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Javier E

Welcome to the blah blah blah economy - 0 views

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unpredictable economy global

started by Javier E on 17 Dec 22 no follow-up yet
katyshannon

Apple Fights Order to Unlock San Bernardino Gunman's iPhone - The New York Times - 0 views

  • Last month, some of President Obama’s top intelligence advisers met in Silicon Valley with Apple’s chief, Timothy D. Cook, and other technology leaders in what seemed to be a public rapprochement in their long-running dispute over the encryption safeguards built into their devices.
  • But behind the scenes, relations were tense, as lawyers for the Obama administration and Apple held closely guarded discussions for over two months about one particularly urgent case: The F.B.I. wanted Apple to help “unlock” an iPhone used by one of the two attackers who killed 14 people in San Bernardino, Calif., in December, but Apple was resisting.
  • When the talks collapsed, a federal magistrate judge, at the Justice Department’s request, ordered Apple to bypass security functions on the phone.
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  • The order set off a furious public battle on Wednesday between the Obama administration and one of the world’s most valuable companies in a dispute with far-reaching legal implications.
  • This is not the first time a technology company has been ordered to effectively decrypt its own product. But industry experts say it is the most significant because of Apple’s global profile, the invasive steps it says are being demanded and the brutality of the San Bernardino attacks.
  • Law enforcement officials who support the F.B.I.’s position said that the impasse with Apple provided an ideal test case to move from an abstract debate over the balance between national security and privacy to a concrete one
  • The F.B.I. has been unable to get into the phone used by Syed Rizwan Farook, who was killed by the police along with his wife after they attacked Mr. Farook’s co-workers at a holiday gathering.
  • Magistrate Judge Sheri Pym of the Federal District Court for the District of Central California issued her order Tuesday afternoon, after the F.B.I. said it had been unable to get access to the data on its own and needed Apple’s technical assistance.
  • Mr. Cook, the chief executive at Apple, responded Wednesday morning with a blistering, 1,100-word letter to Apple customers, warning of the “chilling” breach of privacy posed by the government’s demands. He maintained that the order would effectively require it to create a “backdoor” to get around its own safeguards, and Apple vowed to appeal the ruling by next week.
  • Apple argues that the software the F.B.I. wants it to create does not exist. But technologists say the company can do it.
  • pple executives had hoped to resolve the impasse without having to rewrite their own encryption software. They were frustrated that the Justice Department had aired its demand in public, according to an industry executive with knowledge of the case, who spoke on the condition of anonymity about internal discussions.
  • The dispute could initiate legislation in Congress, with Republicans and Democrats alike criticizing Apple’s stance on Wednesday and calling for tougher decryption requirements.
  • His vote of confidence was significant because James Comey, the F.B.I. director, has at times been at odds with the White House over his aggressive advocacy of tougher decryption requirements on technology companies. While Mr. Obama’s national security team was sympathetic to Mr. Comey’s position, others at the White House viewed legislation as potentially perilous. Late last year, Mr. Obama refused to back any legislation requiring decryption, leaving a court fight likely.
  • The Justice Department and the F.B.I. have the White House’s “full support,” the spokesman, Josh Earnest, said on Wednesday.
  • Donald J. Trump, the Republican presidential contender, also attacked Apple on Fox News, asking, “Who do they think they are?”
  • But Apple had many defenders of its own among privacy and consumer advocates, who praised Mr. Cook for standing up to what they saw as government overreach.
  • Many of the company’s defenders argued that the types of government surveillance operations exposed in 2013 by Edward J. Snowden, the former National Security Agency contractor, have prompted technology companies to build tougher encryption safeguards in their products because of the privacy demands of their customers.
  • Privacy advocates and others said they worried that if the F.B.I. succeeded in getting access to the software overriding Apple’s encryption, it would create easy access for the government in many future investigations.
  • The Apple order is a flash point in a dispute that has been building for more than a decade. Advertisement Continue reading the main story Advertisement Continue reading the main story
  • The F.B.I. began sounding alarms years ago about technology that allowed people to exchange private messages protected by encryption so strong that government agents could not break it. In fall 2010, at the behest of Robert S. Mueller III, the F.B.I. director, the Obama administration began work on a law that required technology companies to provide unencrypted data to the government.
  • Lawyers at the F.B.I., Justice Department and Commerce Department drafted bills around the idea that technology companies in the Internet age should be bound by the same rules as phone companies, which were forced during the Clinton administration to build digital networks that government agents could tap.
  • The draft legislation would have covered app developers like WhatsApp and large companies like Google and Apple, according to current and former officials involved in the process.
  • There is no debate that, when armed with a court order, the government can get text messages and other data stored in plain text. Far less certain was whether the government could use a court order to force a company to write software or redesign its system to decode encrypted data. A federal law would make that authority clear, they said.
  • But the disclosures of government surveillance by Mr. Snowden changed the privacy debate, and the Obama administration decided not to move on the proposed legislation. It has not been revived.
  • The legal issues raised by the judge’s order are complicated. They involve statutory interpretation, rather than constitutional rights, and they could end up before the Supreme Court.
  • As Apple noted, the F.B.I., instead of asking Congress to pass legislation resolving the encryption fight, has proposed what appears to be a novel reading of the All Writs Act of 1789.
  • The law lets judges “issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law.”
Javier E

For Apple, a Search for a Moral High Ground in a Heated Debate - The New York Times - 0 views

  • Aside from the thicket of legal issues raised by the case, does Apple have a moral obligation to help the government learn more about the attack? Or does it have a moral obligation to protect its customers’ privacy? Or how about its shareholders? And which of these should take precedence?
  • Timothy D. Cook, Apple’s chief executive, has long spoken about running his company based on certain values. He has used his position to advocate gay rights, for example, and pushed the company to be more “green,” once going so far as to tell a shareholder who questioned the return on investment of taking such stances, “If you want me to do things only for R.O.I. reasons, you should get out of this stock.”
  • The debate over Apple’s stance is just the latest in a series of questions about corporate patriotism. In recent years, questions have been directed at companies that renounce their United States citizenship to move to a country with a lower tax rate. Others, including Apple, have faced questions about tax strategies to shelter income abroad. And companies’ social responsibility programs, say for clean energy or water efficiency, have been scrutinized
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  • Behind Mr. Cook’s worry is a separate, perhaps even more immediate threat: the possibility that if Apple were to comply with the court’s order, other governments might follow suit and require Apple to give them access for their own investigative purposes
  • If Apple refused the request of, say, the Chinese government, it would risk being barred from doing business in China, its second-largest
  • And then there’s the possibility that if Apple were to build special software for the F.B.I., it could fall into the wrong hands, leading to even greater privacy and safety concerns.
  • Maybe that means Apple should work with law enforcement to train officials so they have a better ability to rapidly retrieve information legally? (After all, law enforcement had a chance to gain access to the iPhone in question had they taken certain steps early on.) Or maybe the president should create a commission to study the issue, bringing together people from Silicon Valley and law enforcement to create agreed-upon rules of the road. Or, perhaps new legislation is required.
  • “This has become, ladies and gentlemen, the Wild West of technology,” the Manhattan district attorney, Cyrus R. Vance Jr., said last Thursday, citing at least 175 iPhones that his office cannot gain access to, and arguing that it should be able to do so. “Apple and Google are their own sheriffs. There are no rules.”
  • Ultimately, it appears that both sides have left little room for compromise. “Tim Cook and lawyer Ted Olson have draped their argument in one of moral absolutism — but there is a hierarchy of moral reasoning they miss,” said Jeffrey Sonnenfeld
  • if this broader controversy is ever going to be solved for the long term, there has to be an opportunity to reach a consensus in the middle.
  • “What does it mean to say that ‘business’ has responsibilities?” Mr. Friedman wrote in The New York Times Magazine in 1970. Citing his book “Capitalism and Freedom,” he wrote, “There is one and only one social responsibility of business — to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”
  • “That tension should not be resolved by corporations that sell stuff for a living,” he said. “It also should not be resolved by the F.B.I., which investigates for a living. It should be resolved by the American people deciding how we want to govern ourselves in a world we have never seen before.”
malonema1

Apple Customer Data in China Was Sold Illegally, Police Say - The New York Times - 0 views

  • Apple Customer Data in China Was Sold Illegally, Police Say
  • he Chinese police said this week that they had arrested 22 people suspected of selling the personal data of an unspecified number of Apple customers. The police, in Cangnan County in the eastern province of Zhejiang, said the thieves had reaped 50 million renminbi, or about $7.3 million, over an unspecified period.
  • 20 of the 22 people worked for companies that sell Apple products or are Apple contractors
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  • In China, Apple’s products are sold broadly, in electronics chain stores and small booths in shopping malls in addition to the company’s official Apple Stores.
  • An apparent trove of login information leaked onto the Chinese internet was used to hack more than 20 million accounts on Alibaba’s e-commerce site Taobao, according to news reports.
  • Between widespread malware campaigns and a large number of new internet users, China has become a playground for internet fraudsters. Last year, China tried 361 criminal cases involving violation of personal data, up from 176 in 2015, said Xie Yongjiang, associate director for the Institute of Internet Governance and Law at the Beijing University of Posts and Telecommunications.
  • he arrests are part of a set of broader difficulties in China for Apple, which is based in Cupertino, Calif. Sales of iPhones, still a sign of middle-class aspiration in China, have slowed, according to analysts, as the public waits for new models and as Chinese manufacturers of cheaper phones step up their quality and marketing.
  • The problem is not even new to Apple. Last year, 10 employees of an Apple contractor in China were also found with data from more than 80,000 users.
sidneybelleroche

Apple is about to become the world's first $3 trillion company - CNN - 0 views

  • Apple is on the verge of yet another major milestone. The iPhone maker is close to topping a market value of more than $3 trillion — the first publicly traded company ever to be worth that much.
  • Shares of Apple (AAPL) were up about 1% in premarket trading Monday to around $181.75. The stock needs to hit $182.85 for Apple to surpass the $3 trillion mark.
  • Apple's market value first crossed the $1 trillion threshold in August 2018 and passed $2 trillion in August 2020.
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  • The company has benefited from booming demand for its new IPhone 13 and other older models as well as subscription services such as Apple Music, Apple TV+, iCloud and its popular App Store.
  • Sales surged nearly 30% to more than $83 billion in Apple's most recent quarter, which ended in September.
  • The company has a whopping $191 billion in cash as well.Read More
  • Apple may have some company in the $3 trillion club. Microsoft (MSFT) is now worth about $2.6 trillion and Google owner Alphabet's (GOOGL) market value is right around $2 trillion.
  • Still giant but further behind are Amazon (AMZN), which has a market cap of $1.7 trillion, and Elon Musk's Tesla (TSLA), worth $1 trillion.
horowitzza

There Never Was a Two-State Solution; It's Time to Move On | Jewish & Israel News Algem... - 0 views

  • The answer to the question of how to resolve the Israeli-Palestinian dispute has been to partition “Palestine” into two states. This assumes, however, that the parties only have a dispute over land; but that has never been the case. The conflict has always had political, religious, historical, geographical and psychological dimensions. The international community’s unwillingness to accept this reality has led to the continued fantasy that a two-state solution is possible.
  • The Palestinians have never been prepared to share any part of the land they claim as their own.
  • Jews have no place in the Islamic world — except as second-class citizens (dhimmis) under Muslim rule
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  • it is time acknowledge that the two-state idea, as presently conceived, is dead.
  • Today, there is little enthusiasm for territorial concessions to the Palestinians. Even those who believe that Israel should withdraw from the West Bank do not believe that it can be done so long as there is no evidence the Palestinians are interested in peace.
  • For some time, I believed that the Palestinian people wanted peace but were denied the opportunity by their leaders. But decades of incitement and educational brainwashing regarding the evils of Jews and Israel have had an impact, and now poll after poll has found opposition to peace among Palestinians
  • radical Muslims will not rest until the descendants of apes and pigs are driven from holy Islamic soil
  • the same week John Kerry was extolling the virtues of the two-state solution and skewering Israel for allegedly creating obstacles to peace through settlement construction, the ruling Fatah party celebrated the 20 most outstanding terrorist operations of all time
  • Why Kerry or anyone else would expect Israelis to make concessions to people who commemorate the murder of Jews is a psychiatric rather than a political question.
  • One problem is that the Palestinians will continue their delegitimization campaign aimed at turning Israel into a pariah, and convincing the international community to dismantle the Jewish State.
  • Another concern with the status quo is that Palestinian terrorism fueled by hopelessness, incitement and radical Islam.
  • Put simply, the majority of Palestinians have no interest in peace with Israel under any circumstances. This view is reinforced daily by their leaders’ pronouncements, the incessant terror and incitement, and an education system that teaches intolerance, denies the Jewish connection to the land of Israel and extols the virtue of martyrdom.
  • Even when Israel agreed to Obama’s demand for a 10-month settlement freeze and the Palestinians responded by refusing to negotiate, Obama did not change his view. I’m not sure whether to call that naiveté or just stupidity
  • Today’s Palestinians are no more interested in compromise than their predecessors. As the poll data above indicates, the only acceptable solution is to have one state called Palestine that encompasses the West Bank, Gaza and what is currently known as Israel.
  • A wholesale change in attitudes and leadership will have to occur if there is to be any prospect of negotiating a peace agreement. Even then, it is difficult to imagine a reversal of the Islamization of the conflict — and there can be no compromise with jihadists.
  • Despite the ease with which it is possible to prove that settlements are not the obstacle to peace (e.g., did the Arabs agree to peace during the 19 years Jordan occupied the West Bank and Egypt occupied Gaza and not a single Jewish settlement existed?), President Obama never figured this out; but he is not alone. The obsession with settlements will not go away.
  • For the last eight years, the Palestinians have refused to negotiate altogether, and their position has not changed in 80 years
  • , his failure to learn anything in eight years was apparent in his last minute UN tantrum
  • the incoming Trump officials seem to understand reality and are prepared to act accordingly by rejecting the specious notion that settlements, rather than Palestinian implacability, are the obstacle to peace.
  • Israel has evacuated approximately 94% of the territory it captured in 1967, which, it could be argued, has already satisfied UN Security Council Resolution 242’s expectation that Israel withdraw from territory
  • Most people, including all Arab leaders, ignore that resolution 242 also required that the Arab states guarantee the peace and security of Israel in exchange for withdrawal
  • ank and 100% of Gaza, and this did not bring peace; it brought more terror and should have forever buried the myth that if Israel cedes land, it will receive peace in return
  • If a Palestinian Zionist emerges tomorrow, it will still be risky for Israel to make a deal because 5, 10, or 20 years down the road, a radical Islamist or other hostile leader may emerge.
  • Advocates of the two-state solution on the Israeli side talk about a demilitarized Palestinian state, but this is not acceptable to the Palestinians because it would be a significant limitation on their sovereignty. This is another reason why the “solution” is flawed.
  • While the international community insists the settlements are an obstacle to peace, they actually can serve as a catalyst for peace.
  • to defeat the Palestinians Israel would have to apply the Powell Doctrine, which says that “every resource and tool should be used to achieve decisive force against the enemy…and ending the conflict quickly by forcing the weaker force to capitulate.”
  • Israel would have to be prepared to kill every terrorist with little regard for collateral damage; the Air Force would have to bomb refugee camps and other targets that would result in thousands of casualties rather than hundreds.
  • The United States did not flinch from killing tens of thousands of Iraqis to defeat Saddam Hussein and is unapologetic when bystanders are killed in drone strikes (never mind examples such as the Allied bombing of Dresden or the US use of the atomic bomb). Israel would have to be equally callous to “defeat” the Palestinians.
  • Israel has been unwilling to follow Powell’s guidance because the public would see the action as disproportionate and immoral, the international community would condemn Israel and the United States would force Israel to cease military operations before total victory out of moral indignation and fear of Arab/Muslim reaction.
  • Israel has learned the hard way in battles with the Palestinians and Hezbollah that it does not have the same freedom as a superpower to use decisive force, and therefore cannot militarily defeat the Palestinians.
  • The reason that none of these men annexed the West Bank is well known: Israel cannot remain a democratic, Jewish state if it assimilates 2.7 million Palestinians
  • Meanwhile, the Jewish birthrate has increased, Aliyah will accelerate as global antisemitism worsens and the Palestinians will not become a majority in Greater Israel
  • Hamas is also allied with the Muslim Brotherhood, and this would strengthen the Islamist threat to the government, which would not be in Israel’s interest.
  • “The Palestinians now realize,” Bethlehem Mayor Elias Freij said in 1991, “that time is now on the side of Israel, which can build settlements and create facts, and that the only way out of this dilemma is face-to-face negotiations.”
  • The Palestinians continued to talk until President Obama took office, and gave them the false impression that he would force Israel to stop building settlements without their having to make any concessions in return
  • Obama’s refusal to veto the latest Security Council Resolution calling settlements illegal and labeling Judaism’s holiest places in Jerusalem “occupied territory” kept Abbas’ strategy in play, but the election of Donald Trump should derail this approach for at least the next four years.
  • the Palestinians will not accept any compromise that involves coexisting with a Jewish state
  • The current leadership will remain obstinate and continue to seek international help in destroying Israel.
  • President Trump can make an important contribution to disabusing the Palestinians of the idea that Israel can be forced to capitulate to their demands by fulfilling the promise to recognize Jerusalem as Israel’s capital and moving the US embassy.
  • This would send a clear message that the Palestinians have no legitimate claim to the city and will never have a capital in Eastern Jerusalem.
  • To further hammer home the point that Jerusalem will not be divided, Israel should complete the long-delayed E1 project to connect Ma’ale Adumim with the capital.
  • The aim of this step would be to force the world to accept the reality that Israel will never relinquish these areas, and to increase pressure on the Palestinians to negotiate.
  • If the Palestinians refuse to talk or recognize the right of the Jewish people to self-determination in their homeland, Israel should formally annex the Jordan Valley
  • The world may blame Israel for the growth of settlements, but the real culprits are Yasser Arafat and Mahmoud Abbas.
  • Settlements have grown because of Palestinian rejectionism — and the situation will only get worse for them.
  • Ironically, the Palestinians could have two states instead of the one foreseen by proponents of the two-state solution. In the unlikely event of Palestinian reconciliation, a corridor could be created between Gaza and the West Bank as envisioned in the Clinton parameters.
  • Unless Palestinians radically change their attitudes, they will reject any proposal that requires coexisting with Israel. This will leave them with a shrunken Palestinian state with limited power and the possibility for a larger state permanently closed off.
  • It may be difficult to accomplish in the next four years, but Israel’s best chance of achieving this “solution” is to take advantage of having a friend in the White House.
Javier E

Coronavirus Contact Tracing: Apple and Google Team Up to Enable Virus Tracking - The Ne... - 0 views

  • The technology giants said they would embed a feature in iPhones and Android devices to enable users to track infected people they’d come close to.
  • The technology giants said they were teaming up to release the tool within several months, building it into the operating systems of the billions of iPhones and Android devices around the world. That would enable the smartphones to constantly log other devices they come near, enabling what is known as “contact tracing” of the disease. People would opt in to use the tool and voluntarily report if they became infected.
  • underscores the seriousness of the health crisis and the power of the two companies whose software runs almost every smartphone in the world. Apple and Google said their joint effort came together in just the last two weeks.
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  • With the tool, people infected with the coronavirus would notify a public health app that they have it, which would then alert phones that had recently come into proximity with that person’s device. The companies would need to get public-health authorities to agree to link their app to the tool.
  • There are already third-party tools for contact tracing, including from public health authorities and the Massachusetts Institute of Technology. In March, the government of Singapore introduced a similar coronavirus contact-tracing app, called TraceTogether, that detects mobile phones that are nearby.
  • One challenge for third-party apps is that they must run constantly — 24 hours a day, seven days a week — to be effective. Google said some Android smartphone manufacturers shut down those applications to save battery life.
  • Apple and Google said their tool would also constantly run in the background if people opt to use it, logging nearby devices through the short-range wireless technology Bluetooth. But it would eat up less battery life and be more reliable than third-party apps, they said.
  • “This data could empower members of the general population to make informed decisions about their own health in terms of self-quarantining,” said Dr. Reid. “But it doesn’t replace the public health imperative that we scale up contact tracing in the public health departments” around the world.
  • Other phones will constantly check those servers for the broadcast beacons of devices they had come near in the past 14 days. If there is a match, those people will receive an alert that they had likely come into contact with an infected person.
  • Apple and Google said they were discussing how much information to include in those alerts with health officials, aiming to strike a balance between being helpful while also protecting the privacy of those who have the coronavirus.
  • Once someone reports his or her infection to a public-health app, the tool will send the phone’s so-called broadcast beacons, or anonymous identifiers connected to the device, to central computer servers.
  • Apple and Google said they would make the tool’s underlying technology available to third-party apps by mid-May and publicly release the tool “in the coming months.” The companies said the tool would not collect devices’ locations — it only tracked proximity to other devices — and would keep people anonymous in the central servers.
  • The European Commission, the executive of the 27-nation bloc, said on Wednesday that “a fragmented and uncoordinated approach risks hampering the effectiveness” of such apps.
  • “The danger is, as you roll out these voluntary solutions and they gain adoption, it’s more likely that they are going to become compulsory,” said Mr. Soltani, a former chief technologist for the Federal Trade Commission.
katherineharron

Trump wants Apple to unlock the Pensacola shooter's iPhones. Here's why it won't - CNN - 0 views

  • President Donald Trump just slammed Apple for refusing to allow the US government access to the iPhones "used by killers, drug dealers and other violent criminal elements."
  • Trump's tweet came hours after Apple declined requests from US Attorney General William Barr and the FBI to unlock two iPhones believed to have been used by a 21-year-old man who killed three sailors in a shooting last month at a Pensacola, Florida, Air Force base.
  • Apple's commitment to protecting the privacy of its users is well known. The iPhone maker has hammered on privacy as a marketing pitch in recent years, with CEO Tim Cook repeatedly calling privacy a fundamental human right. Cook told CNN in 2018 that he wants governments around the world to restrict how much data companies can collect from their customers.
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  • "We have always maintained there is no such thing as a backdoor just for the good guys. Backdoors can also be exploited by those who threaten our national security and the data security of our customers," Apple added. "Today, law enforcement has access to more data than ever before in history, so Americans do not have to choose between weakening encryption and solving investigations. We feel strongly encryption is vital to protecting our country and our users' data."
  • Facebook has faced a similar tussle on the other side of the world, squaring off against India's government over its mobile messaging service, WhatsApp. India — the company's biggest market with 400 million-plus WhatsApp users — demanded in 2018 that Facebook add the ability to track individual messages after a series of lynchings tied to viral hoax forwards.
  • WhatsApp has repeatedly refused, saying encryption is fundamental to its private nature. "We will not weaken the privacy protections WhatsApp provides," a spokesperson said at the time.
Javier E

Apple Policy on Bugs May Explain Why Hackers Would Help F.B.I. - The New York Times - 0 views

  • Flaws in Apple’s mobile devices can typically fetch $1 million. Last September, a boutique firm in Washington, called Zerodium, which sells flaws to governments and corporations, announced a $1 million bounty for anyone who would turn over an exploit in Apple’s iOS 9 mobile operating system — the same operating system used to power the iPhone used by the San Bernardino shooter. By November, Zerodium said a team of undisclosed hackers had successfully claimed the bounty.
  • “For every Zerodium, there are a thousand other organizations like Zerodium that are far less vocal about doing what they do and will pay researchers who find this stuff to keep it a secret,”
  • Some security researchers said no bounty Apple could offer now would match the reward they could expect from the underground market. Apple has waited so long that the black market for its flaws has become extremely lucrative, perhaps making any bug bounty program the company would create seem late to the game.
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  • “Apple can embrace security researchers, or try to facilitate programs that will secure its operating system, but it’s never going to be able to compete with what is going on behind the scenes in the black market,” said Jay Kaplan, a former N.S.A. analyst
Javier E

Apple's Supreme Court loss sends antitrust shockwaves through Silicon Valley - The Wash... - 0 views

  • the Supreme Court on Monday rejected Apple’s interpretation. The ruling found the iPhone giant’s legal arguments sought only to "gerrymander Apple out of this and similar lawsuits,” wrote Kavanaugh, a conservative appointed by President Trump, on behalf of a majority of the justices. Speaking from the bench, he said Apple’s theory of the case “contradicts the text of the antitrust statute, which broadly affords any injured party a right to sue.
  • In doing so, the justices stressed their decision was narrow, leaving a key element of the lawsuit — whether Apple acted anti-competitively — unresolved
  • The Supreme Court’s decision still could have broader implications the tech industry. “For anybody who’s got a platform, this is one less thing to hide behind,”
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  • Theoretically, a company such as Amazon could also be a target
  • “For some online marketplaces like Amazon, where consumers go online and pay Amazon but a seller is actually a third party, this seems to be [saying] those are direct purchases,” she added. Any case would hinge on whether Amazon actually acted anti-competitively, she said.
Javier E

Parler Pitched Itself as Twitter Without Rules. Not Anymore, Apple and Google Said. - T... - 0 views

  • Parler is one of the hottest apps in the world, a social network that has attracted millions of far-right conservatives over the past year with its hands-off approach to policing users’ posts. And with the news that President Trump had been kicked off Twitter and Facebook, Parler was the odds-on bet to be his next soapbox.
  • A day earlier, John Matze, Parler’s chief executive, had said in an interview with The Times about Wednesday’s melee that he didn’t “feel responsible for any of this and neither should the platform, considering we’re a neutral town square that just adheres to the law.”
  • The edicts from Apple and Google were a stark illustration of the power of the largest tech companies to influence what is allowed on the internet, even on sites and apps that are not their own
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  • But it is now clear that Parler will not be able to maintain its free-for-all status if it wants to be able to keep its wide reach. Apple and Google make the operating systems that back nearly every smartphone in the world, and they roughly split the market in the United States.
  • Google’s suspension is problematic for Parler, but people with Android devices will still be able to get the app, just with a bit more work. Google allows other app marketplaces on Android, and its decision applies only to its flagship Play Store.And people will also still be able to use Parler via web browsers on their phones or computers.
  • While explaining their decisions on Friday, Apple and Google shared images of posts on Parler that they said had crossed the line. They included a post from Lin Wood, the defamation lawyer who sued to overturn Mr. Trump’s election loss, that said Vice President Mike Pence should be executed for not helping the fight to overturn the election results. The post was shared thousands of times.
  • Parler had a major advantage: money. Rebekah Mercer, one of Mr. Trump's largest donors and an investor in Breitbart, said on Parler in November that she had started the company with Mr. Matze, a self-described libertarian, “to provide a neutral platform for free speech, as our founders intended.”
  • After Twitter announced it had banned Mr. Trump on Friday, he posted a message under the official Twitter account for the U.S. president that said his team had been “negotiating with various other sites, and will have a big announcement soon, while we also look at the possibilities of building out our own platform in the near future.” He added, “We will not be SILENCED!”
  • Parler’s app has been downloaded more than 10 million times on iPhones and Android devices, with more than 80 percent of the downloads in the United States, according to Sensor Tower, an app data firm. On Thursday, the day after the riot in Washington, people downloaded Parler 39,000 times, more than twice as much as the day prior.
  • Another post they cited said 20 coordinated assassinations were all that would be needed to “take back our country.” It had been shared nearly 200 times and stayed up for at least two days.
  • “If people are breaking the law, violating our terms of service, or doing anything illegal, we would definitely get involved,” Mr. Matze told The Times this week. “But, you know, for the most part, I haven’t seen a whole lot of illegal activity.”
Javier E

The Corrosive Effect of Apple's Tax Avoidance - NYTimes.com - 0 views

  • In fact, as Apple executives tried to point out at the Senate hearing at which their tax strategies were detailed, they could have chosen to pay much less in American taxes than they did.
  • The news in the Senate report about Apple was not that the company had found ways to shift income to low-tax jurisdictions. Lots of multinational companies do that. The news was that Apple had found a way to move a large part of its income to subsidiaries that claimed to not exist anywhere, at least when it came to paying taxes.
  • It had been common knowledge that private equity firms had found ways to have most of the money earned by partners taxed at low capital gains tax rates, through what is known as carried interest. What came out last year was that some had found a way to treat all of their compensation that way.
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  • “The general American public should not have to make up the balance as corporations avoid paying billions in U.S. taxes,” Senator McCain said.
  • As Tim Cook, Apple’s chief executive, testified, there is a whole range of tactics Apple has chosen not to use.
  • “Apple’s basic structure and planning described in the memorandum appears to be appropriate corporate tax planning in today’s environment
  • If you look at taxes as Senator McCain seems to do, one person finding a way around taxes means the rest of us have to pay more. After all, the government must raise enough money to meet its obligations. But that is not the way a lot of Republicans look at it now. They have denounced taxes for so long that some of them seem to view those who manage to legally avoid paying taxes as heroes. Some of them also seem to think that the government they help to run is evil and that depriving it of revenue is therefore a good thing.
  • In theory, under the current law, American multinationals will pay American taxes on all profits — less whatever foreign taxes they paid — when they bring the profits home. That is known as “deferred” taxation. But they try to avoid doing that, and hope they can persuade the government to let them pay a minimal tax on such repatriated profits, rather than the full rate.
  • Multinational corporations have been campaigning for a “territorial” tax system, in which the United States would tax only profits generated in this country. Doing that without finding a way to close down the loopholes that allow companies to move taxes around would simply ratify the current situation, with the difference that companies would no longer face the possibility of paying American taxes when they brought the money home.
  • closing those loopholes may be impossible under the current system. Companies can have one subsidiary pay any price they want to another subsidiary, so long as it is reasonably close to what an arm’s-length negotiation would produce. The I.R.S. is overmatched when it tries to challenge such pricing, particularly because there are often no comparable deals
  • To get anything done, Congress will have to agree that Senator McCain’s way of looking at taxes is correct, and accept that giving a tax break to one person or company must mean forcing others to pay more than they otherwise would.
Javier E

Apple's Irish Luck - NYTimes.com - 0 views

  • Ireland has long had one of the lowest corporate tax rates in Europe; it’s currently 12.5 percent.
  • it did a lot more than simply offer a low corporate tax rate. It set itself up as a kind of European tax haven, so that companies like Google, Facebook, Microsoft and others could, in effect, buy an Irish address to which they could transfer a great deal of their intellectual property and route profits accrued elsewhere through the Irish subsidiary. This is called transfer pricing. Companies could also take advantage of other loopholes in the Irish tax code to get their tax bill considerably lower than 12.5 percent.
  • In 1991, Apple essentially negotiated how much tax the company would pay. It did so after it had explicitly “mentioned by way of background information that Apple was now the largest employer in the Cork area with 1,000 direct employees and 500 persons engaged on a sub-contract basis,” again according to Almunia’s letter. Apple also acknowledged that it had “no scientific basis” for the amount of tax it was willing to pay. The deal was then “reverse engineered” so that Apple’s profits would wind up in the range that would yield the suggested taxes.
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  • Here then is one difference between what transpires in the U.S. and what transpires in Europe: The E.U. has rules intended to prevent nations from giving unjustified tax breaks to companies. “In Europe there is now a mechanism to prevent the most harmful abuses” of the tax code, said Matthew Gardner, the executive director of the Institute on Taxation and Economic Policy. It has taken a while — and required an outraged public to spur it on — but the E.U. finally seems intent on curbing excesses like Apple’s tax deal in Ireland.
  • It’s a good thing that the E.U. is trying to curb unjustified tax breaks. Maybe it’s time to do the same here.
Javier E

A Murky Road Ahead for Android, Despite Market Dominance - The New York Times - 0 views

  • About one of every two computers sold today is running Android. Google’s once underappreciated side bet has become Earth’s dominant computing platform
  • Google’s version of Android faces increasing competition from hungry rivals, including upstart smartphone makers in developing countries that are pushing their own heavily modified take on the software. There are also new threats from Apple, which has said that its recent record number of iPhone sales came, in part, thanks to people switching from Android.
  • Hanging over these concerns is the question of the bottom line. Despite surging sales, profits in the Android smartphone business declined 44 percent in 2014
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  • Over the holidays last year, according to the research firm Strategy Analytics, Apple vacuumed up nearly 90 percent of the profits in the smartphone business.
  • How will the search company — or anyone else, for that matter — ever make much money from Android?
  • Google is sanguine about Android’s prospects and said the company’s original vision for Android was never solely about huge profits. “The bet that Larry, Sergey and Eric made at the time was that smartphones are going to be a thing, there’s going to be Internet on it, so let’s make sure there’s a great smartphone platform out there that people can use to, among other things, access Google services
  • The fact that Google does not charge for Android, and that few phone manufacturers are extracting much of a profit from Android devices, means that much of the globe now enjoys decent smartphones and online services for low prices
  • at the same time, given the increasing threats to Google’s advertising business, we might also wonder how long that largess can continue.
  • A brighter spot for Google is the revenue it collects from sales via Android’s app store, called Google Play. For years, Android apps were a backwater, but sales have picked up lately. In 2014, Google Play sold about $10 billion in apps, of which Google kept about $3 billion (the rest was paid out to developers). Apple makes more from its App Store. Sales there exceeded $14 billion in 2014, and rising iPhone sales in China have led to a growing app haul for Apple. Still, Google’s app revenue is becoming an increasingly meaningful piece of its overall business, and it is also growing rapidly.
  • even if hot Silicon Valley start-ups still create apps for iOS first, app makers in other parts of the world see Android as a surer path to the masses. “The reality is that folks like you should play a role in educating the Silicon Valley,” she said.
  • Google’s strategy of giving Android to phone makers free has led to a surge of new entrants in the phone business, several of which sell high-quality phones for cut-rate prices. Among those is Xiaomi, a Chinese start-up making phones that have become some of the most popular devices in China.
  • Because Xiaomi and others don’t make much of a profit by selling phones, they’re all looking for other ways to make money — and for many, the obvious business is in apps offering mail, messaging and other services that compete with Google’s own moneymaking apps.
  • The situation is especially painful for Google in China, the world’s fastest-growing smartphone market, where Google’s apps are blocked. Even in the rest of Asia, where many low-cost phone manufacturers do include Google’s apps on their phones, there’s growing interest in finding some alternative to Google’s version of Android. About 30 percent of Android smartphones shipped in the last quarter of 2014 were actually modified, or forked, versions of the OS that may not be very hospitable to Google’s services, according to the firm ABI Research
  • Cyanogen, has raised about $100 million from several investors — and has signed a “strategic partnership” with Google’s arch-competitor Microsoft — to sell phone makers an alternative user interface that works on top of Google’s Android.
  • “We share services revenue with the phone makers — and today they get very little of that from Google,” said Kirt McMaster, Cyanogen’s chief executive. “There are very few companies in the world today that really like Google. Nobody wants Google to run the table with this game. So it’s a good time to be a neutral third party. We’re Switzerland, and we want to share that revenue with our ecosystem partners in a meaningful way.”
  • in the long run, the rise of Android switching sets up a terrible path for Google — losing the high-end of the smartphone market to the iPhone, while the low end is under greater threat from noncooperative Android players like Xiaomi and Cyanogen.
anonymous

Internet industry braces for new privacy rules - Axios - 0 views

  • The new online privacy changes are a massive pivot from the decades-long practice of selling hyper-targeted ads to users based on their web history. Many big web publishers rely on targeted ads to support their businesses.
  • Apple on Monday began rolling out its long-awaited app tracking transparency feature that asks Apple iOS users whether they would like to opt out of having their data tracked by third-party apps.
  • Apple's tech rivals — especially Facebook — nervous about the impact that the update will have on their advertising businesses.
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  • they expected very few people — 15-20% — to actually opt-in to having their data be shared. But a new analysis from AppsFlyer, a mobile software company, says opt-in rates may be higher, possible minimizing the impact of Apple's changes on the ad ecosystem.
  • it — along with other web browsers like Apple's Safari and Mozilla's Firefox — would begin phasing out web cookies,
  • Google's solution requires broad industry support, and many web publishers are skeptical. WordPress, the blogging platform that supports a huge chunk of the internet's websites, last week called Google's alternative a "security concern" that could unintentionally facilitate disparities amongst people on the web.
  • Some industry bodies, like ad tech giant The Trade Desk, are proposing alternative to third-party cookies that still allow marketers to track individuals.
aleija

To Fight Apple and Google, Smaller App Rivals Organize a Coalition - The New York Times - 0 views

  • nd last month, Epic Games, maker of the popular game Fortnite, sued Apple and Google, claiming they violated antitrust rules.
  • On Thursday, the smaller companies said they had formed the Coalition for App Fairness, a nonprofit group that plans to push for changes in the app stores and “protect the app economy.”
  • In July, Congress grilled the chief executives of Google, Apple, Amazon and Facebook about their practices in a high-profile antitrust hearing.
carolinehayter

Google Lawsuit Marks End Of Washington's Love Affair With Big Tech : NPR - 0 views

  • The U.S. Justice Department and 11 state attorneys general have filed a blockbuster lawsuit against Google, accusing it of being an illegal monopoly because of its stranglehold on Internet search.
  • The government alleged Google has come by its wild success — 80% market share in U.S. search, a valuation eclipsing $1 trillion — unfairly. It said multibillion-dollar deals Google has struck to be the default search engine in many of the world's Web browsers and smartphones have boxed out its rivals.
  • Google's head of global affairs, Kent Walker, said the government's case is "deeply flawed." The company warned that if the Justice Department prevails, people would pay more for their phones and have worse options for searching the Internet.
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  • Just look at the word "Google," the lawsuit said — it's become "a verb that means to search the internet." What company can compete with that?
  • It will likely be years before this fight is resolved.
  • a tectonic shift is happening right now: USA v. Google is the biggest manifestation of what has become known as the "Techlash" — a newfound skepticism of Silicon Valley's giants and growing appetite to rein them in through regulation.
  • "It's the end of hands-off of the tech sector," said Gene Kimmelman, a former senior antitrust official at the Justice Department. "It's probably the beginning of a decade of a series of lawsuits against companies like Google who dominate in the digital marketplace."
  • For years, under both Republican and Democratic administrations, Silicon Valley's tech stars have thrived with little regulatory scrutin
  • There is similar skepticism in Washington of Facebook, Amazon and Apple — the companies that, with Google, have become known as Big Tech, an echo of the corporate villains of earlier eras such as Big Oil and Big Tobacco.
  • All four tech giants have been under investigation by regulators, state attorneys general and Congress — a sharp shift from just a few years ago when many politicians cozied up to the cool kids of Silicon Valley.
  • Tech companies spend millions of dollars lobbying lawmakers, and many high-level government officials have left politics to work in tech,
  • "It's been a relationship of extremes,"
  • She said Washington's laissez-faire attitude toward tech is at least partly responsible for the sector's expansion into nearly every aspect of our lives.
  • "These companies were allowed to grow large, in part because they had political champions on both sides of the aisle that really supported what they were doing and viewed a lot of what they were doing uncritically. And then ... these companies became so big and so powerful and so good at what they set out to do, it became something of a runaway train," she said.
  • The Google lawsuit is the most concrete action in the U.S. to date challenging the power of Big Tech. While the government stopped short of explicitly calling for a breakup, U.S. Associate Deputy Attorney General Ryan Shores said that "nothing's off the table."
  • "This case signals that the antitrust winter is over,"
  • other branches of government are also considering ways to bring these companies to heel. House Democrats released a sweeping report this month calling for new rules to strip Apple, Amazon, Facebook and Google of the power that has made each of them dominant in their fields. Their recommendations ranged from forced "structural separations" to reforming American antitrust law. Republicans, meanwhile, have channeled much of their ire into allegations that platforms such as Facebook and Twitter are biased against conservatives — a claim for which there is no conclusive evidence.
  • Congressional Republicans and the Trump administration are using those bias claims to push for an overhaul of Section 230 of the 1996 Communications Decency Act, a longstanding legal shield that protects online platforms from being sued over what people post on them and says they can't be punished for reasonable moderation of those posts.
  • The CEOs of Google, Facebook and Twitter are set to appear next week before the Senate Commerce Committee at a hearing about Section 230.
  • On the same day the Justice Department sued Google, two House Democrats, Anna Eshoo, whose California district includes large parts of Silicon Valley, and Tom Malinowski of New Jersey, introduced their own bill taking aim at Section 230. It would hold tech companies liable if their algorithms amplify or recommend "harmful, radicalizing content that leads to offline violence."
  • That means whichever party wins control of the White House and Congress in November, Big Tech should not expect the temperature in Washington to warm up.
  • Editor's note: Google, Facebook, Apple and Amazon are among NPR's financial supporters.
Javier E

Calculating Apple's True U.S. Tax Rate - NYTimes.com - 0 views

  • as voters we care about actual dollars flowing to the federal government.
  • Most of us think of paying taxes as writing a check to the government or having money withheld from a paycheck. By this common sense measure, how much tax does Apple actually pay?
  • Congress should require every large American company to disclose to the public a simple number each year, which I would call the “true U.S. tax rate”: (1) the amount of cash tax payments to the Treasury Department divided by (2) worldwide pretax book income
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  • According to the Senate report, Apple paid $5.3 billion to the Treasury Department in the fiscal years 2009 to 2011. Its worldwide pretax book income over that period was about $65 billion. Thus, Apple’s “true U.S. tax rate,” according to my own calculation, was 8.2 percent.
Javier E

Publishers Straddle the Apple-Google, App-Web Divide - The New York Times - 0 views

  • “For anybody trying to do something independent on their own, it’s difficult to integrate into this technological environment,” Ms. Kjellberg said. She added that companies like Google and Apple were aiming not “to support the endeavor of creative working people, but to get people addicted to their business models, their devices or interaction with a screen.”
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