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The US Department of Justice is suing TikTok for violating a child privacy law and violating a 2019 agreement with the Federal Trade Commission for previous privacy violations. The lawsuit stems from an earlier investigation into the company by the Federal Trade Commission, which referred its privacy case to the DoJ earlier this year.
The FTC had been looking into whether TikTok had violated the terms of an earlier privacy settlement with Musical.ly, which was acquired by ByteDance prior to the launch of TikTok. According to the FTC, the investigation found that TikTok had “flagrantly” violated both the 2019 settlement and the Children’s Online Privacy Protection Act (COPPA).
In a statement, the Justice Department also cited TikTok’s collection of personal information about children on its platform and its failure to comply with the requests for the information to be deleted.
From 2019 to the present, TikTok knowingly permitted children to create regular TikTok accounts and to create, view, and share short-form videos and messages with adults and others on the regular TikTok platform. The defendants collected and retained a wide variety of personal information from these children without notifying or obtaining consent from their parents. Even for accounts that were created in “Kids Mode” (a pared-back version of TikTok intended for children under 13), the defendants unlawfully collected and retained children’s email addresses and other types of personal information. Further, when parents discovered their children’s accounts and asked the defendants to delete the accounts and information in them, the defendants frequently failed to honor those requests. The defendants also had deficient and ineffectual internal policies and processes for identifying and deleting TikTok accounts created by children.
In a statement, TikTok said it took issue with the allegations, saying it had previously addressed some of the conduct described by the Justice Department. “We disagree with these allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed,” the company said. “We are proud of our efforts to protect children, and we will continue to update and improve the platform. To that end, we offer age-appropriate experiences with stringent safeguards, proactively remove suspected underage users, and have voluntarily launched features such as default screentime limits, Family Pairing, and additional privacy protections for minors.”
The lawsuit comes at a particularly inconvenient time for TikTok, which is set to face off with the Justice Department in federal court next month over a law that aims to force ByteDance to sell the app or face a ban in the United States.This article originally appeared on Engadget at https://www.engadget.com/the-justice-department-sues-tiktok-for-breaking-child-privacy-laws-190456433.html?src=rss

The US Department of Justice is suing TikTok for violating a child privacy law and violating a 2019 agreement with the Federal Trade Commission for previous privacy violations. The lawsuit stems from an earlier investigation into the company by the Federal Trade Commission, which referred its privacy case to the DoJ earlier this year.

The FTC had been looking into whether TikTok had violated the terms of an earlier privacy settlement with Musical.ly, which was acquired by ByteDance prior to the launch of TikTok. According to the FTC, the investigation found that TikTok had “flagrantly” violated both the 2019 settlement and the Children’s Online Privacy Protection Act (COPPA).

In a statement, the Justice Department also cited TikTok’s collection of personal information about children on its platform and its failure to comply with the requests for the information to be deleted.

From 2019 to the present, TikTok knowingly permitted children to create regular TikTok accounts and to create, view, and share short-form videos and messages with adults and others on the regular TikTok platform. The defendants collected and retained a wide variety of personal information from these children without notifying or obtaining consent from their parents. Even for accounts that were created in “Kids Mode” (a pared-back version of TikTok intended for children under 13), the defendants unlawfully collected and retained children’s email addresses and other types of personal information. Further, when parents discovered their children’s accounts and asked the defendants to delete the accounts and information in them, the defendants frequently failed to honor those requests. The defendants also had deficient and ineffectual internal policies and processes for identifying and deleting TikTok accounts created by children.

In a statement, TikTok said it took issue with the allegations, saying it had previously addressed some of the conduct described by the Justice Department. “We disagree with these allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed,” the company said. “We are proud of our efforts to protect children, and we will continue to update and improve the platform. To that end, we offer age-appropriate experiences with stringent safeguards, proactively remove suspected underage users, and have voluntarily launched features such as default screentime limits, Family Pairing, and additional privacy protections for minors.”

The lawsuit comes at a particularly inconvenient time for TikTok, which is set to face off with the Justice Department in federal court next month over a law that aims to force ByteDance to sell the app or face a ban in the United States.

This article originally appeared on Engadget at https://www.engadget.com/the-justice-department-sues-tiktok-for-breaking-child-privacy-laws-190456433.html?src=rss

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Warner Bros. Discovery is shuttering Boomerang, a streaming service dedicated to classic cartoons, according to The Hollywood Reporter. The platform started as a digital cable channel back in 2000 before expanding to a streaming platform in 2017.
Boomerang will officially cease operations on September 30, giving subscribers around two months to quickly binge every Looney Tunes, Tom and Jerry and Scooby-Doo cartoon. However, some content will be folded into Max. The linear channel will continue to operate via cable and satellite providers, reaching an estimated 26 million homes.
Additionally, Boomerang subscribers will be grandfathered into Max’s ad-free tier “with no change” to the subscription price “until further notice,” according to an email sent to users. That’s a dang good deal, as Boomerang costs $6 per month and Max’s ad-free plan currently costs $17 per month.
Max
Max, however, is already home to much of the same programming as Boomerang. This includes Looney Tunes shorts, several Scooby-Doo shows, Tom and Jerry and The Flintstones, among others. It’s also home to the entire catalog of Cartoon Network shows and plenty of DC animated series, like Harley Quinn.
The company hasn’t specified which shows and movies would be making the move to Max, simply telling subscribers that “some Boomerang content may not be available” after September 30.
Boomerang isn’t the only cartoon-adjacent streaming platform on the chopping block. Kid-friendly Noggin shut down earlier this year after layoffs at parent company Paramount Global. On the upside, Disney+ has plenty of cartoons, given the pedigree, and the same goes for Netflix and Prime Video.This article originally appeared on Engadget at https://www.engadget.com/say-goodbye-to-boomerang-the-streaming-service-dedicated-to-classic-cartoons-182127381.html?src=rss

Warner Bros. Discovery is shuttering Boomerang, a streaming service dedicated to classic cartoons, according to The Hollywood Reporter. The platform started as a digital cable channel back in 2000 before expanding to a streaming platform in 2017.

Boomerang will officially cease operations on September 30, giving subscribers around two months to quickly binge every Looney Tunes, Tom and Jerry and Scooby-Doo cartoon. However, some content will be folded into Max. The linear channel will continue to operate via cable and satellite providers, reaching an estimated 26 million homes.

Additionally, Boomerang subscribers will be grandfathered into Max’s ad-free tier “with no change” to the subscription price “until further notice,” according to an email sent to users. That’s a dang good deal, as Boomerang costs $6 per month and Max’s ad-free plan currently costs $17 per month.

Max, however, is already home to much of the same programming as Boomerang. This includes Looney Tunes shorts, several Scooby-Doo shows, Tom and Jerry and The Flintstones, among others. It’s also home to the entire catalog of Cartoon Network shows and plenty of DC animated series, like Harley Quinn.

The company hasn’t specified which shows and movies would be making the move to Max, simply telling subscribers that “some Boomerang content may not be available” after September 30.

Boomerang isn’t the only cartoon-adjacent streaming platform on the chopping block. Kid-friendly Noggin shut down earlier this year after layoffs at parent company Paramount Global. On the upside, Disney+ has plenty of cartoons, given the pedigree, and the same goes for Netflix and Prime Video.

This article originally appeared on Engadget at https://www.engadget.com/say-goodbye-to-boomerang-the-streaming-service-dedicated-to-classic-cartoons-182127381.html?src=rss

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Another giant name in the gaming press is shutting down its operations. Game Informer announced today that it’s been shut down by its parent company GameStop after 33 years in the business. The entire website and its archives have also been removed and now redirect to the magazine’s final statement of thanks to its readers.
“After 33 thrilling years of bringing you the latest news, reviews and insights from the ever-evolving world of gaming, it is with a heavy heart that we announce the closure of Game Informer,” the publication’s statement reads. 
The Final Level: Farewell from Game Informer 🕹️ pic.twitter.com/tmrEB2TE7U— Game Informer (@gameinformer) August 2, 2024
Several social media posts confirmed the sad news about the state of the magazine and its staff. Lead video producer Alex Van Aken posted on X that the staff didn’t know what was happening until “there’s a tweet that someone higher up posting spilling the news.”
Game Informer’s content director Kyle Hilliard says on X that the bad news about the mass staff layoffs landed right when they were in the middle of creating a new issue. “A frustrating turn of events (especially considering we were about 70 percent done with the next issue and it was going to have a GREAT cover),” Hilliard wrote on X.
The magazine launched in August of 1991 under the FuncoLand game store brand with Sonic the Hedgehog sprinting across its cover. The cover headlines promised “sizzling hot pre-release reviews inside!” on games like Decap Attack, Micro Machines and NHL Hockey. GameStop acquired the FuncoLand brand in 2000 and the gaming magazine. Game Informer amassed a peak readership of 6 million, according to its official website.This article originally appeared on Engadget at https://www.engadget.com/game-informer-magazine-is-shutting-down-after-33-years-181549995.html?src=rss

Another giant name in the gaming press is shutting down its operations. Game Informer announced today that it’s been shut down by its parent company GameStop after 33 years in the business. The entire website and its archives have also been removed and now redirect to the magazine’s final statement of thanks to its readers.

“After 33 thrilling years of bringing you the latest news, reviews and insights from the ever-evolving world of gaming, it is with a heavy heart that we announce the closure of Game Informer,” the publication’s statement reads. 

Several social media posts confirmed the sad news about the state of the magazine and its staff. Lead video producer Alex Van Aken posted on X that the staff didn’t know what was happening until “there’s a tweet that someone higher up posting spilling the news.”

Game Informer’s content director Kyle Hilliard says on X that the bad news about the mass staff layoffs landed right when they were in the middle of creating a new issue. “A frustrating turn of events (especially considering we were about 70 percent done with the next issue and it was going to have a GREAT cover),” Hilliard wrote on X.

The magazine launched in August of 1991 under the FuncoLand game store brand with Sonic the Hedgehog sprinting across its cover. The cover headlines promised “sizzling hot pre-release reviews inside!” on games like Decap Attack, Micro Machines and NHL Hockey. GameStop acquired the FuncoLand brand in 2000 and the gaming magazine. Game Informer amassed a peak readership of 6 million, according to its official website.

This article originally appeared on Engadget at https://www.engadget.com/game-informer-magazine-is-shutting-down-after-33-years-181549995.html?src=rss

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Instagram is blocked in Turkey amid a dispute over Hamas-related content on the platform. The app has been inaccessible in the country since Friday morning. Netblocks, an organization that tracks internet and social media outages, confirmed that Instagram had been restricted in the country.
Turkish regulators didn’t specify why the block was in place but, as Bloomberg reports, the crackdown on Instagram appears to be related to its handling of Hamas-related posts on the platform. On Friday, Turkey’s head of communications Fahrettin Altun, said in a post on X that Instagram “is actively preventing people from posting messages of condolences” for Ismail Haniyeh, the Hamas leader who was killed earlier this week.
Meta hasn’t publicly commented on the block.
It’s not the first time Turkish authorities have blocked a major social media service. Twitter was briefly blocked in the country last year following a devastating earthquake that killed thousands of people. YouTube and Twitter were also blocked in 2014.This article originally appeared on Engadget at https://www.engadget.com/turkey-has-blocked-instagram-amid-a-dispute-over-hamas-related-content-175934777.html?src=rss

Instagram is blocked in Turkey amid a dispute over Hamas-related content on the platform. The app has been inaccessible in the country since Friday morning. Netblocks, an organization that tracks internet and social media outages, confirmed that Instagram had been restricted in the country.

Turkish regulators didn’t specify why the block was in place but, as Bloomberg reports, the crackdown on Instagram appears to be related to its handling of Hamas-related posts on the platform. On Friday, Turkey’s head of communications Fahrettin Altun, said in a post on X that Instagram “is actively preventing people from posting messages of condolences” for Ismail Haniyeh, the Hamas leader who was killed earlier this week.

Meta hasn’t publicly commented on the block.

It’s not the first time Turkish authorities have blocked a major social media service. Twitter was briefly blocked in the country last year following a devastating earthquake that killed thousands of people. YouTube and Twitter were also blocked in 2014.

This article originally appeared on Engadget at https://www.engadget.com/turkey-has-blocked-instagram-amid-a-dispute-over-hamas-related-content-175934777.html?src=rss

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It’s Friday, which means it’s time for another roundup of good tech deals. Our latest edition is headed up by a few notable discounts from the PlayStation Store’s Summer Sale. Both the standard and digital versions of the PS5 are $50 off, for one — not a huge price drop, but still about as low as we usually see the consoles fall. The soon-to-be-improved PlayStation VR2 is down to $349, a $200 discount, while a number of our favorite PS5 games are also on sale. Beyond that, Apple’s entry-level AirPods are back down to a low of $70, several Amazon Echo devices are available for the prices we saw during Prime Day and Google’s Pixel 8a is at a new low ahead of the company’s big Pixel hardware event later this month. Here are the best tech deals from this week you can still buy today. 

Follow @EngadgetDeals on Twitter and subscribe to the Engadget Deals newsletter for the latest tech deals and buying advice. This article originally appeared on Engadget at https://www.engadget.com/the-playstation-5-is-50-off-plus-the-rest-of-the-weeks-best-tech-deals-170024467.html?src=rss

It’s Friday, which means it’s time for another roundup of good tech deals. Our latest edition is headed up by a few notable discounts from the PlayStation Store’s Summer Sale. Both the standard and digital versions of the PS5 are $50 off, for one — not a huge price drop, but still about as low as we usually see the consoles fall. The soon-to-be-improved PlayStation VR2 is down to $349, a $200 discount, while a number of our favorite PS5 games are also on sale. Beyond that, Apple’s entry-level AirPods are back down to a low of $70, several Amazon Echo devices are available for the prices we saw during Prime Day and Google’s Pixel 8a is at a new low ahead of the company’s big Pixel hardware event later this month. Here are the best tech deals from this week you can still buy today. 

Follow @EngadgetDeals on Twitter and subscribe to the Engadget Deals newsletter for the latest tech deals and buying advice.

This article originally appeared on Engadget at https://www.engadget.com/the-playstation-5-is-50-off-plus-the-rest-of-the-weeks-best-tech-deals-170024467.html?src=rss

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Tesla is facing yet more legal action over Autopilot after the parents of a motorcyclist who was killed in a crash involving a Model 3 sued the company. The plaintiffs, who also sued the driver of the Tesla, claimed that the car’s driver assistant tech and other safety measures are “defective and inadequate.”
The plaintiffs argued in the complaint, which was obtained by Reuters, that Autopilot sensors and cameras “should have identified the hazard posed by” the motorcycle. Autopilot was engaged when the Model 3 struck the back of Landon Embry’s motorcycle at 75-80 miles per hour in Utah in 2022. Embry died at the scene.
His parents also claim the Model 3 driver was tired and that “a reasonably prudent driver, or adequate auto braking system, would have, and could have slowed or stopped without colliding with the motorcycle.” Tesla does not have a public relations department that can be reached for comment.
This is the latest in a long line of legal and regulatory issues that Tesla has contended with over the Autopilot and Full Self-Driving features. Just this week, Washington state investigators determined that a Tesla Model S involved in a fatal crash with a motorcycle in April had Full Self-Driving engaged at the time.This article originally appeared on Engadget at https://www.engadget.com/tesla-sued-over-fatal-autopilot-crash-164723952.html?src=rss

Tesla is facing yet more legal action over Autopilot after the parents of a motorcyclist who was killed in a crash involving a Model 3 sued the company. The plaintiffs, who also sued the driver of the Tesla, claimed that the car’s driver assistant tech and other safety measures are “defective and inadequate.”

The plaintiffs argued in the complaint, which was obtained by Reuters, that Autopilot sensors and cameras “should have identified the hazard posed by” the motorcycle. Autopilot was engaged when the Model 3 struck the back of Landon Embry’s motorcycle at 75-80 miles per hour in Utah in 2022. Embry died at the scene.

His parents also claim the Model 3 driver was tired and that “a reasonably prudent driver, or adequate auto braking system, would have, and could have slowed or stopped without colliding with the motorcycle.” Tesla does not have a public relations department that can be reached for comment.

This is the latest in a long line of legal and regulatory issues that Tesla has contended with over the Autopilot and Full Self-Driving features. Just this week, Washington state investigators determined that a Tesla Model S involved in a fatal crash with a motorcycle in April had Full Self-Driving engaged at the time.

This article originally appeared on Engadget at https://www.engadget.com/tesla-sued-over-fatal-autopilot-crash-164723952.html?src=rss

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THQ Nordic is holding a livestream showcase event at 3PM ET and you can watch it live via the YouTube embed placed below. If YouTube isn’t your bag, the event will also stream on the company’s Twitch channel and its Steam page.
The company says the digital showcase will offer updates on a bunch of games, like Titan Quest II, Way of the Hunter, Disney Epic Mickey: Rebrushed and the upcoming remake of Gothic 1. The press release does suggest that there will be more games spotlighted during the event, but didn’t name names. It also says there will be “new announcements.”

There’s a car-shaped elephant in the room here. The press release advertising the event is titled “The day of (W)reckoning is at hand.” This is almost certainly a reference to the company’s long-gestating racing franchise Wreckfest. Are we getting a sequel or maybe a remake? Time will tell.
Not that much time though. The stream officially starts at 3PM ET, but there’s a pre-show at 2:45 ET hosted by HandyGames. This subsidiary of THQ Nordic is responsible for titles like Lock’s Quest and Townsmen – A Kingdom Rebuilt, among others.

One final thing. If you’re into puzzles or internet-based mysteries, THQ Nordic did drop a hint about something else that would be covered during the event. The Wheel of Fortune-esque teaser simply says “_ _ e E _ _ _ _ _ _ _ _ _ e _ _ _ _ _ _ _ _ _.” Make of that what you will.This article originally appeared on Engadget at https://www.engadget.com/watch-thq-nordics-digital-showcase-at-3pm-et-164018041.html?src=rss

THQ Nordic is holding a livestream showcase event at 3PM ET and you can watch it live via the YouTube embed placed below. If YouTube isn’t your bag, the event will also stream on the company’s Twitch channel and its Steam page.

The company says the digital showcase will offer updates on a bunch of games, like Titan Quest II, Way of the Hunter, Disney Epic Mickey: Rebrushed and the upcoming remake of Gothic 1. The press release does suggest that there will be more games spotlighted during the event, but didn’t name names. It also says there will be “new announcements.”

There’s a car-shaped elephant in the room here. The press release advertising the event is titled “The day of (W)reckoning is at hand.” This is almost certainly a reference to the company’s long-gestating racing franchise Wreckfest. Are we getting a sequel or maybe a remake? Time will tell.

Not that much time though. The stream officially starts at 3PM ET, but there’s a pre-show at 2:45 ET hosted by HandyGames. This subsidiary of THQ Nordic is responsible for titles like Lock’s Quest and Townsmen – A Kingdom Rebuilt, among others.

One final thing. If you’re into puzzles or internet-based mysteries, THQ Nordic did drop a hint about something else that would be covered during the event. The Wheel of Fortune-esque teaser simply says “_ _ e E _ _ _ _ _ _ _ _ _ e _ _ _ _ _ _ _ _ _.” Make of that what you will.

This article originally appeared on Engadget at https://www.engadget.com/watch-thq-nordics-digital-showcase-at-3pm-et-164018041.html?src=rss

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After a couple of months of beta testing on consoles to iron out some bugs, Valorant is now properly available on PlayStation 5 and Xbox Series X/S in some regions. You can dive into the free-to-play tactical shooter on the consoles if you’re in the US, Canada, Europe, Japan or Brazil. Riot plans to open up the game to console players in other regions down the line.
Riot says it optimized the gameplay for consoles, which included the addition of a new Focus shooting mode that’s a bit like hipfire, but with lower sensitivity for greater precision. There won’t be any support for crossplay between PC and consoles so as to maintain competitive integrity, but you will have access to all your purchased or earned cosmetics and there will be shared progression across all platforms. Riot also notes that there will be parity between all platforms in terms of balance changes and added agents, maps, premium content and other features.
“We believe there are millions of players that would love to play Valorant, but currently can’t, and we hope to change that with bringing Valorant to consoles,” Valorant production designer Arnar Gylfason said in a statement. “We aim to provide them the joy of the Valorant experience and all it entails: a core tactical shooter gameplay focused on mastery and player expression, a team-based competitive environment where match quality and fairness comes first, our amazing ecosystem with a unique style, high-quality cosmetics and a thriving community that values personal and competitive identity.”
This is a significant step for Riot as Valorant is its first live-service game on console — the likes of League of Legends and Teamfight Tactics remain PC-only. However, the publisher plans to bring its upcoming LoL-based fighting game 2XKO to PlayStation and Xbox as well.This article originally appeared on Engadget at https://www.engadget.com/valorant-is-now-out-of-beta-on-playstation-5-and-xbox-series-xs-160016521.html?src=rss

After a couple of months of beta testing on consoles to iron out some bugs, Valorant is now properly available on PlayStation 5 and Xbox Series X/S in some regions. You can dive into the free-to-play tactical shooter on the consoles if you’re in the US, Canada, Europe, Japan or Brazil. Riot plans to open up the game to console players in other regions down the line.

Riot says it optimized the gameplay for consoles, which included the addition of a new Focus shooting mode that’s a bit like hipfire, but with lower sensitivity for greater precision. There won’t be any support for crossplay between PC and consoles so as to maintain competitive integrity, but you will have access to all your purchased or earned cosmetics and there will be shared progression across all platforms. Riot also notes that there will be parity between all platforms in terms of balance changes and added agents, maps, premium content and other features.

“We believe there are millions of players that would love to play Valorant, but currently can’t, and we hope to change that with bringing Valorant to consoles,” Valorant production designer Arnar Gylfason said in a statement. “We aim to provide them the joy of the Valorant experience and all it entails: a core tactical shooter gameplay focused on mastery and player expression, a team-based competitive environment where match quality and fairness comes first, our amazing ecosystem with a unique style, high-quality cosmetics and a thriving community that values personal and competitive identity.”

This is a significant step for Riot as Valorant is its first live-service game on console — the likes of League of Legends and Teamfight Tactics remain PC-only. However, the publisher plans to bring its upcoming LoL-based fighting game 2XKO to PlayStation and Xbox as well.

This article originally appeared on Engadget at https://www.engadget.com/valorant-is-now-out-of-beta-on-playstation-5-and-xbox-series-xs-160016521.html?src=rss

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Apple has been pressuring ByteDance and Tencent to close loopholes in China that funnel customers to external payment systems for making in-app purchases, according to a report by Bloomberg. Anyone living in the West knows the drill here. Apple wants that 30 percent commission.
Reporting indicates this pressure campaign began in May. Apple allegedly warned Tencent that it would reject crucial WeChat updates if it didn’t eliminate the ability for users to make payments outside of Apple’s ecosystem. Tencent complied with the original request, issuing an update in July, but Apple went one step further.
WeChat is home to thousands of third-party mini-games and experiences. Apple asked Tencent to disable in-game chat between creators and players, as that’s another theoretical loophole that could funnel users to third-party payment systems. Tencent has yet to agree to this request.
Back in June, Apple reportedly did something similar with ByteDance. It threatened to withhold updates of Douyin, which is basically the Chinese version of TikTok, unless it plugged any gaps that steer users away from that much-coveted 30 percent commission. According to Bloomberg, ByteDance has yet to issue a formal response.
These are aggressive moves on the part of Apple. China is the world’s largest smartphone market, sure, but the iPhone isn’t the dominant brand throughout the country. As a matter of fact, the phone failed to crack the top five in sales last quarter and the company recently experienced a 6.5 percent decline in profits.
It’s also worth noting that both ByteDance and Tencent aren’t happy corporate warriors looking out for the little guy. These massive companies levy their own commissions on creators and likely didn’t want Apple cutting into their bottom lines.
An Apple spokesperson was unusually blunt in a statement to Bloomberg, simply saying that company guidelines dictate that the sale of all digital goods must go through its system and that the review team has the power to reject app submissions that violate that policy. Neither Tencent or ByteDance issued a comment to Bloomberg. 
China, like the rest of the world, has been cracking down on walled gardens like Apple’s App Store. Despite the country’s hesitance to continue allowing closed ecosystems controlled by a single entity, Apple CEO Tim Cook is bullish about its prospects in China. “We continue to be confident in the long-term opportunity in China,” he said during a recent earnings call. “I don’t know how every chapter of the book reads, but we’re very confident in the long term.”
Apple is facing numerous legal hurdles all over the world regarding its Hungry Hungry Hippos approach to gobbling up commission fees. The European Commission issued a ruling that dictates it must allow app developers to steer users to payment systems and offers outside of the App Store. The company also faces potential fines from the EU, to the tune of ten percent of global annual revenue. As for the US, Epic sued Apple over its developer transaction fee policy and many other companies have expressed their own concerns. It’s also worth nothing that Tencent owns a 40 percent stake in Epic Games. This article originally appeared on Engadget at https://www.engadget.com/apple-is-fighting-tencent-and-bytedance-over-in-app-payments-in-china-155949462.html?src=rss

Apple has been pressuring ByteDance and Tencent to close loopholes in China that funnel customers to external payment systems for making in-app purchases, according to a report by Bloomberg. Anyone living in the West knows the drill here. Apple wants that 30 percent commission.

Reporting indicates this pressure campaign began in May. Apple allegedly warned Tencent that it would reject crucial WeChat updates if it didn’t eliminate the ability for users to make payments outside of Apple’s ecosystem. Tencent complied with the original request, issuing an update in July, but Apple went one step further.

WeChat is home to thousands of third-party mini-games and experiences. Apple asked Tencent to disable in-game chat between creators and players, as that’s another theoretical loophole that could funnel users to third-party payment systems. Tencent has yet to agree to this request.

Back in June, Apple reportedly did something similar with ByteDance. It threatened to withhold updates of Douyin, which is basically the Chinese version of TikTok, unless it plugged any gaps that steer users away from that much-coveted 30 percent commission. According to Bloomberg, ByteDance has yet to issue a formal response.

These are aggressive moves on the part of Apple. China is the world’s largest smartphone market, sure, but the iPhone isn’t the dominant brand throughout the country. As a matter of fact, the phone failed to crack the top five in sales last quarter and the company recently experienced a 6.5 percent decline in profits.

It’s also worth noting that both ByteDance and Tencent aren’t happy corporate warriors looking out for the little guy. These massive companies levy their own commissions on creators and likely didn’t want Apple cutting into their bottom lines.

An Apple spokesperson was unusually blunt in a statement to Bloomberg, simply saying that company guidelines dictate that the sale of all digital goods must go through its system and that the review team has the power to reject app submissions that violate that policy. Neither Tencent or ByteDance issued a comment to Bloomberg. 

China, like the rest of the world, has been cracking down on walled gardens like Apple’s App Store. Despite the country’s hesitance to continue allowing closed ecosystems controlled by a single entity, Apple CEO Tim Cook is bullish about its prospects in China. “We continue to be confident in the long-term opportunity in China,” he said during a recent earnings call. “I don’t know how every chapter of the book reads, but we’re very confident in the long term.”

Apple is facing numerous legal hurdles all over the world regarding its Hungry Hungry Hippos approach to gobbling up commission fees. The European Commission issued a ruling that dictates it must allow app developers to steer users to payment systems and offers outside of the App Store. The company also faces potential fines from the EU, to the tune of ten percent of global annual revenue. As for the US, Epic sued Apple over its developer transaction fee policy and many other companies have expressed their own concerns. It’s also worth nothing that Tencent owns a 40 percent stake in Epic Games. 

This article originally appeared on Engadget at https://www.engadget.com/apple-is-fighting-tencent-and-bytedance-over-in-app-payments-in-china-155949462.html?src=rss

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People are so excited for the next-gen Switch, they’re likely holding off on buying Nintendo’s current consoles and games. At least that’s what the company’s latest earnings report seems to indicate. For the quarter ending on June 30, Nintendo posted a net profit of 80.9 billion Japanese Yen, which is higher than its forecast but over 50 percent lower than its net profit for the same period last fiscal year. In addition, the company said it only sold 2.1 million Switch consoles for the quarter. That means it experienced a 46.3 percent decline on unit sales year-on-year. Even its games didn’t sell well, seeing as Nintendo posted a software sales figure that’s 41.3 percent lower than last fiscal year’s at 30.64 million units sold. 
In its report, Nintendo admits that the low sales figures for games was caused by the lack of big releases, such as the previous year’s The Legend of Zelda: Tears of the Kingdom. The Super Mario Bros. Movie also helped “energize” its business back then. But since hardware sales for this quarter are similar to the previous one’s, Nintendo considers its Switch sales to be stable. 
Nintendo is expected to launch its “Switch 2” console soon. It was expected to come out sometime this year, but according to reports published in the previous months, it will be released in early 2025 instead. There’s still very little known about the upcoming console, but rumors say it will have backwards compatibility, as well as 4K capabilities. This article originally appeared on Engadget at https://www.engadget.com/nintendo-profits-fall-55-percent-as-people-save-their-cash-for-the-switch-2-140019403.html?src=rss

People are so excited for the next-gen Switch, they’re likely holding off on buying Nintendo’s current consoles and games. At least that’s what the company’s latest earnings report seems to indicate. For the quarter ending on June 30, Nintendo posted a net profit of 80.9 billion Japanese Yen, which is higher than its forecast but over 50 percent lower than its net profit for the same period last fiscal year. In addition, the company said it only sold 2.1 million Switch consoles for the quarter. That means it experienced a 46.3 percent decline on unit sales year-on-year. Even its games didn’t sell well, seeing as Nintendo posted a software sales figure that’s 41.3 percent lower than last fiscal year’s at 30.64 million units sold. 

In its report, Nintendo admits that the low sales figures for games was caused by the lack of big releases, such as the previous year’s The Legend of Zelda: Tears of the Kingdom. The Super Mario Bros. Movie also helped “energize” its business back then. But since hardware sales for this quarter are similar to the previous one’s, Nintendo considers its Switch sales to be stable. 

Nintendo is expected to launch its “Switch 2” console soon. It was expected to come out sometime this year, but according to reports published in the previous months, it will be released in early 2025 instead. There’s still very little known about the upcoming console, but rumors say it will have backwards compatibility, as well as 4K capabilities. 

This article originally appeared on Engadget at https://www.engadget.com/nintendo-profits-fall-55-percent-as-people-save-their-cash-for-the-switch-2-140019403.html?src=rss

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