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iTunes won't be in Microsoft store this year as promised

Apple

iTunes won't be available in the Microsoft store this year, dsepite a previous announcement that it would, ZDNet reports. An Apple spokesperson confirmed that it needs "a little more time" to get the iTunes integration onto Microsoft products right.

Why it matters: Microsoft needs to get more apps in its store to lure users. It's especially important for users of the slimmed down Windows 10 S operating system because as Axios' Ina Fried has previously pointed out, "without a new version of iTunes, there would be no (authorized) way to directly connect an iPhone to such devices."

The author of the ZDNet article says they've heard that the plans still remains for iTunes to come to the Windows 10 Store (which is now the Microsoft Store) at some point.

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Battery exec leaves Dyson two years after $90 million buyout

Michigan entrepreneur Ann Marie Sastry has left vacuum-maker Dyson, two years after it acquired her controverial lithium-ion battery company, Axios has learned. The $90 million all-cash buyout remains one of the richest lithium-ion deals ever.

Quick take: Sources with knowledge of the situation were not certain of the circumstances of Sastry's departure. But it comes eight months after Dyson relinquished Sakti3's core battery patents, and doubts remain in the field regarding her main claim, asserted repeatedly — that she was on the verge of commercializing much-sought-after solid state battery technology.

Why it matters: For the last two years, Dyson founder James Dyson has spoken of ambitious plans to spend $1 billion to $3 billion to revolutionize batteries and electric cars. He has said said his electric car will ready for the road by 2020. At the time, Dyson's October 2015 purchase of Sakti3 was the spearpoint of the mission, and Sastry's departure suggests more internal turmoil than he has let on.

  • Sastry's Linkedin page says she left Dyson last month. She identifies herself as the founder and CEO of a company called Amesite, which a source said is involved with artificial intelligence and education.

In September, Dyson told Bloomberg that he had created two competing battery teams—Sakti3, plus another that was attempting a different approach to solid state. One explanation for Sastry's departure was that the other team won. In an interview with the Guardian, Dyson said the company's batteries were already more efficient than those in commercial electric vehicles.

At the time of the October 2015 deal and since, numerous leading U.S. battery researchers told me they wondered why Dyson had bought Sakti3. Despite Sastry's robust claims of the company's progress with solid state, she had revealed very little publicly and, since no one else had made much progress, the deep suspicion was that she was exaggerating. Indeed, in reporting for a story at the time of the buyout, former Sakti3 executives told me that the doubters were correct—the company's technology was rudimentary and nowhere near commercial.

Dyson did not offer a comment. Sastry could not be reached.

Dan Primack contributed to this story.

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Report: FCC to fine Sinclair $13 million over undisclosed ads

AP Photo/Steve Ruark, File

The FCC plans to fine Sinclair Broadcasting Corporation milions of dollars over undisclosed cancer ads that aired during newscasts over a six-month period in 2016, Reuters reports.

The news comes one day after reports surfaced that the DOJ wants Sinclair to divest roughly 12 local broadcast stations in order for its $3.9 million merger with Tribune Media Company to be approved. It also comes as FCC Chairman Ajit Pai is being attacked for what is seen as a close relationship with Sinclair.

The fine addresses roughly 1,700 commercials that aired for the Huntsman Cancer Institute. According to the report, Sinclair has previously told reporters that the violations were unintentional.

Reuters reports that the fine was approved by the five-member FCC but has not yet been made public. Sinclair's management has always been right-leaning and conservative-leaning Pai has been accused by progressives as being favorable to the broadcaster.

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Facebook admits that some social media use can be harmful

The Facebook logo is displayed on an iPad. Photo: Matt Rourke / AP

In a new installment of its "Hard Questions" series, Facebook acknowledges that social media can have negative (or positive) effects on people, depending on how they use it.

Why it matters: This might be the first public acknowledgment from the company that its product — and category in general — can have detrimental effects on people.

Facebook is also addressing the topic shortly after two former executives publicly criticized the company for what they described as exploiting human psychology.

Good and bad use, according to research cited by Facebook:

  • Bad: Passive use of social media — reading information without interacting with others — makes people feel worse. Clicking on more links or "liking" more posts than the average user also leads to worse mental health, according to one study.
  • Good: Active use — interacting with people, sharing messages, posts, comments, and reminiscing about past interactions — is linked to improved well-being.
  • It takes two: Interacting with other users is key, according to research. Simply posting on Facebook without interacting with other people isn't enough.

But: This isn't a capitulation from Facebook, admitting that it may be doing some harm. Instead, the company is simply telling us that we just need to use its social network in more positive ways.

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CEO of music video site Vevo stepping down

Erik Huggers. Photo: Robert Marquardt/Getty Images

Erik Huggers, CEO of music video site Vevo is leaving the company, effective immediately. CFO Alan Price will be interim CEO, the company said in a statement.

The statement was short on reasons, saying only that Huggers "has decided to step down to pursue new opportunities."

The backstory: Huggers had been pushing the company, which gets most of its revenue by distributing its videos on YouTube, into trying to become a destination in its own right. It will be interesting to see which direction Vevo goes from here.

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Inside Shervin Pishevar's departure from Sherpa Capital

Shervin Pishevar. Photo: Steve Jennings/Getty Images

Shervin Pishevar yesterday resigned from Sherpa Capital, the San Francisco venture capital firm he co-founded in 2013, following multiple allegations of sexual misconduct (all of which he continues to deny).

A source familiar with the situation says that Pishevar's resignation was voluntary (i.e., he wasn't pushed out). But there has been tension inside the firm over the past several weeks, particularly as Sherpa has kept finding itself playing last-minute defense.

For example, Sherpa was unaware of Pishevar's May arrest in London until just last month, when U.S. news outlets (including Axios) were about to publish stories about it. It also was late to learn that Bloomberg was preparing to publish its initial report on allegations against Pishevar.

Not surpringly, the statements issued yesterday by Sherpa and Pishevar had some major differences. Sherpa thanked Pishevar, but added that it is "deeply committed to our culture of integrity, inclusion, and respect." Pishevar, meanwhile, thanked Sherpa, but also references "truculent opponents out to settle scores."

More details:

  • Sherpa was in the midst of pre-marketing its third flagship fund, as it is more than 70% committed on a pair of funds that officially closed in mid-2016 (but which began soliciting commitments in early 2015, per an SEC filing). Fundraising is now on hold, as the firm tries to figure out its strategy going forward.
  • The fact that Sherpa's current funds are mostly called is a big reason why LPs are unlikely to kill the remaining investment period, as they've done with Binary Capital (which had just raised a new fund). Pishevar's co-founder, Scott Stanford, continues to run the show alongsidea 13-person team, and it's possible that Sherpa could hire a senior investment professional to fill Pishevar's spot.
  • We're unclear on exactly how key-man provisions on the existing funds are structured, but it doesn't sound like they'll be triggered. Pishevar is expected to retain vested carry — as he should, since he did the work — but will no longer have a say in investment decisions (including for existing portfolio companies). He also will no longer represent Sherpa on any boards.
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Facebook's new tool will help you avoid your ex after a breakup

Employees of the Competence Call Center (CCC) work for the Facebook Community Operations Team in Essen, Germany. Photo: Martin Meissner / AP

Facebook has deployed two new features on its site which will allow users more control over who and what they see in their feeds, according to Facebook's Director of Research David Ginsberg, and Research Scientist Moira Burke.

Why it matters: Research showed that users' mental health in relation to social media depended on how they used it. Passive consumption of their feed resulted in worse mental health, while active interaction with friends and family was "linked to improvements in well-being."

Two new features:

  • Snooze: This feature allows users to hide a person or page for 30 days without unfriending or unfollowing them.
  • Take a Break: After a breakup, users can now dictate what their ex can and cannot see, and vice versa.

One more thing: Facebook's suicide prevention AI.

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How the end of net neutrality might affect customers

FCC Chairman Ajit Pai, photo: Jacquelyn Martin / AP

"The repeal of Obama-era net neutrality rules [yesterday] wipes from the books regulations that prevented Internet service providers from blocking or slowing some websites, and charging more for others to run faster," USA Today writes in the lead story of its print edition.

Why it matters: "The onus shifts to the public to flag any signs these Internet gatekeepers are playing favorites including with their own properties — and report them to the Federal Trade Commission if it looks like the provider is trying to suppress a competitor."

More from the report:

  • "The new regulations, passed by the Republican-controlled Federal Communications Commission's 3-2 vote, instead require companies like Verizon and Comcast to disclose if they block sites or give priority to their own content more than others — say by allowing Comcast unit NBCUniversal's sites to run at a faster clip than Time Warner's CNN.com."
  • The other side: "The big Internet and cable providers, who lobbied hard for repeal, say they won't stop or slow any legal content."
  • What's next: "The replacement rules are slated to go into effect as soon as next month. But expect a noisy fight online and in the courts before then — and after."
Featured

FireEye confirms another attack on critical infrastructure

Vadim Ghirda / AP

Security firm FireEye disclosed some details Thursday of a recent attack on a critical infrastructure provider by what appears to be either a state actor or state-sponsored actors.

While it isn't sharing most of the details, FireEye is drawing attention to one key element unique to this attack. In this case, the malware in question was successful at defeating two systems, but in doing so appeared to inadvertently trip up another system, causing at least some interruption of service.

Why it matters: In many cases, nations may be trying to infiltrate key infrastructure to have a way in should they wish to attack, but aren't necessarily looking to do damage now. This incident shows in some cases they may be doing damage nonetheless.

"This proves getting into these systems can cause very real disruptions, even accidentally," said FireEye Director of Intelligence analysis John Hultquist. "This activity could be construed as sabotage by an adversary or even a military act of war. It could be completely unintentional."

The attack was against Triconex Safety Instrumented Systems, made by Schneider Electric, which also confirmed the issue, according to Reuters, which said the equipment is widely used in the energy industry, including at nuclear and oil and gas facilities.

What's not being shared: FireEye isn't saying what type of infrastructure was attacked, or even in which country it was located. (Reuters reported that two other security firms say the target firm was in the Middle East, with one saying Saudi Arabia.)

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The next wave in tech scandals is coming

A building on Microsoft's campus. Photo: Microsoft

A blockbuster story from Bloomberg on an alleged rape of one Microsoft intern at the hands of another raises questions both for how Microsoft handled the situation then as well as broader questions of how large tech companies will adjust to a new reality.

What's next: I'd be shocked if I am the only one left scratching their head over how Microsoft handled this one. And I'd also be shocked if other big tech companies won't also soon be dealing with tricky issues from their past.

  • The Microsoft case is clearly a complicated one. No charges were brought in the now five-year-old case and, while there was an internal investigation, it's not clear it was able to determine what happened at the event, which took place outside of work.
  • But there are several actions Microsoft took that seem dubious. It made choices that left the pair in proximity of one another, both as interns and then, equally puzzlingly, after it chose to hire both employees.
  • No matter what actually happened, Microsoft willingly put itself in the position of employing a woman as well as a man she accused of raping her.

Three big questions:

  1. Does Microsoft think it handled the situation appropriately at the time?
  2. Would it do anything differently today?
  3. Will it launch a broader re-evaluation of how it handles complaints?
Microsoft declined to respond specifically to these questions, instead issuing the same statement it gave to Bloomberg. However, that statement suggests the company, even today, believes it acted appropriately.
  • "We work hard to create a safe work environment for every employee. The incident referenced took place away from work, but we took the allegation very seriously. Our global security team and our employee relations investigations team met with the employee to review the allegation. We encouraged her to take her complaint to law enforcement, and offered to connect her with additional resources such as victim advocacy groups. We also took practical steps to address concerns she had about her safety. Law enforcement did not ultimately file any charges. Given this, and our own findings, we took the action we deemed appropriate related to the accused employee. We continued to work with the employee who raised the complaint to provide support."
Why it matters: Large tech companies have tens or hundreds of thousands of employees and, in addition to all the clear-cut cases of sexual harassment or assault, no doubt have all manner of more complex issues from their past, some of which will no doubt come under fresh scrutiny with a new sensibility applied.
  • Microsoft has shown itself willing to take action against employees, even high-ranking executives, when it is convinced there has been impropriety. I know of at least two high-ranking executives who were forced out of the company in such circumstances during the decade I covered the company for CNET.