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As if further proof were needed Orwell’s dystopia is now upon us, China has now gamified obedience to the State. Though that is every bit as creepily terrifying as it sounds, citizens may still choose whether or not they wish to opt-in — that is, until the program becomes compulsory in 2020. “Going under the innocuous name of ‘Sesame Credit,’ China has created a score for how good a citizen you are,” explains Extra Credits’ video about the program. “The owners of China’s largest social networks have partnered with the government to create something akin to the U.S. credit score — but, instead of measuring how regularly you pay your bills, it measures how obediently you follow the party line.”

In the works for years, China’s ‘social credit system’ aims to create a docile, compliant citizenry who are fiscally and morally responsible by employing a game-like format to create self-imposed, group social control. In other words, China gamified peer pressure to control its citizenry; and, though the scheme hasn’t been fully implemented yet, it’s already working — insidiously well.

The system is run by two companies, Alibaba and Tencent, which run all the social networks in China and therefore have access to a vast amount of data about people’s social ties and activities and what they say. In addition to measuring your ability to pay, as in the United States, the scores serve as a measure of political compliance. Among the things that will hurt a citizen’s score are posting political opinions without prior permission, or posting information that the regime does not like, such as about the Tiananmen Square massacre that the government carried out to hold on to power, or the Shanghai stock market collapse. It will hurt your score not only if you do these things, but if any of your friends do them.” And, in what appears likely the goal of the entire program, added, “Imagine the social pressure against disobedience or dissent that this will create.”

On the 21st floor of a high-rise hotel in Cleveland, in a room full of political operatives, Microsoft’s Research Division was advertising a technology that could read each facial expression in a massive crowd, analyze the emotions, and report back in real time. “You could use this at a Trump rally,” a sales representative told me. At both the Republican and Democratic conventions, Microsoft sponsored event spaces for the news outlet Politico. Politico, in turn, hosted a series of Microsoft-sponsored discussions about the use of data technology in political campaigns. And throughout Politico’s spaces in both Philadelphia and Cleveland, Microsoft advertised an array of products from “Microsoft Cognitive Services,” its artificial intelligence and cloud computing division. At one exhibit, titled “Realtime Crowd Insights,” a small camera scanned the room, while a monitor displayed the captured image. Every five seconds, a new image would appear with data annotated for each face — an assigned serial number, gender, estimated age, and any emotions detected in the facial expression. When I approached, the machine labeled me “b2ff” and correctly identified me as a 23-year-old male.

“Realtime Crowd Insights” is an Application Programming Interface (API), or a software tool that connects web applications to Microsoft’s cloud computing services. Through Microsoft’s emotional analysis API — a component of Realtime Crowd Insights — applications send an image to Microsoft’s servers. Microsoft’s servers then analyze the faces and return emotional profiles for each one. In a November blog post, Microsoft said that the emotional analysis could detect “anger, contempt, fear, disgust, happiness, neutral, sadness or surprise.” Microsoft’s sales representatives told me that political campaigns could use the technology to measure the emotional impact of different talking points — and political scientists could use it to study crowd response at rallies.

Facial recognition technology — the identification of faces by name — is already widely used in secret by law enforcement, sports stadiums, retail stores, and even churches, despite being of questionable legality. As early as 2002, facial recognition technology was used at the Super Bowl to cross-reference the 100,000 attendees to a database of the faces of known criminals. The technology is controversial enough that in 2013, Google tried to ban the use of facial recognition apps in its Google glass system. But “Realtime Crowd Insights” is not true facial recognition — it could not identify me by name, only as “b2ff.” It did, however, store enough data on each face that it could continuously identify it with the same serial number, even hours later. The display demonstrated that capability by distinguishing between the number of total faces it had seen, and the number of unique serial numbers. Photo: Alex Emmons

The directors of the CIA, FBI, NSA and several other intelligence agencies express their distrust of Apple-rival Huawei and fellow Chinese telecom company ZTE. During a hearing, the intelligence chiefs commended American telecom companies for their measured resistance to the Chinese companies. Huawei has been trying to enter the U.S. market, first through a partnership with AT&T that was ultimately called off.

The European Commission, on January 24, published its guidance aimed to facilitate a direct and smooth application of the European Union’s new data protection rules across the EU as of 25 May. The Commission also launches a new online tool dedicated to SMEs.

With just over 100 days left before the application of the new law, the guidance outlines what the European Commission, national data protection authorities and national administrations, according to the Commission, should still do to bring the preparation to a successful completion. The Commission notes that while the new regulation provides for a single set of rules directly applicable in all Member States, it will still require significant adjustments in certain aspects, like amending existing laws by EU governments or setting up the European Data Protection Board by data protection authorities. The Commission states that the guidance recalls the main innovations, opportunities opened up by the new rules, takes stock of the preparatory work already undertaken and outlines the work still ahead of the European Commission, national data protection authorities and national administrations. Andrus Ansip, European Commission Vice-President for the Digital Single Market, said: “Our digital future can only be built on trust. Everyone’s privacy has to be protected. Strengthened EU data protection rules will become a reality on 25 May. It is a major step forward and we are committed to making it a success for everyone.” Vĕra Jourová, Commissioner for Justice, Consumers and Gender Equality, added:” In today’s world, the way we handle data will determine to a large extent our economic future and personal safety. We need modern rules to respond to new risks, so we call on EU governments, authorities and businesses to use the remaining time efficiently and fulfil their roles in the preparations for the big day.”

The guidance recalls the main elements of the new data protection rules: One set of rules across the continent, guaranteeing legal certainty for businesses and the same data protection level across the EU for citizens. Same rules apply to all companies offering services in the EU, even if these companies are based outside the EU. Stronger and new rights for citizens: the right to information, access and the right to be forgotten are strengthened. A new right to data portability allows citizens to move their data from one company to the other. This will give companies new business opportunities. Stronger protection against data breaches: a company experiencing a data breach, which put individuals at risk, has to notify the data protection authority within 72 hours. Rules with teeth and deterrent fines: all data protection authorities will have the power to impose fines for up to EUR 20 million or, in the case of a company, 4% of the worldwide annual turnover.

Four of the country's largest cellular providers have been selling your real-time location information, allowing a Texas-based prison technology company, Securus, to track any phone "within seconds," without a warrant.  The system uses data sold by AT&T, Sprint, T-Mobile, Verizon and other carriers - who provide it through an intermediary called LocationSmart.  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. -New York Times Last week Sen. Ron Wyden (D-OR) sent a letter to the FCC demanding an investigation into Securus, after the New York Times revealed that former Mississippi County sheriff Cory Hutcheson used the service almost a dozen time to track the phones of other officers, and even targeted a judge. 

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."

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.

Huawei Technologies, the world’s largest telecommunications equipment supplier, is set to launch its HongMeng operating system (OS) as a potential alternative to Google's Android OS, on August 9 at Huawei's Developer Conference, industry insiders told the Global Times Wednesday. According to media reports, the user experience (UX) design features a brand new ringtone and notification panel, a cleaner interface for the camera, more animation and faster speed. Users can also add widgets and personalize the locked screen. Citing industry experts (most likely of Chinese origin), the Global Times reported that "it is possible for Huawei to build a sustainable smartphone ecosystem on the HongMeng OS and reshape the current market dominated by Android and Apple's iOS", although the new system is primarily designed for industrial automation and applications in the Internet of Things (IoT). "Given the design features of the HongMeng OS, it can be a game changer in IoT-related areas, such as driverless cars and smart homes," Fu Liang, a Beijing-based independent industry analyst, told the Global Times. According to Huawei's website, the HongMeng OS is built with a processing latency of less than 5 milliseconds, which is especially required in circumstances involving IoT applications that often need to transfer large amount of data simultaneously.

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.

The escalating trade war is starting to damage Apple's brand in China, according to a new survey of Chinese consumer trends.  The brand consultancy Prophet surveyed 13,500 Chinese consumers and discovered that a wave of nationalism is sweeping across the country, deterring many from using US brands.  Apple plunged in the company's latest brand-relevance index, published Wednesday, which asked respondents which brands they liked the most. Apple crashed to No.24 in the index, falling from No. 11 last year. Before the trade war began, Apple was No. 5. Rivals like Huawei soared in the index to the No. 2 spot, just behind Chinese payment service Alipay.

Wedbush analyst Daniel Ives called the decline of iPhone sales in China a "doomsday type" like decline. Ives said the fall was an "unprecedented" drop and was "not surprising given the essential lockdown that most of China saw" in February. Wedbush expects Chinese demand to come back online in the second half of the year. * * * We've explained that economic paralysis in China started in early February and continues to this day. Alternative data first showed us the incoming economic crash developing in early February, only to be confirmed weeks later. Twin shocks plague the Chinese economy, which is a supply shock with manufacturers operating at less than full capacity, along with a demand shock, where consumers have been confined to their homes in forced quarantine, unable to spend.  So, on Monday morning, when new data from the China Academy of Information and Communications Technology (CAICT) reveals Apple smartphone sales in China were halved in February, this really shouldn't surprise ZeroHedge readers, considering they've been well informed about what would happen next. 

And it wasn't just Apple with plunging activity, all mobile phone brands operating in China saw shipments halved over the month.  CAICT said 6.34 million devices were shipped last month, down 54.7% from 14 million in the same month the previous year. This was the lowest level of February shipments since 2012, when the CAICT data first became available.  Android brands, including Huawei and Xiaomi, accounted for most of the drop, collectively saw shipments at 5.85 million units for the month, compared to 12.72 million units last year. Apple shipped 494,000 last month, down from 1.27 million in February 2019.

One week after we reported that Facebook's Libra stablecoin project, Libra, was imploding, as online payment giant PayPal quite the Libra network, we can now set the time of death to today - that's when first eBay, then Stripe and finally Mastercard all abandoned Mark Zuckerberg's pet "cryptocurrency" (which was anything but) project. As the FT reports, Ebay and Stripe became the second and third major companies in a week to drop out of Facebook’s planned cryptocurrency, following sustained political pressure and just days before the project’s backers are due to meet for their first board meeting, which may soon be empty.

The state attorneys in more than a dozen states are preparing to begin an antitrust investigation of the tech giants, The Wall Street Journal and The New York Times reported Monday, putting the spotlight on an industry that is already facing federal scrutiny.The bipartisan group of attorneys from as many as 20 states is expected to formally launch a probe as soon as next month to assess whether tech companies are using their dominant market position to hurt competition, the WSJ reported.If true, the move follows the Department of Justice, which last month announced its own antitrust review of how online platforms scaled to their gigantic sizes and whether they are using their power to curb competition and stifle innovation. Earlier this year, the Federal Trade Commission formed a task force to monitor competition among tech platforms.

Elon Musk and his team of boffins are exploring ways in which they can connect a computer interface to the mind. The South African-born billionaire claims to have already trialled the revolutionary device on a monkey which was able to control the computer with its brain. Mr Musk said at a presentation on Tuesday: “A monkey has been able to control the computer with his brain.”

NeuraLink describes the device as “sewing machine-like”. The system implants ultra-thin threads deep into the brain’s nervous system.The company has applied to US regulators in the hopes of beginning trials on humans next year.Primarily, the firm states that initially it wants to help people with severe neurological conditions, but as with all of his companies, Mr Musk is aiming for more and sees humanity’s future as having “superhuman cognition”.The device in question, which is nameless so far, will see the tiny thread fitted with 3,000 electrodes which can monitor the activity of 1,000 neurons.

Mr Musk hopes the product will be on the market within four years.

House lawmakers who spent the last 16 months investigating the practices of the world’s largest technology companies said on Tuesday that Amazon, Apple, Facebook and Google had exercised and abused their monopoly power and called for the most sweeping changes to antitrust laws in half a century.In a 449-page report that was presented by the House Judiciary Committee’s Democratic leadership, lawmakers said the four companies had turned from “scrappy” start-ups into “the kinds of monopolies we last saw in the era of oil barons and railroad tycoons.” The lawmakers said the companies had abused their dominant positions, setting and often dictating prices and rules for commerce, search, advertising, social networking and publishing.The House ReportRead the full report here »

To amend the inequities, the lawmakers recommended restoring competition by effectively breaking up the companies, emboldening the agencies that police market concentration and throwing up hurdles for the companies to acquire start-ups. They also proposed reforming antitrust laws, in the biggest potential shift since the Hart-Scott-Rodino Act of 1976 created stronger reviews of big mergers.

Google has been hit with a €500m (£427m) fine by France's competition authority for failing to negotiate "in good faith" with news organisations over the use of their content.The authority accused Google of not taking an order to do so seriously.Google told the BBC the decision "ignores our efforts to reach an agreement".The fine is the latest skirmish in a global copyright battle between tech firms and news organisations.Last year, the French competition authority ordered that Google must negotiate deals with news organisations to show extracts of articles in search results, news and other services.Google was fined because, in the authority's view, it failed to do this. In 2019, France became the first EU country to put a new Digital Copyright Directive into law. The law governed so-called "neighbouring rights" which are designed to compensate publishers and news agencies for the use of their material.As a result, Google decided it would not show content from EU publishers in France, on services like search and news, unless publishers agreed to let them do so free of charge.News organisations felt this was an abuse of Google's market power, and two organisations representing press publishers and Agence France-Presse (AFP) complained to the competition authority.

Three states and the District of Columbia allege that the tech giant misled consumers by continuing to track those who had changed their privacy settings to prevent data collection.

Google is also fighting an antitrust lawsuit led by Texas in which states have accused the company of obtaining and abusing a monopoly over the systems that allow publishers to auction off ad space to marketers. On Friday, Google asked a federal court to dismiss the lawsuit.The lawsuits add to a mounting offensive by regulators to curtail the power and business practices of Silicon Valley giants like Google, Facebook, Amazon and Apple. State and federal regulators have filed dozens of antitrust, consumer protection, privacy and trade lawsuits in an attempt to curb the business models or break up the companies. A Senate committee last week advanced potentially landmark antitrust legislation that tries to weaken the dominance of the internet giants.

Federal safety regulators filed a lawsuit against Amazon on Wednesday that accuses the retail giant of refusing to recognize regulators’ authority to force the company to recall defective and unsafe products, setting up a fight over how much responsibility Amazon should take for the products it sells on its website.Support our journalism. Subscribe today.arrow-rightThe action by the Consumer Product Safety Commission comes after months of behind-the-scenes negotiations between regulators and Amazon as the agency tried to persuade the company to follow the CPSC’s rules for getting dangerous products off the market, according to a senior agency official who spoke on the condition of anonymity to comment on internal discussions.The official said Amazon officials refused to acknowledge that the CPSC has the authority to compel the company to remove unsafe products.A lawsuit was viewed as a last resort, the official added.