Apple fined $2.29 million over Australian ‘4G’ iPad (Source: The Economic Times)

SYDNEY: Apple was on Thursday fined Aus$2.25 million (US$2.29 million) for “deliberately” misleadingAustralian consumers about the local 4G capability of its next-generation iPad. 

The tech giant was also ordered to pay Aus$300,000 in costs by the Federal Court in a case brought by regulators. 

Justice Mordy Bromberg found that Apple misled people with claims in its advertising implying that the “iPad with WiFi + 4G” could connect with fourth generation cellular networks in Australia, when it could not. 

The judgement ruled that the company engaged in conduct liable to mislead the public and contravened Australian consumer law. 

“The conduct concerned was deliberate and very serious,” Bromberg said. 

“It exposed a significant proportion of Australian consumers of tablet devices to a misleading representation.” 

Apple offered in March to refund customers who felt they had been duped, and to publish a clarification about the popular tablet’s capabilities. 

The product is now advertised outside North America as “Wi-Fi + Cellular” — a change that came into effect on May 12 — with a clear caveat on its Australian site that “it is not compatible with current Australian 4G LTE and WiMax networks.” 

Earlier this month, the company agreed to settle the case with the Australian Competition and Consumer Commission, which initiated the proceedings. 

But Bromberg had refused to make an official ruling until he had details on how many iPads had been sold and were returned under the refund offer and further information on Apple’s financial position. 

He said Thursday the risk of contravening Australian consumer law would have been “reasonably obvious” to Apple. 

“In that context, and in the absence of any other explanation, the facts to which I have just referred suggest that Apple’s desire for global uniformity was given a greater priority than the need to ensure compliance with the Australian consumer law,” he said. 

“Conduct of that kind is serious and unacceptable.” 

The iPad was the world’s best-selling tablet in the first three months of 2012, outgunning its Android-powered rivals, with sales more than doubling from a year earlier to send Apple’s profits soaring.

 

Facebook to buy facial-recognition startup Face.com (Source: The Economic Times)

Facebook Inc is paying $55 million to $60 million to buy Face.com, according to people familiar with the matter, acquiring the company that provides the facial-recognition technology used by the world’s largest social network to help users identify and tag photos. 
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The deal bolsters one of Facebook’s most popular features — the sharing and handling of photos — but the use of the startup’s technology has spurred concerns about user privacy. 

The No. 1 social network will pay cash and stock for Face.com, potentially paying as much as $60 million, two sources with knowledge of the deal said. Media reports in past weeks have pegged the transaction at $80 million to $100 million. 

Neither Facebook nor Face.com disclosed terms of the deal, which is expected to close in coming weeks. 

Facebook, which will acquire the technology and the employees of the 11-person Israeli company, said in a statement that the deal allows the company to bring a “long-time technology vendor in house.” 

Face.com, which has raised nearly $5 million from investors including Russian Web search site Yandex, launched its first product in 2009. The company makes standalone applications that consumers can use to help them identify photos of themselves and of their friends on Facebook, as well as providing the technology that Facebook has integrated into its service. 

Facebook uses the technology to scan a user’s newly uploaded photos, compares faces in the snapshots with previous pictures, then tries to match faces and suggest name tags. When a match is found, Facebook alerts the person uploading the photos and invites them to “tag,” or identify, the person in the photo. 

Responding to inquiries from US and European privacy advocates, Facebook last year made it easier for users to opt out of its controversial facial-recognition technology for photographs posted on the website, an effort to address concerns that it had violated consumers’ privacy. 

The deal is the latest in a string of acquisitions by Facebook in recent months, including the $1 billion acquisition of mobile photo-sharing service Instagram. U.S. antitrust regulators are undertaking an extended review of the Instagram deal, which Facebook expects to close by the end of the year. 

Shares of Facebook, which continue to trade below the price at which they were offered during the initial public offering in May, closed Monday’s regular session up 4.7 per cent at $31.41.

India asked Google to censor online content 225 times ( Source: The Economic Times)

Internet giant Google has said it has logged 255 instances of India asking for online content censorship, marking a sharp rise of 49% in the second half of last year. 

Google said India’s request formed part of 1,000 demands from governments around the world in the second half of last year to take down items such asYouTube videos and search listings, and it complied with them more than half the time. 

India’s objections ranged from blockage of 133 YouTube videos, including 10 made on national security considerations and 77 on defamation, besides 26 web searches and 49 blogs, Google said in its report on Sunday. 

Google said political comments were a prime target as the number of requests for the company to remove content from the reach of Internet users jumped manifold.

 

New Internet suffix bids include ‘.lol,’ ‘bank.’ (Source: The Economic Times)

NEW YORK: If Google has its way, you won’t need to type “Google.com” any more to do your searches. You can simply access the search engine at “.Google.” 

Google’s bid for “.Google” as an Internet suffix is among about 2,000 proposals submitted as part of the largest expansion of the Internet address system since its creation in the 1980s. Google Inc. also wants to add “.YouTube” and “.lol” _ the digital shorthand for “laugh out loud.” Others want approval for “.doctor,” `’.music” and “.bank.” 

If approved, the new suffixes would rival “.com” and about 300 others now in use. Companies would be able to create separate websites and separate addresses for each of their products and brands, for instance, even as they keep their existing “.com” name. One day, you might go to “comedy.YouTube” rather than “YouTube.com/comedy.” 

The organization behind the expansion, the Internet Corporation for Assigned Names and Numbers, will announce in London on Wednesday which suffixes have been proposed. Google and a handful of other companies disclosed some of their bids ahead of time. Most proposals, however, remain a mystery. 

From a technical standpoint, the names let Internet-connected computers know where to send email and locate websites. But they’ve come to mean much more. Amazon.com Inc., for instance, has built its brand around the domain name. 

The expansion will allow suffixes that represent hobbies, ethnic groups, corporate brand names and more. 

It’ll take at least a year or two, however, for ICANN to approve the first of these new suffixes. It could take a few months longer for them to appear in use. 

Some of them never will if they are found to violate trademarks or are deemed offensive. Others will be delayed as competing bidders quarrel over easy-to-remember words such as “.web.” When multiple applications seek the same suffix, ICANN will encourage parties to work out an agreement. ICANN will hold an auction if the competing bidders fail to reach a compromise. 

The expansion, already several years in the works, had been delayed by more than a month this spring because of technical glitches with the application system. 

Alex Stamos, whose Artemis Internet company is bidding for “.secure,” said the expansion will “create much more specific neighborhoods with specific focus and goals.” 

Stamos envisions “.secure” as a neighborhood for banks, medical professionals, payroll providers and others needing to establish consumer trust. Websites that adopt “.secure” instead of “.com” in their names would go through additional screening and be required to follow certain security practices such as encryption of all Web traffic. 

The suffixes are restricted to the richest companies and groups, which paid $185,000 per proposal. If approved, each suffix would cost at least $25,000 a year to maintain, with a 10-year commitment required. By comparison, a personal address with a common suffix such as “.com” usually costs less than $10 a year. 

ICANN has received at least $350 million in application fees. The money will be used to set up the system, review applications and make sure parties do what they have promised once the suffix is operational. Some of the money will be set aside to cover potential lawsuits from unsuccessful applicants and others. 

Despite the startup costs, suffixes could potentially generate millions of dollars a year for winning bidders. A startup company called ICM Registry now receives some $60 a year for every “.xxx” registered, including money from colleges and universities that have been buying names such as “KUgirls.xxx” to make sure others can’t. That startup now wants “.sex,” `’.porn” and “.adult.” 

Stamos said he expects to charge thousands of dollars for a “.secure” name. The idea is to attract just those businesses that need the higher level of security. 

Not all bidders will be looking to sell names under their suffixes, though. Google, for instance, may decide to keep “.Google” for its own sites, though it indicated it might open “.YouTube” for brands to create video channels. Google declined comment on specifics beyond a recent blog post. 

Skeptics worry that an expansion will mean more addresses available to scams that use similar-sounding names such as “Amazom” rather than “Amazon” to trick people into giving passwords and credit card information. Others worry that new suffixes could create additional platforms for hate groups or addresses ending in obscenities. 

ICANN spent years crafting guidelines meant to curtail nefarious activities, but critics say there aren’t enough safeguards in place. Critics include a coalition of business groups worried about protecting their brands in newly created names.

 

Facebook marketing, ads prompt user to buy products: Report (Source : The Economic Times)

Facebook Inc’s marketing and advertising encourages users to buy products in stores and online, the social-networking company said in a joint report with researcher ComScore, countering criticism and research that questioned the impact of promotions on the site.

Users who saw unpaid marketing messages on the social network about Starbucks bought an item at the coffee chain within four weeks, 38% more often than those who didn’t, said Andrew Lipsman, VP of industry analysis at ComScore. The Facebook members included those who ‘liked’ Starbucks and their friends.

Users who saw paid ads for another US retailer, which the report didn’t identify, bought something from the stores’ physical locations 16% more often, and made an online purchase 56% more frequently, the report found.

“This provides some strong evidence that Facebook can be an effective marketing channel,” Lipsman said.

Menlo Park, California-based Facebook is trying to woo advertisers and show that its service is effective as it works to boost revenue from the site, which has more than 900 million members.

Last month, just before Facebook held its IPO, General Motors said it no longer intended to advertise on Facebook. And last week, a Reuters/Ipsos poll showed a minority of users being influenced by ads. Just 1 in 5 people on Facebook have bought products because of advertising or comments they saw on the site, that poll found.

ADVERTISER ‘CONFIDENCE’

Still, Facebook says its advertising provides strong results for customers. Its own research shows companies saw a return of $3 for every $1 they spent in 70% of advertising campaigns, according to Brad Smallwood, head of measurement and insights at Facebook. For almost half of campaigns, it was $5 for every $1, he said.

“They have a lot of confidence that it’s working,” Smallwood said.

The research includes more than 60 advertising campaigns over the past couple of years, he said. The ads in these campaigns were for desktop — not mobile — users, he said. The company, which rolled out its mobile-ad service earlier this year, said last month that growth in advertising revenue is failing to keep up with user gains as more people access the site through mobile devices.