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Security experts call it a “drive-by download”: a hacker infiltrates a high-traffic website and then subverts it to deliver malware to every single visitor. It’s one of the most powerful tools in the black hat arsenal, capable of delivering thousands of fresh victims into a hackers’ clutches within minutes. Now the technique is being adopted by a different kind of a hacker—the kind with a badge. For the last two years, the FBI has been quietly experimenting with drive-by hacks as a solution to one of law enforcement’s knottiest Internet problems: how to identify and prosecute users of criminal websites hiding behind the powerful Tor anonymity system. The approach has borne fruit—over a dozen alleged users of Tor-based child porn sites are now headed for trial as a result. But it’s also engendering controversy, with charges that the Justice Department has glossed over the bulk-hacking technique when describing it to judges, while concealing its use from defendants. Critics also worry about mission creep, the weakening of a technology relied on by human rights workers and activists, and the potential for innocent parties to wind up infected with government malware because they visited the wrong website. “This is such a big leap, there should have been congressional hearings about this,” says ACLU technologist Chris Soghoian, an expert on law enforcement’s use of hacking tools. “If Congress decides this is a technique that’s perfectly appropriate, maybe that’s OK. But let’s have an informed debate about it.”

The FBI’s use of malware is not new. The bureau calls the method an NIT, for “network investigative technique,” and the FBI has been using it since at least 2002 in cases ranging from computer hacking to bomb threats, child porn to extortion. Depending on the deployment, an NIT can be a bulky full-featured backdoor program that gives the government access to your files, location, web history and webcam for a month at a time, or a slim, fleeting wisp of code that sends the FBI your computer’s name and address, and then evaporates. What’s changed is the way the FBI uses its malware capability, deploying it as a driftnet instead of a fishing line. And the shift is a direct response to Tor, the powerful anonymity system endorsed by Edward Snowden and the State Department alike.

European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”

“If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.

According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.

Complex malware known as Regin is the suspected technology behind sophisticated cyberattacks conducted by U.S. and British intelligence agencies on the European Union and a Belgian telecommunications company, according to security industry sources and technical analysis conducted by The Intercept. Regin was found on infected internal computer systems and email servers at Belgacom, a partly state-owned Belgian phone and internet provider, following reports last year that the company was targeted in a top-secret surveillance operation carried out by British spy agency Government Communications Headquarters, industry sources told The Intercept. The malware, which steals data from infected systems and disguises itself as legitimate Microsoft software, has also been identified on the same European Union computer systems that were targeted for surveillance by the National Security Agency.

The hacking operations against Belgacom and the European Union were first revealed last year through documents leaked by NSA whistleblower Edward Snowden. The specific malware used in the attacks has never been disclosed, however.

Frustrated over the number of Internet providers that are available to you? If so, you're like many who are limited to just a handful of broadband companies. But now President Obama wants to change that, arguing that choice and competition are lacking in the U.S. broadband market. On Wednesday, Obama will unveil a series of measures aimed at making high-speed Web connections cheaper and more widely available to millions of Americans. The announcement will focus chiefly on efforts by cities to build their own alternatives to major Internet providers such as Comcast, Verizon or AT&T — a public option for Internet access, you could say. He'll write to the Federal Communications Commission urging the agency to help neutralize laws, erected by states, that effectively protect large established Internet providers against the threat represented by cities that want to build and offer their own, municipal Internet service. He'll direct federal agencies to expand grants and loans for these projects and for smaller, rural Internet providers. And he'll draw attention to a new coalition of mayors from 50 cities who've committed to spurring choice in the broadband industry.

"When more companies compete for your broadband business, it means lower prices," Jeff Zients, director of Obama's National Economic Council, told reporters Tuesday. "Broadband is no longer a luxury. It's a necessity." The announcement highlights a growing chorus of small and mid-sized cities that say they've been left behind by some of the country's biggest Internet providers. In many of these places, incumbent companies have delayed network upgrades or offer what customers say is unsatisfactory service because it isn't cost-effective to build new infrastructure. Many cities, such as Cedar Falls, Iowa, have responded by building their own, publicly operated competitors. Obama will travel to Cedar Falls on Wednesday to roll out his initiative.

Facebook has been ordered by a Belgian court to stop tracking non-Facebook users when they visit the Facebook site. Facebook has been given 48 hours to stop the tracking or face possible fines of up to 250,000 Euro a day.

Facebook has said that it will appeal the ruling, claiming that since their european headquarters are situated in Ireland, they should only be bound by the Irish Data Protection Regulator. Facebook’s chief of security Alex Stamos has posted an explanation about why non-Facebook users are tracked when they visit the site. The tracking issue centres around the creation of a “cookie” called “datr” whenever anyone visits a Facebook page. This cookie contains an identification number that identifies the same browser returning each time to different Facebook pages. Once created, the cookie will last 2 years unless the user explicitly deletes it. The cookie is created for all visitors to Facebook, irrespective of whether they are a Facebook user or even whether they are logged into Facebook at the time. According to Stamos, the measure is needed to: Prevent the creation of fake and spammy accounts Reduce the risk of someone’s account being taken over by someone else Protect people’s content from being stolen Stopping denial of service attacks against Facebook

The principle behind this is that if you can identify requests that arrive at the site for whatever reason, abnormal patterns may unmask people creating fake accounts, hijacking a real account or just issuing so many requests that it overwhelms the site. Stamos’ defence of tracking users is that they have been using it for the past 5 years and nobody had complained until now, that it was common practice and that there was little harm because the data was not collected for any purpose other than security. The dilemma raised by Facebook’s actions is a common one in the conflicting spheres of maintaining privacy and maintaining security. It is obvious that if you can identify all visitors to a site, then it is possible to determine more information about what they are doing than if they were anonymous. The problem with this from a moral perspective is that everyone is being tagged, irrespective of whether their intent was going to be malicious or not. It is essentially compromising the privacy of the vast majority for the sake of a much smaller likelihood of bad behaviour.

Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.

Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.

On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.

Internet censors have a new strategy in their bid to block applications and websites: pressuring the large cloud providers that host them. These providers have concerns that are much broader than the targets of censorship efforts, so they have the choice of either standing up to the censors or capitulating in order to maximize their business. Today’s internet largely reflects the dominance of a handful of companies behind the cloud services, search engines and mobile platforms that underpin the technology landscape. This new centralization radically tips the balance between those who want to censor parts of the internet and those trying to evade censorship. When the profitable answer is for a software giant to acquiesce to censors' demands, how long can internet freedom last? The recent battle between the Russian government and the Telegram messaging app illustrates one way this might play out. Russia has been trying to block Telegram since April, when a Moscow court banned it after the company refused to give Russian authorities access to user messages. Telegram, which is widely used in Russia, works on both iPhone and Android, and there are Windows and Mac desktop versions available. The app offers optional end-to-end encryption, meaning that all messages are encrypted on the sender's phone and decrypted on the receiver's phone; no part of the network can eavesdrop on the messages. Since then, Telegram has been playing cat-and-mouse with the Russian telecom regulator Roskomnadzor by varying the IP address the app uses to communicate. Because Telegram isn't a fixed website, it doesn't need a fixed IP address. Telegram bought tens of thousands of IP addresses and has been quickly rotating through them, staying a step ahead of censors. Cleverly, this tactic is invisible to users. The app never sees the change, or the entire list of IP addresses, and the censor has no clear way to block them all. A week after the court ban, Roskomnadzor countered with an unprecedented move of its own: blocking 19 million IP addresses, many on Amazon Web Services and Google Cloud. The collateral damage was widespread: The action inadvertently broke many other web services that use those platforms, and Roskomnadzor scaled back after it became clear that its action had affected services critical for Russian business. Even so, the censor is still blocking millions of IP addresses.

Gagging orders in the FBI's National Security Letters are all above board and constitutional, a California court has ruled. These security letters are typically sent to internet giants demanding information on whoever is behind a username or email address. Crucially, these requests include clauses that prevent the organizations from warning specific subscribers that they are under surveillance by the Feds. Cloudflare and Credo Mobile aren't happy with that, and – with the help of rights warriors at the EFF – challenged the gagging orders. Despite earlier successes in their legal battle, the 9th US Circuit Court of Appeals ruled [PDF] on Monday that the gagging orders do not trample on First Amendment rights.

The FBI dishes out thousands of National Security Letters (NSLs) every year; they can simply be issued by a special agent in charge in a bureau field office, and don’t require judicial review. They allow the Feds to obtain the name, address, and records of any services used – but not the contents of conversations – plus billing records of a person, and forbid the hosting company from telling the subject, meaning those under investigation can’t challenge the decision. It used to be the case that companies couldn’t even mention the existence of the NSL system for fear of prosecution. However, in 2013 a US district court in San Francisco ruled that such extreme gagging violated the First Amendment. That decision came after Google, and later others, started publishing the number of NSL orders that had been received, in defiance of the law. In 2015 the Obama administration amended the law to allow companies limited rights to disclose NSL orders, and to set a three-year limit for the gagging order. It also set up a framework for companies to challenge the legitimacy of NSL subpoenas, and it was these changes that caused the appeals court verdict in favor of the government.

When you pay for federally funded research, you should be allowed to read it. That’s the idea behind the Fair Access to Science and Technology Research Act (S.1701, H.R.3427), which was recently reintroduced in both houses of Congress. FASTR was first introduced in 2013, and while it has strong support in both parties, it has never gained enough momentum to pass. We need to change that. Let’s tell Congress that passing an open access law should be a top priority.

Tell Congress: It’s time to move FASTR The proposal is pretty simple: Under FASTR, every federal agency that spends more than $100 million on grants for research would be required to adopt an open access policy. The bill gives each agency flexibility to implement an open access policy suited to the work it funds, so long as research is available to the public after an “embargo period” of a year or less. One of the major points of contention around FASTR is how long that embargo period should be. Last year, the Senate Homeland Security and Governmental Affairs Committee approved FASTR unanimously, but only after extending that embargo period from six months to 12, putting FASTR in line with the 2013 White House open access memo. That’s the version that was recently reintroduced in the Senate.  The House bill, by contrast, sets the embargo period at six months. EFF supports a shorter period. Part of what’s important about open access is that it democratizes knowledge: when research is available to the public, you don’t need expensive journal subscriptions or paid access to academic databases in order to read it. A citizen scientist can use and build on the same body of knowledge as someone with institutional connections. But in the fast-moving world of scientific research, 12 months is an eternity. A shorter embargo is far from a radical proposition, especially in 2017. The landscape for academic publishing is very different from what it was when FASTR was first introduced, thanks in larger part to nongovernmental funders who already enforce open access mandates. Major foundations like Ford, Gates, and Hewlett have adopted strong open access policies requiring that research be not only available to the public, but also licensed to allow republishing and reuse by anyone.

Just last year, the Gates Foundation made headlines when it dropped the embargo period from its policy entirely, requiring that research be published openly immediately. After a brief standoff, major publishers began to accommodate Gates’ requirements. As a result, we finally have public confirmation of what we’ve always known: open access mandates don’t put publishers out of business; they push them to modernize their business models. Imagine how a strong open access mandate for government-funded research—with a requirement that that research be licensed openly—could transform publishing. FASTR may not be that law, but it’s a huge step in the right direction, and it’s the best option on the table today. Let’s urge Congress to pass a version of FASTR with an embargo period of six months or less, and then use it as a foundation for stronger open access in the future.

HERE WAS A SIMPLE AIM at the heart of the top-secret program: Record the website browsing habits of “every visible user on the Internet.” Before long, billions of digital records about ordinary people’s online activities were being stored every day. Among them were details cataloging visits to porn, social media and news websites, search engines, chat forums, and blogs. The mass surveillance operation — code-named KARMA POLICE — was launched by British spies about seven years ago without any public debate or scrutiny. It was just one part of a giant global Internet spying apparatus built by the United Kingdom’s electronic eavesdropping agency, Government Communications Headquarters, or GCHQ. The revelations about the scope of the British agency’s surveillance are contained in documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden. Previous reports based on the leaked files have exposed how GCHQ taps into Internet cables to monitor communications on a vast scale, but many details about what happens to the data after it has been vacuumed up have remained unclear.

Amid a renewed push from the U.K. government for more surveillance powers, more than two dozen documents being disclosed today by The Intercept reveal for the first time several major strands of GCHQ’s existing electronic eavesdropping capabilities.

The surveillance is underpinned by an opaque legal regime that has authorized GCHQ to sift through huge archives of metadata about the private phone calls, emails and Internet browsing logs of Brits, Americans, and any other citizens — all without a court order or judicial warrant

A contractor working for the National Security Agency (NSA) was arrested by the FBI following his alleged theft of “state secrets.” More specifically, the contractor, Harold Thomas Martin, is charged with stealing highly classified source codes developed to covertly hack the networks of foreign governments, according to several senior law enforcement and intelligence officials. The Justice Department has said that these stolen materials were “critical to national security.” Martin was employed by Booz Allen Hamilton, the company responsible for most of the NSA’s most sensitive cyber-operations. Edward Snowden, the most well-known NSA whistleblower, also worked for Booz Allen Hamilton until he fled to Hong Kong in 2013 where he revealed a trove of documents exposing the massive scope of the NSA dragnet surveillance. That surveillance system was shown to have targeted untold numbers of innocent Americans. According to the New York Times, the theft “raises the embarrassing prospect” that an NSA insider managed to steal highly damaging secret information from the NSA for the second time in three years, not to mention the “Shadow Broker” hack this past August, which made classified NSA hacking tools available to the public.

Snowden himself took to Twitter to comment on the arrest. In a tweet, he said the news of Martin’s arrest “is huge” and asked, “Did the FBI secretly arrest the person behind the reports [that the] NSA sat on huge flaws in US products?” It is currently unknown if Martin was connected to those reports as well.

It also remains to be seen what Martin’s motivations were in removing classified data from the NSA. Though many suspect that he planned to follow in Snowden’s footsteps, the government will more likely argue that he had planned to commit espionage by selling state secrets to “adversaries.” According to the New York Times article on the arrest, Russia, China, Iran, and North Korea are named as examples of the “adversaries” who would have been targeted by the NSA codes that Martin is accused of stealing. However, Snowden revealed widespread US spying on foreign governments including several US allies such as France and Germany. This suggests that the stolen “source codes” were likely utilized on a much broader scale.

1. Executive Summary Ahmed Mansoor is an internationally recognized human rights defender, based in the United Arab Emirates (UAE), and recipient of the Martin Ennals Award (sometimes referred to as a “Nobel Prize for human rights”).  On August 10 and 11, 2016, Mansoor received SMS text messages on his iPhone promising “new secrets” about detainees tortured in UAE jails if he clicked on an included link. Instead of clicking, Mansoor sent the messages to Citizen Lab researchers.  We recognized the links as belonging to an exploit infrastructure connected to NSO Group, an Israel-based “cyber war” company that sells Pegasus, a government-exclusive “lawful intercept” spyware product.  NSO Group is reportedly owned by an American venture capital firm, Francisco Partners Management. The ensuing investigation, a collaboration between researchers from Citizen Lab and from Lookout Security, determined that the links led to a chain of zero-day exploits (“zero-days”) that would have remotely jailbroken Mansoor’s stock iPhone 6 and installed sophisticated spyware.  We are calling this exploit chain Trident.  Once infected, Mansoor’s phone would have become a digital spy in his pocket, capable of employing his iPhone’s camera and microphone to snoop on activity in the vicinity of the device, recording his WhatsApp and Viber calls, logging messages sent in mobile chat apps, and tracking his movements.   We are not aware of any previous instance of an iPhone remote jailbreak used in the wild as part of a targeted attack campaign, making this a rare find.

The Trident Exploit Chain: CVE-2016-4657: Visiting a maliciously crafted website may lead to arbitrary code execution CVE-2016-4655: An application may be able to disclose kernel memory CVE-2016-4656: An application may be able to execute arbitrary code with kernel privileges Once we confirmed the presence of what appeared to be iOS zero-days, Citizen Lab and Lookout quickly initiated a responsible disclosure process by notifying Apple and sharing our findings. Apple responded promptly, and notified us that they would be addressing the vulnerabilities. We are releasing this report to coincide with the availability of the iOS 9.3.5 patch, which blocks the Trident exploit chain by closing the vulnerabilities that NSO Group appears to have exploited and sold to remotely compromise iPhones. Recent Citizen Lab research has shown that many state-sponsored spyware campaigns against civil society groups and human rights defenders use “just enough” technical sophistication, coupled with carefully planned deception. This case demonstrates that not all threats follow this pattern.  The iPhone has a well-deserved reputation for security.  As the iPhone platform is tightly controlled by Apple, technically sophisticated exploits are often required to enable the remote installation and operation of iPhone monitoring tools. These exploits are rare and expensive. Firms that specialize in acquiring zero-days often pay handsomely for iPhone exploits.  One such firm, Zerodium, acquired an exploit chain similar to the Trident for one million dollars in November 2015. The high cost of iPhone zero-days, the apparent use of NSO Group’s government-exclusive Pegasus product, and prior known targeting of Mansoor by the UAE government provide indicators that point to the UAE government as the likely operator behind the targeting. Remarkably, this case marks the third commercial “lawful intercept” spyware suite employed in attempts to compromise Mansoor.  In 2011, he was targeted with FinFisher’s FinSpy spyware, and in 2012 he was targeted with Hacking Team’s Remote Control System.  Both Hacking Team and FinFisher have been the object of several years of revelations highlighting the misuse of spyware to compromise civil society groups, journalists, and human rights workers.

What they are doing could be seen as the online world’s equivalent of punk rock: a scattered revolt against an industry that many now think has grown greedy, intrusive and arrogant – as well as governments whose surveillance programmes have fuelled the same anxieties. As concerns grow about an online realm dominated by a few huge corporations, everyone involved shares one common goal: a comprehensively decentralised internet.

In the last few months, they have started working with people in the Belgian city of Ghent – or, in Flemish, Gent – where the authorities own their own internet domain, complete with .gent web addresses. Using the blueprint of Heartbeat, they want to create a new kind of internet they call the indienet – in which people control their data, are not tracked and each own an equal space online. This would be a radical alternative to what we have now: giant “supernodes” that have made a few men in northern California unimaginable amounts of money thanks to the ocean of lucrative personal information billions of people hand over in exchange for their services.

His alternative is what he calls the Safe network: the acronym stands for “Safe Access for Everyone”. In this model, rather than being stored on distant servers, people’s data – files, documents, social-media interactions – will be broken into fragments, encrypted and scattered around other people’s computers and smartphones, meaning that hacking and data theft will become impossible. Thanks to a system of self-authentication in which a Safe user’s encrypted information would only be put back together and unlocked on their own devices, there will be no centrally held passwords. No one will leave data trails, so there will be nothing for big online companies to harvest. The financial lubricant, Irvine says, will be a cryptocurrency called Safecoin: users will pay to store data on the network, and also be rewarded for storing other people’s (encrypted) information on their devices. Software developers, meanwhile, will be rewarded with Safecoin according to the popularity of their apps. There is a community of around 7,000 interested people already working on services that will work on the Safe network, including alternatives to platforms such as Facebook and YouTube.

The opening panel of the Stigler Center’s annual antitrust conference discussed the source of digital platforms’ power and what, if anything, can be done to address the numerous challenges their ability to shape opinions and outcomes present. 

Google CEO Sundar Pichai caused a worldwide sensation earlier this week when he unveiled Duplex, an AI-driven digital assistant able to mimic human speech patterns (complete with vocal tics) to such a convincing degree that it managed to have real conversations with ordinary people without them realizing they were actually talking to a robot.   While Google presented Duplex as an exciting technological breakthrough, others saw something else: a system able to deceive people into believing they were talking to a human being, an ethical red flag (and a surefire way to get to robocall hell). Following the backlash, Google announced on Thursday that the new service will be designed “with disclosure built-in.” Nevertheless, the episode created the impression that ethical concerns were an “after-the-fact consideration” for Google, despite the fierce public scrutiny it and other tech giants faced over the past two months. “Silicon Valley is ethically lost, rudderless and has not learned a thing,” tweeted Zeynep Tufekci, a professor at the University of North Carolina at Chapel Hill and a prominent critic of tech firms.   The controversial demonstration was not the only sign that the global outrage has yet to inspire the profound rethinking critics hoped it would bring to Silicon Valley firms. In Pichai’s speech at Google’s annual I/O developer conference, the ethical concerns regarding the company’s data mining, business model, and political influence were briefly addressed with a general, laconic statement: “The path ahead needs to be navigated carefully and deliberately and we feel a deep sense of responsibility to get this right.”

Google’s fellow FAANGs also seem eager to put the “techlash” of the past two years behind them. Facebook, its shares now fully recovered from the Cambridge Analytica scandal, is already charging full-steam ahead into new areas like dating and blockchain.   But the techlash likely isn’t going away soon. The rise of digital platforms has had profound political, economic, and social effects, many of which are only now becoming apparent, and their sheer size and power makes it virtually impossible to exist on the Internet without using their services. As Stratechery’s Ben Thompson noted in the opening panel of the Stigler Center’s annual antitrust conference last month, Google and Facebook—already dominating search and social media and enjoying a duopoly in digital advertising—own many of the world’s top mobile apps. Amazon has more than 100 million Prime members, for whom it is usually the first and last stop for shopping online.   Many of the mechanisms that allowed for this growth are opaque and rooted in manipulation. What are those mechanisms, and how should policymakers and antitrust enforcers address them? These questions, and others, were the focus of the Stigler Center panel, which was moderated by the Economist’s New York bureau chief, Patrick Foulis.

Military planners should not anticipate that the United States will ever dominate cyberspace, the Joint Chiefs of Staff said in a new doctrinal publication. The kind of supremacy that might be achievable in other domains is not a realistic option in cyber operations. “Permanent global cyberspace superiority is not possible due to the complexity of cyberspace,” the DoD publication said. In fact, “Even local superiority may be impractical due to the way IT [information technology] is implemented; the fact US and other national governments do not directly control large, privately owned portions of cyberspace; the broad array of state and non-state actors; the low cost of entry; and the rapid and unpredictable proliferation of technology.” Nevertheless, the military has to make do under all circumstances. “Commanders should be prepared to conduct operations under degraded conditions in cyberspace.” This sober assessment appeared in a new edition of Joint Publication 3-12, Cyberspace Operations, dated June 8, 2018. (The 100-page document updates and replaces a 70-page version from 2013.) The updated DoD doctrine presents a cyber concept of operations, describes the organization of cyber forces, outlines areas of responsibility, and defines limits on military action in cyberspace, including legal limits.

The new cyber doctrine reiterates the importance and the difficulty of properly attributing cyber attacks against the US to their source. “The ability to hide the sponsor and/or the threat behind a particular malicious effect in cyberspace makes it difficult to determine how, when, and where to respond,” the document said. “The design of the Internet lends itself to anonymity and, combined with applications intended to hide the identity of users, attribution will continue to be a challenge for the foreseeable future.”

While there is considerable telecom hubris regarding the 5G rollout and increasing speculation that the next generation of wireless is not yet ready for Prime Time, the industry continues to make promises to Rural America that it has no intention of fulfilling. Decades-long promises to deliver digital Utopia to rural America by T-Mobile, Verizon and AT&T have never materialized.  

In 2017, the USDA reported that 29% of American farms had no internet access. The FCC says that 14 million rural Americans and 1.2 million Americans living on tribal lands do not have 4G LTE on their phones, and that 30 million rural residents do not have broadband service compared to 2% of urban residents.  It’s beginning to sound like a Third World country. Despite an FCC $4.5 billion annual subsidy to carriers to provide broadband service in rural areas, the FCC reports that ‘over 24 million Americans do not have access to high-speed internet service, the bulk of them in rural area”while a  Microsoft Study found that  “162 million people across the US do not have internet service at broadband speeds.” At the same time, only three cable companies have access to 70% of the market in a sweetheart deal to hike rates as they avoid competition and the FCC looks the other way.  The FCC believes that it would cost $40 billion to bring broadband access to 98% of the country with expansion in rural America even more expensive.  While the FCC has pledged a $2 billion, ten year plan to identify rural wireless locations, only 4 million rural American businesses and homes will be targeted, a mere drop in the bucket. Which brings us to rural mapping: Since the advent of the digital age, there have been no accurate maps identifying where broadband service is available in rural America and where it is not available.  The FCC has a long history of promulgating unreliable and unverified carrier-provided numbers as the Commission has repeatedly ‘bungled efforts to produce accurate broadband maps” that would have facilitated rural coverage. During the Senate Commerce Committee hearing on April 10th regarding broadband mapping, critical testimony questioned whether the FCC and/or the telecom industry have either the commitment or the proficiency to provide 5G to rural America.  Members of the Committee shared concerns that 5G might put rural America further behind the curve so as to never catch up with the rest of the country

The escalating trade war is starting to damage Apple's brand in China, according to a new survey of Chinese consumer trends.  The brand consultancy Prophet surveyed 13,500 Chinese consumers and discovered that a wave of nationalism is sweeping across the country, deterring many from using US brands.  Apple plunged in the company's latest brand-relevance index, published Wednesday, which asked respondents which brands they liked the most. Apple crashed to No.24 in the index, falling from No. 11 last year. Before the trade war began, Apple was No. 5. Rivals like Huawei soared in the index to the No. 2 spot, just behind Chinese payment service Alipay.

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.

Federal safety regulators filed a lawsuit against Amazon on Wednesday that accuses the retail giant of refusing to recognize regulators’ authority to force the company to recall defective and unsafe products, setting up a fight over how much responsibility Amazon should take for the products it sells on its website.Support our journalism. Subscribe today.arrow-rightThe action by the Consumer Product Safety Commission comes after months of behind-the-scenes negotiations between regulators and Amazon as the agency tried to persuade the company to follow the CPSC’s rules for getting dangerous products off the market, according to a senior agency official who spoke on the condition of anonymity to comment on internal discussions.The official said Amazon officials refused to acknowledge that the CPSC has the authority to compel the company to remove unsafe products.A lawsuit was viewed as a last resort, the official added.