China Trials Cargo Drones, Air Taxis as Low-altitude Economy Gains Speed

An unmanned cargo aircraft developed by Sichuan Tengden Sci-tech Innovation Co. takes part in a maiden flight at an airport in Zigong, Sichuan province, China August 11, 2024. China Daily via REUTERS
An unmanned cargo aircraft developed by Sichuan Tengden Sci-tech Innovation Co. takes part in a maiden flight at an airport in Zigong, Sichuan province, China August 11, 2024. China Daily via REUTERS
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China Trials Cargo Drones, Air Taxis as Low-altitude Economy Gains Speed

An unmanned cargo aircraft developed by Sichuan Tengden Sci-tech Innovation Co. takes part in a maiden flight at an airport in Zigong, Sichuan province, China August 11, 2024. China Daily via REUTERS
An unmanned cargo aircraft developed by Sichuan Tengden Sci-tech Innovation Co. takes part in a maiden flight at an airport in Zigong, Sichuan province, China August 11, 2024. China Daily via REUTERS

Engineers sent China's biggest-yet cargo drone on a test run over the weekend while a helicopter taxi took to the skies on a soon-to-open 100-km (62-mile) route to Shanghai, laying new milestones for the country's expanding low-altitude economy.
Packing a payload capacity of 2 metric tons, the twin-engine cargo drone developed by state-funded Sichuan Tengden Sci-tech Innovation Co took off in southwestern Sichuan province on Sunday for its inaugural flight that lasted approximately 20 minutes, state media reported.
The Tengden-built drone, with a wingspan of 16.1 m (52.8 ft) and a height of 4.6 m (15 ft), is slightly larger than the world's most popular light aircraft, the four-seat Cessna 172, Reuters said.
Manufacturers in the world's top drone-making nation are testing ever larger payloads while transport companies are planning air taxi services both manned and unmanned as China loosens airspace curbs and grants incentives to build up a low-altitude economy. Its aviation regulator foresees a 2-trillion-yuan ($279-billion) industry by 2030, for a four-fold expansion from 2023.
The Tengden trial run followed the maiden flight in June of a cargo drone developed by state-owned Aviation Industry Corp of China (AVIC), the leading aerospace enterprise.
The AVIC's HH-100 has a payload capacity of 700 kg (1,543 pounds) and a flight radius of 520 km. Next year, AVIC plans to test its biggest cargo drone, the TP2000, which can carry up to 2 tons of cargo and fly four times farther than the HH-100.
China has already begun commercial deliveries by drone.
In May, cargo drone firm Phoenix Wings, part of delivery giant SF Express, started delivering fresh fruit from the island province of Hainan to southern Guangdong using Fengzhou-90 drones developed by SF, a unit of S.F. Holding.
Cargo drones promise shorter delivery times and lower transport costs, Chinese industry insiders say, while widening deliveries to sites lacking conventional aviation facilities, such as rooftop spaces in heavily built-up cities.
They could also ferry people on taxi services.
In April, aviation authorities issued a production certificate to unmanned aerial vehicle (UAV) maker EHang Holdings, based in the southern city of Guangzhou, for its passenger-carrying drone, China's first such certification for an autonomous passenger drone.
In a report this year, the government identified the low-altitude economy as a new growth engine for the first time, with vertical mobility seen as a "new productive force" in areas such as passenger and cargo transport.
On Saturday, a manned commercial passenger helicopter took off for the first time from Kunshun, a city in Jiangsu province, to Shanghai Pudong Airport, state media said.
For one-way fares of up to 1,800 yuan, Shanghai NewSky Heli Co aims to cut travel time between the cities to 20 minutes from several hours. As many as 30,000 passengers a year are forecast to use the route, which opens on Aug. 18.
Shanghai aims to expand low-altitude routes to cover other cities in the Yangtze River delta.



Google Has an Illegal Monopoly on Search, US Judge Finds

A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)
A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)
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Google Has an Illegal Monopoly on Search, US Judge Finds

A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)
A close-up shows the Google logo on a smartphone in Berlin, Germany, 07 July 2020 (reissued 05 August 2024). (EPA)

A US judge ruled on Monday that Google violated antitrust law, spending billions of dollars to create an illegal monopoly and become the world's default search engine, the first big win for federal authorities taking on Big Tech's market dominance.

The ruling paves the way for a second trial to determine potential fixes, possibly including a breakup of Google parent Alphabet, which would change the landscape of the online advertising world that Google has dominated for years.

It is also a green light to aggressive US antitrust enforcers prosecuting Big Tech, a sector that has been under fire from across the political spectrum.

"The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," US District Judge Amit Mehta, Washington, DC, wrote. Google controls about 90% of the online search market and 95% on smartphones.

The "remedy" phase could be lengthy, followed by potential appeals to the US Court of Appeals, District of Columbia Circuit and the US Supreme Court. The legal wrangling could play out into next year, or even 2026.

Shares of Alphabet fell 4.5% on Monday amid a broad decline in tech shares as the wider stock market cratered on recession fears. Google advertising was 77% of Alphabet's total sales in 2023.

Alphabet said it plans to appeal Mehta's ruling. "This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available," Google said in a statement.

US Attorney General Merrick Garland called the ruling "a historic win for the American people," adding that "no company - no matter how large or influential - is above the law."

White House press secretary Karine Jean-Pierre said the "pro-competition ruling is a victory for the American people," adding that "Americans deserve an internet that is free, fair, and open for competition."

BILLIONS PAID

Mehta noted that Google had paid $26.3 billion in 2021 alone to ensure that its search engine is the default on smartphones and browsers, and to keep its dominant market share.

"The default is extremely valuable real estate," Mehta wrote. "Even if a new entrant were positioned from a quality standpoint to bid for the default when an agreement expires, such a firm could compete only if it were prepared to pay partners upwards of billions of dollars in revenue share and make them whole for any revenue shortfalls resulting from the change."

He added, "Google, of course, recognizes that losing defaults would dramatically impact its bottom line. For instance, Google has projected that losing the Safari default would result in a significant drop in queries and billions of dollars in lost revenues."

The ruling is the first major decision in a series of cases taking on alleged monopolies in Big Tech. This case, filed by the Trump administration, went before a judge from September to November of last year.

"A forced divestiture of the search business would sever Alphabet from its largest source of revenue. But even losing its capacity to strike exclusive default agreements could be detrimental for Google," said Emarketer senior analyst Evelyn Mitchell-Wolf, who said a drawn-out legal process would delay any immediate effects for consumers.

In the past four years, federal antitrust regulators have also sued Meta Platforms, Amazon.com and Apple, claiming the companies have illegally maintained monopolies. Those cases all began under the administration of former President Donald Trump.

Senator Amy Klobuchar, a Democrat who chairs the Senate Judiciary Committee's antitrust subcommittee, said the fact that the case spanned administrations shows strong bipartisan support for antitrust enforcement.

"It's a huge victory for the American people that antitrust enforcement is alive and well when it comes to competition," she said. "Google is a rampant monopolist."

When it was filed in 2020, the Google search case was the first time in a generation that the US government accused a major corporation of an illegal monopoly. Microsoft settled with the Justice Department in 2004 over claims that it forced its Internet Explorer Web browser on Windows users.