Group items tagged

The United States, the United Kingdom and Australia have called on Facebook Inc to not go ahead with end-to-end encryption across its messaging services unless law enforcement officials have backdoor access, saying encryption hindered the fight against child abuse and terrorism.

The United States and United Kingdom also signed a special data agreement that would fast track requests from law enforcement to technology companies for information about the communications of terrorists and child predators. Law enforcement could get information in weeks or even days instead of the current wait of six months to two years. The latest tug-of-war between governments and tech companies over user data could also impact Apple Inc, Alphabet Inc’s Google and Microsoft Corp, as well as smaller encrypted chat apps like Signal.

Comcast met with Federal Communications Commission Chairman Ajit Pai's staff this week in an attempt to prevent states from issuing net neutrality rules. As the FCC prepares to gut its net neutrality rules, broadband providers are worried that states might enact their own laws to prevent ISPs from blocking, throttling, or discriminating against online content.

Comcast Senior VP Frank Buono and a Comcast attorney met with Pai Chief of Staff Matthew Berry and Senior Counsel Nicholas Degani on Monday, the company said in an ex parte filing that describes the meeting. Comcast urged Pai's staff to reverse the FCC's classification of broadband as a Title II common carrier service, a move that would eliminate the legal authority the FCC uses to enforce net neutrality rules. Pai has said he intends to do just that, so Comcast will likely get its wish on that point. But Comcast also wants the FCC to go further by making a declaration that states cannot impose their own regulations on broadband. The filing said: We also emphasized that the Commission's order in this proceeding should include a clear, affirmative ruling that expressly confirms the primacy of federal law with respect to BIAS [Broadband Internet Access Service] as an interstate information service, and that preempts state and local efforts to regulate BIAS either directly or indirectly.

For years, Comcast has been promising that it won't violate the principles of net neutrality, regardless of whether the government imposes any net neutrality rules. That meant that Comcast wouldn't block or throttle lawful Internet traffic and that it wouldn't create fast lanes in order to collect tolls from Web companies that want priority access over the Comcast network. This was one of the ways in which Comcast argued that the Federal Communications Commission should not reclassify broadband providers as common carriers, a designation that forces ISPs to treat customers fairly in other ways. The Title II common carrier classification that makes net neutrality rules enforceable isn't necessary because ISPs won't violate net neutrality principles anyway, Comcast and other ISPs have claimed. But with Republican Ajit Pai now in charge at the Federal Communications Commission, Comcast's stance has changed. While the company still says it won't block or throttle Internet content, it has dropped its promise about not instituting paid prioritization.

Instead, Comcast now vaguely says that it won't "discriminate against lawful content" or impose "anti-competitive paid prioritization." The change in wording suggests that Comcast may offer paid fast lanes to websites or other online services, such as video streaming providers, after Pai's FCC eliminates the net neutrality rules next month.

A judge has approved a settlement valued at $650 million from Facebook to end a privacy lawsuit, one which alleged the social network used facial recognition technology on user photos stored on its iPhone app without permission. The lawsuit, which started in April 2015, alleged Facebook did not gain consent from users to use its facial tagging features on their photographs. Originally filed by Chicago attorney Jay Edelson on behalf of plaintiff Carlo Licata, the complaint claimed the consent-less tagging was not allowed under privacy laws in Illinois. The case originated in Cook County Circuit Court before moving to Chicago federal court then California, reports the Chicago Tribune. On reaching California, the lawsuit attained class-action status. The class in question constitutes approximately 6.9 million Facebook users in Illinois that Facebook created and stored a face template for after June 7, 2011. Close to 1.6 million claim forms were filed ahead of the November 23 deadline for joining, making up roughly 22% of potential class members. Facebook went against the Illinois Biometric Information Privacy Act, the complaint alleged, which is among the toughest privacy laws in the United States. Part of the act requires companies to gain permission from users before being able to start using biometric systems with their data, which includes facial recognition systems.

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.

On Thursday, the U.S. Court of Appeals for the Ninth Circuit became the first appellate court in the nation to directly address the privacy harms posed by face recognition technology. The decision is a significant advance in the fight against the threats of face surveillance, sounding the alarm on the potential for this technology to seriously violate people’s privacy. In Patel v. Facebook, a group of Facebook users from Illinois allege that Facebook violated the Illinois Biometric Information Privacy Act (BIPA) by using face recognition technology on the users’ photographs without their knowledge and consent. BIPA is the oldest and strongest biometric privacy law in the country, requiring companies to obtain informed consent before collecting a person’s biometric identifiers, including face recognition scans. Importantly, the law provides individuals in Illinois with a right to sue for damages if a company has violated their rights.

That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.

Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.

But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.

The Federal Trade Commission sued to break up Facebook on Wednesday, asking a federal court to force the sell-off of assets such as Instagram and WhatsApp as independent businesses.“Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire,” the commission said in the lawsuit filed in federal court in Washington, D.C.The lawsuit asks the court to order the “divestiture of assets, divestiture or reconstruction of businesses (including, but not limited to, Instagram and/or WhatsApp),” as well as other possible relief the court might want to add.

Attorneys general from 48 states and territories said they were filing their own lawsuit against Facebook, reflecting the broad and bipartisan concern about how much power Facebook and its CEO, Mark Zuckerberg, have accumulated on the internet.

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.

French privacy watchdog, the Commission Nationale de l’Informatique et des Libertés (CNIL), has hit Google with a 150 million euro fine and Facebook with a 60 million euro fine, because their websites—google.fr, youtube.com, and facebook.com—don’t make refusing cookies as easy as accepting them. The CNIL carried out an online investigation after receiving complaints from users about the way cookies were handled on these sites. It found that while the sites offered buttons for allowing immediate acceptance of cookies, the sites didn’t implement an equivalent solution to let users refuse them. Several clicks were required to refuse all cookies, against a single one to accept them. In addition to the fines, the companies have been given three months to provide Internet users in France with a way to refuse cookies that’s as simple as accepting them. If they don’t, the companies will have to pay a penalty of 100,000 euros for each day they delay.

EU data protection regulators’ powers have increased significantly since the General Data Protection Regulation (GDPR) took effect in May 2018. This EU law allows watchdogs to levy penalties of as much as 4% of a company’s annual global sales. The restricted committee, the body in charge of sanctions, considered that the process regarding cookies affects the freedom of consent of Internet users and constitutes an infringement of the French Data Protection Act, which demands that it should be as easy to refuse cookies as to accept them. Since March 31, 2021, when the deadline set for websites and mobile applications to comply with the new rules on cookies expired, the CNIL has adopted nearly 100 corrective measures (orders and sanctions) related to non-compliance with the legislation on cookies.

As a general rule, politicians don’t pick fights with their state’s biggest private employers, but Seattle Congresswoman Pramila Jayapal is doing just that, sponsoring legislation that would break up Amazon.Jayapal’s Ending Platform Monopolies Act is part of a broader, bipartisan effort in Congress to rein in the power of the Big Four tech giants: Amazon, Facebook, Apple and Google.Following up on a 16-month antitrust investigation completed last fall, House lawmakers this month unveiled five antitrust bills aimed at checking the power of the companies by limiting their abilities to gobble up or hamstring competitors.Jayapal’s proposal would allow the federal government to sue to force the Big Four tech firms to sell off lines of business deemed a “conflict of interest.” That would mean Amazon could no longer run its marketplace for third-party sellers while also competing against them with its own products. Similar divestments would be required of the other top tech firms, and all could face massive daily fines for noncompliance.

The focus on today’s ubiquitous big tech giants in some ways echoes past antitrust confrontations in the U.S. In the 1980s, the federal government forced the breakup of the Bell System phone monopoly. In the late 1990s, the U.S. sought to bust up Microsoft over its PC market stranglehold — a battle that ended in a 2002 settlement curbing some of its practices.The Big Four have inspired blowback from across the political spectrum, though not always for the same reasons. All five of the House bills rolled out last week had both Democratic and Republican co-sponsors — producing some unusual alliances.

Amazon will pay almost $62 million to settle allegations by the U.S. Federal Trade Commission that it avoided handing over the full pay and tips it promised to delivery drivers, according to the agency.The company is giving back the amount it kept, according to a complaint released earlier this year by the agency, after it told Amazon Flex drivers and customers in 2015 it would pay $18 to $25 hourly plus tips. Instead, beginning the following year, it used tips to supplement lower base pay rates, and tried to hide the changes, according to the FTC."For a period of over two and a half years, without consumers' permission, Amazon secretly used nearly a third of customer tips to subsidize its own pay to drivers," the FTC had found.Under the 20-year settlement, Amazon will also need consent from drivers to change their pay scheme. All commissioners voted unanimously to approve the settlement.

Twitter executives deceived federal regulators and the company’s own board of directors about “extreme, egregious deficiencies” in its defenses against hackers, as well as its meager efforts to fight spam, according to an explosive whistleblower complaint from its former security chief.The complaint from former head of security Peiter Zatko, a widely admired hacker known as “Mudge,” depicts Twitter as a chaotic and rudderless company beset by infighting, unable to properly protect its 238 million daily users including government agencies, heads of state and other influential public figures.Among the most serious accusations in the complaint, a copy of which was obtained by The Washington Post, is that Twitter violated the terms of an 11-year-old settlement with the Federal Trade Commission by falsely claiming that it had a solid security plan. Zatko’s complaint alleges he had warned colleagues that half the company’s servers were running out-of-date and vulnerable software and that executives withheld dire facts about the number of breaches and lack of protection for user data, instead presenting directors with rosy charts measuring unimportant changes.The complaint — filed last month with the Securities and Exchange Commission and the Department of Justice, as well as the FTC — says thousands of employees still had wide-ranging and poorly tracked internal access to core company software, a situation that for years had led to embarrassing hacks, including the commandeering of accounts held by such high-profile users as Elon Musk and former presidents Barack Obama and Donald Trump.

The Senate Judiciary Committee is set to deliberate on the American Innovation and Choice Online Act, which some experts consider to have the most realistic chance of becoming law out of broad slate of reforms, while creating major change in the industry. The committee schedule also lists a markup of the Open App Markets Act, another bipartisan competition bill.Both bills would prevent certain dominant tech platforms from favoring their own products or services over others that rely on their marketplaces to do business. But the Open App Markets Act’s impact would primarily be limited to those that run app stores, like Apple and Google, while the American Innovation and Choice Online Act would be more expansive, potentially preventing a company like Amazon from giving its own private label products a better ranking in its search than a third-party competitor.Apple and Google could similarly be barred from unfairly ranking their own apps above competitors’ in their mobile app stores, and for Google, the same principle would apply to its general search engine as well

Economic justice advocates applauded on Tuesday as the Federal Trade Commission and 17 states filed a sweeping antitrust lawsuit against Seattle-based Amazon.com for illegally dominating the online retail economy at the expense of consumers.

The 172-page complaint "lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," said FTC Chair Lina Khan in a statement. "The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them." The document—filed in a federal court in Washington state—alleges that Amazon maintains "durable monopoly power" in the online superstore and marketplace services markets, including by stifling price competition and coercing sellers into using its fulfillment service.

An analysis of public comments on the FCC's plan to repeal net neutrality rules found that 2 million of them were filed using stolen identities. That's according to New York Attorney General Eric Schneiderman. "Millions of fake comments have corrupted the FCC public process—including two million that stole the identities of real people, a crime under New York law," Schneiderman said in an announcement today. "Yet the FCC is moving full steam ahead with a vote based on this corrupted process, while refusing to cooperate with an investigation."

Some comments were submitted under the names of dead people. "My LATE husband's name was fraudulently used after a valiant battle with cancer," one person told the AG's office. "This unlawful act adds to my pain that someone would violate his good name." Schneiderman set up a website where people can search the FCC comments for their names to determine if they've been impersonated. So far, "over 5,000 people have filed reports with the Attorney General's office regarding identities used to submit fake comments," the AG's announcement said.

While the 5,000 reports provide anecdotal evidence, the AG's office performed an analysis of the 23 million public comments in order to figure out how many were submitted under falsely assumed identities. Many comments for and against net neutrality rules are identical because advocacy groups urged people to sign form letters, so the text of a comment alone isn't enough to determine if it was submitted by a real person. The AG's office thus examined comment text along with other factors, such as whether names matched lists of stolen identities from known data breaches. Schneiderman's office also told Ars that it looked into whether or not the submission of comments was in alphabetical order, one after another, in short time periods. In general, analysis of formatting and metadata played a role in the analysis. The number of comments believed to be fake has grown as the A.G.'s investigation continues, and it isn't done yet. Schneiderman's office is still analyzing the public comments. We asked Schneiderman's office how many of the fake comments supported net neutrality rules, and how many opposed them, but were told that the information was not available. While fake comments used names and addresses of people from across the nation, more than "100,000 comments per state" came "from New York, Florida, Texas, and California," Schneiderman's announcement said.