March 2013

App Building, the Do-It-Yourself Way

Plenty of business owners and entrepreneurs are comfortable running a company in the fast-growing mobile-apps market, but lack the technical know-how to build mobile apps on their own.

Their options range from using online app-building tools, to taking crash courses in computer programming and coding languages, hiring a costly professional on contract, or recruiting a full-time developer. A host of online tools, such as Appsme, AppMakr or Flow.net, allow just about any user to build simple apps by adding text, images and other features into a ready-made template—though some are limited in scope or require manual coding for any extra features. Mobile-developer boot camps, which are popping up around the country, can fill in the knowledge gap with intensive do-it-yourself training. In a matter of weeks, programs like the Pragmatic Studio in Reston (VA), can help turn a novice into a proficient coder, for fees of about $2,695 for four days of training.

Time Warner Ends Talks With Meredith and Will Spin Off Time Inc. Into Separate Company

Time Warner will spin off its Time Inc. magazine unit into a separate, publicly traded company, a move that will allow the media conglomerate to focus entirely on its cable television and film businesses.

The announcement came hours after Time Warner and Meredith Corporation ended negotiations on a proposal that would have joined in a separate company many Time Inc. titles with magazines published by Meredith. Laura Lang, the chief executive of Time Inc. who started the job just over a year ago, said she would depart once the spinoff of the magazine division was complete. The deal with Meredith fell apart in part because of Time Warner’s concern over the fate of four of Time Inc.’s famous but struggling magazines — Time, Sports Illustrated, Fortune and Money, according to three people with knowledge of the negotiations who could not publicly discuss private conversations. At one point Meredith expressed some interest in the news and sports magazines, but Meredith decided not to pursue them because such a deal would have diluted its controlling family’s shares in the new company, another person with knowledge of the negotiations said. If Time Warner retained those four titles, the economics of a full spinoff proved more appealing, this person said.

Tracking Sensors Invade the Workplace

As Big Data becomes a fixture of office life, companies are turning to tracking devices to gather real-time information on how teams of employees work and interact.

Sensors, worn on lanyards or placed on office furniture, record how often staffers get up from their desks, consult other teams and hold meetings. Businesses say the data offer otherwise hard-to-glean insights about how workers do their jobs, and are using the information to make changes large and small, ranging from the timing of coffee breaks to how work groups are composed, to spur collaboration and productivity.

K St. ready for cybersecurity cash grab

Cybersecurity is fast becoming good business for K Street. The question of how the country should defend against online threats has received increased attention from Congress and from President Obama, who took executive action last month to try and prevent attacks on the country’s networks. The cybersecurity push has drummed up work for influence shops downtown. There have been more than a dozen lobbying registrations for clients that mention “cybersecurity” since Election Day, according to lobbying disclosure records.

Samsung’s Patent Spat With Apple Spurs US Lobbying Push

Samsung has doubled mobile-phone sales in the U.S. since 2008. As the company faces anti-dumping measures and a protracted court battle with Apple, its U.S. lobbying bill is growing even faster.

Samsung boosted spending on lobbyists to $900,000 last year from $150,000 in 2011 as it tries to influence the federal government on issues ranging from intellectual-property infringement to telecommunications infrastructure, regulatory filings show. The company also hired Sony veteran Joel Wiginton to run a new government-relations office in Washington. Last year’s lobbying expenditure was the biggest for Samsung in a single year, according to a U.S. government database of lobbying disclosure filings dating to 1999. The previous high was $370,000 in 2008. In a statement, Samsung said the expanded effort is “a prudent step as part of day-to-day business operations, our growing presence outside of our headquarters country, and our commitment to transparency.” The company declined to comment further on its lobbying expenditures.

Brussels ends probe into telecoms groups

The five largest European telecoms groups have been cleared of antitrust practices by Europe’s competition regulator following the end of a long-running Brussels probe. The European Commission said that it had closed a preliminary investigation into the extent of group discussions between Deutsche Telekom, Telefónica, Vodafone, France Telecom and Telecom Italia. The chief executives of the four former state-backed incumbents and Vodafone had met to discuss the development of new technology standards for mobile services, which caused concern among the Brussels competition watchdog.

However, the companies had agreed to transfer responsibility for such technical standard setting to trade groups such as the GSMA even before the start of the investigation. The commission said that this was “a positive step that reduces the risk of standard setting work affecting competition negatively”. The group was nicknamed within the industry as the “E5”, which met occasionally although always with the presence of a lawyer taking notes of the discussions. Company executives have acknowledged in the past that the five telecoms groups risked competition complaints given the extent of their business across many of the EU’s 27 member states, with about four-fifths of EU mobile customers buying their mobile subscriptions from one of the four incumbent operators.

Brussels to soften data protection rules

Brussels will be forced to water down tough data protection rules in a move that will come as a relief to tech groups after many of the EU’s member states called for a softer approach to the privacy push. The climbdown will be welcomed by companies that collect large amounts of personal data, such as Google and Facebook, which have lobbied furiously against the proposed regulation, as well as the US government.

Washington has repeatedly voiced its concern that the rules, which include the power to fine companies up to 2 per cent of global turnover for breaching onerous data protection standards, were targeted specifically at US technology groups. Resolving the transatlantic dispute over data protection rules could ease the way towards a new EU-US trade agreement over the next two years, which boasts huge commercial potential but is also rife with complications. The plan will be softened after at least nine countries – including the UK, Germany, Sweden and Belgium – said they were opposed to several proposed measures that could add heavy burdens on businesses at a time when EU countries are hoping that data-related companies will help boost economic growth.

For App Makers, China Is Untapped and Untamed

China is emerging as the next battleground for global app makers—but cracking the world's largest smartphone market is proving to be vexing. App makers must navigate dozens of app stores with looser rules than in the U.S., fend off a proliferation of cloned apps, and steer around a thicket of regulations and intense competition from local developers. What's more, companies that charge for their apps are finding they need to get more creative about business models in China since users there are accustomed to getting most digital content free.

EU’s Message: Anybody Else Feel Lucky?

The European Commission’s announcement of $732 million in sanctions against Microsoft is an inevitable and expected comeuppance for the software giant’s failure to comply with the terms of an antitrust settlement requiring it to offer consumers a choice of Web browsers. But it’s also a warning to other companies with which the agency has regulatory issues — one in particular. Google.

As EU competition commissioner Joaquín Almunia said today, “Legally binding commitments reached in antitrust decisions play a very important role in our enforcement policy because they allow for rapid solutions to competition problems. Such decisions require strict compliance. A failure to comply is a very serious infringement that must be sanctioned accordingly.” A pat explanation for the EC’s sanctions against Microsoft, but also a clear “feeling lucky, punk?” warning to Google: Don’t make empty promises. Because the financial implications can be staggering: Fines of up to 10 percent of the company’s annual global sales. In Google’s case that’s potentially billions of dollars.

Dear Brussels, You Are Fighting Last Century’s Battles

While everyone else has turned their attention to mobile, European regulators have remained doggedly focused on making sure consumers have plenty of choice of browsers when they bother to boot up their desktop. The issue seemed passe when the EU revisited it back in 2009 and seems all the more so four years later.

Windows and Internet Explorer have continued to lose share over those four years on the desktop itself, and the real growth in the Internet is from billions of mobile devices. To be fair, Microsoft did agree to offer European consumers the option of a ballot to choose which browser they wanted. Even Redmond admits it made a mistake. “We take full responsibility for the technical error that caused this problem and have apologized for it,” Microsoft said in a statement. “We provided the (European) Commission with a complete and candid assessment of the situation, and we have taken steps to strengthen our software development and other processes to help avoid this mistake — or anything similar — in the future.” But, at this point, might regulators want to turn their attention elsewhere?
Consumers certainly have.