Amazon made $1 billion with algorithms used to raise prices, says FTC

 

The United States Federal Trade Commission (FTC) has alleged that Amazon utilized secret algorithms, resulting in over $1 billion in increased prices for products on its platform. Details from the FTC's lawsuit, filed in September, have been unveiled, shedding light on Amazon's purported pricing strategies.

• Algorithmic Price Manipulation: The FTC claims that Amazon employed a clandestine algorithm, internally known as 'Project Nessie,' to forecast which products would prompt price hikes from other online retailers. This algorithm allegedly led to over $1 billion in higher prices.
• Message Deletion Controversy: The FTC also alleges that Amazon executives intentionally deleted messages on the messaging app Signal, erasing over two years of communications despite the FTC's request not to do so.

The FTC's lawsuit, joined by 17 states, accuses Amazon of leveraging its dominant market position to inflate prices both on and off its platform, overcharge sellers, and stifle competition, potentially violating federal and state antitrust laws.

Amazon responded, contending that the lawsuit would ultimately harm consumers and businesses. The company began testing other online stores' pricing algorithms in the early 2010s, seeking to ensure they mirrored Amazon's pricing. As a result, Amazon discovered it could raise prices while minimizing the risk of shoppers finding lower prices elsewhere, particularly by increasing prices on products sold by competitors matching Amazon's prices, giving rise to 'Project Nessie.'

Amazon's spokesperson, Tim Doyle, dismissed the FTC's claims as "baseless and irresponsible." Amazon voluntarily disclosed Signal conversations to the FTC and allowed agency staff to inspect them, even when unrelated to the investigation, Doyle stated.

Delhi Metro has introduced smart lockers at 50 of its stations

 Delhi Metro has introduced smart lockers at 50 of its stations, allowing commuters to safely store their belongings for a few hours.

This service can be accessed via a new mobile app called 'Momentum 2.0,' launched by the Delhi Metro Rail Corporation (DMRC). The app offers various features beyond locker rentals, including online purchasing from listed e-commerce companies through 'virtual stores,' sending couriers via smart lockers (digi-lockers), and buying QR code-based tickets. DMRC plans to expand these facilities to the majority of its stations by June 2024.

Commuters using 'Momentum 2.0' can rent a 'smart box' (digi-locker) at 50 stations on Lines 1-7 and the Airport Line. The app provides flexibility in rental durations, and users are charged penalties for exceeding the specified time limits.

The digital lockers aim to enhance the commuter experience, offering a convenient and secure place to store belongings during travels. DMRC's collaboration with AutoPe Payment Solutions enables these services, providing commuters with a range of options beyond traditional travel. The digital lockers are app-powered and eliminate the need for physical locks or keys, making the process seamless.

Additionally, the app offers the convenience of making online purchases from virtual stores, courier services, buying QR code-based metro tickets, and even paying utility bills. It also provides information about station-related details, facilities, transportation options, food outlets, ATMs, and more.

Delhi Metro's initiative seeks to make the commuting experience more efficient and user-friendly, incorporating digital solutions for various services.

Rajeev Chandrasekhar announces that the prestigious Tata Group will now be crafting iPhones in India

 

Apple is forging a strategic alliance with India's Tata Group, designating the nation as its trusted hub for both manufacturing and nurturing top-tier talent. This dynamic partnership is poised to craft iPhones on Indian soil, marking a significant and exciting step forward.

Highlights:

• Electronics and Technology Minister Rajeev Chandrasekhar said today that the project will be completed within two and a half years, and that the government will support the Tata Group and other Indian electronics companies in their efforts to partner with global brands.
• Tata Group will hold a 100% stake in Wistron InfoComm Manufacturing (India) Private Limited (WMMI).
• Tata Group to manufacture iPhones in India for global market.

India has swiftly risen as a prime contender for Apple's iPhone production, with the Tata Group poised to manufacture these coveted devices for both the domestic and international markets.

Revealing this exciting development, Electronics and Technology Minister Rajeev Chandrasekhar affirmed that the project's completion is expected within two and a half years. The Indian government, he added, is firmly committed to supporting the Tata Group and other prominent Indian electronics companies as they collaborate with global brands.

Chandrasekhar, in a tweet, emphasized the government's dedication to nurturing the growth of dynamic Indian electronics firms, which, in turn, will serve as valued partners for global electronic brands seeking to establish India as their trusted hub for manufacturing and talent, aligning with the Prime Minister's vision of transforming India into a global electronics powerhouse.

This groundbreaking initiative took shape after Taiwan-based Wistron Corp., a key Apple contract manufacturer, granted approval for the sale of its Indian unit to the Tata Group for a substantial $125 million. Upon board approval, Tata Group will hold a 100% stake in Wistron InfoComm Manufacturing (India) Private Limited (WMMI). The deal is set to advance through the necessary regulatory channels, pending confirmation from all relevant stakeholders.

This strategic move signifies a noteworthy departure from Apple's traditional production strategy, which heavily leaned on Chinese manufacturing facilities. The ongoing US-China trade tensions and rising labor costs in China have compelled Apple to diversify its production sources. India, renowned for its vast consumer base, skilled workforce, and favorable government policies, has now emerged as an enticing and forward-looking choice for Apple's future production endeavors.

Notably, Apple has been assembling iPhones in India since 2017, commencing with the iPhone SE. Since then, the company has steadily expanded its operations, leading up to the local assembly of the highly sought-after iPhone 15 and iPhone 15 Plus models.