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The DOJ antitrust review is here

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recode.net

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dailynews@recode.net

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Wed, Jul 24, 2019 01:27 PM

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The DOJ will take a look at “how the most dominant tech firms have grown in size” and expa

[The Justice Department is opening a broad antitrust probe into whether tech giants like Apple, Facebook, Google, and Amazon are unlawfully crowding out competition.](The DOJ will take a look at “how the most dominant tech firms have grown in size” and expanded into other businesses. It’s also interested in how tech firms have “leveraged the powers that come with having very large networks of users.” This inquiry is a strong signal of just how interested Attorney General William Barr is in the tech sector. - The risks: In addition to antitrust issues, this review could present big concerns for these businesses because the department “won’t ignore other company practices that may raise concerns about compliance with other laws.” [[Brent Kendall / Wall Street Journal](] [Apple’s own apps show up first in basic App Store searches.](According to an analysis by the Wall Street Journal, basic searches for things like “maps” return an Apple-made app as the top suggestion over other competitors 60 percent of the time. And if the app generates revenue through a subscription (think Books or Music), the chances of being shown an Apple-owned result first goes up to 95 percent. Apple told the Journal its search results are based on “machine learning and past consumer preferences” and don’t favor its products. However, it did not disclose how its ranking system works. - The big deal: Apple’s App Store brings in an estimated $50 billion in annual spending, and as [iPhone sales droop](, this will be an important source of revenue for the company. - What’s next: Legal challenges are coming for Apple. Currently, [two app developers are suing]( the company in federal court, “alleging the App Store amounts to a monopoly on distribution.” And in March, [Spotify filed a complaint](in Europe, “alleging Apple has made it difficult for rival subscription services to market themselves in the App Store.” [[Tripp Mickle / Wall Street Journal](] [Back under the FTC’s spotlight: Facebook.]( The Federal Trade Commission plans to accuse Facebook of mishandling its users’ phone numbers, according to the Washington Post. According to sources familiar with the FTC probe, Facebook gave advertisers access to users’ phone numbers that the social media giant collected when people set up SMS-based two-factor authentication security for their accounts. And there’s more: The FTC plans to allege that Facebook did not properly inform users (roughly 30 million) “about their ability to turn off a tool that would identify and offer tag suggestions for photos.” - How’d you get this number? Last September, Kashmir Hill reported on how Facebook gives advertisers access to its users’ private, or “shadow,” contact information. [[Tony Romm / Washington Post](] [Games like League of Legends and Fortnite raise tough questions about American tech companies’ autonomy from China.](In order to be competitive in a Chinese market where the government is demanding “game addiction” limitations, American gaming companies are setting in-game restrictions for age and time spent. But privacy advocates tell the LA Times that building tools to detect who is playing and for how long “constitute[s] a granular privacy invasion that runs counter to American norms.” - How much censorship is too much? Google, which left China in 2010, has struggled with controversies there. Its plans for a censor-compliant Chinese search engine led to an employee backlash. (Google told Congress last week that it has dropped the project, code-named Dragonfly.) [[James B. Cutchin / Los Angeles Times](] [Beyond Meat is coasting into its second-quarter earnings with its stock at an all-time high.](CNBC reported that on Tuesday, the meat substitute company Beyond Meat’s stock was up 720 percent since its May IPO ([it initially sold its stock for $25](). The company will report earnings on Monday and is expected “to post a loss of 8 cents per share on revenue of $52.7 million.” But as of right now,[the company is not profitable and warns that it may never be](. - Hey, what about eggs? Just, a company trying to design an eggless egg, is seeking to fill the need for a workable (and fry-able) egg alternative. So far, mung beans, which are legumes from Southeast Asia, have been found to give plant-based eggs the texture (and, crucially, the scramble-ability) of chicken eggs, [according to Vox](. [[Jasmine Wu / CNBC](] [Insert alt text here] [Where your delivery app tips really go, explained.]( Companies like DoorDash and Amazon have been accused of dipping into the tip jar. Here’s how it really works. [[Shirin Ghaffary](] [🎧]( [In 10 years, every “relevant” company will be a tech company, Stitch Fix CEO Katrina Lake says.]( However, Lake says on [Recode Decode](, she still hopes there’s a future for retail stores that deliver an experience to visitors. [Insert alt text here] [How Warped Tour helped commodify punk.]( [Twitter]( [Facebook]( [Instagram]( This email was sent to {EMAIL}. Manage your [email preferences]( to receive fewer emails, or [unsubscribe]( to stop receiving all emails from Vox. Vox Media, 1201 Connecticut Ave. NW, Washington, DC 20036. Copyright © 2016. All rights reserved.

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