Tech Brew Ride Home - Tue. 08/18 – Apple Goes Nuclear Against Epic Games

Starting point is 00:00:00 On April 4th, 2023, around 2 in the morning, a man was found stabbed multiple times on a sidewalk in downtown San Francisco. Hey, who did this to you? What happened next turned the story into a political firestorm. Reports have identified the victim as Bob Lee, the founder of Cash App. From Bloomberg Podcasts, this is Foundering, the Killing of Bob Lee, beginning April 16. Welcome to the TechMeme right home for Tuesday, August 18th, 2020. I'm Brian McCullough today. Apple has chosen the tactical nuclear option in its battle with Epic games, but Epic might rally a Rebel Alliance. Would Oracle buying TikTok make any sense to anyone? Uber and Lyft consider reverting to the business model they claimed they operated all along, and algorithms can be good for humanity. Here's what you missed today in the world of tech. Remember last week when Gruber was talking about how Apple had not yet gone nuclear on Epic Games, even though it could at any time? Yeah, well, this is pretty close to the nuclear option.

Starting point is 00:01:18 Epic Games says Apple has informed it that all of Epic's iOS and Mac developer accounts will be terminated on August 28th. So not just Fortnite. Everything Epic does could potentially be locked out of the App Store. or at least in the sense of supporting or adding new stuff. Epic has asked a court to issue a restraining order to prevent this from happening, quoting the verge. Apple will terminate Epic's inclusion in the Apple Developer Program, a membership that's necessary to distribute apps on iOS devices, or use Apple developer tools if the company does not, quote,

Starting point is 00:01:53 cure your breaches to the agreement within two weeks, according to a letter from Apple that was shared by Epic. Epic won't be able to notarize Mac apps either, a process that could make installing Epic's software more difficult or block it altogether. Apple requires that all apps are notarized before they can be run on newer versions of macOS, even if they're distributed outside the app store. Epic has filed for a preliminary injunction against Apple asking the court to stop the company from cutting it off. Epic says it will be, quote, irreparably harmed long before final judgment comes if it does not obtain the injunction.

Starting point is 00:02:29 Quote, Apple's actions will irreparably damage Epic's reputation among Fortnite users and be catastrophic for the future of the separate Unreal Engine business, Epic writes. Epic also asks for Fortnite, with its lowered prices and alternate payment option, to be returned to the App Store. Cutting Epic out of the developer program entirely would be a significant escalation in an already high-stakes battle. The developer program is the gateway to publishing apps on Apple's platforms, and the ubiquity of Epic's Unreal Engine

Starting point is 00:02:58 could lead to problems that reach far beyond Epic itself. The Unreal Engine is a hugely popular free-to-start game engine that's widely used by developers. Many games inside Apple's own Apple Arcade subscription service rely on the Unreal Engine, and theoretically, those developers would struggle to build new iOS games or create updates if Apple cuts off access to the software, end quote. Yeah, see what I mean by the nuclear option here.

Starting point is 00:03:23 Apple is applying a bit of leverage itself. Okay, Epic, you think you're in control of your own destiny with Fortnite, that's fine, but we're willing to break games across the entire gaming industry just in order to get you to get in line. For its part, this is a statement Apple made to the verge. The App Store is designed to be a safe and trusted place for users and a great business opportunity for all developers. Epic has been one of the most successful developers, on the App Store growing into a multi-billion dollar business that reaches millions of iOS customers around the world. We very much want to keep the company as part of the Apple Developer Program and their apps on the store. The problem Epic has created for itself is one that can

Starting point is 00:04:08 easily be remedied if they submit an update of their app that reverts it to comply with the guidelines they agreed to and which apply to all developers. We won't make an exception for Epic because we don't think it's right to put their business interests ahead of the guidelines that protect our customers, end quote. Meanwhile, according to the information, Epic has been reaching out to other tech companies, including Spotify, about forming some sort of alliance of companies critical of Apple's App Store policies, which I assumed was part of Epic's game plan from day one. But also, speaking of leverage, what if all of the sudden a Rebel alliance is formed and you not only couldn't play Fortnite on your iPhone, but suddenly couldn't play Spotify, couldn't, I don't

Starting point is 00:04:54 know, use Netflix or use office apps on your iOS devices. As Steve Trotton Smith tweeted, quote, luckily Apple hasn't pissed off Microsoft, Amazon, Spotify, Valve, Google, Facebook, Netflix, recently. Oh. It wouldn't be hard to form a coalition if everybody wasn't so scared of how Apple would react, end quote. But here's the details from the information, EPC has recently had preliminary discussions about the coalition with music streaming company Spotify, another well-known critic of Apple's business practices. But the music streaming company hadn't yet signed on to join it as of last week, one of the people said. The game maker also approached Sonos, the maker of connected stereo equipment,

Starting point is 00:05:36 which is considering joining the group. Another one of the people said, one executive at a prominent video game maker who declined to be named said he supported the goal of pressuring Apple to lower its commissions on App Store transactions at the same time, the executive expressed serious reservations about any coordination among companies that involves pressing Apple for lower prices, saying that he worried such an effort could itself violate antitrust laws. This executive hadn't discussed joining the group with Epic.

Starting point is 00:06:04 Several big tech companies also have concerns about Apple's App Store policies, but may be reluctant to join any formal group because they are facing their own antitrust probes. Still, Epic's campaign has already spurred some of them to step up their criticisms of Apple's practices. On Friday, Facebook publicly called out Apple for taking its 30% cut from a new feature that lets people host paid virtual events through the Facebook app. Facebook sped up the timing of the planned announcement after seeing Epic Attack Apple the day before, according to people familiar with the matter, end quote. Meanwhile, with that other big brouhaha we've been watching, sources are telling the financial times that Oracle has been working with U.S. investors

Starting point is 00:06:50 who already have a stake in bite dance, to put together a deal to acquire TikTok's operations in the U.S., Canada, Australia, and New Zealand. Which, Oracle? Oracle? If Microsoft, as a home for TikTok, didn't make much sense to you, then Oracle definitely doesn't, right? Unless they're just interested in keeping it out of Microsoft's hands? I don't know. Quote, the tech company co-founded by Larry Ellison had held preliminary talks with TikTok's

Starting point is 00:07:17 Chinese owner, Bite Dance, and was seriously considering, purchasing the apps operations in the U.S., Canada, Australia, and New Zealand, the people said. Oracle was working with a group of U.S. investors that already own a stake in BightDance, including General Atlantic and Sequoia Capital, the people added. The entry of Oracle into the race provided BightDance with a credible alternative to Microsoft's offer, said one person with direct knowledge of the matter. Twitter had also held early stage talks with TikTok, but there were serious concerns about the U.S. social media group's ability to finance the deal, said people briefed

Starting point is 00:07:46 about the matter, end quote. But still, Oracle, really, as R.A. Levy tweeted, because when I think relational databases, first thing that comes to mind is, but as Sarah Fryer tweeted, I did not see this coming, probably because I was thinking about business model versus politics. Oracles Ellison has a good relationship with Trump, end quote. Yes, Larry Ellison has held fundraisers for the Trump campaign in the past, so maybe that bridge building is about to pay off in the weirdest possible way. Whole slew of tiny Apple items here. First, Apple has renamed Beets 1, its streaming radio station, to Apple Music One, and at the same time launched two new radio stations, Apple Music Hits,

Starting point is 00:08:40 and Apple Music Country. Also, according to a memo seen by Bloomberg, you now have a longer window during which you can sign up for AppleCare Plus. Quote, Apple on Monday, told retail and customer support employees that the company is expanding the time period when customers can subscribe to its AppleCare Plus service. Consumers currently have a chance to sign up to the warranty and support program within 60 days of buying an Apple product. This subscription window is increasing to up to a year now in the U.S. and Canada.

Starting point is 00:09:08 This gives customers another opportunity to protect their device and have access to all the AppleCare Plus benefits, Apple wrote in a memo to staff seen by Bloomberg News. The company told employees, the offer is available to customers who pay for AppleCare Plus in full versus monthly payments or for those that subscribe via installments on the Apple card credit card, end quote. And finally, Apple has launched its first bundle for Apple TV plus subscribers. Now in the U.S. only. If you are a current subscriber to Apple TV Plus, you can subscribe to CBS All Access and Showtime for $9.99 per month via Apple TV channels. a 50% savings over buying both channels separately, and both will show up conveniently as Apple TV channels inside the Apple TV framework.

Starting point is 00:10:00 File this in the running counter to the COVID-era drawer, I guess. Amazon says it is expanding its physical offices, planning to add 3,500 corporate employees in six major cities, Phoenix, San Diego, Denver, Detroit, and Dallas, and 2,000 jobs here in New York City. quoting the Wall Street Journal. The Seattle Company's plans contrast with those of some other major tech companies during the coronavirus pandemic, which have embraced remote work for the long term. That has included Facebook, which in May said it would shift toward a substantially remote workforce over the next decade, and Twitter, which told employees they can work from home indefinitely. Amazon, which was early in sending employees home when the pandemic hit, is allowing staff who can work from home to do so until January 8. The company, however, expects much of its staff to one day return

Starting point is 00:10:49 to its offices. Vice President of Workforce Development, Ardeen Williams said, quote, the ability to connect with people, the ability for teams to work together in an ad hoc fashion, you can do it virtually, but it isn't as spontaneous, Ms. Williams said in an interview. We are looking forward to returning to the office, end quote. Amazon is adding more than 900,000 square feet across the six locations where it is expanding. The New York space alone totals 630,000 square feet, end quote. And following up on that story about California may be finally forcing ride-hale drivers to be classified as employees, sources are telling the New York Times that Uber and Lyft are considering a franchise-like model in California,

Starting point is 00:11:35 where they would license their brands to operators of vehicle fleets. Quote, the change would resemble an independently operated franchise allowing Uber and Lyft to keep an arm's-length association with drivers so that the companies would not need to employ them and pay their benefits. The idea would effectively be a return to the days of how groups of black cars were run. Lyft has presented the plan to its board of directors, one person said. Uber, which already works with fleet operators in Germany and Spain, is also familiar with the business model. The companies have not committed to the franchise-like plans, said the people with knowledge of the discussions who asked to remain anonymous because the details are confidential. Uber and Lyft are waiting to see how California's legal situation around drivers, who have been treated as independent contractors plays out first, they said, end quote.

Starting point is 00:12:19 Yes, the advantage here is licensing a brand or doing a franchise is basically a pure margin business, which is what Uber and Lyft are after in the first place, right? No need to own vehicles or pay labor, that's the dream. But also, one could argue, and many have argued, that this is what Uber and Lyft as businesses should have been from the get-go. Like, they chose to go for the maximalist force and monopoly so we can take over all of transportation, business model, but in essence, what their product has been from day one was nothing more than a clever software layer to make sure you never had to hunt for a cab when you needed one. There is a universe where they only ever were software companies, taking maybe, I don't know,

Starting point is 00:13:04 a 15 to 5% take on rides and never did anything more than allow cab fleets to be more efficient. That's not a $50 billion business, I suppose, but it would still have been a decent business. as Alex B tweeted, quote, Uber to switch to the business model it argued for a decade it already had. This would be a tech company. Uber would offer a digital platform so drivers can meet and pick up people with their own conditions, end quote. Finally, we spoke yesterday about algorithms, sometimes being bad for use cases involving, you know, humans. But here's the inverse of that. A joint project between Facebook and NYU researchers suggests,

Starting point is 00:13:49 AI can make MRI scans up to four times faster by predicting the final scan from less data. Thus, you would have to spend less time in those uncomfortable tubes, quoting the verge. The work is a collaborative project called Fast MRI between Facebook's AI research team Fair and radiologists at NYU Langone Health. Together, the scientists trained a machine learning model on pairs of low-resolution and high-resolution MRI scans using this model to predict what final MRI scans. using this model to predict what final MRI scans look like from just a quarter of the usual input data. That means scans can be done faster, meaning less hassle for patients and quicker diagnoses.

Starting point is 00:14:28 It's a major stepping stone to incorporating AI into medical imaging. Nafisa Yakabova, a visiting biomedical AI researcher at Fair who worked on the project tells the verge. The reason artificial intelligence can be used to produce the same scans from less data is that the neural networks have essentially learned an abstract idea of what a medical scan looks like by examining the training data. It then uses this to make a prediction about the final output. Think of it like an architect who's designed lots of banks over the years. They have an abstract idea of what a bank looks like, and so they can create a final blueprint faster. The Neuronet knows about the overall structure of the medical image. Dan Sotickson,

Starting point is 00:15:07 Professor of Radiology at NYU Langone Health, tells the verge. In some ways, what we're doing is filling in what is unique about this particular patient scan based on the data, end quote. That's all for today, running a tad late, so just, you know, talk to you tomorrow.

Tech Brew Ride Home - Tue. 08/18 – Apple Goes Nuclear Against Epic Games

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