Justice Department sues Apple, claims company holds iPhone monopoly
The Justice Department announced Thursday, March 21, that it has filed a significant antitrust lawsuit against Apple Inc., accusing the technology behemoth of illegal anti-competitive practices aimed at maintaining its smartphone market monopoly and inflating profits.According to the lawsuit, Apple is alleged to have manipulated application development rules and features of its iPhones — including iMessage and Apple Wallet — to suppress competition and elevate pricing.
In a detailed accusation contained within an 88-page complaint, the government criticizes Apple’s imposition of restrictions on multifunctional “super apps,” its manipulation of messaging functionalities between Apple and non-Apple devices, and its monopolization of tap-to-pay features exclusively for Apple Wallet.
“Our case focuses on Apple’s core monopoly, which is the iPhone,” Assistant Attorney General Jonathan S. Kanter said. “We have focused on a pattern of conduct over a decade that Apple has engaged in order to reinforce its monopoly power by excluding rivals by excluding technologies by stifling innovations that would threaten Apple’s stranglehold on its monopoly power.”
The lawsuit, joined by 15 states and the District of Columbia, seeks judicial intervention to prohibit Apple from continuing its alleged anti-competitive activities and to mandate actions necessary to restore competitive conditions in the markets affected by Apple’s purported unlawful conduct.
Responding to the allegations, Apple defended its business practices, arguing that the lawsuit fundamentally misunderstands the nature of its operations and threatens the company’s ability to produce highly integrated technology products.
This legal challenge is part of a broader scrutiny of major tech companies by the Justice Department’s antitrust division, which has previously targeted Google with lawsuits alleging monopolistic business practices during both the Trump and Biden administrations.
Apple in talks with Google to integrate AI engine into iPhone
Apple is reportedly in discussions to integrate Google’s Gemini artificial intelligence engine into the iPhone, according to Bloomberg News. Sources familiar with the matter suggest that negotiations are centered around licensing Gemini for new features slated to arrive on iPhone software later this year.
Details regarding the terms of the agreement and its implementation are currently unknown.
If the tech giants strike a deal, it could potentially pave the way for Google to expand its AI services to over 2 billion active Apple devices, bolstering its competition against Microsoft-backed OpenAI, the creator of ChatGPT.
While any official announcement is not expected until June, coinciding with Apple’s annual developers’ conference, recent talks have also included OpenAI.
Apple and Google have yet to comment on the Bloomberg report.
Apple faces nearly $2 billion fine as EU rules against tech giant
Apple is facing a nearly $2 billion fine from the European Union. The EU leveled the fine in response to an antitrust penalty against Apple on Monday, March 4, ruling it forbade rivals like Spotify from notifying customers of how they could pay for cheaper subscriptions outside of Apple’s app store, according to The Associated Press.
The EU said that the fine imposed on Apple “reflects both Apple’s financial power and harm that Apple’s conduct inflicted on millions of European users.”
However, Apple disagreed with the decision.
“The facts simply don’t support this decision,” the company said in a statement regarding the EU’s ruling.
The ruling by the EU comes after Spotify argued Apple’s 30% commission fees hurt the company financially while benefiting Apple. The Verge reported that Apple was able to sell subscriptions to Apple Music through its app store without being assessed a similar fee.
However, Apple challenged Spotify’s arguments, saying Spotify added more than 100 million subscribers outside of its app store over the last eight years, according to The Verge. Additionally, Apple contends that Spotify benefited from Apple’s software tools and app updates without paying for the services because of that.
The ruling by the EU is part of a larger crackdown. According to The New York Times, a new EU rule that mandates Apple to allow third-party marketplaces on the iPhone goes into effect this year. Apple is reportedly refining its app store to comply with the law.
Apple is also facing a legal fight in the U.S.
The New York Times reported that a U.S. court ruled Apple must allow app developers to link to other payment methods. A judge ordered the move after a legal challenge from Epic Games, the maker of Fortnite. As a result, Apple did allow developers to link out to web-based payment methods, but it is still charging up to a 27% commission fee.
Meanwhile, as European regulators enforce penalties on Apple, the company reported revenue of $119.58 billion and a net profit of $33.92 billion in its latest quarter.
Apple is shifting gears away from its plans for a self-driving electric car, moving Project Titan into the rear-view mirror. The company reportedly announced the news internally on Tuesday.
As Bloomberg first reported, Apple is discontinuing its secretive, decade-long initiative aimed at competing with Tesla, known as Project Titan. Employees from the company’s Special Projects Group will be reassigned to other departments, including the Artificial Intelligence division.
According to Bloomberg, Apple’s Chief Operating Officer Jeff Williams and Kevin Lynch, a vice president overseeing the project, have notified employees about the discontinuation of the project. The report also mentions potential layoffs, although the exact number of employees affected remains unclear.
Despite reportedly investing billions of dollars in research to develop the car, Apple never officially confirmed its existence. The company has yet to comment on these recent reports.
President Biden and former President Trump win in Michigan as a group of Democratic voters use the primary to send a message. And wildfires in the Texas Panhandle result in the shutdown of a nuclear weapons facility. These stories and more highlight The Morning Rundown for Wednesday, Feb. 28, 2024.
Biden dominated the Democratic primary, capturing 81 percent of the votes. However, a notable 13 percent of Democratic voters opted for the “uncommitted” choice, signaling dissent primarily over the president’s approach to the Israel-Hamas conflict in Gaza. The “Listen to Michigan” movement, advocating for a cease-fire in the war, has highlighted this dissent. Michigan’s significant Arab-American community, the largest in the United States, played a pivotal role in this protest vote.
On the Republican side, Trump continued his winning streak in the early state primaries, claiming 68 percent of Michigan’s GOP votes. Nikki Haley, the former U.N. ambassador, finished in second place with 26 percent of the vote. Despite not securing a primary win thus far, Haley has announced her intention to stay in the race at least through the upcoming Super Tuesday.
Michigan’s Republican Party allocated only 16 of its 55 delegates based on Tuesday’s primary results. The remaining delegates will be determined at a GOP convention set for Saturday, adding another layer of anticipation to the state’s political landscape.
Biden hosts Congressional leaders to discuss government shutdown, Ukraine
Following a meeting with President Joe Biden at the White House on Tuesday, congressional leaders expressed optimism about averting a looming government shutdown.
The gathering included House Speaker Mike Johnson, Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, Senate Minority Leader Mitch McConnell, and Vice President Kamala Harris.
After the meeting, Schumer spoke to reporters, emphasizing the productive nature of the discussions. “Productive meeting on the government shutdown. We are making good progress. The speaker said unequivocally he wants to avoid a government shutdown. We made it clear that that means not letting any of the government appropriations bills lapse,” Schumer stated.
In addition to strategies for preventing the shutdown by Friday’s deadline, the leaders also delved into the stalled additional aid to Ukraine. Schumer described these talks as “intense,” noting that leaders from both parties urged Speaker Johnson to pass the Senate’s bipartisan funding bill for Ukraine.
Johnson told reporters that the House is actively exploring all options for the bill but emphasized that securing the nation’s border is the top priority.
U.S. announces $53 million in additional aid for Gaza
The United States has announced an additional $53 million in humanitarian aid for the people of Gaza and the West Bank amid the ongoing conflict between Israel and Hamas.
The bulk of the aid will support food assistance, addressing the critical situation in Gaza where two million people are at “imminent risk” of famine, according to the US Agency for International Development.
Concerns have been raised by US officials over the reduced number of trucks entering Gaza. Last week, only 85 trucks a day made it through the Rafah crossing, a significant decrease from the 500 trucks per day before the conflict began.
White House officials stated that this new aid package increases the total U.S. assistance to Gaza during the conflict to $180 million.
Wildfires sweeping through the Texas Panhandle have prompted evacuations and power outages for thousands, impacting residences and prompting a temporary shutdown of a nuclear weapons facility. Officials announced this morning that the facility would reopen as usual.
The fires, fueled by strong winds, have caused damage to an unspecified number of homes. Governor Greg Abbott has issued a disaster declaration for 60 counties in response to the crisis.
The Texas A&M Forest Service reported responding to 13 wildfires on Monday, noting that Tuesday’s conditions were prime for increased wildfire activity.
Since Monday, over 40 houses in Fritch, a city spanning Hutchinson and Moore counties, have sustained damage, according to city officials. Evacuations have been ordered for parts of the city.
Authorities are currently investigating the cause of the wildfires.
Starbucks and Workers United Union agree on ‘path forward’
The coffee chain and the union have committed to initiating discussions on a “foundational framework” that guarantees a fair organizing process for workers. Both parties describe this agreement as a “constructive path forward.”
“As a sign of good faith, Starbucks has agreed to provide partners represented by Workers United with the May 2022 benefits, including credit card tipping,” the company stated.
Starbucks is aiming to conclude contract negotiations by the end of the year.
Apple cancels plans for self-driving electric car
Apple is putting plans for a self-driving electric car, moving Project Titan in the rear-view mirror.
As Bloomberg first reported, Apple is discontinuing its secretive, decade-long initiative aimed at competing with Tesla, known as Project Titan. Employees from the company’s Special Projects Group will be reassigned to other departments, including the Artificial Intelligence division.
According to Bloomberg, Apple’s Chief Operating Officer Jeff Williams and Kevin Lynch, a vice president overseeing the project, have notified employees about the discontinuation of the project. The report also mentions potential layoffs, although the exact number of employees affected remains unclear.
Despite reportedly investing billions of dollars in research to develop the car, Apple never officially confirmed its existence. The company has yet to comment on these recent reports.
Study shows virtual reality helping seniors as ‘silver tsunami’ approaches
Virtual reality (VR) is giving some senior citizens a new lease on life. According to The Associated Press, Stanford University studied the use of VR at 17 senior living communities. Researchers found that out of 245 participants between the ages of 65 and 103 years old, most saw improvement in their reported emotional well-being and interactions with staff.
The study is now being used to adapt VR technology to patients with Alzheimer’s and dementia in an effort to improve their emotional well-being.
According to the study, around 80% of seniors involved in the testing reported having a more positive attitude after using VR, and 60% said they fell less socially isolated.
“Part of what triggers the memory with virtual reality is the idea of immersion,” Mynd Immersive CEO Chris Brickler said. “Right, so, when we take somebody out of the four walls of their current environment and place them into a different place, the mind treats that experience differently. The mind thinks that we’re actually close to being that reality. So, that can bring back a tremendous amount of joy, a tremendous amount of memories.”
The findings by Stanford University researchers come as America braces for a “silver tsunami,” with a record 4.1 million people set to turn 65 this year, according to Axios.
With a potentially large pool of customers, companies who manufacture VR headsets will need to be ready to address issues of price and comfort.
Many Vision Pro owners returned the $3,500 headsets to Apple, as a flurry of posts on social media showed users boxing up their headsets right when the 14-day window for a full refund was closing, according to The Verge.
The reasons customers cited for returning their Vision Pro headsets ranged from complaints of motion sickness to the weight of the device being too heavy. One customer told The Verge that he burst a blood vessel in his eye using the Apple headset.
Mynd Immersive, which creates virtual reality headsets for seniors, said comfort is something the company is working on. Mynd Immersive said that common complaints relate to weight, heat and nausea. So, the company introduced new headsets.
Mynd Immersive’s new headsets reportedly weigh 6 ounces, which is down from a pound on previous headsets, and they have a built-in fan for cooling.
“Apple Vision Pro is unlocking the imaginations of our worldwide developer community, and we’re inspired by the range of spatial experiences they’ve created for this exciting new platform,” said Susan Prescott, Apple’s vice president of Worldwide Developer Relations.
But at $3,500, its high price point may initially keep many away. Analysts predict Apple will only sell about 1 million or fewer devices this year. More than 600 apps have been developed specifically for the Vision Pro.
According to Apple, the Vision Pro uses ultra-high-resolution displays that have more pixels than 4k TV for each eye. The NBA and PGA Tour are just two organizations to create “spacial computing” applications for Apple Vision Pro that gets fans closer to the action.
“With Apple Vision Pro and the power of spatial computing, Apple is teeing us up to deliver an innovative and immersive way of experiencing professional golf,” said Scott Gutterman, PGA TOUR’s senior vice president of Digital Operations. “PGA TOUR Vision, the first golf app developed for Apple Vision Pro, takes fans inside the ropes and directly onto the greens of the world’s most iconic courses, from Pebble Beach to TPC Sawgrass, no matter where they are.”
Alabama set to conduct first nitrogen gas execution in U.S.: The Morning Rundown, Jan. 25, 2024
Alabama is set to conduct the first execution of a death row inmate by nitrogen gas in U.S. history. And the FAA halts Boeing from expanding its production on certain planes following the Alaska Airlines midair scare. These stories and more highlight The Morning Rundown for Thursday, Jan 25, 2024.
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Alabama to proceed with first nitrogen gas execution in the U.S.
The first execution of a death row inmate by nitrogen gas is expected to take place within hours in Alabama after the Supreme Court declined to halt the inmate’s request to pause the execution. The court did not explain its ruling on Wednesday, Jan. 24, as the justices did not side with Kenneth Smith and his attorneys.
Smith’s legal team was looking for more time to argue that the state trying to execute him for a second time would be unconstitutional, falling under the category of cruel and unusual punishment. An appeals court also declined to halt the execution.
Execution by nitrogen gas is only approved in three states: Alabama, Oklahoma, and Mississippi. But Alabama is the only state to outline its protocol so far, saying it will use a mask to deliver the nitrogen.
Critics of the new method include the United Nations, whose Human Rights Office said it “could amount to torture or other cruel, inhuman, or degrading treatment under international human rights law.” The Alabama Attorney’s General office claimed the use of nitrogen gas is the “most painless and humane method of execution known to man.”
Ohio bans gender-affirming care for minors
Despite a veto from Gov. Mike DeWine, Ohio’s Republican-dominated senate voted to ban gender-affirming care for minors and bar transgender women and girls from competing on sports teams. In a senate vote to override DeWine’s veto, the law passed and bans gender-affirming surgeries and hormone therapies and restricts mental health care for transgender patients under 18. The law also bars transgender girls and women from joining girls’ and women’s sports teams from K through 12 and collegiate sports.
The law is expected to go into effect in 90 days, after it was pushed through in a 24-8 vote in the state senate. One Republican voted against the measure. While Gov. DeWine vetoed the measure, citing government overreach, he did sign an executive order in early January banning gender-affirming surgeries for minors, even though medical professionals have insisted those surgeries aren’t happening in the state.
“This choice is clear. Joe Biden bet on the American worker while Donald Trump blamed the American worker,” UAW President Shawn Fain said.
In 2023, the UAW orchestrated a massive walk-out during negotiations with Detroit’s Big Three automakers for better wages. The months-long strike ended with historic deals signed by the union, and President Biden became the first modern-day president to hit a picket line in a show of support for the American worker.
This is why Fain said the choice is clear, calling former President Donald Trump a “scab,” and added that he is a billionaire who does not represent the American worker; he is the type of “company man trying to squeeze the American worker.”
UAW’s endorsement is a big win for Biden as he looks to garner more support from working-class Americans. The UAW also endorsed Biden during the 2020 election.
U.N.’s top court to make initial ruling in Israel genocide case
Should the 17-judge panel grant South Africa’s requests, it’s unclear if Israel will comply with the court’s order. While rulings by the court are legally binding, there is no way to enforce them.
Israel has called the genocide allegations “grossly distorted,” saying the country has a right to defend itself and it is fighting Hamas, not Palestinian civilians. The United States has called South Africa’s case meritless.
FAA approves path for grounded Boeing jets to return after panel incident
Boeing said it will work with the airlines to complete these inspections. Alaska and United Airlines, which have been forced to cancel hundreds of flights consistently, said they expect to have some of the planes back in service by this weekend. At the same time, the FAA is not allowing Boeing to expand production of the 737 Max jets.
The FAA said that the halt is needed to ensure accountability by Boeing, adding that it will not agree to any requests for expansion until Boeing resolves quality control issues.
Jon Stewart returning to host ‘The Daily Show’ on Mondays
This time around, Stewart will only be on Monday nights and only throughout the 2024 presidential election cycle. Stewart most recently hosted a show on Apple TV+, but it was canceled after two seasons following reports of conflict between Stewart and Apple over its coverage of China and artificial intelligence.
Along with part-time hosting duties, Stewart will also serve as executive producer for every episode of “The Daily Show” through 2025.
Pakistan strikes back at Iran; US targets Houthi missiles: The Morning Rundown, Jan. 18, 2024
Developing stories out of the Middle East as Pakistan fires back at Iran and the U.S. launches additional strikes at Houthi targets. And the latest Apple Watches will be back on sale on Thursday, Jan. 18, but with some changes. These stories and more highlight The Morning Rundown for Thursday, Jan. 18, 2024.
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Pakistan strikes Iran; U.S. targets Houthi missiles
There are new developments out of the Middle East as the possibility of a wider war in the region looms. Pakistan said it has carried out strikes targeting terrorists inside Iran.
The sole objective of today’s act was in pursuit of Pakistan’s own security and national interest, which is paramount and cannot be compromised.
Pakistan’s foreign affairs ministry
The strikes come after an Iranian missile attack on Tuesday, Jan. 16, that Pakistani officials said killed two children and was unprovoked. Pakistan said its strikes on Iran were “highly coordinated and specifically targeted precision strikes against terrorist hideouts.”
An Iranian official said the strikes killed at least nine people, including four children. Pakistan’s foreign affairs ministry released a statement that said Pakistan’s national security is its priority.
“Pakistan fully respects the sovereignty and territorial integrity of the Islamic Republic of Iran,” the statement said. “The sole objective of today’s act was in pursuit of Pakistan’s own security and national interest, which is paramount and cannot be compromised.”
Meanwhile, the United States launched another round of airstrikes against Houthi targets in Yemen on Wednesday night, Jan. 17. U.S. Central Command said U.S. forces targeted 14 Iran-backed Houthi missiles that were loaded to be fired from the Houthi-controlled areas of Yemen. The U.S. said the missiles presented an imminent threat to merchant vessels and Navy ships in the region.
On Wednesday, Jan. 17, the U.S. announced it was redesignating the Houthis as global terrorists for the group’s continued attacks against commercial ships in the Red Sea. The move subjects the Houthis to economic sanctions aimed to cut off funding to the militant group.
Speaker Johnson pushes the president for border reform in meeting on Ukraine aid
Following a meeting at the White House on Wednesday, Jan. 17, House Speaker Mike Johnson, R-La., told reporters he pressed President Biden on immigration reform, calling the southern border a “national security and humanitarian catastrophe.” Biden called congressional leaders pushing for more aid to Ukraine, aid that has been blocked by House Republicans for months demanding stricter border policy as the U.S.-Mexico border has been flooded with a record number of migrants.
According to the Pew Research Center, 10.5 million undocumented immigrants have been living in the U.S. since 2021. While Republicans have drawn a proverbial line in the sand demanding the border be addressed in any Ukraine-Israel funding package, the meeting may have marked a path forward for negotiations that have been at a stalemate in Congress.
Biden has requested $61.4 billion in additional funding for Ukraine, which includes additional funding for Israel. Still, it hinges on what border policy changes both sides can agree upon.
“We understand that there is concern about the safety, security, sovereignty of Ukraine,” Speaker Johnson said. “But the American people have those same concerns about our own domestic sovereignty and our safety, and our security.”
In talking to reporters following the meeting, Senate Majority Leader Chuck Schumer expressed some hope that talks are moving in the right direction, with both sides having similar goals. But he did note that compromise is the only way anything gets passed.
Texas defies DHS cease-and-desist letter after park takeover
A war of words is brewing between Texas and the Biden administration amid the immigration crisis at the border after the state’s national guard took over a public park along the U.S.-Mexico border last week. The state said the move was to deter migrants from illegally crossing into the area.
The Department of Homeland Security issued a cease-and-desist letter to Texas over the weekend, calling for officials to stop blocking federal border patrol agents from entering Shelby Park in Eagle Pass, by a deadline of Wednesday, Jan. 17.
The department said Texas’ move is obstructing border patrol from apprehending and processing migrants. Texas Attorney General Ken Paxton responded Wednesday, Jan. 17, sending a letter to Homeland Security, rejecting its request and saying the state will continue “utilizing its constitutional authority to defend her territory.” DHS has warned Texas it would refer the matter to the Justice Department should the state continue to deny border patrol full access.
Maine judge defers Trump decision until Supreme Court ruling
Maine’s secretary of state barred Trump from the ballot last month, citing his actions around the Jan. 6 capitol riots a week after the Colorado Supreme Court’s similar decision. Trump, the GOP frontrunner for the 2024 presidential election, has appealed the states’ decisions, leaving his name on both ballots for now.
The U.S. Supreme Court has agreed to hear the case out of Colorado, with arguments set for Feb. 8. The Maine judge ordered Maine’s secretary of state to make a new ruling within 30 days of the Supreme Court’s decision.
On Wednesday, Jan. 17, Trump voluntarily attended his defamation trial in New York for a second day, where he sparred with the judge, who threatened to kick him out of court for making comments as his accuser, columnist E. Jean Carroll, was testifying. Trump said he will not be at Thursday’s Jan. 18 court proceedings so he can attend the funeral of his mother-in-law, who passed away last week at the age of 78.
Iowa sues TikTok for misleading parents and exposing children to harmful content
Other states have filed similar lawsuits, though a judge in Indiana threw out the case. TikTok faces many other legal challenges, from inappropriate content to privacy concerns. It is not just TikTok facing backlash and challenges when it comes to protecting children from harmful content on social media; globally, there have been calls for social platforms to protect children.
In a statement regarding the latest lawsuit in Iowa, TikTok said it “has industry leading safeguards in place for young people, including parental controls and time limits for those under 18. We are committed to tackling industry wide challenges and will continue to prioritize community safety.” TikTok’s CEO, along with the other social media CEOs, is set to testify in front of the Senate Judiciary Committee on Jan. 31 discussing online child sexual exploitation.
Apple begins selling watches without blood oxygen feature
The latest versions of the Apple Watch will return to Apple store shelves but with some modifications. Beginning Thursday, Jan. 18, Apple will once again sell its Series 9 and Ultra 2 watches online and at its retail stores, but the watches will be without the blood oxygen feature.
This comes after Apple was banned from using the technology following an intellectual property dispute with the medical device company Masimo. The blood oxygen app will still be on the watches, but Apple said when users tap on it, they will be alerted that the feature is no longer accessible. Apple is still appealing the International Trade Commission’s ruling that found Apple infringed on Masimo’s patents.
Kim Kardashian closing free mobile game that made her millions
Kim Kardashian’s popular, free-to-play mobile game is in its final months, the billionaire announced last week. The closure is not sitting well with some of the hardcore fans who have been building in-game clout over the past decade from their phones.
Kim Kardashian: Hollywood tasks users with moving from the E-list in Tinsel Town all the way to the upper rungs of society.
Players run chic boutiques, attend club and store openings, and star in photoshoots. They also start families and own property across the globe. They can use in-game and real-world currency to customize their avatars.
“I’m so grateful from the bottom of my heart to everyone who has loved and played Kim Kardashian: Hollywood in the past 10 years,” Kardashian said in a statement to Straight Arrow News. “This journey has meant so much to me but I’ve realized that it’s time to focus that energy into other passions.”
Users can’t download the app anymore as stores have removed it. The game will officially shut down for existing users April 8, according to a pop-up message from in-game reporter Ray Powers that greets players the moment they start the app. At that point, all of the in-game purchases and currency will disappear.
Initially released in 2014, Kim Kardashian: Hollywood was a huge success, reaching 42 million downloads and $157 million in sales its first two years, despite being free to play.
“This journey has meant so much to me but I’ve realized that it’s time to focus that energy into other passions.”
Kim Kardashian on closure of mobile game
The birth of microtransactions
Microtransactions have become a huge part of gaming over the last two decades, allowing people to spend real money to buy virtual goods within a game’s ecosystem.
These transactions are generally $5 and under but can get far more expensive. They are most prominent in free-to-play mobile games, which have been dubbed “freemium,” but they appear in games across all platforms.
Microsoft first brought the idea to the table in 2005 as it launched the Xbox 360 console and its brand-new marketplace. The next year, Bethesda Studios sold the Horse Armor Pack for $2.50 in The Elder Scrolls IV: Oblivion.
The global microtransaction market grew to $76.66 billion in 2023 and is expected to reach $117.95 billion in 2027, according to The Business Research Company.
In most “freemium” mobile games, microtransactions allow you to pay to progress. They also often offer cosmetic upgrades like skins and emotes. Loot boxes randomize the experience but have many regulators comparing the process to gambling.
Recently, the Federal Trade Commission accused Fortnite-maker Epic Games of using tricks known as “dark patterns” to charge players without informed consent. The FTC ordered Epic to pay $245 million in refunds for unwanted microtransactions. Gamers have until the end of February to apply.