Epic and Match antitrust case against Google goes to trial November 6th

Epic Games and Match Group now have a court date for their antitrust case against Google. A Northern District of California judge has set the start of a jury trial for November 6th. Both Epic and Match accuse Google of abusing its control of Android app distribution through the Play Store by establishing unfair fees and requirements for in-app purchases. This comes alongside a lawsuit from 39 attorneys general as well as a customer class action suit demanding $4.7 billion in damages.

Epic sued Google in 2020 after the Android creator kicked Fortnite out of the Play Store for letting customers use an alternative in-app payment system. Match sued Google last year over the “exorbitant” store fee. Epic and Match consolidated their case and a filed motion last fall to expand their allegations, accusing Google of further antitrust violations by paying major developers hundreds of millions of dollars to keep their apps in the Play Store. 

Unlike Epic’s partially successful lawsuit against Apple, this case has to acknowledge that customers do have a choice. Where Apple requires that all regular app downloads go through the App Store, Android’s sideloading option lets customers install software without downloading it from Google. The issue, as you might imagine, is that those apps are both harder to install and less likely to be noticed when the Play Store is included by default on many Android phones.

Google denies misusing its power, and argues that the fees are necessary to maintain and invest in the Play Store. It maintains that the incentive program doesn’t forbid developers from launching third-party stores, and that its portal competes fairly. In December, Google called on the court to deny the expanded requests over timing and other issues.

Google has made some concessions, including a test program for Play Store billing alternatives. That pilot still gives Google a cut of each transaction, though, and it remains to be seen if moves like that will satisfy the court and regulators. As it is, the internet pioneer is facing a raft of other antitrust cases that include a Justice Department lawsuit from 2020. Even if Google prevails against Epic and Match, it may not escape unscathed.

Netflix co-founder Reed Hastings steps down as co-CEO

One of streaming’s most influential figures is stepping away from the spotlight. Netflix co-creator Reed Hastings is stepping down as the company’s co-CEO. Ted Sarandos, who has been co-CEO since July 2020, will share the reins with newly promoted operations chief Greg Peters. The change takes effect today. Hastings says he’ll remain involved as Executive Chairman, serving as a “bridge” between the board of directors and the new CEOs.

The departing leader characterized the move as a long-expected transition. Sarandos and Peters have “increasingly” managed the company for the past two and a half years, Hastings says. This was merely the “right time” to implement a succession that has been in development for years, he adds. Sarandos is credited with leading Netflix’s move into original content, while Peters has been key to forming partnerships and helming the company’s push into gaming.

Hastings’ departure comes as Netflix seems to be slowly recovering from a grim 2022. It lost subscribers for the first time in over a decade, and blamed a combination of fiercer competition, limited opportunities to grow and widespread account sharing. In its just-issued fourth quarter earnings report, however, it reported adding 7.66 million new customers, reaching a total of 230.75 million subscribers. That appears to have come at the expense of profit (Netflix made just $55 million in net income), but it’s a marked turnaround from the first half of 2022.

Netflix says the end-of-year performance beat its forecast, and that it’s “pleased” with the early performance of its $7 ad-supported plan. The company isn’t saying how many customers are subscribed to this lower-priced tier. Instead, it credits the better-than-expected results to a strong content lineup that includes the Knives Out sequel Glass Onion, Harry & Meghan and the Addams Family spinoff Wednesday.

The company is cautiously optimistic about the first quarter of 2023. It believes it will see a “modest” boost to its subscriber base, and plans to roll out paid account sharing “more broadly” later in the period. In that sense, Hastings is leaving at a good moment for the business he helped create. While Netflix isn’t back to its peak form, it’s in a more stable position that could provide its new leadership with a better start.

UK bill would ban videos portraying Channel immigrant crossings in a ‘positive light’

The UK government is still expanding the scope of its Online Safety Bill. Digital, Culture, Media and Sport secretary Michelle Donelan said in a statement that politicians will propose amending the bill to ban videos portraying Channel immigrant crossings by boat in a “positive light.” Those clips are “aiding [and] abetting” immigration law violations, according to Donelan. As with child sexual abuse material (CSAM) and terrorist content, internet platforms will have to pull crossing-related footage quickly.

The culture secretary detailed other significant proposed amendments. Senior company leaders could face prison time if they’ve “consented or connived” to ignore online child safety requirements. Platforms will also have to remove content that promotes LGBTQ conversion therapy practices. Violations of any aspect of the bill could lead to fines up to £18 million (about $22.3 million) or 10 percent of a company’s global turnover.

The amendments should be ready for a version of the bill reaching the House of Lords. The changes came after pressure from Conservative MPs like Natalie Elphicke, who serves Dover — a frequent landing site for illegal immigrants.

The alterations aren’t surprising given growing concerns in the country over the impact of illegal immigration, not to mention existing provisions in the bill for child safety. However, they add to the feature creep of a bill that has already been delayed several times. There have been concerns the Online Safety Bill might not pass before the next general election, due within two years.

The new provisions also won’t satisfy critics like the Electronic Frontier Foundation, which already claim the measure amounts to censorship. They’re worried the bill will also hurt privacy by eroding protections for the use of end-to-end encryption. Whatever your stances on the issues, it’s safe to say the changes would further limit what UK residents are allowed to say online.

Uber teams with car makers to design EVs for ridesharing and deliveries

Some cars seem oddly well-suited to Uber (Toyota Prius, anyone?), but the company is now taking things a step further. Uber chief Dara Khosrowshahi told guests at a Wall Street Journal event that his firm is now teaming up with car manufacturers to des…

Ubisoft cancels team battle game ‘Project Q’

Ubisoft has identified one of the three games it cancelled last week. A spokesperson for the publisher has confirmed to Engadget and Eurogamer that it will “no longer support the development” of Project Q, the team battle arena title it revealed last April. The move will help the company concentrate on “priority projects,” according to the representative. Ubisoft is reassigning team members to games still in development.

Developers shared little about Project Q. Besides concept art, Ubisoft only said the game was “not a battle royale” and would have a range of player-versus-player modes. It added that there were no plans to offer NFTs.

The firm still hasn’t named the two other cancelled games. The reasoning, however, is the same. Ubisoft expects its revenue to drop year-over-year due to a rough economy, delayed releases and shifting game trends, and notes that holiday offerings like Just Dance 2023 and Rabbids: Sparks of Hope didn’t sell as well as expected. Management is looking to shave expenses wherever it can, and fewer games is clearly part of that strategy alongside “targeted restructuring” that could include layoffs.

The year has already been problematic. A labor union called for a strike at Ubisoft Paris after CEO Yves Guillemot made statements suggesting rank-and-file staff, not leadership, had to be “especially careful” with money. Kotakuclaims Guillemot offered a partial apology in a follow-up meeting. However, the incident apparently underscored the rift between management and employees — one that may not be mended in the near future.

Wikipedia’s first desktop design update in a decade doesn’t rock the boat (updated)

Wikipedia is finally getting its first major redesign in a decade, but it may be notable precisely because of how little it changes the core experience. The newly launched rework looks very familiar, and instead eliminates some common hassles. A new sticky header provides quick access to search and article sections, while a revised search shows images and descriptions as you type. It’s easier to switch languages, and a table of contents helps you navigate content. TechCrunch also points to smaller tweaks, such as a collapsible sidebar that lets you remove distractions while reading.

The Wikipedia update is rolling out now for English users. Wikimedia has already made the update available to 300 of the 318 active languages on the site. It’s already the default for Arabic and Greek readers. The team is still asking for feedback, so don’t be surprised if the site continues to evolve.

Wikimedia Foundation makes clear that it hasn’t removed any functionality, and that the changes led to real-world gains in testing with international volunteer groups. Users searched 30 percent more often, and scrolled 15 percent less. The redesign is meant to modernize Wikipedia by making it more accessible to a “next generation” of internet users who may not be very familiar with the web, according to the creators. You may not pay much notice to the changes if you’re a diehard reader, then, but those just coming online may appreciate the ease of use.

Update 1/19 11:50AM ET: Wikimedia tells Engadget it “ultimately” didn’t introduce a larger default font with today’s rollout, but that it still hopes to make this change in the future. We’ve updated our story accordingly.

Microsoft will lay off 10,000 employees as it cuts costs

The rumors of massive layoffs at Microsoft were true. In a publicly posted memo from CEO Satya Nadella, the company says it plans to cut 10,000 jobs through its third fiscal quarter, which ends in March. The move is meant to “align [Microsoft’s] cost structure” with demand and revenue, according to Nadella — that is, to slash expenses as sales shrink. Customers boosted their digital spending during the height of the pandemic, Nadella says, but they’re now scaling back. Numerous countries are either in the midst of recessions or expecting them, the executive adds.

Microsoft will continue to hire in “key strategic areas,” Nadella says. The company is taking on a $1.2 billion restructuring charge for the severance costs, consolidating building leases and unspecified changes to its hardware lineup. Nadella notes that US staff will get “above-market” severance pay as well as six months of continued healthcare coverage and stock awards.

As GeekWireexplains, this is the second-largest round of layoffs in Microsoft’s history. The company cut 18,000 jobs in 2014 as a newly-promoted Nadella scaled back Nokia’s hardware business. Microsoft hired aggressively during the pandemic, recruiting 40,000 workers in fiscal 2022. Some of those came through buyouts, such as speech tech heavyweight Nuance (6,500 employees) and AT&T’s former ad tech wing Xandr (1,500 people). Microsoft’s headcount is still larger than it was before the pandemic began, but this is still a sharp direction change.

The company isn’t alone in shedding jobs. Meta laid off more than 11,000 employees last fall as a bet on continued pandemic-era growth didn’t pay off. Amazon, meanwhile, expects to drop over 18,000 jobs located primarily in its retail and recruiting divisions. Salesforce recently axed 10 percent of employees. The tech industry is grappling with a tougher economic reality, and Microsoft isn’t immune to those problems.