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As if further proof were needed Orwell’s dystopia is now upon us, China has now gamified obedience to the State. Though that is every bit as creepily terrifying as it sounds, citizens may still choose whether or not they wish to opt-in — that is, until the program becomes compulsory in 2020. “Going under the innocuous name of ‘Sesame Credit,’ China has created a score for how good a citizen you are,” explains Extra Credits’ video about the program. “The owners of China’s largest social networks have partnered with the government to create something akin to the U.S. credit score — but, instead of measuring how regularly you pay your bills, it measures how obediently you follow the party line.”

In the works for years, China’s ‘social credit system’ aims to create a docile, compliant citizenry who are fiscally and morally responsible by employing a game-like format to create self-imposed, group social control. In other words, China gamified peer pressure to control its citizenry; and, though the scheme hasn’t been fully implemented yet, it’s already working — insidiously well.

The system is run by two companies, Alibaba and Tencent, which run all the social networks in China and therefore have access to a vast amount of data about people’s social ties and activities and what they say. In addition to measuring your ability to pay, as in the United States, the scores serve as a measure of political compliance. Among the things that will hurt a citizen’s score are posting political opinions without prior permission, or posting information that the regime does not like, such as about the Tiananmen Square massacre that the government carried out to hold on to power, or the Shanghai stock market collapse. It will hurt your score not only if you do these things, but if any of your friends do them.” And, in what appears likely the goal of the entire program, added, “Imagine the social pressure against disobedience or dissent that this will create.”

The opening panel of the Stigler Center’s annual antitrust conference discussed the source of digital platforms’ power and what, if anything, can be done to address the numerous challenges their ability to shape opinions and outcomes present. 

Google CEO Sundar Pichai caused a worldwide sensation earlier this week when he unveiled Duplex, an AI-driven digital assistant able to mimic human speech patterns (complete with vocal tics) to such a convincing degree that it managed to have real conversations with ordinary people without them realizing they were actually talking to a robot.   While Google presented Duplex as an exciting technological breakthrough, others saw something else: a system able to deceive people into believing they were talking to a human being, an ethical red flag (and a surefire way to get to robocall hell). Following the backlash, Google announced on Thursday that the new service will be designed “with disclosure built-in.” Nevertheless, the episode created the impression that ethical concerns were an “after-the-fact consideration” for Google, despite the fierce public scrutiny it and other tech giants faced over the past two months. “Silicon Valley is ethically lost, rudderless and has not learned a thing,” tweeted Zeynep Tufekci, a professor at the University of North Carolina at Chapel Hill and a prominent critic of tech firms.   The controversial demonstration was not the only sign that the global outrage has yet to inspire the profound rethinking critics hoped it would bring to Silicon Valley firms. In Pichai’s speech at Google’s annual I/O developer conference, the ethical concerns regarding the company’s data mining, business model, and political influence were briefly addressed with a general, laconic statement: “The path ahead needs to be navigated carefully and deliberately and we feel a deep sense of responsibility to get this right.”

Google’s fellow FAANGs also seem eager to put the “techlash” of the past two years behind them. Facebook, its shares now fully recovered from the Cambridge Analytica scandal, is already charging full-steam ahead into new areas like dating and blockchain.   But the techlash likely isn’t going away soon. The rise of digital platforms has had profound political, economic, and social effects, many of which are only now becoming apparent, and their sheer size and power makes it virtually impossible to exist on the Internet without using their services. As Stratechery’s Ben Thompson noted in the opening panel of the Stigler Center’s annual antitrust conference last month, Google and Facebook—already dominating search and social media and enjoying a duopoly in digital advertising—own many of the world’s top mobile apps. Amazon has more than 100 million Prime members, for whom it is usually the first and last stop for shopping online.   Many of the mechanisms that allowed for this growth are opaque and rooted in manipulation. What are those mechanisms, and how should policymakers and antitrust enforcers address them? These questions, and others, were the focus of the Stigler Center panel, which was moderated by the Economist’s New York bureau chief, Patrick Foulis.

Google will begin using website encryption, or HTTPS, as a ranking signal – a move which should prompt website developers who have dragged their heels on increased security measures, or who debated whether their website was “important” enough to require encryption, to make a change. Initially, HTTPS will only be a lightweight signal, affecting fewer than 1% of global queries, says Google. That means that the new signal won’t carry as much weight as other factors, including the quality of the content, the search giant noted, as Google means to give webmasters time to make the switch to HTTPS. Over time, however, encryption’s effect on search ranking make strengthen, as the company places more importance on website security. Google also promises to publish a series of best practices around TLS (HTTPS, is also known as HTTP over TLS, or Transport Layer Security) so website developers can better understand what they need to do in order to implement the technology and what mistakes they should avoid. These tips will include things like what certificate type is needed, how to use relative URLs for resources on the same secure domain, best practices around allowing for site indexing, and more.

In addition, website developers can test their current HTTPS-enabled website using the Qualys Lab tool, says Google, and can direct further questions to Google’s Webmaster Help Forums where the company is already in active discussions with the broader community. The announcement has drawn a lot of feedback from website developers and those in the SEO industry – for instance, Google’s own blog post on the matter, shared in the early morning hours on Thursday, is already nearing 1,000 comments. For the most part, the community seems to support the change, or at least acknowledge that they felt that something like this was in the works and are not surprised. Google itself has been making moves to better securing its own traffic in recent months, which have included encrypting traffic between its own servers. Gmail now always uses an encrypted HTTPS connection which keeps mail from being snooped on as it moves from a consumer’s machine to Google’s data centers.

While HTTPS and site encryption have been a best practice in the security community for years, the revelation that the NSA has been tapping the cables, so to speak, to mine user information directly has prompted many technology companies to consider increasing their own security measures, too. Yahoo, for example, also announced in November its plans to encrypt its data center traffic. Now Google is helping to push the rest of the web to do the same.

Invasion of the Data Snatchers Data snatchers?? They are NOT science fiction. And they’re closer than you think. New technologies are making it easier for private companies and the government to learn about everything we do - in our homes, in our cars, in stores, and within our communities. As they collect vast amounts of data about us, things are getting truly spooky! Our video might make you laugh, but a future without any privacy is just scary. Isn't it time we regained control over our personal information?

An uncontested vote by the Beverly Hills City Council could guarantee a chauffeur for all residents in the near future. However, instead of a driver, the newly adopted program foresees municipally-owned driverless cars ready to order via a smartphone app. Also known as autonomous vehicles, or AV, driverless cars would appear to be the next big thing not only for people, but local governments as well – if the Beverly Hills City Council can get its AV development program past a few more hurdles, that is. The technology itself has some challenges ahead as well.

In the meantime, the conceptual shuttle service, which was unanimously approved at an April 5 city council meeting, is being celebrated.

Naming Google and Tesla in its press release, Beverly Hills must first develop a partnership with a manufacturer that can build it a fleet of unmanned cars. There will also be a need to bring in policy experts. All of these outside parties will have a chance to explore the program’s potential together at an upcoming community event.The Wallis Annenberg Center for the Performing Arts will host a summit this fall that will include expert lectures, discussions, and test drives. Er, test rides.Already in the works for Beverly Hills is a fiber optics cable network that will, in addition to providing high-speed internet access to all residents and businesses, one day be an integral part of a public transit system that runs on its users’ spontaneous desires.Obviously, Beverly Hills has some money on hand for the project, and it is also an ideal testing space as the city takes up an area of less than six square miles. Another positive factor is the quality of the city’s roads, which exceeds that of most in the greater Los Angeles area, not to mention California and the whole United States.“It can’t find the lane markings!” Volvo’s North American CEO, Lex Kerssemakers, complained to Los Angeles Mayor Eric Garcetti last month, according to Reuters. “You need to paint the bloody roads here!”Whether lanes are marked or signs are clear has made a big difference in how successfully the new technology works.Unfortunately, the US Department of Transportation considers 65 percent of US roads to be in poor condition, so AV cars may not be in the works for many Americans living outside of Beverly Hills quite as soon.

As part of an effort to make encryption a standard component of every application, the Linux Foundation has launched the Let's Encrypt project (announcement) and stated its intention to provide access to a free certificate management service. Jim Zemlin, executive director for the Linux Foundation, says the goal for the project is nothing less than universal adoption of encryption to disrupt a multi-billion dollar hacker economy. While there may never be such a thing as perfect security, Zemlin says it's just too easy to steal data that is not encrypted. In its current form, encryption is difficult to implement and a lot of cost and overhead is associated with managing encryption keys. Zemlin claims the Let's Encrypt project will reduce the effort it takes to encrypt data in an application down to two simple commands. The project is being hosted by the Linux Foundation, but the actual project is being managed by the Internet Security Research Group. This work is sponsored by Akamai, Cisco, EFF, Mozilla, IdenTrust, and Automattic, which all are Linux Foundation patrons. Visit Let's Encrypt official website to get involved.

Before Chinese President Xi Jinping visits President Obama, he and Chinese executives have some business in Seattle: pressing U.S. tech companies, hungry for the Chinese market, to comply with the country’s new stringent and suppressive Internet policies. The New York Times reported last week that Chinese authorities sent a letter to some U.S. tech firms seeking a promise they would not harm China’s national security. That might require such things as forcing users to register with their real names, storing Chinese citizens’ data locally where the government can access it, and building government “back doors” into encrypted communication products for better surveillance. China’s new national security law calls for systems that are “secure and controllable”, which industry groups told the Times in July means companies will have to hand over encryption keys or even source code to their products. Among the big names joining Xi at Wednesday’s U.S.-China Internet Industry Forum: Apple, Google, Facebook, IBM, and Microsoft.

The meeting comes as U.S. law enforcement officials have been pressuring companies to give them a way to access encrypted communications. The technology community has responded by pointing out that any sort of hole for law enforcement weakens the entire system to attack from outside bad actors—such as China, which has been tied to many instances of state-sponsored hacking into U.S systems. In fact, one argument privacy advocates have repeatedly made is that back doors for law enforcement would set a dangerous precedent when countries like China want the same kind of access to pursue their own domestic political goals. But here, potentially, the situation has been reversed, with China using its massive economic leverage to demand that sort of access right now. Human rights groups are urging U.S. companies not to give in.

After months of fanfare and anticipation, gigabit home Internet service Google Fiber finally went live on Tuesday in Kansas City. The search giant is offering 1 Gbps speeds for just $70 per month -- significantly faster and cheaper than what any traditional American ISPs are offering.

Meanwhile, Demarais said that on an Ethernet connection, he's seen consistent Google Fiber speeds of 600 to 700 Mbps, with Wi-Fi topping out around 200 Mbps. Even at the slower wireless speeds, that's more than an order of magnitude faster than what most Americans have at home. "The first thing I did was BitTorrent Ubuntu," he said. "I think that took two minutes, let me try it again right now."

Earlier this March, cyber-security firm Kaspersky Labs released information on a newly discovered, highly advanced piece of malware dubbed Slingshot. The malware targeted Latvian-made Internet routers popular in the Middle East, Africa, and Southeast Asia. Kaspersky’s reports reveal that the malware had been active since at least 2012, and speculates that it was government-made, owing to its sophistication and its use of novel techniques rarely seen elsewhere. Those investigating the matter further have drawn the conclusion that Slingshot was developed by the U.S. government, with some reports quoting former officials as connecting it to the Pentagon’s JSOC special forces. For those following the cyber security and malware sphere, this is a huge revelation, putting the U.S. government in the hot seat for deploying cyber attacks that harm a much greater range of innocent users beyond their intended targets. Kaspersky’s own findings note that the code was written in English, using a driver flaw to allow the implanting of various types of spyware. Among those mentioned by Moscow-based Kaspersky was an implant named “GOLLUM,” which notably was mentioned in one of the leaked Edward Snowden documents. Further findings suggest that Slingshot had common code with only two other known pieces of software, both malwares, which were attributed to the NSA and CIA, respectively, by analysts. Though various U.S. agencies are all denying comment, things are clearly pointing uncomfortably in their direction.

Internet and computer security company Symantec has issued a statement today related to the Vault 7 WikiLeaks documents leaked from the CIA, saying that the methods and protocols described in the documents are consistent with cyberattacks they’d been tracking for years. Symantec says they now believe that the CIA hacking tool Fluxwire is a malware that had been known as Corentry, which Symantec had previously attributed to an unknown cyberespionage group called Longhorn, which apparently was the CIA. They described Longhorn as having been active since at least 2011, and responsible for attacks in at least 16 countries across the world, targeting governments and NGOs, as well as financial, energy, and natural resource companies, things that would generally be of interest to a nation-state.

While the WikiLeaks themselves have been comparatively short on details, as WikiLeaks continues to share specific vulnerabilities with companies so they can fix them before the details are leaked to the general public, the ability of security companies like Symantec to link the CIA to known hacking operations could prove to be even more enlightening as to the scope of CIA cyber-espionage the world over.

Huawei Technologies, the world’s largest telecommunications equipment supplier, is set to launch its HongMeng operating system (OS) as a potential alternative to Google's Android OS, on August 9 at Huawei's Developer Conference, industry insiders told the Global Times Wednesday. According to media reports, the user experience (UX) design features a brand new ringtone and notification panel, a cleaner interface for the camera, more animation and faster speed. Users can also add widgets and personalize the locked screen. Citing industry experts (most likely of Chinese origin), the Global Times reported that "it is possible for Huawei to build a sustainable smartphone ecosystem on the HongMeng OS and reshape the current market dominated by Android and Apple's iOS", although the new system is primarily designed for industrial automation and applications in the Internet of Things (IoT). "Given the design features of the HongMeng OS, it can be a game changer in IoT-related areas, such as driverless cars and smart homes," Fu Liang, a Beijing-based independent industry analyst, told the Global Times. According to Huawei's website, the HongMeng OS is built with a processing latency of less than 5 milliseconds, which is especially required in circumstances involving IoT applications that often need to transfer large amount of data simultaneously.

On Feb. 19, the European Commission released a White Paper on Artificial Intelligence outlining its wide-ranging plan to develop artificial intelligence (AI) in Europe. The commission also released a companion European data strategy, aiming to make more data sets available for business and government to promote AI development, along with a report on the safety of AI systems proposing some reforms of the commission’s product liability regime. Initial press reports about the white paper focused on how the commission had stepped back from a proposal in its initial draft for a three- to five-year moratorium on facial recognition technology. But the proposed framework is much more than that: It represents a sensible and thoughtful basis to guide the EU’s consideration of legislation to help direct the development of AI applications, and an important contribution to similar debates going on around the world. The key takeaways are that the EU plans to: Pursue a uniform approach to AI across the EU in order to avoid divergent member state requirements forming barriers to its single market. Take a risk-based, sector-specific approach to regulating AI. Identify in advance high-risk sectors and applications—including facial recognition software. Impose new regulatory requirements and prior assessments to ensure that high-risk AI systems conform to requirements for safety, fairness and data protection before they are released onto the market. Use access to the huge European market as a lever to spread the EU’s approach to AI regulation across the globe.

A Moscow court on Friday slapped Google with a nearly US$100 million fine and also fined Facebook Inc’s parent company Meta Platforms Inc US$27 million over their failure to delete content banned by local law, as Russia seeks to step up pressure on technology giants. The Tagansky District Court ruled that Google repeatedly neglected to remove the banned content, and ordered the company to pay an administrative fine of 7.2 billion rubles (US$97.7 million).

Later on Friday, the court also slapped a fine of nearly 2 billion rubles on Meta for failure to remove banned content. Russian courts had this year imposed smaller fines on Google, Facebook and Twitter Inc, and Friday’s rulings were the first time that the size of the fines were calculated based on revenue. Russian state communications watchdog Roskomnadzor said that Google and Meta were specifically accused of contravening a ban on distributing content that promotes extremist ideology, insults religious beliefs and encourages dangerous behavior by minors, among other things.