Tech wrap: Is intellectual property being used to restrict competition?
EU regulators investigating Apple and Samsung over their patents dispute are worried intellectual property rights may be unfairly used by some firms against their rivals, the EU antitrust chief said. “We need to look at this because IP rights can be used as a distortion of competition but we will need to look at the answers,” EU Competition Commissioner Joaquin Almunia told reporters. “Apple and Samsung is only one case where IP rights can be used as an instrument to restrict competition,” he said.
Netflix’s shares dropped as much as 7 percent after it warned of a loss for 2012, a move that prompted several Wall Street analysts to cut their price targets for the online video and DVD rental company. Netlfix said that it had recently lost a “significant” number of customers, who objected to Netflix’s decisions to raise its prices and split up its streaming and DVD business — an idea it later dropped. “If we do not reverse the negative consumer sentiment toward our brand, and if we continue to experience significant customer cancellations and a decline in subscriber additions, our results of operations including our cash flow will be adversely impacted,” Netflix said. Netflix shares ended the day down 5.4 percent at $70.45.
Groupon stock slumped on concern about increased competition, leaving shares of the largest daily deal company close to their $20 initial public offering price. LivingSocial, Groupon’s closest rival, announced plans on Monday to offer 20 deals with national merchants on the crucial Black Friday shopping period. Groupon shares ended the trading day down nearly 15 percent.
Samsung Electronics, the world’s top TV maker, is in last-stage talks with Google to roll out its Google TVs, the head of Samsung’s TV division told reporters. Samsung in January displayed a new Google TV-enabled Blu-ray player and companion box at the Consumer Electronics Show, but did not commercialize the offerings. The company said it plans to unveil its Google TV at an event next year without elaborating on the schedule.