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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.

National plaintiffs’ law firm Keller Lenkner LLC and global business litigation firm Quinn Emanuel Urquhart & Sullivan, LLP filed a class-action lawsuit against Facebook, Inc. alleging violations of federal antitrust laws and California law on behalf of Facebook users.ADVERTISEMENTFiled in the U.S. District Court for the Northern District of California, the complaint alleges that Facebook obtained and maintained a social network and social media monopoly by consistently deceiving consumers about the data-privacy protections it provided to users, and by exploiting the data it extracted from users to target smaller startup companies for destruction or acquisition.The lawsuit seeks to put an end to Facebook’s misrepresentations about its privacy practices and its anticompetitive acquisition conduct; to require Facebook to engage in third-party auditing of its conduct; and to require Facebook to divest assets, such as Instagram and WhatsApp, that entrench its market power.

According to the complaint, which was filed on behalf of named plaintiffs Sarah Grabert and Maximilian Klein, Facebook did not achieve its Big Tech monopoly through innovation or vigorous competition. Despite its public pledge to protect user privacy, Facebook lied to users and violated their trust in a scheme to build a technology empire. Facebook also acquired technology from smaller firms that it used to track consumer activity across the internet so that it could identify and target competitors.ADVERTISEMENTThe complaint further alleges that in a strategic, intentional ploy for market domination, Facebook engaged in its scheme to destroy all competition without a care for the ultimate harm it would inflict on consumers. By the time Facebook’s deception about its lackluster privacy protections became public knowledge, Facebook had already achieved dominance, making it difficult for any firm to challenge its social media and social network monopoly.

The complaint notes that Facebook derives enormous economic value from the data it harvests from consumers on its platform. In fact, Facebook itself has described how it generates massive earnings per user from the data it collects. The complaint details how Facebook’s destruction of competition has caused consumers substantial economic injury. Consumers who sign up for Facebook agree to give up their valuable data and attention in exchange for using Facebook’s platform. That information and attention is then sold in measurable units to advertisers in exchange for money. The complaint alleges that consumers were harmed by Facebook’s anticompetitive conduct, as they did not receive the benefit of their bargain with Facebook.The lawsuit includes claims for violations of federal antitrust laws and California common law. It also seeks an order enjoining Facebook from continuing to engage in the alleged wrongful acts, requiring Facebook to engage third-party auditors to evaluate and correct problems with Facebook’s conduct, and requiring Facebook to divest assets like Instagram and WhatsApp. The lawsuit also seeks monetary damages, restitution and/or disgorgement of Facebook’s wrongful gains, attorneys’ fees, and costs.

EFF filed a brief in federal court arguing that a lower court’s ruling jeopardizes the online platforms that make the Internet a robust platform for users’ free speech. The brief, filed in the U.S. Court of Appeals for the Ninth Circuit, argues that 47 U.S.C. § 230, enacted as part of the Communications Decency Act (known simply as “Section 230”) broadly protects online platforms, including review websites, when they aggregate or otherwise edit users’ posts. Generally, Section 230 provides legal immunity for online intermediaries that host or republish speech by protecting them against a range of laws that might otherwise be used to hold them legally responsible for what others say and do. Section 230’s immunity directly led to the development of the platforms everyone uses today, allowing people to upload videos to their favorite platforms such as YouTube, as well as leave reviews on Amazon or Yelp. It also incentivizes the creation of new platforms that can host users’ content, leading to more innovation that enables the robust free speech found online. The lower court’s decision in Consumer Cellular v. ConsumerAffairs.com, however, threatens to undermine the broad protections of Section 230, EFF’s brief argues.

In the case, Consumer Cellular alleged, among other things, that ConsumerAffairs.com should be held liable for aggregating negative reviews about its business into a star rating. It also alleged that ConsumerAffairs.com edited or otherwise deleted certain reviews of Consumer Cellular in bad faith. Courts and the text of Section 230, however, plainly allow platforms to edit or aggregate user-generated content into summaries or star ratings without incurring legal liability, EFF’s brief argues. It goes on: “And any function protected by Section 230 remains so regardless of the publisher’s intent.” By allowing Consumer Cellular’s claims against ConsumerAffairs.com to proceed, the lower court seriously undercut Section 230’s legal immunity for online platforms. If the decision is allowed to stand, EFF’s brief argues, then platforms may take steps to further censor or otherwise restrict user content out of fear of being held liable. That outcome, EFF warns, could seriously diminish the Internet’s ability to serve as a diverse forum for free speech. The Internet it is constructed of and depends upon intermediaries. The many varied online intermediary platforms, including Twitter, Reddit, YouTube, and Instagram, all give a single person, with minimal resources, almost anywhere in the world the ability to communicate with the rest of the world. Without intermediaries, that speaker would need technical skill and money that most people lack to disseminate their message. If our legal system fails to robustly protect intermediaries, it fails to protect free speech online.

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

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

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

Google on Wednesday was hit by a lawsuit from a group of state attorneys over alleged violation of antitrust laws by its Android app store.

Attorneys general for 36 states and the District of Columbia sued the Big Tech company in a 144-page complaint filed in a Northern California federal court. The group alleges that Google’s Play store for Android apps violates antitrust laws.The complaint centers on the control Google is able to exert on its Play store, allowing it to collect commissions of up to 30 percent on digital transactions within apps installed on Android-powered smartphones. Those devices represent more than 80 percent of the worldwide smartphone market.Led by Utah, North Carolina, Tennessee, New York, Arizona, Colorado, Iowa, and Nebraska, it marks the fourth major antitrust lawsuit filed by U.S. government agencies against the company since October 2020.Other lawsuits filed against Google include a complaint filed by a bipartisan coalition of states, and one filed by the Department of Justice. It echoes allegations made against the company by mobile game maker Epic Games in August 2020. That case is awaiting trial.The complaint contends that Google has deployed various tactics and set up anticompetitive barriers to ensure it distributes more than 90 percent of the apps on Android devices—a market share that the attorneys general argue represents an illegal monopoly. It also alleges Google has been abusing that power to reap billions of dollars in profit at the expense of consumers, who wind up paying higher prices to subsidize the commissions, and the makers of apps who have less money and incentive to innovate.

Ohio’s attorney general, Dave Yost, filed a lawsuit on Tuesday in pursuit of a novel effort to have Google declared a public utility and subject to government regulation.The lawsuit, which was filed in a Delaware County, Ohio court, seeks to use a law that’s over a century old to regulate Google by applying a legal designation historically used for railroads, electricity and the telephone to the search engine.“When you own the railroad or the electric company or the cellphone tower, you have to treat everyone the same and give everybody access,” Mr. Yost, a Republican, said in a statement. He added that Ohio was the first state to bring such a lawsuit against Google.If Google were declared a so-called common carrier like a utility company, it would prevent the company from prioritizing its own products, services and websites in search results.AdvertisementContinue reading the main storyGoogle said it had none of the attributes of a common carrier that usually provide a standardized service for a fee using public assets, such as rights of way.The “lawsuit would make Google Search results worse and make it harder for small businesses to connect directly with customers,” José Castañeda, a Google spokesman, said in a statement. “Ohioans simply don’t want the government to run Google like a gas or electric company. This lawsuit has no basis in fact or law and we’ll defend ourselves against it in court.”Though the Ohio lawsuit is a stretch, there is a long history of government control of certain kinds of companies, said Andrew Schwartzman, a senior fellow at the nonprofit Benton Institute for Broadband & Society. “Think of ‘The Canterbury Tales.’ Travelers needed a place to stay and eat on long road treks, and innkeepers were not allowed to deny them accommodations or rip them off,” he said.

After a series of federal lawsuits filed against Google last year, Ohio’s lawsuit is part of a next wave of state actions aimed at regulating and curtailing the power of Big Tech. Also on Tuesday, Colorado’s legislature passed a data privacy law that would allow consumers to opt out of data collection.On Monday, New York’s Senate passed antitrust legislation that would make it easier for plaintiffs to sue dominant platforms for abuse of power. After years of inaction in Congress with tech legislation, states are beginning to fill the regulatory vacuum.Editors’ PicksThe Abandoned Houses of Instagram21 Easy Summer Dinners You’ll Cook (or Throw Together) on Repeat‘King Richard’ Finds Fresh Drama in WatergateAdvertisementContinue reading the main storyAdvertisementContinue reading the main storyOhio was also one of 38 states that filed an antitrust lawsuit in December accusing Google of being a monopoly and using its dominant position in internet search to squeeze out smaller rivals.

Fourteen months after unveiling a $45.2 billion merger that would create a new Internet and cable giant, Comcast Corp. is planning to walk away from its proposed takeover of Time Warner Cable Inc., people with knowledge of the matter said. The decision marks a swift unraveling of a deal that awaited federal approval for more than a year. Opposition from the U.S. Justice Department and Federal Communications Commission took shape over the past week, leaving officials of the two companies to conclude the deal wouldn’t pass muster.

Comcast’s board will meet to finalize the decision on Thursday, and an announcement may come as soon as Friday, said one of the people, who asked not to be identified because the information is private. Time Warner Cable executives plan to tell shareholders on an earnings conference call next Thursday how the company can survive independently, the person said.

On Wednesday, FCC staff joined lawyers at the Justice Department opposing the transaction. That day, FCC officials told representatives of the two companies they are leaning toward concluding the merger doesn’t help consumers, a person with knowledge of the matter said. The FCC’s plan to call a hearing effectively killed the deal’s chances of success. An FCC hearing can take months to complete and drag out the approval process beyond the companies’ time frame for completion. Bloomberg News reported last week that Justice Department staff was leaning against the deal. Senators including Al Franken, a Democrat from Minnesota, also voiced opposition. “Comcast’s withdrawal of its proposed merger with Time Warner Cable would be spectacularly good news for consumers,” Michael Copps, a Democratic former FCC commissioner working with Common Cause to oppose the deal, said in a statement.

(AP) -- Federal regulators are urging consumers to go through their phone bills line by line after they accused T-Mobile US of wrongly charging customers for premium services, like horoscope texts and quirky ringtones, the customers never authorized. The Federal Trade Commission announced Tuesday that it is suing T-Mobile in a federal court in Seattle with the goal of making sure every unfairly charged customer sees a full refund. The lawsuit, the first of its kind against a mobile provider, is the result of months of stalled negotiations with T-Mobile, which says it is already offering refunds. "It's wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent," FTC Chair Edith Ramirez in a statement.

The practice is called "cramming": A third party stuffs a customer's bill with bogus charges such as $10-per-month horoscopes or updates on celebrity gossip. In this case, the FTC said, T-Mobile was working with third-party vendors being investigated by regulators and known to be the subject of numerous customer complaints. T-Mobile then made it difficult for customers to notice the added charge to their bill and pocketed up to 40 percent of the total, according to the FTC.

The FTC told reporters in a conference call Tuesday that it had been in negotiations with T-Mobile for months in an attempt to guarantee refunds would be provided to customers but that the two sides couldn't reach an agreement. T-Mobile appears to have been laying the groundwork to head off the federal complaint. Last November, the company announced that it would no longer allow premium text services because they were waning in popularity and not all vendors had acted responsibly. In June, it announced it would reach out to consumers to provide refunds. But the FTC says that in many cases, the refunds are only partial and T-Mobile often refers customer complaints to the third-party vendors.

On Thursday, the Federal Communications Commission voted 3-2 to open for public debate new rules meant to guarantee an open Internet. Before the plan becomes final, though, the chairman of the commission, Tom Wheeler, will need to convince his colleagues and an array of powerful lobbying groups that the plan follows the principle of net neutrality, the idea that all content running through the Internet’s pipes is treated equally.While the rules are meant to prevent Internet providers from knowingly slowing data, they would allow content providers to pay for a guaranteed fast lane of service. Some opponents of the plan, those considered net neutrality purists, argue that allowing some content to be sent along a fast lane would essentially discriminate against other content.

“We are dedicated to protecting and preserving an open Internet,” Mr. Wheeler said immediately before the commission vote. “What we’re dealing with today is a proposal, not a final rule. We are asking for specific comment on different approaches to accomplish the same goal, an open Internet.”

Mr. Wheeler argued on Thursday that the proposal did not allow a fast lane. But the proposed rules do not address the connection between an Internet service provider, which sells a connection to consumers, and the operators of backbone transport networks that connect various parts of the Internet’s central plumbing.That essentially means that as long as an Internet service provider like Comcast or Verizon does not slow the service that a consumer buys, the provider can give faster service to a company that pays to get its content to consumers unimpeded

Beijing, China - As Apple released the iPad today across Europe and Japan, a key supplier in China continued fortifying factory buildings with anti-suicide nets and bracing against a growing tide of public criticism about working conditions after 10 apparent employee suicides this year — including one this week hours after the company chief visited.   While tentative calls have emerged in China for boycotts of Apple products and other items made by electronics giant Foxconn, what remains entirely unclear is the impact this will have on the electronics manufacturing industry at large. The massive Foxconn plant, possibly the largest factory in the world, has been under the microscope for years over poor working conditions. In the past six months, renewed concerns have hit other electronics suppliers as well.

Now, with an apparent suicide cluster well underway at a key Apple supplier, labor activists have begun to wonder if that tide might be about to turn in the same way it did for international apparel and shoe companies in the 1980s and 1990s. “I think there is a tendency for consumers of iconic products like iPhones to stick their head in the sand when it comes abusive labor practices,” said Geoffrey Crothall of the Hong Kong-based China Labour Bulletin. “Their iPhone reflects who they are, or rather the image of themselves they wish to present to the world, and they don't want that image tarnished.”

The 28 House members who lobbied the Federal Communications Commission to drop net neutrality this week have received more than twice the amount in campaign contributions from the broadband sector than the average for all House members. These lawmakers, including the top House leadership, warned the FCC that regulating broadband like a public utility "harms" providers, would be "fatal to the Internet," and could "limit economic freedom."​ According to research provided Friday by Maplight, the 28 House members received, on average, $26,832 from the "cable & satellite TV production & distribution" sector over a two-year period ending in December. According to the data, that's 2.3 times more than the House average of $11,651. What's more, one of the lawmakers who told the FCC that he had "grave concern" (PDF) about the proposed regulation took more money from that sector than any other member of the House. Rep. Greg Walden (R-OR) was the top sector recipient, netting more than $109,000 over the two-year period, the Maplight data shows.

Dan Newman, cofounder and president of Maplight, the California research group that reveals money in politics, said the figures show that "it's hard to take seriously politicians' claims that they are acting in the public interest when their campaigns are funded by companies seeking huge financial benefits for themselves." Signing a letter to the FCC along with Walden, who chairs the House Committee on Energy and Commerce, were three other key members of the same committee: Reps. Fred Upton (R-MI), Robert Latta (R-OH), and Marsha Blackburn (R-TN). Over the two-year period, Upton took in $65,000, Latta took $51,000, and Blackburn took $32,500. In a letter (PDF) those representatives sent to the FCC two days before Thursday's raucous FCC net neutrality hearing, the four wrote that they had "grave concern" over the FCC's consideration of "reclassifying Internet broadband service as an old-fashioned 'Title II common carrier service.'" The letter added that a switchover "harms broadband providers, the American economy, and ultimately broadband consumers, actually doing so would be fatal to the Internet as we know it."

Not every one of the 28 members who publicly lobbied the FCC against net neutrality in advance of Thursday's FCC public hearing received campaign financing from the industry. One representative took no money: Rep. Nick Rahall (D-WV). In all, the FCC received at least three letters from House lawmakers with 28 signatures urging caution on classifying broadband as a telecommunications service, which would open up the sector to stricter "common carrier" rules, according to letters the members made publicly available. The US has long applied common carrier status to the telephone network, providing justification for universal service obligations that guarantee affordable phone service to all Americans and other rules that promote competition and consumer choice. Some consumer advocates say that common carrier status is needed for the FCC to impose strong network neutrality rules that would force ISPs to treat all traffic equally, not degrading competing services or speeding up Web services in exchange for payment. ISPs have argued that common carrier rules would saddle them with too much regulation and would force them to spend less on network upgrades and be less innovative.

Facebook will pay a record $5bn (£4bn) penalty in the US for “deceiving” users about their ability to keep personal information private, after a year-long investigation into the Cambridge Analytica data breach. The Federal Trade Commission (FTC), the US consumer regulator, also announced a lawsuit against Cambridge Analytica and proposed settlements with the data analysis firm’s former chief executive Alexander Nix and its app developer Aleksandr Kogan. The $5bn fine for Facebook dwarfs the previous record for the largest fine handed down by the FTC for violation of consumers’ privacy, which was a $275m penalty for consumer credit agency Equifax.

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

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