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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.

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.

The European Commission has opened formal antitrust investigations to assess whether Apple's rules for app developers on the distribution of apps via the App Store violate EU competition rules. The investigations concern in particular the mandatory use of Apple's own proprietary in-app purchase system and restrictions on the ability of developers to inform iPhone and iPad users of alternative cheaper purchasing possibilities outside of apps. The investigations concern the application of these rules to all apps, which compete with Apple's own apps and services in the European Economic Area (EEA). The investigations follow-up on separate complaints by Spotify and by an e-book/audiobook distributor on the impact of the App Store rules on competition in music streaming and e-books/audiobooks.

iPhone and iPad users can only download native (non web-based) apps via the App Store. The Commission will investigate in particular two restrictions imposed by Apple in its agreements with companies that wish to distribute apps to users of Apple devices: (i)   The mandatory use of Apple's own proprietary in-app purchase system “IAP” for the distribution of paid digital content. Apple charges app developers a 30% commission on all subscription fees through IAP. (ii)  Restrictions on the ability of developers to inform users of alternative purchasing possibilities outside of apps. While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere (e.g. on the website of the app developer) also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper.

Facebook said on Wednesday that it had agreed to pay $550 million to settle a class-action lawsuit over its use of facial recognition technology in Illinois, giving privacy groups a major victory that again raised questions about the social network’s data-mining practices.The case stemmed from Facebook’s photo-labeling service, Tag Suggestions, which uses face-matching software to suggest the names of people in users’ photos. The suit said the Silicon Valley company violated an Illinois biometric privacy law by harvesting facial data for Tag Suggestions from the photos of millions of users in the state without their permission and without telling them how long the data would be kept. Facebook has said the allegations have no merit.Under the agreement, Facebook will pay $550 million to eligible Illinois users and for the plaintiffs’ legal fees. The sum dwarfs the $380.5 million that the Equifax credit reporting agency agreed this month to pay to settle a class-action case over a 2017 consumer data breach.

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.”

California’s attorney general has gone to court to force Facebook to hand over documents as part of an investigation into the company. Xavier Becerra filed a “petition to enforce investigative subpoena” with the Superior Court of California in San Francisco on Wednesday morning, arguing that Facebook’s response to his subpoenas has been “patently inadequate.” Citing a “lack of cooperation” not just with his office but also the Federal Trade Commission (FTC), Xavier Becerra points out [PDF] that it took Facebook a year to respond to his initial inquiry to produce documents relating to the Cambridge Analytica scandal, where Facebook allowed a third party to access vast amounts of personal information through its systems.

Not only that but Facebook flat out refused to “search communications involving senior executives,” meaning that it refused to search for relevant information in the emails and other communications of CEO Mark Zuckerberg and COO Sheryl Sandberg, among others. “Facebook is not just continuing to drag its feet, it is failing to comply with lawfully issued subpoenas and interrogatories,” the filing states.

The filing comes the same day that 7,000 pages of internal Facebook files were published online. Those documents were obtained and leaked amid a lawsuit between Facebook and a third-party app developer and were labelled as “highly confidential” by the antisocial network. The main upshot of those files is that they show Facebook used the data it gathered on millions of its users as a business weapon: it provided people's profile information to companies that, for instance, agreed to spend hundreds of thousands of dollars on adverts within Facebook, and it cut off developers that posed a competitive threat to its ever-growing stable of companies and services (or developers that wouldn't pay up, or were just too sketchy for the internet giant.) This confirms earlier reporting. CEO Zuckerberg also continues to avoid visiting London, or anywhere in the UK, out of fear he will be arrested for repeatedly failing to comply with a request by Parliament to answer questions about Facebook’s actions, as revealed in the tranche of documents.

WhatsApp sued Israeli surveillance firm NSO Group on Tuesday, accusing it of helping government spies break into the phones of roughly 1,400 users across four continents in a hacking spree whose targets included diplomats, political dissidents, journalists and senior government officials.

In a lawsuit filed in federal court in San Francisco, messaging service WhatsApp, which is owned by Facebook Inc (FB.O), accused NSO of facilitating government hacking sprees in 20 countries. Mexico, the United Arab Emirates and Bahrain were the only countries identified. WhatsApp said in a statement that 100 civil society members had been targeted, and called it “an unmistakable pattern of abuse.” NSO denied the allegations.

Citizen Lab, a cybersecurity research laboratory based at the University of Toronto that worked with WhatsApp to investigate the phone hacking, told Reuters that the targets included well-known television personalities, prominent women who had been subjected to online hate campaigns and people who had faced “assassination attempts and threats of violence.”

Attorney General William Barr asks Facebook CEO Mark Zuckerberg to hold off on his plans to encrypt the company’s three messaging services until officials can determine it will not reduce public safety in a letter dated Oct. 4.Barr’s request is backed by officials in the U.K. and Australia. BuzzFeed News first reported the story after obtaining a draft of the open letter on Thursday. The letter, which the DOJ sent to CNBC Thursday, builds on concerns about Facebook’s plans to integrate and encrypt its messaging services across Messenger, Instagram and WhatsApp. A New York Times investigation published Saturday found that encrypted technology helps predators share child pornography online in a way that makes it much harder for law enforcement to track down.

The United States, the United Kingdom and Australia have called on Facebook Inc to not go ahead with end-to-end encryption across its messaging services unless law enforcement officials have backdoor access, saying encryption hindered the fight against child abuse and terrorism.

The United States and United Kingdom also signed a special data agreement that would fast track requests from law enforcement to technology companies for information about the communications of terrorists and child predators. Law enforcement could get information in weeks or even days instead of the current wait of six months to two years. The latest tug-of-war between governments and tech companies over user data could also impact Apple Inc, Alphabet Inc’s Google and Microsoft Corp, as well as smaller encrypted chat apps like Signal.

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

State attorneys general of 48 states, Puerto Rico and the District of Columbia announced a major probe Monday into Google's dominance in search and advertising for practices that harm competition as well as consumers. Texas Attorney General Ken Paxton is leading the bipartisan pack.

The investigation includes all the states, except for California and Alabama.

Google has the power to put a user on page 1 or 100. European regulators have charged Google with abusing that power and, following years-long investigations, they issued multi-billion-dollar fines. The tech giant, along with Facebook, controls nearly 60% of all digital advertising, according to eMarketer. A wide range of businesses that must publicize their services — be it a hair stylist, a hospital or a Fortune 500 company — must abide by the terms and prices set by two companies. But, as eMarketer notes, the duopoly's control is diminishing as Amazon grows.

Chinese telecom giant Huawei, which has been caught in the crossfires of the Washington-Beijing trade war, on Saturday unveiled a new smart television, the first product to use its own operating system.The television will be available from Thursday in China and marks the first use of HarmonyOS, chief executive George Zhao said, adding that it will be marketed by its mid-range brand, Honor.Huawei revealed its highly-anticipated HarmonyOS on Friday as an alternative operating system for phones and other smart devices in the event that looming US sanctions prevent the firm from using Android technology.American companies are theoretically no longer allowed to sell technology products to Huawei, but a three-month exemption period -- which ends next week -- was granted by Washington before the measure came into force.That ban could stop the tech giant from getting hold of key hardware and software, including smartphone chips and elements of the Google Android operating system, which runs the vast majority of smartphones in the world, including Huawei's.Huawei -- considered the world leader in fast fifth-generation or 5G equipment and the world's number two smartphone producer -- has been blacklisted by US President Donald Trump amid suspicions it provides a backdoor for Chinese intelligence services, which the firm denies.

The U.S. Department of Justice is investigating whether big technology companies are engaged in anticompetitive behavior, addressing a rising tide of criticism they have become too powerful to the detriment of consumers.

The Justice Department has said it will investigate “whether and how” online platforms in “search, social media, and some retail services online” are engaging in behavior that stifles competition and harms consumers. While the Justice Department did not name any targets in announcing the probe on Tuesday, sources have indicated Alphabet Inc’s Google, social media giant Facebook Inc, online retailer Amazon.com Inc and possibly Apple Inc will likely be reviewed. Here’s what regulators could focus on at the big technology companies:

While there is considerable telecom hubris regarding the 5G rollout and increasing speculation that the next generation of wireless is not yet ready for Prime Time, the industry continues to make promises to Rural America that it has no intention of fulfilling. Decades-long promises to deliver digital Utopia to rural America by T-Mobile, Verizon and AT&T have never materialized.  

In 2017, the USDA reported that 29% of American farms had no internet access. The FCC says that 14 million rural Americans and 1.2 million Americans living on tribal lands do not have 4G LTE on their phones, and that 30 million rural residents do not have broadband service compared to 2% of urban residents.  It’s beginning to sound like a Third World country. Despite an FCC $4.5 billion annual subsidy to carriers to provide broadband service in rural areas, the FCC reports that ‘over 24 million Americans do not have access to high-speed internet service, the bulk of them in rural area”while a  Microsoft Study found that  “162 million people across the US do not have internet service at broadband speeds.” At the same time, only three cable companies have access to 70% of the market in a sweetheart deal to hike rates as they avoid competition and the FCC looks the other way.  The FCC believes that it would cost $40 billion to bring broadband access to 98% of the country with expansion in rural America even more expensive.  While the FCC has pledged a $2 billion, ten year plan to identify rural wireless locations, only 4 million rural American businesses and homes will be targeted, a mere drop in the bucket. Which brings us to rural mapping: Since the advent of the digital age, there have been no accurate maps identifying where broadband service is available in rural America and where it is not available.  The FCC has a long history of promulgating unreliable and unverified carrier-provided numbers as the Commission has repeatedly ‘bungled efforts to produce accurate broadband maps” that would have facilitated rural coverage. During the Senate Commerce Committee hearing on April 10th regarding broadband mapping, critical testimony questioned whether the FCC and/or the telecom industry have either the commitment or the proficiency to provide 5G to rural America.  Members of the Committee shared concerns that 5G might put rural America further behind the curve so as to never catch up with the rest of the country

Perhaps it goes without saying that 5G promises to be highly profitable for wireless and tech companies. Some industry analysts have predicted that 5G could generate up to $12.3 trillion in goods and services by 2035, and add 22 million jobs in the U.S. alone. This helps explain why the carriers are so eager for us to share their vision for a better tomorrow — a world in which bandwidth, speed, and growth are virtues in and of themselves. Those “key performance indicators” are then sold to the consumer in the form of efficiency, inclusion, reliability, and convenience. And while these 5G speculations suggest a world of possibility and profit, they elide lots of potential risks and alternative futures. They also, unsurprisingly, fail to ask about the wisdom of entrusting the telecom industry (which has a long history of unscrupulous, monopolistic business practices) and the tech industry (newly under fire for similar reasons) to build what is purportedly the critical infrastructure for a planned global transformation.

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.

As it continues to explore new business models that may work in a world focused on privacy rather than broadly sharing data online, Facebook on Tuesday revealed plans for its own global digital currency, Libra, which aims to allow users to make purchases or send money with close to zero transaction fees. Facebook said it hopes Libra will make it easier for the estimated 1.7 billion unbanked adults worldwide to access banking services and transfer money electronically. “Just as people can use their phones to message friends anywhere in the world today, with Libra, the same can be done with money — instantly, securely and at a low cost,” Facebook said in a Libra white paper.

Users will be able to make transactions with Libra by 2020, Facebook says, both through a standalone app called Calibra as well as with Facebook’s own family of apps. Unlike bitcoin and some similar offerings, the price of Libra is tied to low-risk assets, which should prevent the speculative behavior and wild price swings plaguing other digital currencies. The currency will be overseen by the Libra Association, a Switzerland-based collective of more than a dozen companies, including Visa, Uber and Mastercard, each of whom have invested at least $10 million in the technology. Users of Libra will pay $1 to use Libra which will sit in a bank account and earn interest which will pay the Libra Association.

Maine internet service providers will face the strictest consumer privacy protections in the nation under a bill signed Thursday by Gov. Janet Mills, but the new law will almost certainly be challenged in court. Several technology and communication trade groups warned in testimony before the Legislature that the measure may be in conflict with federal law and would likely be the subject of legal action.

The new law, which goes into effect on July 1, 2020, would require providers to ask for permission before they sell or share any of their customers’ data to a third party. The law would also apply to telecommunications companies that provide access to the internet via their cellular networks.

The law is modeled on a Federal Communications Commission rule, adopted under the administration of President Obama but overturned by the administration of President Trump in 2017. The rule blocked an ISP from selling a customer’s personal data, which is not prohibited under federal law.

Israel is aiming to build an international coalition to force the world’s leading social media giants to prevent their platforms from being abused to peddle incitement to terrorism. The move, which was unveiled by Public Security Minister Gilad Erdan at Sunday’s cabinet meeting, aims at requiring Facebook, Twitter, Youtube, and other social networks to take greater responsibility for such content.

While some experts consider the idea unworkable — arguing that the terms of service of such platforms protect them from any legal threat, and that the preventative measures Erdan wants to see introduced are not possible technologically, others say a coalition pushing for change could be effective, and certainly stands more of a chance than an effort led by Israel alone.

A Chinese internet technology company has announced a plan to provide free satellite internet worldwide by 2026, joining companies like SpaceX, Facebook and Google in the mission to run a global internet service.

Shanghai-based company LinkSure Network, which says its mission is to bridge the world's digital inequalities, unveiled on Tuesday the first satellite in their ambitious plan to ensure that everyone in the world can access the internet free of charge.The plan — dubbed the "LinkSure Swarm Constellation System" — would see 272 satellites set at different orbits and heights in order to span the entire globe.The first satellite, LinkSure No 1, is set to launch in north-west China in 2019 from the Jiuquan Satellite Launch Centre as part of the payload on board one of China's Long March rockets.Ten further satellites will be sent into orbit by 2020.