The EU Commission on Monday fined Apple about $2 billion for stifling competition from rival music streaming services. In a blog post, Spotify writes: Apple's rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits -- denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks. Of course, Apple Music, a competitor to these apps, is not barred from the same behaviour. By requiring Apple to stop its illegal conduct in the EU, the EC is putting consumers first. It is a basic concept of free markets -- customers should know what options they have, and customers, not Apple, should decide what to buy, and where, when and how.

While we appreciate the EC addressing this important case, we also know that the details matter. Apple has routinely defied laws and court decisions in other markets. So we're looking forward to the next steps that will hopefully clearly and conclusively address Apple's long-standing unfair practices.

From the beginning, the foundational belief of the internet is that it should be a fair and open ecosystem. That belief has fueled growth, innovation and discovery around the world. Today the leading way people access the internet is via their mobile phones. So why should the same principles not apply? And while we are pleased that this case delivers some justice, it does not solve Apple's bad behaviour towards developers beyond music streaming in other markets around the world. Our work will not be done until we succeed in securing a truly fair digital marketplace everywhere and our commitment to helping to make this a reality remains unwavering. Further reading: Apple's response.

"Apple faces a proposed class action lawsuit alleging the company holds an illegal monopoly over digital storage for its customers," reports the Hill: The suit, filed Friday, claims "surgical" restraints prevent customers from effectively using any service except its iCloud storage system. iCloud is the only service that can host certain data from the company's phones, tablets and computers, including application data and device settings. Plaintiffs allege the practice has "unlawfully 'tied'" the devices and iCloud together... "As a result of this restraint, would-be cloud competitors are unable to offer Apple's device holders a full-service cloud-storage solution, or even a pale comparison."
The suit argues that there are "no technological or security justifications for this limitation on consumer choice," according to PC Magazine.

The class action's web site is arguing that "Consumers may have paid higher prices than they allegedly would have in a competitive market."

An anonymous reader quotes a report from MacRumors: Spotify, Epic Games, Deezer, Paddle, and several other developers and EU associations today sent a joint letter to the European Commission to complain about Apple's "proposed scheme for compliance" with the Digital Markets Act (DMA). The 34 companies and associations do not believe Apple's plans "meet the law's requirements." Apple's changes "disregard both the spirit and letter of the law" and if left unchanged, will "make a mockery of the DMA," according to the letter. Several specific components of Apple's plan are highlighted, including the Core Technology Fee, the Notarization process, and the terms that developers must accept:

- Apple's requirement to stay with the current App Store terms or opt in to new terms provides developers with "an unworkable choice" that adds complexity and confusion. The letter suggests that neither option is DMA compliant and would "consolidate Apple's stronghold over digital markets."
- The Core Technology Fee and transaction fees will hamper competition and will prevent developers from agreeing to the "unjust terms."
- Apple is using "unfounded privacy and security concerns" to limit user choice. The "scare screens" that Apple plans to show users will "mislead and degrade the user experience."
- Apple is not allowing sideloading, and it is making the installation and use of new app stores "difficult, risky and financially unattractive for developers."

The companies and associations are urging the European Union to take "swift, timely and decisive action against Apple." The way the European Commission responds to Apple's proposal "will serve as a litmus test of the DMA and whether it can deliver for Europe's citizens and economy." Further reading: Apple Backtracks on Removing EU Home Screen Web Apps in iOS 17.4

Apple is reversing its previous decision to remove support for Home Screen web apps in iOS 17.4 for EU users. Apple's statement: Previously, Apple announced plans to remove the Home Screen web apps capability in the EU as part of our efforts to comply with the DMA. The need to remove the capability was informed by the complex security and privacy concerns associated with web apps to support alternative browser engines that would require building a new integration architecture that does not currently exist in iOS.

We have received requests to continue to offer support for Home Screen web apps in iOS, therefore we will continue to offer the existing Home Screen web apps capability in the EU. This support means Home Screen web apps continue to be built directly on WebKit and its security architecture, and align with the security and privacy model for native apps on iOS.

Developers and users who may have been impacted by the removal of Home Screen web apps in the beta release of iOS in the EU can expect the return of the existing functionality for Home Screen web apps with the availability of iOS 17.4 in early March.

A number of government agencies in the European Union and elsewhere have voiced concerns about security risks as Apple opens up its iPhones and iPads to rival app stores to comply with EU tech rules, Apple said on Friday. From a report: Under the Digital Markets Act, from March 7 Apple will be required to offer alternative app stores on iPhones and allow developers to opt out of using its in-app payment system, which charges fees of up to 30%. The U.S. tech giant, which on Jan. 24 detailed the changes to bring its App Store in line with the EU rules, said "sideloading" has sparked concerns from both EU and non-EU government agencies and users.

Hackers targeting individuals in the cryptocurrency sector are using a sophisticated phishing scheme that begins with a malicious link on Calendly. "The attackers impersonate established cryptocurrency investors and ask to schedule a video conference call," reports Krebs on Security. "But clicking the meeting link provided by the scammers prompts the user to run a script that quietly installs malware on macOS systems." From the report: A search in Google for a string of text from that script turns up a December 2023 blog post from cryptocurrency security firm SlowMist about phishing attacks on Telegram from North Korean state-sponsored hackers. "When the project team clicks the link, they encounter a region access restriction," SlowMist wrote. "At this point, the North Korean hackers coax the team into downloading and running a 'location-modifying' malicious script. Once the project team complies, their computer comes under the control of the hackers, leading to the theft of funds."

SlowMist says the North Korean phishing scams used the "Add Custom Link" feature of the Calendly meeting scheduling system on event pages to insert malicious links and initiate phishing attacks. "Since Calendly integrates well with the daily work routines of most project teams, these malicious links do not easily raise suspicion," the blog post explains. "Consequently, the project teams may inadvertently click on these malicious links, download, and execute malicious code."

SlowMist said the malware downloaded by the malicious link in their case comes from a North Korean hacking group dubbed BlueNoroff, which Kaspersky Labs says is a subgroup of the Lazarus hacking group. "A financially motivated threat actor closely connected with Lazarus that targets banks, casinos, fin-tech companies, POST software and cryptocurrency businesses, and ATMs," Kaspersky wrote of BlueNoroff in Dec. 2023.

Apple plans to disclose more about its plans to put generative AI to use later this year, Chief Executive Officer Tim Cook said during the company's annual shareholder meeting on Wednesday. From a report: Cook said that the iPhone maker sees "incredible breakthrough potential for generative AI, which is why we're currently investing significantly in this area. We believe that will unlock transformative opportunities for users when it comes to productivity, problem solving and more."

Apple has been slower in rolling out generative AI, which can generate human-like responses to written prompts, than rivals such as Microsoftand Alphabet's Google, which are weaving them into products. On Wednesday, Cook argued that AI is already at work behind the scenes in Apple's products but said there would be more news on explicit AI features later this year. Bloomberg previously reported Apple plans to use AI to improve the ability to search through data stored on Apple devices. "Every Mac that is powered by Apple silicon is an extraordinarily capable AI machine. In fact, there's no better computer for AI on the market today," Cook said.

Apple has filed a lawsuit against the U.S. Patent and Trademark Office for refusing to grant trademarks covering the company's augmented-reality software development tools "Reality Composer" and "Reality Converter." Reuters reports: Apple, whose augmented-reality technology is a centerpiece of its newly released Vision Pro headset, asked the court (PDF) on Friday to reverse the USPTO's decision that the phrases were not distinctive enough to receive federal trademark protection. "Consumers must exercise imagination to understand how the nonsensical phrases 'reality composer' and 'reality converter' -- which sound like science fiction impossibilities -- relate to Apple's products," the complaint said. "They are suggestive, just as Burger King is a fast-food chain, not an actual monarch."

Apple's Reality Composer and Reality Converter allow developers to create and alter 3-D augmented-reality content for Apple apps. The content is compatible with Apple devices including the Vision Pro mixed-reality headset, which the tech giant began selling earlier this month. Turkish visual-effects company ZeroDensity challenged Apple's trademark applications at the USPTO, arguing that the phrases could not receive federal trademarks because they merely describe what the software does. ZeroDensity also said Apple's trademarks would cause confusion with its own "Reality"-related marks.

ZeroDensity, the named defendant in the case, said in a statement on Monday that it was "surprised and concerned by [Apple's] misinterpretation and misrepresentation of our company" and is "resolute in defending our 'Reality' trademarks." A USPTO tribunal agreed with ZeroDensity that Apple's marks were descriptive without addressing whether they would confuse consumers. Apple said in Friday's complaint that its phrases were "made-up terms coined by Apple that do not describe the underlying software development tools." "In contrast, descriptive terms like Raisin Bran or American Airlines straightforwardly describe the goods and services offered under the brand name," Apple said. "As innovative as Apple is, it cannot 'compose' or 'convert' reality." Apple argued that its marks would not cause consumer confusion and accused ZeroDensity of trying to "claim broad rights in the word 'reality,' which no one entity can monopolize."

Bloomberg News: Apple is canceling a decade-long effort to build an electric car, according to people with knowledge of the matter, abandoning one of the most ambitious projects in the history of the company. Apple made the disclosure internally Tuesday, surprising the nearly 2,000 employees working on the project, said the people, who asked not to be identified because the announcement wasn't public.

The decision was shared by Chief Operating Officer Jeff Williams and Kevin Lynch, a vice president in charge of the effort, according to the people. The two executives told staffers that the project will begin winding down and that many employees on the team working on the car -- known as the Special Projects Group, or SPG -- will be shifted to the artificial intelligence division under executive John Giannandrea. Those employees will focus on generative AI projects, an increasingly key priority for the company. The Apple car team also has several hundred hardware engineers and car designers. It's possible that they will be able to apply for jobs on other Apple teams. There will be layoffs, but it's unclear how many.

The decision to ultimately wind down the project is a bombshell for the company, ending a multibillion-dollar effort that would have vaulted Apple into a whole new industry. The tech giant started working on a car around 2014, setting its sights on a fully autonomous electric vehicle with a limousine-like interior and voice-guided navigation. But the project struggled nearly from the start, with Apple changing the team's leadership and strategy several times. Lynch and Williams took over the undertaking a few years ago -- following the departure of Doug Field, now a senior executive at Ford Motor.

Netflix is severing ties with Apple's App Store billing system for good. From a report: Netflix stopped allowing new and rejoining subscribers to sign up with App Store billing back in 2018, but Netflix subscribers who were paying through Apple at the time were allowed to continue doing so. Now, that's finally about to change.

As reported by The Streamable, Netflix has started notifying people who currently pay for a subscription through Apple that they need to update their payment method to continue accessing the service. Netflix's support website has also been updated to acknowledge this change: "Some Apple-billed members in select countries may be prompted to add a new payment method to continue their subscription."

Microsoft offered to sell its Bing search engine to Apple in 2018, Google said in a court filing earlier this month. The document, from Google's antitrust case against the U.S. Justice Department, was unsealed on Friday. From a report: In the filing earlier this month, Google argued that Microsoft pitched Apple in 2009, 2013, 2015, 2016, 2018 and 2020 about making Bing the default in Apple's Safari web browser, but each time, Apple said no, citing quality issues with Bing. "In each instance, Apple took a hard look at the relative quality of Bing versus Google and concluded that Google was the superior default choice for its Safari users. That is competition," Google wrote in the filing.

The Justice Department said in its own newly unsealed filing that Microsoft has spent almost $100 billion on Bing over 20 years. The Windows and Office software maker launched Bing in 2009, following search efforts under the MSN and Windows Live brands. Today Bing has 3% global market share, according to StatCounter. In the fourth quarter, Microsoft generated $3.2 billion from search and news advertising, while Google search and other revenue totaled $48 billion. Google said in its filing that when Microsoft reached out to Apple in 2018, emphasizing gains in Bing's quality, Microsoft offered to either sell Bing to Apple or establish a Bing-related joint venture with the company.

Apple could soon face an investigation over its decision to discontinue iPhone web apps in the European Union, according to a report from the Financial Times. The Verge: The European Commission has reportedly sent Apple and app developers requests for more information to assist in its evaluation. "We are indeed looking at the compliance packages of all gatekeepers, including Apple," the European Commission said in a statement to the Financial Times. "In that context, we're in particular looking into the issue of progressive web apps, and can confirm sending the requests for information to Apple and to app developers, who can provide useful information for our assessment."

An anonymous reader shares a report: Vision Pro owners are posting near-identical reports of a crack appearing on the front glass of their headsets. None of them seem to know how it happened, either. The issue was first spotted by MacRumors, and so far, there have been five separate Redditors who have posted about it in the r/VisionPro subreddit. Engadget also reported that the same happened with its review unit.

What makes it curious is that all of the uploaded pictures appear to show vertical hairline cracks in the same exact area above the nose bridge. All the affected Redditors say they didn't do anything obvious to cause the cracks, like dropping the device or storing it improperly. Reddit user @dornbirn claims that they polished the front glass, placed the soft cover on, packed it away in the case, and woke up to see the crack the next morning. Most of the other affected Redditors also noted they either stored their Vision Pros in cases or placed the soft cover on.

Apple has updated the iPhone 15's battery lifespan, noting the new handsets can retain 80 percent of their original charging capacity after 1,000 cycles -- double the company's previous estimate -- without any new hardware or software updates. From a report: Not so coincidentally, the change will arrive in time for upcoming EU regulations that will assign an energy grade for phones' battery longevity. Before today, Apple's online support documents quoted iPhone batteries as maintaining 80 percent of their original full charge after 500 cycles. But after the company retested long-term battery health in its 2023 smartphones -- iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max -- it found they can retain 80 percent capacity after at least 1,000 cycles. The company said its support documents will be updated on Tuesday to reflect the new estimate.

Apple is rolling out an upgrade to its iMessage texting platform to defend against future encryption-breaking technologies. From a report: The new protocol, known as PQ3, is another sign that U.S. tech firms are bracing for a potential future breakthrough in quantum computing that could make current methods of protecting users' communications obsolete. "More than simply replacing an existing algorithm with a new one, we rebuilt the iMessage cryptographic protocol from the ground up," an Apple blog post published on Wednesday reads. "It will fully replace the existing protocol within all supported conversations this year."

The Cupertino, California-based iPhone maker says its encryption algorithms are state-of-the-art and that it has found no evidence so far of a successful attack on them. Still, government officials and scientists are concerned that the advent of quantum computers, advanced machines that tap in to the properties of subatomic particles, could suddenly and dramatically weaken those protections. Late last year, a Reuters investigation explored how the United States and China are racing to prepare for that moment, dubbed "Q-Day," both by pouring money into quantum research and by investing in new encryption standards known as post-quantum cryptography. Washington and Beijing have traded allegations of intercepting massive amounts of encrypted data in preparation for Q-Day, an approach sometimes dubbed "catch now, crack later." More on Apple's security blog.

An anonymous reader shares a report: In a recent support document, Apple states that putting wet devices in a bag of rice could "allow small particles of rice to damage your iPhone," although it doesn't go into further detail. The company also recommended against using other well-known hacks, such as using an external heat source to dry the phone or sticking a cotton swab into the connector. The company's warning on rice coincides with those of other repair experts, who have found that the rice hack works slower than simply leaving your iPhone on a counter to dry. Time is crucial in these situations, as the most important thing is to prevent the water from damaging the electronics inside the phone.

Apple is probably at least 18 months away from launching a second-generation Vision Pro. Based on the early response to the first version, that may be a long time for some people to wait. Bloomberg: Since the Vision Pro debuted on Feb. 2, it's become clear that the mixed-reality headset is still a work in progress. Despite the dazzling demos -- and generally positive reviews -- it can be challenging to use on a daily basis. It's heavy. The interface doesn't always work smoothly. And it's hard to forget the fact that you paid $3,500 or more for this experience. Vision Pro loyalists stress that the current model is only the first generation. It will get better in time. Don't forget, they say, that the original iPhone, iPad and Apple Watch had their quirks too. If the headset feels too heavy, you're wearing it wrong. The narrower-than-expected field of view and glare? That's normal. Now, it's true that Apple's earlier first-generation products had their issues. The initial iPhone couldn't connect to 3G networks and lacked the App Store or even the ability to cut and paste. The iPad didn't have multitasking. The original Apple Watch was too sluggish and wasn't waterproof. But I don't think anyone complained that those devices were too cumbersome, an actual pain to use or too expensive to justify keeping.

[...] Apple isn't commenting on the Vision Pro's return rate, but data from sources at retail stores suggests that it's likely somewhere between average and above average compared with other products -- depending on the location. Some smaller stores are seeing one or two returns per day, but larger locations have seen as many as over eight take-backs in a single day. [...] Based on what I've seen so far, the demos have been effective -- maybe too effective. They sell consumers on an experience that doesn't quite exist yet. Some stores are seeing conversion rates after demos as high as 10% to 15%. That's an impressive number for a product with the Vision Pro's price tag.

"Apple will reportedly have to pay around €500 million (about $539 million USD) in the EU," reports the Verge, "for stifling competition against Apple Music on the iPhone. Financial Times reported this morning that the fine comes after regulators in Brussels, Belgium investigated a Spotify complaint that Apple prevented apps from telling users about cheaper alternatives to Apple's music service.... The EU whittled its objections down to oppose Apple's refusal to let developers even link out to their own subscription sign-ups within their apps — a policy that Apple changed in 2022 following regulatory pressure in Japan.

$500 million may sound like a lot, but a much bigger fine of close to $40 billion (or 10 percent of Apple's annual global turnover) was on the table when the EU updated its objections last year. Apple was charged over a billion dollars in 2020, but French authorities dropped that to about $366 million after the company appealed.
The Verge cites an Apple spokesperson who said a year ago that the EU case "has no merit."

Reuters that the EU's fine "is expected to be announced early next month, the Financial Times said."

More from Politico The fine would be the EU's first ever against Apple and is expected to be announced early next month, according to the FT report. It is the result of a European Commission antitrust probe into whether Apple's "anti-steering" requirements breach the bloc's abuse of dominance rules, harming music consumers "who may end up paying more" for apps... The Commission will rule that Apple's actions are illegal and against EU competition rules, according to the report.
"The EU executive will ban Apple's practice of barring music services from letting users know of cheaper alternatives outside the App Store, according to the newspaper."

"It appears that Apple Pay is down — particularly for Chase customers," reports the Verge: Verge staffers have had their cards declined while trying to pay with Chase cards using Apple Pay, while using the same physical card works just fine. Several people on Threads confirmed the same issue when I asked — although people with non-Chase banks like Citi appear to be using Apple Pay just fine...

For what it's worth, the Chase customer service line is currently up to 15-minute wait times, and agents are telling people that Apple Pay is "going through maintenance" to receive "an unexpected upgrade," which is a delightful euphemism. Sadly, no one seems to know when things will be fixed.
"Maintenance in progress," says Apple's system status page — saying their maintenance started five hours ago and is "ongoing." (It adds that some users may be "affected," and that some Maryland Users "may have issues.")

But the Verge writes that "we've had reports in both New York and Los Angeles," while commenters on their article add that they've also experienced the same problem in Florida and in Colorado.

UPDATE (2/18/2024): An Apple spokesperson told the Verge Sunday this "was not an Apple Pay issue, and we saw no problems with our systems." (The Verge adds that "the not-so-subtle subtext there being that this was a Chase problem...") The spokesperson added that Apple's maintenance announcement on their system status page was unrelated.

According to Bloomberg (paywalled), Apple plans to release a generative AI tool for iOS app developers as early as this year. Insider reports: The tech giant is working on a tool that will use artificial intelligence to write code as part of its plans to expand the capabilities of Xcode, the company's main programming software. The revamped system will compete withÂMicrosoft's GitHub Copilot, which sources say operates similarly. Apple is also working on an AI tool that will generate code to test apps, which could provide potential time savings for a process that's known to be tedious. Currently, Apple is urging some engineers to test these new AI features to ensure they work before releasing them externally to developers. [...]

The tech giant, Bloomberg has learned, has plans to integrate AI features into its next software updates for its iPhone and iPad known internally as Crystal. Glow, another internal AI project, is slated to be added to MacOS. The company is also building features that will generate Apple Music playlists and slideshows, according to the outlet. An AI-powered search feature titled Spotlight, currently limited to answering questions around launching apps, is in the works as well, Bloomberg reported.