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2024: Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options

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OAKLAND, California – A federal judge on Wednesday questioned whether Apple had set up a maze of frustrating barriers to discourage other payment alternatives in iPhone apps, despite a court order to expand the number of ways consumers may pay for digital services.

The verbal sparring between Judge Yvonne Gonzalez Rogers and the head of Apple’s app store kicked off a hearing to determine whether Apple is still steering U.S. consumers to its once-exclusive app payment system in violation of an injunction to encourage more choices that could help lower prices.

Gonzalez Rogers’ order mandates Apple to allow app developers to offer links to other payment systems in the United States. Apple earns billions of dollars yearly from this structure, which charges 15% to 30% on digital transactions within the most popular iPhone apps.

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Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options

Apple’s app store and commission structure are also being challenged in a recent antitrust complaint brought by the United States Justice Department. The complaint alleges that the iPhone stifles competition and innovation.

Gonzalez Rogers frequently weighed in during Matthew Fischer’s four-hour testimony, sounding agitated and dubious.

The judge’s inquiries suggested that she is concerned that Apple’s efforts to comply with her order primarily protect the company’s profits rather than make it easier for iPhone customers to switch to other in-app payment choices, as she intended.

Gonzalez Rogers was particularly sharp as she questioned Fischer about whether Apple has purposefully made it more complicated for consumers to make digital transactions through alternative platforms.

“Other than to stifle competition, I can see no other answer,” the judge remarked as she attempted to decipher the reasoning behind Apple’s design of an alternative payment option system for iPhone apps.

Fischer claimed that Apple is complying with the judge’s decision while also attempting to protect iPhone users from criminal actors on the internet and allowing the Cupertino, California-based corporation, to profit from its investments in the app store and other mobile applications.

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Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options

To that purpose, Apple has implemented a new compensation structure that ranges from 12% to 27% on digital transactions initiated within an app and finished using an alternative payment method. Following Gonzalez Rogers’ comment that Apple was still getting a “windfall,” Fischer stated that the business believed its effective fee rate on digital transactions processed via alternative payment alternatives to be around 18%.

“We are running a business,” Fischer stated.

Apple spent over two years attempting to reverse Gonzalez Rogers’ order as part of a larger antitrust case, which the corporation ultimately won. The injunction mandating Apple to allow links to alternative app payments went into force in January after the United States Supreme Court declined to hear the case.

However, Fischer announced on Wednesday that Apple has only received and authorized applications to display links to other payment systems from 38 apps, a small proportion of the approximately 2 million iPhone apps accessible in the United States. When asked by Gonzalez Rogers, who ordered Apple to reveal the number as the case progressed this month, Fischer could not explain how many of those apps engage in digital transactions.

The video game developer Epic Games cites Apple’s lack of interest in applying for in-app links to alternative payment alternatives as evidence that the system was still rigged in its favor.

Epic, the creator of the popular video game Fortnite, is attempting to force Apple to make more significant adjustments to accept alternative payment alternatives after failing to persuade Gonzalez Rogers that the iPhone app store had become a price-gouging monopoly during a 2021 trial.

Meta Platforms, which owns Facebook and Instagram, Elon Musk’s X short-messaging service, Spotify, and long-time Apple foe Microsoft all support the initiative.

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Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options

Epic claimed in documents filed before Wednesday’s hearing that Apple’s current alternative payment formula “is guaranteed to continue extracting excessive commissions from developers” while preventing them from directing customers to other places where they could purchase the same digital services for less money.

In its pre-hearing filings, Apple accused Epic of attempting to persuade Gonzalez Rogers to micromanage its operations to increase the video game company’s revenues.

“Epic has repeatedly made clear that what it wants is access to and use of Apple’s tools and technologies without having to pay for them,” Apple countered.

The court proceedings will resume on Friday, when another top Apple official, Phil Schiller, will likely testify. Gonzalez Rogers intends to complete the hearings by May 17 but cautioned lawyers Wednesday that it might take longer.

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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A Former OpenAI Leader Says Safety Has ‘Taken A Backseat To Shiny Products’ At The AI Company

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Jan Leike: Getty I,ages

A former OpenAI executive who quit earlier this week warned Friday that safety has “taken a backseat to shiny products” at the influential artificial intelligence firm.

Jan Leike, who led OpenAI’s “Superalignment” team with a business co-founder who also left this week, stated in a series of posts on the social media platform X that he joined the San Francisco-based startup because he believed it was the ideal place to conduct AI research.

“However, I have been disagreeing with OpenAI leadership about the company’s core priorities for quite some time, until we finally reached a breaking point,” wrote Leike, who resigned on Thursday.

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A Former OpenAI Leader Says Safety Has ‘Taken A Backseat To Shiny Products’ At The AI Company

By training, Leike, an AI researcher, feels there should be a greater emphasis on preparing for the next generation of AI models, including safety and studying the societal consequences of such technology. He stated that developing “smarter-than-human machines is an inherently dangerous endeavor” and that the company “is shouldering an enormous responsibility on behalf of all of humanity.”

OpenAI must become a safety-first AGI company,” stated Leike, using the shortened term of artificial general intelligence, a futuristic concept of robots that are as generally intelligent as humans or can do many things as well as people.

Open AI CEO Sam Altman responded to Leike’s postings, saying he was “super appreciative” of his efforts to the firm and was “very sad to see him leave.”

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A Former OpenAI Leader Says Safety Has ‘Taken A Backseat To Shiny Products’ At The AI Company

Leike is “right, we have a lot more to do; we are committed to doing it,” Altman added, promising to publish a lengthy post in the coming days

The company also stated on Friday that it has disbanded Leike’s Superalignment team, which was formed last year to focus on AI threats, and will integrate the team’s personnel into its research operations.

Leike resigned after OpenAI co-founder and chief scientist Ilya Sutskever announced his departure on Tuesday after nearly a decade with the company. Sutskever was one of four board members who voted to remove Altman last October, only to quickly reinstall him. Sutskever informed Altman that he was fired last November, although he later admitted he regretted doing so.

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A Former OpenAI Leader Says Safety Has ‘Taken A Backseat To Shiny Products’ At The AI Company

Sutskever stated that he is working on a new project that is meaningful to him but did not provide further specifics. He will be succeeded by Jakub Pachocki as head scientist. Altman described Pachocki as “also easily one of the greatest minds of our generation” and stated that he is “very confident he will lead us to make rapid and safe progress towards our mission of ensuring that AGI benefits everyone.”

On Monday, OpenAI demonstrated the most recent version of its artificial intelligence model, which can emulate human cadences in vocal responses and even attempt to discern people’s moods.

SOURCE – (AP)

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Under Armour Was A Real Threat To Nike. Now It’s Fighting To Stay Relevant

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Under Armour: AP Image

It was previously seen as a viable competitor to Nike. But at the moment, Under Armour, founded by a 23-year-old former collegiate athlete, is struggling to “just do it.”

Instead, the brand championed on the basketball court by Stephen Curry and on the golf course by Jordan Spieth is now struggling — badly — to find its footing in an increasingly competitive and crowded sportswear marketplace for regular people, where younger shoppers are more enamored with newer entrants like Hoka and On running shoes.

Under Armour’s annual sales have been lackluster at best in recent years, and the stock has fallen 88% since its all-time high in 2015. According to industry observers, the company is mired in an uncomfortable mix of challenges, including an identity crisis, many management disputes, neglecting emerging market trends to its harm, and a rapid succession of CEOs.

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Under Armour Was A Real Threat To Nike. Now It’s Fighting To Stay Relevant

One of them is the company’s creator, Kevin Plank, who has returned as CEO for the second time after being removed in 2019. Like Starbucks founder Howard Schultz and Disney CEO Bob Iger, Plank seeks to right the ship at Under Armour.

“When Under Armour was growing at 20% or higher, people saw it as a legitimate competitor to Nike,” said David Swartz, senior equities analyst at Morningstar, in an interview with CNN.

“It was like On or Hoka a decade ago. The upstart athletic brand was making significant advances against Nike, the industry’s main brand. People regarded it as a firm that could break through and take Nike’s market share among serious athletes,” Swartz explained. “That actually did happen for a while, but then that didn’t last.”

Plank founded Under Armour in 1996 to provide what the name implies: a protective layer of clothing worn by competitive athletes sweating it out in the heat of the game.

The initial product was “The Shorty,” a fitted T-shirt composed of moisture-wicking fabric that professional athletes could wear beneath their uniforms to stay dry. The famous Under Armour “U” and “A” logo was deliberately placed on the neckline to keep it visible.

The T-shirt finally propelled the brand to the masses after gaining popularity among elite sportsmen immediately. Under Armour went public in 2005 due to the startup’s rapid success. Its early tagline was “Protect This House.”

By 2010, the company had surpassed $1 billion in revenue. Five years later, revenues topped $4 billion. But then the impetus began to ebb.

Prolonged period of discomfort.

Under Armour has struggled for the past eight years, and the situation does not look to improve.

The company announced a corporate restructuring on Thursday, following a 10% drop in North American revenues in the most recent quarter. The corporation has issued a bleak prediction for the current fiscal year, expecting sales to fall 15% to 17%. Layoffs would be part of the attempt to right the ship, although officials did not say how many people would lose their jobs.

Under Armour has launched a $500 million share buyback program to reward shareholders.

During the earnings call on Thursday, Plank stated that he will lead a business reset that focuses on selling fewer but more innovative products to meet the needs of athletes, significantly accelerating product development, refocusing on the men’s apparel category, and reducing product discounts

“We’re just doing too much stuff. There are too many items and projects. To rebuild this brand, we must be laser-focused and prioritize what needs to be done so that our staff know exactly what to do and have a clear definition of success for them,” Plank added.

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Under Armour Was A Real Threat To Nike. Now It’s Fighting To Stay Relevant

It cannot be denied that management concerns have plagued the company for years, Swartz stated.

“The company has essentially had five CEOs in the past five years, if you count Kevin Plank twice,” stated Swartz. Plank was announced as CEO again in March, following Stephanie Linnartz’s brief year-long stint.

During the analyst call Thursday, Plank admitted that regular C-suite churn has significantly hindered success.

“With several CEOs and heads of product, marketing in North America over the past half-decade, ongoing turnover of critical leadership has been central to our inability to stay agile and decisive,” he stated.

According to Swartz, “things really started to fall apart” at Under Armour beginning in 2016. A major problem developed when an essential distribution route for the company went bankrupt and closed stores.

Under Armour’s products are mostly offered through athletic goods merchants and department stores, such as Macy’s and Kohl’s, as well as online.

“When Sports Authority declared bankruptcy in 2016, Under Armour suffered greatly. It was a significant customer for the brand, as was Dick’s Sporting Goods,” Schwartz stated.

UCLA sued Under Armour in 2020 after terminating a $280 million sponsorship agreement. The lawsuit claimed that Under Armour was struggling before Covid-19 and used the epidemic as an excuse to withdraw from the agreement.

According to Eric Smallwood, president of Apex Marketing Group, a sports and entertainment organization that examines sponsorships and advertising campaigns, the brand’s long-term celebrity-brand collaborations are performing well.

“Under Armour’s partnership with ‘The Rock’, Dwayne Johnson, has been quite successful. They’ve expanded into the United Football League, which Johnson co-owns,” Smallwood explained. “Their uniforms are Under Armour.”

According to Smallwood, the brand is also making advances in golf, and the Stephen Curry alliance has kept it visible in the basketball world.

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CNN – VOR news Image

Under Armour Was A Real Threat To Nike. Now It’s Fighting To Stay Relevant

In 2013, basketball superstar Stephen Curry, probably the finest shooter in history, notably signed for Under Armour over Nike. Meanwhile, Joel Embiid, the brand’s other prominent NBA star, left Under Armour in 2023, just months after being awarded the league’s most valuable player.

Embiid inked a sneaker contract with Skechers last month. Under Armour reportedly bid strongly for WNBA star Caitlin Clark, who is expected to sign with Nike.

“The bottomline for Under Armour is for the brand to be clear about its identity,” he stated. “Are they a shoe company?” Are they an apparel company? Everyone else eventually replicated their moisture-wicking undershirt. Then, perhaps they experienced an identity crisis. It will come down to determining if they want to expand into a lifestyle brand or stick with performance-based products.

SOURCE – (AP)

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

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Boeing 787: Image AP

Boeing whistleblower John Barnett committed suicide, according to a police report released on Friday, bringing an investigation into the shocking death of a longtime employee who raised concerns about the airplane manufacturer’s safety and production standards – and who sued the company, alleging illegal retaliation against him.

Barnett, 62, was discovered dead in a vehicle on March 9 from a self-inflicted gunshot wound in Charleston, South Carolina. Officers were summoned to perform a welfare check on Barnett at a Holiday Inn after he failed to appear for a deposition in his complaint against Boeing, according to his lawyers and a police incident report.

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

When responding officers arrived, they discovered Barnett deceased in the driver’s seat of a truck in the parking lot. He was clutching a firearm. The initial police report also stated a message in the truck.

However, in a statement released after his death, Barnett’s lawyers stated that his deposition was nearing completion and that he appeared to be in high spirits.

“We saw no sign that he would commit suicide. “No one can believe it,” his attorneys, Robert Turkewitz and Brian Knowles, stated in a statement on March 12. “The Charleston police need to investigate this fully and accurately and tell the public what they find out.”

The Charleston Police Department announced Friday that the Charleston County Coroner’s Office had decided that Barnett had committed suicide.

The inquiry revealed that Barnett was shot in the head at close range, with the firearm located in his right hand. A notebook was also discovered in the front seat of the car, indicating that “he was going through a period of serious personal distress,” according to a police press statement.

Police provided CNN with a photograph of a note left in the car, which had several nasty statements addressed at Boeing.

“As this investigation comes to a close, we should not forget it represents the loss of Mr. Barnett’s life,” police stated. “We extend our deepest sympathies to his family during this difficult time and hope they continue to find the strength to persevere in absence.”

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Boeing: Image Reuters

Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Boeing did not immediately respond to requests for comment. In March, the firm expressed its sadness at Barnett’s death.

“Our thoughts are with his family and friends,” the business stated.

Barnett, a former quality manager who had worked at Boeing for decades, told the New York Times in 2019 that he had uncovered dangerous wiring clusters in Boeing’s manufacturing procedures that could have resulted in an aircraft’s catastrophic failure if severed by surrounding metal slivers.

“As a quality manager at Boeing, you’re the last line of defense before a defect makes it out to the flying public,” Barnett told the New York Times. “And I haven’t seen a plane out of Charleston yet that I’d put my name on saying it’s safe and airworthy.”

In a message issued to the facility’s employees and sent to CNN at the time, Brad Zaback, a site leader at the plant and general manager of the 787 program, stated that the Times’ coverage “paints a skewed and inaccurate picture of the program and of our team (at the plant).”

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Boeing 777- AP Image

Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Zaback, who said the Times denied an invitation to tour the company, stated that “quality is the bedrock of who we are” and that the plant produces “the highest-quality airplanes.”

Since Barnett’s original public warnings about Boeing, the corporation has had multiple high-profile safety and quality issues, including the explosion of a door stopper on a 737 Max shortly after takeoff last January. This prompted the US Justice Department to announce that Boeing could face criminal charges for its history of safety issues.

SOURCE – (AP)

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