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Parents Can Receive Alerts If Their Child Experiences Acute Distress While Using ChatGPT | OpenAI

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When a teenager exhibits significant distress while interacting with ChatGPT, parents might receive a notification if their child displays signs of distress, particularly in light of child safety concerns, as more young individuals seek support and advice from AI chatbots.

This alert is part of new protective measures for children that OpenAI plans to roll out next month, following a lawsuit from a family whose son reportedly received “months of encouragement” from the chatbot.

Among the new safeguards is a feature that allows parents to link their accounts with their teenagers’, enabling them to manage how AI models respond to their children through “age-appropriate model behavior rules.” However, internet safety advocates argue that progress on these initiatives has been slow and assert that AI chatbots should not be released until they are deemed safe for young users.

Adam Lane, a 16-year-old from California, tragically took his life in April after discussing methods of suicide with ChatGPT, which allegedly offered to assist him in crafting a suicide note. OpenAI has acknowledged deficiencies in its system and admits that safety training for AI models has declined throughout extended conversations.

Raine’s family contends that the chatbot was “released to the market despite evident safety concerns.”

“Many young people are already interacting with AI,” OpenAI stated. The blog outlines their latest initiatives. “They are among the first ‘AI natives’ who have grown up with these tools embedded in their daily lives, similar to earlier generations with the internet and smartphones. This presents genuine opportunities for support, learning, and creativity; however, it also necessitates that families and teens receive guidance to establish healthy boundaries corresponding to the unique developmental stages of adolescence.”

A significant change will allow parents to disable AI memory and chat history, preventing past comments about personal struggles from resurfacing in ways that could exacerbate risk and negatively impact a child’s long-term profile and mental well-being.

In the UK, the Intelligence Committee has established a Code of Practice regarding the design of online services that are suitable for children, advising tech companies to “collect and retain only the minimum personal data necessary for providing services that children are actively and knowingly involved in.”

Around one-third of American teens utilize AI companions for social interactions and relationships, including role-playing, romance, and emotional support, according to a study. In the UK, 71% of vulnerable children engage with AI chatbots, with six in ten parents reporting their children believe these chatbots are real people, as highlighted in another study.

The Molly Rose Foundation, established by the father of Molly Russell, who took her life after succumbing to despair on social media, emphasized that “we shouldn’t introduce products to the market before confirming they are safe for young people; efforts to enhance safety should occur beforehand.”

Andy Burrows, the foundation’s CEO, stated, “We look forward to future developments.”

“OFCOM must be prepared to investigate violations committed by ChatGPT, prompting the company to adhere to online safety laws that must ensure user safety,” he continued.


Anthropic, the company behind the popular Claude chatbot, states that its platform is not intended for individuals under 18. In May, Google permitted children under 13 to access its app using the Gemini AI system. Google also advises parents to inform their children that Gemini is not human and cannot think or feel and warns that “your child may come across content you might prefer them to avoid.”

The NSPCC, a child protection charity, has welcomed OpenAI’s initiatives as “a positive step forward, but it’s insufficient.”

“Without robust age verification, they cannot ascertain who is using their platform,” stated senior policy officer Toni Brunton Douglas. “This leaves vulnerable children at risk. Technology companies should prioritize child safety rather than treating it as an afterthought. It’s time to establish protective defaults.”

Meta has implemented protection measures for teenagers in its AI offerings, stating that for sensitive topics like self-harm, suicide, and disability, it will “incorporate additional safeguards, training AI to redirect teens to expert resources instead.”

“These updates are in progress, and we will continue to adjust our approach to ensure teenagers have a secure and age-appropriate experience with AI,” a spokesperson mentioned.

Source: www.theguardian.com

Some NOAA Employees Rehired After Dismissal Now Receive Letters Demanding Repayment

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Some former employees of the National Oceanic and Atmospheric Administration (NOAA) who were dismissed, re-hired, and then let go again this spring report having received debt notices from the federal government requiring repayment for medical compensation which they assert they never received.

These workers describe this as the latest chapter in a firing process marked by confusion, inadequate communication, and insufficient documentation, leaving them grappling with fundamental workplace concerns.

Three NOAA employees provided a letter to NBC News labeled “Notice of Payment Request.” Dated June 16, the letter claimed the employee owed money (sometimes several hundred dollars) with potential interest on the amount. It also warned that any unpaid debt would be reported to the Credit Bureau.

“The language is very ominous and threatening,” remarked Salakoury, who was dismissed in late February from his role as director of the agency’s marine acidification program.

It remains unclear how many dismissed employees received this notice; two former NOAA staff members informed NBC News that they did not get such letters.

The notice indicates that the debt pertains to healthcare premiums for the eighth and ninth months of the year, during which the health insurance plan had already lapsed.

“After my termination, they attempted to file a claim related to their health insurance, of which I had no reports,” noted Ya’el Seid-Green, a former special assistant at NOAA’s Office of Ocean and Atmospheric Research. “It’s just rubbing salt in the wound regarding how incompetent this is.”

NOAA spokesperson Kim Doster stated the agency could not comment on ongoing personnel issues and was unable to forward inquiries to the HR Administration, which did not respond initially. The Department of Commerce, which oversees NOAA, also did not reply.

Following NBC News’s inquiry about the problems at NOAA’s Media Affairs group, probationary employees received an acknowledgment from their representatives about potential errors.

“Our office is aware that you may have received a debt notice from the National Finance Center (NFC),” read an email sent to a probationary employee. “Please be assured that we are collaborating with the NFC to address this matter. No action is required from you at this moment. We will provide further information and updates.”

In February, the Department of Commerce terminated over 600 probationary employees at NOAA, including hurricane hunters, meteorologists, and storm modelers. Probationary employees typically serve their first or second year in a new position at the agency.

In mid-March, a judge ordered many of these employees reinstated, prompting NOAA to place them on administrative leave. However, in early April, the Supreme Court temporarily halted some of these reinstatements, leading to a second dismissal of the employees.

A former employee stated that the chaotic process of hiring and firing has resulted in documentation errors and confusion, leaving them unable to obtain answers from the agency.

Sabrina Valenti, a former budget analyst at NOAA, expressed concern that she has not yet received her separation paperwork from the agency.

“It has been four months since my termination, and there is no record acknowledging it,” she stated.

Additionally, the employees reported not having access to the health benefits that should have been available during their reinstatement period. Seid-Green underwent surgery in April while on administrative leave.

“We were receiving salaries during administrative leave, and our health insurance contributions were deducted,” she mentioned.

After her surgery, Seid-Green discovered that her health insurance had lapsed.

She subsequently applied to continue her temporary compensation, a program that allows government employees to retroactively cover their health benefits. However, that has also not been successful.

Seid-Green remarked that this effectively means she has been billed twice for health insurance she has not received.

“I’ve received letters demanding over $14,000 for the surgery,” she shared. “Not only did they fail to provide the compensation we were owed, but now they are sending us debt notices for benefits we never received.”

Tim White House, executive director of the Public Employees for Environmental Responsibility (PEER), a nonprofit organization dedicated to supporting environmental workers and monitoring administrative issues, stated that these errors reflect deeper leadership failures within the agency.

“They are inflicting emotional and financial burdens on these employees. The Department of Commerce is at fault. Other agencies have resolved these issues, while they remain persistent in this department,” he concluded.

Source: www.nbcnews.com

Pennsylvania Baby Becomes First to Receive Personalized Gene Therapy

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A baby born with rare and perilous genetic disorders has flourished thanks to an experimental gene editing treatment tailored specifically for him.

Researchers detailed the situation in a recent study, explaining that he initially received a personalized therapy aimed at rectifying a critical genetic flaw responsible for the death of half of affected infants. While wider availability of similar tailored treatments may take time, doctors remain optimistic. They believe that as genetic medicine advances, it can assist millions still facing rare conditions.

“This represents a pivotal advancement in gene editing therapy, addressing various uncommon genetic disorders that currently lack effective medical solutions,” stated Dr. Kiran Musnoor, a gene editing specialist from the University of Pennsylvania and co-author of the study recently published in the New England Journal of Medicine.

KJ Muldoon, from Clifton Heights, Pennsylvania, is among the 350 million people globally grappling with genetic issues. Shortly after birth, he was diagnosed with severe CPS1 deficiency, a condition estimated to affect about one in a million infants. These babies are unable to produce the enzymes required to eliminate ammonia from their systems, leading to toxic accumulation in the bloodstream. For some, liver transplants are a viable option.

Understanding KJ’s circumstances, his parents, Kyle and Nicole Muldoon, aged 34, were understandably anxious about the possibility of losing him.

“We evaluated all available options and posed numerous questions about potential liver transplants,”

“We prayed, consulted others, collected information, and ultimately decided this was the best path forward,” Kyle added.

In just six months, the team at Philadelphia Children’s Hospital and Penn Medicine, in collaboration with their partners, devised a treatment aimed at correcting KJ’s faulty genes. They utilized GIRSPR, a technique for which the inventor received the Nobel Prize in 2020. Rather than cutting DNA strands like earlier CRISPR methods, doctors implemented a technique that alters the “letter” (or base) of the mutated DNA, transforming it into the correct version. This approach, known as “base editing,” minimizes the chances of unintended genetic alterations.

St. Hill Boupalan, a gene therapy researcher at St. Jude Children’s Research Hospital in Memphis, who was not part of the study, remarked that it is “incredibly thrilling” how quickly the treatment was developed. “This genuinely establishes a new benchmark for this approach.”

In February, KJ received his first IV injection of the gene editing therapy, delivered through small fatty droplets called lipid nanoparticles, which are absorbed by liver cells.

The atmosphere was filled with excitement on that day, but “he slept through the entire procedure,” Dr. Rebecca Ahrens-Nicklas, a gene therapy expert at CHOP, recalled.

Following subsequent doses in March and April, KJ began eating normally and recovered well from minor illnesses, such as colds. He has been on economical medications for the past 9½ months.

Given his grim prognosis initially, “each small milestone he reaches feels monumental for us,” his mother expressed.

Nonetheless, researchers caution that only a few months have passed. They need years of observation.

“We’re still in the early stages of comprehending the effects this drug has had on KJ,” Ahrens-Nicklas stated. “However, he demonstrates signs of growth and well-being daily.”

Researchers are hopeful that KJ’s case could provide insights beneficial to patients with other rare diseases.

While developing gene therapies can be tremendously pricey, they often focus on more prevalent conditions for financial viability. A broader patient base can enhance sales, assisting in covering development costs and yielding more profit. For instance, the first CRISPR therapy approved by the US Food and Drug Administration addresses sickle cell disease, a painful blood disorder impacting millions worldwide.


KJ Muldoon with parents Kyle and Nicole Muldoon and siblings after a follow-up dose of experimental gene editing therapy in April 2025 at the hospital.
Chloe Dawson/Philadelphia Children’s Hospital via the Associated Press

Musnoor mentioned that his team’s efforts—partially funded by the National Institutes of Health—demonstrate that customizing treatments does not necessarily have to be prohibitively expensive. He indicated that costs are “not far off” from the $800,000 average for a liver transplant and associated care.

“As we continue to develop these treatments and shorten the timeframes, we anticipate economies of scale, which will drive costs down,” Musnoor noted.

Scientists also emphasized that it isn’t necessary to repeat all initial steps each time a customized therapy is created, as noted by Boupalan. This study “paves the way” for other rare condition treatments.

Carlos Mores, a neurology professor at the University of Miami who was not involved in the study, stated that such research paves the way for future advancements.

For other teams to apply insights and move forward, “breakthroughs like this can spur progress quickly,” he remarked. “Though there are challenges ahead, I predict we will overcome them in the next five to ten years, leading the entire field to advance collectively.”

Source: www.nbcnews.com

Report Indicates Terrorists Will Continue to Receive X’s Approval

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According to a recent report, researchers initially warned X over a year ago. Elon Musk’s social media platform has been cautioned that accepting subscription payments from terrorist organizations and other groups may violate U.S. sanctions, yet it continues to facilitate such payments.

The report from Technology Transparency Project, a nonprofit advocating for tech company accountability, revealed that X is still receiving payments from accounts linked to Hezbollah leaders in Syria and Iraq, as well as Houthi officials and militia leaders. An $8/month subscription grants users a blue checkmark, enhances their visibility in the algorithm, enables post-editing, and allows for longer video sharing.

Last year, the Tech Transparency Project indicated that X had issued paid blue checkmarks to 28 accounts tied to entities under U.S. sanctions. Following this, several social media companies revoked the badges from multiple accounts and suspended others. However, within a month, some of these accounts managed to purchase badges again and have been displaying them ever since.

The Tech Transparency Project estimates that over 200 accounts related to terrorist and other unauthorized groups have acquired a blue checkmark.

Katy Paul, the director of the organization, stated, “These accounts depend on premium services for extensive propaganda posts and to amplify their longer videos. They not only subscribe to the notorious Blue Check but also to premium services.”

Recently, Musk, who served as a special advisor during the Trump administration, criticized the Treasury Department, alleging a lack of “basic control” preventing government entities from tracking payments directed to terrorist organizations. In February, during a White House event with President Trump in the Oval Office, Musk commented that safeguards are in place against payments to terrorist groups and fraudsters “at any company.”

Neither X nor the Treasury Department provided comments upon request.

Since Musk acquired X in 2022, he has made substantial changes, including reinstating hundreds of banned accounts and reducing the workforce by about 80%. He replaced the previous verification system, which required employee validation of prominent user identities, with a subscription model.

X’s policy forbids terrorist groups from purchasing blue checkmarks, yet it remains unclear how the organizations and individuals identified in the report circumvented these regulations to obtain premium status. X no longer verifies user identities before granting checkmarks, which raises the possibility that some accounts flagged by the Tech Transparency Project may belong to impersonators.

Interestingly, some of these accounts do have “ID verification” labels and require users to submit selfies along with their identification.

Subhi Tufayli, the founder of Hezbollah and the group’s first executive director, appears to maintain an “ID verification” account with over 40,700 followers. Tufayli has been on the Ministry of Finance’s sanctions list since 1995. The account, confirmed in October 2023, frequently shares 30-minute videos of his sermons.

Subhi Tufayli, founder of Hezbollah, who was the group’s first executive director, appears to have an “ID verification” account.
credit…Through the Technology Transparency Project

Previously, there were many accounts linked to Yemen’s Houthi Rebel Group holding blue checkmarks on X, but the company revoked these badges following an initial report from the Tech Transparency Project last year.

Hussain Al-Ezzi’s account, identified by the Tech Transparency Project as the Deputy Minister of Houthis, requested Musk to allow for another verification of their group.

In a post from March 2024, the account stated, “We are in solidarity with our Yemeni brothers, who had the Blue Mark removed from their account. We are appealing to Elon Musk to restore it or at least to reinstate the subscription.”

The latest report from the Tech Transparency Project indicated that at least five senior Houthi staff members have been paying for the blue checkmark on X. One of the accounts has attracted over 820,000 followers.

Some flagged accounts have been raising funds through X’s tipping and subscription features or have directed users to send donations to cryptocurrency wallets.

Katy Paul commented, “There is clear evidence that these groups are profiting and financing their operations through X. It is astonishing that those wielding such influence in the federal government can simultaneously profit from designated terrorist groups and individuals.”

Source: www.nytimes.com

Researchers receive compensation for investigating maple syrup. Additionally, he earns a salary for endorsing it.

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For over a decade, biomedical researcher Navindra Seeram praised maple syrup, calling it “hero ingredients” and “champion food,” and could have a wide range of health benefits.

Dr. Sheelam, dean of the University of New England’s Pharmacy, has published more than three dozen studies celebrating the power of maple. Much of his work is bankrolled by the Canadian maple syrup industry and the Canadian and American governments.

At the same time, he took on another role: Maple Syrup Pitchman.

“I am uniquely qualified as a world-leading researcher on the benefits of maple health due to its scientific reputation and reliability to promote the sale of maple products,” he wrote in his grant application. He assures Canadian industry leaders that he will always support Quebec’s maple, according to emails obtained in the request for public records.

As he spans the real-world meaning of his research and exaggerated health benefits, he distorted the real-world meaning of his research and exaggerated health benefits. Videos and press releases suggest that taking maple syrup can help stop illnesses like cancer, Alzheimer’s disease, and diabetes. Other scientists said they thought he exaggerated and misleading the test and the findings of his lab.

Industry funding is common in nutrition research and could become even more important as scientists tackle drastic cuts in the Trump administration. Dr. Seeram’s work illustrates the dangers of a science-sales intertwining that drives information that can shape consumer habits and public health.

At the University of Rhode Island, where he worked until last year, Dr. Sheelam oversaw a project awarded $2.6 million in US government funding, including grants aimed at explicitly increasing sales of maple syrup. That promotional work produced streams of Social Media Posts “The benefits of maple syrup: anti-cancer, antioxidant, anti-inflammatory agents.”

in video Posted on YouTube in 2019, Dr. Seeram said the nutrients in maple syrup “may prevent and/or delay the onset of conditions” such as “cardiovascular disease, metabolic syndrome, brain disease, etc.”.

However, his research found something more limited. Maple syrup contains small amounts of polyphenols in plant compounds that are generally considered beneficial. To demonstrate their effects, he tested highly concentrated maple extracts in lab settings rather than people’s consumption of commercial maple syrup.

Dr. Sheelam told the exam he believes in the power of natural medicines, part of the upbringing in South America. And he defended how he spoke about his findings. “No one can go back to quote directly from me.

… (remaining content follows the same structure)

Source: www.nytimes.com

Tesla Armored Vehicles to Receive $400 Million Funding from US State Department

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The US State Department has allocated $400 million to purchase new Tesla armored vehicles, despite Tesla CEO Elon Musk leading efforts to reduce government spending during Donald Trump’s term.

Sector-generated procurement forecasts indicate a proposed expenditure of $400 million (£320 million) for “armored Teslas (production units).” These vehicles could potentially be the Cybertrucks, Tesla’s latest electric pickup model, touted by Musk as being bulletproof.

This revelation raises concerns about a possible conflict of interest for Musk, who is a major beneficiary of US government contracts through his various companies.

While Musk’s wealth primarily comes from Tesla, his rocket company SpaceX is a key contractor providing space launch services to the US government.

Despite Musk’s efforts to streamline government spending, particularly through his initiative named Doge, Trump has also involved him in government efficiency efforts. These actions have been criticized for potentially violating the US Constitution.

State Department documents suggest that the Tesla contract will be finalized by the end of September.

The department’s website originally included a forecast document dated December 13, 2024, showing the Tesla procurement plan. However, a later version corrected this entry after it was reported by Drop Site News, replacing “Tesla” with “armored electric vehicles” (EVs) without specifying the brand.

In addition to Tesla, the US government also procures armored vehicles from other manufacturers, as indicated in the procurement documents.

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Both Tesla and the US State Department have been approached for comments on the matter.

Source: www.theguardian.com

Why Platform Games Receive the Most Criticism: A Personal Perspective | Games

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TMy wife has only ever enjoyed two video games: Mario Kart, which she has happily followed closely behind her throughout her life as a family, and Crash Bandicoot, of which she was the best player in the world at one point.

She perfected every molecule of a ’90s Clash game, and I’d swear I saw her hit 105% in one of them, but this was the ’90s, so I classify that memory, along with Gary McAllister’s missed penalty kick at Wembley Stadium and the band’s menswear, as a “psychological hallucination.”

I’m not a perfectionist like her, for me platform games are the best video game genre I absolutely hate, like Manic Miner, Plumber, Hedgehog, Mega Man, Aladdin, Earthworm Jim, etc. There are too many frustrations and failures to be worth the reward.

In the late ’90s, I decided I was too old to cry over these games, so I skipped Ratchet & Clank, Jak & Daxter, and Banjo-Kazooie altogether. did I played Super Mario Sunshine in co-op with my daughter, who was 5 at the time. She beat the level and I beat the boss. It was an incredibly fun gaming experience for both of us. Ten years later, I was proud and impressed to watch her coach her younger brother through a killer level of Rayman Legends, where aliens chased her while hopping across platforms too tiny for her father’s naked eye. Clearly, a talent for platforming runs in the family. I just don’t have it.

Rayman Legends is terribly difficult. Photo: Ubisoft

But in 2020’s Bandicoot 4: It’s About Time (the best double entendre of a game title), my wife found her equal: She’s been trying to beat the game for three generations, and is currently just 48% complete after 68 hours of play.

So I thought I’d step in and show her how it’s done.

The game has a retro mode option that takes you back to the original era of gaming, with limited lives and returning you to the start of the level when you die. I chose modern instead. Why in the name of the devil in hell would I want to go back to a time when things were still fun. more difficult? Yes, this is authentically old-fashioned, but so are the mumps, the Global Hypercolor T-shirt and Margaret Thatcher, and I have no desire to resurrect them.

Age doesn’t matter. When I played games in my teens and twenties, they calmed me. When I played games in my thirties and forties, they pissed me off. But now that I’m in my fifties, I’m a total crank. My family won’t ride with me in my Honda Civic because I get so angry at traffic jams, other drivers, dirty roads, useless politicians, shrinkflation, and King Lear-like architecture. But I swear platform games are designed to turn even the happiest of people into obelisks of frustration.

The phasing levels were the most mind-blowing for me. You press a button and blocks appear and disappear. You have to jump into the ether and then press a button to make the next block appear below. Sometimes the block collapses and you have to jump again while remembering to phase in the next block. It feels like walking around with an orange peel in the front pocket of your jeans.

I yell, I scream, I curse, I curse some more, and I do combo curses where the curse words are stacked two or three times. My wife tells me to stop because the neighbors are peeking in from their yard, so I make up a whole new swear word slang, spewing curse words like hunzels, gabbabusts, and primal screams. I immediately hate myself for what I’ve become.

The early boss level, Stage Dive, nearly killed me. You have to jump over and under death-bringers, spin the bad guy around the boss three times, dash forward, climb fading blocks, and keep going until you can hit him. Repeat. Classic frustrating gameplay. But if you persevere, you magically enter an almost zen state of failing and trying again and again, but the early parts are almost soothing in their repetition. It’s like whittling wood. And when you finally beat him? The feeling of reward feels like the last day of school before the holidays.

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“It’s like walking around with an orange peel in your front jeans pocket” – Crash Bandicoot 4 Photo: Activision/Toys for Bob

Maybe that’s the lesson of platform games. teeth Difficult. Fail teeth It’s frustrating, but if you invest the time and keep failing, you will succeed, and the reward will be comforting for future challenges.

Soon I found myself faced with one of the most perfectly crafted levels I’d ever seen in a game. Hook, Line and Sinker features every imaginable platform move in a variety of pirate ships. It’s a reminder that imagination combined with execution is art. Unfortunately, it’s only a fleeting joy in a forest of failure. The game gets harder and harder. I get angrier and angrier.

My wife told me to stop. She thought I was going to have a heart attack. I told her we just had to get through the level. She sat me down and very patiently taught me a jump technique I’d never used on blocks I’d never seen before that unlocked the entire level. She coached me like she did with her kids. I was Luke and she was Yoda.

I completed the level, my wife breathed a sigh of relief and let me climb into my wheelchair and scream into the clouds.

Source: www.theguardian.com

Review of Beats Solo 4: Apple’s headphones receive an Android enhancement | Headphones

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The Solo 4 headphones are an improvement on the fan-favorite headphones that made Beats famous, upgraded with longer battery life, improved sound quality, and the latest features favored by Apple and Android.

The original Solo HD was launched in 2009 and was updated in 2016 as the Solo 3 after Apple acquired Beats. Now in its fourth generation, the Solo headphones are the company’s smallest and lightest at £200 (€230 / $200 / AU$330), making them cheaper than the £350 Studio Pro.

The design remains essentially the same but has been updated with premium materials and color options. While competitors have moved away from this shape, Beats continues to offer on-ear headphones that sit on top of the ears rather than around them.

A slight reduction in pressure on the sides of your head and softer ear cushions make these headphones more comfortable than previous models. They fold up for easy transport and come with a compact, easy-to-use case.




The “b” logo in the ring surrounding it and the volume buttons are easy to use as they make a satisfying click sound when pressed. Photo: Samuel Gibbs/The Guardian

The left ear cup houses a Beats button with playback controls and a volume rocker, as well as a small, easy-to-miss white LED next to the 3.5mm headphone socket for the detachable cable, indicating power and connection status – a rare feature on wireless headphones these days.

The right cup houses the power button and a USB-C socket for charging the headphones, or for wired listening or calls with USB-equipped devices. The battery lasts up to 50 hours with Bluetooth playback, and the headphones can also be used without battery power using the included 3.5mm analog cable.

specification

  • weight: 217g

  • size: 177 x 158 x 68mm

  • driver: 40mm

  • Connectivity: Bluetooth 5.3, 3.5mm, USB-C audio and charging

  • Bluetooth Codec: SBC, AAC

  • Battery life: 50 hours

Source: www.theguardian.com

The EU to Receive €500 Million from Apple: Understanding the Impact on Technology

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a
The following week, there was another clash between Apple and European regulators. According to the Financial Times, the company could face a huge fine for alleged anti-competitive conduct in its music streaming business. from that story:


The fine, estimated at around 500 million euros, is expected to be announced early next month and will be exclusive to the European Commission, which is investigating whether Apple used its own platform to favor its own services over those of competitors. This will be the culmination of research into prohibition laws.


The investigation is looking into whether Apple blocked apps from informing iPhone users of cheaper alternatives to access music subscriptions outside the App Store.

The process dates back to a complaint filed by Spotify in 2019. From what we said at the time:


Apple’s app the Store is a key distribution platform for Spotify. However, Apple receives a 30% commission on all sales made through this site. Spotify and many other third-party app developers have long complained that the store (which includes music streaming subscriptions) is an unfair “tax.”


“Apple requires Spotify and other digital services to pay a 30% tax on purchases made through Apple’s payment system, including upgrades from free to premium services.” Said Daniel Ekco-founder of Spotify, chief executive officer in a blog post.


“If we pay this tax, we will be forced to artificially inflate the price of premium membership far above the regular price.” Apple Music. And keeping prices competitive for our customers is beyond our control. ”

For more information on the fine itself, Dan Milmo explains.

In the years since then, complaints have diminished somewhat. Apple declined to respond directly to the FT’s report, saying it does not comment on speculation, but pointed to the European Commission’s decision last year to exclude the “tax” aspect from an investigation launched by Spotify. ‘s complaint. The revised counter statement states that the main harm is no longer the 30% fee levied by apps that use in-app purchases or the requirement to offer them in the first place, but simply the fact that other payment options exist for users. It was forbidden to communicate.

“We are pleased that the European Commission has narrowed the issue and no longer challenges Apple’s right to collect fees on digital goods and require the use of in-app payment systems that users trust,” Apple said in a statement. Ta. time.

These so-called “anti-steering” rules have been tested by regulators around the world, and various jurisdictions have placed formal limits on Apple’s ability to impose them. But these restrictions rarely go as far as competitors like Spotify would like. Because Apple is letting out a sharp gasp. If forced to do so, companies could direct users to alternative payment methods and still charge fees. In some cases, that new fee accounted for 27% of costs, and his 3% reduction in in-app purchase fees was justified on the basis that it reflected the fact that Apple was not paying directly for credit card processing. I am.

“We are currently negotiating the price.”




Spotify on Apple Watch. Photo: Samuel Gibbs/The Guardian

Assuming the fine is imposed as expected, Apple is unlikely to be too disappointed. The Digital Markets Act, which Apple and other “tech gatekeepers” must comply with by March 6, has already forced changes to the App Store that will put Apple Music in unfair competition with Spotify. The Competition Commission’s concerns will almost certainly be corrected. As for the cash itself, “500 million isn’t a laughable amount, even for a company as big as Apple, but it’s a fraction of the maximum potential, and it’s a fraction of the company’s total.” An even smaller amount’ of annual profit.

In fact, it’s possible that Apple will avoid fines with dignity. The company hammers home one of its core points every time it is hit by regulatory action that leaves room for compromises, such as imposing a 27% fee on outside purchases. That is, the real criticism is not about the lofty points. Basically, it’s a simple haggling over fees. If complaints about Apple’s control of the App Store boil down to “I want to pay less,” that would be an easier fight than one that would force Apple to actually relinquish control of the platform.

Some critics make deeper claims. Spotify, for example, has long complained about more detailed aspects of Apple’s platform, from the fact that Apple Music is installed by default on its devices to the way platform owners break their own rules about free. I’ve been holding you. Trials (Apple can independently offer trials that end the moment they are canceled; all third parties must provide access until just before the first billing deadline).

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For others, the gist of the principle is poor in reality. Epic Games famously introduced a unique payment process for Fortnite, which resulted in Apple pulling the game from the App Store. The company already pays hefty cuts to operate its gaming consoles and operates its own app store for PCs. Issues with Apple have always been viewed through the lens of how much Apple pays.

Perhaps this is why Epic is also the longtime Apple critic most eager to enter the world of an EU-mandated alternative App Store. You may remember the debate over whether the company’s proposals amounted to “garbage” or meaningful concessions. Well, three weeks have passed,
Epic Games announces the launch of Epic Games Store for iOS.

This is a bold move. The company will immediately pay him 0.50 euros for every download on the store, and an additional 0.50 euros for every download of Fortnite via the store after his first 1 million. But compared to keeping it on the App Store, per user he should be able to get that amount back in one “Battle Pass” purchase. And to the company’s credit, it clearly believes the principles exist. At risk.

Cash is also constantly flushed in case it takes longer to break even. The company, which is run by founder and CEO Tim Sweeney and has a 40% minority stake held by China’s Tencent, announced earlier this month that it will become the world’s leading company in the world of gaming and entertainment. The collaboration required a $1.5 billion investment from Disney. Disney is a long-time ally of Apple, and its CEO was on Apple’s board of directors until 2019, but competition between Apple TV+ and Disney+ made that unsustainable. . We haven’t seen the beginnings of a messy breakup yet, but perhaps even the House of Mouse will want to pay a smaller share of the world’s most valuable company.

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Source: www.theguardian.com