Following a recent US ruling that Google acted illegally to maintain a monopoly on its online search and the associated advertising, the US government has now proposed forcing Google to sell off parts of its business, potentially leading to the breakup of one of the world’s leading tech companies.

Antitrust Remedies – Structural Relief Suggested 

After years of investigation and following the outcome in August of a ten-week trial, a US judge delivered the landmark ruling that, “Google is a monopolist, and it has acted as one to maintain its monopoly.”  At the time, ‘structural’ remedies, i.e. ‘structural relief’ (altering the structure of a company to restore competitive conditions in a market) was one of the remedies suggested to curb Google’s anticompetitive practices (if other remedies weren’t adequate). In plain English, structural relief essentially means breaking up a company.

Sell Off Chrome Browser and Android OS? 

Following this ruling, The US Department of Justice (DoJ) and a coalition of state attorneys general have recently submitted a 32-page filing (PDF) document outlining suggested remedies to address Google’s monopolies in search and search advertising. The proposal suggests that Google could be forced to sell off key assets such as its Chrome browser and Android operating system, which the DoJ argues are used to maintain its illegal dominance.

Four Areas 

In fact, the DoJ has proposed four areas for potential remedies, which are:

1. Search distribution. The DoJ wants to limit or prohibit Google’s exclusive deals that set its search engine as the default on devices like iPhones and Android smartphones. This would reduce Google’s control over how users access search services and open the market for competition.

2. Data access and usage. This remedy would require Google to share its search data, such as search queries and results, with competitors. The goal is to prevent Google from having an unfair advantage through exclusive access to user data that can be used to improve its services. There are concerns about privacy and security risks, which Google has highlighted as a potential issue.

3. Extending search monopoly. With this issue, the DoJ is concerned that Google could use its dominance in search to extend its control to new areas, such as artificial intelligence. This proposal may prevent Google from using search data to train its AI models unless competitors have access to similar data.

4. Advertising practices. The DoJ is also targetting Google’s monopoly in digital advertising. It proposes increasing competition by forcing Google to license or syndicate its advertising platforms to other companies. This could involve changes to how Google auctions ad space, aiming to level the playing field for advertisers.

What Has Google Said In Response? 

Googles’ Lee-Anne Mulholland, Vice President, Regulatory Affairs has issued a written response online which she essentially argues that Google believes the DoJ’s proposals (which she says are “radical and sweeping”) go beyond the legal issues at hand and could have far-reaching, unintended consequences for consumers, businesses, and American technological leadership. For example, Mulholland made the following points in Google’s defence:

– In terms of privacy and security risks, Google argues that forcing it to share sensitive search data, such as queries and results, with competitors would create significant privacy and security risks. These concerns stem from the potential for bad actors to access personal data in less secure environments. Google emphasises that current strict security standards protect user data, and sharing this information with other companies could compromise this.

– In relation to the impact on AI innovation, Google is concerned that restrictions on its use of search data for training AI models would hinder American innovation. The company highlights the competitive nature of the global AI industry and argues that government intervention could skew investment and slow down the development of new technologies at a critical moment.

– On the key issue of divesting Chrome and Android, it’s not surprising that Google opposes the idea of separating Chrome and Android from its business, claiming that this would disrupt the products and their open-source nature. The company argues that Chrome and Android benefit users through security features and by keeping costs low. Splitting them off, according to Google, would make them more expensive to maintain, jeopardise security updates, and hurt competition with Apple’s ecosystem

– In relation to disruption to advertising, Google believes that changes to its advertising system would hurt small businesses and publishers that rely on its platform. It argues that its current system helps level the playing field for advertisers of all sizes and that mandated changes could reduce the value of online ads for everyone involved.

– Addressing concerns about overreach and consumer harm, Google criticises the DoJ’s proposed restrictions on search distribution contracts, arguing that these would create unnecessary friction for users trying to access information and would reduce revenue for companies like Mozilla and Android device manufacturers, potentially raising costs for consumers.

Appeal 

The DoJ’s filing is just a proposed framework of potential remedies, with a more detailed filing being due in November 2024. Google has stated that it plans to appeal the ruling in the DoJ’s antitrust case over its search monopoly. However, the exact date for Google’s appeal has not yet been set, although Google is expected to respond to the U.S. Department of Justice’s proposals by December 2024. The legal appeal process could take years before a final resolution is reached.

What Would Happen If Google Was Broken Up? 

If Google is eventually forced to sell off major parts of its business, like Android and Chrome, it would significantly impact both the company and the broader market. For example, some of the key impacts would be:

– To Google’s business. Losing Android and Chrome would dismantle Google’s integration across mobile and web platforms. Android, key to mobile search and app distribution, could fragment without Google’s resources, potentially increasing device costs and slowing updates. Chrome, which dominates the browser market, would also be less efficient without Google’s web service integration.

– The market impact. A breakup would create opportunities for competitors like Apple and Microsoft to gain market share. It would reduce anti-competitive barriers in mobile operating systems and browsers, enabling smaller players to thrive.

– Consumer and security concerns. Consumers might face fragmented services and reduced security, as Google’s current seamless integration between products could be disrupted. Google also argues that splitting off Android and Chrome could hinder innovation and security across platforms.

Didn’t Work Before With Microsoft

It should be noted here, however, that the DoJ’s attempt to break up Microsoft in 2000 failed, which showed how complex and uncertain efforts to dismantle tech giants can be. Also, subsequent attempts to limit Microsoft’s dominance, like the ineffective browser ballot in 2007, have highlighted the difficulty of regulating major companies, and Google may face similar challenges.

What About Search Evolution? 

Currently, the search market is evolving, with disruptions from AI and social media. While it may be true that Google still dominates, new technologies, such as large language models (LLMs), could weaken its hold, much like how Microsoft lost ground to Google Chrome in the browser wars. Google has, indeed, acknowledged that competition in search is growing, especially with AI transforming the landscape. This evolving market might naturally reduce Google’s dominance, potentially making a breakup less impactful over the long term.

What Does This Mean For Your Business? 

As the battle between Google and the DoJ continues, the question of whether the proposed breakup will actually happen remains uncertain. The complexities of dismantling a tech giant like Google are vast, as evidenced by previous attempts to regulate similar companies like Microsoft. While the DoJ is pushing hard for structural remedies, Google’s appeal and the lengthy legal process could stall any significant changes for years. Even if the breakup does occur, the impact might not be as transformative as expected, with AI and new technologies already shaking up the search market.

For Google, losing key assets like Android and Chrome would significantly weaken its control over the mobile and web ecosystems, making it harder to maintain the same level of integration and innovation. Competitors like Apple and Microsoft would undoubtedly benefit from the opening, gaining ground in both mobile and browser markets. However, consumers might face higher costs and fragmented services, especially if the separation affects Android’s open-source model or Chrome’s security features.

This shift could also create challenges for businesses that rely heavily on Google’s services. Many small and medium-sized enterprises depend on Google’s ad platform and tools like Google Analytics for visibility and revenue. A forced breakup could disrupt these services, raising costs or making the platforms less efficient. Similarly, businesses that develop apps for Android could face increased complexity if Android were to be handled by a different company, with potential delays in software updates and security patches affecting their operations.

At the same time, the evolving nature of search itself could change the landscape faster than any regulatory intervention. AI-driven platforms and social media are already challenging Google’s dominance, potentially rendering a breakup less impactful in the long term. Google has acknowledged that competition is intensifying, and the market could naturally shift away from its control as new technologies develop.

Ultimately, the road ahead is uncertain, and the final outcome of this antitrust case will set a precedent for future tech regulation. Whether through legal action or technological disruption, Google’s position at the top may not be as secure as it once was. The next few years will be pivotal in determining how the search market, and the broader tech industry, will evolve and how businesses that rely on Google’s ecosystem will adapt to this change.

What happens to data gathered as part of Ryanair’s extra ID verification requirement (from customers who don’t book directly through its website), has led to an inquiry being launched by Ireland’s Data Protection Commission (DPC).

Why ID Verification? 

For travellers booking flights through third-party websites or online travel agents (OTA), rather than directly through Ryanair, the Irish low-cost airline requires them to complete a Customer Verification Process. The reason, given by Ryanair, is that third-party agents sometimes provide incorrect or incomplete passenger information, e.g. fake contact or payment details, which can interfere with Ryanair’s ability to communicate important flight details directly to passengers.

Also, Ryanair has long opposed OTAs and third-party websites that sell its tickets without permission, often through “screen scraping” techniques. This practice involves OTAs gathering flight data from Ryanair’s website and reselling tickets, sometimes at inflated prices. Ryanair argues that this is what leads to the incorrect information being given to it, and to poor customer experiences. For example, in July 2024, a US court ruled against Booking.com in a screen-scraping case, reinforcing Ryanair’s stance. The airline, therefore, urges customers to book directly through its site to avoid such issues and ensure proper communication and service.

What Type of ID Verification Does Ryanair Require? 

Ryanair offers travellers two verification options when they attempt to book flights through OTAs and third-party websites. These are:

– Express verification. This (faster option) actually uses facial recognition technology to confirm the traveller’s identity. It costs around €/£0.59 and can be completed in a few minutes with the use of a passport or national ID and a device with a camera.

– Standard Verification. This is the free alternative where travellers submit a signed customer verification form along with their ID. However, this method can take up to seven days to process, so it’s not ideal for last-minute bookings.

Why The DPC Inquiry? 

It seems, however, that aspects of Ryanair’s ID verification requirement have led to scrutiny, particularly concerning the use of facial recognition and compliance with GDPR regulations.

On October 4, Ireland’s DPC announced that it had opened an inquiry into Ryanair’s processing of personal data as part of the Customer Verification Processes in question. Graham Doyle, Deputy Commissioner with the DPC commented: “The DPC has received numerous complaints from Ryanair customers across the EU/EEA who after booking their flights were subsequently required to undergo a verification process. The verification methods used by Ryanair included the use of facial recognition technology using customers’ biometric data. This inquiry will consider whether Ryanair’s use of its verification methods complies with the GDPR.” 

Data Processing  

The DPC said the decision to conduct the inquiry under Section 110 of the Data Protection Act 2018[2], taken by the Commissioners for Data Protection, Dr. Des Hogan and Dale Sunderland, “was notified to Ryanair earlier this week”. The DPC has also said the inquiry is “cross-border [3] in nature” (reportedly, with one other country) and “will consider whether Ryanair has complied with its various obligations under the GDPR, including the lawfulness and transparency of the data processing”. 

Considering Ryanair is an international airline, it’s perhaps not surprising that there’s a cross-border nature to the inquiry. Looking at the wider meaning of DPC’s statement about the inquiry, it looks likely that it will assess whether Ryanair’s data processing practices comply with the GDPR, particularly focusing on key areas like lawfulness (whether Ryanair had a legitimate basis to collect and use passengers’ data) and transparency (whether passengers were adequately informed about how their data would be used). This scrutiny is often triggered when there are concerns over how personal data, including sensitive information such as biometric data, is handled, especially given Ryanair’s use of facial recognition technology during its verification process.

What Does Ryanair Say? 

A Ryanair spokesperson has been (widely) quoted as saying: “We welcome this DPC inquiry into our Booking Verification process, which protects customers from those few remaining non-approved OTAs, who provide fake customer contact and payment details to cover up the fact that they are overcharging and scamming consumers. 

“Customers who book through these unauthorised OTAs are required to complete a simple verification process (either biometric or a digital verification form) both of which fully comply with GDPR. This verification ensures that these passengers make the necessary security declarations and receive directly all safety and regulatory protocols required when travelling, as legally required.” 

What Does This Mean For Your Business? 

The inquiry into Ryanair’s third-party booking verification process not only places the airline under scrutiny but also raises significant questions for the wider aviation industry. As data protection laws like the GDPR continue to evolve, airlines worldwide must carefully consider how they collect, process, and store customer data, particularly when it comes to sensitive biometric information. It’s worth remembering that this case relates to the use of acial recognition just at the booking stage, not at passport control, and with the DPC examining whether Ryanair’s use of facial recognition and other data practices comply with GDPR, this case could set a precedent that impacts other airlines, potentially forcing them to reassess their own data handling processes to avoid similar regulatory challenges.

For Ryanair’s competitors, should the DPC find Ryanair’s practices in breach of GDPR, it might prompt a broader review of data collection methods across the industry. Airlines that rely on similar verification processes, or those planning to introduce biometric solutions, may need to quickly adapt to ensure compliance. On the other hand, airlines with more traditional booking and verification systems could use this moment to differentiate themselves by emphasising stronger privacy protections and more transparent data use.

From a customer perspective, the inquiry highlights growing concerns about privacy and the use of personal data in an increasingly digital world. As biometric technology becomes more common in verification and security processes, passengers are becoming more aware of how their data is used and protected. Trust, transparency, and a clear explanation of how personal data is processed may become critical factors in how customers choose which airline to fly with. Airlines that successfully balance security with privacy may gain a competitive advantage, particularly in an industry where reputation and customer loyalty are so crucial.

Ultimately, the outcome of this inquiry may have some far-reaching consequences, not only for Ryanair but for the aviation sector as a whole. This case is a reminder that data protection is now a key pillar of operational strategy, and one that cannot be overlooked in the drive to enhance customer security and streamline digital processes. The industry will be watching closely to see how Ryanair navigates these regulatory waters and what this means for the future of data handling in the aviation world.

The U.S. National Labour Relations Board (NLRB) has accused Apple of restricting employees’ rights to advocate for better conditions by limiting their use of social media and Slack and retaliating against those who raised concerns.

The NLRB’s allegations, filed this month, focus on Apple’s work rules regarding Slack and social media use. Apple, which introduced Slack to its employees several years ago, saw the platform grow as a key tool for workers to discuss workplace concerns, particularly during the COVID-19 pandemic. However, the NLRB says that Apple has since imposed restrictions on how workers can use the platform, undermining their ability to freely advocate for better working conditions.

The NLRB claims that Apple maintained illegal policies, including restricting the creation of new Slack channels without management’s approval and requiring employees to report workplace concerns directly to a manager or designated support team. The complaint also includes accusations of Apple sacking an employee for workplace activism and pressuring another to delete a social media post, actions which the NLRB claims violate labour laws.

The complaint is part of a broader pattern, with Apple facing a similar NLRB complaint just a week earlier, accusing it of enforcing overly broad confidentiality, nondisclosure, and noncompete agreements that limited workers’ rights. In both cases, Apple has denied the accusations. An Apple spokesperson is reported as saying that Apple is committed to providing “a positive and inclusive workplace”, takes employee concerns seriously, and strongly disagrees with the NLRB’s claims.

The current case stems from a 2021 complaint filed by former Apple employee Janneke Parrish, who claims she was sacked in retaliation for her role in workplace activism. Parrish had used Slack and social media to organise efforts around remote work, pay equity, and discrimination at Apple. Parrish’s lawyer argues that Apple engaged in “extensive violations” of workers’ rights, asserting that employees were punished for raising critical workplace issues, particularly around gender and racial discrimination.

If Apple and the NLRB can’t reach a settlement on the matter, it looks likely that the case will go to a hearing before an administrative judge in February. The outcome of the hearing could set a significant precedent for the rights of employees in the tech industry, with broader implications for how companies handle worker communication and activism.

China-backed hackers have breached the wiretap systems of several major U.S. telecom and internet providers, exposing critical vulnerabilities and likely collecting vast amounts of internet traffic to gather intelligence on Americans.

These wiretap systems, required by the 1994 Communications Assistance for Law Enforcement Act (CALEA), grant authorised personnel (e.g. law enforcement agencies) almost unfettered access to user data, including internet traffic and browsing histories. However, these systems have long been viewed as security risks, with experts warning of their potential misuse. For example, Georgetown Law professor Matt Blaze called the breach “inevitable,” highlighting the inherent dangers of building backdoors meant for lawful purposes, which are prone to exploitation by malicious actors.

The Wall Street Journal recently reported that the hacking group, known as ‘Salt Typhoon’, breached at least three of the largest U.S. providers – AT&T, Lumen, and Verizon – to access these systems. While the full extent of the damage remains unclear, some US national security sources have described the breach as potentially catastrophic. The hackers are thought to be positioning for future cyberattacks, possibly as part of tensions between the U.S. and China over Taiwan. The breach has reignited debate over the risks of government-mandated backdoors, with experts like Stanford’s Riana Pfefferkorn pointing out that such systems “jeopardise” rather than protect users.

The revelations come amidst growing global concern over government backdoors and encryption, with other countries, including those in the EU, also considering legislation that could weaken digital security. Signal president Meredith Whittaker echoed warnings that “there’s no way to build a backdoor that only the ‘good guys’ can use,” underscoring the wider implications of the breach.

To guard against the risk of such attacks, the advice for businesses is to use strong encryption, limit data access to the minimum necessary personnel, and continuously review and update security practices to close potential vulnerabilities in systems.

Paris-based biotech startup BaCta, which has just secured €3.3 million in funding, produces natural rubber using genetically engineered bacteria, thereby offering a sustainable alternative to traditional rubber sources and synthetic, petroleum-based versions.

What’s The Problem With How We Get Rubber Now? 

The current methods of rubber production present several significant environmental and sustainability issues. Synthetic rubber, which makes up about half of the global supply, is derived from petroleum-based chemicals. This process is highly energy-intensive and contributes heavily to CO2 emissions, exacerbating climate change. Also, synthetic rubber is non-biodegradable, meaning it persists in the environment, adding to the growing issue of plastic waste pollution.

Natural rubber, sourced from Hevea trees, is also not without its problems. While it may seem more environmentally friendly, the growing demand for rubber has driven deforestation in tropical regions, where land is cleared for plantations. This not only destroys vital ecosystems and reduces biodiversity but also releases significant amounts of carbon stored in trees and soil, further worsening climate change. Also, these rubber plantations are typically monocultures, which can degrade soil health and make crops more vulnerable to pests and disease.

Both forms of rubber production are under increasing pressure as manufacturers face stricter emissions regulations. The deforestation linked to natural rubber and the reliance on petrochemicals for synthetic rubber are incompatible with global sustainability goals. The industry also often suffers from supply chain instability, compounded by climate change and socio-political issues in rubber-producing regions.

Factors such as these have led to growing interest in alternatives like BaCta’s bioengineered rubber, which aims to offer a carbon-neutral, renewable solution that mitigates the environmental and ethical concerns associated with traditional rubber production.

How Does BaCta Make Rubber From Bacteria? 

BaCta produces rubber using genetically engineered bacteria, specifically Escherichia coli. The process begins by feeding these bacteria a renewable feedstock, such as glucose, acetate, or even carbon directly captured from the atmosphere. Inside the bacteria, AI-designed enzymes transform the carbon source into isoprene, the key building block of rubber. The bacteria then polymerise the isoprene into natural rubber through a unique synthetic pathway. The resulting synthetic rubber is then extracted and purified. This method allows BaCta to create high-quality, carbon-neutral rubber without the environmental downsides of traditional methods, such as deforestation or petrochemical dependence.

Benefits 

BaCta’s synthetic rubber offers several key benefits. For example:

– Carbon neutrality. The production process is designed to be carbon-neutral, and potentially even carbon-negative, significantly reducing the carbon footprint compared to traditional rubber production. BaCta says on its website that not using traditional rubber could mean, “More than 500 million tons eqCO2 could be removed every year”.

– It uses renewable feedstock. BaCta uses renewable sources like glucose, acetate, and carbon in its synthetic rubber production, thereby avoiding reliance on petroleum (used in synthetic rubber) or deforestation (linked to natural rubber).

– It’s hypoallergenic. By engineering the bacteria to remove specific proteins found in natural rubber (sap), BaCta’s rubber can be hypoallergenic, reducing the risk of allergic reactions.

– It’s sustainable. The process avoids the environmental issues of deforestation and land degradation associated with rubber plantations, making it a more sustainable option.

– It’s high quality. BaCta says its material is, “Superior quality Long chain, ultra-low impurity content, hypoallergenic rubber”. 

– Cost competitiveness. BaCta aims to produce rubber at a price point that’s competitive with conventional rubber (at a “fixed price, no fluctuation, no uncertainty”), while delivering environmental benefits.

Has A Functioning ‘Proof of Concept’ 

BaCta has moved beyond the conceptual stage and already has a functioning proof of concept (PoC) for producing natural rubber using the engineered bacteria. That said, although company has successfully demonstrated the process in the lab, it is still in the early stages of scaling up production. Currently, BaCta is working on increasing its output, aiming to move from laboratory-scale production (milligrams of rubber) to industrial levels, with the next step being a pilot-scale operation involving larger fermenters.

Funding 

The company recently secured €3.3 million in funding from investors including OVNI Capital, Kima Ventures, and several business angels. This funding is intended to support the scale-up process, helping BaCta transition from producing small batches to larger quantities needed for commercial use.

Rubber For What?

Initially, BaCta plans to start by targeting the luxury fashion industry, e.g. for use in the manufacture of premium shoes and bags, which requires smaller amounts of high-quality rubber, before expanding into more industrial applications.

What Does This Mean For Your Organisation? 

BaCta’s innovative approach to rubber production could have far-reaching implications for the many industries that rely heavily on rubber. From automotive manufacturers, which use rubber for tyres, seals, and various components, to healthcare sectors that depend on rubber for gloves, tubing, and other essential products, the potential applications of BaCta’s sustainable rubber are vast. Although BaCta’s initial target is businesses in the fashion industry, by providing a carbon-neutral, renewable alternative to traditional rubber, BaCta can potentially offer businesses in many industries a chance to significantly reduce their environmental impact. This is especially important as industries face mounting pressure to meet stringent emissions regulations and consumer demand for sustainable products.

For businesses, switching to BaCta’s bioengineered rubber could mean not only reducing their carbon footprints but also gaining a competitive edge in a marketplace that increasingly values eco-friendly practices. With its ability to produce hypoallergenic, high-quality rubber that is cost-competitive with traditional options, BaCta’s product could easily replace conventional rubber without sacrificing performance or cost efficiency. Also, as supply chain disruptions and resource scarcity become more prevalent due to climate change, BaCta’s method, which bypasses the need for deforestation and petrochemicals, presents a more stable and sustainable alternative.

As BaCta scales up its production, it could also help businesses mitigate the risks associated with the volatility of traditional rubber supply chains, which are often subject to geopolitical tensions and environmental degradation. If widely adopted, this new form of rubber could lead to a significant reduction in global CO2 emissions and deforestation, offering industries a pathway to sustainable growth while aligning with global climate goals. BaCta’s synthetic rubber could, therefore, reshape the future of rubber-reliant industries, making sustainability a reality.

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