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The Justice Department is examining Apple’s tactics in the market for digital music, and its staff members have talked to major music labels and Internet music companies, according to several people briefed on the conversations.

But people briefed on the inquiries also said investigators had asked in particular about recent allegations that Apple used its dominant market position to persuade music labels to refuse to give the online retailer Amazon.com exclusive access to music about to be released.

The inquiry is one of several by the federal government involving Apple. The Federal Trade Commission is moving ahead with a separate investigation of Apple’s rules for developers who create applications for the iPhone operating system, according to a person familiar with that discussion. That inquiry, initiated by complaint from Adobe Systems, the maker of the Flash format for Internet video, is said to be in its early stages as well.

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.

Hong said Apple dropped to fourth place in global smartphone sales, shipping 35.3 million iPhones in 2Q19 compared to the 36.2 million units shipped by Oppo, 58.7 million units by Huawei, and 75.1 million units by Samsung. "Apple continues to face challenges in terms of unit shipments -- a trend that is unlikely to be fixed soon," Hong said. While Apple has been marketing overpriced iPhones, Samsung, Huawei, and Oppo have been quickly building market share, taking some of it away from Apple, by offering reasonably priced smartphones.

The World Wide Web Consortium (W3C), once the force for open standards that kept browsers from locking publishers to their proprietary capabilities, has changed its mission. Since 2013, the organization has provided a forum where today's dominant browser companies and the dominant entertainment companies can collaborate on a system to let our browsers control our behavior, rather than the other way. This system, "Encrypted Media Extensions" (EME) uses standards-defined code to funnel video into a proprietary container called a "Content Decryption Module." For a new browser to support this new video streaming standard -- which major studios and cable operators are pushing for -- it would have to convince those entertainment companies or one of their partners to let them have a CDM, or this part of the "open" Web would not display in their new browser. This is the opposite of every W3C standard to date: once, all you needed to do to render content sent by a server was follow the standard, not get permission. If browsers had needed permission to render a page at the launch of Mozilla, the publishers would have frozen out this new, pop-up-blocking upstart. Kiss Firefox goodbye, in other words.

The W3C didn't have to do this. No copyright law says that making a video gives you the right to tell people who legally watch it how they must configure their equipment. But because of the design of EME, copyright holders will be able to use the law to shut down any new browser that tries to render the video without their permission. That's because EME is designed to trigger liability under section 1201 of the Digital Millennium Copyright Act (DMCA), which says that removing a digital lock that controls access to a copyrighted work without permission is an offense, even if the person removing the lock has the right to the content it restricts. In other words, once a video is sent with EME, a new company that unlocks it for its users can be sued, even if the users do nothing illegal with that video. We proposed that the W3C could protect new browsers by making their members promise not to use the DMCA to attack new entrants in the market, an idea supported by a diverse group of W3C members, but the W3C executive overruled us saying the work would go forward with no safeguards for future competition. It's even worse than at first glance. The DMCA isn't limited to the USA: the US Trade Representative has spread DMCA-like rules to virtually every country that does business with America. Worse still: the DMCA is also routinely used by companies to threaten and silence security researchers who reveal embarrassing defects in their products. The W3C also declined to require its members to protect security researchers who discover flaws in EME, leaving every Web user vulnerable to vulnerabilities whose disclosure can only safely take place if the affected company decides to permit it.

The W3C needs credibility with people who care about the open Web and innovation in order to be viable. They are sensitive to this kind of criticism. We empathize. There are lots of good people working there, people who genuinely, passionately want the Web to stay open to everyone, and to be safe for its users. But the organization made a terrible decision when it opted to provide a home for EME, and an even worse one when it overruled its own members and declined protection for security research and new competitors. It needs to hear from you now. Please share this post, and spread the word. Help the W3C be the organization it is meant to be.

A new study says that the U.S. tech industry is likely to lose more than $35 billion from foreign customers by 2016 because of concerns over government surveillance.“In short, foreign customers are shunning U.S. companies,” the authors of a new study from the Information Technology and Innovation Foundation write.ADVERTISEMENT“The U.S. government’s failure to reform many of the NSA’s surveillance programs has damaged the competitiveness of the U.S. tech sector and cost it a portion of the global market share,” they said.The think tank’s report found that the cost to the tech sector associated with ongoing concerns over surveillance programs run out of the U.S. was likely to “far exceed” $35 billion by 2016, an earlier estimate set by the group.

The group said that lawmakers must enact additional reforms to surveillance policy if they wish to help the tech sector regain the trust of foreign customers. That includes opposing “backdoors,” which allow law enforcement to access otherwise encrypted data, and signing off on trade agreements, including the controversial Trans-Pacific Partnership, that “ban digital protectionism.”The study’s authors found that the revelations about broad U.S. surveillance programs acted as a justification for foreign policymakers to enact protectionist policies aimed at aiding their own domestic technology sectors.Foreign companies have also used the information about U.S. surveillance programs to their advantage.“Some European companies have begun to highlight where their digital services are hosted as an alternative to U.S. companies,” the authors write.

American companies, they found, have lost contracts to foreign competitors over fears about mass surveillance.Earlier this month, President Obama signed the USA Freedom Act, a bill that reformed the three Patriot Act provisions that authorized the bulk, warrantless collection of Americans’ phone records. The bill was widely supported by technology companies, including giants like Apple and Google.

When Israeli Prime Minister Benjamin Netanyahu met with Google chairman Eric Schmidt on Tuesday afternoon, he boasted about Israel’s “robust hi-tech and cyber industries.” According to The Jerusalem Post, “Netanyahu also noted that ‘Israel was making great efforts to diversify the markets with which it is trading in the technological field.'” Just how diversified and developed Israeli hi-tech innovation has become was revealed the very next morning, when the Russian cyber-security firm Kaspersky Labs, which claims more than 400 million users internationally, announced that sophisticated spyware with the hallmarks of Israeli origin (although no country was explicitly identified) had targeted three European hotels that had been venues for negotiations over Iran’s nuclear program.

Wednesday’s Wall Street Journal, one of the first news sources to break the story, reported that Kaspersky itself had been hacked by malware whose code was remarkably similar to that of a virus attributed to Israel. Code-named “Duqu” because it used the letters DQ in the names of the files it created, the malware had first been detected in 2011. On Thursday, Symantec, another cyber-security firm, announced it too had discovered Duqu 2 on its global network, striking undisclosed telecommunication sites in Europe, North Africa, Hong Kong, and  Southeast Asia. It said that Duqu 2 is much more difficult to detect that its predecessor because it lives exclusively in the memory of the computers it infects, rather than writing files to a drive or disk. The original Duqu shared coding with — and was written on the same platform as — Stuxnet, the computer worm  that partially disabled enrichment centrifuges in Iranian nuclear power plants, according to a 2012 report in The New York Times. Intelligence and military experts said that Stuxnet was first tested at Dimona, a nuclear-reactor complex in the Negev desert that houses Israel’s own clandestine nuclear weapons program. While Stuxnet is widely believed to have been a joint Israeli-U.S. operation, Israel seems to have developed and implemented Duqu on its own.

Coding of the spyware that targeted two Swiss hotels and one in Vienna—both sites where talks were held between the P5+1 and Iran—so closely resembled that of Duqu that Kaspersky has dubbed it “Duqu 2.” A Kaspersky report contends that the new and improved Duqu would have been almost impossible to create without access to the original Duqu code. Duqu 2’s one hundred “modules” enabled the cyber attackers to commandeer infected computers, compress video feeds  (including those from hotel surveillance cameras), monitor and disrupt telephone service and Wi-Fi, and steal electronic files. The hackers’ penetration of computers used by the front desk would have allowed them to determine the room numbers of negotiators and delegation members. Duqu 2 also gave the hackers the ability to operate two-way microphones in the hotels’ elevators and control their alarm systems.

1. U.S. and European antitrust cases put lawyers and non-technologists in charge of important final product decisions.

The company long resisted releasing pertinent interoperability information in the United States. On the European Continent, this resistance led to huge fines. Meanwhile, Microsoft steered away from exclusive contracts and from pushing into adjacent markets.

"When NSA whistleblower Edward Snowden came forth last year with U.S. government spying secrets, it didn't take long to realize that some of the information revealed could bring on serious repercussions — not just for the U.S. government, but also for U.S.-based companies. The latest to feel the hit? None other than Apple, and in a region the company has been working hard to increase market share: China. China, via state media, has today declared that Apple's iPhone is a threat to national security — all because of its thorough tracking capabilities. It has the ability to keep track of user locations, and to the country, this could potentially reveal "state secrets" somehow. It's being noted that the iPhone will continue to track the user to some extent even if the overall feature is disabled. China's iPhone ousting comes hot on the heels of Russia's industry and trade deeming AMD and Intel processors to be untrustworthy. The nation will instead be building its own ARM-based "Baikal" processor.

Facebook is in early talks with the US Federal Trade Commission over settling an investigation into privacy violations that could result in a record fine for the technology company, according to several people familiar with the situation. The US watchdog is investigating whether the social network broke a consent order that it signed with the FTC in 2011, which required it to be clear with users about how their data were being shared with third parties.According to two people familiar with the talks, negotiations over a settlement have started although no monetary figure has been agreed.The FTC opened its investigation into the social network’s privacy practices in March last year following the Cambridge Analytica scandal, in which the data of 87m users was improperly accessed by a third party. David Vladeck, a former FTC director who oversaw the 2011 agreement with Facebook, said he expected a major financial penalty. “I think it’s highly unlikely the FTC would impose a civil penalty under a billion dollars,” he said.

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

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.