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In September of last year, we noted that Facebook representatives were meeting with the Israeli government to determine which Facebook accounts of Palestinians should be deleted on the ground that they constituted “incitement.” The meetings — called for and presided over by one of the most extremist and authoritarian Israeli officials, pro-settlement Justice Minister Ayelet Shaked — came after Israel threatened Facebook that its failure to voluntarily comply with Israeli deletion orders would result in the enactment of laws requiring Facebook to do so, upon pain of being severely fined or even blocked in the country. The predictable results of those meetings are now clear and well-documented. Ever since, Facebook has been on a censorship rampage against Palestinian activists who protest the decades-long, illegal Israeli occupation, all directed and determined by Israeli officials. Indeed, Israeli officials have been publicly boasting about how obedient Facebook is when it comes to Israeli censorship orders

Facebook now seems to be explicitly admitting that it also intends to follow the censorship orders of the U.S. government.

What this means is obvious: that the U.S. government — meaning, at the moment, the Trump administration — has the unilateral and unchecked power to force the removal of anyone it wants from Facebook and Instagram by simply including them on a sanctions list. Does anyone think this is a good outcome? Does anyone trust the Trump administration — or any other government — to compel social media platforms to delete and block anyone it wants to be silenced? As the ACLU’s Jennifer Granick told the Times: It’s not a law that appears to be written or designed to deal with the special situations where it’s lawful or appropriate to repress speech. … This sanctions law is being used to suppress speech with little consideration of the free expression values and the special risks of blocking speech, as opposed to blocking commerce or funds as the sanctions was designed to do. That’s really problematic.

The opening panel of the Stigler Center’s annual antitrust conference discussed the source of digital platforms’ power and what, if anything, can be done to address the numerous challenges their ability to shape opinions and outcomes present. 

Google CEO Sundar Pichai caused a worldwide sensation earlier this week when he unveiled Duplex, an AI-driven digital assistant able to mimic human speech patterns (complete with vocal tics) to such a convincing degree that it managed to have real conversations with ordinary people without them realizing they were actually talking to a robot.   While Google presented Duplex as an exciting technological breakthrough, others saw something else: a system able to deceive people into believing they were talking to a human being, an ethical red flag (and a surefire way to get to robocall hell). Following the backlash, Google announced on Thursday that the new service will be designed “with disclosure built-in.” Nevertheless, the episode created the impression that ethical concerns were an “after-the-fact consideration” for Google, despite the fierce public scrutiny it and other tech giants faced over the past two months. “Silicon Valley is ethically lost, rudderless and has not learned a thing,” tweeted Zeynep Tufekci, a professor at the University of North Carolina at Chapel Hill and a prominent critic of tech firms.   The controversial demonstration was not the only sign that the global outrage has yet to inspire the profound rethinking critics hoped it would bring to Silicon Valley firms. In Pichai’s speech at Google’s annual I/O developer conference, the ethical concerns regarding the company’s data mining, business model, and political influence were briefly addressed with a general, laconic statement: “The path ahead needs to be navigated carefully and deliberately and we feel a deep sense of responsibility to get this right.”

Google’s fellow FAANGs also seem eager to put the “techlash” of the past two years behind them. Facebook, its shares now fully recovered from the Cambridge Analytica scandal, is already charging full-steam ahead into new areas like dating and blockchain.   But the techlash likely isn’t going away soon. The rise of digital platforms has had profound political, economic, and social effects, many of which are only now becoming apparent, and their sheer size and power makes it virtually impossible to exist on the Internet without using their services. As Stratechery’s Ben Thompson noted in the opening panel of the Stigler Center’s annual antitrust conference last month, Google and Facebook—already dominating search and social media and enjoying a duopoly in digital advertising—own many of the world’s top mobile apps. Amazon has more than 100 million Prime members, for whom it is usually the first and last stop for shopping online.   Many of the mechanisms that allowed for this growth are opaque and rooted in manipulation. What are those mechanisms, and how should policymakers and antitrust enforcers address them? These questions, and others, were the focus of the Stigler Center panel, which was moderated by the Economist’s New York bureau chief, Patrick Foulis.

he National Security Agency (NSA) collected over 530 million phone records of Americans in 2017—that's three times the amount the spy agency sucked up in 2016. The figures were released Friday in an annual report from the Office of the Director of National Intelligence (ODNI). It shows that the number of "call detail records" the agency collected from telecommunications providers during Trump's first year in office was 534 million, compared to 151 million the year prior. "The intelligence community's transparency has yet to extend to explaining dramatic increases in their collection," said Robyn Greene, policy counsel at the Open Technology Institute. The content of the calls itself is not collected but so-called "metadata," which, as Gizmodo notes, "is supposedly anonymous, but it can easily be used to identify an individual. The information can also be paired with other publicly available information from social media and other sources to paint a surprisingly detailed picture of a person's life." The report also revealed that the agency, using its controversial Section 702 authority, increased the number of foreign targets of warrantless surveillance. It was 129,080 in 2017 compared to 106,469 in 2016. As digital rights group EFF noted earlier this year, Under Section 702, the NSA collects billions of communications, including those belonging to innocent Americans who are not actually targeted. These communications are then placed in databases that other intelligence and law enforcement agencies can access—for purposes unrelated to national security—without a warrant or any judicial review. "Overall," Jake Laperruque, senior counsel at the Project On Government Oversight, said to ZDNet, "the numbers show that the scale of warrantless surveillance is growing at a significant rate, but ODNI still won't tell Americans how much it affects them."

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

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

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

The U.S. Department of Homeland Security (DHS) is quietly building what will likely become the largest database of biometric and biographic data on citizens and foreigners in the United States. The agency’s new Homeland Advanced Recognition Technology (HART) database will include multiple forms of biometrics—from face recognition to DNA, data from questionable sources, and highly personal data on innocent people. It will be shared with federal agencies outside of DHS as well as state and local law enforcement and foreign governments. And yet, we still know very little about it.The records DHS plans to include in HART will chill and deter people from exercising their First Amendment protected rights to speak, assemble, and associate. Data like face recognition makes it possible to identify and track people in real time, including at lawful political protests and other gatherings. Other data DHS is planning to collect—including information about people’s “relationship patterns” and from officer “encounters” with the public—can be used to identify political affiliations, religious activities, and familial and friendly relationships. These data points are also frequently colored by conjecture and bias.

DHS currently collects a lot of data. Its legacy IDENT fingerprint database contains information on 220-million unique individuals and processes 350,000 fingerprint transactions every day. This is an exponential increase from 20 years ago when IDENT only contained information on 1.8-million people. Between IDENT and other DHS-managed databases, the agency manages over 10-billion biographic records and adds 10-15 million more each week.

DHS’s new HART database will allow the agency to vastly expand the types of records it can collect and store. HART will support at least seven types of biometric identifiers, including face and voice data, DNA, scars and tattoos, and a blanket category for “other modalities.” It will also include biographic information, like name, date of birth, physical descriptors, country of origin, and government ID numbers. And it will include data we know to by highly subjective, including information collected from officer “encounters” with the public and information about people’s “relationship patterns.”

While there is considerable telecom hubris regarding the 5G rollout and increasing speculation that the next generation of wireless is not yet ready for Prime Time, the industry continues to make promises to Rural America that it has no intention of fulfilling. Decades-long promises to deliver digital Utopia to rural America by T-Mobile, Verizon and AT&T have never materialized.  

In 2017, the USDA reported that 29% of American farms had no internet access. The FCC says that 14 million rural Americans and 1.2 million Americans living on tribal lands do not have 4G LTE on their phones, and that 30 million rural residents do not have broadband service compared to 2% of urban residents.  It’s beginning to sound like a Third World country. Despite an FCC $4.5 billion annual subsidy to carriers to provide broadband service in rural areas, the FCC reports that ‘over 24 million Americans do not have access to high-speed internet service, the bulk of them in rural area”while a  Microsoft Study found that  “162 million people across the US do not have internet service at broadband speeds.” At the same time, only three cable companies have access to 70% of the market in a sweetheart deal to hike rates as they avoid competition and the FCC looks the other way.  The FCC believes that it would cost $40 billion to bring broadband access to 98% of the country with expansion in rural America even more expensive.  While the FCC has pledged a $2 billion, ten year plan to identify rural wireless locations, only 4 million rural American businesses and homes will be targeted, a mere drop in the bucket. Which brings us to rural mapping: Since the advent of the digital age, there have been no accurate maps identifying where broadband service is available in rural America and where it is not available.  The FCC has a long history of promulgating unreliable and unverified carrier-provided numbers as the Commission has repeatedly ‘bungled efforts to produce accurate broadband maps” that would have facilitated rural coverage. During the Senate Commerce Committee hearing on April 10th regarding broadband mapping, critical testimony questioned whether the FCC and/or the telecom industry have either the commitment or the proficiency to provide 5G to rural America.  Members of the Committee shared concerns that 5G might put rural America further behind the curve so as to never catch up with the rest of the country

On a mysterious farm just above the Pacific Ocean, the group who built the internet is inviting a small number of friends to a semi-secret gathering. They describe it as a camp "where diverse people can freely exchange ideas about the technologies, laws, markets, and agreements we need to move forward.” Forward indeed.It wasn’t that long ago that the internet was an open network of computers, blogs, sites, and posts.But then something happened -- and the open web was taken over by private, for-profit, closed networks. Facebook isn’t the web. YouTube isn’t the web. Google isn’t the web. They’re for-profit businesses that are looking to sell audiences to advertisers.Brewster Kahle is one of the early web innovators who built the Internet Archive as a public storehouse to protect the web’s history. Along with web luminaries such as Sir Tim Berners-Lee and Vint Cerf, he is working to protect and rebuild the open nature of the web.advertisementadvertisement“We demonstrated that the web had failed instead of served humanity, as it was supposed to have done,” Berners-Lee told Vanity Fair. The web has “ended up producing -- [through] no deliberate action of the people who designed the platform -- a large-scale emergent phenomenon which is anti-human.”

o, they’re out to fix it, working on what they call the Dweb. The “d” in Dweb stands for distributed. In distributed systems, no one entity has control over the participation of any other entity.Berners-Lee is building a platform called Solid, designed to give people control over their own data. Other global projects also have the goal of taking take back the public web. Mastodon is decentralized Twitter. Peertube is a decentralized alternative to YouTube.This July 18 - 21, web activists plan to convene at the Decentralized Web Summit in San Francisco. Back in 2016, Kahle convened an early group of builders, archivists, policymaker, and journalists. He issued a challenge to  use decentralized technologies to “Lock the Web Open.” It’s hard to imagine he knew then how quickly the web would become a closed network.Last year's Dweb gathering convened more than 900 developers, activists, artists, researchers, lawyers, and students. Kahle opened the gathering by reminding attendees that the web used to be a place where everyone could play. "Today, I no longer feel like a player, I feel like I’m being played. Let’s build a decentralized web, let’s build a system we can depend on, a system that doesn’t feel creepy” he said, according to IEEE Spectrum.With the rising tide of concerns about how social networks have hacked our democracy, Kahle and his Dweb community will gather with increasing urgency around their mission.The internet began with an idealist mission to connect people and information for good. Today's web has yet to achieve that goal, but just maybe Dweb will build an internet more robust and open than the current infrastructure allows. That’s a mission worth fighting for.

On Tuesday, Facebook announced its forthcoming cryptocurrency, Libra. The company says it intends to integrate it into Facebook’s Messenger and WhatsApp products. Although Facebook says it’s created an “independent” subsidiary, Calibra, and purports that the currency itself will be controlled by an independent Libra Foundation, the coin really a Facebook project. It is not live yet, giving governments the opportunity to kill this project before it actually gets off the ground and gives rise to cybercriminals that couldn’t capitalize on existing cryptocurrencies. In particular, the IRS and FinCEN should take action now.

Apparent National Security Agency (NSA) malware has been used in a global cyber-attack, including on British hospitals, in what whistleblower Edward Snowden described as the repercussion of the NSA’s reckless decision to build the tools. “Despite warnings, @NSAGov built dangerous attack tools that could target Western software. Today we see the cost,” Snowden tweeted Friday. At least two hospitals in London were forced to shut down and stop admitting patients after being attacked by the malware, which operates by locking out the user, encrypting data, and demanding a ransom to release it. The attacks hit dozens of other hospitals, ambulance operators, and doctors’ offices as well.

The Blackpool Gazette in the northwest reported that medical staff had resorted to using pen and paper when phone and computer systems shut down. Elsewhere, journalist Ollie Cowan tweeted a photo of ambulances “backed up” at Southport Hospital as the staff attempted to cope with the crisis.

Other disruptions were reported in at least 74 countries, including Russia, Spain, Turkey, and Japan, and the number is “growing fast,” according to Kaspersky Lab chief Costin Raiu. Security architect Kevin Beau said it was spreading into the U.S. as well. The malware, which Microsoft tested briefly earlier this year, was leaked by a group calling itself the Shadow Brokers, which has been releasing NSA hacking tools online since last year, the New York Times reports. Times journalists Dan Bilefsky and Nicole Perlroth wrote: Microsoft rolled out a patch for the vulnerability in March, but hackers apparently took advantage of the fact that vulnerable targets—particularly hospitals—had yet to update their systems. The malware was circulated by email. Targets were sent an encrypted, compressed file that, once loaded, allowed the ransomware to infiltrate its targets. Reuters reported that the National Health Service (NHS), England’s public health system, was warned about possible hacking earlier in the day, but that by then it was already too late.

Such profiteering tactics have disproportionately affected low-income and rural communities. ISPs have long redlined these demographic groups, creating what’s commonly known as the “digital divide.” Thirty-nine percent of Americans lack access to service fast enough to meet the federal definition of broadband. More than 50 percent of adults with household incomes below $30,000 have home broadband—a problem plaguing users of color most acutely. In contrast, internet access is near-universal for households with an annual income of $100,000 or more. The reason for such chasms is simple: Private network providers prioritize only those they expect to provide a return on investment, thus excluding poor and sparsely populated areas.

Chattanooga, Tennessee, has seen more success in addressing redlining. Since 2010, the city has offered public broadband via its municipal power organization, Electric Power Board (EPB). The project has become a rousing success: At half the price, its service is approximately 85 percent faster than that of Comcast, the region’s primary ISP prior to EPB’s inception. Coupled with a discounted program for low-income residents, Chattanooga’s publicly run broadband reaches about 82,000 residents—more than half of the area’s Internet users—and is only expected to grow. Chattanooga’s achievements have radiated to other locales. More than 450 communities have introduced publicly-owned broadband. And more than 110 communities in 24 states have access to publicly owned networks with one gigabit-per-second (Gbps) service. (AT&T, for example, has yet to introduce speeds this high.) Seattle City Councilmember Kshama Sawant proposed a pilot project in 2015 and has recently urged her city to invest in municipal broadband. Hawaii congressperson Kaniela Ing is drafting a bill for publicly-owned Internet for the state legislature to consider next year. In November, residents of Fort Collins, Colo. voted to authorize the city to build municipal broadband infrastructure.

The Web was designed to bring people together and make knowledge freely available. It has changed the world for good and improved the lives of billions. Yet, many people are still unable to access its benefits and, for others, the Web comes with too many unacceptable costs. Everyone has a role to play in safeguarding the future of the Web. The Contract for the Web was created by representatives from over 80 organizations, representing governments, companies and civil society, and sets out commitments to guide digital policy agendas. To achieve the Contract’s goals, governments, companies, civil society and individuals must commit to sustained policy development, advocacy, and implementation of the Contract text.

Google cuts Huawei off Android; so Huawei may migrate to Aurora. Call it mobile Eurasia integration; the evolving Russia-China strategic partnership may be on the verge of spawning its own operating system – and that is not a metaphor. Aurora is a mobile operating system currently developed by Russian Open Mobile Platform, based in Moscow. It is based on the Sailfish operating system, designed by Finnish technology company Jolla, which featured a batch of Russians in the development team. Quite a few top coders at Google and Apple also come from the former USSR – exponents of a brilliant scientific academy tradition.

No Google? Who cares? Tencent, Xiaomi, Vivo and Oppo are already testing the HongMeng operating system, as part of a batch of one million devices already distributed. HongMeng’s launch is still a closely guarded secret by Huawei, but according to CEO Richard Yu, it could happen even before the end of 2019 for the Chinese market, running on smartphones, computers, TVs and cars. HongMeng is rumored to be 60% faster than Android.

Aurora could be regarded as part of Huawei’s fast-evolving Plan B. Huawei is now turbo-charging the development and implementation of its own operating system, HongMeng, a process that started no less than seven years ago. Most of the work on an operating system is writing drivers and APIs (application programming interfaces). Huawei would be able to integrate their code to the Russian system in no time.

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.