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The Supreme Court will hear its first big CFAA case

The Supreme Court will hear arguments on Monday in a case that could lead to sweeping changes to America’s controversial computer hacking laws — and affecting how millions use their computers and access online services.
The Computer Fraud and Abuse Act was signed into federal law in 1986 and predates the modern internet as we know it, but governs to this day what constitutes hacking — or “unauthorized” access to a computer or network. The controversial law was designed to prosecute hackers, but has been dubbed as the “worst law” in the technology law books by critics who say it’s outdated …

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US Fertility says patient data was stolen in a ransomware attack

U.S. Fertility, one of the largest networks of fertility clinics in the United States, has confirmed it was hit by a ransomware attack and that data was taken.
The company was formed in May as a partnership between Shady Grove Fertility, a fertility clinic with dozens of locations across the U.S. east coast, and Amulet Capital Partners, a private equity firm that invests largely in the healthcare space. As a joint venture, U.S. Fertility now claims 55 locations across the U.S., including California.
In a statement, U.S. Fertility said that the hackers “acquired a limited number …

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Recycling robotics company AMP Robotics could raise up to $70M

AMP Robotics, the recycling robotics technology developer backed by investors including Sequoia Capital and Sidewalk Infrastructure Partners, is close to closing on as much as $70 million in new financing, according to multiple sources with knowledge of the company’s plans.

The new financing speaks to AMP Robotics’ continued success in pilot projects and with new partnerships that are exponentially expanding the company’s deployments.

Earlier this month the company announced a new deal that represented its largest purchase order for its trash sorting and recycling robots.

That order, for 24 machine learning-enabled robotic recycling systems with the waste handling company Waste Connections, was a showcase for the efficacy of the company’s recycling technology.

That comes on the back of a pilot program earlier in the year with one Toronto apartment complex, where the complex’s tenants were able to opt into a program that would share recycling habits monitored by AMP Robotics with the building’s renters in an effort to improve their recycling behavior.

The potential benefits of AMP Robotic’s machine learning enabled robots are undeniable. The company’s technology can sort waste streams in ways that traditional systems never could and at a cost that’s far lower than most waste handling facilities.

As TechCrunch reported earlier the tech can tell the difference between high-density polyethylene and polyethylene terephthalate, low-density polyethylene, polypropylene and polystyrene. The robots can also sort for color, clarity, opacity and shapes like lids, tubs, clamshells and cups — the robots can even identify the brands on packaging.

AMP’s robots already have been deployed in North America, Asia and Europe, with recent installations in Spain and across the U.S. in California, Colorado, Florida, Minnesota, Michigan, New York, Texas, Virginia and Wisconsin.

At the beginning of the year, AMP Robotics  worked with its investor, Sidewalk Labs on a pilot program that provided residents of a single apartment building representing 250 units in Toronto with detailed information about their recycling habits. Sidewalk Labs is transporting the waste to a Canada Fibers material recovery facility where trash is sorted by both Canada Fibers employees and AMP Robotics.

Once the waste is categorized, sorted and recorded, Sidewalk communicates with residents of the building about how they’re doing in their recycling efforts.

It was only last November that the Denver-based AMP Robotics raised a $16 million round from Sequoia Capital and others to finance the early commercialization of its technology.

As TechCrunch reported at the time, recycling businesses used to be able to rely on China to buy up any waste stream (no matter the quality of the material). However, about two years ago, China decided it would no longer serve as the world’s garbage dump and put strict standards in place for the kinds of raw materials it would be willing to receive from other countries.

The result has been higher costs at recycling facilities, which actually are now required to sort their garbage more effectively. At the time, unemployment rates put the squeeze on labor availability at facilities where trash was sorted. Over the past year, the COVID-19 pandemic has put even more pressure on those recycling and waste handling facilities, despite their identification as “essential workers”.

Given the economic reality, recyclers are turning to AMP’s technology — a combination of computer vision, machine learning and robotic automation to improve efficiencies at their facilities.

And, the power of AMP’s technology to identify waste products in a stream has other benefits, according to chief executive Matanya Horowitz.

“We can identify… whether it’s a Coke or Pepsi can or a Starbucks cup,” Horowitz told TechCrunch last year. “So that people can help design their product for circularity… we’re building out our reporting capabilities and that, to them, is something that is of high interest.”

AMP Robotics declined to comment for this article.

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Watch SpaceX launch a satellite that will monitor the world’s oceans

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SpaceX is set to launch a Falcon 9 from Vandenberg Air Force Base in California on Saturday morning, with a target liftoff time of 9:17 AM PST (12:17 PM EST). This is the Sentinel-6 Michael Freilich Mission, which carries a satellite of the same name developed by the European Space Agency, NASA, and both U.S. and European meteorological monitoring bodies.

The Sentinel-6 is named for former NASA Earth Science Division Director Michael Freilich, who occupied the position between 2006 and 2019 and passed away in August. It’s one of two Sentinel-6-series satellites that will be launched for the program, with the Sentinel-6B set to join the Sentinel-6 Michael Freilich sometime in 2025.

SpaceX will be looking to recover the Falcon 9 first stage booster with a powered landing back on Earth at Landing Zone 4 at Vandenberg. This is the first SpaceX launch from Vandenberg since June of last year, though it has flown plenty of missions from both Cape Canaveral Air Force Station and Kennedy Space Center in Florida.

The webcast above will go live approximately 15 minutes prior to the liftoff time, so at around 9:02 AM PST (12:02 PM EST). Should this mission have to be canceled today, there’s a backup opportunity set for Sunday at 9:04 AM PST (12:04 PM PST).

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Sequoia-backed recycling robot maker AMP Robotics gets its largest purchase order

AMP Robotics, the manufacturer of robotic recycling systems, has received its largest purchase order from the publicly traded North American waste handling company, Waste Connections.

The order, for 24 machine learning enabled robotic recycling systems, will be used on container, fiber and residue lines across numerous materials recovery facilities, the company said.

The AMP technology can be used to recover plastics, cardboard, paper, cans, cartons and many other containers and packaging types reclaimed for raw material processing.

The tech can tell the difference between high-density polyethylene and polyethylene terephthalate, low-density polyethylene, polypropylene, and polystyrene. The robots can also sort for color, clarity, opacity and shapes like lids, tubs, clamshells, and cups — the robots can even identify the brands on packaging.

So far, AMP’s robots have been deployed in North America, Asia, and Europe with recent installations in Spain, and across the US in California, Colorado, Florida, Minnesota, Michigan, New York, Texas, Virginia and Wisconsin.

In January, before the pandemic began, AMP Robotics worked with its investor, Sidewalk Labs on a pilot program that would provide residents of a single apartment building representing 250 units in Toronto with detailed information about their recycling habits.

Working with the building and a waste hauler, Sidewalk Labs  would transport the waste to a Canada Fibers material recovery facility where trash will be sorted by both Canada Fibers employees and AMP Robotics. Once the waste is categorized, sorted, and recorded Sidewalk will communicate with residents of the building about how they’re doing in their recycling efforts.

Sidewalk says that the tips will be communicated through email, an online portal, and signage throughout the building every two weeks over a three-month period.

For residents, it was an opportunity to have a better handle on what they can and can’t recycle and Sidewalk Labs is betting that the information will help residents improve their habits. And for folks who don’t want their trash to be monitored and sorted, they could opt out of the program.

Recyclers like Waste Connections should welcome the commercialization of robots tackling industry problems. Their once-stable business has been turned on its head by trade wars and low unemployment. About two years ago, China decided it would no longer serve as the world’s garbage dump and put strict standards in place for the kinds of raw materials it would be willing to receive from other countries. The result has been higher costs at recycling facilities, which actually are now required to sort their garbage more effectively.

At the same time, low unemployment rates are putting the squeeze on labor availability at facilities where humans are basically required to hand-sort garbage into recyclable materials and trash.

AMP Robotics is backed by Sequoia Capital,  BV, Closed Loop Partners, Congruent Ventures  and Sidewalk Infrastructure Partners, a spin-out from Alphabet that invests in technologies and new infrastructure projects.

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California Tax Revolt Faces a Retreat, 40 Years Later

OAKLAND, Calif. — In 1978, a Los Angeles businessman named Howard Jarvis led an insurgent campaign to pass Proposition 13, a ballot measure that limited California property taxes and inspired a nationwide tax revolt. The law has been considered sacrosanct ever since, something California governors and legislators challenge at their peril.

Now, as a pandemic tears through local budgets, a well-financed campaign backed by teachers’ unions has mounted a serious challenge to a major portion of the law: its application to commercial property.

If voters approve the effort next week, they would give labor and progressive groups a striking victory in raising the low tax rates that longtime property owners enjoy. If it fails, the campaign will have spent tens of millions of dollars only to affirm that Proposition 13 is untouchable.

The new initiative, Proposition 15, would amend the state’s Constitution so that properties like offices and industrial parks would no longer be protected by Proposition 13. By creating a “split roll” system, in which residential property would continue to be shielded from tax increases but commercial property would not, backers hope to capitalize on Democratic energy to raise taxes on large corporations without alarming homeowners.

“We can’t afford to continue to give large corporations a tax break they don’t need when we desperately need to invest in infrastructure, first responders, public health and public education,” said Catherine Bracy, executive director of the TechEquity Collaborative, a nonprofit group that mobilizes tech workers on issues of economic inclusion.

Proposition 15 would raise $6.5 billion to $11.5 billion a year for public schools, community colleges and city and county governments, according to a nonpartisan state agency. The Yes campaign, called Schools and Communities First, is backed by a number of public employees unions and the Chan Zuckerberg Initiative, the philanthropic organization founded by Mark Zuckerberg, the Facebook chief executive, and his wife, Priscilla Chan.

The measure’s opponents, including a number of business associations and large property owners like the Blackstone Group, argue that the tax increase would hurt small businesses. They have also tried to frame the measure as one that, if successful, will soon reach for residential properties.

“They want to do this because they believe now is an opportunity to break up Proposition 13,” said Rex Hime, chief executive of the California Business Properties Association, a trade group for owners of offices, industrial parks and shopping centers. “They’re coming after homeowner protections next.”

The two sides have raised more than $60 million each for their campaigns. Support is also evenly split: A recent poll by the Public Policy Institute of California showed that Proposition 15 has split the electorate, garnering the support of 49 percent of likely voters, with 45 percent opposed and 6 percent undecided. It has won a number of prominent endorsements, including those of Gov. Gavin Newsom; Joseph R. Biden Jr., the Democratic presidential nominee; and his running mate, Senator Kamala Harris of California.

Proposition 13’s lock on California politics began with the bouts of hyperinflation that shredded household budgets through much of the 1970s. In addition to the rising cost of food, electricity and other staples, the value of housing — and by extension, property taxes — also soared. In California, residential property values rose 250 percent from 1970 to 1980, while household income remained flat.

As tax payments consumed a larger share of homeowners’ budgets, Mr. Jarvis, a retired businessman turned anti-tax gadfly, mounted a 1978 citizens’ initiative, eventually called Proposition 13, that would cut California property taxes and limit future tax increases to no more than 2 percent a year, unless the property was sold. It passed with just under two-thirds of the vote and has since endured various legal challenges. In 1992, the U.S. Supreme Court upheld the legality of Proposition 13 but called it “distasteful and unwise.”

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Credit…Associated Press
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Proposition 13: Mad as Hell

In 1978, California voters passed Proposition 13, which lowered property taxes for millions of the state’s homeowners. Decades later, what has it meant?

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In 1978, California voters passed Proposition 13, which lowered property taxes for millions of the state’s homeowners. Decades later, what has it meant?

Mr. Jarvis, who died in 1986, framed his campaign as a way to make the tax system more equal, but Proposition 13’s legacy has been the opposite. Because property values are reassessed for tax purposes only after a building is sold, the law has created a wildly disparate system in which new buyers pay vastly higher taxes than longtime owners.

It is not uncommon for neighbors to pay double or triple the taxes of a similar home on the same block. A recent analysis of property taxes across the Bay Area is rife with eye-popping comparisons, like a $9 million home in an exclusive neighborhood of San Francisco that has lower property taxes than a $331,000 home near an oil refinery across the bay in Richmond.

When Proposition 13 passed, commercial property taxes were almost an afterthought. But since skyscrapers and shopping malls do not change hands as often as homes do, the law has shifted the property tax burden from corporations to homeowners. In 1975, a little under half the property taxes in Los Angeles County were paid by commercial properties. By 2017, commercial properties accounted for just over one-quarter of the property tax roll.

“It boggles the mind how ingrained this thing is in our culture, given how regressive it is,” said Christopher Thornberg, founding partner of Beacon Economics, a consulting firm in Los Angeles.

When backers started collecting signatures to qualify Proposition 15 for the ballot last year, the measure was framed as a way to make the state’s tax collections broader and more equitable by raising rates on commercial property holders. Now, as the state, like the nation, begins a difficult recovery from the coronavirus recession, it has become as much about backstopping essential services when budgets are under stress.

In addition to keeping homeowners under the 1978 limits, the new measure would not affect apartment buildings and agricultural land. It would be phased in over several years, and it has exemptions for business owners with $3 million or less in holdings in California. Because of the exemptions, various studies have shown that Proposition 15’s tax increases would sidestep most small businesses and instead fall on corporations that control huge parcels of real estate, like Walt Disney’s studio lot in Burbank, or 555 California, a San Francisco office tower owned by a partnership that includes Vornado Realty Trust and President Trump.

But with the economy still hampered by Covid-19, and many stores and restaurants on the brink of extinction, the opposition message has resonated with people like Barbara Stelzriede. Ms. Stelzriede is the general manager of George & Walt’s, a sports bar in the Rockridge neighborhood of Oakland, and a fourth-generation member of the family that has owned the bar’s building and surrounding property since 1945.

On a recent afternoon, in addition to neon beer lights and a 21-and-over sign, the bar’s window was emblazoned with a bright yellow sign that had “Vote NO on 15. It will put small corporations out of business!!!” in Ms. Stelzriede’s handwriting. Sitting on a bar stool, among a mess of hammers, drills and extension cords that were being used to install a plexiglass barrier around the bar and plastic curtains around the tables, she discussed her anxiety about the bar’s pending reopening, what business would be like afterward, fears that the Proposition 15 money wouldn’t go to schools as proponents have advertised, and suspicion that the measure would open the door to higher taxes on apartment buildings and houses.

“There couldn’t be a worse time in the world right now for them to be doing this,” she said.

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Credit…Jim Wilson/The New York Times
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Credit…Jim Wilson/The New York Times

Some of her neighbors disagree. Last week, someone taped the window with a passionate response to Ms. Stelzriede’s sign. “MILLIONS upon MILLIONS of school kids suffered for more than 40 YEARS,” the letter said. “Disneyland + other MEGA CORPORATIONS are still assessed at their same property values from decades ago. PROP 15 = FAIR + JUST! It’s TIME.”

But it’s not just businesses that own their buildings that are worried. Across the state, landlords construct commercial leases so that tenants are responsible for a portion of the property taxes (doing this increases the value of the building in the event the property is sold and the taxes are reassessed).

“Virtually no landlords give Proposition 13 protection,” said Gerald Porter, founding principal of Cresa, a commercial real estate company in Los Angeles.

Clauses like that have Laurie Thomas, the owner of two small restaurants — Rose’s Café and Terzo, both in San Francisco — worried that she and other restaurant owners will be hit by higher taxes if Proposition 15 passes. Today, as part of her lease, Ms. Thomas is responsible for about $6,000 a year in property taxes at one of her locations. She estimates that would jump to about $40,000 if the building was assessed at market value. “Our lease clearly says that I am on the hook for 50 percent of the property taxes — it’s a direct pass-through,” she said.

Mr. Thornberg, the economist, doubts that this can happen on a large scale. Much more than property taxes, he said, lease rates reflect market fundamentals like size, location and a building’s particular amenities.

In a recent study for the Silicon Valley Foundation, Mr. Thornberg’s firm tried to gauge the impact of Proposition 15 on leases by analyzing commercial rents in similar buildings with different tax bills. “The owners of these buildings who are paying well below market tax rates are not passing the savings to their tenants,” he said. “In other words, they are charging what the market will bear and are unlikely to be able to pass along additional costs.”

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Fragomen, a law firm used by Google, confirms data breach

Immigration law firm Fragomen, Del Rey, Bernsen & Loewy has confirmed a data breach involving the personal information of current and former Google employees.

The New York-based law firm provides companies with employment verification screening services to determine if employees are eligible and authorized to work in the United States.

Every company operating in the United States is required to maintain a Form I-9 file on every employee to ensure that they are legally allowed to work and not subject to more restrictive immigration rules. But Form I-9 files can contain a ton of sensitive information, including government documents like passports, ID cards and driver’s licenses, and other personally identifiable data, making them a target for hackers and identity thieves.

But the law firm said it discovered last month that an unauthorized third-party accessed a file containing personal information on a “limited number” of current and former Google employees.

In a notice with the California attorney general’s office, Fragomen did not say what kind of data was accessed or how many Google employees were affected. Companies with more than 500 California residents affected by a breach are required to submit a notice with the state’s attorney general’s office.

Michael McNamara, a spokesperson for Fragomen, declined to say how many Google employees were affected by the breach.

A spokesperson for Google did not respond to a request for comment.

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It’s a Ballot Fight for Survival for Gig Companies Like Uber

OAKLAND, Calif. — By late August, the urgency was becoming clear. Top executives of Uber, Lyft and the delivery service DoorDash met to discuss a California ballot measure that would exempt them from a new state labor law and save their companies hundreds of millions of dollars.

The survival of their businesses was on the ballot.

Days later, political strategists responded to the executives’ concerns by telling the companies, which had already pledged $90 million to back the measure, that they needed to spend a lot more if they wanted to win, said three people familiar with the discussions, who were not allowed to talk about them publicly.

The fight over the ballot measure, Proposition 22, has become the most expensive in the state’s history since then, with its backers contributing nearly $200 million and 10 days still to go until the Nov. 3 election. Along the way, the companies have repeatedly been accused of heavy-handed tactics; a lawsuit filed on Thursday claims Uber is coercing the support of its drivers.

Despite the big spending and a barrage of television advertising, only 39 percent of likely voters said they supported Uber and Lyft in a poll last month by the University of California, Berkeley, while 36 percent opposed their proposal and others were undecided. People close to the campaign said they would want to see close to 60 percent approval in polling before they could breathe a sigh of relief.

The ballot measure, which is also being backed by Instacart and a delivery company that Uber is acquiring, Postmates, could be a harbinger for gig companies in the rest of the country.

Prop 22 would exempt the companies from complying with a law that went into effect at the beginning of the year, while offering limited benefits to drivers. The law is intended to force them to treat gig workers as employees, but Uber and its peers have resisted, fearing that the cost of benefits like unemployment insurance and health care could tip them into a downward financial spiral.

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Credit…Tag Christof for The New York Times

Though Uber and Lyft, for example, are publicly traded companies with a combined worth of $70.5 billion, they have never been profitable. They lose billions of dollars each year, and the pandemic has made turning a profit even more difficult. DoorDash, which has filed to go public, has also struggled. Analysts estimate that complying with California’s gig-worker law could cost Uber, which lost $1.8 billion in its most recent quarter, as much as $500 million a year.

Uber said it planned to cut off work for the approximately 158,000 California drivers who were active on the platform each quarter if its ballot measure failed. It would employ roughly 51,000 remaining drivers, it said, and raise fares to meet the higher business costs.

The ballot fight gained additional urgency Thursday evening when the California First District Court of Appeal ruled that Uber and Lyft must treat their California drivers as employees under the new labor law. The state attorney general and the city attorneys of San Francisco, Los Angeles and San Diego had sued the companies in May to enforce the law.

“If Prop 22 does not win, we will do our best to adjust,” said Dara Khosrowshahi, Uber’s chief executive, in a Wall Street Journal interview this week. “Where in California we can operate is a question mark, and the size and scale of the business will be substantially reduced.”

In past dust-ups with local regulators, Uber rallied its passengers for support. The pandemic has made that difficult, so it has urged its tech employees to get involved and used its app to reach out to drivers for support.

The Yes on 22 campaign also started an effort to organize drivers, a move copied from the labor groups that have long tried to organize drivers to fight for better working conditions. And it has forged relationships with high-profile advocacy groups, like Mothers Against Drunk Driving and the California chapter of the N.A.A.C.P.

“Drivers want independence plus benefits by a four-to-one margin, and we’re going to fight for them,” said Julie Wood, a spokeswoman for Lyft. “We believe California voters are on the side of drivers, too.”

A spokesman for DoorDash, Taylor Bennett, said, “Our support for Prop 22 is part of our commitment to protecting the economic opportunity that tens of thousands of Californians value and the access to delivery that so many restaurants rely on, especially at such a critical time.”

A spokeswoman for Instacart declined to comment. Postmates did not respond to a request for comment.

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In an effort to gain support, the companies have bombarded riders and drivers with push notifications, campaign ads that appear in their apps and emails promoting Prop 22. Before logging on to start work, Uber drivers have been presented with a slide show of warnings about how their lives could change if the proposition fails.

“A no vote would mean far fewer jobs,” one of the slides on the Uber app warned. “That’s why we’re fighting so hard to win.”

In the lawsuit filed against Uber on Thursday, drivers claim that the messages violated a state law that forbids employers to coerce their employees to participate in political activity.

“I can’t rule out that employers have engaged in coercive tactics like this in the past, but I have never heard of an employer engaging in this sort of barrage of coercive communications on such a broad level, ever,” said one of the attorneys for the drivers, David Lowe, a partner at Rudy, Exelrod, Zieff & Lowe. “It is such an extraordinary thing, from my perspective, for Uber to exploit this captive audience of workers.” Mr. Lowe said he opposed Prop 22.

Matt Kallman, an Uber spokesman, said, “This is an absurd lawsuit, without merit, filed solely for press attention and without regard for the facts.” He added, “It can’t distract from the truth: that the vast majority of drivers support Prop 22.”

In early October, the Prop 22 campaign was denounced by Senator Bernie Sanders after a fake progressive group calling itself Feel the Bern endorsed the proposition in a campaign flier that implied Uber had the backing of progressive leaders. The mailers were, in fact, sent by a firm that creates political mailers representing different views.

“The Prop 22 campaign is working hard to reach voters across the state and the political spectrum to ensure they know that drivers overwhelmingly support Prop 22,” said Geoff Vetter, a spokesman for the Yes on 22 campaign, which is funded by Uber, Lyft, DoorDash and other gig economy companies.

Questions have also been raised about the N.A.A.C.P. endorsement. A political consulting firm run by Alice Huffman, the leader of the California N.A.A.C.P., has received $85,000 from the gig companies’ campaign, public records show. The payment was reported earlier by the news site CalMatters.

Mr. Vetter said the payments were for “outreach.” The N.A.A.C.P. did not respond to a request for comment.

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Credit…Jim Wilson/The New York Times

Uber held an all-hands meeting this month for employees to meet drivers who support the proposition, and sent several emails encouraging staff to lobby friends and family.

Although the internal messages were upbeat, the policy staff raised concerns with campaign consultants during the meetings in late August and early September, the people familiar with those meetings said. Among their worries: that the ballot language was unfavorable to the companies, and that people were voting earlier than usual because of the pandemic, meaning advertising would need to be rapid and aggressive.

“We look at the data every day, and our metrics show a tight race,” Justin Kintz, Uber’s head of public policy, said in an early October email to Uber employees, obtained by The New York Times. “At the same time, with continued strong execution against our plan, we’re confident we can win.”

While the email noted that campaigning was optional, Mr. Kintz encouraged employees to participate in texting banks to contact voters and to promote the campaign in conversations with friends.

“The big reason that you’re seeing so much spending is because of the high stakes in this election,” said Mr. Vetter, the spokesman for the campaign. “Hundreds of thousands of jobs are on the line. These are services that millions of Californians rely on.”

The opposition campaign, which is funded by labor unions, has raised about $15 million. Supporters of the No on 22 campaign have argued that voters should reject the push by tech companies, and that the measure would harm workers already at a disadvantage during the pandemic.

“Proposition 22 will make racial inequality worse in California at the worst possible time,” said Representative Barbara Lee, a California Democrat. “You have very clearly crossed the line when you try to claim the equity mantle for a campaign that has always been about allowing multibillion-dollar app companies to write their own law so that they can keep exploiting the labor of drivers, eight in 10 of whom are people of color.”

No matter the outcome of the vote, the gig companies and their opponents are likely to take their campaigns to Washington. Massachusetts has filed a lawsuit similar to the one that the California court decided on Thursday evening, and Uber hopes to avoid continued state-by-state battles by pressing for federal legislation.

Erin Griffith and Noam Scheiber contributed reporting.

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Judge denies Epic’s request to force Apple to bring Fortnite back to App Store

The California judge in the legal skirmish between Epic Games and Apple has denied Epic’s request that Apple be forced to reinstate Fortnite in the App Store, but did affirm that Apple cannot take action against the Epic Games developer accounts used to bring Unreal Engine developers access to Apple devices.

The court’s decision re-affirmed its proclamation from late August in a court hearing where Epic Games’ lawyers sought to obtain a temporary restraining order after Apple informed the Fortnite developer that they would be kicking the company off the App Store and terminating all of their company accounts.

The judge noted that “[p]reliminary injunctive relief is an extraordinary measure rarely granted,” and detailed that they were granting in part and denying in part Epic’s request, noting that “Epic Games bears the burden in asking for such extraordinary relief.”

From the filing:

Epic Games has strong arguments regarding Apple’s exclusive distribution through the iOS App Store, and the in-app purchase (“IAP”) system through which Apple takes 30% of certain IAP payments. However, given the limited record, Epic Games has not sufficiently addressed Apple’s counter arguments. The equities, addressed in the temporary restraining order, remain the same.

This confirms that Fortnite will not return to the App Store before the trial begins; a court filing this week signaled that the two companies will go to trial on May 3, 2021.

Both sides aimed to take their win and ignore their loss in the mixed decision.

“Epic Games is grateful that Apple will continue to be barred from retaliating against Unreal Engine and our game development customers as the litigation continues. We will continue to develop for iOS and Mac under the court’s protection, and we will pursue all avenues to end Apple’s anti-competitive behavior,” an Epic Games spokesperson said in a statement.

“Our customers depend on the App Store being a safe and trusted place where all developers follow the same set of rules,” an Apple spokesperson told TechCrunch in an emailed statement. “We’re grateful the court recognized that Epic’s actions were not in the best interests of its own customers and that any problems they may have encountered were of their own making when they breached their agreement. For twelve years, the App Store has been an economic miracle, creating transformative business opportunities for developers large and small. We look forward to sharing this legacy of innovation and dynamism with the court next year.”

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U.S. Unemployment Claims Remained Elevated Last Week

Applications for jobless benefits remained high last week, even as the collapse of stimulus talks in Washington raised fears of a new wave of layoffs.

Unemployment filings have fallen swiftly from their peak of more than six million last spring. But that progress has recently stalled at a level far higher than the worst weeks of past recessions. That pattern continued last week, the Labor Department said Thursday: More than 800,000 Americans filed new applications for state benefits, before adjusting for seasonal variations, roughly in line with where the total has been since early August.

“The level of claims is still staggeringly high,” said Daniel Zhao, senior economist at the career site Glassdoor. “We’re seeing evidence that the recovery is slowing down, whether it’s in slowing payroll gains or in the sluggish improvement in jobless claims.”

That slowdown comes as trillions of dollars in government aid to households and businesses has dried up. Prospects for a new stimulus package, already dubious in a divided Washington, appeared to fall apart this week when President Trump said he was pulling out of negotiations. Economists across the ideological spectrum warn that the loss of federal help will lead to more layoffs and business failures, and more pain for families.

The continued high level of jobless claims, combined with large monthly job gains, highlights the remarkable level of churn still roiling the U.S. labor market. Companies are continuing to rehire workers as they reopen, even as other companies cut jobs in response to still-depressed demand for goods and services. The result is a job market that is being pulled in two directions at once — and economic data that can appear to tell contradictory stories.

Adding to the challenge for analysts and forecasters, the pandemic has thrown the data itself into disarray. For the second week in a row, the jobless claims data carried a Golden-State-size asterisk: California last month announced that it would temporarily stop accepting new unemployment applications while it addressed a huge processing backlog and installed procedures to weed out fraud.

In the absence of up-to-date data, the Labor Department is assuming California’s claim number was unchanged from its pre-shutdown figure of more than 225,000 applications, or more than a quarter of the national total. The state began accepting new filings this week, and is expected to resume reporting data in time for next week’s report.

While the lack of data from California makes week-to-week comparisons difficult, the bigger picture is clear: The economic recovery is losing momentum, even as millions of Americans remain out of work.

Monthly jobs data released last week showed that job growth slowed sharply in September, and that last spring’s temporary furloughs are increasingly turning into permanent job losses. Major corporations like Disney and Allstate have announced thousands of new job cuts. And with winter approaching, restaurants and other businesses that were able to shift operations outdoors during warmer weather could be forced to pull back anew.

Separate data from the Census Bureau on Wednesday showed that 8.3 million Americans reported being behind on rent in mid-September, and 3.8 million reported that they were likely to be evicted in the next two months. Both figures have changed little since August.

“It seems increasingly unlikely that we’ll have a deal before the election, and bills are due now,” Mr. Zhao said. “Every week that passes puts extra pressure on workers’ households and small businesses, so any delay in the stimulus is going to have a meaningful impact on Americans.”

The situation is particularly dire for people who lost their jobs early in the pandemic, many of whom are now nearing the end of their unemployment benefits.

Last week was the 29th week since mass layoffs began in March. In most states, regular unemployment benefits last just 26 weeks, meaning that many people have already exhausted their benefits.

In March, Congress created a program funded by the federal government for people whose state benefits have expired. The number of recipients under that program, Pandemic Emergency Unemployment Compensation, swelled to nearly two million in mid-September, up from 1.4 million a month earlier.

The program adds only 13 weeks of additional benefits, however, so people who lost their jobs in March will receive those benefits only until mid-December. And the entire program will expire at the end of the year if Congress doesn’t extend it.

A separate program, which existed before the pandemic, offers an additional 13 to 20 weeks of benefits, depending on the state. But the benefits are based on state economic conditions, and the rapid decline in the unemployment rate means that workers in several states, including Idaho, Wyoming and Utah, would no longer qualify for it. Missouri will join their ranks next week.

Another emergency program, Pandemic Unemployment Assistance, also expires at the end of the year. That program covers freelancers, self-employed workers, part-timers and others who don’t qualify for benefits under the regular unemployment system. More than 460,000 people filed new applications under the program last week, and millions are receiving benefits in total.

The net result is that potentially millions of workers could see their benefits expire this winter. Epidemiologists warn that cases of the coronavirus are likely to rise as temperatures drop, and winter weather could reduce job opportunities.

“People are going to have their backs against the wall, and it’s pretty much the worst time of the year for the program to end,” said AnnElizabeth Konkel, an economist at the employment site Indeed.