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Go figure — just one day after writing about how Apple’s ambiguous descriptions of supposedly clever features has the potential to rob trust, my phone has become haunted.

I saw a suggestion from Siri that I turn on Do Not Disturb until the end of an event in my calendar — a reservation at a restaurant from 8:30 until 10:00 this morning. No such matching event was in Fantastical. It was, however, shown in the Calendar app as a Siri Suggestion.

What I think happened is that I was looking at that restaurant on OpenTable at perhaps 8:00 this morning. I was doing so in my web browser on my Mac, and I was not logged into OpenTable. My Mac and iPhone are both running operating system beta builds with Apple Intelligence enabled. Siri must have interpreted this mere browsing as me making a reservation, and then added it to my calendar without my asking, and then made a suggestion based on that fictional event.

This was not helpful. It was, in fact, perplexing and creepy. I do not know how all of these things were able to work together to produce this result, but I do not like it at all. It is obvious how this would make anyone question whether they can trust Apple Intelligence, A.I. systems generally, Siri, and their personal privacy. Truly bizarre.

Spencer Ackerman has been a national security reporter for over twenty years, and was partially responsible for the Guardian’s coverage of NSA documents leaked by Edward Snowden. He has good reason to be skeptical of privacy claims in general, and his experience updating his iPhone made him worried:

Recently, I installed Apple’s iOS 18.1 update. Shame on me for not realizing sooner that I should be checking app permissions for Siri — which I had thought I disabled as soon as I bought my device — but after installing it, I noticed this update appeared to change Siri’s defaults.

Apple has a history with changing preferences and dark patterns. This is particularly relevant in the case of the iOS 18.1 update because it was the one with Apple Intelligence, which creates new ambiguity between what is happening on-device and what goes to a server farm somewhere.

Allen Pike:

While easy tasks are handled by their on-device models, Apple’s cloud is used for what I’d call moderate-difficulty work: summarizing long emails, generating patches for Photos’ Clean Up feature, or refining prose in response to a prompt in Writing Tools. In my testing, Clean Up works quite well, while the other server-driven features are what you’d expect from a medium-sized model: nothing impressive.

Users shouldn’t need to care whether a task is completed locally or not, so each feature just quietly uses the backend that Apple feels is appropriate. The relative performance of these two systems over time will probably lead to some features being moved from cloud to device, or vice versa.

It would be nice if it truly did not matter — and, for many users, the blurry line between the two is probably fine. Private Cloud Compute seems to be trustworthy. But I fully appreciate Ackerman’s worries. Someone in his position necessarily must understand what is being stored and processed in which context.

However, Ackerman appears to have interpreted this setting change incorrectly:

I was alarmed to see that even my secure communications apps, like Proton and Signal, were toggled by default to “Learn from this App” and enable some subsidiary functions. I had to swipe them all off.

This setting was, to Ackerman, evidence of Apple “uploading your data to its new cloud-based AI project”, which is a reasonable assumption at a glance. Apple, like every technology company in the past two years, has decided to loudly market everything as being connected to its broader A.I. strategy. In launching these features in a piecemeal manner, though, it is not clear to a layperson which parts of iOS are related to Apple Intelligence, let alone where those interactions are taking place.

However, this particular setting is nearly three years old and unrelated to Apple Intelligence. This is related to Siri Suggestions which appear throughout the system. For example, the widget stack on my home screen suggests my alarm clock app when I charge my iPhone at night. It suggests I open the Microsoft Authenticator app on weekday mornings. When I do not answer the phone for what is clearly a scammer, it suggests I return the missed call. It is not all going to be gold.

Even at the time of its launch, its wording had the potential for confusion — something Apple has not clarified within the Settings app in the intervening years — and it seems to have been enabled by default. While this data may play a role in establishing the “personal context” Apple talks about — both are part of the App Intents framework — I do not believe it is used to train off-device Apple Intelligence models. However, Apple says this data may leave the device:

Your personal information — which is encrypted and remains private — stays up to date across all your devices where you’re signed in to the same Apple Account. As Siri learns about you on one device, your experience with Siri is improved on your other devices. If you don’t want Siri personalization to update across your devices, you can disable Siri in iCloud settings. See Keep what Siri knows about you up to date on your Apple devices.

While I believe Ackerman is incorrect about the setting’s function and how Apple handles its data, I can see how he interpreted it that way. The company is aggressively marketing Apple Intelligence, even though it is entirely unclear which parts of it are available, how it is integrated throughout the company’s operating systems, and which parts are dependent on off-site processing. There are people who really care about these details, and they should be able to get answers to these questions.

All of this stuff may seem wonderful and novel to Apple and, likely, many millions of users. But there are others who have reasonable concerns. Like any new technology, there are questions which can only be answered by those who created it. Only Apple is able to clear up the uncertainty around Apple Intelligence, and I believe it should. A cynical explanation is that this ambiguity is all deliberate because Apple’s A.I. approach is so much slower than its competitors and, so, it is disincentivized from setting clear boundaries. That is possible, but there is plenty of trust to be gained by being upfront now. Americans polled by Pew Research and Gallup have concerns about these technologies. Apple has repeatedly emphasized its privacy bonafides. But these features remain mysterious and suspicious for many people regardless of how much a giant corporation swears it delivers “stateless computation, enforceable guarantees, no privileged access, non-targetability, and verifiable transparency”.

All of that is nice, I am sure. Perhaps someone at Apple can start the trust-building by clarifying what the Siri switch does in the Settings app, though.

Cade Metz, New York Times:

Mr. [Sam] Altman said he was “tremendously sad” about the rising tensions between the two one-time collaborators.

“I grew up with Elon as like a mega hero,” he said.

But he rejected suggestions that Mr. Musk could use his increasingly close relationship with President-elect Trump to harm OpenAI.

“I believe pretty strongly that Elon will do the right thing and that it would be profoundly un-American to use political power to the degree that Elon would hurt competitors and advantage his own businesses,” he said.

Alex Heath, the Verge:

Jeff Bezos and President-elect Donald Trump famously didn’t get along the last time Trump was in the White House. This time, Bezos says he’s “very optimistic” and even wants to help out.

“I’m actually very optimistic this time around,” Bezos said of Trump during a rare public appearance at The New York Times DealBook Summit on Wednesday. “He seems to have a lot of energy around reducing regulation. If I can help him do that, I’m going to help him.”

Emily Swanson, the Guardian:

“Mark Zuckerberg has been very clear about his desire to be a supporter of and a participant in this change that we’re seeing all around America,” Stephen Miller, a top Trump deputy, told Fox.

Meta’s president of global affairs, Nick Clegg, agreed with Miller. Clegg said in a recent press call that Zuckerberg wanted to play an “active role” in the administration’s tech policy decisions and wanted to participate in “the debate that any administration needs to have about maintaining America’s leadership in the technological sphere,” particularly on artificial intelligence. Meta declined to provide further comment.

There are two possibilities. The first is that these CEOs are all dummies with memory no more capacious than that of an earthworm. The second is that these people all recognize the transactional and mercurial nature of the incoming administration, and they have begun their ritualistic grovelling. Even though I do not think money and success is evidence of genius, I do not think these CEOs are so dumb they actually believe in the moral fortitude of these goons.

Ben Cohen, Wall Street Journal:

Only four years ago, when it was less popular for podcasts than both Spotify and Apple, YouTube becoming a podcasting colossus sounded about as realistic as Martin Scorsese releasing his next movie on TikTok.

But this year, YouTube passed the competition and became the most popular service for podcasts in the U.S., with 31% of weekly podcast listeners saying it’s now the platform they use the most, according to Edison Research.

This is notable, but Cohen omits key context for why YouTube is suddenly a key podcast platform: Google Podcasts was shut down this year with users and podcasters alike instructed to move to YouTube. According to Buzzsprout’s 2023 analytics, Google Podcasts was used by only 2.5% of global listeners. YouTube is not listed in their report, perhaps because it exists in its own bubble instead of being part of the broader RSS-feed-reading podcast client ecosystem.

But where Google was previously bifurcating its market share, it aligned its users behind a single client. And, it would seem, that audience responded favourably.

John Herrman, New York magazine:

Then, just as the 2010s podcasting bubble was about to peak, TikTok arrived. Here was a video-first platform that was basically only a recommendation engine, minus the pretense and/or burden of sociality — a machine for automating and allocating virality. Its rapid growth drove older, less vibrant social-media platforms wild with envy and/or panic. They all immediately copied it, refashioning themselves as algorithmic short-video apps almost overnight. Suddenly, on every social-media platform — including YouTube, which plugged vertical video “Shorts” into its interface and rewarded creators who published them with followers, attention, and money — there was a major new opportunity for rapid, viral growth. TikTok’s success (and imitation by existing megaplatforms) triggered a formal explosion in video content as millions of users figured out what sorts of short videos worked in this new context: Vine-like comedy sketches; dances; product recommendations; rapid-fire confessionals. The list expanded quickly and widely, but one surprising category broke through: podcast clips.

Of the top twenty podcasts according to Edison Research, fifteen have what I would deem meaningful and regular video components. I excluded those with either a still piece of artwork or illustrated talking heads, and those which only occasionally have video.

Dave Winer:

[…] We’re losing the word “podcast” very quickly. It’s coming to mean video interviews on YouTube mostly. Our only hope is upgrading the open platform in a way that stimulates the imagination of creators, and there’s no time to waste. If you make a podcast client, it’s time to start collaborating with competitors and people who create RSS-based podcasts to take advantage of the open platforms, otherwise having a podcast will mean getting approved by Google, Apple, Spotify, Amazon etc. […]

I hope this is not the case. Luckily, YouTube seems to be an additional place for podcasters so far. I found every show in the top twenty available for download through Overcast in an audio-only format. Also, YouTube channels have RSS feeds, though that is not very useful in an audio-only client like Overcast. Also, Google’s commitment to RSS is about as good as the company’s commitment to anything.

Out of the U.S. today comes a slew of new proposed restrictions against data brokers and their creepy practices.

The Consumer Financial Protection Bureau:

[…] The proposed rule would limit the sale of personal identifiers like Social Security Numbers and phone numbers collected by certain companies and make sure that people’s financial data such as income is only shared for legitimate purposes, like facilitating a mortgage approval, and not sold to scammers targeting those in financial distress. The proposal would make clear that when data brokers sell certain sensitive consumer information they are “consumer reporting agencies” under the Fair Credit Reporting Act (FCRA), requiring them to comply with accuracy requirements, provide consumers access to their information, and maintain safeguards against misuse.

The Federal Trade Commission:

The Federal Trade Commission will prohibit data broker Mobilewalla, Inc. from selling sensitive location data, including data that reveals the identity of an individual’s private home, to settle allegations the data broker sold such information without taking reasonable steps to verify consumers’ consent.

And also the Federal Trade Commission:

The Federal Trade Commission is taking action against Gravy Analytics Inc. and its subsidiary Venntel Inc. for unlawfully tracking and selling sensitive location data from users, including selling data about consumers’ visits to health-related locations and places of worship.

Both of the proposed FTC orders require these businesses to “maintain a sensitive location data program designed to develop a list of sensitive locations and prevent the use, sale, license, transfer, sharing, or disclosure of consumers’ visits to those locations”. These include, for example and in addition to those in the above quotes, shelters, labour union offices, correctional facilities, and military installations. This order was previewed last month in Wired.

As usual, I am conflicted about these policies. While they are yet another example of Lina Khan’s FTC and other government bureaucrats cracking down on individually threatening data brokers, it would be far better for everyone if this were not handled on a case-by-case basis. These brokers have already caused a wealth of damage around the world, and only they are being required to stop. Other players in the rest of the data broker industry will either self-govern or hope they do not fall into the FTC’s crosshairs, and if you believe the former is more likely, you have far greater faith in already-shady businesses than I do.

There is another wrench in these proposals: we are less than two months away from a second Trump presidency, and the forecast for the CFPB looks unfriendly. It was kneecapped during the first administration and it is on the chopping block for those overseeing a advisory committee masquerading as a government agency. The future of the FTC is more murky, with some indicators it will continue its current path — albeit from a Republican-skewed perspective — while others suggest a reversal.

The centring of the U.S. in the digital activity of a vast majority of us gives it unique power on privacy — power it has, so far, used in only very small doses. The future of regulatory agencies like these has relevance to all of us.

Enron is not really back. Someone managed to grab the Enron.com URL and put up an inspirational faux corporate video and a Shopify merch store. It is all very funny.

What is more amusing to me is stumbling across a preserved-in-amber Enron website. There is an earnings press release from July 2001, mere months before the whole thing went to hell in public. There are descriptions of the company’s vast products.

But this, too, is unofficial. It was created by Facundo Pignanelli to preserve this noteworthy chapter in corporate fraud. There is even an Instagram account. This is all very strange.

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Brendan Nystedt, reporting for Wired on a new generation of admirers of crappy digital cameras from the early 2000s:

For those seeking to experiment with their photography, there’s an appeal to using a cheap, old digital model they can shoot with until it stops working. The results are often imperfect, but since the camera is digital, a photographer can mess around and get instant gratification. And for everyone in the vintage digital movement, the fact that the images from these old digicams are worse than those from a smartphone is a feature, not a bug.

Om Malik attributes it to wabi-sabi:

Retromania? Not really. It feels more like a backlash against the excessive perfection of modern cameras, algorithms, and homogenized modern image-making. I don’t disagree — you don’t have to do much to come up with a great-looking photo these days. It seems we all want to rebel against the artistic choices of algorithms and machines — whether it is photos or Spotify’s algorithmic playlists versus manually crafted mixtapes.

I agree, though I do not see why we need to find just one cause — an artistic decision, a retro quality, an aesthetic trend, a rejection of perfection — when it could be driven by any number of these factors. Nailing down exactly which of these is the most important factor is not of particular interest to me; certainly, not nearly as much as understanding that people, as a general rule, value feeling.

I have written about this before and it is something I wish to emphasize repeatedly: efficiency and clarity are necessary elements, but are not the goal. There needs to be space for how things feel. I wrote this as it relates to cooking and cars and onscreen buttons, and it is still something worth pursuing each and every time we create anything.

I thought about this with these two articles, but first last week when Wil Shipley announced the end of Delicious Library:

Amazon has shut off the feed that allowed Delicious Library to look up items, unfortunately limiting the app to what users already have (or enter manually).

I wasn’t contacted about this.

I’ve pulled it from the Mac App Store and shut down the website so nobody accidentally buys a non-functional app.

Delicious Library was many things: physical and digital asset management software, a kind of personal library, and a wish list. But it was also — improbably — fun. Little about cataloguing your CDs and books sounds like it ought to be enjoyable, but Shipley and Mike Matas made it feel like something you wanted to do. You wanted to scan items with your Mac’s webcam just because it felt neat. You wanted to see all your media on a digital wooden shelf, if for no other reason than it made those items feel as real onscreen as they are in your hands.

Delicious Library became known as the progenitor of the “delicious generation” of applications, which prioritized visual appeal as much as utility. It was not enough for an app to be functional; it needed to look and feel special. The Human Interface Guidelines were just that: guidelines. One quality of this era was the apparently fastidious approach to every pixel. Another quality is that these applications often had limited features, but were so much fun to use that it was possible to overlook their restrictions.

I do not need to relitigate the subsequent years of visual interfaces going too far, then being reeled in, and then settling in an odd middle ground where I am now staring at an application window with monochrome line-based toolbar icons, deadpan typography, and glassy textures, throwing a heavy drop shadow. None of the specifics matter much. All I care about is how these things feel to look at and to use, something which can be achieved regardless of how attached you are to complex illustrations or simple line work. Like many people, I spend hours a day staring at pixels. Which parts of that are making my heart as happy as my brain? Which mundane tasks are made joyful?

This is not solely a question of software; it has relevance in our physical environment, too, especially as seemingly every little thing in our world is becoming a computer. But it can start with pixels on a screen. We can draw anything on them; why not draw something with feeling? I am not sure we achieve that through strict adherence to perfection in design systems and structures.

I am reluctant to place too much trust in my incomplete understanding of a foreign-to-me concept rooted in another country’s very particular culture, but perhaps the sabi is speaking loudest to me. Our digital interfaces never achieve a patina; in fact, the opposite is more often true: updates seem to erase the passage of time. It is all perpetually new. Is it any wonder so many of us ache for things which seem to freeze the passage of time in a slightly hazier form?

I am not sure how anyone would go about making software feel broken-in, like a well-worn pair of jeans or a lounge chair. Perhaps that is an unattainable goal for something on a screen; perhaps we never really get comfortable with even our most favourite applications. I hope not. It would be a shame if we lose that quality as software eats our world.

Barry Schwartz, Search Engine Roundtable:

Google launched a new feature in the Google App for iOS named Page Annotation. When you are browsing a web page in the Google App native browser, Google can “extract interesting entities from the webpage and highlight them in line.” When you click on them, Google takes you to more search results.

This was announced nearly two weeks ago in a subtle forum post. If there was a press release, I cannot find it. It was only picked up by the press thanks to Schwartz’s November 21 article, but those stories were not published until just before the U.S. Thanksgiving long weekend, so this news was basically buried.

Google is now injecting “Page Annotations”, which are kind of like Skimlinks but with search results. The results from a tapped Page Annotation are loaded in a floating temporary sheet, so it is not like users are fully whisked away — but that is almost worse. In the illustration from Google, a person is apparently viewing a list of Japanese castles, into which Google has inserted a link on “Osaka Castle”. Tapping on an injected link will show Google’s standard search results, which are front-loaded with details about how to contact the castle, buy tickets, and see a map. All of those things would be done better in a view that cannot be accidentally swiped away.

Maybe, you are thinking, it would be helpful to easily trigger a search from some selected text, and that is fair. But the Google app already displays a toolbar with a search button when you highlight any text in this app.

Owners of web properties are only able to opt out by completing a Google Form, but you must be signed into the same Google account you use for Search Console. Also, if a property is accessible at multiple URLs — for example, http and https, or www and non-prefixed — you must include each variation separately.

For Google to believe it has the right to inject itself into third-party websites is pure arrogance, yet it is nothing new for the company. It has long approached the web as its own platform over which it has control and ownership. It overlays dialogs without permission; it invented a proprietary fork of HTML and it pushed its adoption for years. It can only do these things because it has control over how people use the web.

From the official Bluesky account:

With this release, you can now display replies by “hotness,” which weights liked replies that are more recent more heavily.

I believe this replaced the past reply sorting of oldest to newest. People seem worried this can be gamed, but there is good news: you can just change it. There are options for oldest replies, newest replies, most-liked, and one that is completely randomized. Also, you can still set it to prioritize people you follow.

Imagine that: options for viewing social media that give control back to users. Threads is experimenting, but Meta still fundamentally distrusts users to make decisions like these.

Adam Satarino, New York Times:

But as Ms. [Margrethe] Vestager closes out her era in Brussels, regulating the tech industry has become more mainstream around the world. Thanks to her, Europe is now widely seen as the pioneer of the toughest laws against tech. U.S. regulators have in recent years followed Europe by bringing antitrust lawsuits against Google, Apple, Meta and Amazon. Regulators in South Korea, Australia, Brazil, Canada and elsewhere are also taking on the tech giants.

Vestager’s term has been defined by patience. Owing to both the rapid growth in size and complexity of technology firms, and tedious legal processes, these cases have taken considerable time. Some of the earliest cases Vestager brought have just been settled. It is still too early to tell whether the many changes resulting from these cases will have a radical effect on the technology landscape.

However, as Satarino writes, her approach has been influential worldwide. The technology in seemingly every country outside authoritarian states like China and Russia has been under the thumb of big companies most often based in the United States. Sometimes, those products and services clash with local expectations and values, or consume business viability. Not all of these corporations got where they are by illegitimate means, or are unanimously behaving in illegally anticompetitive ways. But it is sensible to investigate and become a correcting force.

For too long, regulators were too hesitant to question tech companies. These businesses were perpetually too new and too complicated. Vestager broke the dam.

Competition Bureau Canada:

The Competition Bureau is taking legal action against Google for anti-competitive conduct in online advertising technology services in Canada. Following a thorough investigation, the Bureau has filed an application with the Competition Tribunal that seeks to remedy the conduct for the benefit of Canadians.

This has become a familiar announcement: a consumer protection agency, somewhere in the world, is questioning whether a giant technology conglomerate has abused its power. A dam has burst.

Leah Nylen, Josh Sisco, and Dina Bass, Bloomberg:

The US Federal Trade Commission has opened an antitrust investigation of Microsoft Corp., drilling into everything from the company’s cloud computing and software licensing businesses to cybersecurity offerings and artificial intelligence products.

Seems like a lot of people who thought Microsoft would escape antitrust investigations in the U.S. might have been a little too eager.

This kind of scrutiny is a good thing, and long overdue. Yet one of the unavoidable problems of reducing the influence of these giant corporations now is the pain it is going to cause — almost by definition. If a corporation is abusing its power and scale to such a degree the FTC initiates an investigation, unwinding that will have — to put it mildly — an effect. We are seeing this in the Google case. This is true for any situation where a business or a group of people with too much influence needs correcting. That does not mean it should not happen.

It is true that Microsoft’s products and services are the backbone of businesses and governments the world over. These are delivered through tight integrations, all of which encourages further fealty to this singular solution. For example, it used its dominant position with Office 365 to distribute Teams for free, thereby making it even harder for other businesses to compete. It then leveraged Outlook and Teams to boost its web browser, after doing the same with Windows. If it charged for Teams out of the gate, this would be having a different discussion.

Obviously, the FTC’s concerns with Microsoft’s business practices stretch well beyond bundling Teams. According to this Bloomberg report, the Commission is interested in cloud and identity tying, too. On the one hand, it is enormously useful to businesses to have a suite of products with a single point of management and shared credentials. On the other hand, it is a monolithic system that is a non-starter for potential competitors.

The government is understandably worried about the security and stability risks of global dependence on Microsoft, too, but this is odd:

The CrowdStrike crash that affected millions of devices operating on Microsoft Windows systems earlier this year was itself a testament to the widespread use of the company’s products and how it directly affects the global economy.

This might just be Bloomberg’s contextualizing more than it is relevant to the government’s position. But, still, it seems wrong to me to isolate Windows as the problem instead of Crowdstrike itself, especially with better examples to be found in the SolarWinds breach and its track record with first-party security.

Ronan Farrow, the New Yorker:

Decisions by the White House and by Republican lawmakers about spyware will have implications across a variety of policy areas that Trump and his associates are upending and that reach far beyond Washington. In recent years, an array of states, including Texas, Florida, and California have reportedly purchased spyware and other surveillance technologies; legislators and regulators will dictate whether that trend continues. Since the fall of Roe v. Wade, at least two states have already used private personal data to prosecute people for getting abortions. That practice could expand with more widespread and affordable access to this technology.

This article appears to have been timed to coincide with the release of a new documentary on HBO, showing Farrow reporting out stories on NSO Group and other commercial spyware makers. It is not the most substantive piece and I think that plus the headline — “The Technology the Trump Administration Could Use to Hack Your Phone” — is more distracting than it is illuminating. U.S. administrations have, since George W. Bush, used terrorism as a means of hand-waving away civil liberties protections, including domestic spying. Barack Obama’s administration famously killed U.S. citizens without trial, an action which remains shocking to me to this day regardless of who carried it out. In his first administration, Donald Trump compromised the legitimacy of all manner of domestic and foreign politics.

So, to the question of whether the U.S. would begin using fancy spyware on citizens’ phones under any administration, the answer seems more like a question of when and not if. It is just one more tool of a long series of violations. The next Trump administration seems unlikely to be more restrained than the first but, when this happens, I bet it becomes part of the churn-and-burn media cycle. It will barely register except to those who already find this sort of stuff disturbing.

By the way, the documentary itself is fine. It is only about an hour long and is mostly a behind-the-scenes look at the reporting. I am not sure that there is anything new-for-2024 within. Farrow’s New Yorker articles about the subject are far more illuminating.

Michael Kan, PC Magazine:

Mozilla points to a key but less eye-catching proposal from the DOJ to regulate Google’s search business, which a judge ruled as a monopoly in August. In their recommendations, federal prosecutors urged the court to ban Google from offering “something of value” to third-party companies to make Google the default search engine over their software or devices. 

“The proposed remedies are designed to end Google’s unlawful practices and open up the market for rivals and new entrants to emerge,” the DOJ told the court. The problem is that Mozilla earns most of its revenue from royalty deals — nearly 86% in 2022 — making Google the default Firefox browser search engine.

This is probably another reason why U.S. prosecutors want to jettison Chrome from Google: they want to reduce any benefit it may accrue from trying to fix its illegal search monopoly. But it seems Google’s position in the industry is so entrenched that correcting it will hurt lots of other businesses, too. That does not mean it should not be broken up or that the DOJ’s proposed remedies are wrong, however.

Peter Kafka, Business Insider:

Titled “Operation Black Walnut,” the 2022 report appears to have been assembled by Google strategists to try to imagine what kind of ad business Apple might eventually build out one day.

Apple’s current ad business is mostly confined to selling ads on its App Store search results page. But the report’s authors speculate that Apple could eventually start selling ads that run on other people’s apps and eventually on the web via its Safari browser. It might eventually become a $30 billion business, they guesstimate.

The iPhone continues to be Apple’s big moneymaker but, right after it is a big bucket labelled “Services”. Some of that is thanks to monthly recurring charges for iCloud, media streaming, video games, news, and fitness stuff. That is what probably comes to mind when you head “Apple Services”. But there are a few more things in that bucket: AppleCare, payments, advertising, and the App Store. Those last two categories are looking less solid than they once did.

Included in “advertising” is the revenue sharing agreement between Apple and Google, which is probably going to take a $20 billion per year haircut. That is about 20% of Apple’s entire annual “Services” revenue, and 16% of its total profits for 2024. Also, regulators are chipping away at the company’s lock on its cut of in-app payments.

The Google document is speculative and external to Apple, so it does not represent Apple’s actual strategy. This is what Google, an advertising company, thinks Apple could do if it wanted to really commit to selling ads. Does losing its Google revenue share tip Apple’s hand? I sure hope not, but I am not the person trying to figure out whether to take a massive financial hit for users’ trust and enjoyment. If Apple has good taste, I hope it will make the right call.

Andre Romani and Alberto Alerigi Jr., Reuters:

Brazilian antitrust regulator Cade said on Monday that Apple must lift restrictions on payment methods for in-app purchases, among other things, as the watchdog moved to proceed with an investigation into a complaint filed by Latin America e-commerce giant MercadoLibre.

It would look very silly to me if Apple continues to deal with these consistent findings in country after country after country after country in individualized ways instead of updating its rules globally. Very silly, indeed.

David Hill, Rolling Stone:

PASPA, which stands for the Professional and Amateur Sports Protection Act, was a law in the U.S. that prohibited sports betting, except in a few states, like Nevada. It was overturned by the Supreme Court in 2018, and ever since, sports gambling has exploded into the American zeitgeist. Ads for sportsbooks have dominated televised events, made their way into the stadiums and arenas of professional and collegiate sports alike, and even onto the jerseys of the athletes themselves. Talk of point spreads and totals, once taboo over the airwaves, are now not only common topics among the sports commentariat, but also displayed in the chyron scoreboards right on the screen. It seems like everyone who isn’t betting on sports likely has someone in their life who is. Revenues for sports-betting companies reached nearly $11 billion in 2023, up 44.5 percent from the year before.

[…]

According to NCPG, 16 percent of sports bettors meet the criteria for clinical gambling disorder. Men between the ages of 18 and 24 are particularly at risk, creating what [NCPG executive director Keith] Whyte calls a “ticking time bomb” of young people growing up not knowing what it’s like to not have a sportsbook in their pocket at all times.

Drew Gooden made a video about the same subject and, last year, the Fifth Estate investigated sports betting in Canada after it was legalized here in 2021.

It is strange to me how the world of sports gambling is now just an open business like any other. It makes sense to me that it is legal, but to integrate it so tightly with every aspect of a competition is something I admit to being confused about and a little troubled by. I do not mean to be squeamish about adults having a little fun. But it seems to now be just part of how sports are discussed: not about athletics or strategy, but about all the money you could make. Or, probably, lose.

If one downloads Apple’s Sports app, for example, betting odds are displayed near the top of the screen for every game, just below the current score. This is on by default; it is up to users to turn it off. While a user cannot make a bet from within the app, it seems to treat this vice with uncharacteristic casualness.

Michael Liedtke, Associated Press:

The proposed breakup floated in a 23-page document filed late Wednesday by the U.S. Department of Justice calls for sweeping punishments that would include a sale of Google’s industry-leading Chrome web browser and impose restrictions to prevent Android from favoring its own search engine.

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Although regulators stopped short of demanding Google sell Android too, they asserted the judge should make it clear the company could still be required to divest its smartphone operating system if its oversight committee continues to see evidence of misconduct.

Casey Newton:

In addition to requiring that Chrome be divested, the proposal calls for several other major changes that would be enforced over a 10-year period. They include:

  • Blocking Google from making deals like the one it has with Apple to be its default search engine.

  • Requiring it to let device manufacturers show users a “choice screen” with multiple search engine options on it.

  • Licensing data about search queries, results, and what users click on to rivals.

  • Blocking Google from buying or investing in advertising or search companies, including makers of AI chatbots. (Google agreed to invest up to $2 billion into Anthropic last year.)

The full proposal (PDF) is a pretty easy read. One of the weirder ideas pitched by the Colorado side is to have Google “fund a nationwide advertising and education program” which may, among other things, “include reasonable, short-term incentive payments to users” who pick a non-Google search engine from the choice screen.

I am guessing that is not going to happen, and not just because “Plaintiff United States and its Co-Plaintiff States do not join in proposing these remedies”. In fact, much of this wish list seems unlikely to be part of the final judgement expected next summer — in part because it is extensive, in part because of politics, and also because it seems unrelated.

Deborah Mary Sophia, Akash Sriram, and Kenrick Cai, Reuters:

“DOJ will face substantial headwinds with this remedy,” because Chrome can run search engines other than Google, said Gus Hurwitz, senior fellow and academic director at University of Pennsylvania Carey Law School. “Courts expect any remedy to have a causal connection to the underlying antitrust concern. Divesting Chrome does absolutely nothing to address this concern.”

I — an effectively random Canadian with no expertise in this and, so, you should take my perspective with appropriate caveats — disagree.

The objective of disentangling Chrome from Google’s ownership, according to the executive summary (PDF) produced by the Department of Justice, is to remove “a significant challenge to effectuate a remedy that aims to ‘unfetter [these] market[s] from anticompetitive conduct'”:

A successful remedy requires that Google: stop third-party payments that exclude rivals by advantaging Google and discouraging procompetitive partnerships that would offer entrants access to efficient and effective distribution; disclose data sufficient to level the scale-based playing field it has illegally slanted, including, at the outset, licensing syndicated search results that provide potential competitors a chance to offer greater innovation and more effective competition; and reduce Google’s ability to control incentives across the broader ecosystem via ownership and control of products and data complementary to search.

The DOJ’s theory of growth reinforcing quality and market dominance is sound, from what I understand, and Google does advantage Chrome in some key ways. Most directly related to this case is whether Chrome activity is connected to Google Search. Despite company executives explicitly denying using Chrome browsing data for ranking, a leak earlier this year confirmed Google does, indeed, consider Chrome views in its rankings.

There is also a setting labelled “Make searches and browsing better”, which automatically “sends URLs of the pages you visit” to Google for users of Chromium-based browsers. Google says this allows the company to “predict what sites you might visit next and to show you additional info about the page you’re visiting” which allows users to “browse faster because content is proactively loaded”.

There is a good question as to how much Google Search would be impacted if Google could not own Chrome or operate its own browser for five years, as the remedy proposes. How much weight these features have in Google’s ranking system is something only Google knows. And the DOJ does not propose that Google Search cannot be preloaded in browsers whatsoever. Many users would probably still select Google as their browser’s search engine, too. But Google Search does benefit from Google’s ownership of Chrome itself, so perhaps it is worth putting barriers between the two.

I do not think Chrome can exist as a standalone company. I also do not think it makes sense for another company to own it, since any of those big enough to do so either have their own browsers — Apple’s Safari, Microsoft’s Edge — or would have the potential to create new anticompetitive problems, like if it were acquired by Meta.

What if the solution looks more like prohibiting Google from uniquely leveraging Chrome to benefit its other products? I do not know how that could be written in legal terms, but it appears to me this is one of the DOJ’s goals for separating Chrome and Google.