Businesses

How To Tame the Tech Titans (economist.com) 192

dryriver shares an opinion piece from The Economist: Not long ago, being the boss of a big Western tech firm was a dream job. As the billions rolled in, so did the plaudits: Google, Facebook, Amazon and others were making the world a better place. Today these companies are accused of being BAADD -- big, anti-competitive, addictive and destructive to democracy. Regulators fine them, politicians grill them and one-time backers warn of their power to cause harm. Much of this techlash is misguided. The presumption that big businesses must necessarily be wicked is plain wrong. Apple is to be admired as the world's most valuable listed company for the simple reason that it makes things people want to buy, even while facing fierce competition. Many online services would be worse if their providers were smaller. Evidence for the link between smartphones and unhappiness is weak. Fake news is not only an online phenomenon.

But big tech platforms, particularly Facebook, Google and Amazon, do indeed raise a worry about fair competition. That is partly because they often benefit from legal exemptions. Unlike publishers, Facebook and Google are rarely held responsible for what users do on them; and for years most American buyers on Amazon did not pay sales tax. Nor do the titans simply compete in a market. Increasingly, they are the market itself, providing the infrastructure (or "platforms") for much of the digital economy. Many of their services appear to be free, but users "pay" for them by giving away their data. Powerful though they already are, their huge stockmarket valuations suggest that investors are counting on them to double or even triple in size in the next decade. There is thus a justified fear that the tech titans will use their power to protect and extend their dominance, to the detriment of consumers (see article). The tricky task for policymakers is to restrain them without unduly stifling innovation.

The Internet

Ajit Pai's FCC Can't Admit Broadband Competition Is a Problem (dslreports.com) 109

An anonymous reader quotes a report from DSLReports: While the FCC is fortunately backing away from a plan that would have weakened the standard definition of broadband, the agency under Ajit Pai still can't seem to acknowledge the lack of competition in the broadband sector. Or the impact this limited competition has in encouraging higher prices, net neutrality violations, privacy violations, or what's widely agreed to be some of the worst customer service of any industry in America. The Trump FCC had been widely criticized for a plan to weaken the standard definition of broadband from 25 Mbps down, 3 Mbps up, to include any wireless connection capable of 10 Mbps down, 1 Mbps up. Consumer advocates argued the move was a ham-fisted attempt to try and tilt the data to downplay the industry's obvious competitive and coverage shortcomings. They also argued that the plan made no coherent sense, given that wireless broadband is frequently capped, often not available (with carrier maps the FCC relies on falsely over-stating coverage), and significantly more expensive than traditional fixed-line service.

In a statement (pdf), FCC boss Ajit Pai stated the agency would fortunately be backing away from the measure, while acknowledging that frequently capped and expensive wireless isn't a comparable replacement for fixed-line broadband. "The draft report maintains the same benchmark speed for fixed broadband service previously adopted by the Commission: 25 Mbps download/3 Mbps upload," stated Pai. "The draft report also concludes that mobile broadband service is not a full substitute for fixed service. Instead, it notes there are differences between the two technologies, including clear variations in consumer preferences and demands." That's the good news. The bad news: the FCC under Pai's leadership continues to downplay and ignore the lack of competition in the sector, and the high prices and various bad behaviors most people are painfully familiar with.

Privacy

Trump Signs Surveillance Extension Into Law (thehill.com) 94

President Trump took to Twitter this afternoon to announce that he has signed a six-year renewal of a powerful government surveillance tool. "Just signed 702 Bill to authorize foreign intelligence collection," Trump tweeted. "This is NOT the same FISA law that was so wrongly abused during the election. I will always do the right thing for our country and put the safety of the American people first!" The Hill reports: Section 702 of the Foreign Intelligence Surveillance Act (FISA), which the Senate voted to renew with a few small tweaks this week, allows the U.S. to spy on foreigners overseas. The intelligence community says the program is a critical tool in identifying and disrupting terror plots. But the broader surveillance law, which governs U.S. spying on foreigners, has become politically entangled with the controversy over the federal investigation into Trump's campaign and Russia. Some Republicans have claimed that the FBI inappropriately obtained a politically motivated FISA warrant to spy on Trump during the transition and on Friday, Capitol Hill was consumed with speculation about a four-page memo produced by House Intelligence Committee Republicans that some GOP lawmakers hinted contained evidence of such wrongdoing.
Businesses

Linking Is Not Copyright Infringement, Boing Boing and EFF Tell Court (torrentfreak.com) 90

An anonymous reader shares a report: The popular blog Boing Boing has asked a federal court in California to drop the copyright infringement lawsuit filed against it by Playboy. With help from the EFF, Boing Boing argues that its article linking to an archive of hundreds of centerfold playmates is clearly fair use. Or else it will be "the end of the web as we know it," the blog warns. Late last year Playboy sued the popular blog Boing Boing for publishing an article that linked to an archive of every playmate centerfold till then. "Kind of amazing to see how our standards of hotness, and the art of commercial erotic photography, have changed over time," Boing Boing's Xena Jardin commented. Playboy, instead, was amazed that infringing copies of their work were being shared in public. While Boing Boing didn't upload or store the images in question, the publisher took the case to court.
Businesses

China's Smartphone Maker OnePlus Says Up To 40,000 Customers Were Affected by Credit Card Security Breach (theverge.com) 8

sqorbit writes: OnePlus, a manufacturer of an inexpensive smartphone meant to compete with the iPhone, states that data from 40,000 customers credit card information was stolen while purchasing phones from its website. Even as the company has just confirmed the breach, it says the the script stealing information had been running since November. It is not clear whether this was a remote attack or the attack happened from within the company. Credit purchases on the OnePlus site have been suspended and will remain that way while an investigation takes place. [...] Earlier this week, OnePlus had temporarily shut down credit card payments on its website following reports that customers' payment details were stolen after they bought goods through its online store. The company says it's disabling credit card payments "as a precaution," but will still be accepting purchases through PayPal. The investigation began after a poll posted by users on OnePlus' forums found that many customers had experienced the same problem.
Businesses

Instant Messaging Company Snap Threatens Jail Time for Leakers (cheddar.com) 92

An anonymous reader shares a report: Snap has a simple message to its employees: leak information and you could be sued or even jailed. The chief lawyer and general counsel of Snapchat's parent company, Michael O'Sullivan, sent a threatening memo to all employees last week just before The Daily Beast published an explosive story with confidential user metrics about how certain Snapchat features are used. "We have a zero-tolerance policy for those who leak Snap Inc. confidential information," O'Sullivan said in the memo, a copy of which was obtained by Cheddar. "This applies to outright leaks and any informal 'off the record' conversations with reporters, as well as any confidential information you let slip to people who are not authorized to know that information."

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