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Two Facebook users are seeking damages on behalf of hundreds of thousands of Canadians whose personal data may have been improperly used for political purposes. The proposed class-action lawsuit filed by Calgary residents Saul Benary and Karma Holoboff asks the Federal Court to order the social-media giant to bolster its security practices to better protect sensitive information and comply with federal privacy law. It also seeks $1,000 for each of the approximately 622,000 Canadians whose information was shared with others through a digital app.

Right around the time that Apple stock was surging to new highs thanks to a better than expected earnings report and stock split, another story was surfacing: Arizona is leading a multi-state investigation into whether or not Apple is deliberately slowing its old iPhones, and whether such practices would violate deceptive trade laws.  A probe has been ongoing "since 2018" and investigators are focusing on data that shows "unexpected shutdowns" of old Apple iPhones and the company's potential slowing down of devices using power management software, according to Reuters.  Documents obtained last week from a Texas watchdog group showed that the Texas AG was also involved in the investigation. Sources told Reuters that a "majority of U.S. states", with AGs spanning both parties, are involved and are "teaming up" together in the probe. 

Apple agreed to pay up to $500 million to settle a related class action lawsuit earlier this year. 

The European Commission has opened formal antitrust investigations to assess whether Apple's rules for app developers on the distribution of apps via the App Store violate EU competition rules. The investigations concern in particular the mandatory use of Apple's own proprietary in-app purchase system and restrictions on the ability of developers to inform iPhone and iPad users of alternative cheaper purchasing possibilities outside of apps. The investigations concern the application of these rules to all apps, which compete with Apple's own apps and services in the European Economic Area (EEA). The investigations follow-up on separate complaints by Spotify and by an e-book/audiobook distributor on the impact of the App Store rules on competition in music streaming and e-books/audiobooks.

iPhone and iPad users can only download native (non web-based) apps via the App Store. The Commission will investigate in particular two restrictions imposed by Apple in its agreements with companies that wish to distribute apps to users of Apple devices: (i)   The mandatory use of Apple's own proprietary in-app purchase system “IAP” for the distribution of paid digital content. Apple charges app developers a 30% commission on all subscription fees through IAP. (ii)  Restrictions on the ability of developers to inform users of alternative purchasing possibilities outside of apps. While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere (e.g. on the website of the app developer) also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper.

Facebook said on Wednesday that it had agreed to pay $550 million to settle a class-action lawsuit over its use of facial recognition technology in Illinois, giving privacy groups a major victory that again raised questions about the social network’s data-mining practices.The case stemmed from Facebook’s photo-labeling service, Tag Suggestions, which uses face-matching software to suggest the names of people in users’ photos. The suit said the Silicon Valley company violated an Illinois biometric privacy law by harvesting facial data for Tag Suggestions from the photos of millions of users in the state without their permission and without telling them how long the data would be kept. Facebook has said the allegations have no merit.Under the agreement, Facebook will pay $550 million to eligible Illinois users and for the plaintiffs’ legal fees. The sum dwarfs the $380.5 million that the Equifax credit reporting agency agreed this month to pay to settle a class-action case over a 2017 consumer data breach.

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.

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.

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

Facebook and Google are among multiple Big Tech companies seeking to have Texas’ new law banning political censorship on social media axed by the Supreme Court. According to The Washington Post, advocacy groups NetChoice and the Computer & Communications Industry Association (CCIA) filed an emergency application with the U.S. Supreme Court on Friday on behalf of Facebook, Google and other Big Tech companies, with the intention of striking down the new Texas law that prohibits censorship based on political ideology on social media. In a statement about the emergency filing, NetChoice counsel Chris Marchese argues that the Texas law, which went into effect last Wednesday, “strips private online businesses of their speech rights, forbids them from making constitutionally protected editorial decisions, and forces them to publish and promote objectionable content.”

“Left standing, [the Texas law] will turn the First Amendment on its head — to violate free speech, the government need only claim to be ‘protecting’ it,” Marchese added. Under the law, Texas residents and the state’s attorney general would be permitted to sue social media companies based in the United States if they believe their social media accounts were censored based on their political views. While the law was initially blocked by a federal district judge after it was signed last September by Texas Gov. Greg Abbot, the injunction was ultimately lifted by an appeals court last Wednesday. Big Tech companies have been consistently charged with weaponizing their “Terms of Service” agreements with users in an effort to ban or censor those expressing traditionally conservative or right-wing views on their extremely large and influential platforms.

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

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

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

The Massachusetts Department of Public Health (DPH) is facing a class-action lawsuit for allegedly using Google technology to covertly install tracking apps on over one million Android phones as part of the state government’s efforts to slow the spread of COVID-19 through contact tracing. In a lawsuit filed Tuesday, the New Civil Liberties Alliance (NCLA), a nonpartisan civil rights firm, accused the Bay State’s health department of "brazen disregard for civil liberties" by installing "spyware that deliberately tracks and records movement and personal contacts onto over a million mobile devices without their owners’ permission and awareness." The class-action suit claims DPH is in violation of both the Massachusetts and U.S. Constitutions.

In the plethora of copyright lawsuits against artificial intelligence developers, a pair of complaints filed on Wednesday against OpenAI and related defendants stands out.Unlike most of the authors, artists and news organizations that have sued AI developers, The Intercept Media, opens new tab and Raw Story Media, opens new tab are not alleging straightforward copyright infringement claims. The media companies are instead asserting only that OpenAI and its co-defendants violated the Digital Millennium Copyright Act, or DMCA, deliberately undermining their copyrights by stripping identifying information out of articles used to train the AI system behind the popular chatbot ChatGPT.As my Reuters colleague Blake Brittain reported on Wednesday, the 1998 federal DMCA statute prohibits the removal of information that can help copyright holders detect infringement, including article titles, author names and copyright dates.

Facebook parent company Meta must face a lawsuit over claims it breached its terms of service by soliciting fraudulent advertisements from Chinese companies, a federal appeals court has ruled.

he pair said Facebook was unjustly enriching itself and being negligent by not only accepting but soliciting ads from scammers. That included efforts to solicit ads from China-based advertisers, despite internal data indicating nearly three-in-10 such ads violated one or more Facebook policies.They also said that Facebook was breaching the contract it made with users when it stated in its terms of service that if it learned of harmful conduct, “we will take appropriate action,” but instead solicited, encouraged, and assisted deceptive advertisers.