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Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • MEMO/09/15 Brussels, 17th January 2009
  • The European Commission can confirm that it has sent a Statement of Objections (SO) to Microsoft on 15th January 2009. The SO outlines the Commission’s preliminary view that Microsoft’s tying of its web browser Internet Explorer to its dominant client PC operating system Windows infringes the EC Treaty rules on abuse of a dominant position (Article 82).
  • In the SO, the Commission sets out evidence and outlines its preliminary conclusion that Microsoft’s tying of Internet Explorer to the Windows operating system harms competition between web browsers, undermines product innovation and ultimately reduces consumer choice. The SO is based on the legal and economic principles established in the judgment of the Court of First Instance of 17 September 2007 (case T-201/04), in which the Court of First Instance upheld the Commission's decision of March 2004 (see IP/04/382), finding that Microsoft had abused its dominant position in the PC operating system market by tying Windows Media Player to its Windows PC operating system (see MEMO/07/359).
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  • The evidence gathered during the investigation leads the Commission to believe that the tying of Internet Explorer with Windows, which makes Internet Explorer available on 90% of the world's PCs, distorts competition on the merits between competing web browsers insofar as it provides Internet Explorer with an artificial distribution advantage which other web browsers are unable to match. The Commission is concerned that through the tying, Microsoft shields Internet Explorer from head to head competition with other browsers which is detrimental to the pace of product innovation and to the quality of products which consumers ultimately obtain. In addition, the Commission is concerned that the ubiquity of Internet Explorer creates artificial incentives for content providers and software developers to design websites or software primarily for Internet Explorer which ultimately risks undermining competition and innovation in the provision of services to consumers.
  • Microsoft has 8 weeks to reply the SO, and will then have the right to be heard in an Oral Hearing should it wish to do so. If the preliminary views expressed in the SO are confirmed, the Commission may impose a fine on Microsoft, require Microsoft to cease the abuse and impose a remedy that would restore genuine consumer choice and enable competition on the merits.
  • A Statement of Objections is a formal step in Commission antitrust investigations in which the Commission informs the parties concerned in writing of the objections raised against them. The addressee of a Statement of Objections can reply in writing to the Statement of Objections, setting out all facts known to it which are relevant to its defence against the objections raised by the Commission. The party may also request an oral hearing to present its comments on the case. The Commission may then take a decision on whether conduct addressed in the Statement of Objections is compatible or not with the EC Treaty’s antitrust rules. Sending a Statement of Objections does not prejudge the final outcome of the procedure. In the March 2004 Decision the Commission ordered Microsoft to offer to PC manufacturers a version of its Windows client PC operating system without Windows Media Player. Microsoft, however, retained the right to also offer a version with Windows Media Player (see IP/04/382).
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    It's official, hot off the presses (wasn't there a few minutes ago). We're now into a process where DG Competition will revisit its previous order requiring Microsoft to market two versions of Windows, one with Media Player and one without. DG Competition staff were considerably outraged that Microsoft took advantage of a bit of under-specification in the previous order and sold the two versions at the same price. That detail will not be neglected this time around. Moreover, given the ineffectiveness of the previous order in restoring competition among media players, don't be surprised if this results in an outright ban on bundling MSIE with Windows.
Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”
  • Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.
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    "In addition, the Commission opened a second antitrust investigation into Amazon's business practices that might artificially favour its own retail offers and offers of marketplace sellers that use Amazon's logistics and delivery services (the so-called "fulfilment by Amazon or FBA sellers"). In particular, the Commission will investigate whether the criteria that Amazon sets to select the winner of the "Buy Box" and to enable sellers to offer products to Prime users, under Amazon's Prime loyalty programme, lead to preferential treatment of Amazon's retail business or of the sellers that use Amazon's logistics and delivery services. The "Buy Box" is displayed prominently on Amazon's websites and allows customers to add items from a specific retailer directly into their shopping carts. Winning the "Buy Box" (i.e. being chosen as the offer that features in this box) is crucial to marketplace sellers as the Buy Box prominently shows the offer of one single seller for a chosen product on Amazon's marketplaces, and generates the vast majority of all sales. The other aspect of the investigation focusses on the possibility for marketplace sellers to effectively reach Prime users. Reaching these consumers is important to sellers because the number of Prime users is continuously growing and because they tend to generate more sales on Amazon's marketplaces than non-Prime users. If proven, the practice under investigation may breach Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position. The Commission will now carry out its in-depth investigation as a matter of priority"
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    On the filed charges, the violation seems to be fairly clear-cut and straightforward to prove. (DG Competition has really outstanding lawyers.) I suspect the real fight here will be over the remedy.
Gary Edwards

Two Microsofts: Mulling an alternate reality | ZDNet - 1 views

  • Judge Jackson had it right. And the Court of Appeals? Not so much
  • Judge Jackson is an American hero and news of his passing thumped me hard. His ruling against Microsoft and the subsequent overturn of that ruling resulted, IMHO, in two extraordinary directions that changed the world. Sure the what-if game is interesting, but the reality itself is stunning enough. Of course, Judge Jackson sought to break the monopoly. The US Court of Appeals overturn resulted in the monopoly remaining intact, but the Internet remaining free and open. Judge Jackson's breakup plan had a good shot at achieving both a breakup of the monopoly and, a free and open Internet. I admit though that at the time I did not favor the Judge's plan. And i actually did submit a proposal based on Microsoft having to both support the WiNE project, and, provide a complete port to WiNE to any software provider requesting a port. I wanted to break the monopolist's hold on the Windows Productivity Environment and the hundreds of millions of investment dollars and time that had been spent on application development forever trapped on that platform. For me, it was the productivity platform that had to be broken.
  • I assume the good Judge thought that separating the Windows OS from Microsoft Office / Applications would force the OS to open up the secret API's even as the OS continued to evolve. Maybe. But a full disclosure of the API's coupled with the community service "port to WiNE" requirement might have sped up the process. Incredibly, the "Undocumented Windows Secrets" industry continues to thrive, and the legendary Andrew Schulman's number is still at the top of Silicon Valley legal profession speed dials. http://goo.gl/0UGe8 Oh well. The Court of Appeals stopped the breakup, leaving the Windows Productivity Platform intact. Microsoft continues to own the "client" in "Client/Server" computing. Although Microsoft was temporarily stopped from leveraging their desktop monopoly to an iron fisted control and dominance of the Internet, I think what were watching today with the Cloud is Judge Jackson's worst nightmare. And mine too. A great transition is now underway, as businesses and enterprises begin the move from legacy client/server business systems and processes to a newly emerging Cloud Productivity Platform. In this great transition, Microsoft holds an inside straight. They have all the aces because they own the legacy desktop productivity platform, and can control the transition to the Cloud. No doubt this transition is going to happen. And it will severely disrupt and change Microsoft's profit formula. But if the Redmond reprobate can provide a "value added" transition of legacy business systems and processes, and direct these new systems to the Microsoft Cloud, the profits will be immense.
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  • Judge Jackson sought to break the ability of Microsoft to "leverage" their existing monopoly into the Internet and his plan was overturned and replaced by one based on judicial oversight. Microsoft got a slap on the wrist from the Court of Appeals, but were wailed on with lawsuits from the hundreds of parties injured by their rampant criminality. Some put the price of that criminality as high as $14 Billion in settlements. Plus, the shareholders forced Chairman Bill to resign. At the end of the day though, Chairman Bill was right. Keeping the monopoly intact was worth whatever penalty Microsoft was forced to pay. He knew that even the judicial over-site would end one day. Which it did. And now his company is ready to go for it all by leveraging and controlling the great productivity transition. No business wants to be hostage to a cold heart'd monopolist. But there is huge difference between a non-disruptive and cost effective, process-by-process value-added transition to a Cloud Productivity Platform, and, the very disruptive and costly "rip-out-and-replace" transition offered by Google, ZOHO, Box, SalesForce and other Cloud Productivity contenders. Microsoft, and only Microsoft, can offer the value-added transition path. If they get the Cloud even halfway right, they will own business productivity far into the future. Rest in Peace Judge Jackson. Your efforts were heroic and will be remembered as such. ~ge~
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    Comments on the latest SVN article mulling the effects of Judge Thomas Penfield Jackson's anti trust ruling and proposed break up of Microsoft. comment: "Chinese Wall" Ummm, there was a Chinese Wall between Microsoft Os and the MS Applciations layer. At least that's what Chairman Bill promised developers at a 1990 OS/2-Windows Conference I attended. It was a developers luncheon, hosted by Microsoft, with Chairman Bill speaking to about 40 developers with applications designed to run on the then soon to be released Windows 3.0. In his remarks, the Chairman described his vision of commoditizing the personal computer market through an open hardware-reference platform on the one side of the Windows OS, and provisioning an open application developers layer on the other using open and totally transparent API's. Of course the question came up concerning the obvious advantage Microsoft applications would have. Chairman Bill answered the question by describing the Chinese Wall that existed between Microsoft's OS and Apps develop departments. He promised that OS API's would be developed privately and separate from the Apps department, and publicly disclosed to ALL developers at the same time. Oh yeah. There was lots of anti IBM - evil empire stuff too :) Of course we now know this was a line of crap. Microsoft Apps was discovered to have been using undocumented and secret Window API's. http://goo.gl/0UGe8. Microsoft Apps had a distinct advantage over the competition, and eventually the entire Windows Productivity Platform became dependent on the MSOffice core. The company I worked for back then, Pyramid Data, had the first Contact Management application for Windows; PowerLeads. Every Friday night we would release bug fixes and improvements using Wildcat BBS. By Monday morning we would be slammed with calls from users complaining that they had downloaded the Friday night patch, and now some other application would not load or function properly. Eventually we tracked th
Paul Merrell

Facebook's Marketplace Faces Antitrust Probes in EU, U.K. - WSJ - 1 views

  • 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.
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  • New York State Attorney General Letitia James outlined in December a sweeping antitrust suit against Facebook by the Federal Trade Commission and a bipartisan group of 46 state attorneys general, targeting the company’s tactics against competitors. Photo: Saul Loeb/AFP via Getty Images (Video from 12/9/20)
Paul Merrell

Excite News - EU files antitrust charges against Google - 0 views

  • BRUSSELS (AP) — The European Union's competition chief is filing an antitrust complaint alleging Google has been abusing its dominance in Internet searches and is opening a probe into its Android mobile system.EU Competition Commissioner Margrethe Vestager said Wednesday she is "concerned that the company has given an unfair advantage to its own comparison shopping service."Vestager said the separate antitrust probe into Android will investigate whether the Internet giant relies on anti-competitive deals and abuses its dominant position in Europe's mobile market.Vestager said her chief goal was to make sure multinationals "do not artificially deny European consumers as wide a choice as possible or stifle innovation".Google's general counsel Kent Walker wrote late Tuesday that a "statement of objections" to Google's business practices was to be released by Vestager Wednesday.
Gonzalo San Gil, PhD.

Use common goals to overcome a competitive spirit | Opensource.com - 0 views

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    "During the humid summer months of 1954, twenty-two 11 and 12-year-old boys were randomly split into two groups and taken to a 200-acre Boy Scouts of America camp in Robbers Cave State Park, Oklahoma. Over the next few weeks, they would unknowingly be the subjects of one of the most widely known psychological studies of our time. And the ways these groups bonded and interacted with each other draw some interesting parallels to our understanding of workplace culture."
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    "During the humid summer months of 1954, twenty-two 11 and 12-year-old boys were randomly split into two groups and taken to a 200-acre Boy Scouts of America camp in Robbers Cave State Park, Oklahoma. Over the next few weeks, they would unknowingly be the subjects of one of the most widely known psychological studies of our time. And the ways these groups bonded and interacted with each other draw some interesting parallels to our understanding of workplace culture."
Paul Merrell

Google, Facebook made secret deal to divvy up market, Texas alleges - POLITICO - 1 views

  • Google and Facebook, the No. 1 and No. 2 players in online advertising, made a secret illegal pact in 2018 to divide up the market for ads on websites and apps, according to an antitrust suit filed Wednesday against the search giant. The suit — filed by Texas and eight other states — alleges that the companies colluded to fix prices and divvy up the market for mobile advertising between them.
  • The allegation that Google teamed up with Facebook to suppress competition mirrors a major claim in a separate antitrust suit the Justice Department filed against the company in October: that Google teamed up with Apple to help ensure the continued dominance of its search engine. Such allegations provide some of the strongest ammunition yet to advocates who argue that the U.S. major tech companies have gotten too big and are using their power — sometimes in conjunction with each other — to control markets.Many of the details about the Google-Facebook agreement, including its specific language, are redacted from the complaint. But the states say it “fixes prices and allocates markets between Google and Facebook as competing bidders in the auctions for publishers’ web display and in-app advertising inventory.”
  • The complaint alleges that the agreement was prompted by Facebook’s move in 2017 to use “header bidding” — a technology popular with website publishers that helped them increase the money they made from advertising. While Facebook sells ads on its own platform, it also operates a network to let advertisers offer ads on third-party apps and mobile websites.
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  • Google was concerned about the move to header bidding, the complaint alleges, because it posed an “existential threat” to its own advertising exchange and limited the ability of the search giant to use information from its ad-buying and selling tools to its advantage. Those tools let Google cherry pick the highest value advertising spots and ads, according to the complaint.Within months of Facebook’s announcement, Google approached it to open negotiations, the complaint alleged, and the two companies eventually cut a deal: Facebook would cut back on the use of header bidding and use Google’s ad server. In exchange, the complaint alleges that Google gave Facebook advantages in its auctions.
Paul Merrell

EU files antitrust charges against Amazon over use of data | The Seattle Times - 1 views

  • 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.
Gary Edwards

The real reason Google is making Chrome | Computerworld Blogs - 0 views

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    Good analysis by Stephen Vaughan-Nichols. He gets it right. Sort of. Stephen believes that Chrome is desinged to kill MSOffice. Maybe, but i think it's way too late for that. IMHO, Chrome is designed to keep Google and the Open Web in the game. A game that Microsoft is likely to run away with. Microsoft has built an easy to use transiton bridge form MSOffice desktop centric "client/server" computing model to a Web centirc but proprietary RiA-WebStack-Cloud model. In short, there is an on going great transtion of traditional client/server apps to an emerging model we might call client/ WebStack-Cloud-RiA /server computing model. As the world shifts from a Web document model to one driven by Web Applications, there is i believe a complimentary shift towards the advantage Micorsoft holds via the desktop "client/server" monopoly. For Microsoft, this is just a transtion. Painful from a monopolist profitability view point - but unavoidably necessary. The transition is no doubt helped by the OOXML <> XAML "Fixed/flow" Silverlight ready conversion component. MS also has a WebStack-Cloud (Mesh) story that has become an unstoppable juggernaut (Exchange/SharePoint/SQL Server as the WebSTack). WebKit based RiA challengers like Adobe Apollo, Google Chrome, and Apple SproutCore-Cocoa have to figure out how to crack into the great transition. MS has succeeded in protecting their MSOffice monopoly until such time as they had all the transtion pieces in place. They have a decided advantage here. It's also painfully obvious that the while the WebKit guys have incredible innovation on their side, they are still years behind the complete desktop to WebStack-RiA-Cloud to device to legacy servers application story Microsoft is now selling into the marketplace. They also are seriously lacking in developer tools. Still, the future of the Open Web hangs in the balance. Rather than trying to kill MSOffice, i would think a better approach would be that of trying to
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    There are five reasons why Google is doing this, and, if you read the comic book closely - yes, I'm serious - and you know technology you can see the reasons for yourself. These, in turn, lead to what I think is Google's real goal for Chrome.
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    I'm still keeping the door open on a suspicion that Microsoft may have planned to end the life of MS Office after the new fortress on the server side is ready. The code base is simply too brittle to have a competitive future in the feature wars. I can't get past my belief that if Microsoft saw any future in the traditional client-side office suite, it would have been building a new one a decade ago. Too many serious bugs too deeply buried in spaghetti code to fix; it's far easier to rebuild from the ground up. Word dates to 1984, Excel to 1985, Powerpoint to 1987, All were developed for the Mac, ported years later to Windows. At least Word is still running a deeply flawed 16-bit page layout engine. E.g., page breaks across subdocuments have been broken since Word 1.0. Technology designed to replace yet still largely defined by its predecessor, the IBM Correcting Selectric electro-mechanical typewriter. Mid-80s stand-alone, non-networked computer technology in the World Wide Web era? Where's the future in software architecture developed two decades ago, before the Connected World? I suspect Office's end is near. Microsoft's problem is migrating their locked-in customers to the new fortress on the server side. The bridge is OOXML. In other words, Google doesn't have to kill Office; Microsoft will do that itself. Giving the old cash cow a face lift and fresh coat of lipstick? That's the surest sign that the old cow's owner is keeping a close eye on prices in the commodity hamburger market while squeezing out the last few buckets of milk.
Paul Merrell

FCC Chairman Moves Toward Real Net Neutrality Protections | Free Press - 0 views

  • In an appearance at the Consumer Electronics Show in Las Vegas today, FCC Chairman Tom Wheeler indicated that he will move to protect Net Neutrality by reclassifying Internet access under Title II of the Communications Act. The chairman plans to circulate a new rule in early February. The agency is expected to vote on it during its Feb. 26 open meeting. Free Press President and CEO Craig Aaron made the following statement: “Chairman Wheeler appears to have heard the demands of the millions of Internet users who have called for real Net Neutrality protections. The FCC’s past decisions to put its oversight authority on ice resulted in Net Neutrality being under constant threat. Wheeler now realizes that it’s best to simply follow the law Congress wrote and ignore the bogus claims of the biggest phone and cable companies and their well-financed front groups. “Of course the devil will be in the details, and we await publication of the agency's final decision. But it’s refreshing to see the chairman firmly reject the industry’s lies and scare tactics. As we’ve said all along, Title II is a very flexible, deregulatory framework that ensures investment and innovation while also preserving the important public interest principles of nondiscrimination, universal service, interconnection and competition.”
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    Title II is for "common carriers." See http://transition.fcc.gov/Reports/1934new.pdf pg. 35. Under Section 202: "(a) It shall be unlawful for any common carrier to make any unjust or unreasonable discrimination in charges, practices, classifications, regulations, facilities, or services for or in connection with like communication service, directly or indirectly, by any means or device, or to make or give any undue or unreasonable preference or advantage to any particular person, class of persons, or locality, or to subject any particular person, class of persons, or locality to any undue or unreasonable prejudice or disadvantage. (b) Charges or services, whenever referred to in this Act, include charges for, or services in connection with, the use of common carrier lines of communication, whether derived from wire or radio facilities, in chain broadcasting or incidental to radio communication of any kind. (c) Any carrier who knowingly violates the provisions of this section shall forfeit to the United States the sum of $6,000 for each such offense and $300 for each and every day of the continuance of such offense. 
Paul Merrell

Testosterone Pit - Home - The Other Reason Why IBM Throws A Billion At Linux ... - 0 views

  • IBM announced today that it would throw another billion at Linux, the open-source operating system, to run its Power System servers. The first time it had thrown a billion at Linux was in 2001, when Linux was a crazy, untested, even ludicrous proposition for the corporate world. So the moolah back then didn’t go to Linux itself, which was free, but to related technologies across hardware, software, and service, including things like sales and advertising – and into IBM’s partnership with Red Hat which was developing its enterprise operating system, Red Hat Enterprise Linux. “It helped start a flurry of innovation that has never slowed,” said Jim Zemlin, executive director of the Linux Foundation. IBM claims that the investment would “help clients capitalize on big data and cloud computing with modern systems built to handle the new wave of applications coming to the data center in the post-PC era.” Some of the moolah will be plowed into the Power Systems Linux Center in Montpellier, France, which opened today. IBM’s first Power Systems Linux Center opened in Beijing in May. IBM may be trying to make hay of the ongoing revelations that have shown that the NSA and other intelligence organizations in the US and elsewhere have roped in American tech companies of all stripes with huge contracts to perfect a seamless spy network. They even include physical aspects of surveillance, such as license plate scanners and cameras, which are everywhere [read.... Surveillance Society: If You Drive, You Get&nbsp;Tracked].
  • Then another boon for IBM. Experts at the German Federal Office for Security in Information Technology (BIS) determined that Windows 8 is dangerous for data security. It allows Microsoft to control the computer remotely through a “special surveillance chip,” the wonderfully named Trusted Platform Module (TPM), and a backdoor in the software – with keys likely accessible to the NSA and possibly other third parties, such as the Chinese. Risks: “Loss of control over the operating system and the hardware” [read.... LEAKED: German Government Warns Key Entities Not To Use Windows 8 – Links The&nbsp;NSA.
  • It would be an enormous competitive advantage for an IBM salesperson to walk into a government or corporate IT department and sell Big Data servers that don’t run on Windows, but on Linux. With the Windows 8 debacle now in public view, IBM salespeople don’t even have to mention it. In the hope of stemming the pernicious revenue decline their employer has been suffering from, they can politely and professionally hype the security benefits of IBM’s systems and mention in passing the comforting fact that some of it would be developed in the Power Systems Linux Centers in Montpellier and Beijing. Alas, Linux too is tarnished. The backdoors are there, though the code can be inspected, unlike Windows code. And then there is Security-Enhanced Linux (SELinux), which was integrated into the Linux kernel in 2003. It provides a mechanism for supporting “access control” (a backdoor) and “security policies.” Who developed SELinux? Um, the NSA – which helpfully discloses some details on its own website (emphasis mine): The results of several previous research projects in this area have yielded a strong, flexible mandatory access control architecture called Flask. A reference implementation of this architecture was first integrated into a security-enhanced Linux® prototype system in order to demonstrate the value of flexible mandatory access controls and how such controls could be added to an operating system. The architecture has been subsequently mainstreamed into Linux and ported to several other systems, including the Solaris™ operating system, the FreeBSD® operating system, and the Darwin kernel, spawning a wide range of related work.
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  • Among a slew of American companies who contributed to the NSA’s “mainstreaming” efforts: Red Hat. And IBM? Like just about all of our American tech heroes, it looks at the NSA and other agencies in the Intelligence Community as “the Customer” with deep pockets, ever increasing budgets, and a thirst for technology and data. Which brings us back to Windows 8 and TPM. A decade ago, a group was established to develop and promote Trusted Computing that governs how operating systems and the “special surveillance chip” TPM work together. And it too has been cooperating with the NSA. The founding members of this Trusted Computing Group, as it’s called facetiously: AMD, Cisco, Hewlett-Packard, Intel, Microsoft, and Wave Systems. Oh, I almost forgot ... and IBM. And so IBM might not escape, despite its protestations and slick sales presentations, the suspicion by foreign companies and governments alike that its Linux servers too have been compromised – like the cloud products of other American tech companies. And now, they’re going to pay a steep price for their cooperation with the NSA. Read... &nbsp;NSA Pricked The “Cloud” Bubble For US Tech&nbsp;Companies
Paul Merrell

Study: Surveillance will cost US tech sector more than $35B by 2016 | TheHill - 0 views

  • A new study says that the U.S. tech industry is likely to lose more than $35 billion from foreign customers by 2016 because of concerns over government surveillance.“In short, foreign customers are shunning U.S. companies,” the authors of a new study from the Information Technology and Innovation Foundation write.ADVERTISEMENT“The U.S. government’s failure to reform many of the NSA’s surveillance programs has damaged the competitiveness of the U.S. tech sector and cost it a portion of the global market share,” they said.The think tank’s report found that the cost to the tech sector associated with ongoing concerns over surveillance programs run out of the U.S. was likely to “far exceed” $35 billion by 2016, an earlier estimate set by the group.
  • The group said that lawmakers must enact additional reforms to surveillance policy if they wish to help the tech sector regain the trust of foreign customers. That includes opposing “backdoors,” which allow law enforcement to access otherwise encrypted data, and signing off on trade agreements, including the controversial Trans-Pacific Partnership, that “ban digital protectionism.”The study’s authors found that the revelations about broad U.S. surveillance programs acted as a justification for foreign policymakers to enact protectionist policies aimed at aiding their own domestic technology sectors.Foreign companies have also used the information about U.S. surveillance programs to their advantage.“Some European companies have begun to highlight where their digital services are hosted as an alternative to U.S. companies,” the authors write.
  • American companies, they found, have lost contracts to foreign competitors over fears about mass surveillance.Earlier this month, President Obama signed the USA Freedom Act, a bill that reformed the three Patriot Act provisions that authorized the bulk, warrantless collection of Americans’ phone records. The bill was widely supported by technology companies, including giants like Apple and Google.
Paul Merrell

Cloud computing with Amazon Web Services, Part 1: Introduction - 0 views

  • Cloud computing is a paradigm shift in how we architect and deliver scalable applications. In the past, successful companies spent precious time and resources building an infrastructure that in turn provided them a competitive advantage. It was frequently a case of "You build it first and they will come." In most cases, this approach: Left large tracts of unused computing capacity that took up space in big data centers. Required someone to babysit the servers. Had associated energy costs. The unused computing power wasted away, with no way to push it out to other companies or users who might be willing to pay for additional compute cycles. With cloud computing, excess computing capacity can be put to use and be profitably sold to consumers. This transformation of computing and IT infrastructure into a utility, which is available to all, somewhat levels the playing field.
  • According to Amazon’s estimates, businesses spend about 70 percent of their time on building and maintaining their infrastructures while using only 30 percent of their precious time actually working on the ideas that power their businesses.
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