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US looks into Google edge on Android: report
by Staff Writers
San Francisco (AFP) April 27, 2016


Facebook profits surge as user base expands
San Francisco (AFP) April 27, 2016 - Facebook on Wednesday reported a powerful surge in profits as the user base of leading social network continued to climb.

Profit in the first quarter tripled from a year ago to $1.5 billion as revenue jumped to $5.4 billion from $3.5 billion in the same period a year earlier.

"We had a great start to the year," said Facebook co-founder and chief executive Mark Zuckerberg.

The key metric of monthly active users rose to 1.65 billion, up 15 percent from a year ago. And those using Facebook daily rose 16 percent to 1.09 billion, with strong gains in numbers of people using mobile devices.

The report shows Facebook is using its dominant position in social media to boost advertising revenues as it connects more people with new services such as live video.

Facebook also announced that its board of directors has approved a plan to create a non-voting class of stock intended to raise capital while leaving Zuckerberg in control of the company's vision and direction.

Shareholders will get to vote on the proposal at an annual stockholders meeting on June 20, according to Facebook.

The move aims to allow Zuckerberg to remain in charge even as he gives away the bulk of his holdings to charity as he announced last year with his wife.

"The board's proposal will allow Facebook to maintain and improve upon the structure that has served shareholders well, while also enabling Mark to pursue his important goals through the Chan Zuckerberg Initiative," a Facebook statement said.

Facebook shares were up more than nine percent to $119 in after-market trades that followed release of the earnings report.

- New revenue streams -

Revenue that the California-based social network took in from adversing alone soared 57 percent in the quarter.

"Facebook just keeps getting stronger and stronger every quarter. Its share of digital advertising is continuing to grow, and it is steadily adding new revenue streams," said eMarketer analyst Debra Aho Williamson.

"Two years after Facebook rolled out premium ads in the news feed, we see advertisers moving past the experimentation stage and beginning to craft advertising specifically for Facebook -- rather than simply repurposing TV spots."

The market tracker forecast that Facebook would capture $10.2 billion in display ad revenue in the United States this year to claim 31.2 percent of the money spent.

Mobile was expected to account for the bulk of Facebook's digital ad revenue in the US this year, with Instagram and video formats aimed at smartphones or tablets driving growth.

Facebook has been cautiously optimistic about the potential for money-making advertising on its popular services such as Instagram, Messenger and Live real-time video streaming.

"As we expected, Facebook is putting a lot of emphasis on Messenger this year, and the announcements at f8 earlier this month show that it is on a path toward monetizing that service," Williamson said, referring to the social network's annual developers conference.

"Instagram remains popular with advertisers, and the ad rollout appears to be going smoothly among Instagram users."

Facebook has moved beyond its role in social networking to ramp up its messaging platform, and has also moved into virtual reality with its Oculus headsets for which orders have begun.

The US is looking into whether free Android mobile software is giving an unfair advantage to other Google offerings such as its search engine, the Wall Street Journal reported Tuesday.

Federal Trade Commission (FTC) staffers have met with companies in recent months about concerns that Alphabet-owned Google is abusing the dominant position of Android software for powering smartphones or tablets, according to the Journal.

Concerns at issue are similar to some targeted by European Union regulators, and the FTC is even interested in learning about evidence being used to back a case there, it reported.

Citing people familiar with the matter, the newspaper said the FTC's move extends a probe that began last year.

Google and the FTC declined to comment on the report.

The Android operating system accounts for about 80 percent of the world market for mobile phones, far ahead of Google's closest rival, Apple.

EU Competition Commissioner Margrethe Vestager says the Silicon Valley giant has used practices such as making manufacturers pre-install its market-leading search engine as the default in phones to "abuse its dominant position."

Brussels believes such practices breach EU competition law.

The EU has accused Google of obstructing innovation by giving unfair prominence to its own apps, especially its search engine, in deals with mobile manufacturers such as Samsung and Huawei.

Google must now respond within three months to avoid sanctions which could amount to fines of up to 10 percent of the group's annual global sales or $7.4 billion based on their 2015 results.

Google has sought to downplay it's anti-trust battle with the European Commission and stressed in a recent blog post that people who buy Android-powered devices can change applications such as "search" that are pre-loaded on devices.

US court rules Amazon liable for kids' app charges
Washington (AFP) April 27, 2016 - Online giant Amazon must pay damages to consumers billed for app purchases by children on its tablets, a federal court has ruled, in a win for US regulators.

The US Federal Trade Commission said Wednesday the court backed its lawsuit, which argued that Amazon failed to get consent from parents whose children made in-app purchases on the Kindle and Fire tablets, sometimes racking up huge bills.

The FTC has also reached settlements with Apple and Google on similar cases, arguing the lack of passwords had allowed children to make app purchases without parental consent.

"We are pleased the federal judge found Amazon liable for unfairly billing consumers for unauthorized in-app purchases by children," said FTC chairwoman Edith Ramirez.

"We look forward to making a case for full refunds to consumers as a result of Amazon's actions."

Federal judge John Coughenour in Seattle, Washington ruled Tuesday that Amazon and the FTC should submit briefs on the amount of compensation to be given.

"Given the design of the Appstore and procedures around in-app purchases, it is reasonable to conclude that many customers were never aware that they had made an in-app purchase," the judge said in his ruling.

But he stopped short of issuing an injunction against Amazon, which in updated hardware and software has required passwords for app purchases.

Amazon did not immediately respond to a query on the case.


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