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oogle on Monday confronted the second major U.S. antitrust trial in two months to cast the internet powerhouse as a brazen bully that uses its immense wealth and people’s dependence on one of its main products to stifle competition at consumers’ expense. The trial that opened in a San Francisco federal court targets the Google Play Store that distributes apps for the company’s Android software that powers virtually all the world’s smartphones that aren’t made by Apple. The case, stemming from a lawsuit filed by video game maker Epic Games, alleges Google has created an illegal monopoly on Android apps primarily so it can boost its profits through commissions ranging from 15% to 30% on purchases made within an app. “The result of what Google is doing is higher prices, lower quality and less choice for everybody,” Epic attorney Gary Bornstein said Monday during a 45-minute opening statement before the 10-person jury that will decide the case.

On Monday, a hacking group calling itself the “ShadowBrokers” announced an auction for what it claimed were “cyber weapons” made by the NSA. Based on never-before-published documents provided by the whistleblower Edward Snowden, The Intercept can confirm that the arsenal contains authentic NSA software, part of a powerful constellation of tools used to covertly infect computers worldwide. The provenance of the code has been a matter of heated debate this week among cybersecurity experts, and while it remains unclear how the software leaked, one thing is now beyond speculation: The malware is covered with the NSA’s virtual fingerprints and clearly originates from the agency. The evidence that ties the ShadowBrokers dump to the NSA comes in an agency manual for implanting malware, classified top secret, provided by Snowden, and not previously available to the public. The draft manual instructs NSA operators to track their use of one malware program using a specific 16-character string, “ace02468bdf13579.” That exact same string appears throughout the ShadowBrokers leak in code associated with the same program, SECONDDATE.

By James Bamford Last summer, cyber investigators plowing through the thousands of leaked emails from the Democratic National Committee uncovered a clue.A user named “Феликс Эдмундович” modified one of the documents using settings in the Russian language. Translated, his name was Felix Edmundovich, a pseudonym referring to Felix Edmundovich Dzerzhinsky, the chief of the Soviet Union’s first secret-police organization, the Cheka.It was one more link in the chain of evidence pointing to Russian President Vladimir Putin as the man ultimately behind the operation.During the Cold War, when Soviet intelligence was headquartered in Dzerzhinsky Square in Moscow, Putin was a KGB officer assigned to the First Chief Directorate. Its responsibilities included “active measures,” a form of political warfare that included media manipulation, propaganda and disinformation. Soviet active measures, retired KGB Major General Oleg Kalugin told Army historian Thomas Boghart, aimed to discredit the United States and “conquer world public opinion.”As the Cold War has turned into the code war, Putin recently unveiled his new, greatly enlarged spy organization: the Ministry of State Security, taking the name from Joseph Stalin’s secret service. Putin also resurrected, according to James Clapper, the U.S. director of national intelligence, some of the KGB’s old active- measures tactics. On October 7, Clapper issued a statement: “The U.S. Intelligence community is confident that the Russian government directed the recent compromises of emails from U.S. persons and institutions, including from U.S. political organizations.” Notably, however, the FBI declined to join the chorus, according to reports by the New York Times and CNBC.A week later, Vice President Joe Biden said on NBC’s Meet the Press that "we're sending a message" to Putin and "it will be at the time of our choosing, and under the circumstances that will have the greatest impact." When asked if the American public would know a message was sent, Biden replied, "Hope not." Meanwhile, the CIA was asked, according to an NBC report on October 14, “to deliver options to the White House for a wide-ranging ‘clandestine’ cyber operation designed to harass and ‘embarrass’ the Kremlin leadership.”But as both sides begin arming their cyberweapons, it is critical for the public to be confident that the evidence is really there, and to understand the potential consequences of a tit-for-tat cyberwar escalating into a real war. 

This is a prospect that has long worried Richard Clarke, the former White House cyber czar under President George W. Bush. “It’s highly likely that any war that began as a cyberwar,” Clarke told me last year, “would ultimately end up being a conventional war, where the United States was engaged with bombers and missiles.”The problem with attempting to draw a straight line from the Kremlin to the Clinton campaign is the number of variables that get in the way. For one, there is little doubt about Russian cyber fingerprints in various U.S. campaign activities. Moscow, like Washington, has long spied on such matters. The United States, for example, inserted malware in the recent Mexican election campaign. The question isn’t whether Russia spied on the U.S. presidential election, it’s whether it released the election emails.Then there’s the role of Guccifer 2.0, the person or persons supplying WikiLeaks and other organizations with many of the pilfered emails. Is this a Russian agent? A free agent? A cybercriminal? A combination, or some other entity? No one knows.There is also the problem of groupthink that led to the war in Iraq. For example, just as the National Security Agency, the Central Intelligence Agency and the rest of the intelligence establishment are convinced Putin is behind the attacks, they also believed it was a slam-dunk that Saddam Hussein had a trove of weapons of mass destruction. Consider as well the speed of the political-hacking investigation, followed by a lack of skepticism, culminating in a rush to judgment. After the Democratic committee discovered the potential hack last spring, it called in the cybersecurity firm CrowdStrike in May to analyze the problem.

CrowdStrike took just a month or so before it conclusively determined that Russia’s FSB, the successor to the KGB, and the Russian military intelligence organization, GRU, were behind it. Most of the other major cybersecurity firms quickly fell in line and agreed. By October, the intelligence community made it unanimous. That speed and certainty contrasts sharply with a previous suspected Russian hack in 2010, when the target was the Nasdaq stock market. According to an extensive investigation by Bloomberg Businessweek in 2014, the NSA and FBI made numerous mistakes over many months that stretched to nearly a year. “After months of work,” the article said, “there were still basic disagreements in different parts of government over who was behind the incident and why.”  There was no consensus­, with just a 70 percent certainty that the hack was a cybercrime. Months later, this determination was revised again: It was just a Russian attempt to spy on the exchange in order to design its own. The federal agents also considered the possibility that the Nasdaq snooping was not connected to the Kremlin. Instead, “someone in the FSB could have been running a for-profit operation on the side, or perhaps sold the malware to a criminal hacking group.” Again, that’s why it’s necessary to better understand the role of Guccifer 2.0 in releasing the Democratic National Committee and Clinton campaign emails before launching any cyberweapons.

A coalition of 26 organizations, including the American Civil Liberties Union (ACLU) and Google, signed a letter Monday asking lawmakers to delay a measure that would expand the government’s hacking authority. The letter asks Senate Majority Leader Mitch McConnellMitch McConnellTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Ky.) and Minority Leader Harry ReidHarry ReidNevada can’t trust Trump to protect public lands Sanders, Warren face tough decision on Trump Google, ACLU call to delay government hacking rule MORE (D-Nev.), plus House Speaker Paul RyanPaul RyanTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Wis.), and House Minority Leader Nancy Pelosi (D-Calif.) to further review proposed changes to Rule 41 and delay its implementation until July 1, 2017. ADVERTISEMENTThe Department of Justice’s alterations to the rule would allow law enforcement to use a single warrant to hack multiple devices beyond the jurisdiction that the warrant was issued in. The FBI used such a tactic to apprehend users of the child pornography dark website, Playpen. It took control of the dark website for two weeks and after securing two warrants, installed malware on Playpen users computers to acquire their identities. But the signatories of the letter — which include advocacy groups, companies and trade associations — are raising questions about the effects of the change. 

AT&T said on Monday afternoon that it had withdrawn its $39 billion takeover bid for T-Mobile USA, acknowledging that it could not overcome opposition from the Obama administration to creating the nation’s biggest cellphone service provider.The company said in a statement that it would continue to invest in wireless spectrum, but could not overcome resistance from both the Justice Department and the Federal Communications Commission.

Under the terms of the deal, AT&T will pay Deutsche Telekom $4 billion in cash and wireless spectrum as a break-up fee, and the two companies will begin a seven-year roaming agreement that will expand T-Mobile’s national coverage.

Some time on Tuesday afternoon, about 50,000 Comcast Internet customers in Houston will become part of a massive public Wi-Fi hotspot network, a number that will swell to 150,000 by the end of June. Comcast will begin activating a feature in its Arris Touchstone Telephony Wireless Gateway Modems that sets up a public Wi-Fi hotspot alongside a residential Internet customer’s private home network. Other Comcast customers will be able to log in to the hotspots for free using a computer, smartphone or other mobile device. And once they log into one, they’ll be automatically logged in to others when their devices “see” them. Comcast says the hotspot – which appears as “xfinitywifi” to those searching for a Wi-Fi connection – is completely separate from the home network. Someone accessing the Net through the hotspot can’t get to the computers, printers, mobile devices, streaming boxes and more sitting on the host network. Comcast officials also say that people using the Internet via the hotspot won’t slow down Internet access on the home network. Additional capacity is allotted to handle the bandwidth. You can read more about Comcast’s reason for doing this in my report on HoustonChronicle.com.

What’s interesting about this move is that, by default, the feature is being turned on without its subscribers’ prior consent. It’s an opt-out system – you have to take action to not participate. Comcast spokesman Michael Bybee said on Monday that notices about the hotspot feature were mailed to customers a few weeks ago, and email notifications will go out after it’s turned on. But it’s a good bet that this will take many Comcast customers by surprise. If you have one of these routers and don’t want to host a public Wi-Fi hotspot, here’s how to turn it off.

The additional capacity for public hotspot users is provided through a separate channel on the modem called a “service flow,” according to Comcast. But the speed of the connection reflects the tier of the subscriber hosting the hotspot. For example, if you connect to a hotspot hosted by a home user with a 25-Mbps connection, it will be slower than if you connect to a host system on the 50-Mbps tier.

Democratic lawmakers will unveil a piece of bicameral legislation Tuesday that would force the Federal Communications Commission to ban fast lanes on the Internet. The proposal, put forward by Senate Judiciary Committee chair Patrick Leahy (D-Vt.) and Rep. Doris Matsui (D-Calif.), requires the FCC to use whatever authority it sees fit to make sure that Internet providers don't speed up certain types of content (like Netflix videos) at the expense of others (like e-mail). It wouldn't give the commission new powers, but the bill — known as the Online Competition and Consumer Choice Act — would give the FCC crucial political cover to prohibit what consumer advocates say would harm startup companies and Internet services by requiring them to pay extra fees to ISPs. "Americans are speaking loud and clear," said Leahy, who is holding a hearing on net neutrality in Vermont this summer. "They want an Internet that is a platform for free expression and innovation, where the best ideas and services can reach consumers based on merit rather than based on a financial relationship with a broadband provider."

The Democratic bill is another sign that net neutrality is dividing lawmakers along partisan lines. In May, Rep. Bob Latta (R-Ohio) introduced a bill that would prevent the FCC from reclassifying broadband. A Democratic aide conceded Monday that the Leahy-Matsui bill is unlikely to attract Republican cosponsors. The fact that Republicans control the House make it unlikely that the Leahy-Matsui bill will advance very far. Still, the politics of net neutrality are obscuring the underlying economics at stake, according to the aide, who asked not to be named because he wasn't authorized to speak publicly.

"People are missing the point," the aide said. "The point is: Ban paid prioritization. Because that'll fundamentally change how the Internet works." FCC Chairman Tom Wheeler has said that he's reserving the reclassification option in case his existing plan fails to protect consumers. He has been reluctant to use that option so far, likely because it would be politically controversial. But increasingly, it seems net neutrality is divisive enough without him.

As Washington weighs new cybersecurity steps amid a public backlash over mass surveillance, U.S. tech companies warned President Barack Obama not to weaken increasingly sophisticated encryption systems designed to protect consumers' privacy.In a strongly worded letter to Obama on Monday, two industry associations for major software and hardware companies said, "We are opposed to any policy actions or measures that would undermine encryption as an available and effective tool."The Information Technology Industry Council and the Software and Information Industry Association, representing tech giants, including Apple Inc, Google Inc, Facebook Inc, IBM and Microsoft Corp, fired the latest salvo in what is shaping up to be a long fight over government access into smart phones and other digital devices.

Four months from now, at the same time that the National Security Agency finally abandons the massive domestic telephone dragnet exposed by whistleblower Edward Snowden, it will also stop perusing the vast archive of data collected by the program. The NSA announced on Monday that it will expunge all the telephone metadata it previously swept up, citing Section 215 of the U.S.A Patriot Act. The program was ruled illegal by a federal appeals court in May. In June, Congress voted to end the program, but gave the NSA until the end of November to phase it out. The historical metadata —  records of American phone calls showing who called who, when, and for how long — will be put out of the reach of analysts on November 29, although technical personnel will have access for three more months. The program started 14 years ago, and operated under rules requiring data be retained for five years, and then destroyed.

The only possible hold-up, ironically, would be if any of the civil lawsuits prompted by the program prohibit the destruction of the data. “The telephony metadata” will be “preserved solely because of preservation obligations in pending civil litigation,” the Office of the Director of National Intelligence announced. “As soon as possible, NSA will destroy the Section 215 bulk telephony metadata upon expiration of its litigation preservation obligations.” ACLU staff attorney Alex Abdo told The Intercept his organization is “pleased that the NSA intends to purge the call records it has collected illegally.” But, he added: “Even with today’s pledge, the devil may be in the details.”

They say what goes around comes around, and there's perhaps nowhere that rings more true than in the world of government surveillance. Such was the case on Monday morning when Hacking Team, the Italian company known for selling electronic intrusion tools to police and federal agencies around the world, awoke to find that it had been hacked itself—big time—apparently exposing its complete client list, email spools, invoices, contracts, source code, and more. Those documents show that not only has the company been selling hacking tools to a long list of foreign governments with dubious human rights records, but it’s also establishing a nice customer base right here in the good old US of A. The cache, which sources told Motherboard is legitimate, contains more than 400 gigabytes of files, many of which confirm previous reports that the company has been selling industrial-grade surveillance software to authoritarian governments. Hacking Team is known in the surveillance world for its flagship hacking suite, Remote Control System (RCS) or Galileo, which allows its government and law enforcement clients to secretly install “implants” on remote machines that can steal private emails, record Skype calls, and even monitor targets through their computer's webcam. Hacking Team in North America

According to leaked contracts, invoices and an up-to-date list of customer subscriptions, Hacking Team’s clients—which the company has consistently refused to name—also include Kazakhstan, Azerbaijan, Oman, Saudi Arabia, Uzbekistan, Bahrain, Ethiopia, Nigeria, Sudan and many others. The list of names matches the findings of Citizen Lab, a research lab at the University of Toronto's Munk School of Global Affairs that previously found traces of Hacking Team on the computers of journalists and activists around the world. Last year, the Lab's researchers mapped out the worldwide collection infrastructure used by Hacking Team's customers to covertly transport stolen data, unveiling a massive network comprised of servers based in 21 countries. Reporters Without Borders later named the company one of the “Enemies of the Internet” in its annual report on government surveillance and censorship.

we’ve only scratched the surface of this massive leak, and it’s unclear how Hacking Team will recover from having its secrets spilling across the internet for all to see. In the meantime, the company is asking all customers to stop using its spyware—and likely preparing for the worst.

Activists worried about online privacy are sending Congress a message with some old-school technology: They're sending faxes -- more than 6.2 million, they claim -- to express opposition to the Cybersecurity Information Sharing Act (CISA).Why faxes? "Congress is stuck in 1984 and doesn't understand modern technology," according to the campaign Fax Big Brother. The week-long campaign was organized by the nonpartisan Electronic Frontier Foundation, the group Access and Fight for the Future, the activist group behind the major Internet protests that helped derail a pair of anti-piracy bills in 2012. It also has the backing of a dozen groups like the ACLU, the American Library Association, National Association of Criminal Defense Lawyers and others.

CISA aims to facilitate information sharing regarding cyberthreats between the government and the private sector. The bill gained more attention following the massive hack in which the records of nearly 22 million people were stolen from government computers."The ability to easily and quickly share cyber attack information, along with ways to counter attacks, is a key method to stop them from happening in the first place," Sen. Dianne Feinstein, D-California, who helped introduce CISA, said in a statement after the hack. Senate leadership had planned to vote on CISA this week before leaving for its August recess. However, the bill may be sidelined for the time being as the Republican-led Senate puts precedent on a legislative effort to defund Planned Parenthood.Even as the bill was put on the backburner, the grassroots campaign to stop it gained steam. Fight for the Future started sending faxes to all 100 Senate offices on Monday, but the campaign really took off after it garnered attention on the website Reddit and on social media. The faxed messages are generated by Internet users who visit faxbigbrother.com or stopcyberspying.com -- or who simply send a message via Twitter with the hashtag #faxbigbrother. To send all those faxes, Fight for the Future set up a dedicated server and a dozen phone lines and modems they say are capable of sending tens of thousands of faxes a day.

Fight for the Future told CBS News that it has so many faxes queued up at this point, that it may take months for Senate offices to receive them all, though the group is working on scaling up its capability to send them faster. They're also limited by the speed at which Senate offices can receive them.

President Obama plans to announce legislation Tuesday that would shield companies from lawsuits for sharing computer threat data with the government in an effort to prevent cyber­attacks. On the heels of a destructive attack at Sony Pictures Entertainment and major breaches at JPMorgan Chase and retail chains, Obama is intent on capitalizing on the heightened sense of urgency to improve the security of the nation’s networks, officials said. “He’s been doing everything he can within his executive authority to move the ball on this,” said a senior administration official who spoke on the condition of anonymity to discuss legislation that has not yet been released. “We’ve got to get something in place that allows both industry and government to work more closely together.”

The legislation is part of a broader package, to be sent to Capitol Hill on Tuesday, that includes measures to help protect consumers and students against ­cyberattacks and to give law enforcement greater authority to combat cybercrime. The provision’s goal is to “enshrine in law liability protection for the private sector for them to share specific information — cyberthreat indicators — with the government,” the official said. Some analysts questioned the need for such legislation, saying there are adequate measures in place to enable sharing between companies and the government and among companies.

“We think the current information-sharing regime is adequate,” said Mark Jaycox, legislative analyst at the Electronic Frontier Foundation, a privacy group. “More companies need to use it, but the idea of broad legal immunity isn’t needed right now.” The administration official disagreed. The lack of such immunity is what prevents many companies from greater sharing of data with the government, the official said. “We have heard that time and time again,” the official said. The proposal, which builds on a 2011 administration bill, grants liability protection to companies that provide indicators of cyberattacks and threats to the Department of Homeland Security.

Verizon says it will soon offer customers a way to opt out from having their smartphone and tablet browsing tracked via a hidden un-killable tracking identifier. The decision came after a ProPublica article revealed that an online advertiser, Turn, was exploiting the Verizon identifier to respawn tracking cookies that users had deleted. Two days after the article appeared, Turn said it would suspend the practice of creating so-called "zombie cookies" that couldn't be deleted. But Verizon couldn't assure users that other companies might not also exploit the number - which was transmitted automatically to any website or app a user visited from a Verizon-enabled device - to build dossiers about people's behavior on their mobile devices. Verizon subsequently updated its website to note Turn's decision and declared that it would "work with other partners to ensure that their use of [the undeletable tracking number] is consistent with the purposes we intended." Previously, its website had stated: "It is unlikely that sites and ad entities will attempt to build customer profiles.

However, policing the hundreds of companies in the online tracking business was likely to be a difficult task for Verizon. And so, on Monday, Verizon followed in the footsteps of AT&T, which had already declared in November that it would stop inserting the hidden undeletable number in its users' Web traffic. In a statement emailed to reporters on Friday, Verizon said, "We have begun working to expand the opt-out to include the identifier referred to as the UIDH, and expect that to be available soon." Previously, users who opted out from Verizon's program were told that information about their demographics and Web browsing behavior would no longer be shared with advertisers, but that the tracking number would still be attached to their traffic. For more coverage, read ProPublica's previous reporting on Verizon's indestructible tracking and how one company used the tool to create zombie cookies.

Montreal (AFP) - A Canadian charged for refusing to give border agents his smartphone passcode was expected Thursday to become the first to test whether border inspections can include information stored on devices.Alain Philippon, 38, risks up to a year in prison and a fine of up to Can$25,000 (US$20,000) if convicted of obstruction.He told local media that he refused to provide the passcode because he considered information on his smartphone to be "personal."Philippon was transiting through the port city of Halifax on his way home from a Caribbean vacation on Monday when he was selected for an in-depth exam.

"Philippon refused to divulge the passcode for his cell phone, preventing border services officers from their duties," Canada Border Services Agency said in an email.The agency insists that the Customs Act authorizes its officers to examine "all goods and conveyances including electronic devices, such as cell phones and laptops."But, according to legal experts, the issue of whether a traveler must reveal the password for an electronic device at a border crossing has not been tested in court. "(It's) one thing for them to inspect it, another thing for them to compel you to help them," Rob Currie, director of the Law and Technology Institute at Dalhousie University, told public broadcaster CBC.Philippon is scheduled to appear in court on May 12.