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Facebook CEO Mark Zuckerberg will tell House lawmakers Wednesday that he's willing to postpone the launch of the controversial digital currency that the social media giant is spearheading, amid growing pushback from policymakers around the world. Facebook and its partners working to launch the Libra payments network have been planning to start offering it to users next year. But Zuckerberg signaled he was open to taking more time, the latest indicator that regulatory hurdles are imperiling efforts to get Libra off the ground.

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.

Content creators everywhere are starting to panic about an upcoming policy change over at YouTube that threatens to eliminate all accounts and channels on the Google-owned video platform that are deemed to no longer be “commercially viable.” In the “Account Suspension & Termination” section of YouTube’s “Terminations by YouTube for Service Changes,” guidelines, the company explains that, as of December 10, 2019, “YouTube may terminate your access, or your Google account’s access to all or part of the Service, if YouTube believes, in its sole discretion, that provision of the Service to you is no longer commercially viable.”

Facebook expects to pay a fine of up to $5 billion in a settlement with federal regulators. The tech giant disclosed that figure in its first-quarter 2019 financial results. Facebook has been in negotiations with the Federal Trade Commission following concerns that the company violated a 2011 consent decree. Back then, company leaders promised to give consumers "clear and prominent notice" when sharing their data with others and to get "express consent."

But, experts say, Facebook broke its promise. Just one example: giving user data to Cambridge Analytica, the political consulting firm that did work for the 2016 Trump campaign. Facebook estimates the fine will be in the $3 billion to $5 billion range and has set aside $3 billion for payment. "The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome," the company's statement says.

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.

Two Facebook users are seeking damages on behalf of hundreds of thousands of Canadians whose personal data may have been improperly used for political purposes. The proposed class-action lawsuit filed by Calgary residents Saul Benary and Karma Holoboff asks the Federal Court to order the social-media giant to bolster its security practices to better protect sensitive information and comply with federal privacy law. It also seeks $1,000 for each of the approximately 622,000 Canadians whose information was shared with others through a digital app.

Though we doubt the broader public needed convincing, this is a significant milestone nonetheless, also after last month Trump shocked reporters by suggesting he could take a look at pardoning Edward Snowden:  Seven years after former National Security Agency contractor Edward Snowden blew the whistle on the mass surveillance of Americans’ telephone records, an appeals court has found the program was unlawful - and that the U.S. intelligence leaders who publicly defended it were not telling the truth.

And the ACLU said “Today’s ruling is a victory for our privacy rights,” adding that it “makes plain that the NSA’s bulk collection of Americans’ phone records violated the Constitution.” Crucially, the three judge panel on the 9th Circuit specifically credited Edward Snowden for exposing it, as Politico notes: Judge Marsha Berzon's opinion, which contains a half-dozen references to the role of former NSA contractor and whistleblower Edward Snowden in disclosing the NSA metadata program, concludes that the "bulk collection" of such data violated the Foreign Intelligence Surveillance Act.

On Feb. 5, 2021, the United Kingdom (U.K.) Supreme Court issued its judgment in R (on the application of KBR, Inc) v. Director of the Serious Fraud Office, holding that the U.K. Serious Fraud Office (SFO) lacked statutory authority to compel a U.S. company to disclose overseas data under threat of criminal sanction.  This judgment has obvious similarities with the so-called Microsoft Ireland decision of the U.S. Second Circuit Court of Appeals, which held that using U.S. Stored Communication Act (SCA) warrants to reach overseas data was an impermissible extraterritorial application of that legislation.  Microsoft Ireland was viewed by many as hugely controversial, hindering U.S. law enforcement’s access to overseas data, leading to a Supreme Court appeal and, ultimately, legislative amendments.  This new U.K. judgment promises to have an equally significant impact across the Atlantic on equivalent U.K. law enforcement powers.

Right around the time that Apple stock was surging to new highs thanks to a better than expected earnings report and stock split, another story was surfacing: Arizona is leading a multi-state investigation into whether or not Apple is deliberately slowing its old iPhones, and whether such practices would violate deceptive trade laws.  A probe has been ongoing "since 2018" and investigators are focusing on data that shows "unexpected shutdowns" of old Apple iPhones and the company's potential slowing down of devices using power management software, according to Reuters.  Documents obtained last week from a Texas watchdog group showed that the Texas AG was also involved in the investigation. Sources told Reuters that a "majority of U.S. states", with AGs spanning both parties, are involved and are "teaming up" together in the probe. 

Apple agreed to pay up to $500 million to settle a related class action lawsuit earlier this year. 

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.

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.

The Federal Trade Commission sued to break up Facebook on Wednesday, asking a federal court to force the sell-off of assets such as Instagram and WhatsApp as independent businesses.“Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire,” the commission said in the lawsuit filed in federal court in Washington, D.C.The lawsuit asks the court to order the “divestiture of assets, divestiture or reconstruction of businesses (including, but not limited to, Instagram and/or WhatsApp),” as well as other possible relief the court might want to add.

Attorneys general from 48 states and territories said they were filing their own lawsuit against Facebook, reflecting the broad and bipartisan concern about how much power Facebook and its CEO, Mark Zuckerberg, have accumulated on the internet.

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

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

A Moscow court on Friday slapped Google with a nearly US$100 million fine and also fined Facebook Inc’s parent company Meta Platforms Inc US$27 million over their failure to delete content banned by local law, as Russia seeks to step up pressure on technology giants. The Tagansky District Court ruled that Google repeatedly neglected to remove the banned content, and ordered the company to pay an administrative fine of 7.2 billion rubles (US$97.7 million).

Later on Friday, the court also slapped a fine of nearly 2 billion rubles on Meta for failure to remove banned content. Russian courts had this year imposed smaller fines on Google, Facebook and Twitter Inc, and Friday’s rulings were the first time that the size of the fines were calculated based on revenue. Russian state communications watchdog Roskomnadzor said that Google and Meta were specifically accused of contravening a ban on distributing content that promotes extremist ideology, insults religious beliefs and encourages dangerous behavior by minors, among other things.

The BMJ asked Facebook co-founder Mark Zuckerberg to remove a warning that discourages Facebook users from sharing an article about flaws in Pfizer’s COVID vaccine trial, saying the platform’s “incompetent” fact checkers are unfaily labeling stories as false. In an open letter Friday, The BMJ editors explained how some readers are unable to post its Nov. 2 article on Facebook. Other readers have received pop-up warnings that if they choose to share “false information,” their posts may rank lower in Facebook’s news feed.

“We find the ‘fact check’ performed by Lead Stories to be inaccurate, incompetent and irresponsible,” wrote The BMJ editors Fiona Godlee and Kamran Abbasi. “It fails to provide any assertions of fact that The BMJ article got wrong.” The BMJ article last month documented a host of poor practices that may have hurt data integrity and patient safety in the Phase 3 trial for Pfizer’s COVID vaccine. A whistleblower had supplied The BMJ with internal company documents, photos, audio recordings and e-mails from a contract research company overseeing some trial sites. The U.S. Food and Drug Administration declined to inspect the affected sites despite receiving a direct complaint in 2020, The BMJ said. Pfizer’s vaccine, called Comirnaty, received approval in August 2021. “There is also a wider concern that we wish to raise,” The BMJ wrote in its letter to Zuckerberg. “We are aware that The BMJ is not the only high quality information provider to have been affected by the incompetence of Meta’s fact checking regime.”

Facebook isn’t Lead Stories’ only client. The company also works for Google, ByteDance (TikTok’s owner) and the Poynter Institute for Media Studies. The fact checker’s stated mission is to “hunt for trending stories, images, videos and posts that contain false information in order to fact check them as quickly as possible.” The BMJ urged Zuckerberg to act swiftly, “specifically to correct the error relating to The BMJ’s article and to review the processes that led to the error; and generally to reconsider your investment in and approach to fact checking overall.”

As a general rule, politicians don’t pick fights with their state’s biggest private employers, but Seattle Congresswoman Pramila Jayapal is doing just that, sponsoring legislation that would break up Amazon.Jayapal’s Ending Platform Monopolies Act is part of a broader, bipartisan effort in Congress to rein in the power of the Big Four tech giants: Amazon, Facebook, Apple and Google.Following up on a 16-month antitrust investigation completed last fall, House lawmakers this month unveiled five antitrust bills aimed at checking the power of the companies by limiting their abilities to gobble up or hamstring competitors.Jayapal’s proposal would allow the federal government to sue to force the Big Four tech firms to sell off lines of business deemed a “conflict of interest.” That would mean Amazon could no longer run its marketplace for third-party sellers while also competing against them with its own products. Similar divestments would be required of the other top tech firms, and all could face massive daily fines for noncompliance.

The focus on today’s ubiquitous big tech giants in some ways echoes past antitrust confrontations in the U.S. In the 1980s, the federal government forced the breakup of the Bell System phone monopoly. In the late 1990s, the U.S. sought to bust up Microsoft over its PC market stranglehold — a battle that ended in a 2002 settlement curbing some of its practices.The Big Four have inspired blowback from across the political spectrum, though not always for the same reasons. All five of the House bills rolled out last week had both Democratic and Republican co-sponsors — producing some unusual alliances.

Amazon will pay almost $62 million to settle allegations by the U.S. Federal Trade Commission that it avoided handing over the full pay and tips it promised to delivery drivers, according to the agency.The company is giving back the amount it kept, according to a complaint released earlier this year by the agency, after it told Amazon Flex drivers and customers in 2015 it would pay $18 to $25 hourly plus tips. Instead, beginning the following year, it used tips to supplement lower base pay rates, and tried to hide the changes, according to the FTC."For a period of over two and a half years, without consumers' permission, Amazon secretly used nearly a third of customer tips to subsidize its own pay to drivers," the FTC had found.Under the 20-year settlement, Amazon will also need consent from drivers to change their pay scheme. All commissioners voted unanimously to approve the settlement.

The European Union slapped Meta with a record $1.3 billion privacy fine Monday and ordered it to stop transferring user data across the Atlantic, the latest salvo in a decadelong case sparked by U.S. cybersnooping fears. The penalty fine of 1.2 billion euros from Ireland’s Data Protection Commission is the biggest since the EU’s strict data privacy regime took effect five years ago, surpassing Amazon’s 746 million euro penalty in 2021 for data protection violations. The Irish watchdog is Meta’s lead privacy regulator in the 27-nation bloc because the Silicon Valley tech giant’s European headquarters is based in Dublin. Meta, which had previously warned that services for its users in Europe could be cut off, vowed to appeal and ask courts to immediately put the decision on hold.

The Senate Judiciary Committee is set to deliberate on the American Innovation and Choice Online Act, which some experts consider to have the most realistic chance of becoming law out of broad slate of reforms, while creating major change in the industry. The committee schedule also lists a markup of the Open App Markets Act, another bipartisan competition bill.Both bills would prevent certain dominant tech platforms from favoring their own products or services over others that rely on their marketplaces to do business. But the Open App Markets Act’s impact would primarily be limited to those that run app stores, like Apple and Google, while the American Innovation and Choice Online Act would be more expansive, potentially preventing a company like Amazon from giving its own private label products a better ranking in its search than a third-party competitor.Apple and Google could similarly be barred from unfairly ranking their own apps above competitors’ in their mobile app stores, and for Google, the same principle would apply to its general search engine as well

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.