SUNDAY, JULY 20, 2014 technology

Smartphone suit against plays into rivals’ hands

SAN FRANCISCO: A US consumer lawsuit accusing lic,” he said. represented one of Google’s main rivals. Berman tracts between Google and Android manufacturers Google of monopolizing prime real estate on Google declined to comment. A hearing on defended when it faced its own antitrust and HTC that became public during Android will help mobile rivals like Google’s bid to dismiss the case is scheduled for investigations over Windows. Berman said he has Oracle’s separate 2012 trial against Google. Microsoft make their antitrust case with European October. Any damaging evidence from the class had “conversations with Microsoft over the years If Samsung or HTC wishes to use Google apps on regulators should damaging secrets emerge in action would play into the hands of Google’s rivals. about Google’s conduct,” but not about this lawsuit. its phones, the consumer lawsuit said, they must court. Microsoft spokesman Jack Evans said the company No stranger to antitrust inquiries, Google was preload a suite of services - including YouTube and The suit, filed in California federal court in May “is not a party” to the consumer lawsuit, but last scrutinized by U.S. and European regulators over Maps - on “prime screen real estate” on the phones, by two consumers, said Google year a group of companies - including Microsoft, allegations that it improperly manipulated search and set Google search as the default. requires handset manufacturers such as Samsung Oracle, , Expedia and TripAdvisor - filed a results to rank its own services higher than competi- It also argues that Google’s deal with Apple to be Electronics Co Ltd to restrict competing apps like complaint with European antitrust regulators over tors. US authorities ultimately closed their investiga- the default search on iPhones and iPads locks out Microsoft’s Bing search on Android phones, partly some of the same issues in the U.S. lawsuit. tion without filing a lawsuit, and Europe’s competi- competitors across the mobile universe. Apple does by making Google’s own apps the default. Google apps “are widely used on Android by tion commissioner negotiated a settlement earlier not have its own search engine, has lower market Google argued last week the proposed class requiring default placement and other mechanisms this year which is awaiting approval by the broader share worldwide than Android and is not a defen- action should be dismissed because consumers for disadvantaging competing apps,” the compa- European Commission. dant in the case. still are free to use the other apps. The plaintiffs nies said in a summary of their complaint. Google’s deals with handset makers do not pre- counter that most consumers either don’t know Google last year said it was working coopera- PRIME REAL ESTATE vent rival search engines “from reaching consumers how to switch default settings, or will not go to tively with European regulators, who have yet to The main issue for US courts will be whether through the various distribution channels available the trouble. decide whether to formally investigate. Android and mobile services like search are “techni- to them,” Google wrote in its motion to dismiss the If a judge lets the lawsuit proceed, plaintiffs’ cally separate, or tied in ways that impedes compe- US lawsuit. attorneys would be allowed to delve into internal MICROSOFT TIES tition for consumers,” said Michael Cusumano, a pro- Cusumano said the US class action could hurt Google emails and contracts with smartphone Berman has a long history of taking on large US fessor at the MIT Sloan School of Management. Google if a judge finds that it improperly pushes its companies, and could interview Google executives companies. He reached a settlement for consumers Cusumano has extensively researched Microsoft, mapping and location services, which is embedded under oath, said Steve Berman, who represents the suing Apple over its e-book sales practices that which unsuccessfully sued the professor in the across the Android system. consumers. could reach $450 million, and settled for $1.6 billion 1990s for access to his notes. This year Microsoft has It’s “kind of a Pandora’s Box to look inside what “I’m confident we will get into juicy stuff, and I a lawsuit on behalf of Toyota car owners with unin- sought to hire him to write an expert opinion in an Google does, and the relationship it has with all think that will up the pressure on Google as tended acceleration claims. unrelated proceeding. these smartphone and handset manufacturers,” he some of the material we discover becomes pub- But the Seattle-based plaintiffs’ lawyer also has The US consumer lawsuit is based largely on con- said. — Reuters

IRS says hard drive that lost emails destroyed WASHINGTON: The IRS said Friday that drive. Lois Lerner’s computer hard drive was Walton also wanted information about destroyed three years ago, ending any an inspector general’s investigation into chance of retrieving her lost emails. the lost emails. Walton wanted to know the In court papers, the IRS said the hard qualifications of computer experts con- drive was destroyed after two sets of ducting the investigation, and he wanted a trained technicians tried to retrieve the projection on when the investigation will data. The tax agency said it was standard be complete. procedure to destroy old data storage Timothy Camus, a deputy inspector equipment that may have contained confi- general for investigations, said in court dential taxpayer information. papers that 11 special agents are on the The IRS says Lerner’s computer crashed case. However, he added, “It is not possible in 2011, destroying an untold number of to give an estimated date of completion.” A emails. At the time, Lerner headed the divi- Justice Department lawyer told Walton last sion that handles applications for tax- week that there was no evidence Lerner exempt status. intentionally destroyed her hard drive. Lerner is a central figure in congression- On Thursday, Deputy Attorney General al investigations into the handling of appli- James Cole told Congress that the Justice cations by tea party and other conservative Department is investigating the lost emails groups. as part of a larger probe into the way IRS Commissioner John Koskinen had agents handled applications for tax- told Congress that Lerner’s hard drive was exempt status. Walton’s order came in a recycled and presumably destroyed. lawsuit filed by a group called True the Friday’s court filings confirmed it. Vote, which says it advocates for the As part of a lawsuit, US District Judge integrity of elections. The group sued the Reggie B. Walton ordered the IRS last week IRS over delays in its application for tax- to explain what happened to the hard exempt status. — AP

NEW YORK: In this July 11, 2013 file photo, then Nokia CEO desicribes the company’s , in New York.On Thursday, July 17, 2014, as part of an announcement to cut up to 18,000 jobs over the next year, Microsoft said it would discontinue its phones and shift future product designs to its Lumia line of Windows phones. — AP Discarded Nokia X phones suffered from lack of identity

NEW YORK: The Nokia X phones that Microsoft Microsoft by replacing many of the Google serv- four models range from $120 to $150. By con- discontinued this week blend two rival operating ices on Android with Microsoft’s services. trast, Nokia’s Lumia Icon costs $550 without sub- systems, but leave out the best of each. Android staples such as Gmail, Google Maps and sidies that come with two-year service contracts. As a result, the devices didn’t become a run- Google’s app store are nowhere to be found. Apple’s iPhone 5s and Samsung’s Galaxy S5 cost away hit as Nokia’s low-cost answer to serving Instead, Nokia X phones have Here Maps from even more. emerging markets. Nokia X phones were devised Nokia and and OneDrive from Microsoft. In killing Nokia X, Microsoft isn’t changing to be a gateway to the company’s pricier Lumia The Nokia X home screen looks nothing like Nokia’s commitment to serving emerging mar- phones. The that runs the Android, but resembles Windows. kets. Microsoft knows those regions are high- WASHINGTON: This March 5, 2014 file photo shows former Internal Revenue Service phones was to blend the core technology found The thinking was that once Nokia X users growth areas, as many people in the United (IRS) official Lois Lerner speaks on Capitol Hill in Washington. — AP in Google’s Android system with services and were ready for higher-end phones, Lumia would States and other industrialized markets already designs found in Microsoft’s own Windows be their choice because they are already accus- have smartphones. Microsoft is also aware that Phone system. Nokia looked to Android as a way tomed to Microsoft services and designs. But those devices need to be affordable. to sell phones with locally tailored apps unavail- Nokia adapted Android so much that it affected The day before Nokia announced its Android Samsung handset division able on Windows. functionality. developers had to tweak phones at a February wireless show in Barcelona, But Microsoft completed its deal to buy some of their apps because Nokia X lacks key Spain, Microsoft unveiled plans to update its managers return part Nokia’s phone business in April, and Nokia X is Google services. For instance, location services system. Among other things, gone less than three months later. “Nokia tried to have to use Nokia’s Here rather than Google the software runs more efficiently, so it doesn’t of bonuses — source bring the best of both worlds on this device, but Maps. In-app payments also had to be tweaked require as much processing power. That update, once you play around with it, this phone kind of to allow billing through mobile carriers, some- .1, came out in May. Microsoft SEOUL: Nearly 200 managers at Samsung ance dips. The source did not give further falls short of how fantastic it could be,” said thing Nokia X enabled because many people in also began giving the Windows software to Electronics Co Ltd’s mobile division have vol- details, though local media reports estimat- Ramon Llamas, an IDC analyst who follows emerging markets lack credit cards. phone makers for free, the way Google has with untarily returned a quarter of their first-half ed that the value of the returned bonuses phones. Meanwhile, even as Nokia adopted the look of Android. And it relaxed requirements for physical bonuses, a source with direct knowledge of would likely exceed 3 billion won ($2.92 mil- Although sales figures aren’t available, Llamas Windows, it didn’t adopt its ease of use. It was buttons. All that has made Windows phones the matter said, with the firm poised to post lion). said his research showed Nokia X was “not the more like a knockoff version of Windows. cheaper to make. its worst quarterly profit in two years. A spokeswoman one that everybody seems to be flocking to.” Windows devices set themselves apart by The Nokia X phones do have some good Samsung Electronics earlier this month declined to comment. Samsung’s cash-cow The Nokia X project is an example of clashing offering colorful home-screen tiles stuffed with touches, including slots for two SIM cards - some- announced operating profit guidance for smartphone business has been losing mar- priorities that Microsoft CEO Satya Nadella is try- content. Instead of just a logo of Facebook, for thing important for emerging markets, where April-June that was far below most analysts’ ket share as Chinese rivals such as ing to curb with a refocusing effort that includes instance, you get the first several words of notifi- phone rates vary so much that people often forecasts. The world’s biggest smartphone and Group Ltd offer increasingly fea- 18,000 job eliminations over the next year. In cations. For email, you get the email’s sender and switch services depending on whom they are maker is facing slowing market growth and ture-rich phones at lower prices. Thursday’s announcement of the cuts, Microsoft the start of the subject line, so users know calling or texting. Windows didn’t allow that until intensifying competition. Meanwhile, a survey of 35 major global said it will shift future Nokia X product designs to whether there’s anything worth opening the app the May update. The decision to return some of the bonus markets by researcher Counterpoint showed its Lumia line of Windows devices. for. Windows also lets you create tiles to serve as The improvements made to Windows ulti- was partly a gesture to demonstrate that the flagship Galaxy S5 smartphone was out- Although Microsoft Devices chief and former shortcuts to specific tasks within apps - such as mately reduced the need for Nokia X. But even if managers are taking responsibility for the sold by Apple Inc’s iPhone 5S in the month Nokia CEO Stephen Elop pinned the move on a places you go often using the mapping app. that hadn’t happened, it was doubtful Nokia X earnings decline, and partly a way to show of May, suggesting that the device was not need to align Nokia’s strategy with Microsoft’s, Nokia X has none of that. Its home-screen tiles would have survived under new owners. that management will work harder, the selling as well as hoped. two other factors contributed to the downfall: are static, like overblown versions of Android In his memo, Elop pointed out that “the role of source told Reuters on Friday, declining to Samsung pointed to inventory buildup Nokia X lacked an identity, while Windows got icons. Now, Llamas said, Microsoft is under even phones within Microsoft is different than it was be identified due to the sensitivity of the for its mid-to-low tier products as well as the better. Now, Microsoft is left to target emerging more pressure to succeed with Windows in within Nokia.” Nokia’s business had been to make matter. Such gestures are not uncommon in strength of the South Korean won in its markets with Windows alone. Nokia and emerging markets. Although recent improve- phones. With Microsoft, the phones are a way to South Korea’s corporate world, where senior earnings guidance last week. Samsung will Microsoft had been partners long before ments help, he said, many phone makers by now showcase the company’s other offerings in serv- employees of listed companies have been disclose its full earnings for April-June on Microsoft bought the phone business. To main- have settled on Android for cheaper devices. ices and software, including the Windows Phone known to take similar steps when perform- July 31. — Reuters tain the relationship, Nokia sought to appease Nokia X did succeed at keeping prices low. Its system. And Nokia X had no role in that. — AP starts Netflix-style book service NEW YORK: Amazon.com Inc launched a $9.99- evision shows and for music. 2007, has branched out into other forms of digital per-month subscription service on Friday that lets The new Amazon service will compete with content in recent years. It offers streaming video customers read as much as they choose from its others in the market, including Oyster, which and music for members of its Prime program and is library of more than 600,000 digital books. charges $9.95 per month for unlimited access to developing original content. Subscribers to the Kindle Unlimited service can more than 500,000 titles. Unlike its other streaming services, Amazon read e-books, including “The Hunger Games” and In an interview, Oyster’s co-founder Eric does not require Kindle Unlimited users to be “Life of Pi,” on Amazon’s Kindle e-reader or any Stromberg said he was not surprised by Amazon’s Prime members, who pay $99 a year for free two- device with a Kindle app. Subscribers also have move but that his company’s partnership with day shipping in addition to content. access to thousands of audio books. major publishers gave Oyster a higher-quality cata- The combative negotiations between Amazon The launch of Kindle Unlimited comes as log. and Hachette have set the publishing world on Amazon remains mired in a months-long contract “They’ve tried to pivot from transaction to sub- edge. Earlier this year, Amazon delayed delivery of dispute with the No. 4 U.S. publisher Hachette scription-based in other forms of media - music, some Hachette titles, including sought-after print Book Group, owned by France’s Lagardere, over movies, kids’ books - and had limited success,” versions and, at one point, it removed a pre-order how to price e-books. Amazon is also in talks about Stromberg said of Amazon. option for “The Silkworm,” by Harry Potter author digital book pricing with Simon & Schuster, owned “Through our partnerships with Harper Collins J.K. Rowling writing as Robert Galbraith. by CBS Corp. and Simon & Schuster, two of the largest publish- Hachette authors James Patterson, Malcolm Amazon’s move to offer the Kindle Unlimited ers in the world, we’re able to deliver to our audi- Gladwell and Stephen Colbert have openly criti- This screen shot taken from an Kindle Fire HDX shows ‘The Hobbit’ by JRR Tolkien, an service reflects consumers’ growing preference ence a vast and deep catalog of the best books in cized Amazon for its tactics. Amazon responded audio book available through Amazon’s Kindle Unlimited subscription service. The toward subscription-based models for consuming the world,” he said. Amazon, which drove the by saying its goal was to maintain low prices and a service will allow unlimited access to thousands of electronic books and audio books digital media, such as Netflix Inc for movies and tel- growth of e-books after launching the Kindle in high level of service for its customers. — Reuters for $9.99 a month in the online giant’s latest effort to attract more users. — AP