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That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.

Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.

But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.

The European Union and the U.K. opened formal antitrust investigations into Facebook Inc.’s FB -0.86% classified-ads service Marketplace, ramping up regulatory scrutiny for the company in Europe. Both the European Commission—the EU’s top antitrust enforcer—and the U.K.’s Competition and Markets Authority said Friday they are investigating whether Facebook repurposes data it gathers from advertisers who buy ads in order to give illegal advantages to its own services, including its Marketplace online flea market. The U.K. added that it is also investigating whether Facebook uses advertiser data to give similar advantages to its online-dating service. The two competition watchdogs said they would coordinate their investigations.

Separately on Friday, Germany’s competition regulator announced that it is opening an investigation into Google’s News Showcase, in which the tech company pays to license certain content from news publishers. That probe, which is based on new powers Germany had granted the regulator, will look among other things at whether Google is imposing unfair conditions on publishers and how it selects participants, the Federal Cartel Office said.

The three newly opened cases are part of a new wave of antitrust enforcement in Europe. The European Commission filed formal charges last month against Apple Inc. for allegedly abusing its control over the distribution of music-streaming apps, including Spotify Technology SA . In November, it filed formal charges against Amazon.com Inc. for allegedly using nonpublic data it gathers from third-party sellers to unfairly compete against them. Both companies denied wrongdoing. At the same time, the U.K.’s CMA has opened investigations into Google’s announcement that it will retire third-party cookies, a technology advertisers use to track web users, and whether Apple imposes anticompetitive conditions on some app developers, including the use of Apple’s in-app payment system, which is also the subject of a lawsuit in the U.S. In the EU, the European Commission has been investigating Facebook for more than a year on multiple fronts. Facebook and the Commission have squabbled over access to internal documents as part of those investigations.

What does it look like when a society loses its sense of privacy? <div><a href="http://pubads.g.doubleclick.net/gampad/jump?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" title=""><img style="border:none;" src="http://pubads.g.doubleclick.net/gampad/ad?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" alt="" /></a></div>In the almost 18 months since the Snowden files first received coverage, writers and critics have had to guess at the answer. Does a certain trend, consumer complaint, or popular product epitomize some larger shift? Is trust in tech companies eroding—or is a subset just especially vocal about it? Polling would make those answers clear, but polling so far has been… confused. A new study, conducted by the Pew Internet Project last January and released last week, helps make the average American’s view of his or her privacy a little clearer. And their confidence in their own privacy is ... low. The study's findings—and the statistics it reports—stagger. Vast majorities of Americans are uncomfortable with how the government uses their data, how private companies use and distribute their data, and what the government does to regulate those companies. No summary can equal a recounting of the findings. Americans are displeased with government surveillance en masse:   

A new study finds that a vast majority of Americans trust neither the government nor tech companies with their personal data.

According to the study, 70 percent of Americans are “at least somewhat concerned” with the government secretly obtaining information they post to social networking sites. Eighty percent of respondents agreed that “Americans should be concerned” with government surveillance of telephones and the web. They are also uncomfortable with how private corporations use their data: Ninety-one percent of Americans believe that “consumers have lost control over how personal information is collected and used by companies,” according to the study. Eighty percent of Americans who use social networks “say they are concerned about third parties like advertisers or businesses accessing the data they share on these sites.” And even though they’re squeamish about the government’s use of data, they want it to regulate tech companies and data brokers more strictly: 64 percent wanted the government to do more to regulate private data collection. Since June 2013, American politicians and corporate leaders have fretted over how much the leaks would cost U.S. businesses abroad.

Russian lawmaker Vitaly Milonov, on Monday, proposed a bill aimed to ban children under the age of 14 from social media. Although the bill is touted under the banner of child protection, it also aims to introduce the mandatory submission of passport data. In January Russia introduced semi-fascist regulations to severely curb the rights of bloggers and independent media.

Vitaly Milnov, generally known for being ultra-conservative, introduced the controversial bill on Monday. Touting the bill under the banner of wanting to protect children and limit their access to social media the bill has far deeper implications. Parents could very well self-regulate their children’s access to social media. The bill, however, implies that it would become mandatory for social media users to submit their passport data. Moreover, the bill also proposes that the use of pseudonyms will be banned. The proposed legislation also aims to introducing strict rules, requiring two-party consent before the publication of screenshots of online correspondence. The bill reads, among others: “Social networks create a special virtual world where a person spends significant part of their life, contacting other people and essentially doing everything that they would do in real world. This world can’t be left unregulated by law. Especially now, when growing number of users are falling victim to different types of fraud.” Even though Milonov is generally viewed as ultra-conservative, there are about 62 percent of Russians who according to polls support the ban of social networks for children while 39 percent supported using passport data to create an online account, a poll by the state-funded pollster VTsIOM revealed Monday.

Social media has come under intense scrutiny in Russia in recent months. Disturbingly, there are very few Russians who have received independent information about the not so overtly advertised implications of this scrutiny, of the proposed bill, and of plans to create a “Russian internet” to filter “unwanted foreign content. Russia also cracks down on independent bloggers and journalists. On January 1, 2016 the Russian Federation implemented amendments to laws that further censor the internet and potentially independent media. These laws are being sold under the guise of empowering internet users and the right to protect personal information. The amendments follow legislation from 2014 that infringed on the rights of bloggers.

The European Union unveiled landmark legislation on Tuesday that lays out strict rules for tech giants to do business in the bloc. The draft legislation, dubbed the Digital Services Act (DSA) and the Digital Markets Act (DMA), outlines specific regulations that seek to limit the power of global internet firms on the European market. Companies including Google, Apple, Amazon, Facebook and others could face hefty penalties for violating the rules. EU antitrust czar Margrethe Vestager and EU digital chief Thierry Breton presented the draft on Tuesday, after the content of the new rules was leaked to the media on Monday.

What's in the draft laws? The dual legislation sets out a list of do's, don'ts and penalties for internet giants: Companies with over 45 million EU users would be designated as digital "gatekeepers" — making them subject to stricter regulations. Firms could be fined up to 10% of their annual turnover for violating competition rules. The could also be required to sell one of their businesses or parts of it (including rights or brands). Platforms that refuse to comply and "endanger people's life and safety" could have their service temporarily suspended "as a last resort." Companies would need to inform the EU ahead of any planned mergers or acquisitions. Certain kinds of data must be shared with regulators and rivals. Companies favoring their own services could be outlawed. Platforms would be more responsible for illegal, disturbing or misleading content.

Following the announcement on Tuesday, US internet giant Google criticized the draft legislation, saying it appeared to target specific firms.  "We will carefully study the proposals made by the European Commission over the next few days. However, we are concerned that they seem to specifically target a handful of companies," said Karan Bhatia, the vice president of government affairs and public affairs at Google. Facebook appeared to offer a more conciliatory tone, saying the legislation was "on the right track."

Why did the internet freedom agenda fail? Goldsmith’s essay tees up, but does not fully explore, a range of explanatory hypotheses. The most straightforward have to do with unrealistic expectations and unintended consequences. The idea that a minimally regulated internet would usher in an era of global peace, prosperity, and mutual understanding, Goldsmith tells us, was always a fantasy. As a project of democracy and human rights promotion, the internet freedom agenda was premised on a wildly overoptimistic view about the capacity of information flows, on their own, to empower oppressed groups and effect social change. Embracing this market-utopian view led the United States to underinvest in cybersecurity, social media oversight, and any number of other regulatory tools. In suggesting this interpretation of where U.S. policymakers and their civil society partners went wrong, Goldsmith’s essay complements recent critiques of the neoliberal strains in the broader human rights and transparency movements. Perhaps, however, the internet freedom agenda has faltered not because it was so naïve and unrealistic, but because it was so effective at achieving its realist goals. The seeds of this alternative account can be found in Goldsmith’s concession that the commercial non-regulation principle helped companies like Apple, Google, Facebook, and Amazon grab “huge market share globally.” The internet became an increasingly valuable cash cow for U.S. firms and an increasingly potent instrument of U.S. soft power over the past two decades; foreign governments, in due course, felt compelled to fight back. If the internet freedom agenda is understood as fundamentally a national economic project, rather than an international political or moral crusade, then we might say that its remarkable early success created the conditions for its eventual failure. Goldsmith’s essay also points to a third set of possible explanations for the collapse of the internet freedom agenda, involving its internal contradictions. Magaziner’s notion of a completely deregulated marketplace, if taken seriously, is incoherent. As Goldsmith and Tim Wu have discussed elsewhere, it takes quite a bit of regulation for any market, including markets related to the internet, to exist and to work. And indeed, even as Magaziner proposed “complete deregulation” of the internet, he simultaneously called for new legal protections against computer fraud and copyright infringement, which were soon followed by extensive U.S. efforts to penetrate foreign networks and to militarize cyberspace. Such internal dissonance was bound to invite charges of opportunism, and to render the American agenda unstable.

The Federal Communications Commission is poised to ruin the free Internet on a technicality. The group is expected to introduce new net neutrality laws that would allow companies to pay for better access to consumers through deals similar to the one struck by Netflix and Comcast earlier this year. The argument is that those deals don’t technically fall under the net neutrality umbrella, so these new rules won’t apply to them even though they directly affect the Internet. At least the commission is being upfront about its disinterest in protecting the free Internet.

The Verge notes that the proposed rules will offer some protections to consumers: The Federal Communication Commission’s proposal for new net neutrality rules will allow internet service providers to charge companies for preferential treatment, effectively undermining the concept of net neutrality, according to The Wall Street Journal. The rules will reportedly allow providers to charge for preferential treatment so long as they offer that treatment to all interested parties on “commercially reasonable” terms, with the FCC will deciding whether the terms are reasonable on a case-by-case basis. Providers will not be able to block individual websites, however. The goal of net neutrality rules is to prevent service providers from discriminating between different content, allowing all types of data and all companies’ data to be treated equally. While it appears that outright blocking of individual services won’t be allowed, the Journal reports that some forms of discrimination will be allowed, though that will apparently not include slowing down websites.

Re/code summarizes the discontent with these proposed rules: Consumer groups have complained about that plan because they’re worried that Wheeler’s rules may not hold up in court either. A federal appeals court rejected two previous versions of net neutrality rules after finding fault in the FCC’s legal reasoning. During the latest smackdown, however, the court suggested that the FCC had some authority to impose net neutrality rules under a section of the law that gives the agency the ability to regulate the deployment of broadband lines. Internet activists would prefer that the FCC just re-regulate Internet lines under old rules designed for telephone networks, which they say would give the agency clear authority to police Internet lines. Wheeler has rejected that approach for now. Phone and cable companies, including Comcast, AT&T and Verizon, have vociferously fought that idea over the past few years.

The U.S. Department of Justice is investigating whether big technology companies are engaged in anticompetitive behavior, addressing a rising tide of criticism they have become too powerful to the detriment of consumers.

The Justice Department has said it will investigate “whether and how” online platforms in “search, social media, and some retail services online” are engaging in behavior that stifles competition and harms consumers. While the Justice Department did not name any targets in announcing the probe on Tuesday, sources have indicated Alphabet Inc’s Google, social media giant Facebook Inc, online retailer Amazon.com Inc and possibly Apple Inc will likely be reviewed. Here’s what regulators could focus on at the big technology companies:

The Justice Department accused Google on Tuesday of illegally protecting its monopoly over search and search advertising, the government’s most significant challenge to a tech company’s market power in a generation and one that could reshape the way consumers use the internet.In a much-anticipated lawsuit, the agency accused Google of locking up deals with giant partners like Apple and throttling competition through exclusive business contracts and agreements.Google’s deals with Apple, mobile carriers and other handset makers to make its search engine the default option for users accounted for most of its dominant market share in search, the agency said, a figure that it put at around 80 percent.“For many years,” the agency said in its 57-page complaint, “Google has used anticompetitive tactics to maintain and extend its monopolies in the markets for general search services, search advertising and general search text advertising — the cornerstones of its empire.”The lawsuit, which may stretch on for years, could set off a cascade of other antitrust lawsuits from state attorneys general. About four dozen states and jurisdictions, including New York and Texas, have conducted parallel investigations and some of them are expected to bring separate complaints against the company’s grip on technology for online advertising. Eleven state attorneys general, all Republicans, signed on to support the federal lawsuit.

The Justice Department did not immediately put forward remedies, such as selling off parts of the company or unwinding business contracts, in the lawsuit. Such actions are typically pursued in later stages of a case.Ryan Shores, an associate deputy attorney general, said “nothing is off the table” in terms of remedies.

Democratic lawmakers on the House Judiciary Committee released a sprawling report on the tech giants two weeks ago, also accusing Google of controlling a monopoly over online search and the ads that come up when users enter a query.

Three states and the District of Columbia allege that the tech giant misled consumers by continuing to track those who had changed their privacy settings to prevent data collection.

Google is also fighting an antitrust lawsuit led by Texas in which states have accused the company of obtaining and abusing a monopoly over the systems that allow publishers to auction off ad space to marketers. On Friday, Google asked a federal court to dismiss the lawsuit.The lawsuits add to a mounting offensive by regulators to curtail the power and business practices of Silicon Valley giants like Google, Facebook, Amazon and Apple. State and federal regulators have filed dozens of antitrust, consumer protection, privacy and trade lawsuits in an attempt to curb the business models or break up the companies. A Senate committee last week advanced potentially landmark antitrust legislation that tries to weaken the dominance of the internet giants.

European Union regulators filed antitrust charges Tuesday against Amazon, accusing the e-commerce giant of using its access to data from companies that sell products on its platform to gain an unfair advantage over them.The charges, filed two years after the bloc’s antitrust enforcer began looking into the company, are the latest effort by European regulators to curb the power of big technology companies. Margrethe Vestager, the EU commissioner in charge of competition issues, has slapped Google with antitrust fines totaling nearly $10 billion and opened twin antitrust investigations this summer into Apple. The EU’s executive Commission also opened a second investigation Tuesday into whether Amazon favors product offers and merchants that use its own logistics and delivery system.

The EU investigation found that Amazon is accessing and analyzing real-time data from other vendors that sell goods on its platform to help it decide which new products of its own to launch and how to price and market them. That “appears to distort genuine competition,” Vestager said.Investigators focused on that practice in France and Germany, the company’s two biggest markets in the EU, but Vestager didn’t give specific examples of merchants affected by Amazon’s behavior.The stakes have risen for retailers as many European countries have shut nonessential shops temporarily to try to contain the coronavirus pandemic, pushing more shopping online, where Amazon is a major presence. Advertising Skip AdSkip AdSkip Ad Amazon faces a possible fine of up to 10% of its annual worldwide revenue. That could amount to as much as $28 billion, based on its 2019 earnings. The Seattle-based company rejected the accusations.

Federal Magistrate Judge John M. Facciola denied a US government request earlier this month for a search and seizure warrant, targeting electronic data stored on Apple Inc. property. Facciola’s order, issued on March 7, 2014, rejected what it described as only the latest in a series of “overbroad search and seizure requests,” and “unconstitutional warrant applications” submitted by the US government to the US District Court for the District of Columbia. Facciola referred to the virtually unlimited warrant request submitted by the Justice Department as “repugnant to the Fourth Amendment.” The surveillance request sought information in relation to a “kickback investigation” of a defense contractor, details about which remain secret. It is significant, however, that the surveillance request denied by Facciola relates to a criminal investigation, unrelated to terrorism. This demonstrates that the use by the Obama administration of blanket warrants enabling them to seize all information on a person's Internet accounts is not limited to terrorism, as is frequently claimed, but is part of a program of general mass illegal spying on the American people.

Facciola’s ruling states in no uncertain terms that the Obama administration has aggressively and repeatedly sought expansive, unconstitutional warrants, ignoring the court’s insistence for specific, narrowly targeted surveillance requests. “The government continues to submit overly broad warrants and makes no effort to balance the law enforcement interest against the obvious expectation of privacy email account holders have in their communications…The government continues to ask for all electronically stored information in email accounts, irrespective of the relevance to the investigation,” wrote Judge Facciola. As stated in the ruling, the surveillance requests submitted to the court by the US government sought the following comprehensive, virtually limitless list of information about the target: “All records or other information stored by an individual using each account, including address books, contact and buddy lists, pictures, and files… All records or other information regarding the identification of the accounts, to include full name, physical address, telephone numbers and other identifies, records of session times and durations, the date on which each account was created, the length of service, the types of service utilized, the Internet Protocol (IP) address used to register each account, log-in IP addresses associated with session times and dates, account status, alternative email addresses provided during registration, methods of connecting, log files, and means of payment (including any credit or bank account number).”

Responding to these all-encompassing warrant requests, Judge Facciola ruled that evidence of probable cause was necessary for each specific item sought by the government. “This Court is increasingly concerned about the government’s applications for search warrants for electronic data. In essence, its applications ask for the entire universe of information tied to a particular account, even if it has established probable cause only for certain information,” Facciola wrote. “It is the Court’s duty to reject any applications for search warrants where the standard of probable cause has not been met… To follow the dictates of the Fourth Amendment and to avoid issuing a general warrant, a court must be careful to ensure that probable cause exists to seize each item specified in the warrant application… Any search of an electronic source has the potential to unearth tens or hundreds of thousands of individual documents, pictures, movies, or other constitutionally protected content.” Facciola also noted in the ruling that the government never reported the length of time it would keep the data, or whether it planned to destroy the data at any point.

Europe’s highest court on Tuesday struck down an international agreement that allowed companies to move digital information like people’s web search histories and social media updates between the European Union and the United States. The decision left the international operations of companies like Google and Facebook in a sort of legal limbo even as their services continued working as usual.The ruling, by the European Court of Justice, said the so-called safe harbor agreement was flawed because it allowed American government authorities to gain routine access to Europeans’ online information. The court said leaks from Edward J. Snowden, the former contractor for the National Security Agency, made it clear that American intelligence agencies had almost unfettered access to the data, infringing on Europeans’ rights to privacy. The court said data protection regulators in each of the European Union’s 28 countries should have oversight over how companies collect and use online information of their countries’ citizens. European countries have widely varying stances towards privacy.

Data protection advocates hailed the ruling. Industry executives and trade groups, though, said the decision left a huge amount of uncertainty for big companies, many of which rely on the easy flow of data for lucrative businesses like online advertising. They called on the European Commission to complete a new safe harbor agreement with the United States, a deal that has been negotiated for more than two years and could limit the fallout from the court’s decision.

Some European officials and many of the big technology companies, including Facebook and Microsoft, tried to play down the impact of the ruling. The companies kept their services running, saying that other agreements with the European Union should provide an adequate legal foundation.But those other agreements are now expected to be examined and questioned by some of Europe’s national privacy watchdogs. The potential inquiries could make it hard for companies to transfer Europeans’ information overseas under the current data arrangements. And the ruling appeared to leave smaller companies with fewer legal resources vulnerable to potential privacy violations.

The encryption debate dates back to Clinton administration proposals for the “clipper chip” and mandatory deposit of decryption keys. But that debate reached new prominence in connection with the FBI’s efforts to compel Apple to decrypt the phone of a dead terrorist in the San Bernardino case. A new study by the National Academies of Sciences, Engineering, and Medicine tries to shed some light, and turn down the heat, in the debate over whether government agencies should be provided access to plaintext versions of encrypted communications and other data. FBI and other law enforcement officials, and some intelligence officials, have argued that in the face of widespread encryption provided by smart phones, messaging apps, and other devices and software, the internet is “going dark.” These officials warn that encryption is restricting their access to information needed for criminal and national security investigations, arguing that they need a reliable, timely and scalable way to access it. Critics have raised legal and practical objections that regulations to ensure government access would pose unacceptable risks to privacy and civil liberties and undermine computer security in the face of rising cyber threats, and may be less necessary given the wider availability of data and alternative means of obtaining access to encrypted data. As the encryption debate has become increasingly polarized with participants on all sides making sweeping, sometimes absolutist, assertions, the new National Academies’ report doesn’t purport to tell anyone what to do, but rather provides a primer on the relevant issues.