E-commerce

Whoa. This was unexpected: Amazon has agreed to a stock takeover of Zappos.com, a Las Vegas-based online retailer that has become famous for its unusual corporate culture.

While Zappos started out selling only shoes, it has since expanded to other products.

"This morning, our board approved and we signed what's known as a 'definitive agreement,' in which all of the existing shareholders and investors of Zappos (there are over 100) will be exchanging their Zappos stock for Amazon stock," a memo posted to Zappos by CEO Tony Hsieh read. "Once the exchange is done, Amazon … Read more

Riding the success of the iPhone, AT&T, apart from trying to keep the phone exclusive, seems to be learning from Apple in another way--its retail stores.

The company announced Monday that it has done a major makeover to more than 2,200 retail locations across the country. The aim is to provide consumers and small-business customers with a better hands-on experience when shopping for devices and service plans.

According to the telecom giant, the overhaul brings a refreshed, more intuitive organization of products and services. For example, all wireless devices now show up on new power-enabled displays, making … Read more

Much is being made this Friday over Amazon's move to essentially forcibly recall two e-books that some customers had purchased.

According to multiple reports, Amazon removed the books from users' accounts after the publisher decided to pull its e-book. (My favorite headline, by the way, was Seattlest's "Amazon's Kindle: Now with new take-backsies feature".)

The publisher is certainly within its rights to stop selling the e-book and certainly Amazon needs to honor those wishes. But its hard to understand by what rights the retailer can remove the book from those who have already purchased one … Read more

If you want to quickly buy a phone, or just check out what AT&T and Verizon Wireless have to offer, it just got a little more convenient.

Amazon announced Thursday its beta launch of AmazonWireless, a new Web site that offers cell phones and service plans from, for now, AT&T and Verizon Wireless. The online store features Amazon-style shopping, without the rebate hassles that cell phone carriers are notorious for, and free two-day shipping on a large selection of phones.

During this beta-testing phase, Amazon plans to expand the selection of phones and services as well … Read more

Seven online merchants operating more than 40 Web sites have agreed to pay a $765,000 settlement following an investigation by the New York State Attorney General's office, the AG's office said.

"These companies engaged in the worst kinds of consumer fraud, from classic bait-and-switch schemes to blatant lies and bullying sales tactics," New York Attorney General Andrew Cuomo said in a news release that went out Thursday. "Let this be a message to online merchants everywhere: such abuse of consumers and violation of the law will not be tolerated."

All of the companies were based in Brooklyn, and while their names invoke digital photography, many also sell gear ranging from projectors to HDTVs and computers.

Five of the companies--Best Price Camera, Foto Connection, 1 Way Photo, 86th Street Photo, and Broadway Photo--agreed to change their business practices, according to the release, while the other two--Camera Wiz and Sonic Photo--will close. A full list (PDF) of the companies and Web sites involved in the settlement is available at HDGuru.com.… Read more

The U.K.'s Virgin Media could start suspending persistent file sharers on a temporary basis, using information provided to it by Universal Music.

The ISP announced on Monday that it would, before Christmas, launch an all-you-can-eat music download service for its users, based on a monthly subscription fee. The tracks will all be DRM-free.

"In parallel, the two companies will be working together to protect Universal Music's intellectual property and drive a material reduction in the unauthorized distribution of its repertoire across Virgin Media's network," a statement read. "This will involve implementing a range … Read more

Google, the company best equipped and most motivated to digitize the world's books, wants to offer the world an online Library of Alexandria. The decisions of the Justice Department, authors, book publishers, a federal judge, and Google itself likely will determine whether the company actually does.

Nobody in recent years has accused Google of lacking ambition, but its Google Book Search project is certainly among the company's top projects when it comes to chutzpah. That's not just because of the technical and financial hurdles of scanning, indexing, and displaying online millions of books, it's also because of the tangled intellectual property and legal concerns involved in the controversial project.

After revealing the book-search project in 2003, Google drew copyright infringement lawsuits from the Authors Guild and the Association of American Publishers in 2005, but an October 2008 proposed settlement, now under review by Judge Denny Chin of the U.S. District Court for the Southern District of New York, has converted those groups from adversaries to allies.

The settlement, if approved, could neatly cut a Gordian knot of copyright entanglements though setting Google back $125 million. That's because it would enable Google not only to display books that are out of copyright and those that are in print by cooperating publishers, as it does today, but also those from the vast collection of in-copyright brooks that are out of print--even when those holding rights to those books didn't specifically agree to Google's plan.

The complicated proposed settlement invoked the wrath of some authors concerned it would grant Google monopolistic power over online publishing, and the court extended the deadline for authors to choose whether to opt out of the settlement from May to September. Then the other shoe dropped this month: the Justice Department signaled serious antitrust scrutiny by issuing subpoena-like civil investigative demands, or CIDs, to check into the matter.

AIG and General Motors apparently are too big to fail. But the way the opposition to Google Book Search is shaping up, it looks like some believe Google is too big to succeed. … Read more

When it comes to backing up your computer, it's probably safest and most convenient to use a cloud storage service where you store data at remote location via the Internet. However, there's a big obstacle: bandwidth. With most existing broadband services, it can take a couple of hours to upload a few gigabyte of information.

This might change in the near future.

Asankya, a network service company, announced Wednesday that it has improved its parallel networking technology to deliver up to 40 times throughput improvement for Internet-based applications. This, if true, would solve the biggest challenge that hinders … Read more

Amazon Web Services has unveiled a new service that lets users physically ship their data on drives, to be uploaded to the company's cloud-based S3 storage facilities.

AWS Import/Export, currently in beta, was announced on Thursday. In an Amazon Web Services (AWS) blog post, the team noted that "hard drives are getting bigger more rapidly than Internet connections are getting faster," and said a service such as Import/Export had been frequently requested by customers who wanted their data to be remotely hosted, but who had storage requirements at the terabyte and petabyte level.

"It … Read more