FTC Votes to Ban Non-Compete Agreements, Apple Cuts Vision Pro Forecast, Veeam Buys Coveware

[00:00:00] It's Thursday, April 25th, 2024 and I'm Dave Sobel.

[00:00:06] Three things to know today.

[00:00:07] The FTC votes to ban non-compete agreements predicting $300 billion wage increase annually.

[00:00:15] Apple cuts Vision Pro headset forecasts amid cooling demand and delays a cheaper model.

[00:00:21] And Veeam enhances cybersecurity posture with the acquisition of incident response

[00:00:26] firm Coveware.

[00:00:28] This is the Business of Tech.

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[00:01:37] The headline picks itself.

[00:01:39] The Federal Trade Commission has voted to ban nearly all non-compete agreements, which

[00:01:44] typically prevent workers from joining competing businesses or starting their own.

[00:01:48] FTC Chair Lena Kahn cited stories of workers being trapped in abusive workplaces

[00:01:54] due to non-competes.

[00:01:56] Later this year, the ban excludes existing agreements for senior executives.

[00:02:01] The FTC estimates that the policy change could increase wages by nearly $300 billion annually.

[00:02:09] The ban does not apply to existing agreements for senior executives, but companies cannot

[00:02:14] enter into or enforce new agreements.

[00:02:18] Conservative lawyer Eugene Scalia has already sued the FTC over the ban, aiming to have

[00:02:23] the rules struck down.

[00:02:25] The case will likely be appealed and potentially reach the Supreme Court.

[00:02:29] The US Chamber of Commerce also opposes the ban, arguing that non-competes protect

[00:02:34] trade secrets and incentivize employer investment in training.

[00:02:38] I want to cover a couple of other legislative moves while on the topic.

[00:02:45] The National Institute of Standards and Technology has updated its digital identity

[00:02:49] guidelines clarifying the use of syncable authenticators for stronger multi-factor authentication.

[00:02:56] The supplement addresses the lack of support for synced pass keys in the current guidelines

[00:03:01] and aims to help agencies improve authentication to online services.

[00:03:06] The update could pave the way for agencies to adopt passwordless authentication models

[00:03:10] endorsed by the FIDO Alliance.

[00:03:13] The new supplement is expected to remove barriers to adoption and facilitate phishing-resistant

[00:03:18] multi-factor authentication in the US government.

[00:03:23] Small business trends is reporting that there is growing concern among recipients of

[00:03:27] Payment Protection Program, or PPP loans, about potential audits, as up to one-third

[00:03:33] of the loans have shown signs of possible fraud.

[00:03:37] The Small Business Association, or SBA, can audit borrowers' compliance with eligibility

[00:03:43] and usage requirements.

[00:03:46] Accounts that use at least 60% of their loan for payroll expenses may be eligible

[00:03:50] for loan forgiveness.

[00:03:52] Delinquent loans are being referred to the Treasury Department for collection.

[00:03:57] If audited, borrowers will receive notice from their lender and should start compiling

[00:04:01] a requested documentation to avoid delays.

[00:04:05] The Justice Department's National Institute of Justice is seeking public input on using

[00:04:11] artificial intelligence in the criminal justice system.

[00:04:14] This request for feedback is part of President Joe Biden's efforts to strengthen AI and

[00:04:18] civil rights.

[00:04:19] A report will address various aspects of AI in the criminal justice system and recommend

[00:04:25] best practices and additional actions.

[00:04:28] Comments are due within 30 days of the document's publication.

[00:04:32] I'll circle back after it happens, but today, the Federal Communications Commission

[00:04:37] is expected to vote to restore net neutrality by reclassifying Internet service providers

[00:04:43] as common carriers under Title II of the Communications Act.

[00:04:48] Why do we care?

[00:04:50] The headline is none competes.

[00:04:52] I am no lawyer, so I won't predict how that part of it will play out.

[00:04:56] I will say that as a business owner, I wouldn't be pushing these on employees now.

[00:05:01] They're generally considered difficult to enforce, so why not make this a benefit,

[00:05:05] flip the script and make it a positive?

[00:05:09] I also wanted to highlight the PPP concerns.

[00:05:12] One should have expected that the program would have some audit teeth.

[00:05:15] It was never entirely free money.

[00:05:19] It was a government program, and that would come with paperwork.

[00:05:23] I also wanted to circle back around for spatial computing, because it appears after

[00:05:29] all the noise, well, Apple's Vision Pro mixed reality headset, which initially drew

[00:05:36] crowds and sold out quickly, is now experiencing plummeting interest and sales.

[00:05:41] Some retail stores are struggling to sell even a handful of units in a week, and demand

[00:05:45] for demos has significantly decreased.

[00:05:49] Complaints from customers include impracticality in everyday life, discomfort, difficulty finding

[00:05:54] apps, and a sense of isolation.

[00:05:57] Apple is reportedly cutting its Vision Pro headset shipment forecast for the rest

[00:06:01] of the year due to cooling demand.

[00:06:04] The company expects to sell only around 400,000 to 450,000 units in 2024 compared

[00:06:11] to the previous market consensus of 700,000 to 800,000.

[00:06:15] This unexpected drop in demand has led Apple to adjust its headset roadmap and may delay

[00:06:20] the release of a lower-cost mixed reality headset.

[00:06:25] Meta has announced that its VR OS, now Horizon OS, will be open to third-party

[00:06:31] manufacturers, allowing future headsets from Asus, Lenovo and Microsoft to connect via

[00:06:36] the same MetaQuest app.

[00:06:39] The move aims to expand Meta's footprint and compete with other players in the VR

[00:06:43] AR market, such as Apple, Sony, Google and Samsung.

[00:06:48] Meta is also introducing changes to its Quest Mixed Reality software.

[00:06:52] It includes a more visible App Lab and an open Mixed Reality framework for better

[00:06:57] AR-like experiences on future headsets.

[00:07:01] A survey by Piper Sandler reveals that the use of VR devices among teenagers in the

[00:07:05] U.S. has increased, with weekly usage growing from 10% to 13% compared to the previous

[00:07:11] year.

[00:07:12] The study also shows that 33% of U.S. teenagers own a VR device.

[00:07:18] Why do we care?

[00:07:19] The hype around the Vision Pro has faded and virtually disappeared from public conversation.

[00:07:25] Apple is working on addressing some of the issues, but the lack of popular apps

[00:07:29] is the headline.

[00:07:31] There is something in this space and I've been consistent in that the key is use case.

[00:07:37] That use case has yet to emerge.

[00:07:40] Let's keep an eye on this space.

[00:07:41] We care to wait for the use case.

[00:07:46] Veeam has acquired Coveware, adding incident response capabilities to its data protection

[00:07:52] offerings.

[00:07:53] This acquisition aims to enhance Veeam's ability to help customers respond to and

[00:07:57] recover from cybersecurity incidents.

[00:08:00] Microsoft will drop support for the Classic Teams desktop app on July 1, 2024.

[00:08:06] Windows 7, 8, 8.1 and Mac OS Sierra, also 10.12, users will be blocked from accessing

[00:08:15] Classic Teams starting October 23, 2024.

[00:08:20] The new Teams desktop client, which offers faster performance and additional features,

[00:08:24] has been rolled out and is made available online.

[00:08:27] Microsoft is also testing a unified Teams client for personal and work accounts, which

[00:08:32] is expected to ship with Windows 11 version 24H2.

[00:08:37] Microsoft is rolling out ads in the Start menu of Windows 11 to all users.

[00:08:43] These ads, called Recommendations, promote apps from the Microsoft Store and aim to

[00:08:47] help users discover more apps.

[00:08:50] While the ads can be disabled, Microsoft plans to push the update, enabling them

[00:08:54] to be used on all Windows 11 machines in the coming weeks.

[00:08:59] Why do we care?

[00:09:01] These are your tactical updates to run an IT services organization.

[00:09:05] Go forth and use the information.

[00:09:09] With as many breaches and security concerns as I report on this show, it should be

[00:09:13] obvious that cybersecurity is not just about technology, but also the human expertise

[00:09:19] needed to interpret and respond to complex threats.

[00:09:23] Huntress is focused on elevating SMBs and MSPs around the world.

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[00:09:49] Want to know more about the platform?

[00:09:50] Visit Huntress.com slash MSB radio to learn more.

[00:09:57] Thanks for listening.

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