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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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“Cyberpunk 2077” Developer Agrees To Settle Lawsuit for $1.85M

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If approved, CD Projekt Red would pay just a small fraction of the $316 million it reportedly spent developing the game.


CDPR Agrees To Settle

Game developer CD Projekt Red (CDPR) has agreed to settle a class-action lawsuit related to its buggy launch of “Cyberpunk 2077” for $1.85 million, The Verge reported Thursday.

The lawsuit itself is actually a conglomeration of four different suits brought by shareholders who alleged that they were misled about the company’s financial performance. Since the game’s release, CD Projekt Red’s share price has fallen 54%.

The settlement must now be approved in court, but overall, it appears to be a small amount compared to the game’s $316 million budget. In fact, the game reportedly made $563 million in sales and only spent around $2.2 million on a refund campaign, though the developer’s overall refund cost for 2020 could have been as much as $51 million.

“Perhaps the plaintiffs didn’t have much of a case?” The Verge writer Sean Hollister speculated on why “it sounds like the lead plaintiffs and their lawyers negotiated for a fairly tiny sum here in exchange for ‘relinquish[ing] any and all claims against the Company and members of its Management Board.’”

“As expressly stated in the Term Sheet, execution of the Term Sheet does not imply admission of any responsibility on the part of the Company or any of the other defendants named in the case,” the negotiated settlement reads.

“Cyberpunk’s” Botched Launch

“Cyberpunk” was first announced in 2012, and for years, it was the subject of widespread fan anticipation. Seven years later, a release date of April 16, 2020, was given; however, that date was pushed back several times much to the ire of fans, some of whom even sent CDPR staff death threats.

The game was ultimately released amid fan pressure on Dec. 10, 2020, but it was so riddled with glitches that Sony infamously pulled “Cyberpunk” from its Playstation Store a week later, offering full refunds to all players who had purchased a digital copy. In June this year, “Cyberpunk” finally made its way back onto the Playstation Store following multiple patches and hotfixes from CDPR.

Despite “Cyberpunk” surpassing a massive 8 million pre-orders before launch, Bloomberg reported last week that “Where analysts had originally expected Cyberpunk sales of 30 million units in the year after the game’s release, they now expect 17.3 million copies to have been sold in that time.”

In October, CDPR delayed planned next-gen updates for both “Cyberpunk” and “The Witcher 3” until the first and second quarters of 2022, respectively.

“Apologies for the extended wait, but we want to make it right,” the developer said.

See what others are saying: (The Verge) (Engadget) (Video Games Chronicle)

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E.U. Court Rules That All Member Nations Must Recognize Same-Sex Parents

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The decision comes after a child named Sara was left without a country to call home because she had two mothers.


The Child With No Citizenship

The European Court of Justice, the European Union’s highest court, ruled Tuesday that all 27 of its member states must recognize same-sex parents and their children as a family.

The ruling stems from a case involving two women and their newborn daughter, whose status as a family originally varied between member nations. As a result, the couple’s daughter was left without citizenship in any country.

The two women, Bulgarian citizen Kalina Ivanova and Gibraltar-born British citizen Jane Jones, found themselves unable to take their newborn child Sara out of Spain after she was born in the country. Because Spain recognizes same-sex marriage, both Ivanova and Jones were registered as the girl’s legal mothers on her Spanish birth certificate.

However, under Spanish law, Sara was unable to gain citizenship in the country since neither of her parents were Spanish citizens. On top of that, she was denied British citizenship because Jones “was born in Gibraltar of British descent, and under the British Nationality Act (1981), [Jones] cannot transfer citizenship to her daughter,” the LGBTQ+ advocacy group ILGA-Europe said in a press release.

That left the couple with one other option: register Sara as a Bulgarian citizen. Still, the Bulgarian government refused to issue Sara a legally-recognized birth certificate, arguing that she is ineligible to have two mothers. Officially, Bulgaria does not recognize either same-sex marriages or same-sex registered partnerships. 

“Currently, the child has no personal documents and cannot leave Spain, the country of the family’s habitual residence,” lLGA-Europe said. “The lack of documents restrict Sara’s access to education, healthcare, and social security in Spain.”

EU Ruling

In its Tuesday decision, the European Court of Justice ruled that children in the EU have a legal right to freely move between countries given that such a right is afforded to all EU citizens. Because of this, all countries are now required to uniformly recognize the child’s parents, even if they are of the same sex. 

“That refusal could make it more difficult for a Bulgarian identity document to be issued and, therefore, hinder the child’s exercise of the right of free movement and thus full enjoyment of her rights as a Union citizen,” the court said

Despite some member states like Bulgaria not legally recognizing same-sex couples, the court stressed that its ruling “does not undermine the national identity or pose a threat to the public policy” of those nations.

That’s because while Bulgaria doesn’t have to issue its own birth certificate for Sara, it does have to recognize the Spanish birth certificate and issue its own identity card or passport for Sara.

“We are thrilled about the decision and cannot wait to get Sara her documentation and finally be able to see our families after more than two years,” Sara’s parents said according to the ILGA-Europe release. “It is important for us to be a family, not only in Spain but in any country in Europe and finally it might happen. This is a long-awaited step ahead for us but also a huge step for all LGBT families in Bulgaria and Europe.”

See what others are saying: (The Hill) (Insider) (Politico)

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GoFundMe Campaign Raises $8,700 for Waitress Who Was Fired After Not Sharing $4,400 Tip With Co-Workers

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The waitress said this was the only time management had ever tried to force her to pool a tip in her three-and-a-half years working at the restaurant.


Waitress Gets Fired After Receiving Massive Tip

An Arkansas waitress has received over $8,700 in donations online after she was fired from her job for refusing to split her half of a $4,400 dollar tip with the rest of the restaurant’s crew.

That waitress, Ryan Brandt, told local Nexstar outlet KNWA last week that she and another server received the tip after waiting on a group of more than 40 people at the Oven & Tap restaurant in Bentonville.

“It was an incredible thing to do and to see her reaction was awesome, to see what that meant to her, the impact that it’s had on her life already,” Grant Wise, who was part of the party Brandt served, told the outlet.

According to KNWA, Wise called the restaurant before his large party arrived and asked about its tipping policy since they intentionally planned to donate $100 each as part of a way to thank restaurant workers. At the time of his call, Wise said he was told the money would go directly to his party’s servers. 

“We knew servers were really hit hard through COVID, and it was something that we had come up with to help give back,” Wise told KFSM.

The outcome, however, was much different. After receiving the tip, Brandt and the other server were allegedly told by a manager that they needed to pool the tip with the rest of the workers on duty. Brandt told KNWA she had never once been asked to pool her tips in her three-and-a-half years at the restaurant prior to this.

Complying meant Brant would take home just 20% of her half of the tip.

At some point before leaving, Brandt informed Wise that her tip would be pooled with the rest of the staff. Wise, who had intended the money to only go to his servers, then asked management to return his tip, which he gave to Brandt directly outside the restaurant. The following day, Brandt said she was fired over the phone.

“It was devastating,” Brandt told local outlets. “I borrowed a significant amount for student loans. Most of them were turned off because of the pandemic but they’re turning back on in January and that’s a harsh reality.”

Oven & Tap did not speak on Brandt’s firing in its initial statement. Instead, it only said, “After dining, this large group of guests requested that their gratuity be given to two particular servers. We fully honored their request. Out of respect for our highly valued team members, we do not discuss the details surrounding the termination of an employee.”

In a follow-up statement, Oven & Tap owners Mollie Mullis and Luke Wetzel said, “The server who was terminated several days after the group dined with us was not let go because she chose to keep the tip money.”

“We recognize and regret that a recent incident in our restaurant could have been handled differently by reminding our team how we would be splitting any tips prior to the event, however, our policy has always been to participate in a tip pool/share with the staff. Tip sharing is a common restaurant industry practice that we follow to ensure all of our team members are adequately compensated for their hard work.”

Oven & Tap has still not specifically commented on why it fired Brandt, but Brandt told KNWA she believes it’s because she violated company policy by telling Wise that his party’s tip was going to be pooled. 

Online Fundraising Campaigns for Brandt

After learning of Brandt’s firing, Wise created a GoFundMe, which ultimately raised $8,732 for Brandt.

“[Brandt] is, from what I can tell, a very kind woman that was working two jobs to get by through the pandemic,” he said in his initial post. “She has incredible aspirations to grow her own business and I can tell has a servants-heart.”

Wise provided an update Tuesday saying that instead of closing the GoFundMe, he will keep the campaign open to raise additional money to “pay it forward” to a future group of restaurant staff who will wait on his party.

In January, we are going to host another $100 Dinner Club and I have invited [Brandt] to be our ‘Guest of Honor’!” he said. “Any dollar amount raised over the $8,732 that has already been raised and is being paid out to [Brandt] will be given directly to the staff of the restaurant we decide to eat at.”

“We will be working to ensure through this that all staff in the restaurant are tipped so everyone feels blessed by our dinner.”

As of Tuesday morning, the GoFundMe page has raised over $9,100.

See what others are saying: (KNWA) (Insider) (KFSM)

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