It has been reported that the Justice Department (DOJ) may soon issue a second monopoly lawsuit against Alphabet Inc (Google) over its giant’s digital advertising business.

Other Lawsuit

Back in July, Google was issued with an antitrust lawsuit by 38 US states over allegations relating to how it may have been abusing its position of power in relation to Android app distribution and competition, and for (allegedly) abusing its market power to make its search engine as dominant inside cars, TVs, and speakers as it has been in phones.

This Possible New Lawsuit

Reports that a new DOJ lawsuit may be on the way seems credible since Google was sued under former Attorney General William Barr over its search business, and then faced another antitrust complaint filed with many state attorneys alleging that Google had illegally monopolised the digital advertising market.  It is claimed that Google (allegedly) reached an illegal agreement with Facebook Inc., the purpose of which was to manipulate online auctions where advertisers and website publishers buy and sell ad space.

More Lawsuits

Google has faced other lawsuits in recent times, such as when Epic Games sued the $1 trillion tech giant over the removal of Fortnite from the Play Store last year (it was also removed from the iOS App Store).

Joe Biden Big Tech Crackdown

In more potentially bad news for Google (and other tech giants), in July this year, US President Joe Biden signed a new executive order to try and crack-down on anti-competitive practices in big tech. The executive order highlights how big players in the tech sector may be using their market power to box out smaller competitors and exploit consumers’ personal information.

Criticism Over Plans To Block Cookies

Back in March, U.S. Justice Department investigators were reported to have been concerned that Google’s plans to ban some cookies in its Chrome browser (which Google said would increase user privacy) could be a way for Google to hobble its smaller rival ad companies by stopping them from tracking users.

Although Google said that it planned not to simply remove third-party cookies but to phase them out over two years (to allow time to develop workarounds that address the needs of users), businesses, publishers, advertisers and critics noted that this may give Google a couple of years in which to be in control and to dominate other advertisers even more.

What Does This Mean For Your Business?

Clearly, following on from the Trump administration’s attacks on big tech, it seems that Joe Biden is also keen to tackle the tech giants, particularly on matters relating to competition and how they may be using their market power, and how this may be adversely affecting their smaller competitors. Google, Facebook and other big advertising platforms (particularly Google), are very much in the investigation (and lawsuit) firing lines. For Google, legislation, government regulation, and lawsuits are clearly something it would like to delay and avoid, but it looks as though Joe Biden’s administration intends to keep the pressure on. For business advertisers, being able to reach as many members of their target markets in the best and cheapest way possible (maximising ROI) is the key concern, and it remains to be seen how this would be affected if anti-competition action could be and was taken. For the time being, however, using lawsuits (and the bad publicity they generate) plus the threat of regulation are likley to be the only main leverage that governments have for bringing the very powerful, wealthy tech giants to account.

Following an investigation into WhatsApp Ireland Ltd, the Irish data regulator (DPC) has issued Facebook’s popular WhatsApp chat app with the second-largest GDPR fine of €225m.

Long Investigation

The eye-watering fine of €225 million follows an investigation that started way back on 10 December 2018.

Big Fine

The DPC had submitted a draft decision to all Concerned Supervisory Authorities (CSAs) under Article 60 GDPR in December 2020. After objections from eight CSAs, the DPC was able to start the dispute resolution process (Article 65 GDPR) on 3 June 2021 and on 28 July 2021, the European Data Protection Board (EDPB) decided to impose the fine on WhatsApp under Article 65(1)(a) GDPR.

..And a Reprimand

In addition to the fine, the DPC has imposed a reprimand along with an order for WhatsApp to bring its processing into compliance by taking a range of specified remedial actions.

Transparency

The DPC has said that the investigation, which led to the fine, related to WhatsApp’s GDPR transparency obligations regarding the provision of information and the transparency of that information to both users and non-users of WhatsApp’s service. This included information provided to data subjects about the processing of information between WhatsApp and other Facebook companies.

The problem with WhatsApp’s consumer services (not WhatsApp for Business), which is ‘explained’ in an 89-page document, appears to be that the descriptions of who ‘interests’ are, in relation to other business services and partners, are that they are not described in a transparent and intelligible form. In other words, it seems that the EDPB thought that WhatsApp may not have supplied enough information to users about how their data is processed, and that its privacy policies (which have been subject to several updates), may not be clear enough.

WhatsApp Says…

WhatsApp has said that it disagrees with the decision about the transparency it provided to users in 2018 and has described the penalties as “entirely disproportionate”.

Not The Only One

Even though this is a bad-break for WhatsApp, it is not the only big tech company to have found itself in trouble with data regulators.  For example, in July, Amazon received a staggering $885 million fine over data privacy, and in 2020, Twitter was fined €450,000 after a GDPR infringement.

Data Sharing For EU Users

Back in January, WhatsApp announced that in a change to its privacy policy (from February 8, 2021), users outside of Europe would have to agree to share their personal information with WhatsApp’s owner Facebook or leave the app.

An in-app notice is informing WhatsApp users of the terms of service and privacy policy changes, which were an extension of changes announced in July last year and were the result of discussions with the Irish Data Protection Commission and other Data Protection Authorities in Europe.

What Does This Mean For Your Business?

Even though one of the attractions of WhatsApp is its security and privacy, due to its end-to-end encryption, this fine indicates that there appears to have been, in 2018, a bit of grey area in terms of how user-data is processed and some of the meaning in the app’s privacy policies.  The problem appears to have been serious enough to warrant (according to the EDPB) the second biggest GDPR fine ever.  The news comes on the back of EU WhatsApp users having to accept their data being shared with Facebook (from February this year).  All this may be making WhatsApp users, particularly those who use WhatsApp for business, nervous about their privacy on the app in terms of details about their business and the passing on of their data (for targeted advertising).  Also, Facebook has faced significant trust issues with users since the Cambridge Analytica unauthorised data-sharing scandal plus having to share data with Facebook may be off-putting and may make them think about looking around for other possible secure comms apps. This fine represents some very poor publicity for WhatsApp at a time when it has been trying to compete with the likes of Snapchat and Apple, while nevertheless getting some good headlines too by announcing new features like its ‘View Once’ feature for photos and videos, and its ‘disappearing messages’ feature.

With so many browser-based security threats, here’s a fast and easy way to activate 2 settings in Google Chrome browser to protect you from the popular threats of phishing and untrusted browser extensions:

– Open the Chrome browser, click on the 3 dots (top-right) and select ‘Settings’.

– Click on ‘privacy and security’ (left hand-side).

– Click on ‘Security and Privacy Centre’.

– Turn the toggles to the ‘on’ position for ‘Extension Guard’ and ‘Anti Phishing’.

Microsoft has announced that from March 1st 2022, it will increase the prices of its Microsoft 365 and Office 365 subscription plans.

How Much?

Microsoft says that the price rises, which could be as much as 25 percent, will affect its commercial products in the following ways:

Microsoft 365 Business Basic, will rise from $5 to $6 per user (£3.63 to £4.36)

Microsoft 365 Business Premium will rise from $20 to $22 (£14.53 to £15.98)

Office 365 E1 will rise from $8 to $10 (£5.81 to £7.26)

Office 365 E3 will rise from $20 to $23 (£14.53 to £16.71)

Office 365 E5 will rise from $35 to $38 (£25.43 to £27.61)

Microsoft 365 E3 will rise from $32 to $36 (£23.25 to £26.15).

Microsoft points out that this will be “the first substantive pricing update since we launched Office 365 a decade ago”.

Why?

Microsoft says that the price rises reflect the increased value that it has delivered to its customers over the past 10 years. This includes its continuous re-investment in improving its products, the addition of 24 apps to its suites, the addition of 1,400 new features and capabilities. Also, four years ago, Microsoft launched 365 to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS) for its customers, and (the same year) it added Microsoft Teams as “the only integrated solution where you can meet, chat, call, collaborate, and automate business processes—right in the flow of work”.

The tech giant points to its innovative products and addition of value for customers in the three key areas communication and collaboration, security and compliance, and AI and automation as justification for next year’s price rise.

Something New Too

Microsoft is also using the introduction of its new unlimited dial-in for Microsoft Teams meetings across enterprise, business, frontline, and government suites as an extra justification for the price rises. Unlimited dial-in (available with subscription in over 70 countries and with interactive support in 44 languages and dialects) should eliminate difficulties in joining Teams meetings due to connectivity/patchy internet connection problems, thereby making it easier for users to join their Microsoft Teams meeting from virtually any device regardless of location.

What Does This Mean For Your Business?

This represents a considerable (and unwelcome) price hike for businesses in only 6 months-time, particularly for small businesses that have not been able to benefit from the bulk discounts that larger businesses have enjoyed over the years. With the Microsoft Office line being its biggest seller, bringing its revenue mostly from business customers who have used the products to help adapt to remote and hybrid working, Microsoft know that this price increase will now give a considerable boost to its revenue and profits and will allow it to expand its Office cloud business even more.

A Microsoft recent update announcement about Windows 11 appears to say that although the new OS still won’t run on some older PC’s, Microsoft doesn’t plan to stop you from trying.

The Problem

When Microsoft’s June Windows 11 announcement showed that its minimum hardware requirements meant that it would only support eighth generation and newer Intel Core processors (as well as Apollo Lake, and newer types of Pentium and Celeron processors), it became clear that the new OS may simply not be able to run on many older computers.

Also, the required “hard floor” (minimum configuration) for Windows 11 is that a device needs a Trusted Platform Module (TPM) chip (a type of security chip used for things like storing passwords and encryption keys) to run it.  Without this type of chip, Windows can’t be run on a device, and even with devices that meet the “soft floor”, they may receive a notification that an upgrade to Windows 11 is not advisable.

At the time, Microsoft recommended a Windows PC Health Check app as a way for users to find out whether their PC would be able to support Windows 11 (https://aka.ms/GetPCHealthCheckApp).

Latest Announcement … Expanded Chip List (A Bit)

In Microsoft’s latest announcement, it said that following tests of whether devices running on Intel 7th Generation and AMD Zen 1 processors could support the OS, it has expanded the list of compatible 64-bit processors to include Intel® Core™ X-series, Xeon® W-series, Intel® Core™ 7820HQ (only select devices that shipped with modern drivers based on Declarative, Componentised, Hardware Support Apps (DCH) design principles, including Surface Studio 2).

Microsoft also says that it has expanded the PC Health Check App so that it gives more information and links support articles with possible remediation steps for those whose PC doesn’t look like it will support Windows 11.

You Can Try

Microsoft also appears to be saying that users who try to install Windows 11 via Windows Update on their unsupported system won’t be able to, however installing Windows 11 manually from an ISO file boot disk (e.g. onto an older machine) will be possible, although there won’t be driver compatibility or much system stability, and it will be at the user’s own risk.

If Not 11, Then 10 Is For You

Microsoft says that for those who are using a PC that won’t upgrade to Windows 11, and who don’t want to buy a new device yet “Windows 10 is the right choice” and that Microsoft will still support Windows 10 through October 14, 2025.

What Does This Mean For Your Business?

Although having to test to see if your older computer can support Windows 11 (having those with older computers feeling excluded) isn’t the ideal way that Microsoft wanted to introduce its new OS, it’s not as bad as it sounds.  In reality, the minimum requirements for Windows 11 aren’t likely to exclude too many older devices although some may have the same stability issues that they may have experienced anyway with Windows 10. Clearly, Microsoft wants to make sure that its first new OS in a long time is up to the demands of modern users who regularly use their PCs for video conferencing, productivity, and gaming, and has set its minimum system requirements accordingly to align with many on these common apps. Businesses with older PCs that won’t take Windows 11 can continue with Windows 10 with support until late 2025 anyway. It will mean, however, for some businesses, it’s a case of thinking about replacing some PCs sooner than they would have liked to get the benefits of Windows 11.

Data Protection Reforms

Since Brexit, the UK government has been seeking to reform data protection regulations in the UK in a way that it says will cut down on what Digital Secretary Oliver Dowden has been quoted describing as the “needless bureaucracy” of the current system of data protection and data transfer between countries. The Government message is that the appointment of a new ICO who could “go beyond the regulator’s traditional role” would be a way to reform regulations and make new data adequacy agreements with other countries that would reduce barriers to data transfer, help data (and more trade) to flow more freely, and improve innovation and economic growth.  The government has been keen to stress that despite (and perhaps to facilitate) these planned changes, the new regulator will have a “light touch”, but data will still be protected.

Cookie Pop-Ups

It appears that cookie pop-ups have been used by the UK government as an example and as part of the justification for wanting to make changes to data protection laws. Digital Secretary Oliver Dowden has argued in recent media reports that the requirement for the kind of cookie pop-ups that are present on most large sites, asking for permission to store a user’s personal information, are a visible example of the kind of needless bureaucracy at work that could be avoided with a change to data regulations.

What Is Data Adequacy?

Data Adequacy partnerships are agreements that protections are in place and are similar in two countries, thereby allowing the safe sending of people’s personal data internationally. Having a data adequacy partnership in place was part of the negotiations with the EU for Brexit.

For post-Brexit UK, heralded by the impending appointment of John Edwards as the new ICO, the UK government is now keen to make new, more frictionless data adequacy partnership agreements with the EU and many different countries which the UK wants to trade with.

Criticism

Critics of the UK government’s post-Brexit push to reform data protection regulations with new data adequacy partnerships are worried that this could weaken the UK GDPR and lead to the personal and private data of UK citizens being put at risk of being taken and shared.

Privacy advocates have also been sceptical as to whether it is realistic and possible for the UK government to give UK citizens and consumers more control over how their data is used on the one hand, while also giving businesses (and the government) greater freedoms to use that data through new agreements.

EU and GDPR

It was only in June this year that the UK government managed to achieve a data adequacy agreement with the EU, and any more proposed changes to that agreement now by the UK may be difficult to negotiate.

Who Is John Edwards?

John Edwards, the person named to succeed the current Information Commissioner (data protection regulator) Elizabeth Denham, is currently New Zealand’s Privacy Commissioner and head of its Office of the Privacy Commissioner (OPC), where he has been in the job for more than 7 years. Prior to his work with the OPC, he was a self-employed barrister and solicitor focusing on information and privacy law, and Chair of the Global Privacy Assembly from 2014-17.

In addition to his obvious legal background and experience, he is also known for overseeing New Zealand’s adequacy status with the EU, which is one of the reasons why he is favoured for the UK job.

Hates Facebook?

Mr Edwards is also known for his apparent dislike for Facebook. In April 2019 for example, after Facebook appeared to not accept any responsibility for the Christchurch massacre (mosque shootings) where one shooter described YouTube to be “a significant source of information and inspiration”, Mr Edwards was quoted from his Twitter account in the Guardian as saying, “Facebook cannot be trusted” and that the company were “morally bankrupt pathological liars”. He was also quoted as saying of Facebook that they “allow the live streaming of suicides, rapes, and murders, continue to host and publish the mosque attack video, allow advertisers to target ‘Jew haters’ and other hateful market segments, and refuse to accept any responsibility for any content or harm”.

Recently, Mr Edwards has indicated on his Twitter account that he doesn’t hate Facebook.

Why Is This Relevant?

The relevance of a possible Facebook-hater as the ICO is that he would be responsible for imposing fines for breaches of the UK Data Protection Act 2018 and the Privacy in Electronic Communications Regulations (PECRs) and would have an influence over the UK government’s Online Safety Bill.  This Bill is designed to establish a new regulatory framework to tackle harmful content online and would, therefore, potentially affect Facebook as a major content hosting platform.

Is An Overseas Regulator A Problem?

Some critics have highlighted the fact that the current UK ICO, Elizabeth Denham, who has been criticised for not enforcing data protection laws well enough, has been working from home in Canada throughout most of the pandemic, and the UK now looks set to appoint another ICO from overseas where there is a different data protection regime.

What Does This Mean For Your Business?

If the government’s argument is to be accepted, changing data protection laws to help data transfers between different countries and the UK could unlock more trade and benefits for British businesses. If the argument of some data privacy/security advocates is to be accepted, new data laws could mean that our personal data is more at risk and that the government is proposing a balancing act that may not be possible to realistically achieve. For Facebook and other social media companies, the appointment of John Edwards as the new ICO may give them cause for concern given his previous comments about Facebook, and his soon-to-be power over the imposition of penalties and the possible impact of the development of the UK’s Online Safety Bill.