Facebook, Apple stoush flares up
Facebook says Apple rejected its attempt to tell users about App Store fees, as the tech wars continue to escalate.
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4.40pm: Facebook says Apple rejected its attempt to tell users about App Store fees
Facebook on Thursday told Reuters that Apple Inc rejected its attempt to tell users the iPhone maker would take a 30 pc cut of sales in a new online events feature, forcing Facebook to remove the message to get the tool to users.
Facebook said that Apple cited an App Store rule that bars developers from showing “irrelevant” information to users.
“Now more than ever, we should have the option to help people understand where money they intend for small businesses actually goes. Unfortunately Apple rejected our transparency notice around their 30% tax but we are still working to make that information available inside the app experience,” Facebook said in a statement.
Apple did not respond to a request for comment.
Facebook earlier this month said it planned to roll out a new tool that would let online influencers and other businesses host paid online events as a way to offset revenue lost during the COVID-19 pandemic.
The company said it had asked Apple to waive the 30 pc fee the iPhone maker charges for in-app purchases so Facebook could pass on all of the events revenue to business owners, but that Apple declined.
Facebook had aimed to provide a notice of Apple’s cut to users, according to mock-ups it released at the time, but Reuters found on Thursday that the promised message was not present on the new events feature.
The social media giant also planned to tell users on Alphabet Inc’s Google Play store it would not collect a fee for ticket sales, but that message was not displayed either, Reuters found.
In publicly criticizing Apple’s App Store commissions, Facebook joined other developers such as “Fortnite” creator Epic Games, which is suing Apple on antitrust allegations over the fees. Facebook is also wrangling with Apple over new privacy rules for iPhones that will require more notifications before tracking users across apps.
Both companies, along with fellow tech giants Alphabet and Amazon, are facing multiple probes over alleged anticompetitive behavior.
Reuters
9.00am: ByteDance draws up contingency plan to shut TikTok
China’s ByteDance has told engineers of its popular short-video app TikTok to make contingencies should it need to shut down its US operations, even as it works toward divesting them, people familiar with the matter have said.
ByteDance has been ordered by President Donald Trump to divest TikTok in the UnS, amid security concerns over the personal data it handles. Microsoft and Oracle are among US companies vying to acquire the assets of TikTok, which claims about 100 million monthly active users in the U.S. ByteDance is expected to pick a bidder to enter into exclusive talks as early as Friday, according to the sources.
ByteDance told TikTok engineers in a memo this week to draw up plans for shutting down the app in the United States, the sources said.
ByteDance is also making separate plans for TikTok US employees and vendors to be compensated in the event of a shutdown, one of the sources added. TikTok has already implemented a hiring freeze in the US for most open positions because of the uncertainty, bringing in only 5 per cent of the staff it planned to recruit, according to the source.
ByteDance views the shutdown preparations as a back-up plan, and is working toward a deal that would keep TikTok operating in the United States without interruption, the sources said.
The sources requested anonymity as the shutdown preparations are confidential.
“We are confident that we will reach a resolution that ensures TikTok is here for the long run for the millions of Americans who come to the platform for entertainment, self-expression, and connection,” a TikTok spokesman said in a statement. “As any responsible company would do, we are simultaneously developing plans to try to ensure that our US employees continue to get paid in any outcome.”
Reuters
7.30am: Tesla shares surge to record high
Tesla shares have continued their meteoric rise, scoring yet another record high and further expanding the distance between the Silicon Valley electric carmaker and its traditional auto industry rivals.
Tesla shares rose to $US2,290 in mid-day trading before levelling out at $US2,240, the highest price since the company went public at $US17 a share in 2010.
Tesla’s shares have risen more than 420pc since the beginning of this year, turning some retail investors into millionaires.
While other carmakers are forced to invest billions to overhaul their internal combustion engine operations to produce battery-powered cars, investors are confident that Tesla can make the shift from a niche carmaker into a global leader in cleaner cars.
Tesla became the world’s most valuable carmaker by market capitalisation when it overtook former front runner Toyota Motors Corp on July 1. The company now accounts for 41pc of the total market cap of a group of 12 of the world’s largest automakers.
Tesla produces only a fraction of the vehicles sold by established global carmakers, many of which are considered growth engines for their local economies.
Japan’s Toyota and Germany’s Volkswagen sold 10.46 million and 11 million vehicles, respectively, during the 2019 financial year. That compares to the 367,200 vehicles Tesla delivered in 2019.
Tesla has said it would deliver at least half a million vehicles by the end of 2020, less than 5pc of Toyota’s and Volkswagen’s annual sales.
But Tesla withstood industry-wide fallout from the novel coronavirus pandemic and in July reported a second-quarter profit, clearing a hurdle that could lead to the electric carmaker’s inclusion in the S&P 500 index.
Reuters
Why that Valentine’s Day gift might head back to the shop
Australians returned more than $11m in gifts, or 88,600 items, in the fortnight after Christmas and it could be down to people cashing in what they can to make ends meet, a data collector says.
CEO still MIA as Richard White is back with a vengeance
WiseTech says it is progressing with its search for a new chief, as Richard White wastes no time settling into his new $1m a year consulting role at the company he took some brief leave from.