We’ve heard the fable of “the self-made billionaire” a thousand times: some unrecognized genius toiling away in a suburban garage stumbles upon The Next Big Thing, thereby single-handedly revolutionizing their industry and becoming insanely rich in the process — all while comfortably ignoring the fact that they’d received $300,000 in seed funding from their already rich, politically-connected parents to do so.

In The Warehouse: Workers and Robots at Amazon, Alessandro Delfanti, associate professor at the University of Toronto and author of Biohackers: The Politics of Open Science, deftly examines the dichotomy between Amazon’s public personas and its union-busting, worker-surveilling behavior in fulfillment centers around the world — and how it leverages cutting edge technologies to keep its employees’ collective noses to the grindstone, pissing in water bottles. In the excerpt below, Delfanti examines the way in which our current batch of digital robber barons lean on the classic redemption myth to launder their images into that of wonderkids deserving of unabashed praise.

[…]

Source: Hitting the Books: How Amazon laundered the ‘myth of the founder’ into a business empire | Engadget

South Korean has again imposed new regulations on app stores, this time with a regime that will see operators fined up to two per cent of revenue if they force their proprietary in-app payment systems on developers.

“Considering that certain payment methods compulsory acts are serious illegal acts of app market operators, an enforcement ordinance has been prepared that imposes a fine of two per cent of sales and one per cent of sales for delayed screening or deletion,” the Korea Communications Commission (KCC), yesterday announced in a (Korean language) canned statement.

The new regulation follows the September 2021 introduction of the country’s Telecommunications Business Act, which prevents tech giants from restricting payment options on their platforms – either to pay for apps or for in-app purchases. The Act also prevents the likes of Google, Apple and others from taking a cut of in-app purchases facilitated by third-party services.

[….]

Source: Big tech fined if they force their own in-app payment system • The Register

Come on, EU, US, where are you guys?!

The north-German state of Schleswig-Holstein plans to switch to open source software, including LibreOffice, in its administration and schools.

In doing so, the state wants to reduce its dependence on proprietary software, and eventually end it altogether. By the end of 2026, Microsoft Office is to be replaced by LibreOffice on all 25,000 computers used by civil servants and employees (including teachers), and the Windows operating system is to be replaced by GNU/Linux.

The necessary steps for this are specified in the planning of the Schleswig-Holstein state parliament (German), as digital minister Jan Philipp Albrecht explains in an interview with c’t (also German – Google Translate version here).

Lothar Becker and Thorsten Behrens from The Documentation Foundation, the non-profit entity behind LibreOffice, were invited to a meeting with those responsible (photos below). The focus was on cloud solutions, integration with LibreOffice and other systems, and video conferencing tools.

[…]

Source: German state planning to switch 25,000 PCs to LibreOffice

MIT’s Technology Review shares data from a Facebook-run tool called CrowdTangle. It shows that by 2018 in the nation of Myanmar (population: 53 million), ” All the engagement had instead gone to fake news and clickbait websites.

“In a country where Facebook is synonymous with the internet, the low-grade content overwhelmed other information sources.” [T]he sheer volume of fake news and clickbait acted like fuel on the flames of already dangerously high ethnic and religious tensions. It shifted public opinion and escalated the conflict, which ultimately led to the death of 10,000 Rohingya, by conservative estimates, and the displacement of 700,000 more. In 2018, a United Nations investigation determined that the violence against the Rohingya constituted a genocide and that Facebook had played a “determining role” in the atrocities. Months later, Facebook admitted it hadn’t done enough “to help prevent our platform from being used to foment division and incite offline violence.” Over the last few weeks, the revelations from the Facebook Papers, a collection of internal documents provided to Congress and a consortium of news organizations by whistleblower Frances Haugen, have reaffirmed what civil society groups have been saying for years: Facebook’s algorithmic amplification of inflammatory content, combined with its failure to prioritize content moderation outside the US and Europe, has fueled the spread of hate speech and misinformation, dangerously destabilizing countries around the world.

But there’s a crucial piece missing from the story. Facebook isn’t just amplifying misinformation.

The company is also funding it.

An MIT Technology Review investigation, based on expert interviews, data analyses, and documents that were not included in the Facebook Papers, has found that Facebook and Google are paying millions of ad dollars to bankroll clickbait actors, fueling the deterioration of information ecosystems around the world.
Facebook pays them for permission to open their content within Facebook’s app (where Facebook controls the advertising) rather than having users clickthrough to the publisher’s own web site, reports Technology Review: Early on, Facebook performed little quality control on the types of publishers joining the program. The platform’s design also didn’t sufficiently penalize users for posting identical content across Facebook pages — in fact, it rewarded the behavior. Posting the same article on multiple pages could as much as double the number of users who clicked on it and generated ad revenue. Clickbait farms around the world seized on this flaw as a strategy — one they still use today… Clickbait actors cropped up in Myanmar overnight. With the right recipe for producing engaging and evocative content, they could generate thousands of U.S. dollars a month in ad revenue, or 10 times the average monthly salary — paid to them directly by Facebook. An internal company document, first reported by MIT Technology Review in October, shows that Facebook was aware of the problem as early as 2019… At one point, as many as 60% of the domains enrolled in Instant Articles were using the spammy writing tactics employed by clickbait farms, the report said…

75% of users who were exposed to clickbait content from farms run in Macedonia and Kosovo had never followed any of the pages. Facebook’s content-recommendation system had instead pushed it into their news feeds.
Technology Review notes that Facebook now pays billions of dollars to the publishers in their program. It’s a long and detailed article, which ultimately concludes that the problem “is now happening on a global scale.” Thousands of clickbait operations have sprung up, primarily in countries where Facebook’s payouts provide a larger and steadier source of income than other forms of available work. Some are teams of people while others are individuals, abetted by cheap automated tools that help them create and distribute articles at mass scale…

Google is also culpable. Its AdSense program fueled the Macedonia- and Kosovo-based farms that targeted American audiences in the lead-up to the 2016 presidential election. And it’s AdSense that is incentivizing new clickbait actors on YouTube to post outrageous content and viral misinformation.
Reached for comment, a Facebook spokesperson told Technology Review that they’d misunderstood the issue. And the spokesperson also said “we’ve invested in building new expert-driven and scalable solutions to these complex issues for many years, and will continue doing so.”

Google’s spokesperson confirmed examples in the article violated their own policies and removed the content, adding “We work hard to protect viewers from clickbait or misleading content across our platforms and have invested heavily in systems that are designed to elevate authoritative information.”

Source: How Facebook and Google Actually Fund the Creation of Misinformation – Slashdot

China’s State Administration for Market Regulation (SAMR) has fined tech giants 43 times – with Alibaba, Baidu and Tencent told to pay up for failing to declare deals deemed to violate anti-monopoly legislation.

According to SAMR, more rigorous anti-monopoly law enforcement has seen businesses file more paperwork, sometimes about past transactions. SAMR’s own probes have spotted acquisitions that weren’t reported at the time.

Those efforts turned up 43 transactions, conducted between 2012 and 2021, that violated China’s 2008 Anti-Monopoly Law. Each count received a fine of ¥500,000 ($78,300). The regulatory body said that all were “assessed as having no effect of excluding or restricting competition”.

The market regulator posted about the fines on its WeChat account and Weibo page on Saturday.

State-sponsored media Global Times reported that Alibaba and Tencent each racked up more than ten cases.

[…]

China’s national anti-monopoly bureau was inaugurated on Thursday and guidelines for antitrust compliance of enterprises abroad were issued the same day.

The government in Beijing, and SAMR in particular, has been busy. Earlier this month the organization drafted new rules for internet platforms considered “super large” that hold them to higher standards than smaller, less influential ones in an attempt to stamp out anticompetitive behavior.

In September, the org ordered Alibaba, Tencent and more to stop blocking links to rivals. And it has been known to step in and outright ban mergers it deems imprudent.

[…]

Source: Beijing issues fines for 43 Big Tech M&A deals • The Register

It’s odd that China is leading the way in anti-monopolistic behaviour whilst the EU and US are lagging behind severely.

It’s been less than a year since Vizio became a publicly traded company, and one consequence of that is we know more about its business than ever before. The TV maker released its latest earnings report on Tuesday and revealed that over the last three months, its Platform Plus segment that includes advertising and viewer data had a gross profit of $57.3 million. That’s more than twice the amount of profit it made selling devices like TVs, which was $25.6 million, despite those device sales pulling in considerably more revenue.

When Vizio filed to go public, it described the difference between the two divisions. While Devices is easy to understand — 4K TVs, soundbars, etc. — Platform Plus is a little more complicated. It counts money made from selling ad placements on its TV homescreens, deals for the buttons on remotes, ads that run on streaming channels, its cut from subscriptions, and viewer data that it tracks and sells as part of the InScape program.

The company says shipments of its TVs fell to 1.4 million in 2021 compared to 2.1 million in 2020, a drop of 36 percent. CEO William Wang told investors on the call that he sees “pretty healthy inventory” going into the holiday season, so anyone planning to pick up a value-priced TV or soundbar should have some decent options available.

That spike in Platform Plus revenue, which shot up 136 percent compared to last year, did a lot to help Vizio make up the difference as profits from TVs dipped compared to last year. Supply chain and logistics problems affecting many companies hit Vizio hard, too, but execs also said the company is working with its third-party partners to help find warehouse and trucking employees.

Where the numbers keep growing is in its number of active SmartCast accounts, which are now over 14 million, and how much money it makes from each user on average. That number has nearly doubled from last year, going from $10.44 to $19.89. On the call with investors and analysts, Vizio execs said 77 percent of that money comes directly from advertising, like the kind that runs on its WatchFree Plus package of streaming channels, a group that recently expanded with content targeting. The next biggest contributor is the money it makes selling Inscape data about what people are watching.

Vizio isn’t the only smart TV maker that’s really in the advertising business — as we noted a couple of years ago, while you probably know Roku for its TV OS and streaming boxes, CEO Anthony Wood is very up front about its true model. Roku’s most recent report revealed that on average it’s pulling in $40 per month on each user, or more than double what Vizio manages. One way Vizio plans to catch up is by building its own in-app payment system, which chief revenue officer Mike O’Donnell says will roll out to consumers next year.

[…]

Source: Vizio’s profit on ads, subscriptions, and data is double the money it makes selling TVs – The Verge

With this kind of profitability it’s not really surprising that everyone is out to turn you into a product.

Aleksandr Zhukov, a Russian national and the self-proclaimed “king of fraud,” this week received a 10-year prison sentence for carrying out a $7m digital ad fraud scheme.

Zhukov was convicted in May of multiple counts of fraud and money laundering. He was arrested in Bulgaria in 2018 and extradited to America the following year.

“Sitting at his computer keyboard in Bulgaria and Russia, Zhukov boldly devised and carried out an elaborate multi-million-dollar fraud against the digital advertising industry, and victimized thousands of companies across the United States,” said Breon Peace, US Attorney for the Eastern District of New York, in a statement.

Starting around 2014, according to court documents, Zhukov and co-conspirators launched a fraudulent ad business called Media Methane that took payment from ad networks to present ads online to internet users.

“Rather than place these advertisements on real publishers’ webpages as promised, however, Zhukov and others rented thousands of computer servers located at commercial data centers in the United States and elsewhere, and used those data center computer servers to simulate humans viewing ads on fabricated webpages,” the US government’s indictment [PDF] says.

Zhukov and his associates – seven individuals who are being prosecuted separately – are said to have rented more than 2,000 servers in data centers in Dallas, Texas, and in Amsterdam, the Netherlands. Media Methane allegedly offered ad space on fabricated web pages to ad buyers who would bid for the space. But the company showed those ads to an audience of bots.

The bots – computer programs – are said to have been designed to interact with the fake web pages so as to simulate realistic mouse movements and webpage interactions like viewing videos on social media sites. They were trained to bypass CAPTCHA puzzles, to accept cookies, and to fake being signed-in to social media services. Their code, the indictment claims, managed to avoid the fraud detection software used by several US cybersecurity firms.

To make the fraud more believable, Zhukov is said to have leased more than 765,000 IP addresses from IP address leasing companies, which he then assigned to data-center servers and entered into a global registry of IP addresses. By falsely registering IP addresses in the names of companies like Comcast and Time Warner Cable, Zhukov made it appear that the addresses belonged to residential US internet subscribers of those services. Some 6,000 domains are said to have been spoofed in this manner.

The companies victimized by this scheme, said to have netted more than $7m, include The New York Times, The New York Post, Comcast, Nestle Purina, the Texas Scottish Rite Hospital for Children, and Time Warner Cable.

According to the government, Zhukov hired various developers to help him carry out his fraud scheme and he referred to himself as the “king of fraud.” The Feds claim he personally took in more than $4.8m through the ad fraud scheme, though Zhukov’s attorneys are currently trying to convince the judge that only about $1m should be subject to forfeiture.

Criminal ad fraud prosecutions have been relatively rare. Among the more notable cases are a 2011 click fraud case against six Estonian nationals and one Russian national, another from 2017, and a medical ad fraud case from 2019.

Source: King of Ad Fraud to reign in a US prison for years • The Register

The European Commission is planning to ban payment for order flow, paralleling potential U.S. moves to stem a practice that hit the headlines during the meme-stock mania.

A forthcoming review of the Markets in Financial Instruments Directive will include a ban amid other measures to increase transparency, such as a consolidated tape of information about transactions, people familiar with the matter said.

The U.S. Securities and Exchange Commission is separately weighing a ban on payment for order flow, in which trading firms pay retail brokerages to execute their trades. Regulators are concerned that video-game like prompts have encouraged excessive trading on app-based brokerages that fueled a explosive surge in value for GameStop Corp. and other stocks this year.

While the day-trading frenzy is far more muted in Europe than the U.S., the practice of zero-commission trading is starting to cross the Atlantic. That prompted the bloc’s markets watchdog to warn firms and investors in July of the risks arising from payment for order flow.

EXPLAINER: How Payment for Order Flow Works 

A spokesperson for the European Commission declined to comment.

Mairead McGuinness, the EU’s financial services commissioner, said this month regulators were “closely monitoring” payment for order flow. It was difficult to assess how problematic the practice is “because there is no consolidated view of all liquidity and prices of financial instruments traded across execution venues in the European markets.”

McGuinness said the payment for order flow “may lead to retail orders not being executed on terms most favorable to the client but instead on the terms most profitable to brokers,” according to a written response to a question from a European Union lawmaker.

“This would not be in line with the second Markets in Financial Instruments Directive,” she said. It’s also why regulators are “considering proposing legislation to facilitate a consolidated tape that provides all brokers and their clients with such a holistic view” of all liquidity and prices of financial instruments traded across execution venues in the European markets.

Consolidated Tape

The EU is planning to set a separate tape for each asset class, according to the people familiar. Details on delivery, specifications and speed would be set out later. There may be a tender process to choose the provider of a consolidated tape for an asset class.

The current draft notes a 15-minute delay to consolidate the data will remain acceptable, echoing current rules where exchanges should provide their data for free after 15 minutes. Those contributing data to the tape would share its revenue if the tape consolidates data in less than 15 minutes.

Source: EU Plans to Ban Trading Practice That Helps Fuel GameStop Value Surge – Bloomberg

So trying to restrict people from trading is somehow good for “the market”?

A Register reader triggered a kerfuffle for Samsung after asking the electronics biz if he could disable large and intrusive adverts splattered across his new smart TV’s programme guide.

Ross McKillop bought the telly from UK retailer John Lewis but felt distinctly undersold when he turned it on to find the internet-connected device displaying advertising on its electronic programme guide menu.

Ross McKillop’s Samsung TV displaying smart ads taking up half the screen space

“If you press the menu button to change between like TV or Netflix or, or whatever, even different sources, there’s an advert panel,” lamented McKillop to The Reg. “It seems that people accept this.”

Irritated by the giant advert for Samsung’s own wares, McKillop took to Twitter to ask the obvious question. The answer was surprisingly blunt.

Hey, Ross. Congratulations on your new TV. You wouldn’t be able to disable the ads we’re afraid. ^HA

— Samsung UK (@SamsungUK) October 27, 2021

“The more annoying [advert],” McKillop told us, “is the one that appears on the application menu, on every menu [level].”

Such a problem is, sadly, not new, as we reported about a year ago when other Samsung TV customers began wondering where the giant adverts splattered all over their TVs’ user interfaces had come from.

“I expect Netflix to promote Netflix’s products or Netflix programming on a service I pay for because it’s a service,” stormed McKillop, adding that he didn’t expect to have his TV’s manufacturer insert unavoidable advertising into his new box.

Smart readers (like our man Ross) know that you can kill ads at home with innovations such as the Pi-Hole home network-level adblocker.

Our reader also pointed out that the adverts on his new internet-connected telly were not visible in Samsung’s marketing videos about the product.

We asked Samsung if it wished to comment. The manufacturer failed to respond. McKillop has since returned his TV to retailer John Lewis.

Samsung has been relatively open about what its smart TVs do. A quick look at the “Samsung privacy policy – smart TV supplement” on its UK website reveals that the company hoovers up information about “your TV viewing history” including “information about the networks, channels, websites visited, and programs viewed on your Samsung Smart TV and the amount of time spent viewing them”.

This kind of subtle-but-invasive monitoring was the subject of a warning by an American university professor in 2019 who described it as “a cesspit of surveillance”.

The devices can pose a security risk unless they’re treated like any other internet-connectable device, as the Korean giant itself reminded tellywatchers a couple of years ago (well, they deleted that Twitter missive but El Reg doesn’t forget).

All in all, if you’re buying a Samsung TV, just remember that you’re not only paying for a big panel so you can watch reruns of Friends; you’re also paying to be part of Samsung’s global TV advertising network.

Source: Reg reader ditches Samsung smart TV after seeing huge UI ads • The Register

The civil trial of Ira Kleiman vs. Craig Wright started on Monday in Miami. The estate of David Kleiman is suing Craig Wright, the self declared inventor of bitcoin, for 50% ownership of 1.1 million bitcoins. The estate claims Kleiman was in a partnership with Wright to mine the coins but after Kleiman died in April 2013, Wright denied any partnership. At over $60,000 each per bitcoin, this case is currently worth $65 billion.

Craig Wright has previously claimed he is the inventor of Bitcoin, Satoshi Nakamoto, which has been met with skepticism based on his inability to show any proof. In this case, Wright has made numerous dubious claims. After the case was filed in 2018, Wright claimed he did not have the keys to the coins but that they would be arriving in January 2020 through a “bonded courier.” After January 2020, Wright provided keys to the estate for verification which the estate claims the bitcoins were fake. Expressing skepticism that the courier even existed, the estate asked for more information about the courier. Wright then claimed the identity of the courier and all communications were protected under attorney-client privilege as the courier was an attorney.

Source: Kleiman v. Wright: $65 Billion Bitcoin Case Has Started – Slashdot

 U.S. tech giant Google has paid Russia more than 32 million roubles ($455,079) in fines for failing to delete content Moscow deems illegal, the company and a Russian lawmaker said after talks on Monday.

[…]

In 2020, Google’s compliance with requests to delete content was 96.2%, Pancini said, and in the first half of this year, it removed over 489,000 videos, but Russia said too much banned content still remained available.

Piskarev said last week that this included child pornography. Russia has ordered other foreign tech firms to delete posts promoting drug abuse and dangerous pastimes, information about homemade weapons and explosives, as well as ones by groups it designates as extremist or terrorist.

Around 2,650 pieces of illegal content on Google’s internet resources remained undeleted as of the start of October, the RIA news agency cited Piskarev as saying.

“Work has been carried out, as we see, however it is still very far from ideal,” he said.

Piskarev said Pancini had cited technical difficulties for Google’s failure to remove all the banned content.

Source: Google pays fines to Russia over banned content

As soon as you hear about child pornography alarm bells should be ringing – someone is trying to do something else which is totally unacceptable

The UK’s Competition and Markets Authority (CMA) has smacked Facebook with a £50m ($68.7m) fine for “deliberately” not giving it the full picture about its ongoing $400m acquisition of gif-slinger Giphy.

The move  – fingered by the CMA as a “major breach” – comes just weeks after the antisocial network dismissed the UK’s regulator’s initial findings as being based on “fundamental errors” and just hours after the US Dept of Justice and its Department of Labor announced separate agreements with the firm in which it will fork over $14.25m to settle allegations of discriminatory hiring practices.

Facebook first announced its intention to buy the image platform, which hosts a searchable database of short looping soundless animated GIFs – many of which are sourced from reality TV and films – in May last year. Giphy also hosts MP4 looped video clips (so users can “enjoy” audio), which it also unaccountably calls gifs. Pinterest, Reddit and Salesforce’s comms firm Slack have all integrated Giphy into their platforms so you can “react” to friends and colleagues. Facebook’s acquisition values the company at $400m.

[…]

Bamford said companies were not required to seek the CMA’s approval before they completed an acquisition but noted that “if they decide to go ahead with a merger, we can stop the companies from integrating further if we think consumers might be affected and an investigation is needed.”

He added: “We warned Facebook that its refusal to provide us with important information was a breach of the order but, even after losing its appeal in two separate courts, Facebook continued to disregard its legal obligations.

“This should serve as a warning to any company that thinks it is above the law.”

[…]

Source: Facebook fined by UK competition body • The Register

When asked in July, 2020, by US Representative Pramila Jayapal (D-WA) whether Amazon ever mined data from its third-party vendors to launch competing products, founder and then CEO Jeff Bezos said he couldn’t answer “yes” or “no,” but insisted Amazon had rules disallowing the practice.

“What I can tell you is we have a policy against using seller-specific data to aid our private label business but I can’t guarantee that policy has never been violated,” Bezos said.

According to documents obtained by Reuters, Amazon’s employees in India flouted that policy by copying the products of Amazon marketplace sellers for its in-house brands and then manipulating search results on Amazon’s website to place its knockoffs at the top of search results lists.

“The documents reveal how Amazon’s private-brands team in India secretly exploited internal data from Amazon.in to copy products sold by other companies, and then offered them on its platform,” said Reuters reporters Aditya Kalra and Steve Stecklow in a report published on Wednesday.

“The employees also stoked sales of Amazon private-brand products by rigging Amazon’s search results so that the company’s products would appear, as one 2016 strategy report for India put it, ‘in the first 2 or three … search results’ when customers were shopping on Amazon.in.”

Last year, the Wall Street Journal published similar allegations that the company used third-party merchant data to develop competing products, which prompted Rep. Jayapal’s question to Bezos. Such claims are central to the ongoing antitrust investigations of Amazon being conducted in the US, Europe, and India.

[…]

Source: Amazon accused of copying merchant products in India • The Register

Epic Games CEO Tim Sweeney, whose high-profile antitrust lawsuit against Apple is now under appeal, is today calling out the iPhone maker for giving itself access to an advertising slot its competitors don’t have: the iPhone’s Settings screen. Some iOS 15 users noticed Apple is now advertising its own services at the top of their Settings, just below their Apple ID. The services being suggested are personalized to the device owner, based on which ones they already subscribe to, it appears.

For example, those without an Apple Music subscription may see an ad offering a free six-month trial. However, current Apple Music subscribers may instead see a prompt to add on a service they don’t yet have, like AppleCare coverage for their devices.

Sweeney suggests this sort of first-party advertising is an anticompetitive risk for Apple, as some of the services it’s pushing here are those that directly compete with third-party apps published on its App Store. But those third-party apps can’t gain access to the iPhone’s Settings screen, of course — they can only bid for ad slots within the App Store itself.

Writes Sweeney: “New from the guys who banned Fortnite: settings-screen ads for their own music service, which come before the actual settings, and which aren’t available to other advertisers like Spotify or Sound Cloud.”

[…]

Source: Epic Games CEO Tim Sweeney calls out Apple for promoting its services in the iPhone Settings screen | TechCrunch

And in the meantime, US judges are blind and deaf to obvious monopolies in plain sight.

Apple’s decision to only allow Apple Pay to access the NFC chip in iPhones could result in the Silicon Valley giant paying hefty anti-monopoly fines in Europe.

The EU is set to file anti-competitive charges against Cupertino regarding its tap-to-pay system, Reuters reported, citing sources. Euro antitrust watchdogs are apparently not happy that the NFC chips in iPhones and iPads are restricted to the iGiant’s Pay software, unfairly locking out alternative wireless payment apps.

The charges will be the result of a European Commission investigation that started last year into Apple’s terms and conditions with merchants, the limited access to the NFC hardware, and more.

“It is important that Apple’s measures do not deny consumers the benefits of new payment technologies, including better choice, quality, innovation and competitive prices,” said Competition Commissioner Margrethe Vestager in 2020. “I have therefore decided to take a close look at Apple’s practices regarding Apple Pay and their impact on competition.”

[…]

Source: Report: EU to file NFC antitrust charges against Apple Pay • The Register

Several world leaders have denied wrongdoing after featuring in a huge leak of financial documents from offshore companies.

Dubbed the Pandora Papers, the 12 million files constitute the biggest such leak in history.

Russian President Vladimir Putin and Jordan’s King Abdullah II bin Al-Hussein are among some 35 current and former leaders linked to the files.

Both have issued statements saying they have done nothing wrong.

Jordan’s royal palace said it was “not unusual nor improper” that King Abdullah owned property abroad.

Leaked documents show the leader secretly spent more than £70m ($100m) on a property empire in the UK and US since taking power in 1999.

Kremlin spokesman Dmitry Peskov meanwhile questioned the reliability of the “unsubstantiated” information, after it detailed hidden wealth linked to President Putin and members of his inner circle.

[…]

• LIVE: Follow reactions to the leak
• A simple guide to the Pandora Papers leak
• How the world is reporting leaks on powerful leaders

The data was obtained by the International Consortium of Investigative Journalists (ICIJ) in Washington DC, which has been working with more than 140 media organisations on its biggest ever global investigation.

BBC Panorama and the Guardian have led the investigation in the UK.

Other leaders linked to the leak include:

• Czech Prime Minister Andrej Babis, who allegedly failed to declare an offshore investment company used to purchase two villas for £12m in the south of France
• Kenyan President Uhuru Kenyatta, who – along with six members of his family – has been linked to 13 offshore companies
• Chile’s President Sebastián Piñera, a billionaire businessman, who is accused of selling a copper and iron mine in an environmentally sensitive area to a childhood friend, as detailed in Spain’s El Pais newspaper
• And Azerbaijan’s President Ilham Aliyev, whose family and close associates have allegedly been secretly involved in property deals in the UK worth more than £400m

[…]

Source: Pandora Papers: World leaders deny wrongdoing after leaks – BBC News

China’s central bank said on Friday that all cryptocurrency-related transactions are illegal in the country and they must be banned, citing concerns around national security and “safety of people’s assets.” The world’s most populated nation also said that foreign exchanges are banned from providing services to users in the country.

In a joint statement, ten Chinese government agencies vowed to work closely to maintain a “high pressure” crackdown on trading of cryptocurrencies in the nation. The People’s Bank of China separately ordered internet, financial and payment companies from facilitating cryptocurrency trading on their platforms.

The central bank said cryptocurrencies, including Bitcoin and Tether, cannot be circulated in the market as they are not fiat currency. The surge in usage of cryptocurrencies has disrupted “economic and financial order,” and prompted a proliferation of “money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities,” it said.

Offenders, the central bank warned, will be “investigated for criminal liability in accordance with the law.”

The Chinese government will “resolutely clamp down on virtual currency speculation, and related financial activities and misbehaviour in order to safeguard people’s properties and maintain economic, financial and social order,” the People’s Bank of China said in a statement.

The move has already started to cause panic among some crypto traders, sending the price of bitcoin and several other currencies down. Bitcoin was down 5.5% at the time of publication.

[…]

Source: China says all cryptocurrency-related transactions are illegal and must be banned

NEW DELHI, Sept 18 (Reuters) – Google abused the dominant position of its Android operating system in India, using its “huge financial muscle” to illegally hurt competitors, the country’s antitrust authority found in a report on its two-year probe seen by Reuters.

Alphabet Inc’s (GOOGL.O) Google reduced “the ability and incentive of device manufacturers to develop and sell devices operating on alternative versions of Android,” says the June report by the Competition Commission of India’s (CCI) investigations unit.

[…]

Its findings are the latest antitrust setback for Google in India, where it faces several probes in the payments app and smart television markets. The company has been investigated in Europe, the United States and elsewhere. This week, South Korea’s antitrust regulator fined Google $180 million for blocking customised versions of Android.

‘VAGUE, BIASED AND ARBITRARY’

Google submitted at least 24 responses during the probe, defending itself and arguing it was not hurting competition, the report says.

Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O), Apple Inc (AAPL.O), as well as smartphone makers like Samsung and Xiaomi, were among 62 entities that responded to CCI questions during its Google investigation, the report says.

Android powers 98% of India’s 520 million smartphones, according to Counterpoint Research.

When the CCI ordered the probe in 2019, it said Google appeared to have leveraged its dominance to reduce device makers’ ability to opt for alternate versions of its mobile operating system and force them to pre-install Google apps.

The 750-page report finds the mandatory pre-installation of apps “amounts to imposition of unfair condition on the device manufacturers” in violation of India’s competition law, while the company leveraged the position of its Play Store app store to protect its dominance.

Play Store policies were “one-sided, ambiguous, vague, biased and arbitrary”, while Android has been “enjoying its dominant position” in licensable operating systems for smartphones and tablets since 2011, the report says.

The probe was triggered in 2019 after two Indian junior antitrust research associates and a law student filed a complaint, Reuters reported.

[…]

Source: India antitrust probe finds Google abused Android dominance, report shows | Reuters

Federal Trade Commission chair Lina Khan signaled changes are on the way in how the agency scrutinizes acquisitions after revealing the results of a study of a decade’s worth of Big Tech company deals that weren’t reported to the agency.

Why it matters: Tech’s business ecosystem is built on giant companies buying up small startups, but the message from the antitrust agency this week could chill mergers and acquisitions in the sector.

What they found: The FTC reviewed 616 transactions valued at $1 million or more between 2010 and 2019 that were not reported to antitrust authorities by Amazon, Apple, Facebook, Google and Microsoft.

• 94 of the transactions actually exceeded the dollar size threshold that would require companies to report a deal. The deals may have qualified for other regulatory exemptions.
• 79% of transactions used deferred or contingent compensation to founders and key employees, and nearly 77% involved non-compete clauses.
• 36% of the transactions involved assuming some amount of debt or liabilities.

What they’re saying: In a statement, Khan said the report shows that loopholes may be “unjustifiably enabling deals to fly under the radar.”

• Matt Stoller, director of research at the American Economic Liberties Project, said the high percentage of non-compete clauses was especially troubling.
• “If nothing else, it’s a clear anticompetitive intent to just take talent and prevent them from competing with you,” Stoller said. “And there is a limited amount of tech talent.”

The other side: Nothing in the report indicates that rules were broken or that the deals were anticompetitive, Neil Chilson, a former FTC adviser, pointed out.

• “I think the message is pretty clear from the chair: She’s suspicious of mergers, no matter what the size, just based on a belief that mergers at any size are suspect and should be reviewed,” Chilson, now senior research fellow for Tech and Innovation at Stand Together, told Axios.
• “The law certainly is not behind her on that, and I don’t think the economics are particularly there either, and nothing in the report supports that assertion.”

Source: FTC releases findings on how Big Tech eats little tech – Axios

There we go – it’s a problem I have been talking about for some time

A man who the Department of Justice says unlocked AT&T customers’ phones for a fee was sentenced to 12 years in prison, in what the judge called “a terrible cybercrime over an extended period,” which allegedly continued even after authorities were on to the scheme.

According to a news release from the DOJ, in 2012, Muhammad Fahd, a citizen of Pakistan and Grenada, contacted an AT&T employee via Facebook and offered the employee “significant sums of money” to help him secretly unlock AT&T phones, freeing the customers from any installment agreement payments and from AT&T’s service.

Fahd used the alias Frank Zhang, according to the DOJ, and persuaded the AT&T employee to recruit other employees at its call center in Bothell, Washington, to help with the elaborate scheme. Fahd instructed the AT&T employees to set up fake businesses and phony bank accounts to receive payments, and to create fictitious invoices for deposits into the fake accounts to create the appearance that money exchanged as part of the scheme was payment for legitimate services.

In 2013, however, AT&T put into place a new unlocking system which made it harder for Fahd’s crew to unlock phones’ unique IMEI numbers, so according to the DOJ he hired a developer to design malware that could be installed on AT&T’s computer system. This allegedly allowed him to unlock more phones, and do so more efficiently. The AT&T employees working with Fahd helped him access information about its systems and other employees’ credentials, allowing his developer to tailor the malware more precisely, the DOJ said.

A forensic analysis by AT&T showed Fahd and his helpers fraudulently unlocked more than 1.9 million phones, costing the company more than $200 million. Fahd was arrested in Hong Kong in 2018 and extradited to the US in 2019. He pleaded guilty in September 2020 to conspiracy to commit wire fraud.

It’s not clear from the DOJ release whether anyone besides AT&T was harmed as a result of the scheme; there’s no mention of customers’ phones being otherwise compromised or any personal data being accessed. We’ve reached out to the DOJ to clarify whether any AT&T customers were affected.

Source: Man who unlocked nearly 2 million AT&T phones gets 12 years in prison – The Verge

So much for initiative then…

South Korea’s competition regulator on Tuesday announced it will fine Google 207.4 billion Korean won ($176.9 million) for allegedly using its dominant market position in the mobile operating system space to stifle competition.

Google’s Android operating system currently holds the lion’s share of the smartphone market, ahead of Apple’s iOS platform.

The U.S. tech giant allegedly used its market position to block smartphone makers like Samsung from using operating systems developed by rivals, according to the Korea Fair Trade Commission.

Yonhap News added that the regulator, which published its decision in Korean, said the tech giant required smartphone makers to agree to an “anti-fragmentation agreement (AFA)” when signing key contracts with Google over app store licenses and early access to the operating system.

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That agreement prevented device makers from installing modified versions of the Android operating system, known as “Android forks,” on their handsets, Yonhap reported.

The regulator alleged that Google’s practice stifled innovation in the development of new operating systems for smartphones, the news site added. The KFTC has asked the tech giant to stop forcing companies to sign AFAs and ordered it to take corrective steps, according to Yonhap.

[…]

Tuesday’s fine is small compared with the tech giant’s quarterly figures. Last quarter, Google’s parent company Alphabet reported $61.88 billion in revenue.

[…]

In late August, the country’s parliament approved a bill that will allow app developers to avoid paying hefty commissions to major app store operators, including Google, by directing users to pay via alternate platforms.

Source: South Korea’s antitrust regulator fines Google $177 million