May 2012

Google gets China OK to buy Motorola

Authorities in China have approved Google's bid to buy phone maker Motorola Mobility, clearing the way for the $12.5 billion deal to close soon. But Chinese regulators attached a big condition: That Google's Android operating system for mobile devices remain available to all at no cost for the next five years. The approval brings the Internet search giant closer to sealing its biggest acquisition ever. Buying Motorola allows Google to expand into manufacturing phones, tablet computers and other consumer devices for the first time. The deal also gives Google access to more than 17,000 Motorola patents.

Google Given A ‘Matter Of Weeks’ To Submit Remedies In EU Probe (updated)

Google must submit remedies within weeks to assuage European Union regulators’ antitrust concerns to avoid a formal complaint and possible fines, EU Competition Commissioner Joaquin Almunia said. Almunia asked the company to send him proposals within “a matter of weeks” to eliminate concerns that Google promotes its own specialist “vertical” search services, that it copies rival content including travel and restaurant reviews and that its contracts with software developers prevent ads from being moved to different services. “I am today giving Google an opportunity to offer remedies to address concerns we have already identified,” Almunia told reporters today in Brussels. “Any final proposal by Google will be market tested before it’s made legally binding by the commission.”

See new link below to release from Joaquín Almunia Vice President of the European Commission responsible for Competition Policy.

Alibaba Buys Back 20% Stake From Yahoo For $7.1 Billion

Alibaba Group Holding, China’s largest e-commerce provider, agreed to repurchase about a 20 percent stake in itself from Yahoo! for about $7.1 billion ahead of a potential initial public offering. Yahoo will receive at least $6.3 billion in cash and as much as $800 million in newly issued Alibaba preferred stock. At the time of an IPO, Alibaba will be required to either buy back a quarter of Yahoo’s current stake or let Yahoo sell the shares. The deal values Alibaba at about $35 billion.

Facebook doesn’t just want world domination: it needs it

In many ways Facebook is a very American success: forged at Harvard, warmed up in the crucible of Silicon Valley, and now reaching boiling point by becoming one of the nation’s most valuable companies. But it’s also a very international business, too, with 900 million users spread all around the world. The company has made no secret of its ambition to make sure every person on the planet is connected to its service. What might seem like hubris, however, is actually necessity: with Wall Street now breathing down its neck, overseas growth is important — investors want to see that however big it has become, Facebook still has headroom left. So how will it manage?

Hachette is offering new e-books to some libraries

Hachette, which has not made new e-books available to libraries since 2010, is reconsidering the idea. In a pilot program starting this spring, the publisher is working with two e-book distributors to bring a “selection of HBG’s recent bestselling e-books to 7 million library patrons.”

Hachette would not confirm which distributors or libraries it is working with — whether it is partnering with leading digital distributor OverDrive and/or with an OverDrive competitor like 3M Cloud Library or Baker & Taylor’s Axis 360. “These pilot programs will help us learn more about library patrons’ interests, usage, and expectations,” Hachette said. “This information will help HBG devise the best strategy to reach the widest audience of e-book readers in libraries. We’ll have more to say once we have looked at the data from the pilots.”

A code of conduct for apps

As smartphone-crazed consumers fiddle with Angry Birds and challenge each other on Words With Friends, policymakers are playing a different game: bringing order to mobile apps.

To Washington, the daily deals tools, social networks and other programs that consumers download onto their smartphones present new challenges to consumer privacy and security. Lawmakers are keenly aware of the horror stories of apps surreptitiously accessing user address books or broadcasting location data sans permission. “There is an expectation of privacy when you use a mobile device, particularly when using an application that can collect and transmit personal information such as geolocation,” said Sen. Jay Rockefeller (D-W.Va.), chairman of the Senate Commerce Committee. There’s a “lot of work to do to make sure that consumers have control over what personal information is being collected about them and that companies respect consumer privacy.” The result has been a classic Beltway power struggle: A cutting-edge-yet-still-neophyte industry boasting millions of dollars in revenue is looking to stave off regulation from the wary sheriffs on Capitol Hill and at regulatory agencies.

Here are the three key areas Washington is watching: 1) Protecting privacy, 2) Location tracking, and 3) Mobile wallet safety.

'The Golden Age of Silicon Valley Is Over, and We're Dancing on its Grave'

A Q&A with Steve Blank, a professor at Berkeley and Stanford and serial entrepreneur from Silicon Valley.

On Facebook’s IPO he says: “I think it's the beginning of the end of the valley as we know it. Silicon Valley historically would invest in science, and technology, and, you know, actual silicon. If you were a good VC you could make $100 million. Now there's a new pattern created by two big ideas. First, for the first time ever, you have computer devices, mobile and tablet especially, in the hands of billions of people. Second is that we are moving all the social needs that we used to do face-to-face, and we're doing them on a computer. And this trend has just begun. If you think Facebook is the end, ask MySpace. Art, entertainment, everything you can imagine in life is moving to computers. Companies like Facebook for the first time can get total markets approaching the entire population.”

Pakistan Blocks Access to Twitter Over Cartoon Contest

The Pakistani government blocked access to the social networking service Twitter after publicly holding Twitter responsible for promoting what it described as a blasphemous cartoon contest taking place on Facebook, officials said.

The restoration of Twitter service was as sudden as its suspension. No official statement or explanation was given for an act that some rights campaigners saw as much as a warning shot at the media and public expression as a reaction to controversial content. A government spokesman was quoted by local news media as saying that the government had been in talks with Twitter to remove “objectionable” material, but that there had been no results. “The material was promoting a competition on Facebook to post images of Islam’s Prophet Muhammad,” Mohammad Yaseen, chairman of the Pakistan Telecommunication Authority, told Pakistani news organizations. He was also quoted as saying that Facebook had agreed to allay the concerns of the Pakistani government. It remained unclear — and unlikely — that Twitter had agreed to the demands of the Pakistani government before access was restored.

China’s Wanda to buy AMC for $2.6 billion

Dalian Wanda, a Chinese real estate conglomerate, has agreed to buy AMC Entertainment Holdings, the US cinema chain, for $2.6 billion in a deal that underscores China’s dealmaking firepower amid a flagging US economic recovery.

The deal, which is Wanda’s first in the US market, will create the world’s largest cinema operator and take the Chinese group into the heart of the US entertainment industry. Under the agreement, AMC, which has more than 5,000 movie screens in the US and Canada, will become a wholly owned subsidiary of Beijing-headquartered Wanda, a privately held group whose $35bn in assets spans shopping malls and theme parks to art collections. In addition to the $2.6bn purchase price, Wanda will invest $500 million in the struggling cinema company to help strengthen AMC’s balance sheet, retire debt, and fund strategic initiatives.

Consumer Advisory Committee

Federal Communications Commission
Friday, June 15, 2012
8:30 A.M. to 4:00 P.M.
http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0517/DA-1...

At its June 15, 2012 meeting, it is expected that the CAC will consider a recommendation from its Broadband Working Group regarding the Global Public Inclusive Infrastructure Initiative. The Committee will also consider two recommendations from the Committee’s Consumer Empowerment Group regarding text spamming and third party wireless shutdowns. In addition, four recommendations from the Media Working Group regarding political advertising, spectrum, the Emergency Alert System, and privacy will be considered. The Committee may also consider other recommendations from its working groups, and may also receive briefings from FCC staff and outside speakers on matters of interest to the Committee. A limited amount of time will be available on the agenda for questions and comments from the public.