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Paul Merrell

U.S. vs. Facebook: A Playbook for SEC, DOJ and EDNY - 0 views

  • Six4Three recently published a playbook for the FTC to get to the bottom of Facebook’s secretive deals selling user data without privacy controls. In light of The New York Times article reporting multiple criminal investigations into Facebook surrounding these secretive deals, we’re publishing the playbook for criminal investigators.Perhaps the most important recognition at the outset is that the secretive deals that have been reported, whether those with a handful of device manufacturers or with 150 large technology companies, are just the tip of the iceberg. Those secretive deals handing over user data in exchange for gobs of cash were merely part and parcel of a much broader illegal scheme that begins with Facebook’s transition to mobile in 2012 and continues to this very day. We believe this illegal scheme amounts to a clear RICO violation. The United Kingdom Parliament agrees. Here’s how criminal investigators can overcome Facebook’s incredibly effective concealment campaign and bring a viable RICO case.Facebook’s pattern of racketeering activity is a play in three acts from at least 2012 to present. The first act is all about the desperation resulting from the collapse of Facebook’s desktop advertising business right around its IPO and the various securities violations that resulted. The second act is about covering up those securities violations by illegally building its mobile advertising business via extortion and wire fraud in order to close the gap in Facebook’s revenue projections before the world took notice, which likely resulted in additional securities violations. The third act is about covering up the extortion and wire fraud by lying to government officials investigating Facebook while continuing to effectuate the scheme. We are still in the third act.For almost a decade now Facebook has been covering up one illegal act with another in order to hide how it managed to ramp up its mobile advertising business faster than any other business in the history of capitalism. The abuses of Facebook’s data, from Russian interference in the 2016 election to Cambridge Analytica and Brexit, all stem in substantial part from the decisions Facebook knowingly, willfully and maliciously made to facilitate this criminal conspiracy. Put simply, Facebook’s transition to mobile destabilized the world.
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    This is so reminiscent of Microsoft tactics at the point that antitrust regulators stepped in.
Paul Merrell

Senate narrowly rejects new FBI surveillance | TheHill - 0 views

  • The Senate narrowly rejected expanding the FBI's surveillance powers Wednesday in the wake of the worst mass shooting in U.S. history.  Senators voted 58-38 on a procedural hurdle, with 60 votes needed to move forward. Majority Leader Mitch McConnellMitch McConnellOvernight Finance: Wall Street awaits Brexit result | Clinton touts biz support | New threat to Puerto Rico bill? | Dodd, Frank hit back The Trail 2016: Berning embers McConnell quashes Senate effort on guns MORE, who initially voted "yes," switched his vote, which allows him to potentially bring the measure back up. 
  • The Senate GOP proposal—being offered as an amendment to the Commerce, Justice and Science appropriations bill—would allow the FBI to use "national security letters" to obtain people's internet browsing history and other information without a warrant during a terrorism or federal intelligence probe.  It would also permanently extend a Patriot Act provision — currently set to expire in 2019 — meant to monitor "lone wolf" extremists.  Senate Republicans said they would likely be able to get enough votes if McConnell schedules a redo.
  • Asked if he anticipates supporters will be able to get 60 votes, Sen. John CornynJohn CornynSenate to vote on two gun bills Senate Dems rip GOP on immigration ruling Post Orlando, hawks make a power play MORE (R-Texas) separately told reporters "that's certainly my expectation." McConnell urged support for the proposal earlier Wednesday, saying it would give the FBI to "connect the dots" in terrorist investigations.  "We can focus on defeating [the Islamic State in Iraq and Syria] or we can focus on partisan politics. Some of our colleagues many think this is all some game," he said. "I believe this is a serious moment that calls for serious solutions."  But Democrats—and some Republicans—raised concerns that the changes didn't go far enough to ensure Americans' privacy.  Sen. Ron WydenRon WydenPost Orlando, hawks make a power play Democrats seize spotlight with sit-in on guns Democrats stage sit-in on House floor to push for gun vote MORE (D-Ore.) blasted his colleagues for "hypocrisy" after a gunman killed 49 people and injured dozens more during the mass shooting in Orlando, Fla. "Due process ought to apply as it relates to guns, but due process wouldn't apply as it relates to the internet activity of millions of Americans," he said ahead of Wednesday's vote. "Supporters of this amendment...have suggested that Americans need to choose between protecting our security and protecting our constitutional right to privacy." 
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  • The American Civil Liberties Union (ACLU) also came out in opposition the Senate GOP proposal on Tuesday, warning it would urge lawmakers to vote against it. 
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    Too close for comfort and coming around the bernd again. 
Paul Merrell

48 States Investigating Whether Google's Dominance Hurts Competition : NPR - 1 views

  • State attorneys general of 48 states, Puerto Rico and the District of Columbia announced a major probe Monday into Google's dominance in search and advertising for practices that harm competition as well as consumers. Texas Attorney General Ken Paxton is leading the bipartisan pack.
  • The investigation includes all the states, except for California and Alabama.
  • Google has the power to put a user on page 1 or 100. European regulators have charged Google with abusing that power and, following years-long investigations, they issued multi-billion-dollar fines. The tech giant, along with Facebook, controls nearly 60% of all digital advertising, according to eMarketer. A wide range of businesses that must publicize their services — be it a hair stylist, a hospital or a Fortune 500 company — must abide by the terms and prices set by two companies. But, as eMarketer notes, the duopoly's control is diminishing as Amazon grows.
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  • Last week Google disclosed that, in addition to state-level government action, the Justice Department has asked the company to hand over documents.
  • Led by New York, attorneys general from eight states and the District of Columbia announced a probe into Facebook as well.
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