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    Microsoft beat the FTC, and the Nothing Phone 2 is here

    enJuly 14, 2023

    Podcast Summary

    • Technology streamlines work and fosters connectionCanva's AI-powered presentations save time and effort, while social media threads offer opportunities for engagement and community building. These tools demonstrate technology's power to streamline work and foster connection.

      Technology, in the form of tools like Canva and social media platforms like threads, can significantly ease the workload and anxiety associated with creating presentations and engaging online. Canva's AI-powered presentations can help users generate slides quickly and customize them to their liking, saving time and effort. Similarly, social media platforms like threads offer opportunities for engagement and community building, even if they eventually face backlash or criticism. The documentary "Art Beats and Lyrics" showcases how technology and culture can intersect and evolve, while Jack Daniels serves as a reminder of the role of tradition and history in innovation. Overall, these tools and stories demonstrate the power of technology to streamline work, foster connection, and inspire creativity.

    • Meta's Effective Content ModerationMeta's resources and expertise make it the most effective social media platform at content moderation, but it's not perfect and users can manage their interactions.

      Meta, the company behind Facebook and Instagram, is more effective at content moderation than any other social media platform, despite some users' disillusionment and criticisms. Meta's vast resources and expertise enable it to deal with a wider range of problems and maintain a relatively positive user experience. However, it's important to acknowledge that Meta is not perfect and still faces challenges, including biases and the prioritization of engagement over impact. Users have the power to manage their interactions by utilizing tools like muting and blocking, and should not feel obligated to engage with negative content. Ultimately, while Meta may not have a perfect record, it is currently the best option for content moderation at a large scale.

    • Meta's pursuit of decentralization and federation through ActivityPubMeta is working on decentralizing and federating its social media platforms using ActivityPub, driven by regulatory requirements and technical challenges. Despite potential benefits, concerns remain about privacy and interoperability regulations.

      Meta (Facebook) is seriously pursuing the decentralization and federation of its social media platforms through ActivityPub, as evidenced by their involvement in the technical and regulatory discussions. This move may be driven by regulatory requirements and the desire to solve complex technical challenges. The small team working on this project has not been a significant financial burden for Meta, and they can monetize it through extending the reach of their existing ad units. However, Meta still faces issues with privacy and encryption, as seen in a recent case where a woman was charged for exchanging messages that led to her daughter obtaining abortion pills, as Meta does not enable end-to-end encryption by default. Despite the potential benefits and excitement around the project, concerns remain about the potential conflict between interoperability and privacy regulations, as well as Meta's motivations and ability to execute on this vision.

    • Apple's Public Betas: Balancing Innovation and User ExperienceApple's public betas introduce new features but may impact user experience negatively through reduced battery life and overheating devices. Users must evaluate the benefits and drawbacks of each update.

      Technology companies prioritize profits over user experience and innovation, as seen in Meta's consistent disregard for user privacy and Apple's beta updates that decimate battery life. Apple's public betas, while offering new features, come with trade-offs such as reduced battery life and overheating devices. The Mac is increasingly resembling the iPhone, with widgets and standby mode, but the public's reaction to these changes varies. Some are excited about the new features, while others remain skeptical or even resistant. The debate over Stage Manager and standby mode illustrates the ongoing evolution of technology and user preferences. Ultimately, users must weigh the benefits and drawbacks of each update and decide whether the improvements are worth the potential inconveniences.

    • Microsoft's Acquisition of Activision Blizzard: Implications and Antitrust ConcernsMicrosoft's acquisition of Activision Blizzard marks a significant move in the gaming industry, with potential antitrust concerns and implications for competition and innovation.

      Kevin Lynch, Apple's vice president of Technology, shared his excitement about new app clippy widgets and personal voice assistant features during a recent beta testing discussion. However, he also warned about some bugs in the public beta, particularly a keyboard issue. Lynch also shared his amusement over a TikTok mishap involving Marcus Brownlee's demo of the personal voice assistant feature. Meanwhile, the FTC versus Microsoft trial resulted in a loss for the FTC, with Microsoft having to meet a July 18th deadline to acquire Activision Blizzard. Eli, I'd love for you to elaborate on your thoughts regarding the Microsoft trial and its implications. The Microsoft trial was a significant event this week, with the FTC losing its case to block Microsoft's acquisition of Activision Blizzard. The decision came quickly due to Microsoft's July 18th deadline to finalize the deal. The trial received extensive coverage, with many interpretations and analyses. Eli, could you share your thoughts on the implications of this acquisition for the gaming industry and potential antitrust concerns? Additionally, Lynch's discussion about the beta testing and new features highlights Apple's ongoing efforts to improve user experience and accessibility. The personal voice assistant feature, in particular, has the potential to revolutionize accessibility for many users. What are your thoughts on this feature, and how do you see it impacting the tech industry and accessibility as a whole?

    • Microsoft-Activision merger trial focused on Call of Duty impactThe court ruled in favor of Microsoft's acquisition of Activision, ensuring Call of Duty's availability on various platforms for the next decade, despite concerns from Sony.

      The Microsoft-Activision merger trial was primarily focused on the potential impact on Call of Duty, as the game is a significant revenue generator for Sony and a popular title in the gaming industry. The FTC argued that the merger could potentially foreclose Call of Duty from rivals, but the court ruled in favor of Microsoft, stating that there was no evidence to suggest this would occur. Microsoft's intentions were to build a library for its cloud gaming future and to ensure the availability of Call of Duty across various platforms. Despite Sony's emphasis on Call of Duty during the trial, it appears that Microsoft was not solely focused on this title and had broader plans for its acquisition of Activision. The court's ruling ensured the continuation of Call of Duty on PlayStation and other platforms for the next decade.

    • Critics argue FTC's focus on Call of Duty in Microsoft-Activision Blizzard case was a distractionCritics suggest the FTC could have taken a different approach, such as creating political capital or appealing to the courts for a new precedent, to address antitrust concerns in the gaming industry instead of solely focusing on Call of Duty.

      The FTC's approach in the Microsoft-Activision Blizzard case, focusing on Call of Duty as evidence of anti-competitive behavior, was criticized for being a distraction and potentially losing sight of the bigger picture. The case, which resulted in a court loss for the FTC, was seen as an opportunity to create a new paradigm for the gaming industry, rather than solely focusing on a specific game. Critics argue that the FTC could have taken a different approach, such as creating political capital or appealing to the courts for a new precedent, to better address the antitrust concerns. Additionally, some believe that the FTC's project, led by Chair Lina Khan, to reset antitrust law in the US, could benefit from more clear communication and a more strategic approach.

    • Microsoft vs Sony: Cloud Gaming and AntitrustJudge's limited understanding of cloud gaming impacted outcome, Microsoft's acquisition of Activision Blizzard could impact competition, outcome may set precedent for future antitrust cases

      The recent legal battle between Microsoft and Sony over cloud gaming raised concerns about market competition and consumer choice. The judge in the case seemed to have a limited understanding of cloud gaming, which could impact future antitrust cases. The fight hinged on whether Nintendo was a genuine competitor and if cloud gaming posed a threat to consoles. Sony argued that Microsoft's acquisition of Activision Blizzard could harm competition, but the focus shifted to Call of Duty. Microsoft's approach to cloud gaming was unclear, which may have contributed to the outcome. Vertical mergers, such as Microsoft's potential acquisition of Activision Blizzard, are typically not challenged, but their impact on competition and consumer choice should be carefully considered. The outcome of this case may set a precedent for future antitrust cases involving cloud gaming and technology mergers.

    • Implications of Vertical Mergers: AT&T-Time Warner as a Case StudyVertical mergers like AT&T-Time Warner could impact jobs, competition, and consumer choice negatively. Stricter antitrust laws may help prevent job losses and maintain a competitive market, while ensuring companies are held accountable post-merger.

      The discussion revolves around the implications of vertical mergers, specifically the AT&T-Time Warner merger, on competition in various industries, particularly media and technology. The speaker expresses concerns about the potential negative effects of such mergers on jobs, market competition, and consumer choice. They also touch upon the historical context and regulatory framework surrounding vertical integration. The speaker suggests that a more stringent antitrust law could be beneficial to prevent job losses and maintain a competitive market. However, they also acknowledge the potential benefits of mergers and the importance of companies being held accountable for their actions post-merger. The overall tone is thought-provoking and raises important questions about the balance between competition and consolidation in different industries.

    • Exclusive gaming deals impact market competitionMicrosoft's acquisition of exclusive game franchises could lead to less innovation, a stagnant market, and higher prices for consumers if antitrust enforcement fails to prevent such consolidation.

      The exclusivity deals between gaming companies and console manufacturers can significantly impact the market competition and consumer choices. In this discussion, it was mentioned that Microsoft's acquisition of exclusive game franchises like Call of Duty and Diablo has left Sony with little to offer, making the PS5 the preferred choice for gamers. The FTC's failure to prevent such consolidation could lead to detrimental outcomes for consumers beyond just price increases. The loss of competition can result in a lack of innovation and a stagnant market. It's essential to recognize that both Sony and Microsoft are multi-billion dollar corporations acting in their self-interest, and the current situation highlights the need for antitrust enforcement and changes in the law to prevent such consolidation. Ultimately, the consumer is the one who suffers when market competition is weakened.

    • The Illusion of More Choices in StreamingDespite the perception of endless options, the actual amount of content available in streaming has shrunk, highlighting the need for effective discovery tools.

      While the number of choices may seem greater in the streaming world compared to physical video stores like Blockbuster, the reality is that the amount of content available has shrunk. This is counterintuitive, as many people assume the opposite. The discussion also touched upon the new "nothing phone" and its unique features, which while intriguing, do not necessarily represent a transformative idea for smartphones. Instead, it's a phone that aims to help users use their phones less, with tools like making all icons look the same to make it harder to find certain apps. While the phone has its merits, it doesn't offer anything revolutionary. The conversation also included a humorous anecdote about spilling pudding on a computer and the unexpected resilience of technology.

    • Android ecosystem offers unique phone styles and featuresSmaller companies face challenges in accessing advanced smartphone components despite market commoditization, but unique selling points can help them succeed

      The Android ecosystem is now offering a wider range of unique phone styles and features, allowing consumers to pick a device based on their preferred vibe. This is a shift from the past when only Apple and Samsung had the resources to innovate significantly. However, even with the commoditization of many smartphone components, smaller companies still face challenges in accessing these advancements due to the market's intense competition. Despite these hurdles, companies like Nothing, with a strong vision and unique selling points, can make a mark in the industry. The Nothing Phone 2, for instance, offers an interesting cosmetic design, but it remains to be seen if it will push the boundaries far enough to truly differentiate itself from competitors.

    • Innovative designs and approaches of Nothing Phone (1) and Telly free TVThe Nothing Phone (1) with its monochrome sleek design and Telly's free television concept have left a lasting impression on the tech community, generating excitement and anticipation.

      The Nothing Phone (1) and the Telly free TV have captured the attention of tech enthusiasts with their unique designs and innovative approaches. The Nothing Phone's monochrome sleek design and the Telly's free television concept have left a lasting impression on the tech community, and people are eager to learn more about these products. The Nothing Phone's resemblance to the Palma Android ink phone and the excitement surrounding the Telly's shipping have generated a lot of buzz. The idea of having all the colors we need on a TV and a free television are appealing to many. The tech world is currently in turmoil with platforms like Reddit and Twitter facing issues, but the anticipation for these products is providing a welcome distraction. The rumored 32-inch iMac is also generating excitement, and many are considering making the switch to Apple's ecosystem. Overall, these innovative products have managed to stand out in a crowded market and have left a lasting impression on tech enthusiasts.

    • Apple's plan to turn computer monitors into smart displaysApple is exploring the creation of smart displays from computer monitors, aiming to make them the central hub of functions due to their size and desk presence. However, the cost is uncertain and affordability is a concern.

      Apple is exploring the concept of transforming computer monitors into smart displays, aiming to make them the hub of various functions due to their large size and constant presence on our desks. However, the cost of such a device remains uncertain, with the speaker expressing skepticism about the affordability of high-end Apple products. Meanwhile, in the world of entertainment, both SAG and the WGA have gone on strike for the first time since 1960, leading to a significant disruption in the industry. This news comes as a surprise, as SAG typically avoids strikes while the WGA is more prone to them. These developments signify significant changes in both the tech and entertainment industries.

    • Studio execs' insensitive comments fuel writers' strike backlashThe writers' strike continues, with public support growing after insensitive comments from studio execs and concerns over residuals and equitable compensation for writers and actors.

      The ongoing writers' strike in the entertainment industry has received significant backlash after unnamed studio executives were reported to have made insensitive comments about the writers losing their homes and waiting them out. These comments, which were intended as negotiating moves, have instead fueled public support for the writers and shifted the narrative further against the studios. The fight for residuals, which is a major issue for the writers and actors, has also gained significant attention. Disney CEO Bob Iger's recent comments at the Sun Valley Conference, where he dismissed the strike and suggested that ESPN and ABC might be sold, have added to the controversy and raised concerns about the future of the industry. The economic realities of the industry and the need for more equitable compensation for writers and actors remain at the heart of the dispute.

    • Traditional sports media facing disruption from digital platformsESPN's high carriage fees lead to piracy and shift to free platforms, creators on social media gain power, legal implications of AI in content creation pose challenges for future of sports media.

      The traditional sports media landscape is undergoing significant changes due to shifting consumer preferences and the rise of digital platforms. The high carriage fees for sports channels like ESPN, which are passed on to consumers, have led to a growing sentiment that people don't want to pay for content they don't watch. This has resulted in the destruction of ESPN's business model as viewers turn to pirated streams and free platforms like Reddit. The free economy of creators and creatives on social media platforms like Instagram is a clear indication of the shift in power from traditional media to digital platforms. The legal implications of AI and its impact on content creation is another area of concern, with authors like Sarah Silverman taking legal action against companies for unauthorized copying of their work. The future of sports media is uncertain, with traditional media companies struggling to adapt to the new reality.

    • Legal challenges for AI and copyright lawThe legal framework for copyright law creates challenges for AI, which make copies at a rapid scale, leading to potential litigation and debates around original creators' value.

      The legal issues surrounding AI and copyright law are complex, but at their core, they boil down to the question of whether or not a copy was made without permission. The Napster case serves as a precedent, where a business facilitated unauthorized copying, leading to the development of legal theories around contributory infringement. The current copyright law, which regulates the act of making copies, creates challenges for computers and AI, which make copies at a rapid scale. The ongoing investigation of OpenAI by the FTC is a sign of things to come, as copyright law struggles to adapt to the digital age. The potential for litigation is high, and the value returned to the original creators is a significant concern. Despite the complexities, The Verge intends to keep exploring these issues in depth, reflecting their commitment to long-form journalism and their audience's interest in legal matters.

    • Impact of Musical Performances and Cultural EventsThe Vergecast discussed the power of art, music, and cultural events to bring people together and create memorable experiences, featuring 'Jesus Christ Superstar', upcoming guests, Canva, and the Art Beats and Lyrics (AB&L) art show in Atlanta.

      The Vergecast, a podcast production of The Verge and the Vox Media Podcast Network, recently featured a discussion about the impact of musical performances and cultural events. The podcast host, Carl Pay, shared his love for the musical "Jesus Christ Superstar" and announced upcoming guests for the show. They also promoted Canva, a tool for creating presentations, and mentioned a documentary called "Art Beats in Lyrics" about the growth of the Art Beats and Lyrics (AB&L) art show in Atlanta. AB&L's founder Jabari Graham and curator Dwayne W. Wright are highlighted in the documentary, revealing their personal stories and the role Atlanta played in shaping their careers. The documentary follows the artists preparing for AB&L's 20th Anniversary Tour and captivating thousands of fans. Overall, this discussion emphasizes the power of art, music, and cultural events to bring people together and create memorable experiences.

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    Antitrust in America (classic)
    Earlier this fall, the Federal Trade Commission filed a high-stakes lawsuit against Amazon.

    In that suit, the FTC claims Amazon is a monopoly, and it accuses the company of using anti-competitive tactics to hold onto its market power. It's a big case, with implications for consumers and businesses and digital marketplaces, and for antitrust law itself. That is the highly important but somewhat obscure body of law that deals with competition and big business.

    And so, this week on Planet Money, we are doing a deep dive on the history of antitrust. It begins with today's episode, a Planet Money double feature. Two classic episodes that tell the story of how the U.S. government's approach to big business and competition has changed over time.

    First, the story of a moment more than 100 years ago, when the government stepped into the free market in a big way to make competition work. It's the story of John D. Rockefeller and Standard Oil, and a muckraking journalist named Ida Tarbell.

    Then, we fast forward to a turning point that took antitrust in the other direction. This is the story of a lawyer named Robert Bork, who transformed the way courts would interpret antitrust law.

    These episodes were produced by Sally Helm with help from Alexi Horowitz Ghazi. They were edited by Bryant Urdstadt. Alex Goldmark is Planet Money's executive producer.

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    Amazon’s Most Beloved Features May Turn Out to Be Illegal

    Amazon’s Most Beloved Features May Turn Out to Be Illegal

    The U.S. government has filed a landmark antitrust lawsuit against Amazon, pointing to a set of familiar features that have made, the internet retail giant so beloved by consumers.

    Karen Weise, a technology correspondent for The Times, explains why those features may actually be illegal.

    Guest: Karen Weise, a technology correspondent for The New York Times.

    Background reading: 

    For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.