An anonymous reader quotes a report from VentureBeat: Disney is investing $1.5 billion for an equity stake in Fortnite and Unreal Engine maker Epic Games as part of a broader partnership to create a new Disney gaming universe. The companies plan to create an expansive and open games and entertainment universe. I would say they're building a metaverse, if the word weren't so overused late and out of favor with some. They didn't actually use that word. Bob Iger, CEO of Disney, announced the investment in an interview with CNBC today. The companies will collaborate on a new games and entertainment universe that will further expand the reach of beloved Disney stories and experiences. It will be a multi-year project, built by Epic Games.

"It's not just our parks where we're creating new opportunities for consumers to engage with the characters and franchises they love," Iger said in an analyst call. In our new relationship with Epic Games, we're creating a transformational games and entertainment universe that integrates Disney's world-class storytelling into Epic's cultural phenomenon Fortnite, enabling consumers to play, watch, create, and shop for both digital and physical goods. This marks Disney's biggest entry ever into the world of video games, and offers significant opportunities for growth and expansion. The new immersive universe will unleash their own creativity and experience the Disney stories that they love in groundbreaking new ways."

Iger added, "Younger audiences in particular are huge consumers of video games. In fact, among millennials, Gen Z and Gen Z is a significant amount of time spent on screen-based platforms, playing video games. This new universe from Disney and Epic provides us with a tremendous opportunity to not only meet more consumers where they are and to allow more audiences to cultivate a bond with Disney's iconic brands and franchises, including Marvel, Star Wars, and much more." The $1.5 billion transaction is subject to customary closing conditions, including regulatory approvals. In addition to being a world-class games experience and interoperating with Fortnite, the new persistent universe will offer a multitude of opportunities for consumers to play, watch, shop and engage with content, characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar and more. Fortnite teased the partnership in a new video posted on YouTube. The official announcement can be read here.

An anonymous reader quotes a report from TechCrunch: AI-generated imagery and other forms of deepfakes depicting child sexual abuse (CSA) could be criminalized in the European Union under plans to update existing legislation to keep pace with technology developments, the Commission announced today. It's also proposing to create a new criminal offense of livestreaming child sexual abuse. The possession and exchange of "pedophile manuals" would also be criminalized under the plan -- which is part of a wider package of measures the EU says is intended to boost prevention of CSA, including by increasing awareness of online risks and to make it easier for victims to report crimes and obtain support (including granting them a right to financial compensation). The proposal to update the EU's current rules in this area, which date back to 2011, also includes changes around mandatory reporting of offenses.

Back in May 2022, the Commission presented a separate piece of CSA-related draft legislation, aiming to establish a framework that could make it obligatory for digital services to use automated technologies to detect and report existing or new child sexual abuse material (CSAM) circulating on their platforms, and identify and report grooming activity targeting kids. The CSAM-scanning plan has proven to be highly controversial -- and it continues to split lawmakers in the parliament and the Council, as well as kicking up suspicions over the Commission's links with child safety tech lobbyists and raising other awkward questions for the EU's executive, over a legally questionable foray into microtargeted ads to promote the proposal. The Commission's decision to prioritize the targeting of digital messaging platforms to tackle CSA has attracted a lot of criticism that the bloc's lawmakers are focusing in the wrong area for combatting a complex societal problem -- which may have generated some pressure for it to come with follow-on proposals. (Not that the Commission is saying that, of course; it describes today's package as "complementary" to its earlier CSAM-scanning proposal.) "Fast evolving technologies are creating new possibilities for child sexual abuse online, and raises challenges for law enforcement to investigate this extremely serious and wide spread crime," said Ylva Johansson, commissioner for home affairs, in a statement. "A strong criminal law is essential and today we are taking a key step to ensure that we have effective legal tools to rescue children and bring perpetrators to justice. We are delivering on our commitments made in the EU Strategy for a more effective fight against Child sexual abuse presented in July 2020."

The final shape of the proposals will be determined by the EU's co-legislators in the Parliament and Council. "If/when there's agreement on how to amend the current directive on combating CSA, it would enter into force 20 days after its publication in the Official Journal of the EU," adds TechCrunch.

Meta will start detecting and labeling images generated by artificial intelligence from Google and OpenAI's services, among others. According to Reuters, the company will use a set of invisible markers built into the files to help with the identification process. From the report: Meta will apply the labels to any content carrying the markers that is posted to its Facebook, Instagram and Threads services, in an effort to signal to users that the images -- which in many cases resemble real photos -- are actually digital creations, the company's president of global affairs, Nick Clegg, wrote in a blog post. The company already labels any content generated using its own AI tools. Once the new system is up and running, Meta will do the same for images created on services run by OpenAI, Microsoft, Adobe , Midjourney, Shutterstock and Alphabet's Google, Clegg said.

Apple is making changes to iOS in Europe to comply with the EU's Digital Markets Act cracking down on Big Tech gatekeepers. The act demands interoperability, fairness and privacy measures including allowing competing browser engines on iOS. Despite better browser choice, Google and Mozilla are unhappy with Apple's proposed changes. Mozilla says restricting browser engine integration to EU apps burdens rivals to build separate implementations. Mozilla's comment: "We are still reviewing the technical details but are extremely disappointed with Apple's proposed plan to restrict the newly-announced BrowserEngineKit to EU-specific apps. The effect of this would be to force an independent browser like Firefox to build and maintain two separate browser implementations -- a burden Apple themselves will not have to bear. Apple's proposals fail to give consumers viable choices by making it as painful as possible for others to provide competitive alternatives to Safari. This is another example of Apple creating barriers to prevent true browser competition on iOS." Google's VP of engineering for Chrome, Parisa Tabriz, commented on DeMonte's statement, saying, "Strong agree with Mozilla. Apple isn't serious about supporting web browser or engine choice on iOS. Their strategy is overly restrictive, and won't meaningfully lead to real choice for browser developers."

From mergers to AI, the EU's aggressive rule-making hampers its ability to compete with China and the U.S. Greg Ip, writing for WSJ: These are humbling times for Europe. The continent barely escaped recession late last year as the U.S. boomed. It is losing out to the U.S. on artificial intelligence, and to China on electric vehicles. There is one field where the European Union still leads the world: regulation. Having set the standard on regulating mergers, carbon emissions, data privacy, and e-commerce competition, the EU now seeks to do the same on AI. In December it unveiled a sweeping draft law that bans certain types of AI, tightly regulates others, and imposes huge fines for violators. Its executive arm, the European Commission, might investigate Microsoft's tie-up with OpenAI as potentially anticompetitive. Never before has "America innovates, China replicates, Europe regulates" so aptly captured each region's comparative advantage.

The technocrats who staff the EU in Brussels aren't anti-free market. Just the opposite: they still believe in free trade, unlike the U.S. or China. Much of their regulation is aimed at protecting consumers and competition from meddling national governments. But there's a trade-off between consumer protection and the profit motive that drives investment and innovation, and the EU might be getting that trade-off wrong. For example, to preserve competition, European regulators have resisted mergers that leave just a handful of mobile phone carriers per market. As a result Europe now has 43 groups running 102 mobile operators serving a population of 474 million, while the U.S. has three major networks serving a population of 335 million, according to telecommunications consultant John Strand. China and India are even more concentrated.

European mobile customers as a result pay only about a third of what Americans do. But that's why European carriers invest only half as much per customer and their networks are commensurately worse, Strand said: "Getting a 5G signal in Germany is like finding a Biden supporter at a Trump rally." Putting European networks on a par with the U.S. would cost about $300 billion, he estimated. This has knock-on effects on Europe's tech sector. Swedish telecommunications equipment manufacturer Ericsson's sales in Europe suffer in part because many carriers are too small and unprofitable to update to the latest 5G networks. "Europe has prioritized shorter-term low consumer prices at the expense of quality infrastructure," chief executive Borje Ekholm told me in Davos earlier this month. "I'm very concerned about Europe. We need to invest much more in infrastructure, in being digital."

In the behavior of tech companies, the Atlantic's executive editor warns us about "a clear and coherent ideology that is seldom called out for what it is: authoritarian technocracy. As the most powerful companies in Silicon Valley have matured, this ideology has only grown stronger, more self-righteous, more delusional, and — in the face of rising criticism — more aggrieved." The new technocrats are ostentatious in their use of language that appeals to Enlightenment values — reason, progress, freedom — but in fact they are leading an antidemocratic, illiberal movement. Many of them profess unconditional support for free speech, but are vindictive toward those who say things that do not flatter them. They tend to hold eccentric beliefs.... above all, that their power should be unconstrained. The systems they've built or are building — to rewire communications, remake human social networks, insinuate artificial intelligence into daily life, and more — impose these beliefs on the population, which is neither consulted nor, usually, meaningfully informed. All this, and they still attempt to perpetuate the absurd myth that they are the swashbuckling underdogs.
The article calls out Marc Andreessen's Techno-Optimist Manifesto for saying "We believe in adventure... rebelling against the status quo, mapping uncharted territory, conquering dragons, and bringing home the spoils for our community..." (The Atlantic concludes Andreessen's position "serves only to absolve him and the other Silicon Valley giants of any moral or civic duty to do anything but make new things that will enrich them, without consideration of the social costs, or of history.")

The article notes that Andreessen "also identifies a list of enemies and 'zombie ideas' that he calls upon his followers to defeat, among them 'institutions' and 'tradition.'" But the Atlantic makes a broader critique not just of Andreessen but of other Silicon Valley elites. "The world that they have brought into being over the past two decades is unquestionably a world of reckless social engineering, without consequence for its architects, who foist their own abstract theories and luxury beliefs on all of us..." None of this happens without the underlying technocratic philosophy of inevitability — that is, the idea that if you can build something new, you must. "In a properly functioning world, I think this should be a project of governments," [Sam] Altman told my colleague Ross Andersen last year, referring to OpenAI's attempts to develop artificial general intelligence. But Altman was going to keep building it himself anyway. Or, as Zuckerberg put it to The New Yorker many years ago: "Isn't it, like, inevitable that there would be a huge social network of people? ... If we didn't do this someone else would have done it."
The article includes this damning chat log from a 2004 conversation Zuckerberg had with a friend:

Zuckerberg: If you ever need info about anyone at Harvard.
Zuckerberg: Just ask.
Zuckerberg: I have over 4,000 emails, pictures, addresses, SNS
Friend: What? How'd you manage that one?
Zuckerberg: People just submitted it.
Zuckerberg: I don't know why.
Zuckerberg: They "trust me"
Zuckerberg: Dumb fucks.'

But the article also reminds us that in Facebook's early days, "Zuckerberg listed 'revolutions' among his interests." The main dangers of authoritarian technocracy are not at this point political, at least not in the traditional sense. Still, a select few already have authoritarian control, more or less, to establish the digital world's rules and cultural norms, which can be as potent as political power...

[I]n recent years, it has become clear that regulation is needed, not least because the rise of technocracy proves that Silicon Valley's leaders simply will not act in the public's best interest. Much should be done to protect children from the hazards of social media, and to break up monopolies and oligopolies that damage society, and more. At the same time, I believe that regulation alone will not be enough to meaningfully address the cultural rot that the new technocrats are spreading.... We do not have to live in the world the new technocrats are designing for us. We do not have to acquiesce to their growing project of dehumanization and data mining. Each of us has agency.

No more "build it because we can." No more algorithmic feedbags. No more infrastructure designed to make the people less powerful and the powerful more controlling. Every day we vote with our attention; it is precious, and desperately wanted by those who will use it against us for their own profit and political goals. Don't let them.

• The article specifically recommends "challenging existing norms about the use of apps and YouTube in classrooms, the ubiquity of smartphones in adolescent hands, and widespread disregard for individual privacy. People who believe that we all deserve better will need to step up to lead such efforts."
• "Universities should reclaim their proper standing as leaders in developing world-changing technologies for the good of humankind. (Harvard, Stanford, and MIT could invest in creating a consortium for such an effort — their endowments are worth roughly $110 billion combined.)"

James Cameron tells Vanity Fair's Nick Bilton that his experience with Apple's Vision Pro "was religious. I was skeptical at first. I don't bow down before the great god of Apple, but I was really, really blown away... I think it's not evolutionary; it's revolutionary. And I'm speaking as someone who has worked in VR for 18 years." He explained that the reason it looks so real is because the Apple Vision Pro is writing a 4K image into my eyes. "That's the equivalent of the resolution of a 75-inch TV into each of your eyeballs — 23 million pixels." To put that into perspective, the average 4K television has around 8 million pixels. Apple engineers didn't slice off a rectangle from the corner of a 4K display and put it in the Apple Vision Pro. They somehow compressed twice as many pixels into a space as small as your eyeball. This, to people like Cameron who have been working in this space for two decades, "solves every problem."

But even with all this wonder, with 23 million pixels that are so clear and crisp that you can't tell reality from a digital composite of it.... the more I've used the Apple Vision Pro over the past two weeks, the more one glaring problem revealed itself to me. It's not the weight (which is a problem but will come down over time), or the size (which will shrink with each iteration), or the worry that it will drive us to consume more content alone (almost half of Americans already watch TV alone). Or how tech giants like Meta, Netflix, Spotify, and Google are currently withholding their apps from the device. (Content creators may come around once the consumers are there, and some, like Disney, are already embracing the device, making 150 movies available in 3D, including from mega-franchises like Star Wars and Marvel.) And it's not even the price, because if Apple wanted to, the company could subsidize the cost of the Apple Vision Pro and it would have about as much financial impact as Cook losing a nickel between his couch cushions.

I'm talking about something that I don't see a solution for... I can see a day when we all can't imagine living without an augmented reality. When we're enveloped more and more by technology, to the point that we crave these glasses like a drug, like we crave our iPhones today but with more desire for the dopamine hit this resolution of AR can deliver. I know deep down that the Apple Vision Pro is too immersive, and yet all I want to do is see the world through it. "I'm sure the technology is terrific. I still think and hope it fails," one Silicon Valley investor said to me. "Apple feels more and more like a tech fentanyl dealer that poses as a rehab provider." Harsh words, but he feels what we all feel, a slave to our smartphone, and he's seen this play before and he knows what the first act is like, and the second act, and he knows how it ends.

• Political blogger Taegan Goddard says the Vision Pro "offers a glimpse of how we might use computers in the future. If you're skeptical — and many people are — you need to try it before drawing any conclusions. It's hard to explain unless you've worn it. But I can assure you, it's mind-blowing."

• Apple CEO Tim Cook tells Bilton "You can actually lay on your sofa and put the displays on your ceiling if you wish. I watched the third season of Ted Lasso on my ceiling and it was unbelievable!"

• Dan Ives, a senior analyst at the investment firm Wedbush Securities, tells Bilton, "We think a few years from now it'll resemble sunglasses and be less than $1,500."

In an effort to boost tourism and innovation, Japan will launch a new visa program for digital nomads, allowing remote workers to work in the country for up to six months while enjoying sightseeing trips. Tech Times reports: Starting from the end of March, Japan will introduce a unique visa status aimed at IT engineers and remote workers employed by overseas companies. The program is designed to cater to the evolving work landscape, recognizing the surge in digital nomads-individuals who can seamlessly work from anywhere in the world. Nikkei Asia (paywalled) tells us that to be eligible for this digital nomad visa, applicants must boast an annual income of at least 10 million yen ($68,000).

Citizens from 50 countries and regions, including the U.S., Australia, and Singapore, which have existing visa waiver agreements with Japan, can apply. Private health insurance is a prerequisite, ensuring the well-being of the visa holders during their stay. Self-employed individuals engaged in overseas business can also benefit from this innovative program. Moreover, they have the option to bring their family members along, provided they are covered by private health insurance.

While the program offers the freedom to explore Japan, it has unique conditions. Digital nomads under this visa will not receive a residence card or certificate, limiting access to specific government benefits. The visa is non-renewable, requiring reapplication after a six-month interval, and applicants must spend that time outside the country. Japan joins the ranks of over 50 countries issuing digital nomad visas. Notably, South Korea allows up to two years, while Taiwan offers a three-year stay, with the possibility of permanent residency. The diverse offerings cater to digital nomads' varied needs and preferences, seeking a balance between work and exploration.

Ivan Mehta reports via TechCrunch: Nearly a week after Apple announced big changes to the App Store because of the European Union's Digital Markets Act (DMA) rules, the company said that the market represents 7% of its global App Store revenues. The company's chief financial officer Luca Maestri said that the monetary impact of these changes will depend on choices made by developers to adopt different systems. "A lot will depend on the choices that will be made. Just to keep it in context, the changes applied to the EU market, which represents roughly 7% of our global app store revenue," he said in reply to an analyst's question.

Because of DMA, Apple has to allow alternative app stores and let developers use third-party payment processors. The company plans to charge a core tech fee if an app crosses a million annual downloads across different app stores. Amid these changes, Apple noted a record quarter for App Store revenues. The company's overall services revenue was $23.1 billion with an 11% jump year-on-year. Apple continued its narrative of defending the App Store and its commission ecosystem by saying that it provides the best privacy and security. CEO Tim Cook emphasized that the company will fall short of providing the best experience to users because of these changes.

"If you think about what we've done over the years is, we've really majored on privacy, security and usability. And we've tried our best to get as close to the past in terms of the things that are -- that people love about our ecosystem as we can, but we are going to fall short of providing the maximum amount that we could supply, because we need to comply with the regulation," he said.

An anonymous reader quotes a report from Wired: A California teenager prosecutors say is responsible for hundreds of swatting attacks around the United States was exposed after law enforcement pieced together a digital trail left on some of the internet's largest platforms, according to court records released this week. Alan Winston Filion, a 17-year-old from Lancaster, California, faces four felony charges in Florida's Seminole County related to swatting, or fake threats called into the police to provoke a forceful response, according to Florida state prosecutors. Police arrested Filion on January 18, and he was extradited to Seminole County this week.

Filion's arrest, first reported by WIRED on January 26, marks the culmination of a multi-agency manhunt for the person police claim is responsible for swatting attacks on high schools, historically black colleges and universities, mosques, and federal agents, and for threats to bomb the Pentagon, members of the United States Senate, and the US Supreme Court. Ultimately, a YouTube channel, Discord chats, and usernames related to The Lord of the Rings helped lead authorities to Filion's doorstep.

Florida prosecutors charged Filion with four felony counts, including three related to allegedly making false reports to law enforcement and one for unlawful use of a two-way radio for "facilitating or furthering an act of terrorism" that authorities say targeted people based on race, religion, or other protected classes. While prosecutors alleged that Filion "is responsible for hundreds of swatting and bomb threat incidents throughout the United States," the charges Filion faces relate to a single May 12, 2023, swatting attack against the Masjid Al Hayy Mosque in Sanford, Florida. [...] At 2 pm EST on Wednesday, Filion shuffled into a Seminole County courtroom and stood quietly as the judge read the charges against him. He is currently being held without bond.

Mozilla claims in a new 74-page research report that Microsoft "repeatedly uses harmful design" and "dark patterns" to push users toward Microsoft Edge and away from rival browsers like Mozilla's Firefox or Google's Chrome browser. PCMag: "Microsoft uses the harmful preselection, visual interference, trick wording, and disguised ads patterns to skew user choice," the report argues, adding that "Microsoft's harmful design practices mean users are unable to download, install, use, or set as default an alternative browser without interference." The researchers claim this harms consumers because they can experience "distortion of choice," lose trust in the broader tech industry, and even possibly experience "emotional distress" as a result of Microsoft's efforts.

For the study, user experiences were tested on Windows 10 Home and Windows 11 Pro as well as the Windows 11 Home Insider Preview Version. The UK-based testers did not attempt to use a VPN to change or hide their IP addresses during their investigation. While Microsoft recently said it will allow users in the European Union to uninstall Edge as part of its efforts to comply with the Digital Markets Act (DMA), it's unclear whether US, UK, or other users around the globe could ever get the same option. Some Windows 11 users can remove five other apps that come preinstalled, however.

Cybercriminals are selling ready-made "pig-butchering" scam kits on the dark web to conduct "DeFi savings" cryptocurrency fraud, according to Sophos. The kits expedite scamming worldwide. In these scams, criminals build online relationships then persuade victims to invest in fake crypto schemes, manipulating them to drain digital wallets. The bundled kits contain websites enabling wallet access via Ethereum blockchain plus chat support posing as technical staff. Victims open legitimate crypto apps but enter malicious sites letting criminals steal funds. The report details the mass distribution of these DIY crypto fraud kits.

YouTube has announced it has surpassed 100 million YouTube Music and YouTube Premium subscribers globally. Variety reports: The 100 million figure includes uses who are on free trials, according to YouTube. The company didn't break down how many are on YouTube Music versus YouTube Premium, the subscription service for ad-free viewing, background listening, offline video downloads and full access to YouTube Music. In November 2022, the company said YouTube Music and YouTube Premium topped 80 million paying subscribers combined.

The announcement comes after Alphabet, in reporting fourth-quarter 2023 earnings, boasted that YouTube and Google subscription services generated more than $15 billion in revenue last year. That includes YouTube Premium and YouTube Music, as well as YouTube TV and Google One cloud storage.

Russia is facing a widespread internet outage that's affected users across the country, with access to websites on the local .ru domain down. From a report: The issue was linked to a technical problem with the .ru domain's global Domain Name System Security Extensions, or DNSSEC, which is used to secure data exchanged in internet protocol networks, Russia's Digital Ministry said in a statement on Telegram Tuesday. Websites including the most popular local search engine Yandex.ru, ecommerce leaders Ozon.ru and Wildberries.ru, and apps of the country's biggest banks -- Sberbank PJSC and VTB Group -- were all affected, state-run Ria reported, citing Downradar, a traffic monitoring service.

Japan is aiming to phase out floppy disks and CD-ROMs, which until now were forms of physical media required for submitting some official documents to the government. Engadget reports: Back in 2022, Minister of Digital Affairs Taro Kono urged various branches of the government to stop requiring businesses to submit information on outdated forms of physical media. The Ministry of Economy, Trade and Industry (METI) is one of the first to make the switch. "Under the current law, there are many provisions stipulating the use of specific recording media such as floppy disks regarding application and notification methods," METI said last week, according to The Register. After this calendar year, METI will no longer require businesses to submit data on floppy disks under 34 ordinances. The same goes for CD-ROMs when it comes to an unspecified number of procedures. There's still quite some way to go before businesses can stop using either format entirely, however.

Kono's staff identified some 1,900 protocols across several government departments that still require the likes of floppy disks, CD-ROMs and even MiniDiscs. The physical media requirements even applied to key industries such as utility suppliers, mining operations and aircraft and weapons manufacturers. There are a couple of main reasons why there's a push to stop using floppy disks, as SoraNews24 points out. One major factor is that floppy disks can be hard to come by. Sony, the last major manufacturer, stopped selling them in 2011. Another is that some data types just won't fit on a floppy disk. A single photo can easily be larger than the format's 1.4MB storage capacity.

"Companies that once serviced the boom in cryptocurrency mining are pivoting to take advantage of the latest data gold rush," reports the Guardian. Canadian company Hive Blockchain changed its name in July to Hive Digital Technologies and announced it was pivoting to AI. "Hive has been a pioneering force in the cryptocurrency mining sector since 2017. The adoption of a new name signals a significant strategic shift to harness the potential of GPU Cloud compute technology, a vital tool in the world of AI, machine learning and advanced data analysis, allowing us to expand our revenue channels with our Nvidia GPU fleet," the company said in its announcement at the time. The company's executive chairman, Frank Holmes, told Guardian Australia the transition required a lot of work. "Moving from mining Ethereum to hosting GPU cloud services involves buying powerful new servers for our GPUs, upgrading networking equipment and moving to higher tier data centres," he said.

"The only commonality is that GPUs are the workhorses in both cases. GPU cloud requires higher end supporting hardware and a more secure, faster data centre environment. There's a steep learning curve in the GPU cloud business, but our team is adapting well and learning fast."

For others, like Iris Energy, a datacentre company operating out of Canada and Texas, and co-founded by Australian Daniel Roberts, it has been the plan all along. Iris did not require any changes to the way the company operated when the AI boom came along, Roberts told Guardian Australia. "Our strategy really has been about bootstrapping the datacentre platform with bitcoin mining, and then just preserve optionality on the whole digital world. The distinction with us and crypto-miners is we're not really miners, we're datacentre people." The company still trumpets its bitcoin mining capability but in the most recent results Iris said it was well positioned for "power dense computing" with 100% renewable energy. Roberts said it wasn't an either-or situation between bitcoin mining and AI.

"I think when you look at bitcoin versus AI, the market will just reach equilibrium based on the market-based demands for each product," he said... Holmes said Hive also saw the two industries operating in parallel. "We love the bitcoin mining business, but its revenue is rather unpredictable. GPU cloud services should complement it well," he said.
Thanks to long-time Slashdot reader mspohr for sharing the article.

In a change that reflects AI's growing influence -- and potentially disruptive power -- in Hollywood, Netflix added generative AI to the list of potential risk factors on its annual report filed with the SEC. From a report: In Netflix's 10-K report filed Friday, it added this new section to the long section of risk factors (which are required under SEC rules) in the section about video competition: "[N]ew technological developments, including the development and use of generative artificial intelligence, are rapidly evolving. If our competitors gain an advantage by using such technologies, our ability to compete effectively and our results of operations could be adversely impacted."

Netflix also added this wording: "In addition, the use or adoption of new and emerging technologies may increase our exposure to intellectual property claims, and the availability of copyright and other intellectual property protection for AI-generated material is uncertain." Aside from those two sections, the risk factors on Netflix's 10-K for 2023 -- totaling some 10,000 words -- remained largely the same. To be sure, the changes here are very small, in the grand scheme of things. And keep in mind that these are all the potential risk factors that companies like Netflix must communicate to investors.

Apple faces strong action if changes to its App Store do not meet incoming European Union regulations, the bloc's industry chief said on Friday. Reuters: In a move designed to comply with the EU's incoming Digital Markets Act (DMA), the company will soon allow software developers to distribute their apps to Apple devices via alternative stores. From early March, developers will be able to offer alternative app stores on iPhones and opt out of using Apple's in-app payment system, which charges commissions of up to 30%.

However, critics have said the changes do not go far enough, arguing Apple's fee structure remains unfair, and that the changes may be in violation of the DMA. Asked about Apple's plans, EU industry chief Thierry Breton exclusively told Reuters: "The DMA will open the gates of the internet to competition so that digital markets are fair and open. Change is already happening. As from 7 March we will assess companies' proposals, with the feedback of third parties." He added: "If the proposed solutions are not good enough, we will not hesitate to take strong action."

In response to new EU regulations, Apple on Thursday outlined plans to allow iOS developers to distribute apps outside the App Store starting in March, though developers must still submit apps for Apple's review and pay commissions. Now critics say the changes don't go far enough and Apple retains too much control.

Epic Games CEO Tim Sweeney: They are forcing developers to choose between App Store exclusivity and the store terms, which will be illegal under DMA (Digital Markets Act), or accept a new also-illegal anticompetitive scheme rife with new Junk Fees on downloads and new Apple taxes on payments they don't process. 37signals's David Heinemeier Hansson, who is also the creator of Ruby on Rails: Let's start with the extortion regime that'll befell any large developer who might be tempted to try hosting their app in one of these new alternative app stores that the EU forced Apple to allow. And let's take Meta as a good example. Their Instagram app alone is used by over 300 million people in Europe. Let's just say for easy math there's 250 million of those in the EU. In order to distribute Instagram on, say, a new Microsoft iOS App Store, Meta would have to pay Apple $11,277,174 PER MONTH(!!!) as a "Core Technology Fee." That's $135 MILLION DOLLARS per year. Just for the privilege of putting Instagram into a competing store. No fee if they stay in Apple's App Store exclusively.

Holy shakedown, batman! That might be the most blatant extortion attempt ever committed to public policy by any technology company ever. And Meta has many successful apps! WhatsApp is even more popular in Europe than Instagram, so that's another $135M+/year. Then they gotta pay for the Facebook app too. There's the Messenger app. You add a hundred million here and a hundred million there, and suddenly you're talking about real money! Even for a big corporation like Meta, it would be an insane expense to offer all their apps in these new alternative app stores.

Which, of course, is the entire point. Apple doesn't want Meta, or anyone, to actually use these alternative app stores. They want everything to stay exactly as it is, so they can continue with the rake undisturbed. This poison pill is therefore explicitly designed to ensure that no second-party app store ever takes off. Without any of the big apps, there will be no draw, and there'll be no stores. All of the EU's efforts to create competition in the digital markets will be for nothing. And Apple gets to send a clear signal: If you interrupt our tool-booth operation, we'll make you regret it, and we'll make you pay. Don't resist, just let it be. Let's hope the EU doesn't just let it be. Coalition of App Fairness, an industry body that represents over 70 firms including Tinder, Spotify, Proton, Tile, and News Media Europe: "Apple clearly has no intention to comply with the DMA. Apple is introducing new fees on direct downloads and payments they do nothing to process, which violates the law. This plan does not achieve the DMA's goal to increase competition and fairness in the digital market -- it is not fair, reasonable, nor non-discriminatory," said Rick VanMeter, Executive Director of the Coalition for App Fairness.

"Apple's proposal forces developers to choose between two anticompetitive and illegal options. Either stick with the terrible status quo or opt into a new convoluted set of terms that are bad for developers and consumers alike. This is yet another attempt to circumvent regulation, the likes of which we've seen in the United States, the Netherlands and South Korea. Apple's 'plan' is a shameless insult to the European Commission and the millions of European consumers they represent -- it must not stand and should be rejected by the Commission."

Starting today Apple is opening up its App Store to allow game streaming apps and services. From a report: This means that services like Xbox Cloud Streaming and GeForce Now, which previously were only accessible on iOS via a web browser, will be able to offer full-featured apps. "Developers can now submit a single app with the capability to stream all of the games offered in their catalog," Apple wrote in a blog post. These changes apply "worldwide," according to the company.

In 2020, Apple appeared to have carved out a space for these cloud gaming services in the App Store. But that turned out not to be the case, as all games available through each service had to be submitted and reviewed as a standalone app. So the shift to allow one app with a large catalog of games marks a major change. As part of today's announcement, Apple said that "each experience made available in an app on the App Store will be required to adhere to all App Store Review Guidelines and its host app will need to maintain an age rating of the highest age-rated content included in the app." Apple also says that developers will now "be able to provide enhanced discovery opportunities for streaming games, mini-apps, mini-games, chatbots, and plug-ins that are found within their apps," and that "mini-apps, mini-games, chatbots, and plug-ins will be able to incorporate Apple's In-App Purchase system to offer their users paid digital content or services for the first time, such as a subscription for an individual chatbot."