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Google opted in the Spring not to disclose that the data of hundreds of thousands of Google+ users had been exposed because the company says they found no evidence of misuse, reports the Wall Street Journal. The Silicon Valley giant feared both regulatory scrutiny and regulatory damage, according to documents reviewed by the Journal and people briefed on the incident.  In response to being busted, Google parent Alphabet is set to announce broad privacy measures which include permanently shutting down all consumer functionality of Google+, a move which "effectively puts the final nail in the coffin of a product that was launched in 2011 to challenge Facebook, and is widely seen as one of Google's biggest failures."  Shares in Alphabet fell as much as 2.1% following the Journal's report: 

The software glitch gave outside developers access to private Google+ profile data between 2015 and March 2018, after Google internal investigators found the problem and fixed it. According to a memo prepared by Google's legal and policy staff and reviewed by the Journal, senior executives worried that disclosing the incident would probably trigger "immediate regulatory interest," while inviting comparisons to Facebook's massive data harvesting scandal. 

On the Net Neutrality National Day of Action, Senate and House Democrats introduced a Congressional Review Act (CRA) resolution to overturn the Federal Communications Commission’s (FCC) partisan decision on net neutrality. At a press conference today, Senators Edward J. Markey (D-Mass.), Congressman Mike Doyle (PA-14), Senate Democratic Leader Chuck Schumer (D-N.Y.), and House Democratic Leader Nancy Pelosi (CA-12) announced introduction of House and Senate resolutions to fully restore the 2015 Open Internet Order. The Senate CRA resolution of disapproval stands at 50 supporters, including Republican Senator Susan Collins (R-Maine.). Rep. Doyle’s resolution in the House of Representatives currently has 150 co-sponsors.   The FCC’s Open Internet Order prohibited internet service providers from blocking, slowing down, or discriminating against content online. Repealing these net neutrality rules could lead to higher prices for consumers, slower internet traffic, and even blocked websites. A recent poll showed that 83 percent of Americans do not approve of the FCC’s action to repeal net neutrality rules.  

A copy of the CRA resolution can be found HERE.   Last week, the FCC’s rule repealing net neutrality was published in the Federal Register, leaving 60 legislative days to seek a vote on the Senate floor on the CRA resolutions. In order to force a vote on the Senate resolution, Senator Markey will submit a discharge petition, which requires a minimum of 30 Senators’ signature. Once the discharge petition is filed, Senator Markey and Senate Democrats will demand a vote on the resolution.

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.

acebook plans to build a data center in Utah on a 490-acre site, the social media company and government officials announced on Wednesday.Continue Reading BelowThe Eagle Mountain, Utah, facility will be 970,000 square feet and located about 15 miles south of a National Security Agency data center in Bluffdale, Utah.

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.

Facebook will pay a record $5bn (£4bn) penalty in the US for “deceiving” users about their ability to keep personal information private, after a year-long investigation into the Cambridge Analytica data breach. The Federal Trade Commission (FTC), the US consumer regulator, also announced a lawsuit against Cambridge Analytica and proposed settlements with the data analysis firm’s former chief executive Alexander Nix and its app developer Aleksandr Kogan. The $5bn fine for Facebook dwarfs the previous record for the largest fine handed down by the FTC for violation of consumers’ privacy, which was a $275m penalty for consumer credit agency Equifax.

The U.S. Department of Justice is investigating whether big technology companies are engaged in anticompetitive behavior, addressing a rising tide of criticism they have become too powerful to the detriment of consumers.

The Justice Department has said it will investigate “whether and how” online platforms in “search, social media, and some retail services online” are engaging in behavior that stifles competition and harms consumers. While the Justice Department did not name any targets in announcing the probe on Tuesday, sources have indicated Alphabet Inc’s Google, social media giant Facebook Inc, online retailer Amazon.com Inc and possibly Apple Inc will likely be reviewed. Here’s what regulators could focus on at the big technology companies:

Larry Page and Sergey Brin, the Stanford graduate students who founded Google over two decades ago, are stepping down from executive roles at Google’s parent company, Alphabet, they announced on Tuesday. Sundar Pichai, Google’s chief executive, will become the chief of both Google and Alphabet.The move is an end of an era for Google. Mr. Page and Mr. Brin have personified the company since its founding and have been two of the technology industry’s most influential figures, on a par with the founders of Apple and Microsoft, Steve Jobs and Bill Gates. Their early work on the Google search engine helped corral an unruly cloud of information on the World Wide Web. And their ideas about how to run an internet company — like offering generous employee perks like free shuttle buses to the office and making rank-and-file employees feel as though they have a stake in the company — became a standard for Silicon Valley.

Comcast met with Federal Communications Commission Chairman Ajit Pai's staff this week in an attempt to prevent states from issuing net neutrality rules. As the FCC prepares to gut its net neutrality rules, broadband providers are worried that states might enact their own laws to prevent ISPs from blocking, throttling, or discriminating against online content.

Comcast Senior VP Frank Buono and a Comcast attorney met with Pai Chief of Staff Matthew Berry and Senior Counsel Nicholas Degani on Monday, the company said in an ex parte filing that describes the meeting. Comcast urged Pai's staff to reverse the FCC's classification of broadband as a Title II common carrier service, a move that would eliminate the legal authority the FCC uses to enforce net neutrality rules. Pai has said he intends to do just that, so Comcast will likely get its wish on that point. But Comcast also wants the FCC to go further by making a declaration that states cannot impose their own regulations on broadband. The filing said: We also emphasized that the Commission's order in this proceeding should include a clear, affirmative ruling that expressly confirms the primacy of federal law with respect to BIAS [Broadband Internet Access Service] as an interstate information service, and that preempts state and local efforts to regulate BIAS either directly or indirectly.

Now Google, at the behest of its friends in Washington, is actively censoring – essentially blocking access to – any websites which seek to warn American workers of the ongoing effort to further attack their incomes, social services, and life conditions by the U.S. central government, and which seek to warn against the impending warfare between U.S.-led Nato and other forces against countries like Iran, Russia, and China, which have in no way threatened the U.S. state or its people

Under its new so-called anti-fake-news program, Google algorithms have in the past few months moved socialist, anti-war, and progressive websites from previously prominent positions in Google searches to positions up to 50 search result pages from the first page, essentially removing them from the search results any searcher will see.    CounterPunch, World Socialist Website, Democracy Now, American Civil liberties Union, Wikileaks are just a few of the websites which have experienced severe reductions in their returns from Google searches.  World Socialist Website, to cite just one example, has experienced a 67% drop in its returns from Google since the new policy was announced. This conversion of Google into a Censorship engine is not a trivial development.   Google searches are currently a primary means by which workers and other members of the public seek information about their lives and their world.  Every effort must be made to combat this serious infringement on the basic rights of freedom of speech and freedom of press.

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

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

A New York-led probe into allegations that Facebook Inc put consumer data at risk and pushed up advertising rates has expanded to include attorneys general from 47 U.S. states and territories, New York Attorney General Letitia James said in a statement on Tuesday.

The investigation of Facebook announced in September had included Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia. It now includes most U.S. states as well as the U.S. territory of Guam.

Some states, particularly New York and Nebraska, have raised concerns that Facebook and other big tech companies engage in anti-competitive practices, expose consumer data to potential data theft and push up advertising prices.

A Chinese internet technology company has announced a plan to provide free satellite internet worldwide by 2026, joining companies like SpaceX, Facebook and Google in the mission to run a global internet service.

Shanghai-based company LinkSure Network, which says its mission is to bridge the world's digital inequalities, unveiled on Tuesday the first satellite in their ambitious plan to ensure that everyone in the world can access the internet free of charge.The plan — dubbed the "LinkSure Swarm Constellation System" — would see 272 satellites set at different orbits and heights in order to span the entire globe.The first satellite, LinkSure No 1, is set to launch in north-west China in 2019 from the Jiuquan Satellite Launch Centre as part of the payload on board one of China's Long March rockets.Ten further satellites will be sent into orbit by 2020.

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

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

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

The Justice Department plans to bring an antitrust case against Google as soon as this month, after Attorney General William P. Barr overruled career lawyers who said they needed more time to build a strong case against one of the world’s wealthiest, most formidable technology companies, according to five people briefed on internal department conversations.Justice Department officials told lawyers involved in the antitrust inquiry into Alphabet, the parent company of Google and YouTube, to wrap up their work by the end of September, according to three of the people. Most of the 40-odd lawyers who had been working on the investigation opposed the deadline. Some said they would not sign the complaint, and several of them left the case this summer.Some argued this summer in a memo that ran hundreds of pages that they could bring a strong case but needed more time, according to people who described the document. Disagreement persisted among the team over how broad the complaint should be and what Google could do to resolve the problems the government uncovered. The lawyers viewed the deadline as arbitrary.While there were disagreements about tactics, career lawyers also expressed concerns that Mr. Barr wanted to announce the case in September to take credit for action against a powerful tech company under the Trump administration.

The European Union unveiled landmark legislation on Tuesday that lays out strict rules for tech giants to do business in the bloc. The draft legislation, dubbed the Digital Services Act (DSA) and the Digital Markets Act (DMA), outlines specific regulations that seek to limit the power of global internet firms on the European market. Companies including Google, Apple, Amazon, Facebook and others could face hefty penalties for violating the rules. EU antitrust czar Margrethe Vestager and EU digital chief Thierry Breton presented the draft on Tuesday, after the content of the new rules was leaked to the media on Monday.

What's in the draft laws? The dual legislation sets out a list of do's, don'ts and penalties for internet giants: Companies with over 45 million EU users would be designated as digital "gatekeepers" — making them subject to stricter regulations. Firms could be fined up to 10% of their annual turnover for violating competition rules. The could also be required to sell one of their businesses or parts of it (including rights or brands). Platforms that refuse to comply and "endanger people's life and safety" could have their service temporarily suspended "as a last resort." Companies would need to inform the EU ahead of any planned mergers or acquisitions. Certain kinds of data must be shared with regulators and rivals. Companies favoring their own services could be outlawed. Platforms would be more responsible for illegal, disturbing or misleading content.

Following the announcement on Tuesday, US internet giant Google criticized the draft legislation, saying it appeared to target specific firms.  "We will carefully study the proposals made by the European Commission over the next few days. However, we are concerned that they seem to specifically target a handful of companies," said Karan Bhatia, the vice president of government affairs and public affairs at Google. Facebook appeared to offer a more conciliatory tone, saying the legislation was "on the right track."

everal technology companies including Snap Inc, Pinterest, Dropbox and eBay announced a coalition on Tuesday that would advocate the benefits of Section 230, a decades-old law protecting internet firms.Section 230 of the Communications Decency Act protects tech companies from liability over content posted by users, and has been under attack from U.S. President Donald Trump and Republican lawmakers. They have criticized internet platforms’ content moderation decisions and accused them of stifling conservative voices.

Trump said earlier this month that he would veto the $740 billion National Defense Authorization Act unless it includes a measure eliminating the law.

The coalition, Internet Works, said on Tuesday it aims to ensure that policymakers understand “the potential unintended consequences of blunt changes to the law”, including limiting effective content moderation efforts."This coalition brings new voices and diverse perspectives to Washington's current Section 230 debate, which too often focuses on the largest internet platforms," it said here.

As the DoJ and FTC pursue civil antitrust litigation against some of America's largest tech firms, a House Committee has approved legislation to curb the market dominance of many of these same firms, including Google-owner Alphabet and Facebook. However, according to a report from WSJ, the tech firms targeted by the legislation are ramping up their lobbying efforts, precipitating a pitched battle over the legislation in the Senate.At the core of the six-bill raft of legislation is a measure to bar big tech firms from favoring their own products on their platforms. It was approved by the House committee early Thursday by a vote of 24 to 20.The NYT reported that Apple and other tech giants engaged in aggressive lobbying against the six-bill package, with Apple CEO Tim Cook going so far as to call Speaker Nancy Pelosi and other top lawmakers to warn them against supporting the legislation. Per the NYT, the calls from Cook were "part of a forceful and wide-ranging pushback by the tech industry since the proposals were announced this month. Executives, lobbyists, and more than a dozen think tanks and advocacy groups paid by tech companies have swarmed Capitol offices, called and emailed lawmakers and their staff members, and written letters arguing there will be dire consequences for the industry and the country if the ideas become law."

Mirroring the outcome of several EU anti-trust investigations, the legislation, known as the "American Choice and Innovation Online Act," the legislation would prohibit the owners of big platforms (like Amazon's online marketplace) from creating disadvantages for goods and services provided by competitors.