The conflict between tech behemoths Google and Apple and Fortnite creator Epic Games is a ground-breaking antitrust lawsuit that has rocked the app ecosystem. An important turning point in the dispute occurred when a jury decided to support the gaming behemoth over Google after Epic Games had initially challenged the app store duopoly.
The core of the dispute lies in the exorbitant fees imposed by Google and Apple on app developers for in-app purchases. Epic Games argued that these fees, which can go as high as 30%, amount to monopolistic practices, stifling competition and innovation in the digital marketplace. The trial has illuminated the murky waters of app store policies, prompting a reevaluation of the power dynamics between tech behemoths and app developers.
One of the key turning points in the trial was the revelation of internal emails from Google, exposing discussions about the company's fear of losing app developers to rival platforms. These emails provided a rare glimpse into the inner workings of tech giants and fueled Epic Games' claims of anticompetitive behavior.
The verdict marks a significant blow to Google, with the jury finding in favor of Epic Games. The decision has broader implications for the tech industry, raising questions about the monopolistic practices of other app store operators. While Apple has not yet faced a verdict in its case with Epic Games, the outcome against Google sets a precedent that could reverberate across the entire digital ecosystem.
Legal experts speculate that the financial repercussions for Google could be substantial, potentially costing the company billions. The implications extend beyond financial penalties; the trial has ignited a conversation about the need for regulatory intervention to ensure a fair and competitive digital marketplace.
Industry observers and app developers are closely monitoring the fallout from this trial, anticipating potential changes in app store policies and fee structures. The ruling against Google serves as a wake-up call for tech giants, prompting a reassessment of their dominance in the digital economy.
As the legal battle between Epic Games and Google unfolds, the final outcome remains years away. However, this trial has undeniably set in motion a reexamination of the app store landscape, sparking debates about antitrust regulations and the balance of power in the ever-evolving world of digital commerce.
Tim Sweeney, CEO of Epic Games, stated "this is a monumental step in the ongoing fight for fair competition in digital markets and for the basic rights of developers and creators." In the coming years, the legal structure controlling internet firms and app store regulations will probably be shaped by the fallout from this trial.
With new data centres that use enormous quantities of electricity and water, as well as power-hungry GPUs used to train models, AI is becoming a greater environmental risk.
For instance, reports show that Amazon's data centre empire in North Virginia has consumed more electricity than Seattle, the company's home city. In 2022, Google data centres used 5.2 billion gallons of water, an increase of 20% from the previous year. The Llama 2 model from Meta is also thirsty.
Some examples of tech-giants that have taken initiatives to reduce the added environment strain include Microsoft’s commitment to have their Arizona data centers consume no water for more than half the year. Also, Google announced a cooperation with the industry leader in AI chip Nvidia and has a 2030 goal of replacing 120% of the freshwater used by its offices and data centres.
However, these efforts seem like some carefully-crafted marketing strategy, according to Adrienne Russell, co-director of the Center for Journalism, Media, and Democracy at the University of Washington.
"There has been this long and concerted effort by the tech industry to make digital innovation seem compatible with sustainability and it's just not," she said.
To demonstrate her point, she explains the shift to cloud computing and noted the way Apple’s products are sold and presented to show association with counterculture, independence, digital innovation, and sustainability, a strategy used by many organizations.
This marketing strategy is now being used to showcase AI as an environment-friendly concept.
The CEO of Nvidia, Jensen Huang, touted AI-driven "accelerated computing"—what his business sells—as more affordable and energy-efficient than "general purpose computing," which he claimed was more expensive and comparatively worse for the environment.
The latest Cowen research report claims that AI data centres seek power, which is more than five times the power used in a conventional facility. GPUs supplied by Nvidia consume around 400 watts of power, making one AI server consume at least 2 kilowatts of power. Apparently, a regular cloud server uses around 300-500 watts.
Russel further added, "There are things that come carted along with this, not true information that sustainability and digital innovation go hand-in-hand, like 'you can keep growing' and 'everything can be scaled massively, and it's still fine' and that one type of technology fits everyone."
As businesses attempt to integrate huge language models into more of their operations, the momentum surrounding AI and its environmental impact is set to rise.
Russel further recommended that companies should put emphasis on other sustainable innovations, like mesh networks and indigenous data privacy initiatives.
"If you can pinpoint the examples, however small, of where people are actually designing technology that's sustainable then we can start to imagine and critique these huge technologies that aren't sustainable both environmentally and socially," she said.