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Apple, Google, and Microsoft are failing U.S. students during the COVID-19 crisis With their cash on hand, the tech companies could buy every student in America eight laptops. Apple, Google, and Microsoft are failing U.S. students during the COVID-19 crisis [Source Image: lazacar/Blendswap] BY MARK WILSON7 MINUTE READ In the midst of COVID-19, schools across the country have closed their doors, and a majority of the 50 million K-12 students are now learning from home. For many, that means logging on to laptops to teleconference teachers who take digital attendance, then accessing lessons and homework to do on their own. The crisis will be the great stress test of digital learning, but one failure is already known: Roughly one in five teens reported having difficulty doing their homework because of a lack of access to computers and the internet. Chicago Public School principals are begging for hardware for students, while hundreds of thousands of children in NYC are still without laptops as teaching goes virtual. Ten million students need computers and internet access now. So who should provide it? Three of the most valuable companies in the world, each with more than $100 billion in cash for a combined pile of over $400 billion to weather the storm. Apple, Google (Alphabet), and Microsoft. Together, they could buy every vulnerable student in America a $1,000 laptop. Actually, they could buy every vulnerable student 40 laptops, or every K-12 student eight laptops, or every single American a laptop and then some. (If you want to nitpick about Apple’s $100 billion floating debt, feel free to round down these figures by a quarter, but you could have just as much fun with this fuzzy math by pricing out $250 Chromebooks instead of $1,000 Macbook Airs.) At the bare minimum, each company could chip in $3.3 billion dollars to outfit the 10 million low-income students with a laptop or a tablet with a keyboard. Better still, these devices would be bundled with free LTE internet access. The point is that the big three have enough cash on hand to outfit every student in America with respectable technology to learn remotely, without depleting their generous cash reserves. And let me be clear: They should. Each of these companies is individually wealthy enough to tackle this challenge entirely on their own, or they could team up. As we face this pandemic, the three greatest American technology companies should be paying back their profits, not to stockholders on dividends, but to the consumers who stacked their profits in the first place. Think of it as an educational stimulus package, but instead of being funded by taxpayer dollars, it’s funded by the unmitigated, unprecedented corporate profits of the last decade—oh, and the $100+ billion in tax breaks the tech sector has relished over the last decade. [Source Image: lazacar/Blendswap] Together, this trio isn’t just cash-rich, their platforms literally comprise 100% of the educational platform market. Google owns 60% of the market with its Chrome and Android platforms, which mostly equate to Chromebooks and Android tablets. Microsoft takes 22% with Windows computers. And Apple claims 17% with iOS and MacOS, or iPads and Macbooks. (Note that these numbers, provided to Fast Company by Futuresource Consulting, represent platform market share not profit share.) In any case, these giants have wiped every other platform provider out in order to form the digital foundation of learning in our schools. Now, the most concrete way they could help is to provide students a direct, no-nonsense assist: The hardware and connectivity to attend class when class is closed. SMARTPHONES ARE NOT TABLETS OR LAPTOPS, AND PUBLIC WI-FI ISN’T HOME INTERNET The nonpartisan research group Pew Research Center has been monitoring technology and internet adoption since the early aughts. And it’s worth noting that it’s not a completely dire story. “A lot of the differences we see around income, race, and community have narrowed over time,” says Monica Anderson, associate director of research at the center. “But there are still these persistent gaps and that has been true for the last five years or so. The digital divide has closed in some ways, and in some, it’s evolved.” On the wealthy end of the spectrum, in households making more than $100,000 a year, 94% of people have PCs and laptops, smartphones, and home broadband. Seventy percent have a tablet. These families are ready for just about any possible form of connectivity. For households that make under $30,000, the story is very different. Only half of these families have access to a computer at home. A majority rely on their smartphones—and the number of low-income households that use their smartphones to connect to the internet has doubled since 2013. Forty-four percent of low-income Americans still don’t have home broadband today. Having spoken to several educators when researching this piece, individual circumstances vary, but it’s clear that resources are piecemeal not just state to state or district to district, but school by school. When schools can’t provide laptops or tablets, families often can’t afford to make up the difference. “We’ve seen the growth of smartphone-only internet users,” says Anderson. “But the other side of that is being able to do homework on a cellphone, or . . . finding a job or cover letter can be difficult given the size of the device. Smartphones have helped bridge the digital divide . . . but [people tell us the] difficulties of doing tasks solely on their phone.” What we’ve seen as a result is called a “homework gap,” which disproportionately affects black teens, 25% of whom cannot do their schoolwork on a regular basis simply because they have no means to access it. Black and Hispanic teens report “often” using smartphones to do their homework as a result. And despite the fact that it’s a smartphone with wireless connectivity, one in five black teens regularly needs to find free public Wi-Fi to do their homework on it—an inequitable practice that becomes impossible during a time we’re quarantining for public safety. Indeed, having internet access is just as crucial as possessing a device to connect to the internet with, and any grand spending plan needs to address that fact. It was encouraging to see that Xfinity opened up its nationwide network of Wi-Fi hotspots to provide an estimated 56 million homes with internet access (although this coverage is particularly spotty in rural areas, and Xfinity declined to disclose if it cost the company anything). We need all of the cable and cell providers to help provide access to American students at this time. T-Mobile has expanded roaming range for Sprint customers, allowing better rural connections. Verizon plans are getting a free 15GB bump. These steps are helpful, but not nearly enough to close the education gap. Another important point to note is that the core ergonomics of a smartphone offers a lousy way to learn. Even grade school children are being required to attend e-learning classes now. And the digital class time adds up. The state of California requires three hours of a school a day, for instance, and the state of Illinois requires five. Besides, touchscreen phones are inherently limiting. It’s why every Chromebook has a keyboard to type mass chunks of text, and why Apple released a 12.9-inch iPad long after debuting a 9.7-inch form. Sometimes you need easy ways to type a lot of information, and bigger screens to absorb rich multimedia. “You can do a lot on a smartphone, no question,” says Naila Bolus, the CEO of Jumpstart, a nonprofit focused on helping vulnerable preschoolers learn. “But also, we’re doing read-alouds, which is the way we read a storybook that engages children, to let kids stop and make sense of the content, and dive deeper . . . it’s really hard to get that on a phone!” Put differently, children’s storybooks are printed on pages larger than four inches for a reason: Big pages allow media to be shared between a teacher and student. SO WHAT HAVE THESE COMPANIES DONE FOR EDUCATION? NOT MUCH With hundreds of billions of spendable dollars in the bank, neither Apple, nor Google, nor Microsoft has pledged a meaningful response to enable e-learning. After reaching out to all three companies, it appears that none have donated more than a mere $15 million (which was Apple) to the COVID-19 crisis itself, period. Apple has offered educators free 1:1 coaching sessions with Apple Professional Learning specialists. It also produced a new video series educating educators about remote learning, and provided resources to school IT about configuring devices for it. Google pledged $10 million to a Distance Learning Fund to “support organizations around the globe that help educators access the resources they need,” while providing some free Hangouts Meet features. The company confirmed it has not provided any hardware, only platform-level services. Microsoft is “providing  guidance and resources for educators, administrators, and  caregivers whose children are shifting to online learning,” and it recently joined the UNESCO’s Global Education Coalition to contribute “resources and expertise around technology, connectivity, capacity building, and content.” The financial value of these contributions is unclear. Microsoft does invest in an initiative to provide LTE laptops to schools, but the program is not in response to COVID-19. This is not enough. Our three big tech companies combined are wealthier than most nations. And while you could certainly make the case that these companies could spend their resources and incredible engineering capabilities differently to help out—whether that’s through producing ventilators or even just providing children with the government-subsidized meals they miss when they don’t attend school—there is no argument that absolves them from a greater duty. Apple, Google, Microsoft—you claimed this world. Now do your damn part to save it. ABOUT THE AUTHOR Mark Wilson is a senior writer at Fast Company who has written about design, technology, and culture for almost 15 years. His work has appeared at Gizmodo, Kotaku, PopMech, PopSci, Esquire, American Photo and Lucky Peach More ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT 03-30-20CORONAVIRUS CRISIS What is ‘force majeure’? The legal term you’ll be hearing a lot during the coronavirus crisis Businesses that find it impossible to fulfill contracts may be saved by clauses that void the contract due to acts of god. But “not all force majeure clauses are created equal.” What is ‘force majeure’? The legal term you’ll be hearing a lot during the coronavirus crisis [Source Images: Katerina Sisperova/iStock, Mariakray/iStock, Amadeus Moga/Unsplash] BY TALIB VISRAM5 MINUTE READ In 2015, as Ebola spread across Western Africa, the Moroccan government turned to an esoteric legal concept to postpone that year’s African Nations Cup: force majeure. It’s a common clause in legal contracts that allows either party to limit their liability in the face of some unforeseeable, extraordinary event. Morocco, which was set to host the biennial soccer tournament, claimed that the Ebola outbreak qualified. But force majeure is notoriously difficult to establish. In that case, the Court of Arbitration for Sport ruled that Ebola did not constitute “force majeure,” because the deadly virus had not made hosting the event impossible—just more difficult. Morocco was held liable, and fined $1 million. EVEN IF A PARTY CAN SHOW COVID-19 OR ITS EFFECTS ARE COVERED BY THE CLAUSE AT ISSUE, IT STILL HAS THE TASK OF DEMONSTRATING . . . THAT PERFORMANCE IS TRULY IMPOSSIBLE RATHER THAN MERELY FINANCIALLY DIFFICULT.” As coronavirus continues to force major business disruptions, this extraordinary act clause is becoming increasingly pertinent. “Force majeure” translates literally as “superior strength,” and refers to unforeseen calamities ranging from natural disasters like hurricanes or avalanches, to manmade emergencies, such as labor strikes or wars. But what about an unpredictable, highly infectious pandemic zoonotic virus? COVID-19 is likely to again affect sports (there’s a force majeure clause in the NBA players’ collective bargaining agreement specifically related to pandemics that may halt their compensation) and the big brands we know, as well as smaller businesses that keep day-to-day life ticking along. A supplier’s factory may get infected and shut down, say, meaning that supplier can’t provide the items it promised to buyers. Or, a trucking company may halt delivery to infected areas, meaning goods aren’t transferred by the formally agreed date. These businesses may or may not have the right to invoke force majeure. Fast Company spoke to two global law firms to help us decipher the muddy legal term, and how it’s likely to play out given city lockdowns, stay-at-home orders, and widespread economic instability inflicted by COVID-19. Both firms say the term has become a priority within their offices, and one that’s likely to spring up more and more, as businesses struggle to satisfy contracts. “Generally, a force majeure event is an event that is beyond the affected party’s reasonable control, and could not have been foreseen, or, if the event could have been foreseen, is an event that was unavoidable,” say Alexandro Padrés and Alyssa Cowley, partner and associate, respectively, in the Project Development & Finance practice from Shearman and Sterling in an email. Specific force majeure events have to be explicitly mentioned in the contract, for the clause to be invoked. That creates a gray area for pandemics, epidemics, and quarantines, which are less commonly included. Some mention them explicitly—like the NBA bargaining agreement—but this is largely new territory. If it’s not in the contract, though, the court may choose to judge the case using local jurisdiction or common law. It’s worth noting that the coronavirus itself doesn’t have to be the force majeure event, just any demonstrative effects it produces. “Instead, it can be that the consequences of the pandemic (for example, port shutdowns, delays in transportation, etc.) give rise, separately, to force majeure claims because they affect a party’s ability to perform its contractual obligations,” Padrés and Cowley say. Not fulfilling a contract has to be viewed as an impossible feat, rather than just simply impractical (think Morocco). Fears of the virus also wouldn’t cut it, even under common law: In an English case from 1922, which set precedent, Hackney Borough Council v. Dore, the judge said, “The expression means some physical or material restraint and does not include a reasonable fear or apprehension of such a restraint.” So, a company may still be obligated to pay a venue for an event it’s unwilling to go ahead with; and a major sporting competition that cancels due to fears of outbreaks among fans may still have an responsibility to media buyers and corporate sponsors. In these instances, force majeure simply may not cut it. “Even if a party can show COVID-19 or its effects are covered by the clause at issue, it still has the task of demonstrating that the risk of nonperformance was unforeseeable and could not be mitigated, and that performance is truly impossible rather than merely financially difficult,” says Jaren Janghorbani, a partner in the litigation department at the firm Paul, Weiss. This came up frequently in contract disputes in the aftermath of the 2008 economic crash, when many courts ruled that financial difficulty did not fall under force majeure. “The financial inability to perform is generally not excused by force majeure clauses. Changes in the cost or availability of materials, components, resources/services, or changes in market conditions will be specifically excluded from the definition of ‘force majeure event,’” say Padrés and Cowley. IT IS POSSIBLE THAT AN EVENT OF THIS MAGNITUDE COULD SHAPE THE LAW IN WAYS WE CANNOT CURRENTLY PREDICT.” While the U.S is only at the beginning of the financial implications of the crisis, Janghorbani says force majeure is already starting to become an issue with Chinese contracts: “The Chinese government issued force majeure certificates exonerating certain companies for contractual non-performance resulting from COVID-19; those certificates may or may not be recognized under contracts governed by U.S. law.” What will happen in the U.S? The lawyers say it’s hard to know how courts will rule, but if a company is in breach of contract and tries to invoke force majeure and loses, courts could also force them to pay monetary damages. All the lawyers say the best course of action going forward is for both parties to any contracts be willing to be flexible now in an attempt to avoid legal proceedings. “Open and honest communication with counterparties and their subcontractors will be key to handling the consequences of the pandemic, particularly in complex transactions or supply chains,” say Padrés and Cowley. “Alternative and creative solutions will be necessary.” But what happens going forward could have major implications for contract law. “It is possible that an event of this magnitude could shape the law in ways we cannot currently predict, as courts may be faced with calls to liberalize the force majeure or common law analyses in light of market realities,” says Janghorbani. It’s a murky provision in the best of times, so clarification could be welcome. “Not all force majeure clauses are created equal,” say Padrés and Cowley, “and different governing laws afford different levels of protection.” What’s more, decisions about whether coronavirus qualifies as a force majeure event will affect entire supply chains, causing a ripple-down effect—one broken obligation, or invocation of the clause, can domino into many others down the line. “Thus, we end up with a ‘race to the bottom,’” say Padrés and Cowley. “A party along the supply chain without cover or excuse under force majeure is left holding the proverbial bag.” ABOUT THE AUTHOR @talibvisram More ADVERTISEMENT ADVERTISEMENT March 31, 2020 Add to favorites

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