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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

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."

Just before midnight on Friday, at the close of what was a hectic month for markets, WSJ dropped a bombshell of a story: The paper reported that the DoJ has opened an anti-trust investigation of Alphabet Inc., which could "present a major new layer of regulatory scrutiny for the search giant, according to people familiar with the matter." The report was sourced to "people familiar with the matter," but was swiftly corroborated by the New York Times, Bloomberg and others. For months now, the FTC has appeared to be gearing up for a showdown with big tech. The agency - which shares anti-trust authority with the DoJ - has created a new commission that could help undo big-tech tie-ups like Facebook's acquisition of Instagram, and hired lawyers who have advanced new anti-monopoly theories that would help justify the breakup of companies like Amazon. But as it turns out, the Trump administration's first salvo against big tech didn't come from the FTC; instead, this responsibility has been delegated to the DoJ, which has reportedly been tasked with supervising the investigation into Google. That's not super surprising, since the FTC already had its chance to nail Google with an anti-monopoly probe back in 2013. But the agency came up short. From what we can tell, it appears the administration will divvy up responsibility for any future anti-trust investigations between the two agencies, which means the FTC - which is already reportedly preparing to levy a massive fine against Facebook - could end up taking the lead in those cases.

Though WSJ didn't specify which aspects of Google's business might come under the microscope, a string of multi-billion-euro fines recently levied by the EU might offer some guidance. The bloc's anti-trust authority, which has been far more eager to take on American tech giants than its American counterpart (for reasons that should be obvious to all), has fined Google over its practice of bundling software with its standard Android license, the way its search engine rankings favor its own product listings, and ways it has harmed competition in the digital advertising market. During the height of the controversy over big tech's abuses of sensitive user data last year, the Verge published a story speculating about how the monopolistic tendencies of each of the dominant Silicon Valley tech giants could be remedied. For Google, the Verge argued, the best remedy would be a ban on acquisitions - a strategy that has been bandied about in Congress.

hina’s ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to save a deal with the White House, after President Donald Trump said on Friday he had decided to ban the popular short-video app, two people familiar with the matter said on Saturday. ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House had rejected. Under the new proposed deal, ByteDance would exit completely and Microsoft Corp would take over TikTok in the United States, the sources said. Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added. The White House did not respond to a request for comment on whether Trump would accept ByteDance’s concession. ByteDance in Beijing did not respond to a request for comment. Under ByteDance’s new proposal, Microsoft will be in charge of protecting all U.S. user data, the sources said. The plan allows for another U.S. company other than Microsoft to take over TikTok in the United States, the sources added.

Bytedance has apparently gotten the "tap on the shoulder" from the CCP bigwigs who apparently aren't super thrilled about the optics of a mighty Chinese conglomerate kowtowing to the Trump Administration. Earlier today, it appeared that President Trump's late-night threat about banning TikTok had motivated ByteDance and Microsoft to speed up their talks. But as the New York afternoon wore on, a Dow Jones headline proclaimed that Microsoft and ByteDance had decided to abruptly stop negotiations.