Hello weekly free readers!
The Department of Justice has obliged to give you a juicy piece of news this week. I'll break down the details on the DoJ's case against Apple and why I'm not upset with this one.
I also have a bit on the Neuralink implant! My take on Neuralink is that it's a perfectly competent Brain-computer-interface, but not leading the way yet. See below for more details.
And as always huge thanks to everybody who has preordered Synced at tomsnbewbook.com. If you'd like to have my kind of analysis within arm's reach on your bookshelf, go preorder.
Thanks y'all!
Tom
Big Story
"Apple's Cook opens new store in Shanghai to large crowds as China sales fall | Reuters"
"U.S. Sues Apple; DOJ Antitrust Lawsuit Alleges Illegal Monopoly - WSJ"
"The US Department of Justice is suing Apple — read the full lawsuit here - The Verge"
"Apple Responds to Being Sued by U.S. Department of Justice - MacRumors"
"Apple Faces Legal Protest From Meta, Microsoft, X, Spotify and Match - WSJ"
"Epic Games to Charge 12% Fee for App Sales From Alternative iPhone Store - MacRumors"
"Tim Cook praises China as a production hub, amid work elsewhere"
It started as a good day for Apple. CEO Tim Cook appeared at the opening of its second-largest flagship Apple Store in Shanghai. Crowds queued overnight showing that even in the falling smartphone market there, Apple is still popular. The ultra-nationalist Global Times reported favorably on Apple for once quoting Tim Cooks praise of Chinese factories, "with very advanced manufacturing capabilities and well-trained workers.” Apple even announced a new research lab would come to the country. It was all smiles in Shanghai.
Clouds loomed in Europe though. It was just a drop of annoyance I'm sure, that Epic announced its third-party iOS App Store terms. It will collect nothing for the first six months then 12 percent after that. There would be no fee for apps that use their own payment system for in-app purchases. In addition to the 12 percent, any app that distributes more than 1 million downloads will also have to pay Apple's 50 cent per download core technology fee. To refresh your memory, that applies to any app that is distributed entirely outside the Apple App Store. If the app is also distributed in the App Store, then Apple will collect a 10-17 percent commission on all revenue in addition to the core technology fee. Of course, all of this is EU only. Outside the EU you can't distribute outside the App Store and the cut is still 15-30 percent.
Speaking of rules, Apple's day got worse in the US. Meta, Microsoft, X, Spotify and Match Group filed a petition objecting to Apple's app store policies. Epic already filed such a petition. The petitions ask US District Judge Yvonne Gonzalez Rogers to review Apple's compliance with her order that Apple allow developers to include a link or button to direct them to payments outside the App Store. Apple adjusted its policy to allow one external link and limits what can be said in the link's text. And Apple will collect a 27% commission on payments originating from that link. Apple says the restrictions are meant to protect users. It will be up to Judge Rogers to decide if Apple has met the requirements of her order.
But let's get other the big news. The US Department of Justice and 17 states filed a lawsuit in New Jersey federal court against Apple Thursday, alleging that Apple's smartphone policies are an abuse of its market position and violate antitrust law. The complaints say Apple's policies prevent competitors from offering innovative services in spaces like digital wallets, limits the functionality of competing hardware and makes it unnecessarily difficult for consumers to switch to another platform like Android.
- Apple does not allow cloud mobile game services like Microsoft Game Pass as apps in the app store.
- Does not support the full standard for text messaging, such as RCS. (Which Apple says is coming) Doe into allow competing messaging apps to carry SMS
- Restricts mini programs in super apps. The filing quotes an unnamed Apple manager saying that letting apps to become “the main gateway where people play games, book a car, make payments, etc.” would “let the barbarians in at the gate.”
- Does not allow alternate apps to access tap-to-pay which must go through the Apple Wallet Apple Pay system.
- Restricts compatibility of competing smart watches, not allowing things like notifications or messages
The suit is going to face the same challenge that Epic did. Proving that iOS is a market that Apple is dominating, and not a private platform that Apple owns. This is a well-written case and contemplates all that and at first glance appears to make a better argument. The lawyers clearly paid attention to the Epic case and tried to tighten up. It also benefits from broadening out from Epic's narrow case about the App Store. The idea of iOS as a market that can be dominated is a little easier to argue than just the App Store. Especially since moist OSs allow third-party apps and app stores. Apple will have to fall back on consumer protection arguments, which are compelling and may be enough.
I like his case in a way that I don't like most antitrust cases which seem to penalize a company for being successful and usually have remedies that come so late that the market has already moved on. Look at Microsoft's dominance in Windows for example. The difference here is that Apple isn't accused of domination the phone OS market. It;'s accused of not letting people into its OS. Fundamentally I think it's Apple's right to lock up its OS since you can choose Android. And Android has a strong market share. That will be a compelling defense for Apple. But I also think it's against the principle of how this stuff should work to stop consumers from being able to use the device the way they wish and install third party software and pay directly to software makers. Basically, I feel like Apple should let iOS work like MacOS. Build a high wall to keep most user inside the tent but let those of us who are OK with the risks, pre holes in the wall if we wish.
Is it antitrust not to do that? We're about to find out. In like two years or so, since these things always take forever to work their way through the courts.
Other Stories
"Neuralink: Has Elon Musk made a breakthrough in brain implant technology? | New Scientist"
"Neuralink video shows patient playing chess using brain implant"
"Elon Musk’s Neuralink Shows First Patient Using Its Brain Implant - WSJ"
"Neuralink Livestreams Paralyzed Patient Playing Video Games With His Mind"
Neuroscience startup Neuralink live-streamed an interview Wednesday with 29-year-old Noland Arbaugh, who has been unable to move his arms or legs since an accident eight years ago dislocated his fourth and fifth vertebrae. He was the first person to get Neuralink's brain-computer interface implanted this past January. On the stream, he demonstrated himself controlling a cursor by thinking, to play chess and the game Civilization. Significantly, he was able to move the cursor while also talking. Arbaugh says the device can be used for up to 8 hours between charges. The battery is charged through the skin by wireless inductance and communicates with a smartphone for processing. Neuralink uses 1024 electrodes across 64 threads to detect brain activity. Arbaugh says he wears released from the hospital a day after the surgery.
Neuralink has not published much information publicly so it's hard for other scientists in the field to evaluate how different it is from the many similar brain-computer interfaces out there. What has been demonstrated appears to replicate past research. For example, Stanford University scientists have used two small sensors in the brain to convert thoughts about writing words into text and published full details. A company called Synchron has implanted its BCI in a patient before with a less invasive method than Neuralink's though possibly with less data capture.
"Microsoft debuts major Surface overhauls that regular people can’t buy | Ars Technica"
"Microsoft’s new Adaptive accessibility accessories include an Atari-style joystick | TechCrunch"
"Microsoft’s first AI PCs are the Surface Pro 10 and Surface Laptop 6 for businesses - The Verge"
Microsoft announced upgraded Surface Pro 10 and the 13.5- and 15-inch Surface Laptop 6 models. These are only being sold in the enterprise for now, though Microsoft has an event scheduled for May 20th to announce more Surface models for consumers, so we'll likely see versions of these then. The scuttlebutt is those will run on Qualcomm's Snapdragon X chips, while these announced today run on Intel's Meteor Lake Core Ultra processors with integrated Arc GPUS which include a Neural Processing Unit for running AI applications. With the new more efficient chips these Surface models have longer battery life than previous models. Oh, and they also have the Copilot key
Surface Pro 10 should last 19 hours with "typical device usage," up from 15.5 hours from the Surface Pro 9. The 13.5 and 15-inch Surface Laptop 6 models get 18.5 and 19 hours of battery life, respectively, up from 18 and 17 hours for the Surface Laptop 5. Both models are a little bit heavier than their predecessors by a half pound or so. The webcams in the 10 has been upgraded to an ultra-wide 1440p. I you're wondering what makes them enterprise, they both have hardware Trusted Platform Modules instead of firmware ones, and the 10 has an NFC reader for use with hardware security keys. Company can preorder in select markets starting now for shipping April 9. The Verge says they start at $1,199 but ask your Microsoft corporate sales rep for the exact prices.
Microsoft also updated its Adaptive line of accessible peripherals. The Adaptive Mouse is back with thumb support and custom tails printed by Shapeways. A new Dual-Button is available for the Adaptive Hub as is the Adaptive Joystick Button which looks most like an Atari controller. And there's a Surface Pro Keyboard with brighter backlighting, bolder text, and the Copilot key.
"Reddit prices IPO at $34 per share, valuing company at $6.5 billion"
For the first time since before Covid, we have a company that loosely qualifies as social media issuing stock. Pinterest did it in 2019. Now Reddit has conducted its IPO, listing at $34 a share. That puts the company value at $6.5 billion and is priced at the top of the expected range, indicating lots of interest. Though it's under its last $10 billion valuation in 2021. If you want to see how it's doing, look for the ticker symbol RDDT.
"Senate plots next moves on TikTok"
"Critics of the TikTok Bill Are Missing the Point - The Atlantic"
The Senate heard a classified briefing on the risks of TikTok that are being used to justify a bill that would order Bytedance to sell the US part of the business or face a prohibition against its distribution there. After the briefing, Senators indicated they may schedule a public hearing. Senate Majority Leader Schumer has not committed to a floor vote. That's a slower, and more normal pace for a bill than what happened in the House where it moved swiftly to an overwhelming passage. The Senate must also pass the bill before it can be sent to the president to sign into law.
Read the excellent Axios summary of this but the short version is the major Senate voices are speaking cautiously now. They are talking about taking it through committee which means going slow. They're also talking about "getting it right" which means changes to the House version. Justin Robert Young knows better than I do, but if you ask me, it sounds like it means the Senate is keeping its options open and seeing which way the wind blows. It does not sound tile the security briefing opened their eyes to an imminent threat.
Meanwhile the Atlantic is coming out against TikTok with Zephyr Teachout makes the argument that controlling TikTok's ownership is similar to prohibiting foreign owmnership of newspapers and TV stations.
"Canada Walks Back Ban of Flipper Zero, Targets 'Illegitimate' Use Cases | PCMag"
Wednesday, the Innovation, Science and Economic Development Canada clarified what had been interpreted as a ban of the Flipper Zero security penetration tool. The agency said it only intends to ban the "illegitimate use of wireless devices used during car thefts.” The makers of Flipper Zero had launched a petition to counteract the ban. Flipper says there is no evidence the device has ever been used for car thefts, though it can detect and copy the wireless codes from key fobs. Those codes rotate regularly though.
"DoorDash begins piloting drone deliveries in the US | TechCrunch"
DoorDash is expanding its partnership with Alphabet's Wing to offer drone delivery of food. Select users in Christiansburg, Virginia will be able to order certain menu items from Wendy's. So maybe I used the word expand a little loosely. DoorDash offers drone delivery from more than 60- merchants in Australia, where it has been offering a test of Wing's drone delivery since 2022. So, it will probably expand in Virginia too. Fort not though, you need to be near 2355 N. Franklin Street in Christiansburg. Anybody around there? If you are, and you have a two-meter diameter clearing on your property, you can get some French Toast sticks in 30 minutes or less.
As for Wing it has been very slowly expanding. It made 350,000 deliveries across three countries.
Interesting Reads
"Samsung's cloud-based Gaming Hub is coming to Galaxy phones"
"BBC develops AI plans and talks to Big Tech over archives access"
"Carvana makes U-turn away from financial abyss"
"X launches top-up packs for its developer API | TechCrunch"
"India 'screwed up': How the U.S. lobbied New Delhi to reverse laptop rules | Reuters"
"YouTube TV brings Multiview to iPhone and iPad; Android next"
"Hackers Found a Way to Open Any of 3 Million Hotel Keycard Locks in Seconds | WIRED"
"Nvidia announces “moonshot” to create embodied human-level AI in robot form | Ars Technica"
"Screen time: US teens' and parents' experiences, approaches | Pew Research Center"
"Prime Video can’t compete with Netflix and Showmax in Africa - Rest of World"
"Why New York City is testing battery swapping for e-bikes | MIT Technology Review"
"First transplant of gene-edited pig kidney into a living human : Shots - Health News : NPR”
"Qualcomm Snapdragon 7+ Gen 3 brings on-device AI and Wi-Fi 7"
"Claim of iPad announcement on March 26 'not true' – Gurman - 9to5Mac"
"Beeper couldn’t bring iMessage to Android — but it can still make a great chat app - The Verge"