Apple may have breached EU competition law by requiring app developers to use its proprietary in-app purchase (IAP) system and restricting them from telling iPhone and iPad users about other, cheaper purchasing possibilities outside of apps, the European Commission said Tuesday. The antitrust probe concerns the application of the rules to all apps that compete with Apple's apps and services. The investigation follows complaints by Spotify and an e-book/audiobook distributor on the impact of App Store rules on competition in music streaming and e-books/audiobooks. Apple appears to have a "gatekeeper" role in the distribution of apps and content to users of its devices, said EC Executive Vice President Margrethe Vestager, who handles competition policy. The EC wants to ensure the rules don't distort competition in markets where Apple competes with other app developers, such as with its music streaming service or Apple Books. The commission is also looking into whether the tech giant's conduct on Apple Pay violates competition rules. The opening of a formal investigation doesn't prejudge its outcome, the EC noted. Apple didn't comment. The App Store makes it possible for thousands of small European developers to create and distribute their products and services worldwide, emailed ACT|The App Association Chairperson Mike Sax. ACT wants to ensure the EC "hears the voice of small app makers." An EC decision shouldn't affect the U.S. unless presumptive presidential candidate Joe Biden wins, emailed Cowen's Paul Gallant. Apple "appears to have forged the best relationship with Trump among Big Tech CEOs," but if Biden wins, all four tech platforms will face more Democratic scrutiny, the analyst said: If the EC forces Apple to allow non-IAP payments next year, a Biden DOJ is likely to ask, "Why not for US consumers too?"
The Commerce Department said it's easing U.S. industry participation in telecom standards development even amid the administration's crackdown on Huawei. The department said a Bureau of Industry and Security rule says technology that wouldn't have needed a license to be disclosed to the Chinese company before its placement on the entity list "can be disclosed for the purpose of standards development in a standards development body without need for an export license." It noted U.S. work on standards setting "influences the future of 5G, autonomous vehicles, artificial intelligence" and other new tech. The general advisory opinion posted by BIS Aug. 19 is no longer in effect, Commerce said Monday. “Confusion stemming from the May 2019 entity list update had inadvertently sidelined U.S. companies from some technical standards conversations," said Information Technology Industry Council Senior Director-Policy, Asia Naomi Wilson. "We hope this measure will provide much-needed clarification and allow companies to once again compete and lead in these foundational activities that help enable the rollout of advanced technologies." Huawei didn't immediately comment.
Huawei asked for a seven-day extension to respond to an FCC Public Safety Bureau notice seeking comment on an NTIA network security letter (see 2006090057). Comments are due June 19 in docket 19-351. The comment period is “wholly insufficient to allow Huawei to digest, investigate and respond to the substantive and legal issues raised,” the company said in a filing posted Friday. Because of the pandemic, “many of the persons who will be involved in preparing responses to the NTIA Letter (including Huawei employees and outside counsel) are working from home,” Huawei said.
Zoom won’t allow requests from the Chinese government to affect users outside mainland China, the company said Thursday. It responded to House Republicans’ criticism about coordination with Chinese authorities for removing certain users and activity (see 2006110074). The company acknowledged removing host accounts at the Chinese government’s request due to behavior violating Chinese law. Three accounts have been reinstated, the company said: The videoconferencing platform is developing technology to remove or block participants based on geographical location, allowing it to comply with local laws not at the expense of international users.
Brazil added 12 items to its list of IT and telecom goods subject to duty-free treatment, the Hong Kong Trade Development Council reported. Duty-free treatment is through 2021, the group said Tuesday. Brazil's Washington embassy didn't comment Thursday.
Israel-based Tower Semiconductor licensed Invensas ZiBond and DBI 3D semiconductor interconnect technologies, said Tower and Invensas parent Xperi Wednesday. The license supports manufacturing of time of flight and advanced sensors for CE, machine vision, autonomous vehicles and smart devices. Tower will also explore the use of Invensas 3D integration technologies for memories and micro-electromechanical system devices. Xperi and TiVo completed their merger June 1 and will operate under Xperi (see personals section, June 9).
More than 20 International Telecommunications Satellite Organization member nations filed declarations Monday with U.S. Bankruptcy Court in Richmond (in Pacer, docket 20-32299). They supported ITSO's request the court allow it to pursue its arbitration proceeding against Intelsat before the International Chamber of Commerce (see 2005260001). Intelsat didn't comment.
South Korea leads the world in 5G deployment, with Kuwait and Switzerland close behind, reported Omdia Thursday. The researcher studied several metrics, including 5G operator launches, network coverage and subscriber adoption, and ranked South Korea as the “early market leader.” It topped the world with 4.67 million subscribers through December, “which equates to about seven per cent of wireless services in the market,” it said. The U.S. was in fourth place in an accompanying chart.
Attacks against 5G infrastructure and disinformation on health risks (see 2005150022) imperil rollout of services needed to ensure Europe's recovery from the pandemic, speakers said at a Wednesday webinar hosted by GSMA and the European Telecommunications Network Operators' Association. 5G is the "missing link" between Europe's digital strategy and its environmental plans, but misinformation risks significantly delaying the deployment, said ETNO Director General Lise Fuhr. There have been about 142 site attacks in 10 EU countries and the U.K., which had the most attacks, said GSMA Head-Europe Afke Schaart. It's not just posting misinformation; it has become more mainstream, with a global 5G protest planned for Saturday, she said. The impact includes some countries postponing spectrum auctions, Schaart said. One way to fight back might be for local politicians to get involved in decisions on deploying 5G, said Member of European Parliament Miapetra Kumpula-Natri, of the Progressive Alliance of Socialists and Democrats and Finland. Local authorities should be given information about the technology so citizens can trust their decisions on installations. She urged governments planning 5G spectrum allocations to focus on coverage rather than revenue to allow operators to build out. Deployment has challenges, said Susana Solis Perez, of the Renew Europe Group and Spain. These include lack of demand for 5G services, environmental issues, electromagnetic frequency (EMF) considerations, network security and the risk of widening the digital divide. There's no time to waste in building infrastructure in response to COVID-19, she said. EU's e-commerce directive is "too weak" to attack disinformation, said Lisa Felton, Vodafone Group head-data, services and consumer regulation. The upcoming EC proposal for a digital services act should include legal requirements for actions online platforms must take in response to disinformation if they don't want to lose safe harbor liability protections, she said. The EC believes public health protection is paramount, and recommends maximum EMF exposure limits with wide safety margins based on scientific data, said Andreas Geiss, DG Connect head of unit-spectrum policy. The EC wants to focus debate on those facts and evidence, seeking to inform people about EMF and the benefits of 5G, he said. There's little evidence RF radiation causes cancer, affects fertility, results in changes to development, cognition or behavior, harms the immune systems or causes electrohypersensitivity, said Frank de Vocht, University of Bristol senior academic in epidemiological and public health. The idea that 5G affects the immune system is the basis for 5G/COVID-19 theories "haunting" social media, but there's no plausible theory on how millimeter waves could do that, he said.
The Office of the U.S. Trade Representative is starting Trade Act Section 301 investigations into digital services taxes (DSTs) that were adopted or are under consideration, the agency said Tuesday. Investigations focus on Austria, Brazil, the Czech Republic, EU, India, Indonesia, Italy, Spain, Turkey and the U.K. Comments are due July 15. Evidence "suggests the DSTs are expected to target large, U.S.-based tech companies," USTR said. "The European Commission is considering a DST as part of the financing package for its proposed COVID-19 recovery plan." The EU's delegation to the U.S. didn't comment. The "investigation initially will focus on the following concerns with DSTs: discrimination against U.S. companies; retroactivity; and possibly unreasonable tax policy," the USTR said. While the Information Technology Industry Council "hoped to avoid further escalation of tensions, increasingly-expansive unilateral tax measures have necessitated a stronger response,” said CEO Jason Oxman. “ITI continues to support the U.S. government’s efforts to investigate these complex trade issues." Tariffs are a possible result of Section 301 investigations. The agency previously started a Section 301 investigation into France over such taxes and tariffs that were proposed but not implemented (see 1912030002). “An increasing number of countries have proposed or enacted discriminatory and unilateral digital taxes in recent months, despite ongoing [OECD] negotiation," noted Internet Association Director-Trade Policy Jordan Haas. "The U.S. must continue sending a strong message to trading partners that targeted discriminatory taxes against U.S. firms are not an appropriate solution." Instead of "unilateral DSTs, the world needs a multilateral solution," said U.S. Chamber of Commerce Head-International Affairs Myron Brilliant. "The Chamber supports efforts to address these challenges through multilateral negotiations under the aegis of the OECD. We urge all parties to double down on those negotiations.”