI designed to modify your photo…young/old/ethnicity. Think about that!

On the heels of Prime Day, the European Union has launched an antitrust investigation into Amazon. Businessinsider.com says they are looking into whether Amazon’s data use from independent retailers using Amazon to sell through is a breach of EU competition rules. Amazon could be fined up to $23 billion of it is found in violation of EU laws. Amazon’s role as both a platform for merchants and a seller itself has been a big area of contention, and the EU commission will take a ‘close look’ at Amazon’s ‘dual role.’ This is not unlike the position of Apple with its App Store, which is also being looked at.

Echo Dot & Fire TV Stick Top Prime Day; Uber & Lyft-Paid Drivers To Pimp Gig Status; Twitter Web Refresh & Dark Mode Roll Out; Next Gen Tesla Roadster-Hidden Thrusters & More

Prime Day…which is really Prime 2-days now, has winners and still champs when it comes to devices. According to techcrunch.com, the top selling gear was again the Echo Dot entry level smart speaker (for the 3rd year in a row) and the Fire TV Stick (which won Prime Day overall in 2016.) As usual, Amazon hasn’t provided hard numbers, but claims ‘millions’ were sold. The Echo Dot was already on sale at a low of $24.99 before the sale started, but Amazon cut it to $22. The Fire TV Stick was slashed to $14.99 with Alexa Voice Remote. Loss leaders….it gets ‘em in the door (or in this case, into clicking mode!) If your finger is itching for a Dot, you can still get it for $22 today, but the Charcoal color is sold out…you will have to get it in Sandstone.

Uber and Lyft are still trying to quash workers’ attempts to gain employee status. Now, engadget.com reports that the companies basically bribed drivers to protest in favor of the company position. According to an email the LA Times got hold of, the companies promised drivers between $25 and $100 if they attended a rally outside the state Capitol last Tuesday, prior to a hearing on Assembly Bill 5. The rally was a demonstration in support of changing the bill to allow continuation of classifying drivers as independent contractors. The email went to drivers from the I’m Independent Coalition…a group funded by the California Chamber of Commerce…which assisted Uber and Lyft to organize the rally. The Coalition also paid drivers the cost of travel and expenses, and included a $15 in-app lunch voucher.

I have been using it for a while and like it, but now there’s no choice..Twitter is rolling out its new desktop design and dark mode options to everyone…with no option to revert back. 9to5mac.com says the process started yesterday. There are two dark modes to choose from…Dim and Lights out. I prefer the Dim, but your mileage may vary. The new look is nice and clean, with various choices on the left sidebar, a large center bar for your feed, and a right hand bar for trends and follow suggestions. Now, if only Facebook would add a dark mode….I’m nearly blinded when I switch from dark mode apps like Twitter back to the bright a**ed Facebook app!

‘To the Muskmobile, Robin!’ Elon Musk is revealing more about the next-gen Roadster. Bgr.com says the cold gas thrusters…which Musk claims will ‘dramatically improve acceleration, top speed, braking, and cornering,’ will be hidden behind the license plate. The car has already been touted as being capable of 250 mph, and a zero to 60 speed of 2.1 seconds (originally Musk said 1.9.) One huge selling point for the $200,000 Roadster: a 620 mile range before needing to hit a Tesla Supercharger for a recharge! Tesla plans to build about 10,000 of the high end sports coupes per year.

Prime Day-Strikes & Protests; Zillow Buying in Portland; Office 365 & iWork Banned in German Schools; Bosch’s Cloud Battery

Amazon workers in 5 countries are protesting working conditions in warehouses during Prime Day…calling for better pay in addition to improved working conditions. Businessinsider.com says workers in Minnesota are walking off the job for 6 hours today, as previously announced. In Germany, workers are striking for at least 2 days in 7 different warehouses. There are 2,000 German workers on strike so far today. Workers in the UK, Spain, and Poland are also holding protests, but not striking. For its part, Amazon has claimed that unions and protesters are ‘conjuring misinformation.’

Zillow is buying in Portland…literally. According to geekwire.com, the company has added Portland to Phoenix now for Zillow Offers, which is their service that lets customers request cash offers directly from Zillow on its website. Vancouver, BC also has gone live with the service. Zillow plans to add Austin, LA, Miami, Nashville, Sacramento, San Antonio, Diego, and Tampa by the end of 1st quarter 2020.

Privacy regulators in Germany have cracked down on cloud based office suites. Microsoft Office 365, Google Docs, and Apple’s iWork are banned from some German schools now due to privacy concerns with the way the cloud services work. 9to5mac.com says the authorities in the state of Hesse instituted the ban because the platforms’ standard configurations expose personal information about students and teachers to ‘potential access by US authorities.’ The collection of the personal data is banned under the GDPR haws that went into effect in the European Union last May. The authorities note that the kids can’t even give consent to releasing their personal data by law, as they are under age. The school districts can continue to use local versions of Microsoft Office that have been installed, instead of the cloud platform.

As batteries age, they can lose ability to hold charge…as we all know. Now, Bosch has come up with a new service that will help the battery management systems in cars to reduce cell aging. According to venturebeat.com, it can cut down on wear and tear by up to 20%. What is this magic sauce, you ask? Actually, it works by connecting electric vehicle batteries with the cloud. This has actually been done as far back as 2012, but the Bosch system transmits in real time—battery data (like current ambient temperature and charging habits) and machine learning algorithms then calculate a power pack’s service life and performance. The cloud data is than sent back to the car’s system, instructing it not to change to 100% if it’s too hot or too cold, and calculates the charging curve for fast or slow charging…to ensure that the packs are charged to ‘the optimum level’ using whatever power source is available.

Apple Watch Walkie Talkie Temp. Disabled; Close to 10% of Tesla Autopilot Team Bails; Former Tesla Employee Uploaded Autopilot Code to iCloud; Amazon Retraining Workers As Automation Takes Tasks

Apple has temporarily killed the Walkie Talkie app on the Apple Watch due to a vulnerability discovered. Techcrunch.com reports that it could allow a person to listen to another’s iPhone without consent. The Walkie Talkie feature works like the push to talk (PTT) button on older cell phones. They haven’t given a time frame, but say they will patch the bug and restore the app to operation as soon as possible.

Issues at Tesla….close to 10% of the Autopilot software team has reportedly exited after a shakeup. According to arstechnica.com, at least 11 members of that team have left in the last couple months…starting with the removal of the group’s leader Stuart Bowers around the first of May.

Meanwhile, in a court filing this week, former Tesla engineer Guangzhi Cao admitted to uploading zip files containing Autopilot source code to his personal iCloud account in late 2018 when he still worked at Tesla. The company sued Cao earlier this year for allegedly stealing trade secrets and taking them to Chinese EV startup Xiaopeng Motors, also called Xmotors, or XPeng. That firm is backed by tech giant Alibaba. Cao is now ‘head of perception’ at XPeng, where is is working on autonomous driving tech.

In a candid admission that automation is taking jobs, Amazon is launching a $700 million dollar initiative to retrain its US workforce. Geekwire.com reports that the company will spend the money over the next 5 years to ‘upskill’ almost 100,000 employees…that’s about 1/3 of their US workforce. It will help workers transition into hot new areas like data mapping specialist, data scientist, solutions architect, and business analyst. Although $700 million is a hell of a lot of money, it only amounts to a tenth of 1% of Amazon’s cumulative net sales the past 5 years! The company will drop $800 billion just this quarter as they switch from 2 day to one day Prime shipping!

MacBook Air & Pro Refresh, Price Drop; Facebook Takes Cut-Fan Subscriptions; Prime Day Warehouse Strike; Tesla NOT Working on Model S or X Refresh

Apple has updated the MacBook Pro and MacBook Air. The new Air will have a TrueTone display. Also, according to cnbc.com, the renewed entry level Pros not only have the TrueTone Display, but also get the Touch Bar and Touch ID. Best of all The MacBook Air drops to $1099, but will be offered to college students for $999. The configurations stay the same…128 Gigs of storage. Apple has also updated the much maligned keyboard design (which already showed up on the MacBook Pro in May.) A 13 inch MacBook Pro will now cost $1299 ($1199 for college students.) The entry level one gets a quad core processor and better graphics performance. Touch ID now comes on all 13 inch MacBook Pros. You can order up to 2TB of storage, too.

In 2018, Facebook rolled outran subscriptions. The program allows creators to charge their fans $4.99 a month, with the fans getting exclusive content and a fan badge. Up to now, that money has all flowed to the creators…but not anymore. Techcrunch.com is reporting that Facebook will start taking a 30% cut off the top, starting the 1st of next year. Happy New Year from Facebook! Apple has charged off the top for years on apps and the like, and google also has for mobile subscriptions, so this just follows along with them. Actually, Apple’s 30% and Google’s 30% for YouTube are less than the 50% fee collected by Amazon owned Twitch. Note: any subscribers a creator already has will still be at the no-fee rate.

Prime Day is coming, and is a huge, huge sales time for Amazon. Now, a fly has appeared in the ointment. Geekwire.com says warehouse workers at Amazon’s Shakopee, Minnesota warehouse plan a strike for 6 hours on July 15th…the 1st day of Prime Day. The workers are calling for Amazon to convert more temp workers to full time employees, plus reduce the brutal pressure for meeting quotas Amazon is infamous for.

there have been rumors flying around for weeks that Tesla is working on a refresh of the Model S and Model X. Engadget.com is reporting that Elon Musk has quashed those rumors today in a Tweet.

There is no “refreshed” Model X or Model S coming, only a series of minor ongoing changes. Most significant change in past few years was to use high efficiency Model 3 rear drive unit as S/X front drive unit. That went into production 3 months ago.
— Elon Musk (@elonmusk) July 9, 2019

FBI & ICE Grab Driver License Photos for Facial Recognition; Apple Tests Biometric iCloud Sign-Ins With FaceID and TouchID; Pixel 4 May have 16MP Telephoto; Toyota-Solar Cell e-Car Tests; Plane Lands Autonomously For First Time; Russia Plans Bomb Carrying Drones for Soldiers

The FBI and ICE have been snagging pictures from state DMV records to use for facial recognition…without the knowledge or permission of drivers. Georgetown Law researchers, teaming with the Washington Post, have obtained facial recognition requests, documents, and email which have revealed the process of getting then using the photos for facial recognition. ZDnet.com says neither Congress nor any state legislature has authorized such use! Apparently, the FBI conducts 4,000 such searches a month. At least 21 states permit the FBI to scan license photos. Washington state is the toughest…they at least require a court order first.

Apple is testing out biometric sign into iCloud on iOS 13, iPadOS 13, and MacOS Catalina. The system would use Face ID or Touch ID on later model iPhones and iPads, as well as Macs. The system will show you a pop up box asking if you’d like to sign-in using your Apple ID with biometrics. It’s possible Apple may be doing this in conjunction with the rollout of Sign in with Apple. The biometrics are not only fast and easier, but are more secure than manually entering your info.

Geeks digging into the code for Google Camera’s Super Res Zoom have spotted code that indicates the Pixel 4 may have a 16MP telephoto lens! According to 9to5google.com, this may not be set in stone…the code is in the Android Q beta, and lots of times features are still being tested in a beta that don’t make it to the final product. The Pixel 4 should drop in October, so we will know for sure then.

Toyota is now testing new, high-efficiency solar cells on electric cars that may be able to extend range by 35 miles or so. Electrek.co says the original Prius had an optional solar cell pack, but it was a 50 watt panel that helped run the AC and other accessories. These new cells can convey power at a 34% rate, which is quite good. They say if the hood, roof, and deck lid are covered, it should actually generate about 860 watts.This may or may not make it into production…in hail country, solar cells all over the top of the car would make for expensive repairs in a storm with golf ball or larger hail!

Researchers at the Technical University in Munich have successfully landed a plane autonomously. Engadget.com says it uses a combination of GPS and computer vision powered by both visible light and infrared cameras. This would enable it to get a sense of both the plane’s position and the runway, even in fog or rain. Most lager airports have glidescope indicators that allow airliners to essentially land automatically with the help of a radio signal (ILS), but most smaller airports don’t have those systems. Besides landings at smaller airports, this tech could pave the way for pilotless aircraft or air taxis in the future.

It sounds like something out of a bad sci-fi movie, but the Russians are working on drones with small bombs that soldiers can carry and launch. Engadget.com reports that the idea is iffy…drones are quick, but only can stay up about 15 minutes…and haven’t fared well so far against shooters or counter-drone tech. Also, if the soldier gets hit by a round or shrapnel, it might blow up right on him! Let’s hope this plan doesn’t get traction.

Galaxy Fold Allegedly Fixed; Alexa Doesn’t Purge Your Data; China Installs Snoopware-Tourist Phones; Apple iOS 13 Re-Aims Your FaceTime Gaze

Samsung has allegedly redesigned the Galaxy Fold in an effort to take care of screen durability issues that sunk the launch of the pricey folding phablet/phone. Theverge.com reports that no release date has been set, but it looks like the Fold will be out this year yet…but is unlikely to bow at next month’s Galaxy Note 10 event in New York. Samsung says it has found a way to make the screen’s protective film ‘flow into the bezels so it would be impossible to peel off by hand.’ Some reviewers peeled off the film, thinking it was just a protective feature for transit, but destroyed the screens in doing so. Samsung has also re-engineered the hinge…some of which bulged and broke the OLED screens. The new hinge is flush with the display. If the Fold makes it out for the 4th quarter holidays, better save your pennies….it is apparently still almost 2 grand!

in 1984, Big Brother may have been watching, but today, every ‘assistant’ is always listening. According to cnet.com, Amazon has responded to a letter from Senator Chris Coons (D-Delaware). He demanded to know how long Alexa kept voice recordings and transcripts. The answer from Amazon’s VP of Public Policy Brian Huseman— Alexa keeps transcripts and voice recordings indefinitely, and only removes them if they are manually deleted by users. Just another way whatever goes into the cloud stays permanently…

If you are planning a trip to China, be aware that officials there (at least in the Xinjiang region) are requiring tourists to install what amounts to a malware app at the border. Businessinsider.com says the app grabs all the text messages and scans for a variety of files liked to Islam…including extremist content, academic research, and even music! It also hoovers up all the calendar entries, contacts, and call logs, and uploads them to a server. This is a new level of snooping, even for perhaps the most intrusive surveillance state on earth.

Here’s one you didn’t see coming…in iOS 13, Apple has a feature called FaceTime Attention Correction…engadget.com reports that it uses advanced image manipulation to re-aim your eyes at the camera instead of the screen, to make eye contact look more natural. Now, you uber narcissists will be able to bat your eyes and look right into the soul of everyone with a little AI help from Apple. The feature only works on the iPhone XS and XS Max, BTW.

Samsung Confirms August 7th Unpacked; Facebook Downranks Misleading Health Info; Apparent Big Amazon Retail Space in Seattle; Tim Cook Blasts Jony Ive Report

It appears that Samsung will show off the Note 10 during their Unpacked event August 7th in New York. According to cnet.com, the event will be held at Barclays Center in Brooklyn. The invite shows a stylus and what looks like a camera lens. There is a rumor that the new S Pen may have a cam of its own, and another that claims the new Note 10 might have 4 rear cams. Yet another rumor touts a swivel selfie cam like the Galaxy A80. Although the Note line doesn’t sell like the Galaxy S handsets, the Note has always had a rabid fan base.

Facebook is taking a baby step when it comes to preposterous miracle cures and other bogus health info. The social network won’t be banning or blocking these crazy posts, but will be using their News Feed algorithm to downlink them, and other clickbait and low quality content. Techcrunch.com reports that Facebook explained “Posts with sensational health claims or solicitation using health-related claims will have reduced distribution. Pages should avoid posts about health that exaggerate or mislead people and posts that try to sell products using health-related claims. If a Page stops posting this content, their posts will no longer be affected by this change.” Note that this applies to pages, and doesn’t affect crazy content spread by individuals or ‘social selling’ like MLM pitches. Again….a baby step.

Amazon is apparently working on a new store taking up the 1st flor of a Capitol Hill apartment complex. Geekwire.com says all the windows are covered as crews work inside the building. They note that it is a much larger space than an Amazon Go store would require, and is in what is essentially a residential area. Geekwire has tracked down permitting that names an Amazon construction coordinator as the ‘client’ for the project. There are drawings showing space for entry and exit kiosks like could bee for scanning a QR code on the Amazon Go app. There is a large general sales area. It may be a bigger Amazon Go, or possibly a checker-less mini-grocery store. It looks like it might have around 7000 square feet of shoppable space. Amazon Go stores generally have 1500 to 3000 square feet.

After reports that Jony Ive was leaving apple due to Tim Cook’s focus on operations rather than design, Cook has fired back. In an email to NBC News, Cook called the story ‘absurd’ and said that such conclusions ‘don’t match with reality.’ From Cook’s email:

‘The story is absurd. A lot of the reporting, and certainly the conclusions, just don’t match with reality. At a base level, it shows a lack of understanding about how the design team works and how Apple works. It distorts relationships, decisions and events to the point that we just don’t recognize the company it claims to describe.

The design team is phenomenally talented. As Jony has said, they’re stronger than ever, and I have complete confidence that they will thrive under Jeff, Evans, and Alan’s leadership. We know the truth and we know the incredible things they’re capable of doing. The projects they’re working on will blow you away.’ At any rate, it had already been announced that Ive’s new design firm would continue to work on projects for Apple.

Ive Leaves Apple ‘Dispirited’; Chrome OS Adds Useful Settings; Fake Noise on EU Electric Cars; 2018 MacBook Air-Few Have Logic Board Issue & Apple Will Replace

Jony Ive was apparently ‘dispirited’ that Tim Cook showed little interest in product development, and that ultimately has led to his decision to exit Apple for his own design house. According to businessinsider.com, and other reports, Ive had just been showing up at the office twice a week of late. Ive and his team designed the majority of some of the most iconic electronic devices at Apple or anywhere else over the course of his 27 years there. Apple has announced that they will continue to work directly with Ive at his new design firm on exclusive projects.

Google is bringing a couple of new features you may find pretty useful to the Chrome OS. In the settings menu, when the Canery release goes live, you will be able to check Bluetooth battery levels. 9to5google.com reports that the feature has been available on Android for some time, but now makes it to Chrome. Also, a new section for parental controls with ties to the Family App from Google is appearing. Previously, you had to hunt for it, but now it’s right there in the settings menu.

All new models of electric cars sold in the EU must now make artificial noise under certain conditions. Theverge.com says Acoustic Vehicle Systems will have to be put into new models of hybrid and electric cars from this day forward, and be in all existing models by July 2021. The fake noise will be required when a vehicle is moving at under 12 mph, or backing up. The EU pointed out that virtually silent electric cars can be a danger to blind or partially sighted people. The Guide Dogs charity pointed out in 2017 that electric vehicles and hybrids grew 40% more likely to be involved in an accident that causes injury to pedestrians. The way a lot of people walk around and cross streets with their noses in their smartphones, the fake noise will probably also alert numerous people who are sighted, but dangerously inattentive to traffic.

Apple has announced that there is a very small number of 2018 MacBook Air 13 inch laptops that have a Logic Board Issue. According to MacRumors.com, Cupertino will email owners with the serial numbers affected, so they can bring the laptops in and get the Logic Board replaced free of charge. So far, Apple hasn’t provided any specifics as to what the issue is with the faulty boards.