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Paul Merrell

US spy lab hopes to geotag every outdoor photo on social media | Ars Technica - 0 views

  • Imagine if someone could scan every image on Facebook, Twitter, and Instagram, then instantly determine where each was taken. The ability to combine this location data with information about who appears in those photos—and any social media contacts tied to them—would make it possible for government agencies to quickly track terrorist groups posting propaganda photos. (And, really, just about anyone else.) That's precisely the goal of Finder, a research program of the Intelligence Advanced Research Projects Agency (IARPA), the Office of the Director of National Intelligence's dedicated research organization. For many photos taken with smartphones (and with some consumer cameras), geolocation information is saved with the image by default. The location is stored in the Exif (Exchangable Image File Format) data of the photo itself unless geolocation services are turned off. If you have used Apple's iCloud photo store or Google Photos, you've probably created a rich map of your pattern of life through geotagged metadata. However, this location data is pruned off for privacy reasons when images are uploaded to some social media services, and privacy-conscious photographers (particularly those concerned about potential drone strikes) will purposely disable geotagging on their devices and social media accounts.
Gonzalo San Gil, PhD.

Porn Piracy Cash Threats to Hit Virgin Media Customers | TorrentFreak - 2 views

    • Gonzalo San Gil, PhD.
       
      # ! all that is got allowing these kind of behavior is # ! leading to a complete disrespect for Intellectual # ! property and its enforcement itself...
Paul Merrell

The punk rock internet - how DIY ​​rebels ​are working to ​replace the tech giants | Technology | The Guardian - 0 views

  • What they are doing could be seen as the online world’s equivalent of punk rock: a scattered revolt against an industry that many now think has grown greedy, intrusive and arrogant – as well as governments whose surveillance programmes have fuelled the same anxieties. As concerns grow about an online realm dominated by a few huge corporations, everyone involved shares one common goal: a comprehensively decentralised internet.
  • In the last few months, they have started working with people in the Belgian city of Ghent – or, in Flemish, Gent – where the authorities own their own internet domain, complete with .gent web addresses. Using the blueprint of Heartbeat, they want to create a new kind of internet they call the indienet – in which people control their data, are not tracked and each own an equal space online. This would be a radical alternative to what we have now: giant “supernodes” that have made a few men in northern California unimaginable amounts of money thanks to the ocean of lucrative personal information billions of people hand over in exchange for their services.
  • His alternative is what he calls the Safe network: the acronym stands for “Safe Access for Everyone”. In this model, rather than being stored on distant servers, people’s data – files, documents, social-media interactions – will be broken into fragments, encrypted and scattered around other people’s computers and smartphones, meaning that hacking and data theft will become impossible. Thanks to a system of self-authentication in which a Safe user’s encrypted information would only be put back together and unlocked on their own devices, there will be no centrally held passwords. No one will leave data trails, so there will be nothing for big online companies to harvest. The financial lubricant, Irvine says, will be a cryptocurrency called Safecoin: users will pay to store data on the network, and also be rewarded for storing other people’s (encrypted) information on their devices. Software developers, meanwhile, will be rewarded with Safecoin according to the popularity of their apps. There is a community of around 7,000 interested people already working on services that will work on the Safe network, including alternatives to platforms such as Facebook and YouTube.
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  • Once MaidSafe is up and running, there will be very little any government or authority can do about it: “We can’t stop the network if we start it. If anyone turned round and said: ‘You need to stop that,’ we couldn’t. We’d have to go round to people’s houses and switch off their computers. That’s part of the whole thing. The network is like a cyber-brain; almost a lifeform in itself. And once you start it, that’s it.” Before my trip to Scotland, I tell him, I spent whole futile days signing up to some of the decentralised social networks that already exist – Steemit, Diaspora, Mastadon – and trying to approximate the kind of experience I can easily get on, say, Twitter or Facebook.
  • And herein lie two potential breakthroughs. One, according to some cryptocurrency enthusiasts, is a means of securing and protecting people’s identities that doesn’t rely on remotely stored passwords. The other is a hope that we can leave behind intermediaries such as Uber and eBay, and allow buyers and sellers to deal directly with each other. Blockstack, a startup based in New York, aims to bring blockchain technology to the masses. Like MaidSafe, its creators aim to build a new internet, and a 13,000-strong crowd of developers are already working on apps that either run on the platform Blockstack has created, or use its features. OpenBazaar is an eBay-esque service, up and running since November last year, which promises “the world’s most private, secure, and liberating online marketplace”. Casa aims to be an decentralised alternative to Airbnb; Guild is a would-be blogging service that bigs up its libertarian ethos and boasts that its founders will have “no power to remove blogs they don’t approve of or agree with”.
  • An initial version of Blockstack is already up and running. Even if data is stored on conventional drives, servers and clouds, thanks to its blockchain-based “private key” system each Blockstack user controls the kind of personal information we currently blithely hand over to Big Tech, and has the unique power to unlock it. “That’s something that’s extremely powerful – and not just because you know your data is more secure because you’re not giving it to a company,” he says. “A hacker would have to hack a million people if they wanted access to their data.”
Paul Merrell

#Vault7: CIA's secret cyberweapon can infiltrate world's most secure networks - RT Viral - 1 views

  • WikiLeaks’ latest release in its Vault7 series details how the CIA’s alleged ‘Brutal Kangaroo’ program is being used to penetrate the most secure networks in the world.
  • Brutal Kangaroo, a tool suite for Microsoft Windows, targets closed air gapped networks by using thumb drives, according to WikiLeaks.Air gapping is a security measure employed on one or more computers to ensure that a secure computer network is physically isolated from unsecured networks.
  • These networks are used by financial institutions, military and intelligence agencies, the nuclear power industry, as well as even some advanced news networks to protect sources, according to La Repubblica journalist Stefania Maurizi.READ MORE: ‘CIA’s Cherry Bomb’: WikiLeaks #Vault7 reveals wireless network targetsThese newly released documents show how closed networks not connected to the internet can be compromised by this malware. However, the tool only works on machines with a Windows operating system.Firstly, an internet-connected computer within the targeted organization is infected with the malware. When a user inserts a USB stick into this computer, the thumbdrive itself is infected with a separate malware.Once this is inserted into a single computer on the air gapped network the infection jumps – like a kangaroo – across the entire system, enabling sabotage and data theft.RELEASE: CIA air-gap jumping virus 'Emotional Simian' https://t.co/KkBnXhNtGCpic.twitter.com/w6MZFGushc— WikiLeaks (@wikileaks) June 22, 2017If multiple computers on the closed network are under CIA control, they “form a covert network to coordinate tasks and data exchange,” according to Wikileaks.Data can be returned to the CIA once again, although this does depend on someone connecting the USB used on the closed network computer to an online device.
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  • While it may not appear to be the most efficient CIA project, it allows the intelligence agency to infiltrate otherwise unreachable networks.This method is comparable to the Stuxnet virus, a cyberweapon purportedly built by the US and Israel. Stuxnet is thought to have caused substantial damage to Iran's nuclear program in 2010.The CIA allegedly began developing the Brutal Kangaroo program in 2012 – two years after Stuxnet incident in Iran.The most recent of these files were to intended to remain secret until at least 2035. The documents released by WikiLeaks are dated February 2016, indicating that the scheme was likely being used until that point.
Paul Merrell

FCC Turns Itself into a Deregulatory Agency - WhoWhatWhy - 2 views

  • Since taking office, President Donald Trump has wasted no time in proposing rollbacks to Obama-era federal regulations. So, it should come as no surprise that the Federal Communications Commission (FCC) voted last month to propose changes to current regulations on Internet service providers. Spearheaded by Ajit Pai — the Trump-appointed FCC chairman and former lawyer for Verizon — the 2-1 vote is the first step in dismantling the Open Internet Order. The lone FCC Democrat, Mignon Clyburn, was overruled by Pai and fellow commissioner Michael O’Reilly. The 2015 order classified broadband internet as a utility under Title II of the Communications Act of 1934. Opponents of the current state of net neutrality argue that the rules are archaic and place unnecessary — even harmful — restrictions on internet service providers (ISPs), leading to lack of innovation and investment. While it’s true that policies conceived in the 1930s could hardly anticipate the complexities of the modern Internet, a complete rollback of Title II protections would leave ISPs free to favor their own services and whichever company pays for upgraded service. Considering relaxed FEC rules on media ownership and lack of antitrust enforcement, some could argue that a rollback of net neutrality is even more toxic to innovation and affordable pricing. That is, fast lanes could be created for companies with deeper pockets, effectively giving them an advantage over companies and individuals who can’t pay extra. This approach effectively penalizes small businesses, nonprofits and innovative start-ups. Today’s Internet is so vast and so pervasive that it’s hard to grasp the impact that an abandonment of net neutrality would have on every aspect of our culture.
  • While the FCC’s proposed change will touch most Americans, net neutrality remains a mystifying concept to non-techies. To help our readers better understand the issue, we have compiled some videos that explain net neutrality and its importance. The FCC will be accepting comments from the public on their website until August 16, 2017.
Paul Merrell

Tripling Its Collection, NSA Sucked Up Over 530 Million US Phone Records in 2017 - 0 views

  • 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."
Paul Merrell

Superiority in Cyberspace Will Remain Elusive - Federation Of American Scientists - 0 views

  • Military planners should not anticipate that the United States will ever dominate cyberspace, the Joint Chiefs of Staff said in a new doctrinal publication. The kind of supremacy that might be achievable in other domains is not a realistic option in cyber operations. “Permanent global cyberspace superiority is not possible due to the complexity of cyberspace,” the DoD publication said. In fact, “Even local superiority may be impractical due to the way IT [information technology] is implemented; the fact US and other national governments do not directly control large, privately owned portions of cyberspace; the broad array of state and non-state actors; the low cost of entry; and the rapid and unpredictable proliferation of technology.” Nevertheless, the military has to make do under all circumstances. “Commanders should be prepared to conduct operations under degraded conditions in cyberspace.” This sober assessment appeared in a new edition of Joint Publication 3-12, Cyberspace Operations, dated June 8, 2018. (The 100-page document updates and replaces a 70-page version from 2013.) The updated DoD doctrine presents a cyber concept of operations, describes the organization of cyber forces, outlines areas of responsibility, and defines limits on military action in cyberspace, including legal limits.
  • The new cyber doctrine reiterates the importance and the difficulty of properly attributing cyber attacks against the US to their source. “The ability to hide the sponsor and/or the threat behind a particular malicious effect in cyberspace makes it difficult to determine how, when, and where to respond,” the document said. “The design of the Internet lends itself to anonymity and, combined with applications intended to hide the identity of users, attribution will continue to be a challenge for the foreseeable future.”
Paul Merrell

How a "location API" allows cops to figure out where we all are in real time | Ars Technica - 0 views

  • The digital privacy world was rocked late Thursday evening when The New York Times reported on Securus, a prison telecom company that has a service enabling law enforcement officers to locate most American cell phones within seconds. The company does this via a basic Web interface leveraging a location API—creating a way to effectively access a massive real-time database of cell-site records. Securus’ location ability relies on other data brokers and location aggregators that obtain that information directly from mobile providers, usually for the purposes of providing some commercial service like an opt-in product discount triggered by being near a certain location. ("You’re near a Carl’s Jr.! Stop in now for a free order of fries with purchase!") The Texas-based Securus reportedly gets its data from 3CInteractive, which in turn buys data from LocationSmart. Ars reached 3CInteractive's general counsel, Scott Elk, who referred us to a spokesperson. The spokesperson did not immediately respond to our query. But currently, anyone can get a sense of the power of a location API by trying out a demo from LocationSmart itself. Currently, the Supreme Court is set to rule on the case of Carpenter v. United States, which asks whether police can obtain more than 120 days' worth of cell-site location information of a criminal suspect without a warrant. In that case, as is common in many investigations, law enforcement presented a cell provider with a court order to obtain such historical data. But the ability to obtain real-time location data that Securus reportedly offers skips that entire process, and it's potentially far more invasive. Securus’ location service as used by law enforcement is also currently being scrutinized. The service is at the heart of an ongoing federal prosecution of a former Missouri sheriff’s deputy who allegedly used it at least 11 times against a judge and other law enforcement officers. On Friday, Sen. Ron Wyden (D-Ore.) publicly released his formal letters to AT&T and also to the Federal Communications Commission demanding detailed answers regarding these Securus revelations.
Paul Merrell

Facebook's Cryptocurrency: Stop It Before It Starts - Lawfare - 0 views

  • 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.
Paul Merrell

NSA Based Malware Used In Massive Cyber-Attack Hitting 74 Countries - 0 views

  • 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.
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  • A Twitter account with the handle @HackerFantastic, the co-founder of the cyber security company Hacker House, tweeted that the firm had “warned the NHS with Sky news about vulnerabilities they had last year, this was inevitable and bound to happen at some stage.” “In light of today’s attack, Congress needs to be asking @NSAgov if it knows of any other vulnerabilities in software used in our hospitals,” Snowden tweeted. “If @NSAGov had privately disclosed the flaw used to attack hospitals when they *found* it, not when they lost it, this may not have happened.” Disclosing the vulnerability when it was found would have given hospitals years, not months, to update their systems and prepare for an attack, he added.
  • witter user @MalwareTechBlog added, “Something like this is incredibly significant, we’ve not seen P2P spreading on PC via exploits at this scale in nearly a decade.” Patrick Toomey, a staff attorney with the American Civil Liberties Union’s (ACLU) National Security Project, said, “It would be shocking if the NSA knew about this vulnerability but failed to disclose it to Microsoft until after it was stolen.” “These attacks underscore the fact that vulnerabilities will be exploited not just by our security agencies, but by hackers and criminals around the world,” Toomey said. “It is past time for Congress to enhance cybersecurity by passing a law that requires the government to disclose vulnerabilities to companies in a timely manner. Patching security holes immediately, not stockpiling them, is the best way to make everyone’s digital life safer.”
Paul Merrell

India begins to embrace digital privacy. - 0 views

  • India is the world’s largest democracy and is home to 13.5 percent of the world’s internet users. So the Indian Supreme Court’s August ruling that privacy is a fundamental, constitutional right for all of the country’s 1.32 billion citizens was momentous. But now, close to three months later, it’s still unclear exactly how the decision will be implemented. Will it change everything for internet users? Or will the status quo remain? The most immediate consequence of the ruling is that tech companies such as Facebook, Twitter, Google, and Alibaba will be required to rein in their collection, utilization, and sharing of Indian user data. But the changes could go well beyond technology. If implemented properly, the decision could affect national politics, business, free speech, and society. It could encourage the country to continue to make large strides toward increased corporate and governmental transparency, stronger consumer confidence, and the establishment and growth of the Indian “individual” as opposed to the Indian collective identity. But that’s a pretty big if. Advertisement The privacy debate in India was in many ways sparked by a controversy that has shaken up the landscape of national politics for several months. It began in 2016 as a debate around a social security program that requires participating citizens to obtain biometric, or Aadhaar, cards. Each card has a unique 12-digit number and records an individual’s fingerprints and irises in order to confirm his or her identity. The program was devised to increase the ease with which citizens could receive social benefits and avoid instances of fraud. Over time, Aadhaar cards have become mandatory for integral tasks such as opening bank accounts, buying and selling property, and filing tax returns, much to the chagrin of citizens who are uncomfortable about handing over their personal data. Before the ruling, India had weak privacy protections in place, enabling unchecked data collection on citizens by private companies and the government. Over the past year, a number of large-scale data leaks and breaches that have impacted major Indian corporations, as well as the Aadhaar program itself, have prompted users to start asking questions about the security and uses of their personal data.
  • n order to bolster the ruling the government will also be introducing a set of data protection laws that are to be developed by a committee led by retired Supreme Court judge B.N. Srikrishna. The committee will study the data protection landscape, develop a draft Data Protection Bill, and identify how, and whether, the Aadhaar Act should be amended based on the privacy ruling.
  • Should the data protection laws be implemented in an enforceable manner, the ruling will significantly impact the business landscape in India. Since the election of Prime Minister Narendra Modi in May 2014, the government has made fostering and expanding the technology and startup sector a top priority. The startup scene has grown, giving rise to several promising e-commerce companies, but in 2014, only 12 percent of India’s internet users were online consumers. If the new data protection laws are truly impactful, companies will have to accept responsibility for collecting, utilizing, and protecting user data safely and fairly. Users would also have a stronger form of redress when their newly recognized rights are violated, which could transform how they engage with technology. This has the potential to not only increase consumer confidence but revitalize the Indian business sector, as it makes it more amenable and friendly to outside investors, users, and collaborators.
Paul Merrell

Staggering Variety of Clandestine Trackers Found In Popular Android Apps - 0 views

  • Researchers at Yale Privacy Lab and French nonprofit Exodus Privacy have documented the proliferation of tracking software on smartphones, finding that weather, flashlight, rideshare, and dating apps, among others, are infested with dozens of different types of trackers collecting vast amounts of information to better target advertising. Exodus security researchers identified 44 trackers in more than 300 apps for Google’s Android smartphone operating system. The apps, collectively, have been downloaded billions of times. Yale Privacy Lab, within the university’s law school, is working to replicate the Exodus findings and has already released reports on 25 of the trackers. Yale Privacy Lab researchers have only been able to analyze Android apps, but believe many of the trackers also exist on iOS, since companies often distribute for both platforms. To find trackers, the Exodus researchers built a custom auditing platform for Android apps, which searched through the apps for digital “signatures” distilled from known trackers. A signature might be a tell-tale set of keywords or string of bytes found in an app file, or a mathematically-derived “hash” summary of the file itself. The findings underscore the pervasiveness of tracking despite a permissions system on Android that supposedly puts users in control of their own data. They also highlight how a large and varied set of firms are working to enable tracking.
Paul Merrell

Keller Lenkner & Quinn Emanuel File Antitrust Class-Action Lawsuit Against Facebook - 1 views

  • National plaintiffs’ law firm Keller Lenkner LLC and global business litigation firm Quinn Emanuel Urquhart & Sullivan, LLP filed a class-action lawsuit against Facebook, Inc. alleging violations of federal antitrust laws and California law on behalf of Facebook users.ADVERTISEMENTFiled in the U.S. District Court for the Northern District of California, the complaint alleges that Facebook obtained and maintained a social network and social media monopoly by consistently deceiving consumers about the data-privacy protections it provided to users, and by exploiting the data it extracted from users to target smaller startup companies for destruction or acquisition.The lawsuit seeks to put an end to Facebook’s misrepresentations about its privacy practices and its anticompetitive acquisition conduct; to require Facebook to engage in third-party auditing of its conduct; and to require Facebook to divest assets, such as Instagram and WhatsApp, that entrench its market power.
  • According to the complaint, which was filed on behalf of named plaintiffs Sarah Grabert and Maximilian Klein, Facebook did not achieve its Big Tech monopoly through innovation or vigorous competition. Despite its public pledge to protect user privacy, Facebook lied to users and violated their trust in a scheme to build a technology empire. Facebook also acquired technology from smaller firms that it used to track consumer activity across the internet so that it could identify and target competitors.ADVERTISEMENTThe complaint further alleges that in a strategic, intentional ploy for market domination, Facebook engaged in its scheme to destroy all competition without a care for the ultimate harm it would inflict on consumers. By the time Facebook’s deception about its lackluster privacy protections became public knowledge, Facebook had already achieved dominance, making it difficult for any firm to challenge its social media and social network monopoly.
  • The complaint notes that Facebook derives enormous economic value from the data it harvests from consumers on its platform. In fact, Facebook itself has described how it generates massive earnings per user from the data it collects. The complaint details how Facebook’s destruction of competition has caused consumers substantial economic injury. Consumers who sign up for Facebook agree to give up their valuable data and attention in exchange for using Facebook’s platform. That information and attention is then sold in measurable units to advertisers in exchange for money. The complaint alleges that consumers were harmed by Facebook’s anticompetitive conduct, as they did not receive the benefit of their bargain with Facebook.The lawsuit includes claims for violations of federal antitrust laws and California common law. It also seeks an order enjoining Facebook from continuing to engage in the alleged wrongful acts, requiring Facebook to engage third-party auditors to evaluate and correct problems with Facebook’s conduct, and requiring Facebook to divest assets like Instagram and WhatsApp. The lawsuit also seeks monetary damages, restitution and/or disgorgement of Facebook’s wrongful gains, attorneys’ fees, and costs.
Paul Merrell

Is Apple an Illegal Monopoly? | OneZero - 0 views

  • That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.
  • Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.
  • But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.
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  • Whether Apple customers have a real choice in mobile platforms, once they’ve bought into the company’s ecosystem, is another question. In theory, they could trade in their pricey hardware for devices that run Android, which offers equivalents of many iOS features and apps. In reality, Apple has built its empire on customer lock-in: making its own gadgets and services work seamlessly with one another, but not with those of rival companies. Tasks as simple as texting your friends can become a migraine-inducing mess when you switch from iOS to Android. The more Apple products you buy, the more onerous it becomes to abandon ship.
  • The case against Apple goes beyond iOS. At a time when Apple is trying to reinvent itself as a services company to offset plateauing hardware sales — pushing subscriptions to Apple Music, Apple TV+, Apple News+, and Apple Arcade, as well as its own credit card — the antitrust concerns are growing more urgent. Once a theoretical debate, the question of whether its App Store constitutes an illegal monopoly is now being actively litigated on multiple fronts.
  • The company faces an antitrust lawsuit from consumers; a separate antitrust lawsuit from developers; a formal antitrust complaint from Spotify in the European Union; investigations by the Federal Trade Commission and the Department of Justice; and an inquiry by the antitrust subcommittee of the U.S House of Representatives. At stake are not only Apple’s profits, but the future of mobile software.Apple insists that it isn’t a monopoly, and that it strives to make the app store a fair and level playing field even as its own apps compete on that field. But in the face of unprecedented scrutiny, there are signs that the famously stubborn company may be feeling the pressure to prove it.
  • Tile is hardly alone in its grievances. Apple’s penchant for copying key features of third-party apps and integrating them into its operating system is so well-known among developers that it has a name: “Sherlocking.” It’s a reference to the time—in the early 2000s—when Apple kneecapped a popular third-party web-search interface for Mac OS X, called Watson. Apple built virtually all of Watson’s functionality into its own feature, called Sherlock.In a 2006 blog post, Watson’s developer, Karelia Software, recalled how Apple’s then-CEO Steve Jobs responded when they complained about the company’s 2002 power play. “Here’s how I see it,” Jobs said, according to Karelia founder Dan Wood’s loose paraphrase. “You know those handcars, the little machines that people stand on and pump to move along on the train tracks? That’s Karelia. Apple is the steam train that owns the tracks.”From an antitrust standpoint, the metaphor is almost too perfect. It was the monopoly power of railroads in the late 19th century — and their ability to make or break the businesses that used their tracks — that spurred the first U.S. antitrust regulations.There’s another Jobs quote that’s relevant here. Referencing Picasso’s famous saying, “Good artists copy, great artists steal,” Jobs said of Apple in 2006. “We have always been shameless about stealing great ideas.” Company executives later tried to finesse the quote’s semantics, but there’s no denying that much of iOS today is built on ideas that were not originally Apple’s.
Paul Merrell

FTC Hits Amazon With 'One of the Most Important Antitrust Cases in US History' - 1 views

  • Economic justice advocates applauded on Tuesday as the Federal Trade Commission and 17 states filed a sweeping antitrust lawsuit against Seattle-based Amazon.com for illegally dominating the online retail economy at the expense of consumers.
  • The 172-page complaint "lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," said FTC Chair Lina Khan in a statement. "The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them." The document—filed in a federal court in Washington state—alleges that Amazon maintains "durable monopoly power" in the online superstore and marketplace services markets, including by stifling price competition and coercing sellers into using its fulfillment service.
Paul Merrell

Court Rules Meta Must Face Lawsuit Over Fraudulent Ads | ZeroHedge - 1 views

  • Facebook parent company Meta must face a lawsuit over claims it breached its terms of service by soliciting fraudulent advertisements from Chinese companies, a federal appeals court has ruled.
  • he pair said Facebook was unjustly enriching itself and being negligent by not only accepting but soliciting ads from scammers. That included efforts to solicit ads from China-based advertisers, despite internal data indicating nearly three-in-10 such ads violated one or more Facebook policies.They also said that Facebook was breaching the contract it made with users when it stated in its terms of service that if it learned of harmful conduct, “we will take appropriate action,” but instead solicited, encouraged, and assisted deceptive advertisers.
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