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Crypto Trader Eisenberg Convicted of Fraud in $110 Million Mango Markets Scheme

Par : msmash
18 avril 2024 à 20:01
A jury found Avraham "Avi" Eisenberg guilty on all three counts of fraud and manipulation in a $110 million crypto trade scheme using the Mango Markets platform. Axios: The case was the first known test for a jury to decide whether existing U.S. laws governing fraud and market manipulation apply to the world of decentralized finance (DeFi). The 28-year-old Eisenberg will be held to account for his actions on Oct. 11, 2022, when a series of trades he made intentionally boosted the price of Mango Markets' native token, MNGO, as well as the price of futures contracts. He used the inflated futures holdings as collateral to borrow other cryptocurrencies on the platform, then quickly withdrew those assets and walked away from his collateral. Eisenberg never disputed the facts of the strategy but contended that what he did was legal and permitted by the DeFi protocol, a principle in the industry known as "code is law." U.S. laws apply to DeFi: "Avraham Eisenberg ran a con," prosecutors said Wednesday, during closing arguments, continuing its momentum from last week. The word "con" was used at least six more times in those remarks.

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Escobar Brother Barred by EU Court From Trademarking Family Name

Par : msmash
17 avril 2024 à 17:22
Pablo Escobar, the name of the late Colombian drug kingpin, can't be registered as a trademark in the European Union after judges said that approving his brother's bid would go against "principles of morality." From a report: The public "associate that name with drug trafficking and narco-terrorism and with the crimes and suffering resulting therefrom, rather than with his possible good deeds in favor of the poor in Colombia," the EU's General Court in Luxembourg said on Wednesday. Trademarking the name is "counter to the fundamental values and moral standards prevailing within Spanish society," the court said.

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Judge Refuses To Ctrl-Z Divorce Order Made By a Misclick

Par : BeauHD
16 avril 2024 à 22:00
Richard Currie reports via The Register: A simple misclick at a London law firm led to a surprise divorce for an unsuspecting couple. An employee at Vardags, self-described specialists in high-net-worth marital breakdowns, opened the wrong file when applying for a divorce in His Majesty's Courts and Tribunals Service (HMCTS) online portal. With a click more potent than Cupid's arrow, the solicitor "issued a final order of divorce in proceedings between Mrs Williams, the applicant wife, and Mr Williams," court papers [PDF] say. The digital slip occurred on October 3, and thanks to the system's "now customary speed," as described by Judge Sir Andrew McFarlane, President of the Family Division, marital bonds were finally and totally severed in a mere 21 minutes, less time than most couples spend arguing over what to watch on Netflix. When Vardags realized the blunder two days later, it scrambled to reverse the order. The application was made "without notice to the Husband's solicitors -- the Wife's solicitors considered at the time that this was the correct approach given that the Final Order itself had been made without notice." In the ensuing legal melee, Mr Williams, previously unaware of his sudden single status, received a letter sent by HMCTS the same day as the accidental divorce, stating that he was no longer married. But it was not until October 11, a week later, that he was formally informed of his bachelorhood by his ex-wife's solicitors. Meanwhile, his solicitors entered the fray, demanding that the case be brought before the President of the Family Division to sort out this matrimonial muddle.

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Justice Department To File Antitrust Suit Against Ticketmaster-Parent Live Nation

Par : msmash
16 avril 2024 à 17:21
The Justice Department is preparing to sue Live Nation as soon as next month [non-paywalled link], an antitrust challenge that could spur major changes at the biggest name in concert promotion and ticketing. WSJ: The agency is preparing to file an antitrust lawsuit against the Ticketmaster parent in the coming weeks that would allege the nation's biggest concert promoter has leveraged its dominance in a way that undermined competition for ticketing live events, according to people familiar with the matter. The specific claims the department would allege couldn't be learned. The federal government opted out of trying to block Live Nation and Ticketmaster's 2010 tie up. Since then, the company has faced accusations of exorbitant ticket fees, flawed customer service and anticompetitive practices from lawmakers, regulators and state attorneys general. Critics of the merger say it has stifled competition in ticketing and that the company should be broken up. Live Nation's size and power in concert promotion, ticketing and venues are at the heart of a Justice Department investigation that began in 2022. The investigation gained momentum in November 2022 after Ticketmaster crashed during a fan presale to Taylor Swift's "Eras Tour."

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America's Legal System May Be 'Closing In' on Regulating Cryptocurrencies

Par : EditorDavid
14 avril 2024 à 23:04
A business columnist at the Los Angeles Times notes Sam Bankman-Fried's judge issued another ruling "that may have a more far-reaching effect on the crypto business. U.S. Judge Failla "cleared the Securities and Exchange Commission to proceed with its lawsuit alleging that the giant crypto broker and exchange Coinbase has been dealing in securities without a license." What's important about Failla's ruling is that she dismissed out of hand Coinbase's argument, which is that cryptocurrencies are novel assets that don't fall within the SEC's jurisdiction — in short, they're not "securities." Crypto promoters have been making the same argument in court and the halls of Congress, where they're urging that the lawmakers craft an entirely new regulatory structure for crypto — preferably one less rigorous than the existing rules and regulations promulgated by the SEC and the Commodity Futures Trading Commission... Failla saw through that argument without breaking a sweat. "The 'crypto' nomenclature may be of recent vintage," she wrote, "but the challenged transactions fall comfortably within the framework that courts have used to identify securities for nearly eighty years...." Since Congress hasn't enacted regulations specifically aimed at crypto, Coinbase said, the SEC's lawsuit should be dismissed. The judge's opinion of that argument was withering. "While certainly sizable and important," she wrote, "the cryptocurrency industry 'falls far short of being a "portion of the American economy" bearing vast economic and political significance....'" Failla's ruling followed another in New York federal court in which a judge deemed crypto to be securities. In that case, Judge Edgardo Ramos refused to dismiss SEC charges against Gemini Trust Co., a crypto trading outfit run by Cameron and Tyler Winkelvoss, and the crypto lender Genesis Global Capital. The SEC charged that a scheme in which Gemini pooled customers' crypto assets and lent them to Genesis while promising the customers high interest returns is an unregistered security. The SEC case, like that against Coinbase, will proceed.... The hangover from March continued into this month. On April 5, a federal jury in New York found Terraform Labs and its chief executive and major shareholder, Do Kwon, liable in what the SEC termed "a massive crypto fraud...." The value of UST fell in effect to zero, the SEC said, "wiping out over $40 billion of total market value ... and sending shock waves through the crypto asset community."

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Amazon Owes $525 Million In Cloud-Storage Patent Fight, US Jury Says

Par : BeauHD
12 avril 2024 à 00:02
A federal jury in Illinois on Wednesday said Amazon Web Services owes tech company Kove $525 million for violating three patents relating to its data-storage technology. From the report: The jury determined (PDF) that AWS infringed three Kove patents covering technology that Kove said had become "essential" to the ability of Amazon's cloud-computing arm to "store and retrieve massive amounts of data." An Amazon spokesperson said the company disagrees with the verdict and intends to appeal. Kove's lead attorney Courtland Reichman called the verdict "a testament to the power of innovation and the importance of protecting IP (intellectual property) rights for start-up companies against tech giants." Kove also sued Google last year for infringing the same three patents in a separate Illinois lawsuit that is still ongoing.

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Biden Considering Request To Drop Assange Charges

Par : BeauHD
10 avril 2024 à 23:20
President Joe Biden said he is "considering" a request from Australia to drop the prosecution of WikiLeaks founder Julian Assange. The BBC reports: The country's parliament recently passed a measure -- backed by PM Anthony Albanese -- calling for the return of Mr Assange to his native Australia. The US wants to extradite the 52-year-old from the UK on criminal charges over the leaking of military records. Mr Assange denies the charges, saying the leaks were an act of journalism. The president was asked about Australia's request on Wednesday and said: "We're considering it." Mr Assange, 52, is fighting extradition in the UK courts. The extradition was put on hold in March after London's High Court said the United States must provide assurances he would not face the death penalty. The High Court is due to evaluate any responses from the US authorities at the end of May. The measure passed the Australian parliament in February. Mr Albanese told MPs: "People will have a range of views about Mr Assange's conduct... But regardless of where people stand, this thing cannot just go on and on and on indefinitely."

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Cox Plans To Take Piracy Liability Battle To the Supreme Court

Par : BeauHD
10 avril 2024 à 13:00
An anonymous reader quotes a report from TorrentFreak: Cox Communications doesn't believe that ISPs should be held liable for the activities of their pirating subscribers. After a disappointing verdict from a Virginia jury and an unsatisfactory outcome at the Court of Appeals, the internet provider now intends to escalate the matter to the Supreme Court. If the present verdict stands, innocent people risk losing their Internet access, the ISP notes. [...] That's notable, as it would be the first time that a "repeat infringer" case ends up at the highest court United States. Cox asked the court of appeals to also stay its mandate pending its Supreme Court application, as this could steer the legal battle in yet another direction. According to Cox, the Supreme Court has substantial reasons to take on the case. For one, there are currently conflicting court of appeals rulings on the "material contribution" aspect of copyright infringement. The Supreme Court could give more clarity on when a service, with a myriad of lawful uses, can be held liable for infringers. In addition, Cox also cites the recent 'Twitter vs. Taamneh' Supreme Court ruling, which held that social media platforms aren't liable for terrorists who use their network. While that's not a copyright case, it's relevant for the secondary liability question, the ISP argues. "Though Twitter was not a copyright case, it confronted a directly analogous theory of secondary liability: that social-media platforms, including Twitter and YouTube, could be liable for continuing to provide services to those they knew were using them for illegal purposes," Cox writes. Finally, Cox notes that the Supreme Court should hear the case because it deals with an issue that's 'exceptionally important' to ISPs as well as the public. If the present verdict stands, Internet providers may be much more likely to terminate Internet access, even if the subscriber is innocent. "This Court's material-contribution standard provides powerful incentives for ISPs of all stripes to swiftly terminate internet services that have been used to infringe -- no matter the universe of lawful uses to which those services are put, or the consequences to innocent, non-infringing people who also use those services. "That is why a chorus of amici urged this Court not to adopt this standard at the panel and en banc stages, and will likely urge the Supreme Court to grant review as well," Cox adds, referring to the support it received from third-parties previously. "Cox hasn't filed a writ of certiorari yet and still has time, as it's due June 17, 2024," notes TorrentFreak. "The intention to go to the Supreme Court would be another reason to halt the new damages trial, according to Cox, but the court of appeals rejected the request." "This means that the new damages trial can start, even if the case is still pending at the Supreme Court. However, it's clear that this legal battle is far from over yet."

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Apple Sues Former Employee For Leaking Journal App, Vision Pro Details

Par : BeauHD
29 mars 2024 à 07:00
Apple has sued its former employee Andrew Aude for leaking information about more than a half-dozen Apple products and policies, including its then-unannounced Journal app and Vision Pro headset, product development policies, strategies for regulatory compliance, employee headcounts, and more. MacRumors reports: Aude joined Apple as an iOS software engineer in 2016, shortly after graduating college. He worked on optimizing battery performance, making him "privy to information regarding dozens of Apple's most sensitive projects," according to the complaint. In April 2023, for example, Apple alleges that Aude leaked a list of finalized features for the iPhone's Journal app to a journalist at The Wall Street Journal on a phone call. That same month, The Wall Street Journal's Aaron Tilley published a report titled "Apple Plans iPhone Journaling App in Expansion of Health Initiatives." Using the encrypted messaging app Signal, Aude is said to have sent "over 1,400" messages to the same journalist, who Aude referred to as "Homeboy." He is also accused of sending "over 10,000 text messages" to another journalist at the website The Information, and he allegedly traveled "across the continent" to meet with her. Other leaks relate to the Vision Pro and other hardware: "As another example, an October 2020 screenshot on Mr. Aude's Apple-issued work iPhone shows that he disclosed Apple's development of products within the spatial computing space to a non-Apple employee. Mr. Aude made this disclosure even though Apple's development efforts were confidential and not known to the public. Over the following months, Mr. Aude disclosed additional Apple confidential information -- including information concerning unannounced products, and hardware information." Apple believes that Aude's actions were "extensive and purposeful," with Aude allegedly admitting that he leaked information so he could "kill" products and features with which he took issue. The company alleges that his wrongful disclosures resulted in at least five news articles discussing the company's confidential and proprietary information. Apple says these public revelations impeded its ability to "surprise and delight" with its latest products. Apple said it learned of Aude's wrongful disclosures in late 2023, and the company fired him for his alleged misconduct in December of that year. [...] Apple is seeking both compensatory and punitive damages in an amount to be determined at trial, and it is also seeking other legal remedies. The full complaint can be read here (PDF).

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Florida Braces For Lawsuits Over Law Banning Kids From Social Media

Par : BeauHD
26 mars 2024 à 20:00
An anonymous reader quotes a report from Ars Technica: On Monday, Florida became the first state to ban kids under 14 from social media without parental permission. It appears likely that the law -- considered one of the most restrictive in the US -- will face significant legal challenges, however, before taking effect on January 1. Under HB 3, apps like Instagram, Snapchat, or TikTok would need to verify the ages of users, then delete any accounts for users under 14 when parental consent is not granted. Companies that "knowingly or recklessly" fail to block underage users risk fines of up to $10,000 in damages to anyone suing on behalf of child users. They could also be liable for up to $50,000 per violation in civil penalties. [...] DeSantis' statement noted that "in addition to protecting children from the dangers of social media, HB 3 requires pornographic or sexually explicit websites to use age verification to prevent minors from accessing sites that are inappropriate for children." This suggests that Florida could face a legal challenge from adult sites like Pornhub, which have been suing to block states from requiring an ID to access adult content. Most recently, Pornhub blocked access to its platform in Texas, arguing that such laws "impinge on the rights of adults to access protected speech" and fail "strict scrutiny by employing the least effective and yet also most restrictive means of accomplishing Texas's stated purpose of allegedly protecting minors." According to the Guardian, [Florida House Speaker Paul Renner, who spearheaded the law] expected that social media companies would "sue the second after" HB 3 was signed. So far, no legal challenges have been raised, but Renner seemingly expects that the law's focus on "addictive features such as notification alerts and autoplay videos, rather than on their content" would ensure that the law defeats any constitutional concerns potentially raised by social media companies. "We're going to beat them, and we're never, ever going to stop," Renner vowed.

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Consumers Sue Apple, Taking Page From Justice Department Lawsuit

Par : msmash
25 mars 2024 à 16:41
Apple has been hit with a flurry of new consumer lawsuits accusing the iPhone maker of monopolizing the smartphone market, piggybacking on a sweeping antitrust case lodged by the U.S. Justice Department and 15 states last week. From a report: At least three proposed class actions have been filed since Friday in California and New Jersey federal courts by iPhone owners who claim Apple inflated the cost of its products through anticompetitive conduct. The lawsuits, seeking to represent millions of consumers, mirror the Justice Department's claims that Apple violated U.S. antitrust law by suppressing technology for messaging apps, digital wallets and other items that would have increased competition in the market for smartphones.

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Judge Orders YouTube to Reveal Everyone Who Viewed A Video

Par : EditorDavid
24 mars 2024 à 21:34
"If you've ever jokingly wondered if your search or viewing history is going to 'put you on some kind of list,' your concern may be more than warranted," writes Mashable : In now unsealed court documents reviewed by Forbes, Google was ordered to hand over the names, addresses, telephone numbers, and user activity of Youtube accounts and IP addresses that watched select YouTube videos, part of a larger criminal investigation by federal investigators. The videos were sent by undercover police to a suspected cryptocurrency launderer... In conversations with the bitcoin trader, investigators sent links to public YouTube tutorials on mapping via drones and augmented reality software, Forbes details. The videos were watched more than 30,000 times, presumably by thousands of users unrelated to the case. YouTube's parent company Google was ordered by federal investigators to quietly hand over all such viewer data for the period of Jan. 1 to Jan. 8, 2023... "According to documents viewed by Forbes, a court granted the government's request for the information," writes PC Magazine, adding that Google was asked "to not publicize the request." The requests are raising alarms for privacy experts who say the requests are unconstitutional and are "transforming search warrants into digital dragnets" by potentially targeting individuals who are not associated with a crime based simply on what they may have watched online. That quote came from Albert Fox-Cahn, executive director at the Surveillance Technology Oversight Project, who elaborates in Forbes' article. "No one should fear a knock at the door from police simply because of what the YouTube algorithm serves up. I'm horrified that the courts are allowing this." Thanks to long-time Slashdot reader schwit1 for sharing the article.

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Could a Guilty Plea Free Julian Assange From Jail?

Par : EditorDavid
23 mars 2024 à 18:34
America's Justice Department "is considering whether to allow Julian Assange to plead guilty to a reduced charge of mishandling classified information," reports the Wall Street Journal, citing "people familiar with the matter." Though Assange faces trial for publishing thousands of confidential U.S. documents in 2010, this development opens up "the possibility of a deal that could eventually result in his release from a British jail," reports the Journal. Where things stand currently: A U.K. court is currently considering whether to allow a last-ditch appeal by the 52-year-old. After U.S. prosecutors charged him in 2019, U.K. law-enforcement officials apprehended him, and he has been in a London prison ever since... Britain's High Court is expected to decide within weeks whether to grant Assange a further right to appeal his extradition to the U.S. If the court rules against him, the U.S. government will likely have 28 days to come and collect Assange and bring him to face trial. But... Justice Department officials and Assange's lawyers have had preliminary discussions in recent months about what a plea deal could look like to end the lengthy legal drama, according to people familiar with the matter, a potential softening in a standoff filled with political and legal complexities. The talks come as Assange has spent some five years behind bars. U.S. prosecutors face diminishing odds that he would serve much more time even if he were convicted stateside. The discussions remain in flux, and talks could fizzle. Any deal would require approval at the highest levels of the Justice Department. Barry Pollack, a lawyer for Assange, said he has been given no indication that the department will take a deal. A Justice Department spokesman declined to comment. If prosecutors allow Assange to plead to a U.S. charge of mishandling classified documents — something his lawyers have floated as a possibility — it would be a misdemeanor offense. Under such a deal, Assange potentially could enter that plea remotely, without setting foot in the U.S. The time he has spent behind bars in London would count toward any U.S. sentence, and he would likely be free to leave prison shortly after any deal was concluded. U.S. authorities "gave a package of assurances, including a pledge he could be transferred to his native Australia to serve any sentence," according to the article. The Australian government, which has largely been supportive of Assange, could shorten any sentence once he landed on Australian soil, said Nick Vamos, a partner at London law firm Peters & Peters and a former head of extradition for England and Wales's Crown Prosecution Service. "I honestly think as soon as he arrived in Australia he would be released," he said.

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Texas Sues xHamster and Chaturbate

Par : BeauHD
22 mars 2024 à 13:00
An anonymous reader quotes a report from 404 Media: Texas Attorney General Ken Paxton just sued two more porn sites, xHamster and Chaturbate, alleging they aren't complying with age verification laws. As first reported by local news outlet KXAN, the Office of the Attorney General filed two civil lawsuits on Tuesday afternoon against Hammy Media, which owns xHamster, and Multi Media, which owns Chaturbate. Texas Governor Greg Abbott signed HB 1181 into law in June, which requires porn sites to verify the ages of users through a driver's license or passport. If porn sites don't force consenting adults to hand over a government-issued ID in order to watch other consenting adults have sex on camera, they face heavy fines. Paxton's lawsuit against xHamster asks the court to force the site to pay a civil penalty of up to $1.67 million, with an additional $10,000 a day since filing. For Chaturbate, it's $1.78 million plus $10,000 per day. Last week, Pornhub's parent company Aylo blocked anyone accessing its network of sites from a Texas IP address, and replaced its network of sites -- which include Pornhub, Brazzers, YouPorn and many more -- with a message about its rejection of age verification legislation that requires adults to show government-issued ID to access porn. [...] As of writing, xHamster and Chaturbate are still accessible in Texas and don't have requirements to verify users' ages with a government ID.

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Epic, Spotify, Others Back DOJ Lawsuit Against Apple

Par : msmash
21 mars 2024 à 18:12
The Coalition for App Fairness, an industry body that represents Epic, Spotify, Match Group and Proton among others, issued the following statement following the U.S. announcing it had sued Apple: "With today's announcement, the Department of Justice is taking a strong stand against Apple's stranglehold over the mobile app ecosystem, which stifles competition and hurts American consumers and developers alike. The DOJ complaint details Apple's long history of illegal conduct -- abusing their App Store guidelines and developer agreements to increase prices, extract exorbitant fees, degrade user experiences, and choke off competition. The DOJ joins regulators around the world, who have recognized the many harms of Apple's abusive behavior and are working to address it. As this case unfolds in the coming years more must be done now to end the anticompetitive practices of all mobile app gatekeepers. It remains imperative that Congress pass bipartisan legislation, like the Open App Markets Act, to create a free and open mobile app marketplace." Further reading: Apple Loses $115 Billion in Market Value as Regulators Close In.

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Florida Man Sues G.M. and LexisNexis Over Sale of His Cadillac Data

Par : BeauHD
16 mars 2024 à 13:00
An anonymous reader quotes a report from the New York Times: When Romeo Chicco tried to get auto insurance in December, seven different companies rejected him. When he eventually obtained insurance, it was nearly double the rate he was previously paying. According to a federal complaint filed this week seeking class-action status, it was because his 2021 Cadillac XT6 had been spying on him. Modern cars have been called "smartphones with wheels," because they are connected to the internet and packed with sensors and cameras. According to the complaint, an agent at Liberty Mutual told Mr. Chicco that he had been rejected because of information in his "LexisNexis report." LexisNexis Risk Solutions, a data broker, has traditionally kept tabs for insurers on drivers' moving violations, prior insurance coverage and accidents. When Mr. Chicco requested his LexisNexis file, it contained details about 258 trips he had taken in his Cadillac over the past six months. His file included the distance he had driven, when the trips started and ended, and an accounting of any speeding and hard braking or accelerating. The data had been provided by General Motors -- the manufacturer of his Cadillac. In a complaint against General Motors and LexisNexis Risk Solutions filed in the U.S. District Court for the Southern District of Florida, Mr. Chicco accused the companies of violation of privacy and consumer protection laws. The lawsuit follows a report by The New York Times that, unknown to consumers, automakers have been sharing information on their driving behavior with the insurance industry, resulting in increased insurance rates for some drivers.

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Apple, Investors Reach $490 Million Settlement in Fraud Case

Par : msmash
15 mars 2024 à 18:23
Apple reached a $490 million settlement of a class-action lawsuit brought by a group of investors who accused Chief Executive Officer Tim Cook of misleading them in 2018 about the company's sales prospects. From a report: Cook made false statements about the company's business in China that caused Apple stock to trade at artificially inflated prices, the investors said in their complaint, which alleged violation of securities laws. Lawyers disclosed the proposed settlement in a request for judicial approval filed Friday in federal court in Oakland, California. The settlement comes as Apple continues to face headwinds in China, where iPhone sales fell by a surprising 24% over the first six weeks of this year, according to independent research released earlier this month. Attorneys for the investors described the settlement as the third-largest securities class-action recovery in the district's history.

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Supreme Court Tosses Rulings on Public Officials' Social Media Blockings

Par : msmash
15 mars 2024 à 16:50
The Supreme Court clarified when public officials can block critical constituents from their personal profiles without violating their constitutional protections in a unanimous decision Friday. From a report: After hearing appeals of two conflicting rulings -- one filed against school board members in Southern California and another filed against the city manager of Port Huron, Mich. -- the justices provided no definitive resolution to the disputes and instead sent both cases back to lower courts to apply the new legal test. In a unanimous decision authored by Justice Amy Coney Barrett, the court said state officials cannot block constituents on their personal pages when they have "actual authority to speak on behalf of the State on a particular matter" and "purported to exercise that authority in the relevant posts." "For social-media activity to constitute state action, an official must not only have state authority -- he must also purport to use it," Barrett wrote. The case marked the latest battle over public officials' social media presence when they mesh their official and personal roles. The 6th U.S. Circuit Court of Appeals, which heard the Michigan case, sided with the city manager, James Freed, who deleted comments on his Facebook page left by a resident and blocked several of the resident's profiles. The resident, Kevin Lindke, had criticized Freed over his handling of the COVID-19 pandemic, court filings indicate.

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Court Docs Reveal Epic CEO's Anger At Steam's 30% Fees

Par : BeauHD
14 mars 2024 à 22:00
New emails from before the launch of the Epic Games Store in 2018 show just how angry Epic CEO Tim Sweeney was with the "assholes" at companies like Valve and Apple for squeezing "the little guy" with what he saw as inflated fees. "The emails, which came out this week as part of Wolfire's price-fixing case against Valve (as noticed by the GameDiscoverCo newsletter), confront Valve managers directly for platform fees Sweeney says are 'no longer justifiable,'" writes Ars Technica's Kyle Orland. "They also offer a behind-the-scenes look at the fury Sweeney and Epic would unleash against Apple in court proceedings starting years later. From the report: The first mostly unredacted email chain from the court documents, from August 2017 (PDF), starts with Valve co-founder Gabe Newell asking Sweeney if there is "anything we [are] doing to annoy you?" That query was likely prompted by Sweeney's public tweets at the time questioning "why Steam is still taking 30% of gross [when] MasterCard and Visa charge 2-5% per transaction, and CDN bandwidth is around $0.002/GB." Later in the same thread, he laments that "the internet was supposed to obsolete the rent-seeking software distribution middlemen, but here's Facebook, Google, Apple, Valve, etc." Expanding on these public thoughts in a private response to Newell, Sweeney allows that there was "a good case" for Steam's 30 percent platform fee "in the early days." But he also argues that the fee is too high now that Steam's sheer scale has driven down operating costs and made it harder for individual games to get as much marketing or user acquisition value from simply being available on the storefront. Sweeney goes on to spitball some numbers showing how Valve's fees are contributing to the squeeze all but the biggest PC game developers were feeling on their revenues: "If you subtract out the top 25 games on Steam, I bet Valve made more profit from most of the next 1,000 than the developer themselves made. These guys are our engine customers and we talk to them all the time. Valve takes 30% for distribution; they have to spend 30% on Facebook/Google/Twitter [user acquisition] or traditional marketing, 10% on server, 5% on engine. So, the system takes 75% and that leaves 25% for actually creating the game, worse than the retail distribution economics of the 1990's." Based on experience with Fortnite and Paragon, Sweeney estimates that the true cost of distribution for PC games that sell for $25 or more in Western markets "is under 7% of gross." That's only slightly lower than the 12 percent take Epic would establish for its own Epic Games Store the next year. The second email chain (PDF) revealed in the lawsuit started in November 2018, with Sweeney offering Valve a heads-up on the impending launch of the Epic Games Store that would come just weeks later. While that move was focused on PC and Mac games, Sweeney quickly pivots to a discussion of Apple's total control over iOS, the subject at the time of a lawsuit whose technicalities were being considered by the Supreme Court. Years before Epic would bring its own case against Apple, Sweeney was somewhat prescient, noting that "Apple also has the resources to litigate and delay any change [to its total App Store control] for years... What we need right now is enough developer, press, and platform momentum to steer Apple towards fully opening up iOS sooner rather than later." To that end, Sweeney attempted to convince Valve that lowering its own platform fees would hurt Apple's position and thereby contribute to the greater good: "A timely move by Valve to improve Steam economics for all developers would make a great difference in all of this, clearly demonstrating that store competition leads to better rates for all developers. Epic would gladly speak in support of such a move anytime!" In a follow-up email on December 3, just days before the Epic Games Store launch, Sweeney took Valve to task more directly for its policy of offering lower platform fees for the largest developers on Steam. He offered some harsh words for Valve while once again begging the company to serve as a positive example in the developing case against Apple: "Right now, you assholes are telling the world that the strong and powerful get special terms, while 30% is for the little people. We're all in for a prolonged battle if Apple tries to keep their monopoly and 30% by cutting backroom deals with big publishers to keep them quiet. Why not give ALL developers a better deal? What better way is there to convince Apple quickly that their model is now totally untenable?" After being forwarded the message by Valve's Erik Johnson, Valve COO Scott Lynch simply offered up a sardonic "You mad bro?"

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