Business

(WASHINGTON) — The Justice Department’s historic antitrust case against Google is set to go to trial Tuesday as the government seeks to prove the Big Tech giant harmed American consumers by stifling competition to maintain its dominance as the internet’s leading search engine.

The lawsuit, originally brought by the Trump administration, alleged that Google acted as a “monopoly gatekeeper to the internet” for billions of users worldwide in part by using “anticompetitive tactics” by entering into exclusionary agreements with phone makers and other browsers to have Google as their default web searcher.

“Two decades ago, Google became the darling of Silicon Valley as a scrappy startup with an innovative way to search the emerging internet. That Google is long gone,” the government said in its initial 2020 complaint against the company.

“The Google of today is a monopoly gatekeeper for the internet, and one of the wealthiest companies on the planet, with a market value of $1 trillion and annual revenue exceeding $160 billion. For many years, Google has used anticompetitive tactics to maintain and extend its monopolies in the markets for general search services, search advertising, and general search text advertising—the cornerstones of its empire.”

Google has previously denied wrongdoing and described the Justice Department’s lawsuit as “deeply flawed,” that risked elevating “lower quality search alternatives,” raising phone prices and making it harder for consumers to use their preferred search engines.

Filings in the case indicate the bench trial before U.S. District Judge Amit Mehta could last at least nine weeks, in what will be a crucial test for the Biden Justice Department as it seeks to potentially further reign in other tech giants like Amazon, Apple and Meta over allegations of anti-competitive behavior.

The Justice Department under President Joe Biden has a second antitrust case still ongoing against the company that focused on its alleged monopoly over advertising technology, in which the company has also denied wrongdoing.

Judge Mehta previously dismissed some of the civil charges brought against the company, according to filings unsealed in the case last month, while allowing some of the more significant charges to proceed to trial.

It’s not immediately clear what a final ruling from Mehta could ultimately mean for the company, and the Justice Department has not been specific on what kind of relief it could seek should they get a full or partial victory after trial.

Experts have speculated that Mehta could order the company to discontinue any of its current default search agreements with phone companies, which net the company billions in revenue annually.

Mehta has said in previous orders that the department must make a showing at trial that the actions Google took were each intended to lock competition out of the web-browsing market.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Apple is set to release a new iPhone 15 model on Tuesday that delivers upgrades but also increased prices for some versions, analysts say. Fresh versions of the Apple Watch and AirPods are also expected to be unveiled.

The company’s latest smartphone is expected to feature an improved camera and a USB-C charging port, Bloomberg reported.

The top-end models of the iPhone 15, however, could deliver a sizable markup, Barclays analyst Tim Long said in a research note reviewed by ABC News.

The prices of the standard iPhone 15 and iPhone 15 Plus will remain unchanged, Long said.

But the price of the iPhone 15 Pro will rise as much as $100, bringing the total to $1,099; while the iPhone 15 Pro Max will jump as much as $200, catapulting its overall price to $1,299, Long added.

The pricier versions of the iPhone 15 will boast expanded storage, additional battery life, quicker data-transfer speeds and titanium frames, Long said, as the tech giant hopes to drive consumers toward the more expensive options.

The Pro models, Long added, will also run on the new A17 Bionic chipset processor.

All four versions of the iPhone 15 are expected to include the USB-C charging port, offering flexibility for consumers who seek to power their smartphone with a charger that also supports non-Apple products, Long said.

For the first time, the full set of iPhone models will also feature the Dynamic Island, a section at the top of the display that delivers alerts or progress updates, Long added.

Last year the company released the iPhone 14, featuring a Pro model that debuted the Dynamic Island as well as a 48-megapixel camera.

The product release event will take place at 1 p.m. ET on Tuesday, and can be viewed online at the Apple website. The iPhone 15 will go on sale around Sept. 22, Bloomberg reported.

On an earnings call, in February, Apple CEO Tim Cook said the company retains the ability to raise the price of the iPhone because it has become such a fixture of consumers’ daily routines. For instance, users store health and banking information on their smartphone and even use it as a payment tool, Cook said.

“The iPhone has become so integral into people’s lives,” Cook said. “So I think people are willing to really stretch to get the best they can afford in that category.”

The iPhone 15 announcement arrives as Apple faces a prolonged iPhone sales slump, however.

iPhone revenue fell 2.4% over three months ending in June, compared to the same period a year prior, Apple’s most recent earnings report showed. The results marked the third consecutive quarter of sliding iPhone sales.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — The Zeekr 009 is every American’s dream car. The ultra-luxe cabin comes with massage seats and satiny leather. Futuristic tech like face and voice recognition makes driving effortless. Plus, the capacious 009 packs more than 500 horsepower.

Haven’t heard of the Zeekr 009? You’re not alone. The all-electric minivan (repeat: all-electric minivan) is only sold in China.

Zeekr, owned by Chinese powerhouse Geely, also produces the 001, a sleek all-electric sedan that can travel 621 miles on a single charge. That’s more than double the range of an average EV in the U.S.

“There are so many EVs in China, it’s hard to count them,” Jared Rosenholtz, editor-at-large at CarBuzz, told ABC News. “There are vehicles of all shapes and sizes … many of these are not designed for U.S. market.”

There are 138 automakers in China, the No. 1 auto market in the world. At least 40 of the 138 are purely electric companies, according to J.D. Power. Last year, EV sales in China totaled 6.9 million units, an increase of 93.4% compared to the prior year, according to the China Association of Automobile Manufacturers.

“It’s a market that in many ways is kinda bonkers,” Ed Kim, president and chief analyst at AutoPacific, told ABC News. “EVs are exploding out there … it’s the Wild West. The sheer amount of choice is staggering. Companies in China are developing shockingly radical vehicles.”

Take the Zeekr 009, for example. Minivans are loathed in America. In China, they’re glorified. Minivans are “prestigious” modes of transport, said Kim, and many corporate execs and VIPs are chauffeured in them.

“The Zeekr 009 is the boldest minivan I’ve ever seen,” Kim noted. “A giant screen drops down for passengers. The second row is like a kingly throne. It’s extremely upscale and has all-wheel drive. This is not your mom’s Dodge Caravan.”

CarBuzz’s Rosenholtz pointed out, however, that many EVs in China are pint-size and have a fraction of the power Americans crave in their vehicles. One example is the GM Wuling Mini EV Cabrio, a cute convertible that General Motors builds with its joint venture, SAIC-GM-Wuling.

The car can barely hit 60 mph and makes less than 40 horsepower but it’s affordable — less than $9,000 — and is easy to maneuver around China’s congested city streets.

“The Wuling only has 106 miles of range for the top model but cars are used differently in China,” said Rosenholtz. “Consumers there drive shorter distances. They need small cars.”

Another key difference between Chinese and American EV drivers is the ability to charge overnight, added Kim. “China has extreme population density and even rich Chinese people live in apartments,” he said. “Chinese drivers don’t necessarily have access to home charging like we do in the U.S.”

In addition to electric minivans and adorable convertibles, Chinese automaker XPeng claims its G9 SUV is the “fastest-charging EV” in the world, with the ability to add 200 kilometers of range, or about 124 miles, in under five minutes at a 480-kilowatt charging outlet.

“There’s so little awareness of what’s in China, probably because of the language barrier,” said Kim. “Chinese media is also heavily censored and controlled.”

Plus, the U.S. tacks on a 25% tariff on Chinese imports, another barrier to accessing these newfangled EVs.

“Don’t hold your breath for an XPeng,” said Kim. “Most Chinese brands will be stuck over there.”

EVs have been more widely accepted in China partly because the government there “has pushed the EV cause so strongly,” said Kim. According to J.D. Power, the Chinese government no longer provides generous subsidies to electric vehicle buyers as of Jan. 1, though consumers are still entitled to a 10% purchase tax exemption until the end of the year.

Tesla, the undisputed EV leader in the U.S., is also insanely popular with Chinese motorists. It produces the sought-after Tesla Model Y and 3 at its local Shanghai factory and operates independently, unlike its overseas competitors.

“Tesla is one of the few foreign automakers having tremendous success in China,” Kim said.

Ford CEO Jim Farley recently acknowledged China’s outsized influence on the EV market, saying in May, “I think we see the Chinese as the main competitor, not GM or Toyota. The Chinese are going to be the powerhouse.”

Yet Tyson Jominy, vice president of data and analytics at J.D. Power, argued that U.S. consumers have a far greater selection of EVs to choose from, such as the GMC Hummer EV Pickup, Ford F-150 Lightning and the Rivian R1T truck. Moreover, “niche” and compact EVs that Chinese consumers drive would not fare well in the U.S. until the public charging infrastructure catches up, he said.

“We get the coolest EVs, in my opinion,” Jominy told ABC News. “Fun-to-drive, high-tech, performance orientated — that’s the U.S. market.”

If Chinese EVs are staying put in that country, Kim said he’s going to them, rather than wait.

“I would love a two-week vacation in China to sample all these EVs,” he said.

Copyright © 2023, ABC Audio. All rights reserved.

(AUSTIN, Texas) — Paqui, an Austin, Texas-based chip company famous for its viral Paqui “One Chip Challenge” product, is working with retailers to pull the tortilla chip from shelves, the company announced on its website.

The decision to remove the chip comes after a 14-year-old — Harris Wolobah — died in Massachusetts on Sept. 1, which his family believes is related to the Paqui “One Chip Challenge,” according to WCVB-TV, an ABC News affiliate.

Worcester Police confirmed Wolobah’s death is under investigation and that he died on the same day that he participated in the Paqui “One Chip Challenge.”

“The Paqui One Chip Challenge is intended for adults only, with clear and prominent labeling highlighting the chip is not for children or anyone sensitive to spicy foods or who has food allergies, is pregnant or has underlying health conditions,” the statement from Paqui read.

Paqui was selling single chip packages, and the “One Chip Challenge” involves seeing how long a person can go without eating or drinking after eating the hot pepper chip. The challenge went viral online and many videos show people as they attempt to eat the chip.

According to Paqui’s frequently asked question section on their website, the chip is seasoned with Carolina Reaper Peppers and Naga Viper Pepper. The site also said the peppers are “among the hottest peppers currently available,” with Carolina Reaper Peppers roughly 1.7 million Scoville Units and the Naga Viper Pepper at roughly 1.4 million Scoville Units, a unit used to measure the heat of peppers. A jalapeño registers between 2,500 and 8,000 Scoville Units, according to the National Institute of Standards and Technology.

Paqui explained they were pulling the chip since they had seen consumers not paying attention to the recommendations on the label.

“We have seen an increase in teens and other individuals not heeding these warnings. As a result, while the product continues to adhere to food safety standards, out of an abundance of caution, we are actively working with our retailers to remove the product from shelves,” the company’s statement continued.

Worcester District Attorney Joseph D. Early Jr. posted on X, formerly known as Twitter, on Tuesday to note the dangers of the chip.

“Medical professionals have said the tortilla chip, which is made from two of the spiciest chili peppers in the world, can cause very serious and dangerous side effects,” read Early Jr.’s post.

Early Jr. suggested parents warn their children not to participate in the viral challenge as “other states across the country have seen hospitalizations due to the chip challenge, including teens.”

In a statement announcing Wolobah’s death, Worcester Public Schools Superintendent Rachel Monárrez said: “As a mother and educator, I cannot imagine how hard this is on his family, friends and teachers. My heart goes out to all who knew and loved him.”

Paqui said the company is offering refunds on the “One Chip Challenge” product.

Good Morning America has reached out to Paqui for additional comment.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — The Walt Disney Company narrowed the scope of its lawsuit against Florida Gov. Ron DeSantis on Thursday to focus solely on its First Amendment claim that the governor politically retaliated against the company.

The lawsuit now focuses on the company’s claim that DeSantis and his allies allegedly retaliated against Disney for exercising its right to free speech under the First Amendment.

“A targeted campaign of government retaliation — orchestrated at every step by Governor DeSantis as punishment for Disney’s protected speech — now threatens Disney’s business operations, jeopardizes its economic future in the region, and violates its constitutional rights,” the lawsuit reads.

Last week, Disney, the parent company of ABC, asked to drop its other claims in the lawsuit, which centered on the company’s development contracts.

“We will continue to fight vigorously to defend these contracts, because these agreements will determine whether or not Disney can invest billions of dollars and generate thousands of new jobs in Florida,” a Disney spokesperson told ABC News in a statement.

The dispute between Disney and DeSantis started last year when Disney, under then-CEO Bob Chapek, opposed a new piece of legislation, titled the Parental Rights in Education Act, which sought to eliminate discussions of sexuality or gender identity in some K-12 classrooms. Critics denounced the legislation as the “Don’t Say Gay” bill, a name its supporters reject.

The state Legislature went on to pass a law, signed by DeSantis, to revoke Disney’s long-held special tax district in Florida.

In August, DeSantis said in a CNBC interview he had “moved on” from his battle with Disney, saying that Disney should “drop the lawsuit” it filed claiming a “targeted campaign of government retaliation” by his administration, which he has denied.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Snapchat announced new safeguards on its app Thursday to protect teens against unwanted contact and malicious online interactions. The measures aim to provide a more appropriate user experience for youth in the 13- to 17-year-old range as more teens use social media.

“What we’re really hoping to do … is to empower parents to be able to have conversations about online safety with their teens, to better understand Snapchat and to make the decisions that are right for them and their families as it relates to online safety,” says Nona Yadegar, director of Design, Strategy and Operations at Snap Inc.

The changes include in-app warnings that pop up when a teen receives a friend request from someone with no mutual contacts and stronger friending protections, which require 13- to 17-year-olds to have multiple mutual friends before showing up in each other’s online searches and friend suggestions.

“We’re really focused here today on making it harder for strangers to talk to teens,” says Yadegar. “Just like my parents talk[ed] to me about staying safe when going to the mall with friends, it’s really important for parents to talk to their kids about staying safe online and what that means.”

Snapchat will also implement a new strike system for taking down accounts promoting age-inappropriate content, where users can report suspect content and repeat offenders’ accounts will be banned. New in-app education content also explains certain online risks to minors and parents and shares resources to help hotlines.

“Knowing that we have a deep responsibility to teen safety, to their mental health motivates me every single day to make sure that we’re constantly pushing forward,” says Yadegar.

According to the U.S. Department of Health and Human Services — up to 95% of kids between 13 and 17 years old have reported using social media. With an uptick in social media usage, the industry has come under increased attention related to pitfalls in safeguarding youth interactions and mental health on the app, but parental advisers see this as a step forward for a safer online environment.

“This is important. Kids are going to have to work a lot harder to share their location and to connect with people that they don’t know. So this is progress,” says Rachel Simmons, a parenting expert.

Many say, though, that any software changes won’t diminish the importance of good parenting and its impact in helping kids grow up safely in a digital age.

“These changes to the apps are never going to be a substitute for parents checking in with their kids. Parents have to ask questions. They have to set time limits, and they have to sometimes be strict and not take their kids’ no for an answer,” says Simmons. “Kids make it just as hard for us to say no to them as the apps make it hard for kids to say no. So we all have to set boundaries with teenagers and make sure that they know our rules.”

The opinion that apps alone won’t solve everything is shared by Yadegar, who says that a one-size-fits-all solution doesn’t exist for an issue as complex as this.

“There’s no silver bullet to online safety. Online safety is constantly evolving. And so for us, we’re constantly learning and constantly seeking to make improvements because the safety of our community is paramount, and we’re always going to be doing more,” Yadegar said.

More details can be found at https://parents.snapchat.com/.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — The cost of a plane ticket is plummeting: Experts say domestic airfare for the fall is down 29% from the summer.

“That’s about $87 per ticket less expensive than trips taken in June, July, August — the peak summer months,” Haley Berg, economist at Hopper, told ABC News.

Berg says the drop in ticket costs is in part due to seasonal price changes, but also because of an international travel boom.

“This is the first full summer where folks could head to Europe, Asia with no visa requirements that are abnormal, no COVID-related testing requirements,” Berg said. “So many travelers who had been staying domestic last year and in the years prior now had new options to go international.”

The change also comes as flight cancellations subside nationwide. Over the summer, airlines reported canceled flights were below 2%, showing significant improvement from last summer.

Earlier this year, U.S. officials asked airlines to cut their schedules into New York airspace where the nation’s air traffic control workforce is currently limited. The reduced traffic allowed airlines to reduce delays and cancellations throughout the country.

Planning holiday travel

Experts say we are just weeks away from the ideal time to book holiday travel at the best price.

“You should be monitoring the price of your holiday travel now and expect to book in the next 4 to 6 weeks. You want to book both your Christmas and Thanksgiving travel by mid-October, but expect that prices will be the lowest between about Sept. 15 and Oct. 15,” Berg told ABC.

If the end of the year is still too expensive for you, Berg said she expects the beginning of next year to be even cheaper.

“If you have one of those tighter budgets, you’re thinking about travel, book something now or keep January in mind. January is absolutely the cheapest month of the year to take a trip,” she said.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Spicy foods deliver a unique feeling — not to be confused with flavor — and for those with pepper-preferential palates and with a wide range of capsaicin-filled foods, fast casual restaurants are tapping into the hot and tingly sensations when crafting new menu items to entice their heat-loving customers.

Shake Shack is on a hot streak with its slate of fiery foods, launching a new hot menu that includes the return of the fan-favorite Hot Chicken Sandwich.

In addition to the Hot Chicken Sandwich, executive chef and vice president of culinary innovation John Karangis created the new Spicy Shackmeister Burger, Spicy Fries with Ranch Sauce, and Spicy Cheese Fries with Ranch Sauce — all made with the signature Shake Shack hot pepper seasoning blend and balanced out by other fresh ingredients to calm and cool the palate.

The Hot Chicken Sandwich and Spicy Shackmeister Burger will be available for a limited time at Shack locations nationwide starting Friday, Sept. 8, and for fans who want an early taste, they can order now via the Shake Shack app.

Check out the full menu, descriptions and pricing details below:

Shake Shack’s New Hot Menu

Hot Chicken Sandwich: This sandwich is on a hot streak, returning to the menu for the fourth time. It’s made with crispy, white-meat chicken breast spiced with a hot pepper blend, topped with pickles and housemade cherry pepper slaw. Customers can order the sandwich nationwide for $8.39 on Sept. 8 or get early access via the app before Friday’s official release.

Spicy Shackmeister Burger: The patty is made with 100% Angus beef, spiced with the same Shake Shack hot pepper blend, topped with crispy onions, chopped cherry peppers and ShackSauce and costs $7.99 a la carte.

Spicy Fries with Ranch Sauce: The classic crispy crinkle cut fries are spiced with the hot pepper blend and served with a side of housemade Shack ranch sauce, starting at $4.09 per order.

Spicy Cheese Fries with Ranch Sauce: Much like the above spiced crinkle cut fries, this version is topped with a cheese sauce and served with Shack ranch sauce. It starts at $5.09 per order.

Copyright © 2023, ABC Audio. All rights reserved.

(SAN FRANCISCO) — With self-driving cars already here, San Francisco took another step forward recently, allowing companies to offer driverless taxi services in the city.

Last month, officials voted to allow two companies, Cruise and Waymo, to charge passengers to ride in their driverless cars across all of San Francisco, a city with over 800,000 residents.

ABC News’ Becky Worley took a ride with each so-called robotaxi service.

To book a ride with Waymo, a subsidiary of Alphabet, the parent company of Google, Worley used an app, just like any other rideshare service.

When her car pulled up without anyone inside, Worley commented how strange it was, saying, “There’s nobody here, so weird.”

Inside the car, Worley sat in the backseat and watched as the steering wheel, working on its own, navigated her to her destination.

The car made its way through a parking lot and a complicated intersection and maneuvered itself well after a motorcycle cut in front of the car, according to Worley.

“The first five minutes, I was paying attention like I was driving,” Worley said of the experience. “And then you sort of get used to it.”

Next, Worley tried a robotaxi operated by Cruise, which is owned by General Motors.

She ordered the car via an app and, again, sat in the backseat of a car with no one else inside.

As the car drove itself, Worley said it came to an abrupt stop at an intersection when a pedestrian on the sidewalk stepped into the street, seemingly without looking.

Worley described the stop as “abrupt” and “jarring” for her as a rider. Cruise told ABC News that their cameras were tracking the pedestrian the whole time and that the car acted as it is programmed to do, veering left and braking to keep a safe distance from the pedestrian.

Worley eventually arrived safely at her destination.

Since the launch of self-driving taxis in San Francisco, there have been safety issues with cars from both Cruise and Waymo. Recently, the city asked Cruise to reduce the number of its cars on the streets as they work out the technology.

Cruise told ABC News in a statement, “We are proud of our safety record, which encompasses more than 4 million driverless miles in complex urban environments.”

Waymo told ABC News it is also focused on safety, saying in a statement, “Safety is our mission and top priority as we develop and deploy this technology.”

In addition to San Francisco, both companies are testing out their services in smaller rollouts in cities including Atlanta, Nashville, Tennessee; Los Angeles, Miami and Phoenix.

Christine Crosby, a mom of two, said she is a fan of self-driving taxis, having been a rider in Waymo’s pilot program in San Francisco. She said she tried out the service on her own first, without her kids, ages 6 and 1, but now brings her with them.

“I take my kids in this thing all the time,” said Crosby, who has taken over 150 rides — and counting — in self-driving taxis.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Hillshire Brands Company has recalled nearly 15,876 pounds of blended meat and poultry smoked sausage products “that may be contaminated with extraneous materials, specifically bone fragments,” the U.S. Department of Agriculture’s Food Safety and Inspection Service announced Saturday.

The recalled 14-ounce packages of “HILLSHIRE FARM SMOKED SAUSAGE MADE WITH PORK, TURKEY, BEEF” were produced on June 14, 2023, according to the FSIS, and bear the establishment number “EST. 756A” and use by date “Nov 11 23” on the front of the package.

The agency said the recalled products were shipped to retailers in California, Maryland, New Mexico, New York, North Carolina, Pennsylvania and Virginia.

The FSIS reported that the problem was first discovered when Hillshire Brands notified the agency of “consumer complaints regarding bone fragments in the product.” The agency said it also received one consumer complaint regarding this issue.

“There has been one reported oral injury associated with consumption of this product. FSIS has received no additional reports of injury or illness from consumption of these products,” the agency stated in its recall announcement. “Anyone concerned about an injury or illness should contact a healthcare provider.”

Due to concerns that product may be in consumers’ refrigerators or freezers, the FSIS urged consumers who may have purchased the sausages not to consume them.

“These products should be thrown away or returned to the place of purchase,” the agency said.

A representative for Tyson Foods, the parent company of Hillshire, did not immediately respond to a request for additional comment.

Copyright © 2023, ABC Audio. All rights reserved.