Apple fined $8.5 million in France over targeted App Store ads

Apple is the second tech giant today to receive a fine over personalized ads. France’s National Commission on Informatics and Liberty (CNIL) has issued an €8 million (roughly $8.5 million) penalty over allegations Apple automatically collected identifying data from App Store visitors using iOS 14.6 without their permission, helping the company target ads. The firm was profiting from violations of data protection law, according to officials.

You could turn off the ad targeting, but it was enabled by default and couldn’t be disabled without wading through multiple menu levels, CNIL added. That reportedly made it impossible for users to give proper consent. Apple has since changed its practices, and CNIL said it conducted “several” checks between 2021 and 2022 to make sure the company was honoring data rules. France launched its investigation in March 2021.

We’ve asked Apple for comment. As 9to5Mac noted, Apple told Financial Times‘ Patrick McGee in a statement that it was “disappointed” with the decision and planned an appeal. The iPhone maker argued that its Search Ads system went “further” than any rival in offering choice over targeted ads, and didn’t track user cross third-party apps or websites.

Apple has had a contentious relationship with French regulators. In 2020, the country’s competition authority issued a fine equivalent to $1.2 billion (now down to $364.6 million) for alleged antitrust abuses in its distribution chain. The company also received a $27.3 million fine over iPhone performance throttling that same year. While the French government defended Apple’s iOS 14 anti-tracking measures against industry pressure, it’s evident that the brand remains under close scrutiny.

Twitter sued for not paying San Francisco office rent

California Property Trust, the owner of the building that houses Twitter headquarters, is suing Elon Musk’s social media company for failing to pay $136,250 in rent. According to Bloomberg (via The Verge), the firm notified Twitter on December 16th that it would default on its lease for the 30th floor of the Hartford Building, located at 650 California Street in San Francisco, if it didn’t pay its outstanding rent within five days. In a complaint filed this week with the San Francisco County Superior Court, California Property Trust said Twitter failed to comply with the order.

According to a December 13th New York Times report, Twitter had in recent weeks stopped paying rent on all of its global offices to save on costs. The company also faces a lawsuit for failing to pay $197,725 for charter flights Musk took during his first week at Twitter. Over that same time period, Musk has reportedly brought over “more than half a dozen” lawyers from SpaceX to bolster Twitter’s legal team.

Grubhub ordered to pay $3.5 million to settle Washington DC deceptive practices lawsuit

Grubhub has been ordered to pay $3.5 million to settle the lawsuit filed against the company by the District of Columbia over “deceptive trade practices.” Washington DC Attorney General Karl Racine has announced that his office has reached an agreement with the food delivery service “for charging customers hidden fees and using deceptive marketing techniques.” If you’ll recall, his office sued the company earlier this year, accusing it of charging hidden fees and misrepresenting Grubhub+ subscription’s offer of “unlimited free delivery,” since customers still have to pay a service fee.

The DC Attorney General’s office also accused the company of listing 1,000 restaurants in the area without their permission by using numbers that route to Grubhub workers or creating websites without the eateries’ consent. A previous TechCrunch report said the company had already ended those practices. Racine also said at the time that Grubhub ran a promotion called “Supper for Support” at the beginning of the pandemic and then “stuck restaurants with the bill” that cut into their profit margins.

Grubhub called the lawsuit frivolous at the time of its filing and said that the company was “disappointed [the AG’s office has] moved forward with [it] because [the service’s] practices have always complied with DC law, and in any event, many of the practices at issue have been discontinued.”

Under the terms of the settlement, Grubhub will pay affected customers in the DC area a total of $2.7 million. Their cut will be credited to their accounts, and it will be sent to them as a check if it remains unused within 90 days. In addition, the company has to pay $800,000 in civil penalties to the District of Columbia and has to clearly mark additional fees people have to pay with their order going forward.

NLRB says Tesla violated the law by telling employees not to talk about pay

The National Labor Relations Board has accused Tesla of violating labor law by prohibiting employees in Orlando, Florida from talking about workplace matters. According to Bloomberg, NLRB’s Tampa regional director filed a complaint against the automaker in September for breaking the law when it told employees not to discuss their pay with other people and not to talk about the termination of another employee. In addition, based on the filing the news organization obtained through a Freedom of Information Act request, Tesla management reportedly told employees “not to complain to higher level managers” about their working conditions. 

Tesla has had to face several complaints by the NLRB over the past years. In 2021, the agency found that the automaker had violated US labor laws by firing a union activist and threatening workers’ benefits. The NLRB ordered the company to rehire union activist Richard Ortiz and to remove all mentions of disciplinary action from his files. It also ordered Tesla chief Elon Musk to delete a tweet that the court had deemed a threat that employees would be giving up company-paid stock options if they join a union. The tweet in question is still live, and Tesla is appealing the NLRB’s ruling in court. 

An agency spokesperson told Bloomberg that a judge will hear the complaint filed by the Tampa regional director in February. As the publication notes, companies can still appeal the agency judges’ decision to NLRB members in Washington and then to federal court, so any corrective action may take years to happen.

Google will pay $9.5 million to settle Washington DC AG’s location-tracking lawsuit

Google has agreed to pay $9.5 million to settle a lawsuit brought by Washington DC Attorney General Karl Racine, who accused the company earlier this year of “deceiving users and invading their privacy.” Google has also agreed to change some of its practices, primarily concerning how it informs users about collecting, storing and using their location data.

“Google leads consumers to believe that consumers are in control of whether Google collects and retains information about their location and how that information is used,” the complaint, which Racine filed in January, read. “In reality, consumers who use Google products cannot prevent Google from collecting, storing and profiting from their location.”

Racine’s office also accused Google of employing “dark patterns,” which are design choices intended to deceive users into carrying out actions that don’t benefit them. Specifically, the AG’s office claimed that Google repeatedly prompted users to switch in location tracking in certain apps and informed them that certain features wouldn’t work properly if location tracking wasn’t on. Racine and his team found that location data wasn’t even needed for the app in question. They asserted that Google made it “impossible for users to opt out of having their location tracked.”

The $9.5 million payment is a paltry one for Google. Last quarter, it took parent company Alphabet under 20 minutes to make that much in revenue. The changes that the company will make to its practices as part of the settlement may have a bigger impact.

Folks who currently have certain location settings on will receive notifications telling them how they can disable each setting, delete the associated data and limit how long Google can keep that information. Users who set up a new Google account will be informed which location-related account settings are on by default and offered the chance to opt out.

Google will need to maintain a webpage that details its location data practices and policies. This will include ways for users to access their location settings and details about how each setting impacts Google’s collection, retention or use of location data.

Moreover, Google will be prevented from sharing a person’s precise location data with a third-party advertiser without the user’s explicit consent. The company will need to delete location data “that came from a device or from an IP address in web and app activity within 30 days” of obtaining the information

“Given the vast level of tracking and surveillance that technology companies can embed into their widely used products, it is only fair that consumers be informed of how important user data, including information about their every move, is gathered, tracked, and utilized by these companies,” Racine said in a statement. “Significantly, this resolution also provides users with the ability and choice to opt of being tracked, as well as restrict the manner in which user information may be shared with third parties.”

Engadget has contacted Google for comment.

Microsoft and Activision Blizzard file responses to the FTC’s antitrust lawsuit

Microsoft has filed a formal response to a Federal Trade Commission antitrust lawsuit that seeks to block it from buying Activision Blizzard for $68.7 billion. It pushed back against the agency’s claims that the takeover would harm competition in the g…

Meta settles Cambridge Analytica class-action lawsuit for $725 million

Fallout from Facebook’s Cambridge Analytica privacy scandal continues over four years after it was first exposed. Parent company Meta has agreed to pay $725 million to settle a long-running class-action lawsuit accusing Facebook of allowing Cambridge Analytica and other third parties to access users’ private information, Reuters reports. 

The settlement resolves user claims that Facebook violated federal and state laws by allowing the company’s preferred vendors and partners to harvest their personal data without consent. It’s reportedly the largest ever in a US data privacy class action and the most Meta has ever paid to resolve a class-action lawsuit. 

“This historic settlement will provide meaningful relief to the class in this complex and novel privacy case,” the lead lawyers for the plaintiffs said in a statement. 

Meta admitted no wrongdoing as part of the settlement, which is still subject to approval by a federal judge. “Over the last three years we revamped our approach to privacy and implemented a comprehensive privacy program,” Meta said in a statement, adding that the settlement “was in the best interest of our community and shareholders.” 

Cambridge Analytica, now defunct, worked for Ted Cruz and Donald Trump’s 2016 presidential campaigns. It accessed the personal data of up to 87 million people by an app (thisisyourdigitallife) and used the information gathered to target individuals with personally tailored messages. The scandal was exposed by The New York Times and The Guardian in 2018, thanks in large part to whistleblower Christopher Wylie.

In 2019, Facebook agreed to pay a $5 billion fine following a Federal Trade Commission investigation and $100 million to settle US Securities and Exchange Commission claims. It also paid £500,000 (about $644,000) in fines to the UK, a pittance compared to what it would have paid had the GDPR been in place when the scandal occurred. 

Facebook hasn’t put Cambridge Analytica behind it yet, either. The company is still fighting a lawsuit by the Washington DC attorney general, as well as a number of state attorneys general. 

European Commission tells Meta that Facebook Marketplace is unfair to rivals

Europe has hit Facebook owner Meta with a complaint that its Marketplace classified service is unfair to competitors. By tying its main social media site to Marketplace, it has a “substantial distribution advantage” over rivals, the EU Commission wrote in a press release. 

“With its Facebook social network, Meta reaches globally billions of monthly users and millions active advertisers,” EU Antitrust Commissioner said in a statement. “Our preliminary concern is that Meta ties its dominant social network Facebook to its online classified ad services called Facebook Marketplace. This means that users of Facebook automatically have access to Facebook Marketplace, whether they want it or not.”

In addition, the Commission found that Meta imposes imposes unfair trading conditions on competitors that advertise on Facebook or Instagram. That essentially allows it to use “ads-related data derived from competitors for the benefit of Facebook Marketplace,” it said. The practices, if confirmed, would infringe on EU rules that prohibit the abuse of a dominant market position. The EU has the power to impose a fine of up to 10 percent of Meta’s annual revenue and prohibit the behavior. 

In a statement, Meta’s head of EMEA competition said the “claims made by the European Commission are without foundation” and that the company “will continue to work with regulatory authorities to demonstrate that our product innovation is pro-consumer and pro-competitive.” 

Last year, the EU Commission launched an antitrust probe into Facebook’s classified advertising practices to determine if it broke competition rules by using advertiser data to its own benefit. The so-called Statement of Objects released today is a formal step in EU antitrust investigations, informing parties of complaints raised against them. Meta can now examine the documents, reply in writing and request an oral hearing to present their comments, according to the Commission. 

Huawei signs a patent cross-licensing agreement with its biggest Chinese rival

Before Trump-era sanctions made the company a non-player in the market, Huawei was briefly the world’s largest phone manufacturer, surpassing both Samsung and Apple in shipments. In a sign of how much it has fallen since then, Huawei announced this wee…