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NATO has announced that it is launching an “information war” against Russia. The UK publicly announced a battalion of keyboard warriors to spread disinformation. It’s well-documented that the West has long used false propaganda to sway public opinion. Western military and intelligence services manipulate social media to counter criticism of Western policies. Such manipulation includes flooding social media with comments supporting the government and large corporations, using armies of sock puppets, i.e. fake social media identities. See this, this, this, this and this. In 2013, the American Congress repealed the formal ban against the deployment of propaganda against U.S. citizens living on American soil. So there’s even less to constrain propaganda than before.

Information warfare for propaganda purposes also includes: The Pentagon, Federal Reserve and other government entities using software to track discussion of political issues … to try to nip dissent in the bud before it goes viral “Controlling, infiltrating, manipulating and warping” online discourse Use of artificial intelligence programs to try to predict how people will react to propaganda

Some of the propaganda is spread by software programs. We pointed out 6 years ago that people were writing scripts to censor hard-hitting information from social media. One of America’s top cyber-propagandists – former high-level military information officer Joel Harding – wrote in December: I was in a discussion today about information being used in social media as a possible weapon.  The people I was talking with have a tool which scrapes social media sites, gauges their sentiment and gives the user the opportunity to automatically generate a persuasive response. Their tool is called a “Social Networking Influence Engine”. *** The implications seem to be profound for the information environment. *** The people who own this tool are in the civilian world and don’t even remotely touch the defense sector, so getting approval from the US Department of State might not even occur to them.

The nation’s top technology firms and a coalition of privacy groups are urging Congress to place curbs on government surveillance in the face of a fast-approaching deadline for legislative action. A set of key Patriot Act surveillance authorities expire June 1, but the effective date is May 21 — the last day before Congress breaks for a Memorial Day recess. In a letter to be sent Wednesday to the Obama administration and senior lawmakers, the coalition vowed to oppose any legislation that, among other things, does not ban the “bulk collection” of Americans’ phone records and other data.

We know that there are some in Congress who think that they can get away with reauthorizing the expiring provisions of the Patriot Act without any reforms at all,” said Kevin Bankston, policy director of New America Foundation’s Open Technology Institute, a privacy group that organized the effort. “This letter draws a line in the sand that makes clear that the privacy community and the Internet industry do not intend to let that happen without a fight.” At issue is the bulk collection of Americans’ data by intelligence agencies such as the National Security Agency. The NSA’s daily gathering of millions of records logging phone call times, lengths and other “metadata” stirred controversy when it was revealed in June 2013 by former NSA contractor Edward Snowden. The records are placed in a database that can, with a judge’s permission, be searched for links to foreign terrorists.They do not include the content of conversations.

That program, placed under federal surveillance court oversight in 2006, was authorized by the court in secret under Section 215 of the Patriot Act — one of the expiring provisions. The public outcry that ensued after the program was disclosed forced President Obama in January 2014 to call for an end to the NSA’s storage of the data. He also appealed to Congress to find a way to preserve the agency’s access to the data for counterterrorism information.

Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.

Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.

On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.

The U.S. military is spending millions on an advanced implant that would allow a human brain to communicate directly with computers.If it succeeds, cyborgs will be a reality.The Pentagon's research arm, the Defense Advanced Research Projects Agency (DARPA), hopes the implant will allow humans to directly interface with computers, which could benefit people with aural and visual disabilities, such as veterans injured in combat.The goal of the proposed implant is to "open the channel between the human brain and modern electronics" according to DARPA's program manager, Phillip Alvelda.

DARPA sees the implant as providing a foundation for new therapies that could help people with deficits in sight or hearing by "feeding digital auditory or visual information into the brain."A spokesman for DARPA told CNN that the program is not intended for military applications.

But some experts see such an implant as having the potential for numerous applications, including military ones, in the field of wearable robotics -- which aims to augment and restore human performance.Conor Walsh, a professor of mechanical and biomedical engineering at Harvard University, told CNN that the implant would "change the game," adding that "in the future, wearable robotic devices will be controlled by implants."Walsh sees the potential for wearable robotic devices or exoskeletons in everything from helping a medical patient recover from a stroke to enhancing soldiers' capabilities in combat.The U.S. military is currently developing a battery-powered exoskeleton, the Tactical Assault Light Operator Suit, to provide superior protection from enemy fire and in-helmet technologies that boost the user's communications ability and vision.The suits' development is being overseen by U.S. Special Operations Command.In theory, the proposed neural implant would allow the military member operating the suit to more effectively control the armored exoskeleton while deployed in combat.

Ecuador and Sweden have signed a pact that would allow WikiLeaks founder Julian Assange to be questioned by Swedish authorities at Ecuador's embassy in London where he has been holed up for more than three years since facing sexual assault charges, the Quito government said.The legal agreement was signed in the Ecuadorean capital after half a year of negotiations."It is, without doubt, an instrument that strengthens bilateral relations and will facilitate, for example, the fulfillment of judicial matters such as the questioning of Mr. Assange," the foreign ministry said in a weekend statement.Assange, 44, took refuge in the embassy building in June 2012 to avoid extradition to Sweden, where he is wanted for questioning over allegations of sexual assault and rape against two women in 2010. The Australian denies the accusations.

Assange says he fears Sweden will extradite him to the United States where he could be put on trial over WikiLeaks' publication of classified military and diplomatic documents five years ago, one of the largest information leaks in U.S. history. Britain, which has accused Ecuador of preventing the course of justice by allowing Assange to remain in its embassy in the upmarket central London area of Knightsbridge, welcomed the agreement."It is for the Swedish Prosecutor to decide how they now proceed with a legal case," a spokeswoman for the British Foreign Office said.

The European Parliament narrowly adopted a nonbinding but nonetheless forceful resolution on Thursday urging the 28 nations of the European Union to recognize Edward J. Snowden as a “whistle-blower and international human rights defender” and shield him from prosecution.On Twitter, Mr. Snowden, the former National Security Agency contractor who leaked millions of documents about electronic surveillance by the United States government, called the vote a “game-changer.” But the resolution has no legal force and limited practical effect for Mr. Snowden, who is living in Russia on a three-year residency permit.Whether to grant Mr. Snowden asylum remains a decision for the individual European governments, and none have done so thus far. Continue reading the main story Related Coverage Open Source: Now Following the N.S.A. on Twitter, @SnowdenSEPT. 29, 2015 Snowden Sees Some Victories, From a DistanceMAY 19, 2015 Still, the resolution was the strongest statement of support seen for Mr. Snowden from the European Parliament. At the same time, the close vote — 285 to 281 — suggested the extent to which some European lawmakers are wary of alienating the United States.

The resolution calls on European Union members to “drop any criminal charges against Edward Snowden, grant him protection and consequently prevent extradition or rendition by third parties.”In June 2013, shortly after Mr. Snowden’s leaks became public, the United States charged him with theft of government property and violations of the Espionage Act of 1917. By then, he had flown to Moscow, where he spent weeks in legal limbo before he was granted temporary asylum and, later, a residency permit.Four Latin American nations have offered him permanent asylum, but he does not believe he could travel from Russia to those countries without running the risk of arrest and extradition to the United States along the way.

The White House, which has used diplomatic efforts to discourage even symbolic resolutions of support for Mr. Snowden, immediately criticized the resolution.“Our position has not changed,” said Ned Price, a spokesman for the National Security Council in Washington.“Mr. Snowden is accused of leaking classified information and faces felony charges here in the United States. As such, he should be returned to the U.S. as soon as possible, where he will be accorded full due process.”Jan Philipp Albrecht, one of the lawmakers who sponsored the resolution in Europe, said it should increase pressure on national governments.

AFTER MORE THAN a month of insisting that Apple weaken its security to help the FBI break into San Bernardino killer Syed Rizwan Farook’s iPhone, the government has dropped its legal fight. “The government has now successfully accessed the data stored on Farook’s iPhone and therefore no longer requires the assistance from Apple,” wrote attorneys for the Department of Justice on Monday evening. It’s not yet known if anything valuable was stored on the phone, however. “The FBI is currently reviewing the information on the phone, consistent with standard investigatory procedures,” said Department of Justice spokesperson Melanie Newman in a statement.

Lawmakers in the United States and the United Kingdom are calling on Facebook chief executive Mark Zuckerberg to explain how the names, preferences and other information from tens of millions of users ended up in the hands of the Cambridge Analytica data analysis firm.

After Facebook cited data privacy policies violations and announced that it was suspending the Cambridge Analytica data analytics firm also tied to the Trump campaign, new revelations have emerged. On Saturday, reports revealed that Cambridge Analytica, used a feature once available to Facebook app developers to collect information on some 270,000 people. In the process, the company, which was, at the time, handling U.S. President Donald Trump’s presidential campaign, gained access to data on tens of millions of their Facebook “friends” and that it wasn’t clear at all if any of these people had given explicit permission for this kind of sharing. Facebook’s Deputy General Counsel Paul Grewal said in a statement, “We will take legal action if necessary to hold them responsible and accountable for any unlawful behavior.”

The social media giant also added that it was continuing to investigate the claims. According to reports, Cambridge Analytica worked for the failed presidential campaign of U.S. Senator Ted Cruz and then for the presidential campaign of Donald Trump. Federal Election Commission records reportedly show that Trump’s campaign hired Cambridge Analytica in June 2016 and paid it more than $6.2 million. On its website, the company says that it “provided the Donald J. Trump for President campaign with the expertise and insights that helped win the White House.” Cambridge Analytica also mentions that it uses “behavioral microtargeting,” or combining analysis of people’s personalities with demographics, to predict and influence mass behavior.  According to the company, it has data on 220 million Americans, two thirds of the U.S. population. Cambridge Analytica says it has worked on other campaigns in the United States and other countries, and it is funded by Robert Mercer, a prominent supporter of politically conservative groups.

Where power is not overtly totalitarian, wealthy elites have bought up all media, first in print, then radio, then television, and used it to advance narratives that are favorable to their interests. Not until humanity gained widespread access to the internet has our species had the ability to freely and easily share ideas and information on a large scale without regulation by the iron-fisted grip of power. This newfound ability arguably had a direct impact on the election for the most powerful elected office in the most powerful government in the world in 2016, as a leak publishing outlet combined with alternative and social media enabled ordinary Americans to tell one another their own stories about what they thought was going on in their country.This newly democratized narrative-generating power of the masses gave those in power an immense fright, and they’ve been working to restore the old order of power controlling information ever since. And the editor-in-chief of the aforementioned leak publishing outlet, WikiLeaks, has been repeatedly trying to warn us about this coming development.

In a statement that was recently read during the “Organising Resistance to Internet Censorship” webinar, sponsored by the World Socialist Web Site, Assange warned of how “digital super states” like Facebook and Google have been working to “re-establish discourse control”, giving authority over how ideas and information are shared back to those in power.Assange went on to say that the manipulative attempts of world power structures to regain control of discourse in the information age has been “operating at a scale, speed, and increasingly at a subtlety, that appears likely to eclipse human counter-measures.”What this means is that using increasingly more advanced forms of artificial intelligence, power structures are becoming more and more capable of controlling the ideas and information that people are able to access and share with one another, hide information which goes against the interests of those power structures and elevate narratives which support those interests, all of course while maintaining the illusion of freedom and lively debate.

To be clear, this is already happening. Due to a recent shift in Google’s “evaluation methods”, traffic to left-leaning and anti-establishment websites has plummeted, with sites like WikiLeaks, Alternet, Counterpunch, Global Research, Consortium News, Truthout, and WSWS losing up to 70 percent of the views they were getting prior to the changes. Powerful billionaire oligarchs Pierre Omidyar and George Soros are openly financing the development of “an automated fact-checking system” (AI) to hide “fake news” from the public.

A growing number of leading left-wing websites have confirmed that their search traffic from Google has plunged in recent months, adding to evidence that Google, under the cover of a fraudulent campaign against fake news, is implementing a program of systematic and widespread censorship. Truthout, a not-for-profit news website that focuses on political, social, and ecological developments from a left progressive standpoint, had its readership plunge by 35 percent since April. The Real News , a nonprofit video news and documentary service, has had its search traffic fall by 37 percent. Another site, Common Dreams , last week told the WSWS that its search traffic had fallen by up to 50 percent. As extreme as these sudden drops in search traffic are, they do not equal the nearly 70 percent drop in traffic from Google seen by the WSWS. “This is political censorship of the worst sort; it’s just an excuse to suppress political viewpoints,” said Robert Epstein, a former editor in chief of Psychology Today and noted expert on Google. Epstein said that at this point, the question was whether the WSWS had been flagged specifically by human evaluators employed by the search giant, or whether those evaluators had influenced the Google Search engine to demote left-wing sites. “What you don’t know is whether this was the human evaluators who are demoting you, or whether it was the new algorithm they are training,” Epstein said.

Richard Stallman, the world-renowned technology pioneer and a leader of the free software movement, said he had read the WSWS’s coverage on Google’s censorship of left-wing sites. He warned about the immense control exercised by Google over the Internet, saying, “For people’s main way of finding articles about a topic to be run by a giant corporation creates an obvious potential for abuse.” According to data from the search optimization tool SEMRush, search traffic to Mr. Stallman’s personal website, Stallman.org, fell by 24 percent, while traffic to gnu.org, operated by the Free Software Foundation, fell 19 percent. Eric Maas, a search engine optimization consultant working in the San Francisco Bay area, said his team has surveyed a wide range of alternative news sites affected by changes in Google’s algorithms since April.  “While the update may be targeting specific site functions, there is evidence that this update is promoting only large mainstream news organizations. What I find problematic with this is that it appears that some sites have been targeted and others have not.” The massive drop in search traffic to the WSWS and other left-wing sites followed the implementation of changes in Google’s search evaluation protocols. In a statement issued on April 25, Ben Gomes, the company’s vice president for engineering, stated that Google’s update of its search engine would block access to “offensive” sites, while working to surface more “authoritative content.” In a set of guidelines issued to Google evaluators in March, the company instructed its search evaluators to flag pages returning “conspiracy theories” or “upsetting” content unless “the query clearly indicates the user is seeking an alternative viewpoint.”

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.

That didn't take long. Securus -- you know, that company that lets cops track phones in real time with what amounts to a "pinky promise," according to US Sen. Ron Wyden -- has reportedly been hacked.The hacker, according to Motherboard, was able to get away with, at a minimum, a spreadsheet containing 2,800 logins and poorly encrypted passwords, some of which had already been cracked. Motherboard says it tested a number of logins to corroborate the hacker's story.Securus on Friday confirmed in a statement that "a subset of certain non-consumer administrative user account information (e.g., usernames, email addresses, and phone numbers) had been unlawfully accessed" and said it's launched an investigation into the breach. It's found no evidence that the breach is related to its location-based services, but it's disabled location-based data in the meantime "in an abundance of caution."Last Thursday, The New York Times revealed that Securus Technologies, which monitors calls to US prison inmates, has been used by a former Missouri sheriff to monitor people's phones and track their location. Wyden has called on federal authorities to investigate the company and its practices as they relate to people's privacy.

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.

Vowing to take on the telecom giants that have monopolized the web for private profit, Sen. Bernie Sanders on Friday unveiled a $150 billion plan to make the internet a public utility, break up and tightly regulate corporate behemoths like Verizon and AT&T, and provide high-speed broadband for everyone in the United States.

It is outrageous that across the country millions of Americans and so many of our communities do not have access to affordable high-speed internet," Sanders, a 2020 Democratic presidential candidate, said in a statement. "Access to the internet is a necessity in today's economy, and it should be available for all." Sanders vowed that, if elected president in 2020, he will ensure that every American household has affordable and high-speed internet by the end of his first term.

Sanders' plan, posted on his website, would provide $150 billion in federal funding through the Green New Deal to help states and municipalities "build publicly owned and democratically controlled, co-operative, or open access broadband networks." The proposal also calls for: Reinstating the net neutrality protections that President Donald Trump's telecom-friendly FCC repealed in 2017; Using anti-trust laws to break up internet and cable monopolies; Ensuring that all public housing in the U.S. offers free broadband; Requiring all providers to "offer a Basic Internet Plan that provides quality broadband speeds at an affordable price"; and Guaranteeing that all new broadband infrastructure is "resilient to the effects of climate change" and "capable of managing high amounts of renewable energy."

After NBC News on Wednesday published a trove of leaked documents that show how Facebook "treated user data as a bargaining chip with external app developers," White House hopeful Sen. Bernie Sanders declared that it is time "to break Facebook up."

When British investigative journalist Duncan Campbell first shared the trove of documents with a handful of media outlets including NBC News in April, journalists Olivia Solon and Cyrus Farivar reported that "Facebook CEO Mark Zuckerberg oversaw plans to consolidate the social network's power and control competitors by treating its users' data as a bargaining chip, while publicly proclaiming to be protecting that data." With the publication Wednesday of nearly 7,000 pages of records—which include internal Facebook emails, web chats, notes, presentations, and spreadsheets—journalists and the public can now have a closer look at exactly how the company was using the vast amount of data it collects when it came to bargaining with third parties.

The document dump comes as Facebook and Zuckerberg are facing widespread criticism over the company's political advertising policy, which allows candidates for elected office to lie in the ads they pay to circulate on the platform. It also comes as 47 state attorneys general, led by Letitia James of New York, are investigating the social media giant for antitrust violations.

A New York-led probe into allegations that Facebook Inc put consumer data at risk and pushed up advertising rates has expanded to include attorneys general from 47 U.S. states and territories, New York Attorney General Letitia James said in a statement on Tuesday.

The investigation of Facebook announced in September had included Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia. It now includes most U.S. states as well as the U.S. territory of Guam.

Some states, particularly New York and Nebraska, have raised concerns that Facebook and other big tech companies engage in anti-competitive practices, expose consumer data to potential data theft and push up advertising prices.

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.”

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.

The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”

Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.