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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.

A U.S. appeals court ruled on Friday that Google's massive effort to scan millions of books for an online library does not violate copyright law, rejecting claims from a group of authors that the project illegally deprives them of revenue.The 2nd U.S. Circuit Court of Appeals in New York rejected infringement claims from the Authors Guild and several individual writers, and found that the project provides a public service without violating intellectual property law.

Google argued that the effort would actually boost book sales by making it easier for readers to find works, while introducing them to books they might not otherwise have seen.A lawyer for the authors did not immediately respond to a request for comment.Google had said it could face billions of dollars in potential damages if the authors prevailed. Circuit Judge Denny Chin, who oversaw the case at the lower court level, dismissed the litigation in 2013, prompting the authors' appeal.Chin found Google's scanning of tens of millions of books and posting "snippets" online constituted "fair use" under U.S. copyright law.A unanimous three-judge appeals panel said the case "tests the boundaries of fair use," but found Google's practices were ultimately allowed under the law. "Google’s division of the page into tiny snippets is designed to show the searcher just enough context surrounding the searched term to help her evaluate whether the book falls within the scope of her interest (without revealing so much as to threaten the author’s copyright interests)," Circuit Judge Pierre Leval wrote for the court.

The 2nd Circuit had previously rejected a similar lawsuit from the Authors Guild in June 2014 against a consortium of universities and research libraries that built a searchable online database of millions of scanned works.The case is Authors Guild v. Google Inc, 2nd U.S. Circuit Court of Appeals, No. 13-4829.

About THE INTERCEPT Editors: Glenn Greenwald, Jeremy Scahill, Laura Poitras Senior Editor: Liliana Segura Senior Writers: Peter Maass, Dan Froomkin Reporters: Ryan Gallagher, Ryan Devereaux, Murtaza Hussain Senior Policy Analyst: Marcy Wheeler Legal Analyst: Dan Novack Technology Analyst: Micah Lee ________________________________________________________________________________________ A Publication of FIRST LOOK MEDIA Publisher: Pierre Omidyar Chief Revenue Officer: Michael Rosen Executive Editors: Eric Bates, Bill Gannon Engagement Editor: Andy Carvin

IBM announced today that it would throw another billion at Linux, the open-source operating system, to run its Power System servers. The first time it had thrown a billion at Linux was in 2001, when Linux was a crazy, untested, even ludicrous proposition for the corporate world. So the moolah back then didn’t go to Linux itself, which was free, but to related technologies across hardware, software, and service, including things like sales and advertising – and into IBM’s partnership with Red Hat which was developing its enterprise operating system, Red Hat Enterprise Linux. “It helped start a flurry of innovation that has never slowed,” said Jim Zemlin, executive director of the Linux Foundation. IBM claims that the investment would “help clients capitalize on big data and cloud computing with modern systems built to handle the new wave of applications coming to the data center in the post-PC era.” Some of the moolah will be plowed into the Power Systems Linux Center in Montpellier, France, which opened today. IBM’s first Power Systems Linux Center opened in Beijing in May. IBM may be trying to make hay of the ongoing revelations that have shown that the NSA and other intelligence organizations in the US and elsewhere have roped in American tech companies of all stripes with huge contracts to perfect a seamless spy network. They even include physical aspects of surveillance, such as license plate scanners and cameras, which are everywhere [read.... Surveillance Society: If You Drive, You Get Tracked].

Then another boon for IBM. Experts at the German Federal Office for Security in Information Technology (BIS) determined that Windows 8 is dangerous for data security. It allows Microsoft to control the computer remotely through a “special surveillance chip,” the wonderfully named Trusted Platform Module (TPM), and a backdoor in the software – with keys likely accessible to the NSA and possibly other third parties, such as the Chinese. Risks: “Loss of control over the operating system and the hardware” [read.... LEAKED: German Government Warns Key Entities Not To Use Windows 8 – Links The NSA.

It would be an enormous competitive advantage for an IBM salesperson to walk into a government or corporate IT department and sell Big Data servers that don’t run on Windows, but on Linux. With the Windows 8 debacle now in public view, IBM salespeople don’t even have to mention it. In the hope of stemming the pernicious revenue decline their employer has been suffering from, they can politely and professionally hype the security benefits of IBM’s systems and mention in passing the comforting fact that some of it would be developed in the Power Systems Linux Centers in Montpellier and Beijing. Alas, Linux too is tarnished. The backdoors are there, though the code can be inspected, unlike Windows code. And then there is Security-Enhanced Linux (SELinux), which was integrated into the Linux kernel in 2003. It provides a mechanism for supporting “access control” (a backdoor) and “security policies.” Who developed SELinux? Um, the NSA – which helpfully discloses some details on its own website (emphasis mine): The results of several previous research projects in this area have yielded a strong, flexible mandatory access control architecture called Flask. A reference implementation of this architecture was first integrated into a security-enhanced Linux® prototype system in order to demonstrate the value of flexible mandatory access controls and how such controls could be added to an operating system. The architecture has been subsequently mainstreamed into Linux and ported to several other systems, including the Solaris™ operating system, the FreeBSD® operating system, and the Darwin kernel, spawning a wide range of related work.

WASHINGTON (AP) -- The Obama administration has been quietly advising local police not to disclose details about surveillance technology they are using to sweep up basic cellphone data from entire neighborhoods, The Associated Press has learned. Citing security reasons, the U.S. has intervened in routine state public records cases and criminal trials regarding use of the technology. This has resulted in police departments withholding materials or heavily censoring documents in rare instances when they disclose any about the purchase and use of such powerful surveillance equipment. Federal involvement in local open records proceedings is unusual. It comes at a time when President Barack Obama has said he welcomes a debate on government surveillance and called for more transparency about spying in the wake of disclosures about classified federal surveillance programs.

One well-known type of this surveillance equipment is known as a Stingray, an innovative way for law enforcement to track cellphones used by suspects and gather evidence. The equipment tricks cellphones into identifying some of their owners' account information, like a unique subscriber number, and transmitting data to police as if it were a phone company's tower. That allows police to obtain cellphone information without having to ask for help from service providers, such as Verizon or AT&T, and can locate a phone without the user even making a call or sending a text message. But without more details about how the technology works and under what circumstances it's used, it's unclear whether the technology might violate a person's constitutional rights or whether it's a good investment of taxpayer dollars. Interviews, court records and public-records requests show the Obama administration is asking agencies to withhold common information about the equipment, such as how the technology is used and how to turn it on. That pushback has come in the form of FBI affidavits and consultation in local criminal cases.

"These extreme secrecy efforts are in relation to very controversial, local government surveillance practices using highly invasive technology," said Nathan Freed Wessler, a staff attorney with the American Civil Liberties Union, which has fought for the release of these types of records. "If public participation means anything, people should have the facts about what the government is doing to them." Harris Corp., a key manufacturer of this equipment, built a secrecy element into its authorization agreement with the Federal Communications Commission in 2011. That authorization has an unusual requirement: that local law enforcement "coordinate with the FBI the acquisition and use of the equipment." Companies like Harris need FCC authorization in order to sell wireless equipment that could interfere with radio frequencies. A spokesman from Harris Corp. said the company will not discuss its products for the Defense Department and law enforcement agencies, although public filings showed government sales of communications systems such as the Stingray accounted for nearly one-third of its $5 billion in revenue. "As a government contractor, our solutions are regulated and their use is restricted," spokesman Jim Burke said.

America Online (AOL) will be resurrecting Verizon’s zombie cookies because they are fabulous data-trackers that cannot be “killed”. AOL wants to boost their ad revenue regardless of the infringement on customer privacy they pose and the enabling of hacker attacks they can facilitate.

Part of that shift is simple: The business side sees what technology can do, and it's banging on IT's door, demanding ... what? Not new drop-down menus in the same-old ERP application, but rather state-of-the-art, cutting-edge, ain't-that-cool innovation. The landscape is wide open: Innovation can come in the form of new technologies, such as the Internet of Things, or from mobility, the cloud, virtualization -- in fact, from anywhere an enterprise vendor isn't filling a need. The easiest place to find that? Startups.

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.

Six4Three recently published a playbook for the FTC to get to the bottom of Facebook’s secretive deals selling user data without privacy controls. In light of The New York Times article reporting multiple criminal investigations into Facebook surrounding these secretive deals, we’re publishing the playbook for criminal investigators.Perhaps the most important recognition at the outset is that the secretive deals that have been reported, whether those with a handful of device manufacturers or with 150 large technology companies, are just the tip of the iceberg. Those secretive deals handing over user data in exchange for gobs of cash were merely part and parcel of a much broader illegal scheme that begins with Facebook’s transition to mobile in 2012 and continues to this very day. We believe this illegal scheme amounts to a clear RICO violation. The United Kingdom Parliament agrees. Here’s how criminal investigators can overcome Facebook’s incredibly effective concealment campaign and bring a viable RICO case.Facebook’s pattern of racketeering activity is a play in three acts from at least 2012 to present. The first act is all about the desperation resulting from the collapse of Facebook’s desktop advertising business right around its IPO and the various securities violations that resulted. The second act is about covering up those securities violations by illegally building its mobile advertising business via extortion and wire fraud in order to close the gap in Facebook’s revenue projections before the world took notice, which likely resulted in additional securities violations. The third act is about covering up the extortion and wire fraud by lying to government officials investigating Facebook while continuing to effectuate the scheme. We are still in the third act.For almost a decade now Facebook has been covering up one illegal act with another in order to hide how it managed to ramp up its mobile advertising business faster than any other business in the history of capitalism. The abuses of Facebook’s data, from Russian interference in the 2016 election to Cambridge Analytica and Brexit, all stem in substantial part from the decisions Facebook knowingly, willfully and maliciously made to facilitate this criminal conspiracy. Put simply, Facebook’s transition to mobile destabilized the world.

Google and Apple, which already battle over mobile operating systems, are opening a new front in their fight. How that plays out may determine the future of the web. Google was born on the web, and its business reflects its origin. The company depends on the web for search and advertising revenue. So it isn't a surprise that Google sees the web as key to the future of software. Front and center are web apps, interactive websites with the same power as conventional apps that run natively on operating systems like Windows, Android, MacOS and iOS.  Apple has a different vision of the future, one that plays to its strengths. The company revolutionized mobile computing with its iPhone line. Its profits depend on those products and the millions of apps that run on them. Apple, unsurprisingly, appears less excited about developments, like web apps, that could cut into its earnings.

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.

A Moscow court on Friday slapped Google with a nearly US$100 million fine and also fined Facebook Inc’s parent company Meta Platforms Inc US$27 million over their failure to delete content banned by local law, as Russia seeks to step up pressure on technology giants. The Tagansky District Court ruled that Google repeatedly neglected to remove the banned content, and ordered the company to pay an administrative fine of 7.2 billion rubles (US$97.7 million).

Later on Friday, the court also slapped a fine of nearly 2 billion rubles on Meta for failure to remove banned content. Russian courts had this year imposed smaller fines on Google, Facebook and Twitter Inc, and Friday’s rulings were the first time that the size of the fines were calculated based on revenue. Russian state communications watchdog Roskomnadzor said that Google and Meta were specifically accused of contravening a ban on distributing content that promotes extremist ideology, insults religious beliefs and encourages dangerous behavior by minors, among other things.

September 29, 2021, Google deleted my YouTube account for “violating community guidelines” they’d implemented that same morning September 28, 2022, I filed a lawsuit against Google, YouTube and Alphabet Inc. for breach of contract. YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content YouTube’s terms of service also include a “three strikes” policy, where users are supposed to be given three warnings and opportunities to remove content that violates the guidelines BEFORE being banned. I had no “strikes” against my channel on the day I was deplatformed and deleted We’re also suing YouTube for unjust enrichment, as for the last 16 years, my video content, having generated in excess of 50 million views, has been of great financial benefit to YouTube, allowing them to increase advertising revenue on the site November 8, 2021, I sued U.S. Sen. Elizabeth Warren, both in her official and personal capacities, for violating my First Amendment rights, as she tried to force Amazon.com to ban my book, “The Truth About COVID-19” September 29, 2021, Google deleted my YouTube account for “violating community guidelines” — guidelines they’d implemented that very same morning. September 28, 2022, I filed a lawsuit1 against Google, YouTube and Alphabet Inc. for breach of contract.2 As detailed in my complaint, YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content, which went back to 2005, the same year YouTube was founded. At the time YouTube deleted my content, I had more than 300,000 subscribers, and my videos had collectively garnered more than 50 million views. While I disagreed with YouTube’s censorship, when its “COVID-19 misinformation” policy was implemented back in April 2021, I carefully avoided posting any content on YouTube that might violate that guideline. In fact, over 16 years on the platform, I never once received notice of any “strike” against my channel for violation of community guidelines.

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.

Meta could shut down Facebook and Instagram throughout Europe if regulators are unable to hammer out a permanent data transfer deal, the company warned in a recent SEC filing. The claim from Mark Zuckerberg’s company came as officials in the European Union and US attempt to craft a new trans-Atlantic data transfer agreement. The EU’s Court of Justice struck down a previous agreement, dubbed Privacy Shield, in 2020, due to concerns it could not ensure data security for Europeans once it is sent to the US. Without a transnational deal in place, Meta could face legal and regulatory obstacles when it transfers user data, which plays a key role in its lucrative advertising business that comprises the bulk of the company’s annual revenue. “If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs (standard contractual clauses) or rely upon other alternative means of data transfers from Europe to the United States, we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe,” Meta officials said in the filing.