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Mark Zuckerberg faces allegations that he developed a “malicious and fraudulent scheme” to exploit vast amounts of private data to earn Facebook billions and force rivals out of business. A company suing Facebook in a California court claims the social network’s chief executive “weaponised” the ability to access data from any user’s network of friends – the feature at the heart of the Cambridge Analytica scandal. A legal motion filed last week in the superior court of San Mateo draws upon extensive confidential emails and messages between Facebook senior executives including Mark Zuckerberg. He is named individually in the case and, it is claimed, had personal oversight of the scheme. Facebook rejects all claims, and has made a motion to have the case dismissed using a free speech defence.

It claims the first amendment protects its right to make “editorial decisions” as it sees fit. Zuckerberg and other senior executives have asserted that Facebook is a platform not a publisher, most recently in testimony to Congress.

Heather Whitney, a legal scholar who has written about social media companies for the Knight First Amendment Institute at Columbia University, said, in her opinion, this exposed a potential tension for Facebook. “Facebook’s claims in court that it is an editor for first amendment purposes and thus free to censor and alter the content available on its site is in tension with their, especially recent, claims before the public and US Congress to be neutral platforms.” The company that has filed the case, a former startup called Six4Three, is now trying to stop Facebook from having the case thrown out and has submitted legal arguments that draw on thousands of emails, the details of which are currently redacted. Facebook has until next Tuesday to file a motion requesting that the evidence remains sealed, otherwise the documents will be made public.

The Supreme Court on Friday handed down what is arguably the most consequential privacy decision of the digital age, ruling that police need a warrant before they can seize people’s sensitive location information stored by cellphone companies. The case specifically concerns the privacy of cellphone location data, but the ruling has broad implications for government access to all manner of information collected about people and stored by the purveyors of popular technologies. In its decision, the court rejects the government’s expansive argument that people lose their privacy rights merely by using those technologies. Carpenter v. U.S., which was argued by the ACLU, involves Timothy Carpenter, who was convicted in 2013 of a string of burglaries in Detroit. To tie Carpenter to the burglaries, FBI agents obtained — without seeking a warrant — months’ worth of his location information from Carpenter’s cellphone company. They got almost 13,000 data points tracking Carpenter’s whereabouts during that period, revealing where he slept, when he attended church, and much more. Indeed, as Chief Justice John Roberts wrote in Friday’s decision, “when the Government tracks the location of a cell phone it achieves near perfect surveillance, as if it had attached an ankle monitor to the phone’s user.”.

The ACLU argued the agents had violated Carpenter’s Fourth Amendment rights when they obtained such detailed records without a warrant based on probable cause. In a decision written by Chief Justice John Roberts, the Supreme Court agreed, recognizing that the Fourth Amendment must apply to records of such unprecedented breadth and sensitivity: Mapping a cell phone’s location over the course of 127 days provides an all-encompassing record of the holder’s whereabouts. As with GPS information, the timestamped data provides an intimate window into a person’s life, revealing not only his particular movements, but through them his ‘familial, political, professional, religious, and sexual associations.’

The government’s argument that it needed no warrant for these records extends far beyond cellphone location information, to any data generated by modern technologies and held by private companies rather than in our own homes or pockets. To make their case, government lawyers relied on an outdated, 1970s-era legal doctrine that says that once someone shares information with a “third party” — in Carpenter’s case, a cellphone company — that data is no longer protected by the Fourth Amendment. The Supreme Court made abundantly clear that this doctrine has its limits and cannot serve as a carte blanche for the government seizure of any data of its choosing without judicial oversight.

The digital privacy world was rocked late Thursday evening when The New York Times reported on Securus, a prison telecom company that has a service enabling law enforcement officers to locate most American cell phones within seconds. The company does this via a basic Web interface leveraging a location API—creating a way to effectively access a massive real-time database of cell-site records. Securus’ location ability relies on other data brokers and location aggregators that obtain that information directly from mobile providers, usually for the purposes of providing some commercial service like an opt-in product discount triggered by being near a certain location. ("You’re near a Carl’s Jr.! Stop in now for a free order of fries with purchase!") The Texas-based Securus reportedly gets its data from 3CInteractive, which in turn buys data from LocationSmart. Ars reached 3CInteractive's general counsel, Scott Elk, who referred us to a spokesperson. The spokesperson did not immediately respond to our query. But currently, anyone can get a sense of the power of a location API by trying out a demo from LocationSmart itself. Currently, the Supreme Court is set to rule on the case of Carpenter v. United States, which asks whether police can obtain more than 120 days' worth of cell-site location information of a criminal suspect without a warrant. In that case, as is common in many investigations, law enforcement presented a cell provider with a court order to obtain such historical data. But the ability to obtain real-time location data that Securus reportedly offers skips that entire process, and it's potentially far more invasive. Securus’ location service as used by law enforcement is also currently being scrutinized. The service is at the heart of an ongoing federal prosecution of a former Missouri sheriff’s deputy who allegedly used it at least 11 times against a judge and other law enforcement officers. On Friday, Sen. Ron Wyden (D-Ore.) publicly released his formal letters to AT&T and also to the Federal Communications Commission demanding detailed answers regarding these Securus revelations.

If one of the world’s leading smartphone makers, Huawei, turns away from Google’s Android operating system (OS), the US tech giant risks losing a huge number of users, Huawei’s CEO has warned. “[Huawei] will always be on the same line of interest, and if we don’t load Google’s system, Google will lose 700-800 million users in the future,” Ren Zhengfei said in an interview to CNBC.The Chinese telecommunications major was blacklisted last month by the Trump administration after Washington accused the company of spying for Beijing. Google, whose Android OS is used in many of Huawei’s phones, was among the American tech companies prohibited from dealing with Huawei.

Huawei said earlier that it is working on its own mobile operating system called Hongmeng and has already filed a trademark. In his interview, the CEO stressed that Hongmeng will allow the company to protect its growth if it is forced to replace Android, which Huawei does not want to do.

On Tuesday, Facebook announced its forthcoming cryptocurrency, Libra. The company says it intends to integrate it into Facebook’s Messenger and WhatsApp products. Although Facebook says it’s created an “independent” subsidiary, Calibra, and purports that the currency itself will be controlled by an independent Libra Foundation, the coin really a Facebook project. It is not live yet, giving governments the opportunity to kill this project before it actually gets off the ground and gives rise to cybercriminals that couldn’t capitalize on existing cryptocurrencies. In particular, the IRS and FinCEN should take action now.

The Ninth Circuit reversed the district court's denial of defendant's motion to suppress evidence obtained from warrantless searches of his cell phone by a Customs and Border Patrol official. Applying United States v. Cotterman, 709 F.3d 952 (9th Cir. 2013) (en banc), the panel held that manual cell phone searches may be conducted by border officials without reasonable suspicion but that forensic cell phone searches require reasonable suspicion. The panel clarified Cotterman by holding that "reasonable suspicion" in this context means that officials must reasonably suspect that the cell phone contains digital contraband. Furthermore, cell phone searches at the border, whether manual or forensic, must be limited in scope to a search for digital contraband. In this case, the panel held that the officials violated the Fourth Amendment when their warrantless searches exceeded the permissible scope of a border search. Therefore, most of the evidence from the searches of defendant's cell phone should have been suppressed. Finally, the panel held that defendant's Brady claims were unpersuasive. Because the panel vacated defendant's conviction, the panel did not reach his claim of prosecutorial misconduct.

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:

A week ago, we saw a procession of nervous headlines after the Times and then Bloomberg reported that Facebook, its messaging platform WhatsApp and others would now be forced to disclose encrypted messages to law enforcement agencies under a new treaty between the U.S. and the U.K. As I commented at the time, these reports were misleading, mixing up agreements to share data that already exists with changes in the law to break encryption. But now the U.S. and U.K., as well as Australia, are set to write to Facebook to request that the company pauses its plans for cross-platform messaging encryption until backdoors can be added, citing public safety and serious crime as its reasons.EFF described the letter as an “all-out attack on encryption... a staggering attempt to undermine the security and privacy of communications tools used by billions of people,” and urged Facebook not to comply. The organization warned that the move would endanger activists and journalists, and could be used by “authoritarian regimes... to spy on dissidents in the name of combatting terrorism or civil unrest.”

The Wall Street Journal reports Huawei Manages to Make Smartphones Without American Chips. American tech companies are getting the go-ahead to resume business with Chinese smartphone giant Huawei Technologies Co., but it may be too late: It is now building smartphones without U.S. chips. Huawei’s latest phone, which it unveiled in September—the Mate 30 with a curved display and wide-angle cameras that competes with Apple Inc.’s iPhone 11—contained no U.S. parts, according to an analysis by UBS and Fomalhaut Techno Solutions, a Japanese technology lab that took the device apart to inspect its insides. In May, the Trump administration banned U.S. shipments to Huawei as trade tensions with Beijing escalated. That move stopped companies like Qualcomm Inc. and Intel Corp. from exporting chips to the company, though some shipments of parts resumed over the summer after companies determined they weren’t affected by the ban. Meanwhile, Huawei has made significant strides in shedding its dependence on parts from U.S. companies. (At issue are chips from U.S.-based companies, not those necessarily made in America; many U.S. chip companies make their semiconductors abroad.) Huawei long relied on suppliers like Qorvo Inc., the North Carolina maker of chips that are used to connect smartphones with cell towers, and Skyworks Solutions Inc., a Woburn, Mass.-based company that makes similar chips. It also used parts from Broadcom Inc., the San Jose-based maker of Bluetooth and Wi-Fi chips, and Cirrus Logic Inc., an Austin, Texas-based company that makes chips for producing sound.

Vowing to take on the telecom giants that have monopolized the web for private profit, Sen. Bernie Sanders on Friday unveiled a $150 billion plan to make the internet a public utility, break up and tightly regulate corporate behemoths like Verizon and AT&T, and provide high-speed broadband for everyone in the United States.

It is outrageous that across the country millions of Americans and so many of our communities do not have access to affordable high-speed internet," Sanders, a 2020 Democratic presidential candidate, said in a statement. "Access to the internet is a necessity in today's economy, and it should be available for all." Sanders vowed that, if elected president in 2020, he will ensure that every American household has affordable and high-speed internet by the end of his first term.

Sanders' plan, posted on his website, would provide $150 billion in federal funding through the Green New Deal to help states and municipalities "build publicly owned and democratically controlled, co-operative, or open access broadband networks." The proposal also calls for: Reinstating the net neutrality protections that President Donald Trump's telecom-friendly FCC repealed in 2017; Using anti-trust laws to break up internet and cable monopolies; Ensuring that all public housing in the U.S. offers free broadband; Requiring all providers to "offer a Basic Internet Plan that provides quality broadband speeds at an affordable price"; and Guaranteeing that all new broadband infrastructure is "resilient to the effects of climate change" and "capable of managing high amounts of renewable energy."

After NBC News on Wednesday published a trove of leaked documents that show how Facebook "treated user data as a bargaining chip with external app developers," White House hopeful Sen. Bernie Sanders declared that it is time "to break Facebook up."

When British investigative journalist Duncan Campbell first shared the trove of documents with a handful of media outlets including NBC News in April, journalists Olivia Solon and Cyrus Farivar reported that "Facebook CEO Mark Zuckerberg oversaw plans to consolidate the social network's power and control competitors by treating its users' data as a bargaining chip, while publicly proclaiming to be protecting that data." With the publication Wednesday of nearly 7,000 pages of records—which include internal Facebook emails, web chats, notes, presentations, and spreadsheets—journalists and the public can now have a closer look at exactly how the company was using the vast amount of data it collects when it came to bargaining with third parties.

According to Solon and Farivar of NBC: Taken together, they show how Zuckerberg, along with his board and management team, found ways to tap Facebook users' data—including information about friends, relationships, and photos—as leverage over the companies it partnered with. In some cases, Facebook would reward partners by giving them preferential access to certain types of user data while denying the same access to rival companies. For example, Facebook gave Amazon special access to user data because it was spending money on Facebook advertising. In another case the messaging app MessageMe was cut off from access to data because it had grown too popular and could compete with Facebook.

The United Kingdom has become the first Western nation to move ahead with large-scale censorship of the internet, effectively creating regulation that will limit freedom on the last frontier of digital liberty. In a move that has the nation reeling, Prime Minister Boris Johnson has unveiled rules that will punish internet companies with fines, and even imprisonment, if they fail to protect users from “harmful and illegal content.”

Couched in language that suggests this is being done to protect children from pedophiles and vulnerable people from cyberbullying, the proposals will place a massive burden on small companies. Further, they will ultimately make it impossible for those not of the pervasive politically correct ideology to produce and share content.

Wedbush analyst Daniel Ives called the decline of iPhone sales in China a "doomsday type" like decline. Ives said the fall was an "unprecedented" drop and was "not surprising given the essential lockdown that most of China saw" in February. Wedbush expects Chinese demand to come back online in the second half of the year. * * * We've explained that economic paralysis in China started in early February and continues to this day. Alternative data first showed us the incoming economic crash developing in early February, only to be confirmed weeks later. Twin shocks plague the Chinese economy, which is a supply shock with manufacturers operating at less than full capacity, along with a demand shock, where consumers have been confined to their homes in forced quarantine, unable to spend.  So, on Monday morning, when new data from the China Academy of Information and Communications Technology (CAICT) reveals Apple smartphone sales in China were halved in February, this really shouldn't surprise ZeroHedge readers, considering they've been well informed about what would happen next. 

And it wasn't just Apple with plunging activity, all mobile phone brands operating in China saw shipments halved over the month.  CAICT said 6.34 million devices were shipped last month, down 54.7% from 14 million in the same month the previous year. This was the lowest level of February shipments since 2012, when the CAICT data first became available.  Android brands, including Huawei and Xiaomi, accounted for most of the drop, collectively saw shipments at 5.85 million units for the month, compared to 12.72 million units last year. Apple shipped 494,000 last month, down from 1.27 million in February 2019.

The White House and U.S. intelligence chiefs Wednesday backed making permanent a law that allows for the collection of digital communications of foreigners overseas, escalating a fight in Congress over privacy and security. The law, enshrined in Section 702 of the Foreign Intelligence Surveillance Act, is due to expire on December 31 unless Congress votes to reauthorize it, but is considered vital by U.S. intelligence agencies. Privacy advocates have criticized the law though for allowing the incidental collection of data belonging to millions of Americans without a search warrant. The push to make the law permanent may lead to a contentious debate over renewal of Section 702 in Congress, where lawmakers in both parties are deeply divided over whether to adopt transparency and oversight reforms

Reuters reported in March that the Trump administration supported renewal of Section 702 without any changes, citing an unnamed White House official, but it was not clear at the time whether it wanted the law made permanent.

The White House on Wednesday made public for the first time the rules by which the government decides to disclose or keep secret software flaws that can be turned into cyberweapons — whether by U.S. agencies hacking for foreign intelligence, money-hungry criminals or foreign spies seeking to penetrate American computers. The move to publish an un­classified charter responds to years of criticism that the process was unnecessarily opaque, fueling suspicion that it cloaked a stockpile of software flaws that the National Security Agency was hoarding to go after foreign targets but that put Americans’ cyber­security at risk.

The rules are part of the “Vulnerabilities Equities Process,” which the Obama administration revamped in 2014 as a multi­agency forum to debate whether and when to inform companies such as Microsoft and Juniper that the government has discovered or bought a software flaw that, if weaponized, could affect the security of their product. The Trump administration has mostly not altered the rules under which the government reaches a decision but is disclosing its process. Under the VEP, an “equities review board” of at least a dozen national security and civilian agencies will meet monthly — or more often, if a need arises — to discuss newly discovered vulnerabilities. Besides the NSA, the CIA and the FBI, the list includes the Treasury, Commerce and State departments, and the Office of Management and Budget. The priority is on disclosure, the policy states, to protect core Internet systems, the U.S. economy and critical infrastructure, unless there is “a demonstrable, overriding interest” in using the flaw for intelligence or law enforcement purposes. The government has long said that it discloses the vast majority — more than 90 percent — of the vulnerabilities it discovers or buys in products from defense contractors or other sellers. In recent years, that has amounted to more than 100 a year, according to people familiar with the process. But because the process was classified, the National Security Council, which runs the discussion, was never able to reveal any numbers. Now, Joyce said, the number of flaws disclosed and the number retained will be made public in an annual report. A classified version will be sent to Congress, he said.

India is the world’s largest democracy and is home to 13.5 percent of the world’s internet users. So the Indian Supreme Court’s August ruling that privacy is a fundamental, constitutional right for all of the country’s 1.32 billion citizens was momentous. But now, close to three months later, it’s still unclear exactly how the decision will be implemented. Will it change everything for internet users? Or will the status quo remain? The most immediate consequence of the ruling is that tech companies such as Facebook, Twitter, Google, and Alibaba will be required to rein in their collection, utilization, and sharing of Indian user data. But the changes could go well beyond technology. If implemented properly, the decision could affect national politics, business, free speech, and society. It could encourage the country to continue to make large strides toward increased corporate and governmental transparency, stronger consumer confidence, and the establishment and growth of the Indian “individual” as opposed to the Indian collective identity. But that’s a pretty big if. Advertisement The privacy debate in India was in many ways sparked by a controversy that has shaken up the landscape of national politics for several months. It began in 2016 as a debate around a social security program that requires participating citizens to obtain biometric, or Aadhaar, cards. Each card has a unique 12-digit number and records an individual’s fingerprints and irises in order to confirm his or her identity. The program was devised to increase the ease with which citizens could receive social benefits and avoid instances of fraud. Over time, Aadhaar cards have become mandatory for integral tasks such as opening bank accounts, buying and selling property, and filing tax returns, much to the chagrin of citizens who are uncomfortable about handing over their personal data. Before the ruling, India had weak privacy protections in place, enabling unchecked data collection on citizens by private companies and the government. Over the past year, a number of large-scale data leaks and breaches that have impacted major Indian corporations, as well as the Aadhaar program itself, have prompted users to start asking questions about the security and uses of their personal data.

n order to bolster the ruling the government will also be introducing a set of data protection laws that are to be developed by a committee led by retired Supreme Court judge B.N. Srikrishna. The committee will study the data protection landscape, develop a draft Data Protection Bill, and identify how, and whether, the Aadhaar Act should be amended based on the privacy ruling.

Should the data protection laws be implemented in an enforceable manner, the ruling will significantly impact the business landscape in India. Since the election of Prime Minister Narendra Modi in May 2014, the government has made fostering and expanding the technology and startup sector a top priority. The startup scene has grown, giving rise to several promising e-commerce companies, but in 2014, only 12 percent of India’s internet users were online consumers. If the new data protection laws are truly impactful, companies will have to accept responsibility for collecting, utilizing, and protecting user data safely and fairly. Users would also have a stronger form of redress when their newly recognized rights are violated, which could transform how they engage with technology. This has the potential to not only increase consumer confidence but revitalize the Indian business sector, as it makes it more amenable and friendly to outside investors, users, and collaborators.

Now Google, at the behest of its friends in Washington, is actively censoring – essentially blocking access to – any websites which seek to warn American workers of the ongoing effort to further attack their incomes, social services, and life conditions by the U.S. central government, and which seek to warn against the impending warfare between U.S.-led Nato and other forces against countries like Iran, Russia, and China, which have in no way threatened the U.S. state or its people

Under its new so-called anti-fake-news program, Google algorithms have in the past few months moved socialist, anti-war, and progressive websites from previously prominent positions in Google searches to positions up to 50 search result pages from the first page, essentially removing them from the search results any searcher will see.    CounterPunch, World Socialist Website, Democracy Now, American Civil liberties Union, Wikileaks are just a few of the websites which have experienced severe reductions in their returns from Google searches.  World Socialist Website, to cite just one example, has experienced a 67% drop in its returns from Google since the new policy was announced. This conversion of Google into a Censorship engine is not a trivial development.   Google searches are currently a primary means by which workers and other members of the public seek information about their lives and their world.  Every effort must be made to combat this serious infringement on the basic rights of freedom of speech and freedom of press.

A US District Judge in San Jose, California says she was "disturbed" over Google's data collection practices, after learning that the company still collects and uses data from users in its Chrome browser's so-called 'incognito' mode - and has demanded an explanation "about what exactly Google does," according to Bloomberg.

In a class-action lawsuit that describes the company's private browsing claims as a "ruse" - and "seeks $5,000 in damages for each of the millions of people whose privacy has been compromised since June of 2016," US District Judge Lucy Koh said she finds it "unusual" that the company would make the "extra effort" to gather user data if it doesn't actually use the information for targeted advertising or to build user profiles.Koh has a long history with the Alphabet Inc. subsidiary, previously forcing the Mountain View, California-based company to disclose its scanning of emails for the purposes of targeted advertising and profile building.In this case, Google is accused of relying on pieces of its code within websites that use its analytics and advertising services to scrape users’ supposedly private browsing history and send copies of it to Google’s servers. Google makes it seem like private browsing mode gives users more control of their data, Amanda Bonn, a lawyer representing users, told Koh. In reality, “Google is saying there’s basically very little you can do to prevent us from collecting your data, and that’s what you should assume we’re doing,” Bonn said.Andrew Schapiro, a lawyer for Google, argued the company’s privacy policy “expressly discloses” its practices. “The data collection at issue is disclosed,” he said.Another lawyer for Google, Stephen Broome, said website owners who contract with the company to use its analytics or other services are well aware of the data collection described in the suit. -Bloomberg

Koh isn't buying it - arguing that the company is effectively tricking users under the impression that their information is not being transmitted to the company."I want a declaration from Google on what information they’re collecting on users to the court’s website, and what that’s used for," Koh demanded.The case is Brown v. Google, 20-cv-03664, U.S. District Court, Northern District of California (San Jose), via Bloomberg.

A coalition of state attorneys general filed an antitrust case against Google on Wednesday. They accused Google of giving Facebook unfair advertising advantages to stop it from getting into an area of adtech called "header bidding." Google perceived a move by Facebook into this space as a threat, they said. Per Wired, if this deal is proved to be true, it could spell big trouble for Google and Facebook, as it would fall under part of the Sherman Antitrust Act that has a relatively low bar for illegality. Google denied the claims, and Facebook was not immediately available for comment.

NSO Group, an Israeli vendor of “lawful” hacking tools designed to infect a target’s phone with spyware, is regarded by many as a bad actor. The group claims to be shocked when its products are misused, as they have been in Mexico, Saudi Arabia and the United Arab Emirates. One incident might be excusable, but the group’s continued enabling of misbehavior has resulted in well-earned enmity. Recently, Facebook struck back. NSO Group deployed a weaponized exploit for Facebook’s WhatsApp messenger, integrated it into its Pegasus malcode system, and offered it to its customers (a mix of legitimate government agencies and nefarious government actors) interested in hacking WhatsApp users beginning in April. This was a particularly powerful exploit because it required no user interaction and the only sign of the exploit a user might discover would be a series of “missed calls” received on the user’s phone. Facebook patched the vulnerability on May 13, blocking the NSO campaign. Facebook wasn’t satisfied with simply closing the vulnerability. In cooperation with CitizenLab, Facebook identified more than 100 incidents in which NSO Group’s WhatsApp exploit appeared to target human rights activists and journalists. In total, Facebook and CitizenLab identified 1,400 targets (which apparently also included government officials in U.S. allied governments). They then filed a federal lawsuit against NSO Group, closed NSO Group member accounts, and, most damaging of all to NSO’s customers, sent a notice to all identified victims alerting them of the attack. This meant that all targets, both dissidents and drug lords alike, were notified of this surveillance. The lawsuit will be a case to watch. Facebook has already revealed a large amount of detail concerning NSO Group’s internal workings, including the hands-on nature of its business model: NSO Group actively assists countries in hacking targets. For example, we now know that while an NSO Group employee may not press the “Enter” key for a target, NSO employees do act to advise and consult on targeting; and NSO Group is largely responsible for running the infrastructure used to exploit targets and manage implants. Expect more revelations like this as the case proceeds.