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Google opted in the Spring not to disclose that the data of hundreds of thousands of Google+ users had been exposed because the company says they found no evidence of misuse, reports the Wall Street Journal. The Silicon Valley giant feared both regulatory scrutiny and regulatory damage, according to documents reviewed by the Journal and people briefed on the incident.  In response to being busted, Google parent Alphabet is set to announce broad privacy measures which include permanently shutting down all consumer functionality of Google+, a move which "effectively puts the final nail in the coffin of a product that was launched in 2011 to challenge Facebook, and is widely seen as one of Google's biggest failures."  Shares in Alphabet fell as much as 2.1% following the Journal's report: 

The software glitch gave outside developers access to private Google+ profile data between 2015 and March 2018, after Google internal investigators found the problem and fixed it. According to a memo prepared by Google's legal and policy staff and reviewed by the Journal, senior executives worried that disclosing the incident would probably trigger "immediate regulatory interest," while inviting comparisons to Facebook's massive data harvesting scandal. 

A company by the name of LocationSmart isn't having a particularly good month. The company recently received all the wrong kind of attention when it was caught up in a privacy scandal involving the nation's wireless carriers and our biggest prison phone monopoly. Like countless other companies and governments, LocationSmart buys your wireless location data from cell carriers. It then sells access to that data via a portal that can provide real-time access to a user's location via a tailored graphical interface using just the target's phone number.

Theoretically, this functionality is sold under the pretense that the tool can be used to track things like drug offenders who have skipped out of rehab. And ideally, all the companies involved were supposed to ensure that data lookup requests were accompanied by something vaguely resembling official documentation. But a recent deep dive by the New York Times noted how the system was open to routine abuse by law enforcement, after a Missouri Sherrif used the system to routinely spy on Judges and fellow law enforcement officers without much legitimate justification (or pesky warrants): "The service can find the whereabouts of almost any cellphone in the country within seconds. It does this by going through a system typically used by marketers and other companies to get location data from major cellphone carriers, including AT&T, Sprint, T-Mobile and Verizon, documents show. Between 2014 and 2017, the sheriff, Cory Hutcheson, used the service at least 11 times, prosecutors said. His alleged targets included a judge and members of the State Highway Patrol. Mr. Hutcheson, who was dismissed last year in an unrelated matter, has pleaded not guilty in the surveillance cases." It was yet another example of the way nonexistent to lax consumer privacy laws in the States (especially for wireless carriers) routinely come back to bite us. But then things got worse.

Driven by curiousity in the wake of the Times report, a PhD student at Carnegie Mellon University by the name of Robert Xiao discovered that the "try before you buy" system used by LocationSmart to advertise the cell location tracking system contained a bug, A bug so bad that it exposed the data of roughly 200 million wireless subscribers across the United States and Canada (read: nearly everybody). As we see all too often, the researcher highlighted how the security standards in place to safeguard this data were virtually nonexistent: "Due to a very elementary bug in the website, you can just skip that consent part and go straight to the location," said Robert Xiao, a PhD student at the Human-Computer Interaction Institute at Carnegie Mellon University, in a phone call. "The implication of this is that LocationSmart never required consent in the first place," he said. "There seems to be no security oversight here."

Today we are releasing the implementation guide for EFF’s Do Not Track (DNT) policy. For years users have been able to set a Do Not Track signal in their browser, but there has been little guidance for websites as to how to honor that request. EFF’s DNT policy sets out a meaningful response for servers to follow, and this guide provides details about how to apply it in practice. At its core, DNT protects user privacy by excluding the use of unique identifiers for cross-site tracking, and by limiting the retention period of log data to ten days. This short retention period gives sites the time they need for debugging and security purposes, and to generate aggregate statistical data. From this baseline, the policy then allows exceptions when the user's interactions with the site—e.g., to post comments, make a purchase, or click on an ad—necessitates collecting more information. The site is then free to retain any data necessary to complete the transaction. We believe this approach balances users’ privacy expectations with the ability of websites to deliver the functionality users want. Websites often integrate third-party content and rely on third-party services (like content delivery networks or analytics), and this creates the potential for user data to be leaked despite the best intentions of the site operator. The guide identifies potential pitfalls and catalogs providers of compliant services. It is common, for example, to embed media from platforms like You Tube, Sound Cloud, and Twitter, all of which track users whenever their widgets are loaded. Fortunately, Embedly, which offers control over the appearance of embeds, also supports DNT via its API, displaying a poster instead and loading the widget only if the user clicks on it knowingly.

Knowledge makes the difference between willing tracking and non-consensual tracking. Users should be able to choose whether they want to give up their privacy in exchange for using a site or a  particular feature. This means sites need to be transparent about their practices. A great example of this is our biggest adopter, Medium, which does not track DNT users who browse the site and gives clear information about tracking to users when they choose to log in. This is their previous log-in panel, the DNT language is currently being added to their new interface.

Google plans to stop selling ads based on individuals’ browsing across multiple websites, a change that could hasten upheaval in the digital advertising industry. The Alphabet Inc. company said Wednesday that it plans next year to stop using or investing in tracking technologies that uniquely identify web users as they move from site to site across the internet. The decision, coming from the world’s biggest digital advertising company, could help push the industry away from the use of such individualized tracking, which has come under increasing criticism from privacy advocates and faces scrutiny from regulators. Google’s heft means the change could reshape the digital ad business, where many companies rely on tracking individuals to target their ads, measure the ads’ effectiveness and stop fraud. Google accounted for 52% of last year’s global digital ad spending of $292 billion, according to Jounce Media, a digital ad consultancy.

The security research team at Checkmarx has made something of a habit of uncovering alarming vulnerabilities, with past disclosures covering Amazon’s Alexa and Tinder. However, a  discovery of vulnerabilities affecting Google and Samsung smartphones, with the potential to impact hundreds of millions of Android users, is the biggest to date. What did the researchers discover? Oh, only a way for an attacker to take control of smartphone camera apps and remotely take photos, record video, spy on your conversations by recording them as you lift the phone to your ear, identify your location, and more. All of this performed silently, in the background, with the user none the wiser.

House lawmakers who spent the last 16 months investigating the practices of the world’s largest technology companies said on Tuesday that Amazon, Apple, Facebook and Google had exercised and abused their monopoly power and called for the most sweeping changes to antitrust laws in half a century.In a 449-page report that was presented by the House Judiciary Committee’s Democratic leadership, lawmakers said the four companies had turned from “scrappy” start-ups into “the kinds of monopolies we last saw in the era of oil barons and railroad tycoons.” The lawmakers said the companies had abused their dominant positions, setting and often dictating prices and rules for commerce, search, advertising, social networking and publishing.The House ReportRead the full report here »

To amend the inequities, the lawmakers recommended restoring competition by effectively breaking up the companies, emboldening the agencies that police market concentration and throwing up hurdles for the companies to acquire start-ups. They also proposed reforming antitrust laws, in the biggest potential shift since the Hart-Scott-Rodino Act of 1976 created stronger reviews of big mergers.

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.

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.

The European Union slapped Meta with a record $1.3 billion privacy fine Monday and ordered it to stop transferring user data across the Atlantic, the latest salvo in a decadelong case sparked by U.S. cybersnooping fears. The penalty fine of 1.2 billion euros from Ireland’s Data Protection Commission is the biggest since the EU’s strict data privacy regime took effect five years ago, surpassing Amazon’s 746 million euro penalty in 2021 for data protection violations. The Irish watchdog is Meta’s lead privacy regulator in the 27-nation bloc because the Silicon Valley tech giant’s European headquarters is based in Dublin. Meta, which had previously warned that services for its users in Europe could be cut off, vowed to appeal and ask courts to immediately put the decision on hold.

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.