alao News in November: Microsoft steals your login data; Unfair business practices at Amazon, Google and Apple
From now on, you can read the most important tech, provider and device news here every month. This is the news that kept the Swiss tech world busy in November.
Microsoft Outlook steals your email passwords
If you use your normal iCloud, Gmail or other IMAP email account with Outlook, you should be careful: With the new Outlook, which is due to be released in 2024 but can already be tested now, Microsoft will also store your access data in its own cloud. Heise was able to record the data traffic with the Microsoft servers and discovered that although the data is TLS-protected, it is transmitted in plain text in the tunnel. This is problematic because even Microsoft is not immune to hacks – last seen in July this year – and it also allows the tech giant to screen your emails.
Google: Apple iMessage is a gatekeeper
With the Digital Markets Act (DMA), 22 platforms were declared gatekeepers in the EU. These include social networks such as TikTok, Instagram and Facebook, but also browsers (Chrome & Safari), operating systems, advertising platforms, app stores and online stores, messengers and more. But one service is missing from this list: Apple’s iMessage. Google and major telecommunications companies such as Telekom, Vodafone and Telefonica are now calling in an open letter for iMessage to be designated as a gatekeeper and thus be subject to the same opening rules as WhatsApp or Facebook Messenger. Ultimately, this could mean that iMessage must become compatible with other messengers. To be designated as a gatekeeper, the service must be used by 45 million people every month. To get ahead of the legislators, Apple then announced RCS support a few days later (more on this here). It is to be implemented in 2024.
iOS 17.2: Sideloading functions discovered
The Digital Markets Act has forced Apple to open up its App Store and allow sideloading. This means that users will also be able to install apps outside the App Store in future – provided they live in the EU. It is not yet known whether sideloading will then also be possible for Swiss users. Functions and interfaces have now been discovered in the new iOS version 17.2 that allow apps to install and update their own apps, similar to the Amazon App Store for Android. Apple has until March 2024 to implement the requirements of the DMA.
Google pays Apple 36% of advertising revenue
As we reported last month, Google pays Apple up to 20 billion dollars every year to remain its default search engine. Several antitrust proceedings are currently underway in the USA against the tech giants. They are accused of abusing their market power. A witness hearing has now revealed that Apple receives 36% of the advertising revenue generated by Safari users. Both Google and Apple wanted to keep the exact amount secret. The cartel watchdogs are taking a close look at the Google-Apple deal. They are of the opinion that this puts smaller search engines at a disadvantage.
Amazon gives Apple special treatment in the store
Even though Amazon does not have its own store in Switzerland: The Swiss spend an estimated 900 million francs a year on amazon.de, amazon.fr or amazon.it. If you search for Apple devices there, you will notice that the search results and product pages are surprisingly high quality and free of advertising and Chinese junk products. This is due to a secret deal that Apple and Amazon made in 2018, which has now been made public in the antitrust proceedings against Amazon. It is not known how much Apple is paying Amazon. Amazon initially refused to keep Apple product pages free of advertising, according to media reports. Jeff Wilkens, Amazon’s Retail Chief at the time, replied that Apple would have to compensate Amazon financially for the lost advertising revenue.
Screenwriters’ and actors’ strikes in the USA ended
If things get a little quieter on your streaming platforms of choice over the next few months, it’s because of strikes by screenwriters and actors. While the studios were able to reach a deal with the Writers Guild of America back in October, the dispute between the studios and the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) was only settled in early November. It was the first joint strike by writers and actors since 1960 and the main focus of the industrial action was the changes brought about by streaming, in particular financial participation, which used to be the norm. Artificial intelligence was also a point of contention. Both deals set tight limits on the studios’ use of AI.
Media groups are under pressure due to rising interest rates worldwide. Numerous streaming platforms have increased their prices or removed loss-making productions from their platforms in return for tax write-offs. Trouble is also looming in the video games industry: SAG-AFTRA has given the green light for a strike if negotiations with the voice actors and performers and the video games studios are not successful.
Swisscom lowers revenue forecast for 2023
2023 was not a good year for the telecommunications company. Although Swisscom was able to increase its profit slightly, revenue only grew by 0.3% to CHF 8.2 billion. Without the strong Italian business, revenue would even have fallen in the last quarter. The higher profit was also due to the absence of special effects. Last year, fines and legal disputes weighed on the balance sheet, while this year lower hardware sales and the weak euro had an impact on the balance sheet.
Sunrise: Price increases scare off Internet customers
Almost all providers increased their prices this year. Sunrise, for example, increased its prices by 4% in June. In the Internet sector, the provider lost 7400 customers (German) as a result, although 29200 new mobile customers were acquired in the same period. In the same quarter of the previous year, 42,000 customers opted for a subscription with Switzerland’s second-largest provider. However, the decline is in line with expectations, according to Sunrise. Sunrise is also struggling with weakening cell phone sales. The Group is also complaining about high access costs to Swisscom’s fiber optic network. Sunrise expects a slight decline in revenue for the financial year
