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As it continues to explore new business models that may work in a world focused on privacy rather than broadly sharing data online, Facebook on Tuesday revealed plans for its own global digital currency, Libra, which aims to allow users to make purchases or send money with close to zero transaction fees. Facebook said it hopes Libra will make it easier for the estimated 1.7 billion unbanked adults worldwide to access banking services and transfer money electronically. “Just as people can use their phones to message friends anywhere in the world today, with Libra, the same can be done with money — instantly, securely and at a low cost,” Facebook said in a Libra white paper.

Users will be able to make transactions with Libra by 2020, Facebook says, both through a standalone app called Calibra as well as with Facebook’s own family of apps. Unlike bitcoin and some similar offerings, the price of Libra is tied to low-risk assets, which should prevent the speculative behavior and wild price swings plaguing other digital currencies. The currency will be overseen by the Libra Association, a Switzerland-based collective of more than a dozen companies, including Visa, Uber and Mastercard, each of whom have invested at least $10 million in the technology. Users of Libra will pay $1 to use Libra which will sit in a bank account and earn interest which will pay the Libra Association.

The Trump administration is considering the possibility of banning end-to-end encryption, as used by services like Apple’s Messages and FaceTime, as well as competing platforms like WhatsApp and Signal. The topic was reportedly the main topic of a previously-unreported meeting of a National Security Council meeting on Wednesday … NordVPN Politico cites three sources for the story. Senior Trump administration officials met on Wednesday to discuss whether to seek legislation prohibiting tech companies from using forms of encryption that law enforcement can’t break — a provocative step that would reopen a long-running feud between federal authorities and Silicon Valley. The encryption challenge, which the government calls “going dark,” was the focus of a National Security Council meeting Wednesday morning that included the No. 2 officials from several key agencies, according to three people familiar with the matter. The meeting reportedly discussed two options. Senior officials debated whether to ask Congress to effectively outlaw end-to-end encryption, which scrambles data so that only its sender and recipient can read it […] “The two paths were to either put out a statement or a general position on encryption, and [say] that they would continue to work on a solution, or to ask Congress for legislation,” said one of the people. No decision was reached given strongly opposing views within the government.

The escalating US-China trade conflict has raised concerns about the measures each side could use in their fight, including Beijing’s option to restrict exports of rare earth metals. The economic measure is dubbed as one of Beijing’s nuclear options in its battle with Washington due to the fact that China is the top producer of rare earth metals and holds the largest reserves.

The United States relies on China, the leading global supplier, for about 80 percent of its rare earths.

China controls around 85-95 percent of all the rare earths’ production and supply. Last year, the country produced about 78 percent of the global volume of rare earths.

State attorneys general of 48 states, Puerto Rico and the District of Columbia announced a major probe Monday into Google's dominance in search and advertising for practices that harm competition as well as consumers. Texas Attorney General Ken Paxton is leading the bipartisan pack.

The investigation includes all the states, except for California and Alabama.

Google has the power to put a user on page 1 or 100. European regulators have charged Google with abusing that power and, following years-long investigations, they issued multi-billion-dollar fines. The tech giant, along with Facebook, controls nearly 60% of all digital advertising, according to eMarketer. A wide range of businesses that must publicize their services — be it a hair stylist, a hospital or a Fortune 500 company — must abide by the terms and prices set by two companies. But, as eMarketer notes, the duopoly's control is diminishing as Amazon grows.

n a blog post on Tuesday, YouTube said it had removed more than 100,000 videos and over 17,000 channels for violating its hate speech rules in April through June, which is five times more than it removed in the previous three months. It also took down over 500 million comments over hate speech. YouTube attributed the increase to its recent efforts to counter the proliferation of hate content. In June, the company updated its hate speech policy to include a ban on supremacist content and the removal of videos that deny well-documented atrocities, such as the Holocaust, and the 2012 shooting rampage at Sandy Hook elementary school.

On Feb. 19, the European Commission released a White Paper on Artificial Intelligence outlining its wide-ranging plan to develop artificial intelligence (AI) in Europe. The commission also released a companion European data strategy, aiming to make more data sets available for business and government to promote AI development, along with a report on the safety of AI systems proposing some reforms of the commission’s product liability regime. Initial press reports about the white paper focused on how the commission had stepped back from a proposal in its initial draft for a three- to five-year moratorium on facial recognition technology. But the proposed framework is much more than that: It represents a sensible and thoughtful basis to guide the EU’s consideration of legislation to help direct the development of AI applications, and an important contribution to similar debates going on around the world. The key takeaways are that the EU plans to: Pursue a uniform approach to AI across the EU in order to avoid divergent member state requirements forming barriers to its single market. Take a risk-based, sector-specific approach to regulating AI. Identify in advance high-risk sectors and applications—including facial recognition software. Impose new regulatory requirements and prior assessments to ensure that high-risk AI systems conform to requirements for safety, fairness and data protection before they are released onto the market. Use access to the huge European market as a lever to spread the EU’s approach to AI regulation across the globe.

Wedbush analyst Daniel Ives called the decline of iPhone sales in China a "doomsday type" like decline. Ives said the fall was an "unprecedented" drop and was "not surprising given the essential lockdown that most of China saw" in February. Wedbush expects Chinese demand to come back online in the second half of the year. * * * We've explained that economic paralysis in China started in early February and continues to this day. Alternative data first showed us the incoming economic crash developing in early February, only to be confirmed weeks later. Twin shocks plague the Chinese economy, which is a supply shock with manufacturers operating at less than full capacity, along with a demand shock, where consumers have been confined to their homes in forced quarantine, unable to spend.  So, on Monday morning, when new data from the China Academy of Information and Communications Technology (CAICT) reveals Apple smartphone sales in China were halved in February, this really shouldn't surprise ZeroHedge readers, considering they've been well informed about what would happen next. 

And it wasn't just Apple with plunging activity, all mobile phone brands operating in China saw shipments halved over the month.  CAICT said 6.34 million devices were shipped last month, down 54.7% from 14 million in the same month the previous year. This was the lowest level of February shipments since 2012, when the CAICT data first became available.  Android brands, including Huawei and Xiaomi, accounted for most of the drop, collectively saw shipments at 5.85 million units for the month, compared to 12.72 million units last year. Apple shipped 494,000 last month, down from 1.27 million in February 2019.

The UK government is secretly planning to force technology companies to build backdoors into their products, to enable intelligence agencies to read people’s private messages. A draft document leaked by the Open Rights Group details extreme new surveillance proposals, which would enable government agencies to spy on one in 10,000 citizens – around 6,500 people – at any one time.  The document, which follows the controversial Investigatory Powers Act, reveals government plans to force mobile operators and internet service providers to provide real-time communications of customers to the government “in an intelligible form”, and within one working day.

This would effectively ban encryption, an important security measure used by a wide range of companies, including WhatsApp and major banks, to keep people’s private data private and to protect them from hackers and cyber criminals. 

WikiLeaks has published what it says is another batch of secret hacking manuals belonging to the US Central Intelligence Agency as part of its Vault7 series of leaks. The site is billing Vault7 as the largest publication of intelligence documents ever. Friday's installment includes 27 documents related to "Grasshopper," the codename for a set of software tools used to build customized malware for Windows-based computers. The Grasshopper framework provides building blocks that can be combined in unique ways to suit the requirements of a given surveillance or intelligence operation. The documents are likely to be of interest to potential CIA targets looking for signatures and other signs indicating their Windows systems were hacked. The leak will also prove useful to competing malware developers who want to learn new techniques and best practices. "Grasshopper is a software tool used to build custom installers for target computers running Microsoft Windows operating system," one user guide explained. "An operator uses the Grasshopper builder to construct a custom installation executable."

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.

The White House on Wednesday made public for the first time the rules by which the government decides to disclose or keep secret software flaws that can be turned into cyberweapons — whether by U.S. agencies hacking for foreign intelligence, money-hungry criminals or foreign spies seeking to penetrate American computers. The move to publish an un­classified charter responds to years of criticism that the process was unnecessarily opaque, fueling suspicion that it cloaked a stockpile of software flaws that the National Security Agency was hoarding to go after foreign targets but that put Americans’ cyber­security at risk.

The rules are part of the “Vulnerabilities Equities Process,” which the Obama administration revamped in 2014 as a multi­agency forum to debate whether and when to inform companies such as Microsoft and Juniper that the government has discovered or bought a software flaw that, if weaponized, could affect the security of their product. The Trump administration has mostly not altered the rules under which the government reaches a decision but is disclosing its process. Under the VEP, an “equities review board” of at least a dozen national security and civilian agencies will meet monthly — or more often, if a need arises — to discuss newly discovered vulnerabilities. Besides the NSA, the CIA and the FBI, the list includes the Treasury, Commerce and State departments, and the Office of Management and Budget. The priority is on disclosure, the policy states, to protect core Internet systems, the U.S. economy and critical infrastructure, unless there is “a demonstrable, overriding interest” in using the flaw for intelligence or law enforcement purposes. The government has long said that it discloses the vast majority — more than 90 percent — of the vulnerabilities it discovers or buys in products from defense contractors or other sellers. In recent years, that has amounted to more than 100 a year, according to people familiar with the process. But because the process was classified, the National Security Council, which runs the discussion, was never able to reveal any numbers. Now, Joyce said, the number of flaws disclosed and the number retained will be made public in an annual report. A classified version will be sent to Congress, he said.

The Israeli Deputy Foreign Minister, Member of Knesset Tzipi Hotovely, held meetings this week with representatives of YouTube and Google, to find ways of cooperating to censor Palestinian videos from occupied Palestine, videos she dubbed as “inciting violence and terrorism.”Israeli daily Maariv said Hotovely will be working with Google and YouTube officials in a joint mechanism that will be in charge of “monitoring and preventing” any publication of materials deemed by Tel Aviv to be “inflammatory.” Hotovely announced in a Hebrew-only press release that she met with YouTube CEO Susan Wojcicki, and Google’s Director of Public Policy, Jennifer Oztzistzki, at Google’s Silicon Valley Offices. Hotovely said that she received a comprehensive review mechanism for companies to monitor the films that allegedly incite violence, claiming that the supposed ‘incitement videos’ drive young children to go out and stab: ‘The attacks daily in Israel are the result of youths and children incited by the education system and the social networks, this is a daily war of incitement.’ She said that Google agreed to strengthen the bilateral relations with Israel’s Foreign Ministry, and build a mechanism of “collaborative work” that would make both parties partners in monitoring the published materials and censoring them. The Israeli move comes amidst escalating tension in occupied Palestine, and a large number of videos, including those showing Israeli soldiers and officers killing Palestinians execution-style after injuring them, and many videos that in general highlight the suffering of the Palestinian people, living under the illegal Israeli occupation of Palestine. The Israeli coordination with Google and YouTube has very serious implications, and many journalists have spoken out in opposition, saying it is a direct assault on the Freedom of the Press.

All foreign journalists who report in the Occupied Territories are required to register with the Israeli military, and any footage that they film is required to go through the Israeli Military Censor’s office before it can be released. With the recent advances in technology, many Palestinians and other civilians have been able to post videos uncensored online. The Israeli government has frequently voiced its discontent with this development, and have worked to find ways to continue to censor videos coming out of the Occupied Palestinian Territories.

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.

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.

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.

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.

Alongside new products and features, Google Tuesday announced a series of moves designed to offer users more privacy. The move builds on an announcement last week that it would allow users to automatically delete their location and activity history. Why it matters: The changes come as Google, along with other tech giants including Facebook, is under pressure to give people more control over what personal information online platforms collect and store.

Google and Facebook, the No. 1 and No. 2 players in online advertising, made a secret illegal pact in 2018 to divide up the market for ads on websites and apps, according to an antitrust suit filed Wednesday against the search giant. The suit — filed by Texas and eight other states — alleges that the companies colluded to fix prices and divvy up the market for mobile advertising between them.

The allegation that Google teamed up with Facebook to suppress competition mirrors a major claim in a separate antitrust suit the Justice Department filed against the company in October: that Google teamed up with Apple to help ensure the continued dominance of its search engine. Such allegations provide some of the strongest ammunition yet to advocates who argue that the U.S. major tech companies have gotten too big and are using their power — sometimes in conjunction with each other — to control markets.Many of the details about the Google-Facebook agreement, including its specific language, are redacted from the complaint. But the states say it “fixes prices and allocates markets between Google and Facebook as competing bidders in the auctions for publishers’ web display and in-app advertising inventory.”

The complaint alleges that the agreement was prompted by Facebook’s move in 2017 to use “header bidding” — a technology popular with website publishers that helped them increase the money they made from advertising. While Facebook sells ads on its own platform, it also operates a network to let advertisers offer ads on third-party apps and mobile websites.

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.

Microsoft is the leading suitor to potentially take over short-form video app TikTok as the Trump administration considers sidelining its Chinese parent company, according to a person familiar with the talks, the latest sign of the administration’s increasingly strident stance on China and its tech companies.President Donald Trump is considering signing an order forcing China’s ByteDance to sell off the U.S. portion of TikTok over national security concerns, according to people familiar with the talks, who spoke on the condition of anonymity because they were not authorized to discuss it publicly. One of the individuals confirmed Microsoft was in the lead to acquire the popular platform’s U.S. service.While the order was originally expected to be signed Friday, it could still fall through, the people warned. The president was also considering other approaches, including designating TikTok under an executive order that allows the president to exclude national security threats from U.S. networks.

If Microsoft does acquire TikTok, it would make it a major rival to Facebook, Google’s YouTube and other tech giants overnight, dramatically reshaping the U.S. social media landscape.