Tesco is suing Broadcom and reseller Computacenter for at least $134 million, claiming that VMware's perpetual license support agreements were breached after Broadcom's acquisition. The supermarket giant warned it "may not be able to put food on the shelves if the situation goes pear-shaped," writes The Register's Simon Sharwood. From the report: Court documents seen by The Register assert that in January 2021 Tesco acquired perpetual licenses for VMware's vSphere Foundation and Cloud Foundation products, plus subscriptions to Virtzilla's Tanzu products, and agreed a contract for support services and software upgrades that run until 2026. Tesco claims VMware also agreed to give it an option to extend support services for an additional four years. All of this happened before Broadcom acquired VMware and stopped selling support services for software sold under perpetual licenses. Broadcom does sell support to those who sign for its new software subscriptions.

The supermarket giant says Broadcom's subscriptions mean it must pay "excessive and inflated prices for virtualization software for which Tesco has already paid," and "is unable any longer to purchase stand-alone Virtualization Support Services for its Perpetually Licensed Software without also having to purchase duplicative subscription-based licenses for those same Software products which it already owns." The complaint also alleges that Tesco's contracts with VMware include eligibility for software upgrades, but that Broadcom won't let the retailer update its perpetual licenses to cover the new Cloud Foundation 9.

The filing names Computacenter as a co-defendant as it was the reseller that Tesco relied on for software licenses, and the retailer feels it's breached contracts to supply software at a fixed price. Tesco's filing also mentions Broadcom's patch publication policy, which means users who don't acquire subscriptions can't receive all security updates and don't receive other fixes. The retailer thinks its contracts mean it is entitled to those updates. The filing suggests that lack of support is not just a legal matter, but may have wider implications because VMware software, and support for it "are essential for the operations and resilience of Tesco's business and its ability to supply groceries to consumers across the UK and Republic of Ireland."

"VMware Virtualization Software underpins the servers and data systems that enable Tesco's stores and operations to function, hosting approximately 40,000 server workloads and connecting to, by way of illustration, tills in Tesco stores," the filing states. Tesco's filing warns that Broadcom, VMware, and Computacenter are each liable for at least $134 million damages, plus interest, and that the longer the dispute persists the higher damages will climb.

Critics are denouncing Tuesday's antitrust remedies ruling against Google, calling them inadequate to restore search market competition. DuckDuckGo said the court's decision allows Google to continue using its monopoly to hold back competitors in AI search.

The Open Markets Institute called it "pure judicial cowardice" that leaves Google's power "almost fully intact." Senator Amy Klobuchar said the limited remedies demonstrate why Congress needs to pass legislation stopping dominant platforms from preferencing their own products. The News/Media Alliance criticized Judge Amit Mehta for failing to address Google forcing publishers to provide content for AI offerings to remain in search results.

An anonymous reader quotes a report from Reuters: Amazon.com must face a class action on behalf of hundreds of millions of U.S. consumers over claims that the online retail giant overcharged for products sold by third-party sellers, a federal judge in Seattle has ruled. U.S. District Judge John Chun in an order (PDF) unsealed on Friday certified a nationwide class involving 288 million customers and billions of transactions, marking one of the largest-ever in the United States.

The class includes buyers in the United States who purchased five or more new goods from third-party sellers on Amazon since May 26, 2017. The consumers' 2021 lawsuit said Amazon violated antitrust law by restricting third-party sellers from offering their products for lower prices elsewhere on rival platforms while they are also for sale on Amazon. Amazon's policies have allowed the company to impose inflated fees on sellers, causing shoppers to pay higher prices for purchases, the lawsuit said. Amazon has denied any wrongdoing. It has already appealed Chun's class certification order, which was first issued under seal on Aug. 6.

Amazon argued that the class was too large to be manageable and that the plaintiffs failed to show its alleged conduct had a widespread effect. Amazon also said that since 2019 it has not used a pricing program that the plaintiffs challenged. Chun found there was no evidence at this stage that the size of the class was overbroad. Other federal courts had certified class actions with millions or hundreds of millions of class members, the judge said.

A federal judge spared Google from the harshest penalties in its antitrust case. The search giant can keep Chrome and avoid breaking up Android, but it has been barred from exclusive contracts and ordered to limit data sharing with rivals. CNBC reports: U.S. District Judge Amit Mehta ruled against the most severe consequences that were proposed by the U.S. Department of Justice, including selling off its Chrome browser, which provides data that helps its advertising business deliver targeted ads. "Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment," the decision stated. "Plaintiffs overreached in seeking forced divesture of these key assets, which Google did not use to effect any illegal restraints."

The company can make payments to preload products, but it cannot have exclusive contracts, the decision stated. The DOJ asked Google to stop the practice of "compelled syndication," which refers to the practice of making certain deals with companies to ensure its search engine remains the default choice in browsers and smartphones. [...] The judge ordered the parties to meet by September 10th for the final judgement.

"Google will not be barred from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products. Cutting off payments from Google almost certainly will impose substantial -- in some cases, crippling -- downstream harms to distribution partners, related markets, and consumers, which counsels against a broad payment ban." [...] Google said it will appeal the ruling, which would delay any potential penalties. Mehta ruled Tuesday that Google will have to make available certain search index data and user interaction data though "not ads data." The court narrowed the datasets Google will be required to share and said they must occur on "ordinary commercial terms that are consistent with Google's current syndication services."

"Typically when something is available to "buy," ownership of that good or access to that service is offered in exchange for money," writes Ars Technica.

"That's not really the case, though, when it comes to digital content." Often, streaming services like Amazon Prime Video offer customers the options to "rent" digital content for a few days or to "buy" it. Some might think that picking "buy" means that they can view the content indefinitely. But these purchases are really just long-term licenses to watch the content for as long as the streaming service has the right to distribute it — which could be for years, months, or days after the transaction. A lawsuit recently filed against Prime Video challenges this practice and accuses the streaming service of misleading customers by labeling long-term rentals as purchases. The conclusion of the case could have implications for how streaming services frame digital content...

[The plaintiff's] complaint stands a better chance due to a California law that took effect in January banning the selling of a "digital good to a purchaser with the terms 'buy,' 'purchase,' or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good, or alongside an option for a time-limited rental." There are some instances where the law allows digital content providers to use words like "buy." One example is if, at the time of transaction, the seller receives acknowledgement from the customer that the customer is receiving a license to access the digital content; that they received a complete list of the license's conditions; and that they know that access to the digital content may be "unilaterally revoked...."

The case is likely to hinge on whether or not fine print and lengthy terms of use are appropriate and sufficient communication. [The plaintiff]'s complaint acknowledges that Prime Video shows relevant fine print below its "buy" buttons but says that the notice is "far below the 'buy movie' button, buried at the very bottom" of the page and is not visible until "the very last stage of the transaction," after a user has already clicked "buy."
Amazon is sure to argue that "If plaintiff didn't want to read her contract, including the small print, that's on her," says consumer attorney Danny Karon. But he tells Ars Technica "I like plaintiff's chances. A normal consumer, after whom the California statute at issue is fashioned, would consider 'buy' or 'purchase' to involve a permanent transaction, not a mere rental... If the facts are as plaintiff alleges, Amazon's behavior would likely constitute a breach of contract or statutory fraud."

A newly published Investigatory Powers Tribunal filing indicates the UK government's Technical Capability Notice to Apple went beyond the company's Advanced Data Protection encryption to include standard iCloud services used by millions [non-paywalled source]. The document states the UK Home Office order "is not limited to" ADP data and applies "globally in respect of the relevant data categories of all iCloud users."

The filing emerged days after Trump administration officials claimed the UK had agreed to drop efforts targeting American citizens' data. Apple launched its legal challenge in March after receiving the TCN, which the company cannot discuss publicly under the Investigatory Powers Act. The tribunal scheduled a hearing for early next year. Apple withdrew ADP from UK customers in February.

An anonymous reader quotes a report from 404 Media: 4chan and Kiwi Farms sued the United Kingdom's Office of Communications (Ofcom) over its age verification law in U.S. federal court Wednesday, fulfilling a promise it announced on August 23. In the lawsuit, 4chan and Kiwi Farms claim that threats and fines they have received from Ofcom "constitute foreign judgments that would restrict speech under U.S. law." Both entities say in the lawsuit that they are wholly based in the U.S. and that they do not have any operations in the United Kingdom and are therefore not subject to local laws. Ofcom's attempts to fine and block 4chan and Kiwi Farms, and the lawsuit against Ofcom, highlight the messiness involved with trying to restrict access to specific websites or to force companies to comply with age verification laws.

The lawsuit calls Ofcom an "industry-funded global censorship bureau." "Ofcom's ambitions are to regulate Internet communications for the entire world, regardless of where these websites are based or whether they have any connection to the UK," the lawsuit states. "On its website, Ofcom states that 'over 100,000 online services are likely to be in scope of the Online Safety Act -- from the largest social media platforms to the smallest community forum.'" [...] Ofcom began investigating 4chan over alleged violations of the Online Safety Act in June. On August 13, it announced a provisional decision and stated that 4chan had "contravened its duties" and then began to charge the site a penalty of [roughly $26,000] a day. Kiwi Farms has also been threatened with fines, the lawsuit states. "American citizens do not surrender our constitutional rights just because Ofcom sends us an e-mail. In the face of these foreign demands, our clients have bravely chosen to assert their constitutional rights," said Preston Byrne, one of the lawyers representing 4chan and Kiwi Farms.

"We are aware of the lawsuit," an Ofcom spokesperson told 404 Media. "Under the Online Safety Act, any service that has links with the UK now has duties to protect UK users, no matter where in the world it is based. The Act does not, however, require them to protect users based anywhere else in the world."

Digital resurrections of deceased individuals are emerging as the next commercial frontier in AI, with the digital afterlife industry projected to reach $80 billion within a decade. Companies developing these AI avatars are exploring revenue models ranging from interstitial advertising during conversations to data collection about users' preferences.

StoryFile CEO Alex Quinn confirmed his company is exploring methods to monetize interactions between users and deceased relatives' digital replicas, including probing for consumer information during conversations. The technology has already demonstrated persuasive capabilities in legal proceedings, where an AI recreation of road rage victim Chris Pelkey delivered testimony that contributed to a maximum sentence. Current implementations operate through subscription models, though no federal regulations govern commercial applications of posthumous AI representations despite state-level protections for deceased individuals' likeness rights.

An anonymous reader quotes a report from The Register: A German court has told Apple to stop advertising its Watches as being carbon-neutral, ruling that this was misleading and could not fly under the country's competition law. Apple has been marketing its newest smartwatches as being carbon-neutral for nearly two years now, with an array of rationales. It claims that clean energy for manufacturing, along with greener materials and shipping, lop around three-quarters off the carbon emissions for each model of the Apple Watch. The remaining emissions are offset by the purchase of carbon credits, according to Apple.

Deutsche Umwelthilfe (well, DUH – that's the acronym), a prominent environmental group, begged to differ on that last point. It applied for an injunction in May and Tuesday's ruling (in German), which will only be published in full later this week, led it to claim victory. The ruling means Apple can't advertise the Watch as a "CO2-neutral product" in Germany. [...] The ruling revolved around the Paraguayan forestry program that Apple claimed was offsetting some of the Watch's production emissions. The project involves commercial eucalyptus plantations on leased land, where the leases for three-quarters of the land will run out in 2029 with no guarantee of renewal.

According to the court, consumers' expectations of carbon compensation schemes are shaped by the prominent 2015 Paris Agreement, which commits countries to achieving carbon neutrality by the second half of this century. It said consumers would therefore "assume" that the carbon-neutrality claims around the Apple Watch would mean neutrality was assured through 2050. That leaves a 21-year gap of uncertainty in this case. The Verified Carbon Standard program, in which Apple is participating, has a "pooled buffer account" scheme to hedge against this sort of uncertainty. However, the German court was not impressed, saying it would only allow Apple to monitor the situation after the leases run out, which is a far cry from definitely being able to keep offsetting those emissions if the plantation gets cleared.

An anonymous reader quotes a report from TechCrunch: Before 16-year-old Adam Raine died by suicide, he had spent months consulting ChatGPT about his plans to end his life. Now, his parents are filing the first known wrongful death lawsuit against OpenAI, The New York Times reports. Many consumer-facing AI chatbots are programmed to activate safety features if a user expresses intent to harm themselves or others. But research has shown that these safeguards are far from foolproof.

In Raine's case, while using a paid version of ChatGPT-4o, the AI often encouraged him to seek professional help or contact a help line. However, he was able to bypass these guardrails by telling ChatGPT that he was asking about methods of suicide for a fictional story he was writing. OpenAI has addressed these shortcomings on its blog. "As the world adapts to this new technology, we feel a deep responsibility to help those who need it most," the post reads. "We are continuously improving how our models respond in sensitive interactions." Still, the company acknowledged the limitations of the existing safety training for large models. "Our safeguards work more reliably in common, short exchanges," the post continues. "We have learned over time that these safeguards can sometimes be less reliable in long interactions: as the back-and-forth grows, parts of the model's safety training may degrade."

Anthropic reached a settlement with authors in a high-stakes copyright class action that threatened the AI company with potentially billions of dollars in damages. From a report: In a Tuesday filing in the US Court of Appeals for the Ninth Circuit, both sides asked the court to pause all proceedings while they finalize the deal. The parties signed a binding term sheet on Aug. 25 outlining the core terms of a proposed class settlement to resolve litigation brought by authors.

"This historic settlement will benefit all class members," said the authors' counsel, Justin Nelson of Susman Godfrey LLP. "We look forward to announcing details of the settlement in the coming weeks." The case is one of several copyright actions brought against AI developers in courts around the country. Judge William Alsup of the US District Court for the Northern District of California had allowed the class action to proceed for authors whose books were contained in two pirate databases Anthropic downloaded.

The Michigan Supreme Court has drawn a firm line around digital privacy, ruling that police cannot use overly broad warrants to comb through every corner of a person's phone. From a report: In People v. Carson, the court found [PDF] that warrants for digital devices must include specific limitations, allowing access only to information directly tied to the suspected crime. Michael Carson became the focus of a theft investigation involving money allegedly taken from a neighbor's safe. Authorities secured a warrant to search his phone, but the document placed no boundaries on what could be examined.

It permitted access to all data on the device, including messages, photos, contacts, and documents, without any restriction based on time period or relevance. Investigators collected over a thousand pages of information, much of it unrelated to the accusation. The court ruled that this kind of expansive warrant violates the Fourth Amendment, which requires particularity in describing what police may search and seize.

Amazon is facing a proposed class action lawsuit alleging it misleads customers by advertising digital movies and TV shows as "purchases," when in reality buyers only receive revocable licenses that can disappear if Amazon loses distribution rights. From the Hollywood Reporter: On Friday, a proposed class action was filed in Washington federal court against Amazon over a "bait and switch" in which the company allegedly misleads consumers into believing they've purchased content when they're only getting a license to watch, which can be revoked at any time. [...] The lawsuit accuses Amazon, which didn't respond to a request for comment, of misrepresenting the nature of movie and TV transactions during the purchase process. On its website and platform, the company tells consumers they can "buy" a movie. But hidden in a footnote on the confirmation page is fine print that says, "You receive a license to the video and you agree to our terms," the complaint says.

The issue is already before a court. In a 2020 lawsuit alleging unfair competition and false advertising over the practice, Amazon maintained that its use of the word "buy" for digital content isn't deceptive because consumers understand their purchases are subject to licenses. Quoting Webster's Dictionary, it said that the term means "rights to the use or services of payment" rather than perpetual ownership and that its disclosures properly warn people that they may lose access. The court ultimately rebuffed Amazon's bid to dismiss the lawsuit outside of a claim alleging a violation of Washington's unjust enrichment law.

Apple has filed a lawsuit against former Apple Watch staffer Dr. Chen Shi, alleging that he "conspired to steal Apple's trade secrets relating to Apple Watch and to disclose them to his new employers (Oppo)." The company alleges he downloaded 63 sensitive documents, attended technical meetings, and coordinated with Oppo to transfer proprietary information, though Oppo denies wrongdoing. The Verge reports: Ahead of starting his new job at Oppo, the employee, Dr. Chen Shi, attended "dozens" of meetings with technical members on the Apple Watch team to learn about their work and downloaded 63 documents "from a protected Box folder" that he loaded onto a USB drive, according to the lawsuit. Shi allegedly sent a message to Oppo saying that he was working to "collect as much information as possible" before starting his job. And he searched the internet for terms like "how to wipe out macbook" and "Can somebody see if I've opened a file on a shared drive?" from his Apple-issued MacBook before leaving the company.

Shi was formerly a sensor system architect at Apple, and the company says he had "a front row seat to Apple's development of its cutting-edge health sensor technology, including highly confidential roadmaps, design and development documents, and specifications for ECG sensor technology." He now heads up a team working on sensing technology at Oppo -- which Apple says it learned because of "messages he left on his Apple-issued work iPhone." In his resignation letter to Apple, Shi said he was leaving "due to personal and family reasons." Via that iPhone, Apple also says it found messages from Oppo demonstrating that it "encouraged, approved, and agreed to Dr. Shi's plan to collect Apple's proprietary information before leaving Apple."

An anonymous reader shares a report: Elon Musk's AI startup xAI sued Apple and ChatGPT maker OpenAI in U.S. federal court in Texas on Monday, accusing them of illegally conspiring to thwart competition for artificial intelligence.

Musk earlier this month had threatened to sue Cupertino, California-based Apple, saying in a post on his social media platform X that "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store."

People in Mississippi no longer have access to Bluesky. "If you access Bluesky from a Mississippi IP address, you'll see a message explaining why the app isn't available," announced a Bluesky blog post Friday.

The reason is a new Mississippi law that "requires all users to verify their ages before using common social media sites ranging from Facebook to Nextdoor," noted NPR. Bluesky wrote that their block "will remain in place while the courts decide whether the law will stand." [U]nder the law, we would need to verify every user's age and obtain parental consent for anyone under 18. The potential penalties for non-compliance are substantial — up to $10,000 per user. Building the required verification systems, parental consent workflows, and compliance infrastructure would require significant resources that our small team is currently unable to spare.
Bluesky also notes that the law "requires collecting and storing sensitive personal information from all users...not just those accessing age-restricted content" — and that this information would include "detailed tracking of minors."

TechCrunch notes that even blocking Mississippi has created some problems: Some Bluesky users outside Mississippi subsequently reported issues accessing the service due to their cell providers routing traffic through servers in the state, with CTO Paul Frazee responding Saturday that the company was "working deploy an update to our location detection that we hope will solve some inaccuracies." The company's blog post notes that its decision only applies to the Bluesky app built on the AT Protocol. Other apps may approach the decision differently.
Interestingly, the law had been immediately challenged by NetChoice (a trade association of major tech companies). But while a District Court agreed, blocking the law from going into effect (until court challenges finished), an Appeals Court then lifted that block. A final appeal to America's Supreme Court was unsuccessful — although the ruling by Justice Kavanaugh suggests the law could be overturned later: "To be clear, NetChoice has, in my view, demonstrated that it is likely to succeed on the merits — namely, that enforcement of the Mississippi law would likely violate its members' First Amendment rights under this Court's precedents... [U]nder this Court's case law as it currently stands, the Mississippi law is likely unconstitutional. Nonetheless, because NetChoice has not sufficiently demonstrated that the balance of harms and equities favors it at this time, I concur in the Court's denial of the application for interim relief."

Bluesky has blocked access to its service in Mississippi rather than comply with a new state law requiring age verification for all social media users. TechCrunch reports: In a blog post published on Friday, the company explains that, as a small team, it doesn't have the resources to make the substantial technical changes this type of law would require, and it raised concerns about the law's broad scope and privacy implications. Mississippi's HB 1126 requires platforms to introduce age verification for all users before they can access social networks like Bluesky. On Thursday, U.S. Supreme Court justices decided to block an emergency appeal that would have prevented the law from going into effect as the legal challenges it faces played out in the courts. As a result, Bluesky had to decide what it would do about compliance.

Instead of requiring age verification before users could access age-restricted content, this law requires age verification of all users. That means Bluesky would have to verify every user's age and obtain parental consent for anyone under 18. The company notes that the potential penalties for noncompliance are hefty, too -- up to $10,000 per user. Bluesky also stresses that the law goes beyond child safety, as intended, and would create "significant barriers that limit free speech and disproportionately harm smaller platforms and emerging technologies." To comply, Bluesky would have to collect and store sensitive information from all its users, in addition to the detailed tracking of minors. This is different from how it's expected to comply with other age verification laws, like the U.K.'s Online Safety Act (OSA), which only requires age checks for certain content and features.

Mississippi's law blocks anyone from using the site unless they provide their personal and sensitive information. The company notes that its decision only applies to the Bluesky app built on the AT Protocol. Other apps may approach the decision differently.

An anonymous reader quotes a report from the BBC: A lawyer representing the online message board 4chan says it won't pay a proposed fine by the UK's media regulator as it enforces the Online Safety Act. According to Preston Byrne, managing partner of law firm Byrne & Storm, Ofcom has provisionally decided to impose a 20,000-pound fine "with daily penalties thereafter" for as long as the site fails to comply with its request. "Ofcom's notices create no legal obligations in the United States," he told the BBC, adding he believed the regulator's investigation was part of an "illegal campaign of harassment" against US tech firms.

"4chan has broken no laws in the United States -- my client will not pay any penalty," Mr Byrne said. Ofcom began investigating 4chan over whether it was complying with its obligations under the UK's Online Safety Act. Then in August, it said it had issued 4chan with "a provisional notice of contravention" for failing to comply with two requests for information. Ofcom said its investigation would examine whether the message board was complying with the act, including requirements to protect its users from illegal content. "American businesses do not surrender their First Amendment rights because a foreign bureaucrat sends them an email," law firms Byrne & Storm and Coleman Law wrote. "Under settled principles of US law, American courts will not enforce foreign penal fines or censorship codes. If necessary, we will seek appropriate relief in US federal court to confirm these principles."

The statement calls on the Trump administration to intervene and protect American businesses from "extraterritorial censorship mandates."

An anonymous reader quotes a report from the New York Times: Jay Blahnik was a fitness superstar with a book and nearly two decades of work with Nike before he was hired in 2013 to work on the Apple Watch. He became known inside Apple as the creator of the watch's signature fitness feature: three circular bands that people could complete through the day by exercising, standing and burning calories. Marketed with the tagline "Close Your Rings," the concept helped galvanize sales of Apple's first breakout product after Steve Jobs's death. But along the way, Mr. Blahnik created a toxic work environment (Warning: source may be paywalled; alternative source), said nine current and former employees who worked with or for Mr. Blahnik and spoke about personnel issues on the condition of anonymity. They said Mr. Blahnik, 57, who leads a roughly 100-person division as vice president for fitness technologies, could be verbally abusive, manipulative and inappropriate. His behavior contributed to decisions by more than 10 workers to seek extended mental health or medical leaves of absence since 2022, about 10 percent of the team, these people said.

When confronted with Mr. Blahnik's behavior, Apple moved to protect him after an internal investigation. The company settled one complaint alleging sexual harassment by Mr. Blahnik and is fighting a lawsuit by an employee, Mandana Mofidi, who said he had bullied her. Mr. Blahnik stayed in his job after company officials said their investigation had found no evidence of wrongdoing, according to interviews and Ms. Mofidi's lawsuit, which she filed against Mr. Blahnik and Apple last year in Los Angeles County Superior Court. The tension inside Mr. Blahnik's division speaks to workplace dysfunction at the heart of one of Apple's signature health initiatives. These employees said the company was more willing to protect a star executive than address the concerns of rank-and-file workers.

A federal appeals court rejected T-Mobile's attempt to overturn $92 million in fines for selling customer location information to third-party firms. From a report: The Federal Communications Commission last year fined T-Mobile, AT&T, and Verizon, saying the carriers illegally shared access to customers' location information without consent and did not take reasonable measures to protect that sensitive data against unauthorized disclosure. The fines relate to sharing of real-time location data that was revealed in 2018, but it took years for the FCC to finalize the penalties.

The three carriers appealed the rulings in three different courts, and the first major decision was handed down Friday. A three-judge panel at the US Court of Appeals for the District of Columbia Circuit ruled unanimously against T-Mobile and its subsidiary Sprint. "Every cell phone is a tracking device," the ruling begins. "To receive service, a cell phone must periodically connect with the nearest tower in a wireless carrier's network. Each time it does, it sends the carrier a record of the phone's location and, by extension, the location of the customer who owns it. Over time, this information becomes an exhaustive history of a customer's whereabouts and 'provides an intimate window into [that] person's life.'"