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Microsoft Takes a Shot at Apple, Says App Stores Should Be More Competitive

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  • Microsoft released a set of 10 app store principles designed to ensure fairness and healthy competition in Windows 10 and the Microsoft Store.
  • While these principles won’t require much change for the company, they are significant because they are aimed at sending a message to Apple, which has been repeatedly criticized for anti-competitive and unfair practices in its app store.
  • This makes Microsoft the largest company to go after the Apple app store, as it joins the likes of Spotify and Epic Games, which are already members of the Coalition For App Fairness. Microsoft’s 10 principles are very similar to principles that the coalition has laid out. 
  • Apple has defended itself, claiming that its app store is fair and competitive, and adding that it created an open marketplace for app developers. 

Microsoft’s New Principles

In an apparent shot at Apple, Microsoft released a set of principles for its app store on Thursday, calling for app stores everywhere to be more competitive and fair. 

“For software developers, app stores have become a critical gateway to some of the world’s most popular digital platforms,” Rima Alaily, Microsoft’s Vice President and Deputy General Counsel wrote in a blog post. “We and others have raised questions and, at times, expressed concerns about app stores on other digital platforms. However, we recognize that we should practice what we preach.”

The post went on to list 10 principles aimed to promote choice, fairness, and innovation on Windows 10 and in the Microsoft store. Those principles include Microsoft not blocking competing app stores on Windows, not blocking an app based on a developer’s business model or how it delivers content, not blocking apps based on the payment system a developer uses for in-app purchases, and giving developers access to information about the interoperability interfaces used on Windows.

These first four principles are designed to preserve freedom of choice and keep competition alive on Windows 10 in third party app stores. Alaily wrote that this offers different pricing options and distribution choices to developers as they distribute their apps across the internet. 

The remaining principles are meant to ensure that developers are all subject to the same standards and prevent Microsoft from favoring itself.  This includes holding developers equally accountable for safety and privacy, not forcing developers to sell anything on their app they do not want to, allowing developers to communicate with their users on business terms, and making sure Microsoft does not use private data to compete with developers. 

These rules will not apply to the Xbox Store. According to Alaily, game consoles are specialised and run on a different ecosystem and business model than PCs or phones. Therefore, these principles would not be practical for Xbox. 

Apple’s Anti-competitive Behavior

These principles will not require massive changes at Microsoft because Windows 10 is already an open platform, but constant references in the blog post to “other app stores” show that these rules are a clear nudge to Apple, which has been repeatedly criticized for anti-competitive behavior on its app store. 

Earlier this week, a House subcommittee released a report accusing Apple and other major tech companies, notably not Microsoft, of abusing monopoly powers and engaging in anti-competitive tactics. When it came to Apple, the report’s findings largely had to do with its app store. The report said that while Apple’s ecosystem has significant benefits for both app developers and customers, the company still functions on an extreme and controlling bias. 

The subcommittee wrote that this control over the app store creates barriers for competition and allows Apple to discriminate against rivals so they can instead promote their own apps.

“Apple also uses its power to exploit app developers through misappropriation of competitively sensitive information and to charge app developers supra-competitive prices within the App Store,” the report said. “Apple has maintained its dominance due to the presence of network effects, high barriers to entry, and high switching costs in the mobile operating system market.”

The report also noted that Apple, along with Google, charges developers a 30% commission on paid apps. While Apple claims this is an industry-standard, according to the report, this standard was actually established by Apple back in 2009.

Coalition For App Fairness

Microsoft is far from the first tech company to go after Apple’s app store practices, but it is the largest. The principles the company laid out borrow from policies laid out by The Coalition for App Fairness, whose members include Spotify, Epic Games, and Match Group. On its website, the coalition says that the tech giant is ruled by anti-competitive practices. 

“Apple uses its control of the iOS operating system to favor itself by controlling the products and features that are available to consumers,” the group says. “Apple requires equipment manufacturers to limit options, forces developers to sell through its App Store, and even steals ideas from competitors.”

The coalition also says that the 30% app tax forces developers to drive up their prices, making it impossible to compete with similar apps made by Apple that can get away with charging much less. Because of this, the group believes Apple is cutting into consumer purchasing power and freedom.

Tensions between tech groups in this coalition and Apple are nothing new. Over the summer, Epic Games slapped Apple with a lawsuit over its app store policies. Epic Games CEO thanked Microsoft for joining efforts to limit their powers. 

“It’s wonderful to see Microsoft formally codify its long-held principles in Windows as an open platform and a fair market for all developers and consumers,” he wrote.

He was not the only one to praise Microsoft. Spotify spokesman Adam Grossberg released a statement in support of the company’s move. 

“By embracing these principles, Microsoft will help create a level playing field for developers both large and small, provide consumers with greater choice, and hopefully encourage other platforms to do the same,” he said.

For its part, Apple has defended its practices within the app store. After the House released their report, the company put out a statement condemning its findings. 

“We have always said that scrutiny is reasonable and appropriate but we vehemently disagree with the conclusions reached in this staff report with respect to Apple,” the statement said. “Our company does not have a dominant market share in any category where we do business.”

“We’ve built the App Store to be a safe and trusted place for users to discover and download apps and a supportive way for developers to create and sell apps globally.”

See what others are saying: (Axios) (The Verge) (The New York Times)

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Google Is Banning “Sugar Dating” Apps as Part of New Sexual Content Restrictions

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The change essentially targets apps like Elite Millionaire Singles, SeekingArrangements, Spoil, and tons of other sugar dating platforms.


Sugar Dating Crackdown

Google has announced a series of policy changes to its Android Play Store that include a ban on sugar dating apps starting September 1.

The company’s Play Store policies already prohibit apps that promote “services that may be interpreted as providing sexual acts in exchange for compensation.”

Now, it has updated its wording to specifically include “compensated dating or sexual arrangements where one participant is expected or implied to provide money, gifts or financial support to another participant (‘sugar dating’).”

The change essentially targets apps like Elite Millionaire Singles, SeekingArrangements, Spoil, and tons of other sugar dating platforms currently available for download.

Search results for “Sugar Daddy” on Google’s Play Store

What Prompted the Change?

The company didn’t explain why it’s going after sugar dating apps, but some reports have noted that the move comes amid crackdowns of online sex work following the introduction of the FOSTA-SESTA legislation in 2018, which was meant to curb sex trafficking.

That’s because FOSTA-SESTA created an exception to Section 230 that means website publishers can be held liable if third parties are found to be promoting prostitution, including consensual sex work, on their platforms.

It’s worth noting that just because the apps will no longer be available on the Play Store doesn’t mean the sugar dating platforms themselves are going anywhere. Sugar daters will still be able to access them through their web browsers, or they can just sideload their apps from other places.

Still, the change is likely going to make the use of these sites a little less convenient.

See what others are saying: (The Verge)(Engadget)(Tech Times)

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Activision Blizzard CEO Apologizes for “Tone Deaf” Response to Harassment Suit, Unsatisfied Employees Stage Walkout

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Organizers of a Wednesday walkout say they “will not return to silence” and “will not be placated by the same processes that led us to this point.”


CEO Apologizes

After a week of growing criticism against its workplace culture, the CEO of Activision Blizzard has finally apologized for how the company first responded to allegations of sexual harassment and assault in its offices.

“Our initial responses to the issues we face together, and to your concerns, were, quite frankly, tone deaf,” CEO Bobby Kotick said Tuesday in a letter to employees. “It is imperative that we acknowledge all perspectives and experiences and respect the feelings of those who have been mistreated in any way. I am sorry that we did not provide the right empathy and understanding.” 

In its initial response, Activision Blizzard denounced the disturbing allegations brought forth in a lawsuit by the California Department of Fair Employment and Housing (DFEH) as “irresponsible.” The company added that it came from “unaccountable State bureaucrats that are driving many of the State’s best businesses out of California.”

But many current and former employees soon disputed that claim. In fact, at the time, more than 2,500 had signed their name to an open letter condemning the company for its response, which they described as “abhorrent and insulting” to survivors. 

In his letter, Kotick promised employees that Blizzard will take “swift action to be the compassionate, caring company you came to work for.”

As part of a series of new policies, he said the company will now offer additional employee support and listening sessions, as well as potential personnel changes to leadership.

“Anyone found to have impeded the integrity of our processes for evaluating claims and imposing appropriate consequences will be terminated,” he added.

Kotick also said Blizzard will add “compliance resources” to ensure that leadership is adhering to diverse hiring directives.

Lastly, he promised that the company will remove “inappropriate” in-game content. In a similar statement on Tuesday, Blizzard’s World of Warcraft team said it’s actively working to remove “references that are not appropriate for our world,” though it didn’t specify what those references were. 

It now appears that many of the references being removed are of the game’s former Senior Creative Director, Alex Afrasiabi, who is cited in the lawsuit as someone who hit on and made unwanted advances at female employees. Moreover, the suit also directly accuses him of groping one woman.

“Afrasiabi was so known to engage in harassment of females that his suite” during company events “was nicknamed the “[Cosby] Suite” after alleged rapist Bill [Cosby],” the suit claims. 

Blizzard Walkout

Organizers of a company-wide employee walkout, which was announced Tuesday and occurred Wednesday, still argue that Kotick’s latest message doesn’t address their larger concerns.

Among those are “the end of forced arbitration for all employees,” “worker participation in oversight of hiring and promotion policies,” “the need for greater pay transparency to ensure equality,” and “employee selection of a third party to audit HR and other company processes.”

“We will not return to silence; we will not be placated by the same processes that led us to this point.”

Ahead of the walkout, Blizzard reportedly encouraged its own employees to attend, saying those workers would face no repercussions and “can have paid time off” during the demonstration, according to The Verge. 

See what others are saying: (The Verge) (Polygon) (CNBC)

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Frito-Lay Workers End Nearly Three-Week Strike After Securing Higher Wages and a Guaranteed Day Off

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Employees also negotiated an end to “suicide shifts,” which are two 12-hour shifts that are only eight hours apart. 


Strike Ends

Hundreds of Frito-Lay workers in Kansas have put an end to their nearly three-week strike over alleged mandatory overtime assignments that resulted in extremely long work weeks and so-called “suicide shifts.”

The term “suicide shift” refers to working two 12-hour shifts with only eight hours of rest in between. That can be especially hard on employees who claim to have worked up to 84 hours in a single week. For context, that’s 12 hours a day without a single day off. 

One of the reasons workers have found themselves taking on more hours and days at plants is because consumer snacking has increased during the pandemic — so much so that Frito Lay’s recent net growth has exceeded every single one of its targets. That’s why at one point, the striking workers asked consumers to boycott Frito-Lay products in a show of solidarity.

The strikes began July 5 and concluded on July 23 following an agreement reached by union leaders and PepsiCo., Frito-Lay’s parent company. Under that deal, all employees will see a 4% wage increase over the next two years. They’ll also be guaranteed at least one day off a week, and the company will no longer schedule workers with only eight hours off between shifts. 

Following the agreement, Anthony Shelton, the president of the union representing the workers, said that they’ve “shown the world that union working people can stand up against the largest food companies in the world and claim victory for themselves, their families and their communities.”

“We believe our approach to resolving this strike demonstrates how we listen to our employees, and when concerns are raised, they are taken seriously and addressed,” Frito-Lay said in a statement. “Looking ahead, we look forward to continuing to build on what we have accomplished together based on mutual trust and respect.”

The Long, Bitter Road to an Agreement

When the workers went on strike, they lobbed several very disturbing accusations against Frito-Lay. 

In fact, the workers were pushed so hard that according to one employee who wrote in the Topeka Capital-Journal, “When a co-worker collapsed and died, you had us move the body and put in another co-worker to keep the line going.”

While Frito-Lay dismissed this account as “entirely false,” other employees continued to protest conditions in the plants. Many even argued the 90-degree temperatures they had to stand in to protest outside were preferable to the 100-degree-plus temperatures and smokey conditions in the factories. 

During the strikes, PepsiCo. actively disputed that its employees are overworked, describing their claims as “grossly exaggerated” and saying, “Our records indicate 19 employees worked 84 hours in a given work week in 2021, with 16 of those as a result of employees volunteering for overtime and only 3 being required to work.” 

It also said an initial concession more than met the striking employees’ terms, but the union backing those workers disagreed, and further negotiations were held until the final deal was reached. 

See what others are saying: (The New York Times) (The Washington Post) (Business Insider)

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