Silicon Valley Tech News Roundup – March 20th
Ukraine legalizes cryptocurrency industry – 3/17
On Wednesday, the Ukrainian Ministry of Digital Transformation announced President Volodymyr Zelenskyy signed the law legalizing the cryptocurrency sector. Ukrainian Parliament adopted the bill in February.
The country’s National Securities and Stock Market Commission will regulate the sector. The regulatory body will implement state policy and issue necessary licenses to crypto companies. Likewise, the bill allows banks to open up accounts for crypto companies. The law outlines the classification, ownership, and status of digital assets.
In February, as the Russian invasion of Ukraine began, the government started accepting donations in ether and bitcoin. Since then, the country expanded the number of cryptocurrencies it accepts as donations. Last week, the government launched an official website that allows global donations in cryptocurrencies. The raised money will go towards humanitarian and military efforts.
Amazon purchases MGM for $8.45 billion – 3/17
Amazon completed the purchase of MGM Studio for $8.45 billion. Mike Hopkins, Amazon senior vice president, stated: “We welcome MGM employees, creators, and talent to Prime Video and Amazon Studios, and we look forward to working together to create even more opportunities to deliver quality storytelling to our customers. ”
The acquisition allows Amazon to expand its video library by including an extensive MGM collection. At the moment, the yearly Amazon Prime membership (for a $139 fee) gives customers access to 2700 series and 26,000 movies. Experts believe Amazon hopes to get an advantage over the competition like Netflix, Disney+, and HBO Max.
Rumors circulated the FTC might challenge the deal. In a report published by the Wall Street Journal, Amazon confirmed it gave all the information concerning the acquisition to the FTC and set a mid-month date for closing the deal.
In a statement sent to The Verge, Lindsay Kryzak (director of the FTC’s public affairs office) said: “The FTC does not comment on any particular matters. However, we reiterate that the Commission does not approve transactions and may challenge a deal at any time if it determines that it violates the law. Additionally, this summer the FTC announced that it will send pre-consummation warning letters in connection with deals it cannot fully investigate within the timelines established by the HSR Act. These letters alert merging parties that their transactions remain under investigation, and warn that consummation occurs at their own risk.”
Meanwhile, the EU’s Antitrust Commission allowed the deal: “The Commission concluded that the transaction would raise no competition concerns in the European Economic Area.”
Google accused of racial bias against Black employees – 3/19
On Friday, a former employee filed a lawsuit against Google at the federal court in San Jose, California. The plaintiff accused the company of systemic racial bias against Black employees.
April Curley, the plaintiff, claims the company hires fewer Black employees and pays them less. Also, Google steers them towards lower-level jobs than what is appropriate for their work experience. Likewise, she claims the company denies Black employees opportunities to advance and take on leadership roles. The complaint states: “Black Google employees face a hostile work environment and suffer retaliation if they dare to challenge or oppose the company’s discriminatory practices.”
The lawsuit states that in 2014 when Curley started working at Google, only 1.9% of employees identified as Black or African American. Based on the company’s 2021 Diversity report, only 4.4% of the United States employees identify as “Black+” (meaning employees who identify as more than one race, one of which is Black).
Likewise, the lawsuit alleges the security routinely harassed Black employees and visitors to the Google campus in California because of their race. As outlined in the complaint: “Pursuant to its racially biased corporate culture, Google segregates its workforce and workplaces, which are permeated by a racially hostile work environment.”
Brazil bans Telegram – 3/19
The Supreme Court of Brazil banned Telegram. The court ordered Antel, the country’s telecommunications regulator, to implement the decision within 24 hours. Likewise, Apple and Google must remove the app from their app stores within five days. The companies face a fine of $20.000 per day if they fail to comply. People who access Telegram by using VPN or other methods also face a $20.000 fine. Justice Alexandre de Moraes clarified his ruling by stating Telegram failed to respond to judicial orders to freeze accounts that spread misinformation.
Supporters of President Jair Bolsonaro, known for his far-right leanings, switched to Telegram when Facebook and Twitter cracked down on accounts spreading misinformation. Both Bolsonaro and Anderson Torres, Minister of Justice and Public Security, criticized the ruling. These developments are happening as Brazil gears up for the presidential election in October.
In a statement, Pavel Durov, Telegram Chief Executive, apologized for the blunder and blamed it on missing emails. Durov asked the court to delay the decision so that Telegram could rectify the situation.
