Last week, there were another series of tweets from the President-elect, one of which was about a $50 billion investment from foreign parties including Japanese conglomerate Softbank. It’s expected that this will also lead to 50K new jobs in the country.

Twitter CEO Jack Dorsey can heave a sigh of relief because the President-elect going to the platform has driven a huge number of people to follow his tweets leading to much more traffic on the platform. While hurt sensibilities have driven some to demand a removal of his Twitter handle, others have welcomed the updates. Whatever the sentiment, people have built conversations around them leading to a strong likelihood of increasing monthly active users on the platform. No wonder Dorsey sees Trump’s Twitter usage as “fascinating” and “complicated.”

But last week really wasn’t about Twitter; instead there were major developments involving Microsoft.

So here are the top stories-

EU Approves Microsoft LinkedIn Deal

Microsoft (MSFT Quick QuoteMSFT - Free Report) just scored a huge win by securing EU approval for its largest-ever acquisition. Approval for the deal, which has already been received in the U.S., Canada, Brazil and South Africa, didn’t come free however. Some of the concessions that Microsoft made, and which appear to be in line with its new goal of creating truly open web-based services, while competing on quality alone, were as follows:

In order to ensure free and fair competition in the social networking space, Microsoft promised a) that it would keep its Office add-in program available to third-party professional social networking providers, so developers can continue to integrate those services into Outlook, Word, PowerPoint and Excel; b) allow third-party social networking providers to promote their services in the Office Store; and c) not prevent users from uninstalling LinkedIn apps and tiles.

In order to provide maximum choice to IT professionals, administrators and other users: They will be able to decide whether they want to add/display LinkedIn profile and activity information in the user interface if/when Microsoft provides such integrations to Office.

In order to provide maximum choice to hardware makers and promote competition: Microsoft agreed not to force PC manufacturers to exclusively pre-install LinkedIn apps or tiles in the European Economic Area (EEA). Given the broad-based use of Windows, Microsoft also agreed not to use it as a tool to prompt users to install the LinkedIn app, though it will employ other means to encourage people to use it. The app will be available in the Windows Store.

Most of the opposition came from Salesforce.com, and with good reason. The company is head and shoulders above every other player in the CRM space, with Oracle and SAP providing minimal competition and Microsoft Dynamics being even more inconsequential. It has a huge cloud-based network of vendors that allows it to attract the really big players and of course charge premiums for the service.

The problem is, LinkedIn’s Sales Navigator, which provides insights for social selling of services by diving into its huge data pool, is used by both Salesforce and Microsoft Dynamics. So once Microsoft integrates it with Office, it becomes a powerful platform with the ability to really take on Salesforce. So the acquisition actually promotes competition, and this is exactly the line Microsoft took to get the deal cleared.

Margrethe Vestager is clear on the data issue: “Companies need to make sure they don’t use data in a way that stops others competing…But that doesn’t mean there’s a problem, just because you hold a large amount of data.”

Read More: Microsoft Closes LinkedIn Acquisition for $26.2B

Qualcomm Challenge to Intel

Qualcomm (QCOM Quick QuoteQCOM - Free Report) had a couple of announcements for the mobile computing and server markets that should make Intel (INTC Quick QuoteINTC - Free Report) rather uncomfortable. Not that Chipzilla has been totally unaware of the goings on, but still.

First, on the mobile computing side, Qualcomm announced at the WinHEC (Windows Hardware Engineering Community) conference in Shenzhen that its Snapdragon processor will now be able to run the full Windows 10 64-bit Enterprise Edition on mobile devices using emulation software. While the first partner is Qualcomm, others making ARM processors will also be able to run Windows.

So this greatly increases tensions for Intel, which has suffered significant setback from the mobile market eating into its core PC business. What it just didn’t need was these devices to be able to function like Intel-powered desktops, or almost. It’s also bad news for Google because Microsoft may be able to take over the Android phones, most of which run on Qualcomm. For Microsoft, it’s pretty fantastic, because now it has a completely BYOD model.

Second, on the server side, Qualcomm announced a chip called Centriq 2400 (10nm server processors with 48 cores built on proprietary CPU architecture) that is currently in beta. Volume shipments are expected in the back half of 2017. The company will, most like tap TSM for the production, since the relationship goes back several years. Intel hasn’t seen very strong demand in the enterprise market of late, which may or may not be on account of macro concerns. Qualcomm announced its intention to enter the server market quite some time back and most Intel customers will want to second source, or at least consider the alternative to get better pricing from Intel. Snatching share in the segment isn’t easy however; others (Samsung, NVIDIA, Broadcom, AppliedMicro’s acquirer Macom) have tried and failed. The current survivors are Cavium and AMD, with the latter being rumored to be nearing a deal with Intel (on graphics chips, but we don’t know the details yet).

Read More: Can Qualcomm Take Intel's Share in the Data Center Market?

Intel AMD Deal

It’s being rumored that Intel has agreed to license Advanced Micro Devices’ (AMD) graphics technology as its NVIDIA (NVDA) license draws to a close in March 2017. Intel was forced into the licensing relationship with NVIDIA after it was adjudged that its graphics technology infringed on NVIDIA patents. At the time, the court asked Intel to pay $1.5 billion over 5 years.

NVIDIA and AMD hold virtually all the patents for basic graphics technology, so it’s widely believed that Intel could easily replace one with the other. Since Intel these days is increasingly pitted against NVIDIA in servers and self driving cars, AMD would be a good option.

Read more: Intel-AMD Deal Would Be a Win-Win

Computer and Technology Sector Price Index

Computer and Technology Sector Price Index

Other stories -

Corporate

Apple Working with China: Xinjiang Goldwind Science & Technology reportedly sold Apple (AAPL Quick QuoteAAPL - Free Report) its stakes in four project companies or wind turbine fields in across four Chinese provinces, including Henan, Shanxi, Shandong and Yunnan. The output from the projects is expected to be 285 megawatts and will be sold to factories making Apple products. Convincing the factories to use renewable energy isnt easy, but Apple has already signed on Foxconn, its largest iPhone assembler. Apple says that 93% of its global operations now use clean energy.

Apple Manufacturing in U.S.:  Foxconn has issued a statement confirming that “we are in preliminary discussions regarding a potential investment that would represent an expansion of our current US operations.” It also said that “While the scope of the potential investment has not been determined, we will announce the details of any plans following the completion of direct discussions between our leadership and the relevant U.S. officials”, and “Those plans would be made based on mutually-agreed terms.”

Apple Flagship Store at Carnegie Library: The District's convention and sports authority has decided to grant Apple permission to renovate the 113-year old building across the street from the Washington Convention Center to make it into a global flagship store. The lease will likely include a 10-year term with two five-year extensions.

Google Focus on Clean Energy: Google has power purchase agreements for 2.6GW of renewable energy as the company races on to become totally green next year. Management has earlier stated that it uses algorithms to determine the most efficient energy use and today, its data centers are 50% more efficient than the industry average. But with solar and wind power prices declining and more projects coming online, many other companies will soon be jumping on the bandwagon. If only President elect Trump doesn’t get in the way.

VR Consortium: Facebook , Alphabet (GOOGL Quick QuoteGOOGL - Free Report) , Sony, Samsung, HTC and Acer announced the formation of the Global Virtual Reality Association (GVRA) to promote the development and adoption of VR technology. Just as well because this is a really hot market with IDC projecting a 183.8% CAGR from 2016 through 2020. Read more: Leading Virtual Reality Developers Create Global Consortium

Facebook’s Fake News Identifier: Fake news is a real problem, not only because it camouflages the truth and confuses people but also because it leads to serious violence at times. Facebook has taken a dubious measure to flag items that may be fake news. It’s not clear why university students are considered the most experienced and a highly probable backlash seems to be the needless politicizing of university campuses.

Facebook does recognize that it’s a complex thing, but it’s concerning that the stated goal is to promote “refugee” points of view. Moreover, Facebook executives have voiced the idea that students know what’s going on and are good influencers, making for strong voices.

Separately, Facebook, Google, Microsoft and Twitter are getting together to identify the images, video and other content that constitutes extremist content, create a database of such content and delete it. Whenever such content is shared on any platform, it will be deleted by all the platforms. The idea is to curb terrorist recruitment that has been rampant on social networks.

Facebook Startup Campus in Paris: Facebook has joined several VC firms to invest in the French billionaire Xavier Niel-backed Station F, a startup campus in Paris. The 34,000 square meter freight station from the 1920s will now be converted to accommodate a thousand startups. Also in the plans are over 3,000 desks, some private offices and meeting rooms, a 360-person auditorium for events, a 1,000-seater restaurant and an always-open bar.

Amazon Grocery Retail: Amazon may not be looking to build 2K grocery stores as the online retailer has confirmed, but it is definitely looking at different store concepts. One such concept called Amazon Go will be ready to launch in early 2017. The store will be employing what it calls the “Just Walk Out” Technology, which requires users to check into the store by scanning their mobile phones.

Thereafter, Amazon will use a combination of computer vision, deep learning algorithms and sensor fusion to track the items they pick off the shelves and automatically charge the customer through their mobile phones as they leave the store. Read more on the topic: Are Traditional Convenience Stores Threatened by Amazon Go?

Alibaba in Thailand: Alibaba has got into an agreement with the Thai government that will see it help in the development of the ecommerce industry. Specifically, it will help train SMEs and individuals, and explore ways to enhance the country’s logistics capabilities. Thailand already has a big community of online shoppers and has taken steps to increase digitization. Alibaba’s services are one of the ways the government seeks to support the Thailand 4.0 and Digital Economy initiatives.

Legal/Regulatory

California Environment Authority Fines Apple: Apple is paying California's Department of Toxic Substances Control $450K to settle a case wherein the environmental regulators alleged that it operated and closed two hazardous-waste processing plants without submitting the proper paperwork. The plant apparently processed around 1.1 million pounds of electronic waste created by Apple's devices during a two-year period before moving operations to Sunnyvale, but Apple didn’t follow necessary protocol until 803K pounds of waste was already created.

iPhone Case Lost in Denmark: Apple apparently exchanged a new iPhone that wasn’t working properly with a refurbished phone. It’s hard to believe that Apple would do such a thing given its reputation and brand value, but the company actually lost the case. The court ruled that it must exchange a faulty new phone with a working new phone and not a refurbished one.

Samsung Consolation in Apple Fight: The Supreme Court has unanimously decided that the $399 million granted by a lower court to Apple for infringement of patent designs were excessive as they amounted to the entire amount of profits from the device, which also included many other components. Technology companies like Dell, Facebook and Google filed court brief in favor of Samsung, while design-focused companies like Crocs, Tiffany and Adidas sided with Apple. The Supreme Court hasn’t decided the case, but sent it back to a lower court.  

New Technology/Products

Instagram’s Anti-Harassment Feature: Users can now block comments or remove followers when discussions get out of control. This empowers a user to decide who they want to talk to and when to get out of an unwanted confrontation.

Facebook Occulus Touch: Facebook’s $199 Occulus Rift companion went on sale last week with the goal of bridging the gap between a user’s real and virtual hands. Perfect for gamers and Facebook knows it: the company released alongside 54 games and experiences “designed to make immersion and social interaction more authentic.” 

Google’s Drone-Based Food Delivery Service: Google is on the verge of launching Project Wing, which is a fleet of drones that it will maintain for restaurant delivery at $6 a trip. Wing is part of Google’s moonshots lab called X, but it seems to be a part ready to take off. Google has already approached companies like Dominos Pizza, Whole Foods and other fast food establishments, so deliveries may start soon. A test run with Chipotle’s Burrito went off satisfactorily.

M&A and Collaborations

Apple-Square Partnership: Square offers an app called Square Cash that can send or receive money directly and immediately from an account linked to their debit card. With Apple Pay integration, users can now make Square-based payments at any vendor accepting Apple Pay, thus significantly expanding reach. For Apple, it’s a way to get more users onto the platform.

Google-Slack Get Together to Fight Microsoft Teams: Google and Slack have been deepening their relationship for some time and since Microsoft’s launch of Teams, this integration has started making more sense. Last week saw the two teams agreeing to do more together. Accordingly, Slack users will now see G Suite working better for them. Google’s Drive Bot will inform users when a file has been modified so they can approve, reject and settle comments in Slack, rather than opening Google Docs.

Sharing files on Slack will become easier, with Slack messaging users to remove incompatibilities. Uploading files on Slack will get them upgraded on Drive. And lots of other great stuff. Read more about it here: Google Partners Slack to Dive Deeper into Workplace Market

Some Numbers

Apple Music Paid Subscribers: In interviews with the BBC and Billboard, Apple executives have said that Apple Music subscribers are now 20 million, i.e. up 3 million from the 17 million that it ended the September quarter with. These numbers are pretty good, especially when you consider that Spotify, which has been around for much longer has just 40 million paid subscribers as of its September statement.

iPhone U.S. Market Share: A Kantar Worldpanel report says that Apple has grown its lead in the U.S. smartphone market. iPhone sales represented 40.5% of smartphone sales in the three months ending October up from 33.5% last year. Moreover, since Kantar’s estimates are for the quarter ending in October, it includes more iPhone 7 numbers, indicating that the phones did well. The firm estimates that the iPhone 7 was the top-selling device during the period, accounting for 10.6% of smartphone sales, while the iPhone 7 Plus placed fourth with 5.3%.

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