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SUMMARY NEW APPLE PENCIL ANNOUNCED WITH USB-C, HOVER FUNCTIONALITY & MAGNETIC ATTACHMENT AMAZON WILL START TESTING DRONES THAT WILL DROP PRESCRIPTIONS ON YOUR DOORSTEP, LITERALLY MICROSOFT - ACTIVISION BLIZZARD ACQUISITION BOOSTING THE FUTURE OF GAMING EUROPE IS LOOKING TO FIGHT THE FLOOD OF CHINESE ELECTRIC VEHICLES. BUT EUROPEANS LOVE THEM 08 30 52 86
SONY’S ACCESS CONTROLLER FOR THE PLAYSTATION AIMS TO MAKE GAMING EASIER FOR... 18 MAJOR SOLAR PANEL PLANT OPENS IN US AMID BACKDROP OF INDUSTRY WORRIES ABOUT... 40 MICROSOFT SPENT TWO YEARS TRYING TO BUY ACTIVISION BLIZZARD. FOR XBOX CEO, THAT... 74 US REGULATORS INVESTIGATE GM’S CRUISE DIVISION OVER INCIDENTS INVOLVING... 104 WHAT GOOGLE’S ANTITRUST TRIAL MEANS FOR YOUR SEARCH HABITS 112 AMAZON, TRIPADVISOR AND OTHER COMPANIES TEAM UP TO BATTLE FAKE REVIEWS WHILE... 124 LINKEDIN CUTS MORE THAN 600 WORKERS, ABOUT 3% OF WORKFORCE 132 SAG-AFTRA PRESIDENT FRAN DRESCHER REACTS TO HOLLYWOOD STUDIOS BREAKING... 158 MUSK’S X TESTS $1 FEE FOR NEW USERS IN THE PHILIPPINES AND NEW ZEALAND IN BID TO... 168 CHINESE SEARCH ENGINE COMPANY BAIDU UNVEILS ERNIE 4.0 AI MODEL, CLAIMS THAT IT... 174 MOVIES & TV SHOWS 138 TOP 10 TV SHOWS 148 TOP 10 BOOKS 150 TOP 10 SONGS 152 TOP 10 ALBUMS 154 TOP 10 MUSIC VIDEOS 156


NEW APPLE PENCIL ANNOUNCED WITH USB-C, HOVER FUNCTIONALITY & MAGNETIC ATTACHMENT 08
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Today, Apple is bringing more choice to iPad users with a new, more affordable Apple Pencil. With pixel-perfect accuracy, low latency, and tilt sensitivity, the new Apple Pencil is ideal for note taking, sketching, annotating, journaling, and more. Designed with a matte finish and a flat side that magnetically attaches to the side of iPad for storage, the new Apple Pencil pairs and charges with a USB-C cable. The new Apple Pencil will be available beginning in early November. “Apple Pencil has revolutionized note taking, sketching, and illustrating, unleashing endless possibilities for productivity and creativity,” said Bob Borchers, Apple’s vice president of Worldwide Product Marketing. “Combined with the versatility of iPad, the new Apple Pencil unlocks another great option to experience the magic of digital handwriting, annotation, marking up documents, and more.” FAMILIAR RESPONSIVENESS AND ACCURACY The latest Apple Pencil offers the same low latency, tilt sensitivity, and overall accuracy that its expensive counterparts offer. In addition, the Pencil is optimized for iPadOS as it supports Scribble, Quick Note, and collaborating in Freeform. USB-C CONNECTIVITY The affordable Apple Pencil features a convenient USB-C port that you can access by sliding the cap open. This means you can easily connect it to any USB-C iPad, including the iPad 10th Gen, the latest iPad Pro, iPad Air, and iPad mini. 10
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The magnetic attachment feature, inherited from the second-generation Apple Pencil, securely affixes the Pencil to the side of your iPad, putting it in a low-power state to conserve battery life – a small but handy addition. INTRODUCING APPLE PENCIL HOVER One intriguing feature that sets the $79 Apple Pencil apart from its first-generation predecessor is the support for Apple Pencil hover. This function allows you to preview certain actions before committing to them, much like hovering your mouse cursor over an item. Previously exclusive to the $129 Apple Pencil 2, this functionality is now accessible in a more budget-friendly option. While the new Apple Pencil offers hover and magnetic attachment, there is a trade-off to keep in mind here. If you purchase the latest model, you will sacrifice the pressure sensitivity offered by the first and second-generation Apple Pencil. This means that the Pencil will not excel at simulating a wide range of light and deep strokes while drawing. For features like wireless pairing and charging, double-tap functionality for switching tools, and custom engraving, you’ll still need to opt for the high-end Apple Pencil 2. The new Apple Pencil with USB-C is slated to become available in “early November.” For those who already own a first-generation Apple Pencil and plan to upgrade to a USB-C iPad, a $9 USB-C to Apple Pencil adapter is available. 13
The Apple Pencil USB-C is best suited for iPad Pro, Air, and mini users, complete with the convenient hover feature, without the need to invest in the $129 second-generation model. Additionally, it’s a cost-effective solution for 10th-generation iPad owners who do not want to deal with the adapter required to use their existing first-generation Apple Pencil. 14
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SONY’S ACCESS CONTROLLER FOR THE PLAYSTATION AIMS TO MAKE GAMING EASIER FOR PEOPLE WITH DISABILITIES 19
Paul Lane uses his mouth, cheek and chin to push buttons and guide his virtual car around the “Gran Turismo” racetrack on the PlayStation 5. It’s how he’s been playing for the past 23 years, after a car accident left him unable to use his fingers. Playing video games has long been a challenge for people with disabilities, chiefly because the standard controllers for the PlayStation, Xbox or Nintendo can be difficult, or even impossible, to maneuver for people with limited mobility. And losing the ability to play the games doesn’t just mean the loss of a favorite pastime, it can also exacerbate social isolation in a community already experiencing it at a far higher rate than the general population. As part of the gaming industry’s efforts to address the problem, Sony has developed the Access controller for the PlayStation, working with input from Lane and other accessibility consultants. Its the latest addition to the accessible-controller market, whose contributors range from Microsoft to startups and even hobbyists with 3D printers. “I was big into sports before my injury,” said Cesar Flores, 30, who uses a wheelchair since a car accident eight years ago and also consulted Sony on the controller. “I wrestled in high school, played football. I lifted a lot of weights, all these little things. And even though I can still train in certain ways, there are physical things that I can’t do anymore. And when I play video games, it reminds me that I’m still human. It reminds me that I’m still one of the guys.” Putting the traditional controller aside, Lane, 52, switches to the Access. It’s a round, customizable gadget that can rest on a table or wheelchair tray and can be configured in myriad ways, depending 20
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on what the user needs. That includes switching buttons and thumbsticks, programming special controls and pairing two controllers to be used as one. Lane’s “Gran Turismo” car zooms around a digital track as he guides it with the back of his hand on the controller. “I game kind of weird, so it’s comfortable for me to be able to use both of my hands when I game,” he said. “So I need to position the controllers away enough so that I can be able to to use them without clunking into each other. Being able to maneuver the controllers has been awesome, but also the fact that this controller can come out of the box and ready to work.” Lane and other gamers have been working with Sony since 2018 to help design the Access controller. The idea was to create something that could be configured to work for people with a broad range of needs, rather than focusing on any particular disability. “Show me a person with multiple sclerosis and I’ll show you a person who can be hard of hearing, I can show someone who has a visual impairment or a motor impairment,” said Mark Barlet, founder and executive director of the nonprofit AbleGamers. “So thinking on the label of a disability is not the approach to take. It’s about the experience that players need to bridge that gap between a game and a controller that’s not designed for their unique presentation in the world.” Barlet said his organization, which helped both Sony and Microsoft with their accessible controllers, has been advocating for gamers with disabilities for nearly two decades. With the advent of social media, gamers themselves 22
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have been able to amplify the message and address creators directly in forums that did not exist before. “The last five years I have seen the game accessibility movement go from indie studios working on some features to triple-A games being able to be played by people who identify as blind,” he said. “In five years, it’s been breathtaking.” Microsoft, in a statement, said it was encouraged by the positive reaction to its Xbox Adaptive controller when it was released in 2018 and that it is “heartening to see others in the industry apply a similar approach to include more players in their work through a focus on accessibility.” The Access controller will go on sale worldwide on Dec. 6 and cost $90 in the U.S. Alvin Daniel, a senior technical program manager at PlayStation, said the device was designed with three principles in mind to make it “broadly applicable” to as many players as possible. First, the player does not have to hold the controller to use it. It can lay flat on a table, wheelchair tray or be mounted on a tripod, for instance. It was important for it to fit on a wheelchair tray, since once something falls off the tray, it might be impossible for the player to pick it up without help. It also had to be durable for this same reason — so it would survive being run over by a wheelchair, for example. Second, it’s much easier to press the buttons than on a standard controller. It’s a kit, so it comes with button caps in different sizes, shapes and textures so people can experiment with reconfiguring it the way it works best for them. The third is the thumbsticks, which can also be configured depending on what works for the person using it. 25
Because it can be used with far less agility and strength than the standard PlayStation controller, the Access could also be a gamechanger for an emerging population: aging gamers suffering from arthritis and other limiting ailments. “The last time I checked, the average age of a gamers was in their forties,” Daniel said. “And I have every expectation, speaking for myself, that they’ll want to continue to game, as I’ll want to continue to game, because it’s entertainment for us.” After his accident, Lane stopped gaming for seven years. For someone who began playing video games as a young child on the Magnavox Odyssey — released in 1972 — “it was a void” in his life, he said. Starting again, even with the limitations of a standard game controller, felt like being reunited with a “long lost friend.” “Just the the social impact of gaming really changed my life. It gave me a a brighter disposition,” Lane said. He noted the social isolation that often results when people who were once able-bodied become disabled. “Everything changes,” he said. “And the more you take away from us, the more isolated we become. Having gaming and having an opportunity to game at a very high level, to be able to do it again, it is like a reunion, (like losing) a close companion and being able to reunite with that person again.” 26
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AMAZON WILL START TESTING DRONES THAT WILL DROP PRESCRIPTIONS ON YOUR DOORSTEP, LITERALLY 30
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Amazon will soon make prescription drugs fall from the sky when the e-commerce giant becomes the latest company to test drone deliveries for medications. The company said this week that customers in College Station, Texas, can now get prescriptions delivered by a drone within an hour of placing their order. The drone, programed to fly from a delivery center with a secure pharmacy, will travel to the customer’s address, descend to a height of about four meters — or 13 feet — and drop a padded package. Amazon says customers will be able to choose from more than 500 medications, a list that includes common treatments for conditions like the flu or pneumonia, but not controlled substances. The company’s Prime Air division began testing drone deliveries of common household items last December in College Station and Lockeford, California. Amazon spokesperson Jessica Bardoulas said the company has made thousands of deliveries since launching the service, and is expanding it to include prescriptions based in part on customer requests. Amazon Prime already delivers some medications from the company’s pharmacy inside of two days. But pharmacy Vice President John Love said that doesn’t help someone with an acute illness like the flu. “What we’re trying to do is figure out how can we bend the curve on speed,” he said. Amazon Pharmacy Chief Medical Officer Dr. Vin 33
Gupta says the U.S. health care system generally struggles with diagnosing and treating patients quickly for acute illnesses, something that was apparent throughout the COVID-19 pandemic. Narrowing the window between diagnosis and treating makes many treatments more effective, he said. Amazon is not the first company to explore prescription deliveries by drone. The drugstore chain CVS Health worked with UPS to test deliveries in 2019 in North Carolina but that program has ended, a CVS spokesman said. Intermountain Health started providing drone deliveries of prescriptions in 2021 in the Salt Lake City area and has been expanding the program, according to Daniel Duersch, supply chain director for the health care system. Intermountain is partnering with the logistics company Zipline to use drones that drop packages by parachute. Companies seeking to use drones for commercial purposes have faced hurdles from regulators who want to make sure things are operating safely. Amazon founder Jeff Bezos had predicted a decade ago that drones would be making deliveries by 2018. Even now, the e-commerce giant is only using the technology in two markets. Lisa Ellman, the executive director of the Commercial Drone Alliance, an industry group that counts Amazon as one of its members, said to date, regulatory approvals have been limited to specific geographic areas and “in terms of their scope and usefulness to companies.” 34
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That said, she noted regulators have also been issuing more approvals. Last month, the FAA gave the OK for Zipline and UPS to fly longerrange drones. Walmart has also been working to expand its own drone deliveries. Amazon says its drones will fly as high as 120 meters, or nearly 400 feet, before slowly descending when they reach the customer’s home. The done will check to make sure the delivery zone is clear of pets, children or any other obstructions before dropping the package on a delivery marker. The company said it hopes to expand the program to other markets, but it has no time frame for that. Amazon has been growing its presence in health care for a few years now. Aside from adding a pharmacy, it also spent nearly $4 billion to buy primary care provider One Medical. In August, the company added video telemedicine visits in all 50 states. 37


MAJOR SOLAR PANEL PLANT OPENS IN US AMID BACKDROP OF INDUSTRY WORRIES ABOUT LOW-PRICED ASIAN IMPORTS 40
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A South Korean company has begun production at a huge new solar panel factory in Georgia even as industry leaders say surging Asian imports could dampen efforts to make more solar components in the United States. Qcells, a unit of South Korea’s Hanwha Group, said that it can now turn out enough solar panels to generate 5.1 gigawatts of power yearly at a two-factory complex in the northwest Georgia city of Dalton. That’s almost 40% of U.S. solar panel capacity, according to figures from the Solar Energy Industries Association. Qcells’ opened its first factory in 2019 and an even larger plant in phases since, what the company describes as the largest solar investment in American history. “It’s another milestone as we as a company really strive to become a global leader and a U.S. leader in solar manufacturing,” said Scott Moskowitz, Qcells head of market strategy and public affairs. The company says its new plant is the first solar module factory in the U.S. to begin production since passage of President Joe Biden’s signature climate legislation. Qcells’ $208 million investment again shows how federal incentives are spurring a nationwide boom in renewable energy and electric vehicles. Industry jitters about a flood of cheap solar panels from overseas show how dependent on federal policy the solar industry remains. That’s a threat in part because former President Donald Trump, the frontrunner for the 2024 Republican nomination, is hostile to renewable energy. Qcells leaders say the new plant showcases more efficient equipment and processes, part of 43
a much larger investment intended to bring key steps in solar manufacturing to the U.S. A solar panel, or module, is assembled from solar cells most commonly made from wafers cut from ingots of polysilicon. Today, the company’s solar cells are imported from Asia. But 30 miles (50 kilometers) south of Dalton in Cartersville, Qcells is building a $2.3 billion complex to take polysilicon refined in Washington state and make ingots, wafers and solar cells — in addition to 3.3 gigawatts of solar modules. That plant is scheduled to open in phases starting next year. Currently, no silicon ingots or wafers are made in the U.S. But Biden’s Inflation Reduction Act, besides offering a extra tax credit on Americanmade solar equipment, lets manufacturers earn incentives for every unit of polysilicon they refine and every wafer, cell and module they make. For example, Qcells earns a tax credit of 7 cents per watt for every panel it makes in Dalton, or $34.30 for every 490-watt residential panel made. Even with that boost, solar industry leaders warn, factories will struggle to compete with a new spike in cheap Asian imports. They’re again urging federal officials to investigate whether solar panels are being dumped at unfairly low prices. Previous investigations have led to anti-dumping tariffs on panels made in China and Taiwan. U.S. officials shouldn’t regard the spike as a normal market fluctuation, said Mike Carr, executive director of the Solar Energy Manufacturers for America Coalition, a group that includes Qcells. He argues Chinese 44
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component makers are pushing out cheap modules from southeast Asian factories, tanking panel prices to ensure Chinese dominance and smother U.S. manufacturing. “This is likely to be the No. 1 new energy source in the 21st century,” Carr said. “It’s already cheaper than pretty much anything else to install. It is the path to meeting our climate goals. So I think it becomes a real national security kind of concern. The way OPEC is in oil markets, we don’t want to allow China to become that same controller of supply in solar.” Qcells sees current low prices as a “near-term challenge” in achieving economies of scale and serving a long-term market, Moskowitz said. Beyond trade policy, he said, requiring federal agencies to buy American-made products and promoting panels produced with fewer carbon emissions could bolster Qcells. Politics envelops the solar industry. Vice President Kamala Harris visited the plant earlier this year. At the state level, Republican Gov. Brian Kemp has wrestled with Democratic U.S. Sen. Jon Ossoff over political credit for electric vehicle and renewable energy investments flowing to Georgia. “Out of all the places Qcells could have gone, they chose to operate and expand here in Georgia because of our unrivaled assets and the competitive package we put together,” Kemp said in a statement. Ossoff and fellow Georgia Democratic Sen. Raphael Warnock note they authored the component incentives that benefit Qcells, emphasizing federal policy. 47
“Our state is emerging as the advanced energy capital of the nation, thanks to federal infrastructure and manufacturing policies that are benefiting Georgia more than any other state,” Ossoff said in a statement. Qcells, for its part, praises both state and federal assistance. “To build these markets up and to have them work, you need a whole government approach,” Moskowitz said. 48
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® ACTIVISION BLIZZARD ACQUISITION BOOSTING THE FUTURE OF GAMING 53
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Microsoft has completed its $68.7 billion acquisition of Activision Blizzard, the makers of iconic gaming franchises such as Call of Duty, World of Warcraft, and Candy Crush. This historic deal, initially blocked by the UK’s Competition and Markets Authority (CMA), represents a new era for the gaming industry and a further consolidation of tech giants. 55
THE MICROSOFT ACTIVISION BLIZZARD DEAL The merger between Microsoft and Activision Blizzard has been along-awaited, with the technology behemoth eventually taking control over Activision Blizzard for a recordbreaking $68.7 billion, marking it the most significant acquisition in video game history. With this takeover, Microsoft will now control illustrious game franchises like Call of Duty, Diablo, and World of Warcraft. This merger is an enormous boon for Xbox, particularly its Game Pass subscription service, and stands to augment its content library dramatically. It also offers Microsoft the possibility to make any Activision Blizzard titles Xbox exclusives which could prove a major blow for the PlayStation brand, although with certain pre-existing exclusivity deals respected. What’s perhaps most interesting about this, though, is that Microsoft CEO Satya Nadella has confirmed he’d “love” to get rid of console game exclusives on Xbox but blamed PS5 maker Sony for “defining the market and competition”. Originally, Microsoft’s acquisition met with a number of regulatory challenges. In the United Kingdom, the CMA cited concerns that Microsoft could potentially monopolize the cloud gaming market. The deal was revised to appease regulatory bodies, involving French video game publisher Ubisoft gaining the rights to distribute Activision’s games on consoles and PCs via the cloud. Finally, the CMA approved the revised deal, stating it would “preserve competitive prices” in the gaming industry. One of the significant points of contention has been the potential 56
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for Microsoft to monopolize the gaming industry. This concern isn’t unfounded. Microsoft had previously acquired Bethesda in 2021 for $7.5 billion and with Activision Blizzard now in its portfolio, it wields enormous influence over the gaming world and could change the fortune of small gaming studios and larger players, too. While it’s true that such acquisitions give Microsoft a competitive edge, we must consider its market share in relation to competitors. Microsoft’s president, Brad Smith, stated that Sony controls 70% of the global console market compared to Microsoft’s 30%, even after its series of high-profile acquisitions, suggesting that there’s nothing close to a 50/50 split between Xbox and PlayStation users. THE GAMING WARS The acquisition undoubtedly puts fuel to the fire of the ongoing console wars. Both Xbox and PlayStation may now be more incentivized to produce exclusive titles to outperform the other, which, while competitive, could limit consumer choices significantly. On the flip side, Microsoft has shown interest in expanding its reach in mobile gaming We only have to look at the recent announcement that the next Resident Evil title will also be available to play on iPhone 15 Pro and Pro Max devices to see how far we’ve come in terms of mobile gaming technology. With Activision Blizzard’s mobile titles like Candy Crush, Microsoft could also considerably strengthen its position in this sector and unlock new opportunities across a range of sectors. 61
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While Microsoft’s deep pockets can easily bear the brunt of the hefty $68.7 billion price tag, questions have been raised on whether this financial burden might trickle down to consumers in the form of increased subscription costs or game prices. While these are valid concerns, it’s worth noting that the industry at large has been grappling with the rising costs of game development, separate from this merger. Microsoft has already said that it does not plan to increase prices. “Game Pass prices will not increase as a result of the Merger, and certainly will not increase to a point that offsets the substantial benefits of Activision titles coming to Game Pass on a day and date basis,” the company wrote in a statement. “This is especially so given Game Pass will continue to be constrained by B2P [buy to play].” Arguments can be made for both sides as to whether the new deal is good or bad for the wider industry. On one hand, Microsoft’s considerable resources could enable better developments and richer content for Activision Blizzard’s franchises. Phil Spencer, the head of Xbox, has reassured gamers that the new arrangement will “unlock a world of possibilities for more ways to play.” On the other hand, the acquisition does raise legitimate concerns around market competition and consumer choice, despite regulatory clearances. Exclusive titles might restrict gamers to specific platforms, potentially limiting the openness that has characterized the gaming world for years, but with Microsoft unlikely to want to cause controversy, we expect that titles won’t 64
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be exclusive in the years ahead, aside from preexisting title agreements. In essence, the Microsoft-Activision Blizzard acquisition is a double-edged sword. It promises to bring more robust resources and better gaming experiences but also raises concerns about market monopolies and restricted consumer choices. The real impact of this merger will unfold over time, setting either a concerning precedent or a transformative milestone in the gaming industry. Either way, gamers can rest assured that there will be more amazing games and titles coming to a console and perhaps an iPhone - near you. 69
Whether you’re a casual gamer or a die-hard console loyalist, this deal is poised to affect your gaming experiences one way or another. As regulators tussle over market dynamics, all eyes will be on how this merger shapes the contours of an industry beloved by millions. 70
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MICROSOFT SPENT TWO YEARS TRYING TO BUY ACTIVISION BLIZZARD. FOR XBOX CEO, THAT WAS THE EASY PART After two years co-piloting the biggest acquisition in video game history past an onslaught of challenges, Xbox CEO Phil Spencer now moves on to his next quest: making Microsoft’s takeover of Activision Blizzard worth the hassle. Microsoft, which owns the Xbox gaming system, closed its $69 billion deal to buy game-maker Activision Blizzard after fending off global opposition from antitrust regulators and rivals. It marks a career-defining moment for Spencer, who first joined Microsoft as an intern in 1988 74
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and has helmed Xbox since 2014. After years of lagging behind rival Sony’s PlayStation, acquiring Activision’s collection of popular game titles gives Microsoft a rare chance to catch up. “His job really just starts today,” said analyst Gil Luria, technology strategist at D.A. Davidson, after the deal’s closure. “All he’s been doing is preparing for today where he actually gets to integrate the business.” And it marks the end of an era for Activision Blizzard CEO Bobby Kotick, who’s led the Southern California maker of Call of Duty and other blockbuster franchises since 1991 after helping to buy it from bankruptcy. Kotick said he’s assisting with the transition until the end of the year. Activision Blizzard was still reeling from worker protests, lawsuits and government investigations over allegations of workplace harassment against women and unequal pay when Microsoft privately reached out about buying the company in 2021. When the companies announced a planned merger in January 2022, Microsoft CEO Satya Nadella made clear it would be “critical for Activision Blizzard to drive forward” on its commitments to improve its workplace culture. That was just the start of Microsoft’s challenges in bringing home the deal. After negotiations with Spencer faltered, top rival Sony brought its concerns about losing access to the Call of Duty franchise to regulators around the world. The strongest opposition came from U.S. antitrust enforcers emboldened by President Joe Biden’s administration to take a tougher look at big tech deals, as well as their counterparts in 77
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the United Kingdom who finally relented in approving the deal only after Microsoft agreed to make concessions. “Microsoft didn’t have a choice. If they wanted to be long-term competitive with Sony and the PlayStation platform, they need to have a much more robust content offering,” Luria said. But, “in retrospect, they should have read the writing on the wall in terms of the difficulty of closing the deal,” Luria said. “They needed to do the deal to stay competitive, but knowing what they know now, they might have done it differently.” A key moment came in June, when a federal judge weighed the U.S. Federal Trade Commission’s attempt to block the merger while it awaited further review. In an unusual move for a CEO that telegraphed the deal’s importance, Spencer spent the better part of two weeks at the defendant table of a San Francisco courtroom conferring with Microsoft’s lawyers. The judge eventually dismissed the FTC’s request, though the agency is still seeking to unwind the deal. Microsoft’s success in integrating Activision’s business is “not guaranteed, especially as its track record with acquisitions has been a mixed bag,” said George Jijiashvili, senior principal analyst at research and advisory firm Omdia. Last year, Microsoft spent $7.5 billion to acquire ZeniMax Media, the parent company of video game publisher Bethesda Softworks, maker of Elder Scrolls and Fallout. Microsoft’s two key game launches this year from its Bethesda merger, Redfall and Starfield, have “been met with mixed reactions at best,” 80
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Jijiashvili said. “However, with globally popular game franchises such as Call of Duty now under its wing, the company is strategically much better positioned.” Another challenge for Microsoft will be overcoming the workforce challenges that dogged Activision before the takeover. As of late last year, Activision Blizzard had 13,000 employees, about 72% in North America, according to a regulatory filing. Microsoft has already pledged it will stay neutral if the nearly 10,000 workers in the U.S. and Canada seek to organize into a labor union, part of a 2022 agreement with the Communications Workers of America meant to address U.S. political concerns about the merger’s effects. “It is a new day for workers at Activision Blizzard,” said CWA President Claude Cummings Jr. in a statement. “Over two years ago, workers at Activision Blizzard’s studios captured the country’s attention through walkouts and other protests over discrimination, sexual harassment, pay inequity, and other issues they were facing on the job,” Cummings Jr. said. “Their efforts to form unions were met with illegal retaliation and attempts to delay and block union elections. Now these workers are free to join our union through a fair process, without interference from management.” In a welcome email to Activision employees, Spencer said he wanted to “reiterate that we hold ourselves to a high bar in delivering the most inclusive and welcoming experiences for players, creators, and employees.” 83


EUROPE IS LOOKING TO FIGHT THE FLOOD OF CHINESE ELECTRIC VEHICLES. BUT EUROPEANS LOVE THEM When Laima Springe-Janssen was looking to replace her French-made gasoline-powered SUV with an electric car, she considered models from Volvo and Nissan. The Volvo extras she wanted would have busted her budget, while the Nissan lacked the “wow factor.” The Copenhagen, Denmark, resident ended up buying a compact SUV from China’s BYD. “I really, really love the car,” Springe-Janssen said. For the equivalent of about $50,000, the Atto 3 SUV came with “all these goodies” 86
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like a 360-degree dash cam, two years of free charging and an extra set of winter tires. Her husband likes it so much he’s considering buying another BYD to replace their other car, from Volkswagen’s Skoda brand. “I’m sorry, Europe. Go home,” she said. “China has a better offer.” Her enthusiasm underscores how Chinese automakers are winning over drivers as they make major inroads into Europe’s electric vehicle market, challenging long-established homegrown brands in an industry that’s key to the continent’s green energy transition. The competitive threat has spurred the European Union to launch an investigation into Beijing’s support for its EV industry. That adds to tech-related tensions between the West and China, which is one of Europe’s biggest trading partners and the world’s biggest auto market. China’s EV onslaught, along with massive U.S. clean energy funding that has drawn investment away from Europe, shows how the 27-nation bloc is caught in the middle of the global race for green technology. Chinese EV makers are drawn to Europe because auto import tariffs are just 10% versus 27.5% in the U.S., independent auto analyst Matthias Schmidt said. Europe also has the world’s second-biggest EV battery market after China. Nevermind the geopolitics. Climate-conscious car buyers in Europe who are grappling with an increased cost of living rave about how Chinese EVs are affordable yet packed with features and stylish design. Concerns about the threat to local carmakers and jobs just aren’t a factor for them. 89
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British retiree John Kirkwood replaced his Volkswagen Passat three years ago with an MG5 station wagon because the 30,000-pound ($36,000) price tag “wiped the floor” with its nearest rival — a Kia that cost thousands more. “It’s nice. It’s quiet, it’s refined” and very quick, Kirkwood said, adding that he had few qualms about British brand MG’s Chinese ownership. MG — owned by SAIC Motor, China’s biggest automaker — is the largest Chinese EV player in Europe. BYD, backed by billionaire investor Warren Buffett, is growing fast. There’s also Geely, which owns Sweden’s Volvo and a stable of EV brands including Polestar, Lynk & Co. and British sportscar maker Lotus. Behind them are a slew of startups, like NIO and Xpeng. Their combined sales are a sliver of the 9.2 million vehicles sold in Europe every year, but they have been gobbling up a piece of the smaller EV market at an astonishing pace. Chinese automakers account for only about 3% of Western Europe’s overall car market but 8.4% of the EV market, up from 6.2% last year and almost nothing in 2019, according to Schmidt’s data. The surge is stoking fears about Europe’s automotive industry, an economic powerhouse centered in France and Germany that employs millions of workers, staying competitive as it transitions from fossil fuels to electricity. European Commission President Ursula von der Leyen says “global markets are now flooded with cheaper Chinese electric cars,” with prices “kept artificially low by huge state subsidies.” 92
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The commission, the EU’s executive arm, formally opened its investigation this month, saying it would take up to 13 months and could result in import duties. Beijing voiced “strong dissatisfaction” and vowed to “firmly safeguard” Chinese companies’ rights. The Chinese Commerce Ministry said the EU probe is based on “subjective assumptions,” lacks enough evidence and goes against World Trade Organization rules. Complicating matters, global automakers build vehicles in China and have exported 164,300 this year to Europe, including BMW’s iX3 SUV made in northeastern Shenyang and Tesla’s Model 3 and Y produced in Shanghai, according to Schmidt’s data. That means one in every five EVs sold in Europe is a Chinese import. A commission spokesman said the investigation is looking at China’s EV exports “regardless of the brand.” Stellantis, which owns French auto brands Peugeot and Citroen as well as Italy’s Alfa Romeo and Fiat, is vowing to fight back against China’s EVs. In a recent earnings call, CEO Carlos Tavares said the world’s No. 3 automaker is responding to a “Chinese invasion in a European market” with a new Citroen e-C3 cheap compact. Stellantis faces added pressure from a union strike in the U.S. over EV battery plant jobs. Executives at Shanghai-based Aiways, a startup headed by Volvo’s former China sales chief, rejected accusations that Beijing provides a helping hand. 96
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“We’re not selling inside China, we’re not being subsidized in China,” said Alexander Klose, vice president of overseas operations. “Yes, we obviously have some subsidies for putting a plant somewhere, which is, I think, what everybody has in Europe.” Aiways is focusing on Europe and Israel instead of China, where the auto market is so crowded that “we don’t think it makes sense to compete right now,” Klose said. The EU should be working on getting to a green future “rather than keeping competition out,” he said. One reason Chinese companies can offer high-quality cars at affordable prices stems from the rules to enter the Chinese market. Global automakers had to team up with local companies, providing them crucial automaking knowhow. “They were kind of like the sous chefs to the Western companies,” said Schmidt, the auto analyst. “The situation now is those sous chefs are opening up their own restaurants and, in some cases, better than their masters’ restaurants.” Also helping level the playing field is batterypowered motors being less complex to build than internal combustion engines and requiring fewer workers. That’s a problem for European brands with big workforces that will need years to revamp operations, Schmidt said. Chinese EV makers, meanwhile, are trying to stand out in a crowded field. SUV maker Great Wall Motors’ EV sub-brand Ora is targeting women, with cars it says are designed for their body sizes and daily needs. 99
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The Ora Funky Cat, with throwback round headlights, an exclamation mark on its hood badge, and a 32,000-pound ($38,600) price tag, appealed to British scriptwriter Justin Nicholls, who bought one for his wife. “The looks are awesome, and the tech great. It’s so easy to drive, yet feels like a lot larger car and feels premium,” he said. It also appealed to Nicholls because it’s different from the Volkswagens, Peugeots and BMWs common on British roads: “I think it is a lot more quirky than European cars.” 101


US REGULATORS INVESTIGATE GM’S CRUISE DIVISION OVER INCIDENTS INVOLVING PEDESTRIANS IN ROADWAYS U.S. regulators are investigating General Motors’ Cruise autonomous vehicle division after receiving reports of incidents where vehicles may not have used proper caution around pedestrians in roadways. The National Highway Traffic Safety Administration said that the reports involve automated driving system equipped vehicles encroaching on pedestrians present in or 104
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entering roadways, including crosswalks. This could raise the risk of a vehicle striking a pedestrian, which could result in severe injury or death, according to the NHTSA. The NHTSA’s Office of Defects Investigation said that it’s received two reports involving pedestrian injuries from Cruise vehicles. It’s also identified two additional incidents from videos posted to public websites. The office said the total number of relevant pedestrian incidents is unknown. It opened an investigation this week. “Cruise’s safety record over 5 million miles continues to outperform comparable human drivers at a time when pedestrian injuries and deaths are at an all-time high,” Cruise spokesperson Hannah Lindow said in a prepared statement. “Cruise communicates regularly with NHTSA and has consistently cooperated with each of NHTSA’s requests for information –– whether associated with an investigation or not –– and we plan to continue doing so.” The ODI said its investigation is being opened to help determine the scope and severity of the potential problem, including causal factors that may relate to ADS driving policies and performance around pedestrians, and to fully assess the potential safety risks. In August General Motors’ Cruise unit agreed to cut its fleet of San Francisco robotaxis in half as authorities investigated two crashes in the city. The state Department of Motor Vehicles asked for the reduction at the time after a Cruise vehicle without a human driver collided with an unspecified emergency vehicle. 108
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WHAT GOOGLE’S ANTITRUST TRIAL MEANS FOR YOUR SEARCH HABITS If government regulators prevail against Google in the biggest U.S. antitrust trial in a quarter century, it’s likely to unleash drastic changes that will undermine the dominance of a search engine that defines the internet for billions of people. As the 10-week trial probing Google’s business practices nears its midway point, it’s still too early to tell if U.S. District Judge Amit Mehta will side with the Justice Department and try to handcuff one of the world’s most dominant tech companies. 112
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If Mehta rules that Google has been running an illegal monopoly in search, the punishment could open up new online avenues for consumers and businesses to explore in pursuit of information, entertainment and commerce. “The judge can compel Google to open the floodgates so more startups and third-party competitors can put greater competitive pressure on Google, which will create higher quality online services,” said Luther Lowe, senior vice president of public policy at Yelp. The online business review site has been one of Google’s harshest critics while spending more than a decade railing against a strategy that favors its own services in search results. Google’s search engine earned its huge market share by almost instantaneously presenting people with helpful information culled from the billions of websites that have been indexed since former Stanford University graduate students Larry Page and Sergey Brin developed the technology during the late 1990s. In addition to its technological wizardry, Google also pays billions of dollars each year to ensure its search engine is the default choice for answering queries entered in the world’s most popular smartphones and web browsers. These agreements don’t preclude users from switching to a different search engine in their settings, but it’s a tedious process that few people bother to navigate. This reality is why Google is willing to pay so much for the privileged position, according to the Justice Department. Google’s payments for preeminent search placement — including an estimated $15 billion to $20 billion per year to Apple alone — 114
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are at the head of the Justice Department’s case, making it probable the judge would prohibit them if he rules against Google. Should that happen, experts believe the most likely remedy in the U.S. would be a requirement for smartphones and web browsers to display a palette of different search engines during the setup process. That’s something already being done in Europe, where all indications, so far, are that most people are still opting for Google. That could be because they believe Google truly is the best search engine — as Google argues in their defense — or they just trust the brand more than rival options such as Microsoft’s Bing or the privacy-focused DuckDuckGo. Microsoft CEO Satya Nadella asserted Google has an almost hypnotic hold on users while testifying earlier this month during the trial. “You get up in the morning, you brush your teeth and you search on Google,” Nadella said. He then added that the only way to break the habit is by changing the default choice. As long as a ruling doesn’t exclude Google’s rivals from paying to be the automatic search engine on smartphones and web browsers, Microsoft could buy the default position for Bing — an opportunity Nadella indicated he would seize. “There’s defaults — the only thing that matter in terms of changing search behavior,” Nadella testified. Florian Schaub, associate professor of information at the University of Michigan, believes the fairest outcome in the trial would an across-the-board ban on all default agreements between two companies. Image: Steve Marcus 117
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“The current environment is being shaped by an architecture that’s designed by the big companies that control the space,” Schaub said. “What the government can do is inject some neutralism into this and give consumers some actual choices. If people still choose to use Google, that is at least a consumer choice, which would better than having people stick to a default because they are conditioned to that default.” In his testimony during the trial, Apple executive Eddy Cue said the company has embraced Google as the preferred search engine on the iPhone and other products because it provides the best experience for its customers. That stance has raised speculation that if Apple is blocked from using Google as the default search engine on the iPhone, it might flex its muscle as the world’s richest company to develop its own search technology. However, a blanket ban on default search agreements that have been highly profitable for Apple and other companies such as wireless provider Verizon could trigger unintended consequences, such as raising prices on other popular products. “If Google is no longer paying big bucks to Apple and other companies, they might raise the prices for their devices,” said David Olson, an associate professor for the Boston College Law School who is following the antitrust trial. “I don’t think they will be big, but we could see some price increases because Google has essentially been subsidizing the cost of devices like the iPhone.” 119
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Another offshoot of a ban on default search agreements is that Google still could have a dominant advantage in search if people continue to proactively choose it and the company would have billions of dollars more to spend in other areas that it once devoted to deals that it really didn’t need at all. “Google must think they getting a great benefit from those default agreements, but maybe they’re really not worth that much,” Olson said. “Maybe their cost/benefit analysis is off and they will wind up more money and just as much dominance. That would be ironic.” Although the trial is focused on Google’s search engine, a government victory could have more sweeping consequences across the technology industry if Mehta decided all default settings are anti-competitive and outlaws all defaults in the settings. “If one of the outcomes of the trial is that there needs to be more neutral choices, it wouldn’t just affect Google on Android phones, it could also affect Apple and the iPhone,” Schaub said. “Does it mean Google phones might have to offer (Apple’s virtual assistant) Siri as an alternative to the Google Assistant? Or would Apple devices have to offer Google Assistant?” A decision like that would open a crack in the digital wall that Apple has built around the iPhone to give its own software and certain pet products such as Siri exclusive access to the device’s more than 1 billion users, setting the stage for another potential legal battle. 121


AMAZON, TRIPADVISOR AND OTHER COMPANIES TEAM UP TO BATTLE FAKE REVIEWS WHILE FTC SEEKS TO BAN THEM Some of the most used platforms for travel and online shopping said they’re going to team up to battle fake reviews. Amazon, reviews site Glassdoor and Trustpilot as well as travel companies Expedia Group, Booking.com and Tripadvisor said in an announcement they’re launching a coalition that aims to protect access to “trustworthy consumer reviews” worldwide. 124
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The companies said the members of the group, which will be called Coalition for Trusted Reviews, will look for best practices for hosting online reviews and share methods on how to detect fake ones. That will include developing standards for what constitutes a fake review and sharing information about how bad actors operate. Phony reviews have long plagued online marketplaces despite their efforts to eradicate it. Much of the problem is fueled by brokers who solicit fake customer reviews through social media platforms, encrypted messaging apps and other channels in exchange for money, free items or other benefits. Brokers can solicit positive reviews to boost sales for businesses or sellers. They can also also post negative reviews for competitors in order to tank their sales. Last month, Amazon said two review brokers in China were sentenced to two-and-a-half years in prison and three years of probation after using messaging apps to advertise and sell fake reviews to Amazon selling accounts. The company has filed a flurry of other lawsuits in the past year against operators that it says were doing similar things. Last year, it also sued the administrators of more than 10,000 Facebook groups that it alleged were coordinating bogus reviews in exchange for money or free products. Facebook groups trading reviews for Google and Trustpilot, which allows users to leave feedback for businesses, were also discovered earlier this year by the British consumer watchdog group “Which?” Federal regulators have also been aiming to crack down on bogus reviews aiming to 127
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deceive consumers. In June, the Federal Trade Commission proposed a new rule that, among other things, would prohibit businesses from selling or obtaining fake reviews, suppressing honest reviews and selling fake social media engagement. Businesses would also be prohibited from creating or controlling a website that claims to provide independent opinions about its products and employing other practices like “review hijacking,” which makes reviews for one product appear like they were written for different ones. If the proposal is adopted, violators can be face penalties. Becky Foley, Tripadvisor’s vice president for Trust & Safety, said in a statement included in the news release that combating operators behind fake reviews will be “an immediate area of focus” for the coalition. “These actors often operate outside of jurisdictions with a legal framework to shut down fraudulent activity, making robust cooperation even more important,” Foley said. The companies said the coalition is a result conversations that came out of a “Fake Reviews” conference that was organized by Tripadvisor and held last year in San Francisco. They said they will meet in early December at a second conference that will be organized by Amazon and held in Brussels. 131
LINKEDIN CUTS MORE THAN 600 WORKERS, ABOUT 3% OF WORKFORCE 132
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LinkedIn said this week it is laying off hundreds of employees amounting to about 3% of the social media company’s workforce. The Microsoft-owned career network is cutting about 668 roles across its engineering, product, talent and finance teams. “Talent changes are a difficult, but necessary and regular part of managing our business,” the company said in a statement. The job cuts follow another more than 700 layoffs LinkedIn announced in May, as well as thousands more this year from parent company Microsoft, which has owned the professionalnetworking service since buying it for $26 billion in 2016. LinkedIn keeps growing and said its annual revenue surpassed $15 billion for the first time in the fiscal year that ended in June. The service, 135
headquartered in Sunnyvale, California, makes money from advertisements on the platform as well as from users who pay to subscribe for premium features. LinkedIn reports having about 19,500 employees. Redmond, Washington-based Microsoft as of July had a global workforce of 221,000 full-time employees, with more than half of those in the U.S. It’s adding thousands more as part of its $69 billion acquisition of California video game-maker Activision Blizzard. As of late last year, Activision Blizzard reported having 13,000 employees. 136
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IN ‘ANATOMY OF A FALL,’ A SHARP COURTROOM DRAMA THAT WILL END RELATIONSHIPS 139
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Of all the ways that a relationship can end, a fundamental disagreement about a work of art is in some ways extremely silly. And yet, a film or a book exposing an irreparable rift in a love that perhaps wasn’t as compatible, as symbiotic or as caring as one might have thought is also, somehow, as good a reason as any. Maybe it will even, eventually, provide a funny story. Another, more excruciating, way for a relationship to end is with one party falling off the roof of a house to their death, followed by a humiliating public trial to determine the fault or innocence of the other, as happens in Justine Triet’s Palme d’Or-winning “Anatomy of a Fall.” And just like “The Corrections” before it, it seems that “Anatomy of a Fall” might be the new litmus test for modern relationships. See it with a romantic partner at your own risk. But, from my perch, this is one that’s worth the debate(s) it provokes. Sandra Hüller, the German actor known for “Toni Erdmann” and, soon, “ The Zone of Interest,” is Sandra, a writer living in a chalet in the French Alps with her husband, Samuel (Samuel Theis), and 11-year-old son, Daniel (Milo Machado Graner). Triet thrusts the audience into a tense and stressful atmosphere, introducing us to Sandra in the midst of an interview with a grad student, a woman, which will become significant later. Sandra is a little prickly and sipping a glass of red wine while deflecting questions back at her interviewer. It is hard to focus on what they’re saying, however, as an instrumental version of 50 Cent’s “P.I.M.P.” blares through the household on a deafening, constant and maddening loop. Samuel’s choice, apparently. The student leaves, Sandra waves goodbye from a balcony, 50 Cent still playing, glass of red still in hand and Daniel, who is blind, heads out for 141
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a walk with his dog. He returns to find his father on the ground outside, dead and bleeding out. Sandra’s lawyer, Vincent (Swann Arlaud, a calming presence), later analyzes the fall trajectory and finds the cause of death “inconclusive.” Sandra Hüller’s burdens of proof, in ‘Anatomy of a Fall’ and ‘Zone of Interest’ “Stop,” Sandra says. “I did not kill him.” “That’s not the point,” Vincent responds. It’s one brief exchange that could sum up the 150-minute film, which is a smartly constructed and wholly engaging whodunit, courtroom thriller, marriage drama and, at some points, satire. This is not really a tearjerker, but a visceral dismantling of a life that’s either happening in the wake of a tragedy or a murder. Either way, it’s uncomfortable to watch Samuel’s sharp, merciless advocate (Antoine Reinartz) grill Sandra about their marriage troubles and why, in his mind, that makes her a likely suspect. She’s also accused of doing it for material for her books. Hüller makes the audience squirm along with her as she plays the tricky game of knowing when to take the insults and when to push back (without seeming “unlikable,” of course), and she’s doing this all in two languages that aren’t the character’s own (French and English). It’s exhausting, illuminating and triggering to be reminded of the internalized misogyny that still exists and even thrives in marriages that look evolved and equal on paper. But it’s hard to fight back when parties can hide their own culpability behind therapy-speak. For Daniel, the trial and his part in it plays out like a vicious divorce proceeding, in which his parents’ characters are dissected and annihilated. He 143
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ANATOMY OF A FALL - Official Trailer 145
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bears witness to their fights, their infidelities, their insecurities and all manner of speculation made by prosecutors, therapists and judges about the private matters of this couple, the complexities of which are far too great for a child burdened with the loss of one parent and the possible imprisonment of another. And, of course, Samuel is unable to speak for himself — not really at least. His therapist has some insights and assumptions, his lawyer has many, and there is one brutal argument that we’re all privy too, since he himself recorded it in secret to inspire his own writings. For some audiences, this might be the biggest and most egregious injustice of all, coating everything with an uncertainty that will never be resolved. At a certain point, you might even forget that it’s a murder trial you’re watching. “Anatomy of a Fall” may not be a film with many concrete answers, ultimately, but the truths it uncovers are irrefutable. “Anatomy of a Fall,” a Neon release in theaters, is rated R by the Motion Picture Association for “sexual references, violent images and some language.” Running time: 150 minutes. Four stars out of four. 147
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SAG-AFTRA PRESIDENT FRAN DRESCHER REACTS TO HOLLYWOOD STUDIOS BREAKING OFF NEGOTIATIONS 158
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Fran Drescher has steered the actors guild through its monthslong strike. On the heels of Hollywood studios abruptly breaking off talks with the Screen Actors Guild-American Federation of Television and Radio Artists this week, the actor and union president says she’s baffled and disappointed. The Alliance of Motion Picture and Television Producers announced last week that they had suspended contract negotiations, saying the gap between the two sides was too great to make continuing worth it and characterizing their offer as good as the one that recently ended the writers strike. Drescher told in an interview that she did not understand why negotiations collapsed but that her union’s resolve has not weakened. The interview has been edited for clarity and brevity. Q: CAN YOU TALK ABOUT WHAT HAPPENED IN YOUR NEGOTIATIONS WITH THE AMPTP? DRESCHER: They had given us a proposal package. We worked for like 36 hours on it. We brought it back to them. We walked them through it and they left and then called a few hours later and said, “We’re breaking negotiations.” So it’s not only baffling but wholly disappointing and counterproductive. I’ve never really met people that actually don’t understand what negotiations mean. Why are you walking away from the table? To what end do you hope that that will accomplish anything? And actually, my members are more pumped up than ever. They feel so insulted by this, so degraded by this and dishonored by this that it’s 160
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like, “Fran, do not cave. Remain strong. Hold onto your resolve because this can’t be for nothing.” Q: CAN YOU TALK ABOUT THE MOOD OF THE CONVERSATIONS BEFORE THEY BROKE OFF? WAS THERE A SENSE THAT TALKS WOULD BE SMOOTHER AFTER THE STUDIOS REACHED A DEAL WITH THE WRITERS GUILD OF AMERICA? DRESCHER: With the writers guild also, they broke negotiations with that too. So now that a contract has been agreed upon, everybody’s all warm and fuzzy. But at the time, I think it was very contentious. They don’t like to give away ice in winter. So I’ve never really dealt with this kind of affront, of indignation and a need to get their own way. I think that they’re very used to getting their own way. I think that the idea that we want to go into a pocket to compensate for the lack of income that we cannot get for our working members in a streaming model is just so repugnant to them. And they just feel like, “Who are we to want to get compensated the way we used to be? Who are we to think that we deserve to make an honest wage that meets inflation? Who are we to challenge them in any way? We should be so lucky to get whatever they want because they’re the bosses.” And I keep pointing out to them that that kind of business practice is unsustainable nowadays. It was maybe something that people bought into in the 20th century. But that “dog eat dog, the bottom line is the bottom line,” it just doesn’t pan out. And we can’t think that way anymore. You can’t go into a whole new business and not question how this is going to impact the 162
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foundational contributors to your business. And that’s exactly what they did. And now they’re like annoyed at us for pointing out the problem. It’s really like an alternate universe. I can’t even believe it. And I keep trying to put it into a global context that they have a responsibility to workers. They’re leaders in the industry. They should set the example for industries around the world. This is their opportunity as well to raise the bar on how employers deal with workers. How they thank them, how they include them, how they treat them like people. Q: THIS WILL OFFICIALLY BE THE LONGEST STRIKE IN YOUR GUILD’S HISTORY NEXT WEEK. WHAT ARE YOUR THOUGHTS ON HOW WE GOT HERE? DRESCHER: Well, I think it’s indicative of the fact that they stopped talking to us back on July 12 and didn’t come back until less than 10 days ago. You know, we’ve only met with them a couple of times. That was what they were available for. Then this past week, it was Monday and a half a day on Wednesday. And then “Bye bye.” I don’t even know what they’re thinking. But I did say to them, “With all due respect, we have been waiting for you to come back.” We wanted to avert a strike. We extended an unprecedented extension and we called them in the eleventh hour. ... They don’t really want to negotiate. They just want us to like what they want us to like. They don’t want us to have a mind. They don’t want us to have a thought. They don’t want us to have feelings or complain that we can’t make a living and we can’t support our families and we’re having problems paying the rent. 165
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They don’t want to hear about it because they keep giving us this huge inflated number of how much they’re spending on production and how much they’re paying out to our union in salary. But it’s all divided up amongst so many thousands of people that it doesn’t add up to anything except for our highest paying earners, which I have zero problem with. And we’re fighting for them as well with AI. They’re very concerned about their likeness, their essence of being. The thing that makes them a star is going to be ripped off, going to be turned into something that’s hardly even recognizable. Q: SO, WHAT NOW? DRESCHER: Well, they called and said, “We’re walking away. We’re breaking negotiations.” Now, we’re in the midst of a serious negotiating committee meeting. Everybody went out on the picket lines. The resolve is very strong. So I think that they think that we’re going to cower, but that’s never going to happen because this is a crossroads and we must stay on course. 167
MUSK’S X TESTS $1 FEE FOR NEW USERS IN THE PHILIPPINES AND NEW ZEALAND IN BID TO TARGET SPAM Elon Musk’s social media platform X has begun charging a $1 fee to new users in the Philippines and New Zealand, in a test designed to cut down on the spam and fake accounts flourishing on the site formerly known as Twitter. The company said that it has started trying out the annual subscription method for new and unverified accounts. The program, dubbed Not a Bot, won’t apply to existing users. 168
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It’s not clear why it only applies to New Zealand and the Philippines or why those countries were chosen. “This new test was developed to bolster our already successful efforts to reduce spam, manipulation of our platform and bot activity, while balancing platform accessibility with the small fee amount,” the X support account tweeted. “It is not a profit driver.” Since Musk bought X a year ago, he has introduced a slew of changes such as renaming the platform and gutting its workforce — including its content moderation team. Outside watchdog groups say the changes have allowed misinformation to thrive on the platform, a problem that exploded after the Israel-Hamas war erupted. Musk previously turned to premium subscriptions as a tactic to boost the financially struggling platform’s revenue. One of his first product moves was to shake up the site’s blue check verification system by launching a service granting checks to anyone willing to pay $8 a month. A flood of impostor accounts forced the service’s temporary suspension days after launch. Under the test, new subscribers will get access to basic functions like posting content, liking or bookmarking posts, and reposting, quoting or replying to posts from other accounts. The platform said new users who don’t subscribe will only be able to read posts, watch videos and follow other accounts. 172
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CHINESE SEARCH ENGINE COMPANY BAIDU UNVEILS ERNIE 4.0 AI MODEL, CLAIMS THAT IT RIVALS GPT-4 Chinese search engine and artificial intelligence firm Baidu this week unveiled a new version of its artificial intelligence model, Ernie 4.0, claiming that it rivals models such as GPT-4 in the U.S. Baidu’s CEO Robin Li demonstrated Ernie 4.0 at the company’s annual Baidu World conference in Beijing. He said the model has achieved comprehension, reasoning, memory and generation, which uses algorithms to produce and create new content. 175
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Li said that Ernie 4.0 was able to understand complex questions and instructions and apply reasoning and logic to generate answers to questions. “It is not inferior in any aspect to GPT-4,” Li said, stating that the latest model was “significantly improved” compared to its original Ernie Bot model. In a live demonstration, Li prompted Ernie 4.0 to generate advertising materials including advertising posters and a marketing video. He also asked Ernie 4.0 to come up with a martial arts novel complete with characters with various personalities. Baidu is a frontrunner among a slew of Chinese companies racing to come up with artificial intelligence models, after OpenAI’s ChatGPT took the world by storm last year. Beijing sees artificial intelligence as a key industry to rival the United States and aims to become a global leader by 2030. 177
Beijing-based Baidu started off as a search engine firm and over the past decade has invested heavily in artificial intelligence technology such as autonomous driving and more recently, generative AI to stay competitive. The company’s Hong Kong-listed shares fell 1.7% following the announcement. Baidu introduced its Ernie Bot in March. In August, it made the model available to the public. Ernie 4.0 is not yet available to the general public but some people have been invited to try it. Li said Baidu plans to incorporate artificial intelligence technology into its search engine, maps and cloud drive services, and its business intelligence offerings for enterprise customers. He did not give a timetable for that. The technology can transform how certain products work. Baidu’s search engine might generate a customized answer to a query instead of just providing a list of results and links. China has recently sought to regulate the generative AI industry, requiring companies to carry out security reviews and obtain approvals before publicly launching their products. Companies that provide such AI services must also comply with government requests for technology and data. The U.S. does not have such regulations. 178
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