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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.

Microsoft is the leading suitor to potentially take over short-form video app TikTok as the Trump administration considers sidelining its Chinese parent company, according to a person familiar with the talks, the latest sign of the administration’s increasingly strident stance on China and its tech companies.President Donald Trump is considering signing an order forcing China’s ByteDance to sell off the U.S. portion of TikTok over national security concerns, according to people familiar with the talks, who spoke on the condition of anonymity because they were not authorized to discuss it publicly. One of the individuals confirmed Microsoft was in the lead to acquire the popular platform’s U.S. service.While the order was originally expected to be signed Friday, it could still fall through, the people warned. The president was also considering other approaches, including designating TikTok under an executive order that allows the president to exclude national security threats from U.S. networks.

If Microsoft does acquire TikTok, it would make it a major rival to Facebook, Google’s YouTube and other tech giants overnight, dramatically reshaping the U.S. social media landscape.

The Trump administration is considering the possibility of banning end-to-end encryption, as used by services like Apple’s Messages and FaceTime, as well as competing platforms like WhatsApp and Signal. The topic was reportedly the main topic of a previously-unreported meeting of a National Security Council meeting on Wednesday … NordVPN Politico cites three sources for the story. Senior Trump administration officials met on Wednesday to discuss whether to seek legislation prohibiting tech companies from using forms of encryption that law enforcement can’t break — a provocative step that would reopen a long-running feud between federal authorities and Silicon Valley. The encryption challenge, which the government calls “going dark,” was the focus of a National Security Council meeting Wednesday morning that included the No. 2 officials from several key agencies, according to three people familiar with the matter. The meeting reportedly discussed two options. Senior officials debated whether to ask Congress to effectively outlaw end-to-end encryption, which scrambles data so that only its sender and recipient can read it […] “The two paths were to either put out a statement or a general position on encryption, and [say] that they would continue to work on a solution, or to ask Congress for legislation,” said one of the people. No decision was reached given strongly opposing views within the government.

Federal regulators are discussing whether and how to hold Facebook Chief Executive Mark Zuckerberg personally accountable for the company's history of mismanaging users' private data, two sources familiar with the discussions told NBC News on Thursday.The sources wouldn't elaborate on what measures are specifically under consideration. The Washington Post, which first reported the development, reported that regulators were exploring increased oversight of Zuckerberg's leadership.While Facebook has come under scrutiny for its privacy practices for years, both of the Democratic members of the FTC have said the agency should target individual executives when appropriate.Justin Brookman, a former policy director for technology research at the Federal Trade Commission, or FTC, said Thursday night that while the FTC can name individual company leaders if they directed, controlled and knew about any wrongdoing, "they typically only use that authority in fraud-like cases, so far as I can tell."

Why did the internet freedom agenda fail? Goldsmith’s essay tees up, but does not fully explore, a range of explanatory hypotheses. The most straightforward have to do with unrealistic expectations and unintended consequences. The idea that a minimally regulated internet would usher in an era of global peace, prosperity, and mutual understanding, Goldsmith tells us, was always a fantasy. As a project of democracy and human rights promotion, the internet freedom agenda was premised on a wildly overoptimistic view about the capacity of information flows, on their own, to empower oppressed groups and effect social change. Embracing this market-utopian view led the United States to underinvest in cybersecurity, social media oversight, and any number of other regulatory tools. In suggesting this interpretation of where U.S. policymakers and their civil society partners went wrong, Goldsmith’s essay complements recent critiques of the neoliberal strains in the broader human rights and transparency movements. Perhaps, however, the internet freedom agenda has faltered not because it was so naïve and unrealistic, but because it was so effective at achieving its realist goals. The seeds of this alternative account can be found in Goldsmith’s concession that the commercial non-regulation principle helped companies like Apple, Google, Facebook, and Amazon grab “huge market share globally.” The internet became an increasingly valuable cash cow for U.S. firms and an increasingly potent instrument of U.S. soft power over the past two decades; foreign governments, in due course, felt compelled to fight back. If the internet freedom agenda is understood as fundamentally a national economic project, rather than an international political or moral crusade, then we might say that its remarkable early success created the conditions for its eventual failure. Goldsmith’s essay also points to a third set of possible explanations for the collapse of the internet freedom agenda, involving its internal contradictions. Magaziner’s notion of a completely deregulated marketplace, if taken seriously, is incoherent. As Goldsmith and Tim Wu have discussed elsewhere, it takes quite a bit of regulation for any market, including markets related to the internet, to exist and to work. And indeed, even as Magaziner proposed “complete deregulation” of the internet, he simultaneously called for new legal protections against computer fraud and copyright infringement, which were soon followed by extensive U.S. efforts to penetrate foreign networks and to militarize cyberspace. Such internal dissonance was bound to invite charges of opportunism, and to render the American agenda unstable.

The opening panel of the Stigler Center’s annual antitrust conference discussed the source of digital platforms’ power and what, if anything, can be done to address the numerous challenges their ability to shape opinions and outcomes present. 

Google CEO Sundar Pichai caused a worldwide sensation earlier this week when he unveiled Duplex, an AI-driven digital assistant able to mimic human speech patterns (complete with vocal tics) to such a convincing degree that it managed to have real conversations with ordinary people without them realizing they were actually talking to a robot.   While Google presented Duplex as an exciting technological breakthrough, others saw something else: a system able to deceive people into believing they were talking to a human being, an ethical red flag (and a surefire way to get to robocall hell). Following the backlash, Google announced on Thursday that the new service will be designed “with disclosure built-in.” Nevertheless, the episode created the impression that ethical concerns were an “after-the-fact consideration” for Google, despite the fierce public scrutiny it and other tech giants faced over the past two months. “Silicon Valley is ethically lost, rudderless and has not learned a thing,” tweeted Zeynep Tufekci, a professor at the University of North Carolina at Chapel Hill and a prominent critic of tech firms.   The controversial demonstration was not the only sign that the global outrage has yet to inspire the profound rethinking critics hoped it would bring to Silicon Valley firms. In Pichai’s speech at Google’s annual I/O developer conference, the ethical concerns regarding the company’s data mining, business model, and political influence were briefly addressed with a general, laconic statement: “The path ahead needs to be navigated carefully and deliberately and we feel a deep sense of responsibility to get this right.”

Google’s fellow FAANGs also seem eager to put the “techlash” of the past two years behind them. Facebook, its shares now fully recovered from the Cambridge Analytica scandal, is already charging full-steam ahead into new areas like dating and blockchain.   But the techlash likely isn’t going away soon. The rise of digital platforms has had profound political, economic, and social effects, many of which are only now becoming apparent, and their sheer size and power makes it virtually impossible to exist on the Internet without using their services. As Stratechery’s Ben Thompson noted in the opening panel of the Stigler Center’s annual antitrust conference last month, Google and Facebook—already dominating search and social media and enjoying a duopoly in digital advertising—own many of the world’s top mobile apps. Amazon has more than 100 million Prime members, for whom it is usually the first and last stop for shopping online.   Many of the mechanisms that allowed for this growth are opaque and rooted in manipulation. What are those mechanisms, and how should policymakers and antitrust enforcers address them? These questions, and others, were the focus of the Stigler Center panel, which was moderated by the Economist’s New York bureau chief, Patrick Foulis.

For more than a year we’ve been investigating Cambridge Analytica and its links to the Brexit Leave campaign in the UK and Team Trump in the US presidential election. Now, 28-year-old Christopher Wylie goes on the record to discuss his role in hijacking the profiles of millions of Facebook users in order to target the US electorate

The Berkeley City Council is poised to vote March 13 on the Surveillance Technology Use and Community Safety Ordinance, which will significantly protect people's right to privacy and safeguard the civil liberties of Berkeley residents in this age of surveillance and Big Data. The ordinance is based on an ACLU model that was first enacted by Santa Clara County in 2016. The Los Angeles Times has editorialized that the ACLU's model ordinance approach "is so pragmatic that cities, counties, and law enforcement agencies throughout California would be foolish not to embrace it." Berkeley's Peace and Justice and Police Review commissions agreed and unanimously approved a draft that will be presented to the council on Tuesday. The ordinance requires public notice and public debate prior to seeking funding, acquiring equipment, or otherwise moving forward with surveillance technology proposals. In neighboring Oakland, we saw the negative outcome that can occur from lack of such a discussion, when the city's administration pursued funding for, and began building, the citywide surveillance network known as the Domain Awareness Center ("DAC") without community input. Ultimately, the community rejected the project, and the fallout led to the establishment of a Privacy Advisory Commission and subsequent consideration of a similar surveillance ordinance to ensure proper vetting occurs up front, not after the fact. ✖ Play VideoPauseUnmuteCurrent Time 0:00/Duration Time 0:00Loaded: 0%Progress: 0%Stream TypeLIVERemaining Time -0:00 Playback Rate1ChaptersChaptersdescriptions off, selectedDescriptionssubtitles off, selectedSubtitlescaptions settings, opens captions settings dialogcaptions off, selectedCaptionsAudio TrackFullscreenThis is a modal window.Caption Settings DialogBeginning of dialog window. Escape will cancel and close the window.

It's an uncertain waiting game as to when the next-generation high-speed wireless service known as 5G will reach mass market, but the business implications are already a major talking point at CES 2018.

The term "5G" refers to the fifth-generation wireless broadband technology based on the 802.11ac standard. The packet of technology will bring speed and coverage improvements from 4G, with low-latency wireless up to 1GB/s, and it'll spur a host of new opportunities for enterprises and workplace productivity.In a panel discussion at CES, a trio of executives from Qualcomm, Ericsson, and Nokia discussed how 5G could transform industries ranging from transportation to manufacturing.

Some 5G rollouts are already planned for 2018. Samsung announced last Wednesday that it will provide Verizon with routers and radio frequency planning services for the carrier's initial 5G commercial rollout that will begin in Sacramento, Calif., in the second half of 2018.Meanwhile, AT&T announced that it will provide 5G services in roughly 12 markets by late 2018, with plans to offer the service to consumers while it trials 5G technology with businesses across all industries.Still, the panel of executives at CES remain skeptical that 5G would roll out for most Americans before late 2019 or 2020.

Eric Schmidt, the Executive Chairman of Google’s parent company Alphabet, says the company will “engineer” specific algorithms for RT and Sputnik to make their articles less prominent on the search engine’s news delivery services. “We are working on detecting and de-ranking those kinds of sites – it’s basically RT and Sputnik,” Schmidt said during a Q & A session at the Halifax International Security Forum in Canada on Saturday, when asked about whether Google facilitates “Russian propaganda.”

“We are well of aware of it, and we are trying to engineer the systems to prevent that [the content being delivered to wide audiences]. But we don’t want to ban the sites – that’s not how we operate.”The discussion focused on the company’s popular Google News service, which clusters the news by stories, then ranks the various media outlets depending on their reach, article length and veracity, and Google Alerts, which proactively informs subscribers of new publications.

The Alphabet chief, who has been referred to by Hillary Clinton as a “longtime friend,” added that the experience of “the last year” showed that audiences could not be trusted to distinguish fake and real news for themselves.“We started with the default American view that ‘bad’ speech would be replaced with ‘good’ speech, but the problem found in the last year is that this may not be true in certain situations, especially when you have a well-funded opponent who is trying to actively spread this information,” he told the audience.

The White House on Wednesday made public for the first time the rules by which the government decides to disclose or keep secret software flaws that can be turned into cyberweapons — whether by U.S. agencies hacking for foreign intelligence, money-hungry criminals or foreign spies seeking to penetrate American computers. The move to publish an un­classified charter responds to years of criticism that the process was unnecessarily opaque, fueling suspicion that it cloaked a stockpile of software flaws that the National Security Agency was hoarding to go after foreign targets but that put Americans’ cyber­security at risk.

The rules are part of the “Vulnerabilities Equities Process,” which the Obama administration revamped in 2014 as a multi­agency forum to debate whether and when to inform companies such as Microsoft and Juniper that the government has discovered or bought a software flaw that, if weaponized, could affect the security of their product. The Trump administration has mostly not altered the rules under which the government reaches a decision but is disclosing its process. Under the VEP, an “equities review board” of at least a dozen national security and civilian agencies will meet monthly — or more often, if a need arises — to discuss newly discovered vulnerabilities. Besides the NSA, the CIA and the FBI, the list includes the Treasury, Commerce and State departments, and the Office of Management and Budget. The priority is on disclosure, the policy states, to protect core Internet systems, the U.S. economy and critical infrastructure, unless there is “a demonstrable, overriding interest” in using the flaw for intelligence or law enforcement purposes. The government has long said that it discloses the vast majority — more than 90 percent — of the vulnerabilities it discovers or buys in products from defense contractors or other sellers. In recent years, that has amounted to more than 100 a year, according to people familiar with the process. But because the process was classified, the National Security Council, which runs the discussion, was never able to reveal any numbers. Now, Joyce said, the number of flaws disclosed and the number retained will be made public in an annual report. A classified version will be sent to Congress, he said.

The five-week court hearing in what is a complex case delving into detail on US surveillance operations took place in February. The court issued its ruling today. The 153-page ruling starts by noting “this is an unusual case”, before going into a detailed discussion of the arguments and concluding that the DPC’s concerns about the validity of SCCs should be referred to the European Court of Justice for a preliminary ruling. Schrems is also the man responsible for bringing, in 2013, a legal challenge that ultimately struck down Safe Harbor — the legal mechanism that had oiled the pipe for EU-US personal data flows for fifteen years before the ECJ ruled it to be invalid in October 2015. Schrems’ argument had centered on U.S. government mass surveillance programs, as disclosed via the Snowden leaks, being incompatible with fundamental European privacy rights. After the ECJ struck down Safe Harbor he then sought to apply the same arguments against Facebook’s use of SCCs — returning to Ireland to make the complaint as that’s where the company has its European HQ. It’s worth noting that the European Commission has since replaced Safe Harbor with a new (and it claims more robust) data transfer mechanism, called the EU-US Privacy Shield — which is now, as Safe Harbor was, used by thousands of businesses. Although that too is facing legal challenges as critics continue to argue there is a core problem of incompatibility between two distinct legal regimes where EU privacy rights collide with US mass surveillance.

In a written statement on the ruling Schrems added: “I welcome the judgement by the Irish High Court. It is important that a neutral Court outside of the US has summarized the facts on US surveillance in a judgement, after diving through more than 45,000 pages of documents in a five week hearing.

Making a video statement outside court in Dublin today, Schrems said the Irish court had dismissed Facebook’s argument that the US government does not undertake any surveillance.

Amid reports that Moscow is considering handing over NSA whistleblower Edward Snowden as a “gift” to U.S. President Donald Trump, a Russian government spokesperson said Monday that the Kremlin and the White House have not discussed the matter, Russia’s state TASS agency reported. “No, this issue (Snowden’s fate) was not raised,” presidential spokesperson Dmitry Peskov told reporters Monday, adding that Russian officials have not taken a position on whether Snowden should be extradited to the U.S. or granted Russian citizenship. “The issue was not raised (during the Russian-US contacts),” Peskov said. “At the moment it is not among bilateral issues.” The statement comes after Snowden — who has lived in Russia since 2013, first with one-year temporary asylum then a residence permit — revealed in recent days that he is “not afraid” of being handed over to the United States, where he faces espionage charges for his explosive 2013 leak of documents on secret U.S. mass surveillance programs.

However, Snowden also said in an interview with Yahoo News that talk of a possible trade between Moscow and Washington makes him feel “encouraged” because it vindicates him in the face of accusations that he has been a spy for Russia by laying bare the fact that he has always been independent and “worked on behalf of the United States.” “Finally: irrefutable evidence that I never cooperated with Russian intel,” he tweeted on Friday. “No country trades away spies, as the rest would fear they’re next.” In the U.S., Snowden faces charges of theft of government property and violation of the Espionage Act on two counts, which each carry a maximum sentence of 10 years.

“What I am proud of,” Snowden told Yahoo News, “is the fact that every decision that I have made I can defend.” Snowden is set to be eligible to apply for Russian citizenship next year, according to his lawyer. Last month, Moscow extended his residence permit, which is now valid until 2020.

An entry in something the government calls a “Manhunting Timeline” suggests that the United States pressured officials of countries around the world to prosecute WikiLeaks editor-in-chief, Julian Assange, in 2010. The file—marked unclassified, revealed by National Security Agency whistleblower Edward Snowden and published by The Intercept—is dated August 2010. Under the headline, “United States, Australia, Great Britain, Germany, Iceland” – it states: The United States on 10 August urged other nations with forces in Afghanistan, including Australia, United Kingdom and Germany, to consider filing criminal charges against Julian Assange, founder of the rogue WikiLeaks Internet website and responsible for the unauthorized publication of over 70,000 classified documents covering the war in Afghanistan. The documents may have been provided to WikiLeaks by Army Private First Class Bradley Manning. The appeal exemplifies the start of an international effort to focus the legal element of national power upon non-state actor Assange and the human network that supports WikiLeaks. Another document—a top-secret page from an internal wiki—indicates there has been discussion in the NSA with the Threat Operations Center Oversight and Compliance (NOC) and Office of General Counsel (OGC) on the legality of designating WikiLeaks a “malicious foreign actor” and whether this would make it permissible to conduct surveillance on Americans accessing the website. “Can we treat a foreign server who stores or potentially disseminates leaked or stolen data on its server as a ‘malicious foreign actor’ for the purpose of targeting with no defeats?” Examples: WikiLeaks, thepiratebay.org). The NOC/OGC answered, “Let me get back to you.” (The page does not indicate if anyone ever got back to the NSA. And “defeats” essentially means protections.)

GCHQ, the NSA’s counterpart in the UK, had a program called “ANTICRISIS GIRL,” which could engage in “targeted website monitoring.” This means data of hundreds of users accessing a website, like WikiLeaks, could be collected. The IP addresses of readers and supporters could be monitored. The agency could even target the publisher if it had a public dropbox or submission system. NSA and GCHQ could also target the foreign “branches” of the hacktivist group, Anonymous. An answer to another question from the wiki entry involves the question, “Is it okay to query against a foreign server known to be malicious even if there is a possibility that US persons could be using it as well? Example: thepiratebay.org.” The NOC/OGC responded, “Okay to go after foreign servers which US people use also (with no defeats). But try to minimize to ‘post’ only for example to filter out non-pertinent information.” WikiLeaks is not an example in this question, however, if it was designated as a “malicious foreign actor,” then the NSA would do queries of American users.

Michael Ratner, a lawyer from the Center for Constitutional Rights (CCR) who represents WikiLeaks, said on “Democracy Now!”, this shows he has every reason to fear what would happen if he set foot outside of the embassy. The files show some of the extent to which the US and UK have tried to destroy WikiLeaks. CCR added in a statement, “These NSA documents should make people understand why Julian Assange was granted diplomatic asylum, why he must be given safe passage to Ecuador, and why he must keep himself out of the hands of the United States and apparently other countries as well. These revelations only corroborate the expectation that Julian Assange is on a US target list for prosecution under the archaic “Espionage Act,” for what is nothing more than publishing evidence of government misconduct.” “These documents demonstrate that the political persecution of WikiLeaks is very much alive,”Baltasar Garzón, the Spanish former judge who now represents the group, told The Intercept. “The paradox is that Julian Assange and the WikiLeaks organization are being treated as a threat instead of what they are: a journalist and a media organization that are exercising their fundamental right to receive and impart information in its original form, free from omission and censorship, free from partisan interests, free from economic or political pressure.”

By James Bamford Last summer, cyber investigators plowing through the thousands of leaked emails from the Democratic National Committee uncovered a clue.A user named “Феликс Эдмундович” modified one of the documents using settings in the Russian language. Translated, his name was Felix Edmundovich, a pseudonym referring to Felix Edmundovich Dzerzhinsky, the chief of the Soviet Union’s first secret-police organization, the Cheka.It was one more link in the chain of evidence pointing to Russian President Vladimir Putin as the man ultimately behind the operation.During the Cold War, when Soviet intelligence was headquartered in Dzerzhinsky Square in Moscow, Putin was a KGB officer assigned to the First Chief Directorate. Its responsibilities included “active measures,” a form of political warfare that included media manipulation, propaganda and disinformation. Soviet active measures, retired KGB Major General Oleg Kalugin told Army historian Thomas Boghart, aimed to discredit the United States and “conquer world public opinion.”As the Cold War has turned into the code war, Putin recently unveiled his new, greatly enlarged spy organization: the Ministry of State Security, taking the name from Joseph Stalin’s secret service. Putin also resurrected, according to James Clapper, the U.S. director of national intelligence, some of the KGB’s old active- measures tactics. On October 7, Clapper issued a statement: “The U.S. Intelligence community is confident that the Russian government directed the recent compromises of emails from U.S. persons and institutions, including from U.S. political organizations.” Notably, however, the FBI declined to join the chorus, according to reports by the New York Times and CNBC.A week later, Vice President Joe Biden said on NBC’s Meet the Press that "we're sending a message" to Putin and "it will be at the time of our choosing, and under the circumstances that will have the greatest impact." When asked if the American public would know a message was sent, Biden replied, "Hope not." Meanwhile, the CIA was asked, according to an NBC report on October 14, “to deliver options to the White House for a wide-ranging ‘clandestine’ cyber operation designed to harass and ‘embarrass’ the Kremlin leadership.”But as both sides begin arming their cyberweapons, it is critical for the public to be confident that the evidence is really there, and to understand the potential consequences of a tit-for-tat cyberwar escalating into a real war. 

This is a prospect that has long worried Richard Clarke, the former White House cyber czar under President George W. Bush. “It’s highly likely that any war that began as a cyberwar,” Clarke told me last year, “would ultimately end up being a conventional war, where the United States was engaged with bombers and missiles.”The problem with attempting to draw a straight line from the Kremlin to the Clinton campaign is the number of variables that get in the way. For one, there is little doubt about Russian cyber fingerprints in various U.S. campaign activities. Moscow, like Washington, has long spied on such matters. The United States, for example, inserted malware in the recent Mexican election campaign. The question isn’t whether Russia spied on the U.S. presidential election, it’s whether it released the election emails.Then there’s the role of Guccifer 2.0, the person or persons supplying WikiLeaks and other organizations with many of the pilfered emails. Is this a Russian agent? A free agent? A cybercriminal? A combination, or some other entity? No one knows.There is also the problem of groupthink that led to the war in Iraq. For example, just as the National Security Agency, the Central Intelligence Agency and the rest of the intelligence establishment are convinced Putin is behind the attacks, they also believed it was a slam-dunk that Saddam Hussein had a trove of weapons of mass destruction. Consider as well the speed of the political-hacking investigation, followed by a lack of skepticism, culminating in a rush to judgment. After the Democratic committee discovered the potential hack last spring, it called in the cybersecurity firm CrowdStrike in May to analyze the problem.

CrowdStrike took just a month or so before it conclusively determined that Russia’s FSB, the successor to the KGB, and the Russian military intelligence organization, GRU, were behind it. Most of the other major cybersecurity firms quickly fell in line and agreed. By October, the intelligence community made it unanimous. That speed and certainty contrasts sharply with a previous suspected Russian hack in 2010, when the target was the Nasdaq stock market. According to an extensive investigation by Bloomberg Businessweek in 2014, the NSA and FBI made numerous mistakes over many months that stretched to nearly a year. “After months of work,” the article said, “there were still basic disagreements in different parts of government over who was behind the incident and why.”  There was no consensus­, with just a 70 percent certainty that the hack was a cybercrime. Months later, this determination was revised again: It was just a Russian attempt to spy on the exchange in order to design its own. The federal agents also considered the possibility that the Nasdaq snooping was not connected to the Kremlin. Instead, “someone in the FSB could have been running a for-profit operation on the side, or perhaps sold the malware to a criminal hacking group.” Again, that’s why it’s necessary to better understand the role of Guccifer 2.0 in releasing the Democratic National Committee and Clinton campaign emails before launching any cyberweapons.