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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.

French privacy watchdog, the Commission Nationale de l’Informatique et des Libertés (CNIL), has hit Google with a 150 million euro fine and Facebook with a 60 million euro fine, because their websites—google.fr, youtube.com, and facebook.com—don’t make refusing cookies as easy as accepting them. The CNIL carried out an online investigation after receiving complaints from users about the way cookies were handled on these sites. It found that while the sites offered buttons for allowing immediate acceptance of cookies, the sites didn’t implement an equivalent solution to let users refuse them. Several clicks were required to refuse all cookies, against a single one to accept them. In addition to the fines, the companies have been given three months to provide Internet users in France with a way to refuse cookies that’s as simple as accepting them. If they don’t, the companies will have to pay a penalty of 100,000 euros for each day they delay.

EU data protection regulators’ powers have increased significantly since the General Data Protection Regulation (GDPR) took effect in May 2018. This EU law allows watchdogs to levy penalties of as much as 4% of a company’s annual global sales. The restricted committee, the body in charge of sanctions, considered that the process regarding cookies affects the freedom of consent of Internet users and constitutes an infringement of the French Data Protection Act, which demands that it should be as easy to refuse cookies as to accept them. Since March 31, 2021, when the deadline set for websites and mobile applications to comply with the new rules on cookies expired, the CNIL has adopted nearly 100 corrective measures (orders and sanctions) related to non-compliance with the legislation on cookies.

The online ad industry has attacked Mozilla over its decision to block third-party cookies in a future release of Firefox, calling the move "dangerous and highly disturbing," and claiming that it will result in more ads shown to users. The fierce reaction came from the Interactive Advertising Bureau (IAB) and Association of National Advertisers (ANA), both of which laid out positions in blog posts on March 14.

In their blogs, the two groups lambasted Mozilla, predicting dire consequences, including the shuttering of small businesses and small websites, fewer choices for online users, and more ads in Firefox. "If Mozilla follows through on its plan ... the disruption will disenfranchise every single Internet user," said Randall Rothenberg, president and CEO of the IAB, in his post. "All of us will lose the freedom to choose our own online experiences; we will lose the opportunity to monitor and protect our privacy; and we will lose the chance to benefit from independent sites ... because thousands of small businesses that make up the diversity of content and services online will be forced to close their doors."

What raised the IAB's and ANA's hackles was Mozilla's decision last month to automatically block all third-party tracking cookies in a future version of Firefox, perhaps as soon as June with the release of Firefox 22. Cookies are used by online advertisers to track users' Web movements, then deliver targeted ads, a practice labeled "online behavioral advertising," or OBA, by the ad industry. The new Firefox policy will allow cookies presented from domains that users actually visit -- dubbed a "first-party" site -- but will automatically block those generated by a third-party domain unless the user had previously visited the cookie's site-of-origin.

The legal battle over PRISM and the NSA’s phone records program is only getting under way, but advocacy groups are striking while the issue is hot. Stop Watching Us, a website that encourages citizens to digitally sign a letter that will be emailed to their elected representatives, today passed the 100,000 signature mark. That milestone, passed this morning, comes less than 48 hours after the start of the program. Currently Stop Watching Us has collected 112,279 total signatures

I was perusing the seminar briefing website from this year’s Black Hat EU, fishing for potential article topics, when I came across a briefing note titled “DropSmack: How cloud synchronization services render your corporate firewall worthless.” Feeling a nibble, I read the briefing. Right away, I knew I hooked a keeper: “The contributions of this presentation are threefold. First, we show how cloud-based synchronization solutions in general, and Dropbox in particular, can be used as a vector for delivering malware to an internal network.” The other two contributions were as eye-opening: Show how the Dropbox synchronization service can be used as a Command and Control (C2) channel. Demonstrate how functioning malware is able to use Dropbox to smuggle out data from exploited remote computers.

Last month, we wrote about Bruce Schneier's warning that certain unknown parties were carefully testing ways to take down the internet. They were doing carefully configured DDoS attacks, testing core internet infrastructure, focusing on key DNS servers. And, of course, we've also been talking about the rise of truly massive DDoS attacks, thanks to poorly secured Internet of Things (IoT) devices, and ancient, unpatched bugs. That all came to a head this morning when large chunks of the internet went down for about two hours, thanks to a massive DDoS attack targeting managed DNS provider Dyn. Most of the down sites are back (I'm still having trouble reaching Twitter), but it was pretty widespread, and lots of big name sites all went down. Just check out this screenshot from Downdetector showing the outages on a bunch of sites:

You'll see not all of them have downtime (and the big ISPs, as always, show lots of complaints about downtimes), but a ton of those sites show a giant spike in downtime for a few hours. So, once again, we'd like to point out that this is as problem that the internet community needs to start solving now. There's been a theoretical threat for a while, but it's no longer so theoretical. Yes, some people point out that this is a difficult thing to deal with. If you're pointing people to websites, even if we were to move to a more distributed system, there are almost always some kinds of chokepoints, and those with malicious intent will always, eventually, target those chokepoints. But there has to be a better way -- because if there isn't, this kind of thing is going to become a lot worse.

Then we put the data up, but the problem with Solr was it didn’t have a user interface, so we used Project Blacklight, which is open source software normally used by librarians. We used it for the journalists. It’s simple because it allows you to do faceted search—so, for example, you can facet by the folder structure of the leak, by years, by type of file. There were more complex things—it supports queries in regular expressions, so the more advanced users were able to search for documents with a certain pattern of numbers that, for example, passports use. You could also preview and download the documents. ICIJ open-sourced the code of our document processing chain, created by our web developer Matthew Caruana Galizia. We also developed a batch-searching feature. So say you were looking for politicians in your country—you just run it through the system, and you upload your list to Blacklight and you would get a CSV back saying yes, there are matches for these names—not only exact matches, but also matches based on proximity. So you would say “I want Mar Cabra proximity 2” and that would give you “Mar Cabra,” “Mar whatever Cabra,” “Cabra, Mar,”—so that was good, because very quickly journalists were able to see… I have this list of politicians and they are in the data!

Last Sunday, April 3, the first stories emerging from the leaked dataset known as the Panama Papers were published by a global partnership of news organizations working in coordination with the International Consortium of Investigative Journalists, or ICIJ. As we begin the second week of reporting on the leak, Iceland’s Prime Minister has been forced to resign, Germany has announced plans to end anonymous corporate ownership, governments around the world launched investigations into wealthy citizens’ participation in tax havens, the Russian government announced that the investigation was an anti-Putin propaganda operation, and the Chinese government banned mentions of the leak in Chinese media. As the ICIJ-led consortium prepares for its second major wave of reporting on the Panama Papers, we spoke with Mar Cabra, editor of ICIJ’s Data & Research unit and lead coordinator of the data analysis and infrastructure work behind the leak. In our conversation, Cabra reveals ICIJ’s years-long effort to build a series of secure communication and analysis platforms in support of genuinely global investigative reporting collaborations.

For communication, we have the Global I-Hub, which is a platform based on open source software called Oxwall. Oxwall is a social network, like Facebook, which has a wall when you log in with the latest in your network—it has forum topics, links, you can share files, and you can chat with people in real time.

Harris Corp.’s Stingray surveillance device has been one of the most closely guarded secrets in law enforcement for more than 15 years. The company and its police clients across the United States have fought to keep information about the mobile phone-monitoring boxes from the public against which they are used. The Intercept has obtained several Harris instruction manuals spanning roughly 200 pages and meticulously detailing how to create a cellular surveillance dragnet. Harris has fought to keep its surveillance equipment, which carries price tags in the low six figures, hidden from both privacy activists and the general public, arguing that information about the gear could help criminals. Accordingly, an older Stingray manual released under the Freedom of Information Act to news website TheBlot.com last year was almost completely redacted. So too have law enforcement agencies at every level, across the country, evaded almost all attempts to learn how and why these extremely powerful tools are being used — though court battles have made it clear Stingrays are often deployed without any warrant. The San Bernardino Sheriff’s Department alone has snooped via Stingray, sans warrant, over 300 times.

The documents described and linked below, instruction manuals for the software used by Stingray operators, were provided to The Intercept as part of a larger cache believed to have originated with the Florida Department of Law Enforcement. Two of them contain a “distribution warning” saying they contain “Proprietary Information and the release of this document and the information contained herein is prohibited to the fullest extent allowable by law.”  Although “Stingray” has become a catch-all name for devices of its kind, often referred to as “IMSI catchers,” the manuals include instructions for a range of other Harris surveillance boxes, including the Hailstorm, ArrowHead, AmberJack, and KingFish. They make clear the capability of those devices and the Stingray II to spy on cellphones by, at minimum, tracking their connection to the simulated tower, information about their location, and certain “over the air” electronic messages sent to and from them. Wessler added that parts of the manuals make specific reference to permanently storing this data, something that American law enforcement has denied doing in the past.

One piece of Windows software used to control Harris’s spy boxes, software that appears to be sold under the name “Gemini,” allows police to track phones across 2G, 3G, and LTE networks. Another Harris app, “iDen Controller,” provides a litany of fine-grained options for tracking phones. A law enforcement agent using these pieces of software along with Harris hardware could not only track a large number of phones as they moved throughout a city but could also apply nicknames to certain phones to keep track of them in the future. The manual describing how to operate iDEN, the lengthiest document of the four at 156 pages, uses an example of a target (called a “subscriber”) tagged alternately as Green Boy and Green Ben:

Brian Krebs is a popular reporter on the cybersecurity beat. He regularly exposes cybercriminals and their tactics, and consequently is regularly a target of their ire. Last month, he wrote about an online attack-for-hire service that resulted in the arrest of the two proprietors. In the aftermath, his site was taken down by a massive DDoS attack.In many ways, this is nothing new. Distributed denial-of-service attacks are a family of attacks that cause websites and other internet-connected systems to crash by overloading them with traffic. The "distributed" part means that other insecure computers on the internet—sometimes in the millions—are recruited to a botnet to unwittingly participate in the attack. The tactics are decades old; DDoS attacks are perpetrated by lone hackers trying to be annoying, criminals trying to extort money, and governments testing their tactics. There are defenses, and there are companies that offer DDoS mitigation services for hire. Basically, it's a size vs. size game. If the attackers can cobble together a fire hose of data bigger than the defender's capability to cope with, they win. If the defenders can increase their capability in the face of attack, they win. What was new about the Krebs attack was both the massive scale and the particular devices the attackers recruited. Instead of using traditional computers for their botnet, they used CCTV cameras, digital video recorders, home routers, and other embedded computers attached to the internet as part of the Internet of Things. Much has been written about how the IoT is wildly insecure. In fact, the software used to attack Krebs was simple and amateurish. What this attack demonstrates is that the economics of the IoT mean that it will remain insecure unless government steps in to fix the problem. This is a market failure that can't get fixed on its own.

EU-U.S. Privacy Shield Program Overview The EU-U.S. Privacy Shield Framework was designed by the U.S. Department of Commerce and European Commission to provide companies on both sides of the Atlantic with a mechanism to comply with EU data protection requirements when transferring personal data from the European Union to the United States in support of transatlantic commerce. On July 12, the European Commission deemed the Privacy Shield Framework adequate to enable data transfers under EU law (see the adequacy determination). The Privacy Shield program, which is administered by the International Trade Administration (ITA) within the U.S. Department of Commerce, enables U.S.-based organizations to join the Privacy Shield Framework in order to benefit from the adequacy determination. To join the Privacy Shield Framework, a U.S.-based organization will be required to self-certify to the Department of Commerce (via this website) and publicly commit to comply with the Framework’s requirements. While joining the Privacy Shield Framework is voluntary, once an eligible organization makes the public commitment to comply with the Framework’s requirements, the commitment will become enforceable under U.S. law. All organizations interested in joining the Privacy Shield Framework should review its requirements in their entirety. To assist in that effort, Commerce’s Privacy Shield Team has compiled resources and addressed frequently asked questions below. ResourcesKey New Requirements for Participating Organizations How to Join the Privacy ShieldPrivacy Policy FAQs Frequently Asked Questions

Venezuelan President Nicolas Maduro confirmed Saturday that the state intelligence service SEBIN arrested several directors from the Credicard financial transaction company on Friday night. 

The financial consortium is accused of having deliberately taken advantage of a series of cyber attacks on state internet provider CANTV Friday to paralyse its online payment platform–responsible for the majority of the country’s accredited financial transactions, according to its website. “We have proof that it was a deliberate act what Credicard did yesterday. Right now the main people responsible for Credicard are under arrest,” confirmed the president. The government says that millions of attempted purchases using in-store credit and debit card payment machines provided by the company were interrupted after its platform went down for the most part of the day. Authorities also maintain that the company waited longer than the established protocol of one hour before responding to the issues.

According to CANTV President Manuel Fernandez, Venezuela’s internet platform suffered at least three attacks from an external source on Friday, one of which was aimed at state oil company PDVSA. CANTV was notified of the attacks by international provider LANautilus, which belongs to Telecom Italia. Nonetheless, Fernandez denied that Credicard’s platform was affected by the interferences to CANTV’s service, underscoring that other financial transaction companies that rely on the state enterprise continued to be operative.

A bipartisan pair of lawmakers is expressing alarm at reported changes at the National Security Agency that would allow the intelligence service’s information to be used for policing efforts in the United States.“If media accounts are true, this radical policy shift by the NSA would be unconstitutional, and dangerous,” Reps. Ted Lieu (D-Calif.) and Blake FarentholdBlake FarentholdLawmakers warn of 'radical' move by NSA to share information Overnight Tech: Netflix scores win over Postal Service Lawmakers go green for St. Patrick's Day MORE (R-Texas) wrote in a letter to the spy agency this week. “The proposed shift in the relationship between our intelligence agencies and the American people should not be done in secret.ADVERTISEMENT“NSA’s mission has never been, and should never be, domestic policing or domestic spying.”The NSA has yet to publicly announce the change, but The New York Times reported last month that the administration was poised to expand the agency's ability to share information that it picks up about people’s communications with other intelligence agencies.The modification would open the door for the NSA to give the FBI and other federal agencies uncensored communications of foreigners and Americans picked up incidentally — but without a warrant — during sweeps.  

Robert Litt, the general counsel at the Office of the Director of National Intelligence, told the Times that it was finalizing a 21-page draft of procedures to allow the expanded sharing.  Separately, the Guardian reported earlier this month that the FBI had quietly changed its internal privacy rules to allow direct access to the NSA’s massive storehouse of communication data picked up on Internet service providers and websites.The revelations unnerved civil liberties advocates, who encouraged lawmakers to demand answers of the spy agency.“Under a policy like this, information collected by the NSA would be available to a host of federal agencies that may use it to investigate and prosecute domestic crimes,” said Neema Singh Guliani, legislative counsel and the American Civil Liberties Union. “Making such a change without authorization from Congress or the opportunity for debate would ignore public demands for greater transparency and oversight over intelligence activities.”In their letter this week, Lieu and Farenthold warned that the NSA’s changes would undermine Congress and unconstitutionally violate people’s privacy rights.   

“The executive branch would be violating the separation of powers by unilaterally transferring warrantless data collected under the NSA’s extraordinary authority to domestic agencies, which do not have such authority,” they wrote.“Domestic law enforcement agencies — which need a warrant supported by probable cause to search or seize — cannot do an end run around the Fourth Amendment by searching warrantless information collected by the NSA.”

Right now, a group of 600 industry lobbyist "advisors" and un-elected government trade representatives are scheming behind closed doors1,2 to craft an international agreement called the Trans-Pacific Partnership (TPP). Why the secrecy? We know from leaked documents3 that the TPP includes what amounts to an Internet trap that would:

Criminalize4 some of your everyday use of the Internet, Force service providers to collect and hand over your private data without privacy safeguards5, and Give media conglomerates more power to fine you for Internet use,6 remove online content—including entire websites—and even terminate7 your access to the Internet. Create a parallel legal system of international tribunals that will undermine national sovereignty and allow conglomerates to sue countries for laws that infringe on their profits.

The TPP's Internet trap is secretive, extreme, and it could criminalize your daily use of the Internet. We deserve to know what will be blocked, what we and our families will be fined for. If enough of us speak out now, we can force participating governments to come clean. Your signature will send a message to leaders of participating countries. 8

Does publishing a hyperlink to freely available content amount to an illegal communication to the public and therefore a breach of creator's copyrights under European law? After examining a case referred to it by Sweden's Court of Appeal, the Court of Justice of the European Union has ruled today that no, it does not.

One such case, referred to the CJEU by Sweden’s Court of Appeal, is of particular interest to Internet users as it concerns the very mechanism that holds the web together. The dispute centers on a company called Retriever Sverige AB, an Internet-based subscription service that indexes links to articles that can be found elsewhere online for free. The problem came when Retriever published links to articles published on a newspaper’s website that were written by Swedish journalists. The company felt that it did not have to compensate the journalists for simply linking to their articles, nor did it believe that embedding them within its site amounted to copyright infringement. The journalists, on the other hand, felt that by linking to their articles Retriever had “communicated” their works to the public without permission. In the belief they should be paid, the journalists took their case to the Stockholm District Court. They lost their case in 2010 and decided to take the case to appeal. From there the Svea Court of Appeal sought advice from the EU Court. Today the Court of Justice published its lengthy decision and it’s largely good news for the Internet.

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].

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.

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.

The United States on Friday criticized proposals to build a European communication network to avoid emails and other data passing through the United States, warning that such rules could breach international trade laws. In its annual review of telecommunications trade barriers, the office of the U.S. Trade Representative said impediments to cross-border data flows were a serious and growing concern.It was closely watching new laws in Turkey that led to the blocking of websites and restrictions on personal data, as well as calls in Europe for a local communications network following revelations last year about U.S. digital eavesdropping and surveillance."Recent proposals from countries within the European Union to create a Europe-only electronic network (dubbed a 'Schengen cloud' by advocates) or to create national-only electronic networks could potentially lead to effective exclusion or discrimination against foreign service suppliers that are directly offering network services, or dependent on them," the USTR said in the report.

Germany and France have been discussing ways to build a European network to keep data secure after the U.S. spying scandal. Even German Chancellor Angela Merkel's cell phone was reportedly monitored by American spies.The USTR said proposals by Germany's state-backed Deutsche Telekom to bypass the United States were "draconian" and likely aimed at giving European companies an advantage over their U.S. counterparts.Deutsche Telekom has suggested laws to stop data traveling within continental Europe being routed via Asia or the United States and scrapping the Safe Harbor agreement that allows U.S. companies with European-level privacy standards access to European data. (www.telekom.com/dataprotection)"Any mandatory intra-EU routing may raise questions with respect to compliance with the EU's trade obligations with respect to Internet-enabled services," the USTR said. "Accordingly, USTR will be carefully monitoring the development of any such proposals."

U.S. tech companies, the leaders in an e-commerce marketplace estimated to be worth up to $8 trillion a year, have urged the White House to undertake reforms to calm privacy concerns and fend off digital protectionism.