Data security measures must be bolstered by Marriott and Starwood

Marriott International and Starwood Hotels have been ordered to improve data security following multiple breaches impacting over 344 million customers. The Federal Trade Commission (FTC) finalised the order on Friday, citing inadequate security practices. Major breaches occurred in 2015, 2018, and 2020, exposing sensitive customer information, including passport details and payment data.

Hackers gained prolonged access to systems during the breaches, with one lasting four years undetected. The companies must now implement measures such as limiting data retention and providing US customers with a way to request the deletion of personal information tied to their accounts.

The FTC accused the hotel chains of misleading consumers with claims of robust data security while failing to address basic vulnerabilities like weak passwords and outdated software. The Connecticut Attorney General’s office also announced a $52 million settlement with Marriott on the same day.

Under the 20-year order, Marriott and Starwood must maintain compliance records, undergo inspections, and ensure transparency about their data handling practices. The ruling is part of broader efforts to hold businesses accountable for safeguarding customer information.

Synopsys faces UK competition probe over $35 billion Ansys merger

The UK’s Competition and Markets Authority (CMA) has voiced concerns over Synopsys’ proposed $35 billion acquisition of Ansys, claiming the deal could harm innovation, reduce product quality, and increase costs in the semiconductor design and light-simulation software markets. The regulator fears diminished competition could negatively impact UK businesses and consumers, particularly in sectors such as artificial intelligence and cloud computing, which rely heavily on semiconductor technology.

Synopsys, a leader in chip design software, announced the acquisition in January, aiming to combine its tools with Ansys’ diverse software offerings, used in industries ranging from aerospace to consumer goods. However, the CMA has highlighted risks of reduced consumer choice and a potential stifling of advancements in the sector. If these concerns are not adequately addressed, the regulator may initiate an in-depth investigation into the merger.

In response, Synopsys has proposed selling its optical solutions business to Keysight Technologies, a move it believes will satisfy the CMA’s concerns. A company spokesperson expressed confidence in resolving the regulatory hurdles and expects the deal to close in the first half of 2025. The CMA’s final decision could shape the future landscape of competition in the semiconductor and simulation software industries, as global demand for advanced technologies continues to grow.

US case prompts Google to revise search engine practices

Google has proposed changes to its agreements with companies like Apple to address a US antitrust ruling against its dominance in online search. The tech giant suggested making its distribution deals non-exclusive and allowing annual reviews for developers who set Google as the default search engine.

The company urged caution against drastic measures such as selling its Chrome browser or unbundling Android features, arguing that such remedies could stifle innovation in a rapidly evolving AI landscape. Judge Amit Mehta previously found Google’s agreements gave it an unfair advantage, particularly through deals requiring Android manufacturers to pre-install Google search to access its Play Store.

Revenue-sharing deals, which are vital to smaller developers like Mozilla, would remain under Google’s plan. Critics, including DuckDuckGo, argue the proposal fails to restore competition and largely maintains the status quo. Apple reportedly earned $20 billion from its agreement with Google in 2022, underlining the financial stakes of these deals.

An April trial will determine if broader remedies are necessary to boost innovation and competition in search and artificial intelligence. The US Department of Justice, along with several states, is seeking measures to curb Google’s dominance, including restrictions on its payments for default search placement and licensing of its search technology to rivals.

Qualcomm wins key chips trial against Arm

Qualcomm achieved a significant win in a US federal court trial against Arm Holdings over licensing rights for its central processors. The jury concluded that Qualcomm’s chips, developed with Nuvia technology, are properly licensed under an agreement with Arm, ensuring the company can continue its expansion into laptop chipmaking.

Despite the ruling, the jury could not reach a unanimous verdict on whether startup Nuvia, acquired by Qualcomm in 2021 for $1.4 billion, breached its licence with Arm. Arm plans to seek a new trial, citing its commitment to protecting its intellectual property. The Delaware court judge encouraged both parties to mediate their dispute rather than pursue prolonged litigation.

The outcome supports Qualcomm’s ambitions in the laptop market, where it aims to challenge competitors such as Nvidia, AMD, and MediaTek with its AI-focused chips. Analysts see reduced risk to Qualcomm’s roadmap, particularly regarding access to Nuvia’s custom core designs, which are central to its strategy.

The trial highlighted broader industry implications for licensing agreements and intellectual property rights involving Arm’s architecture. Arm, which licenses its designs to major companies like Apple and Qualcomm, sought higher royalties from Qualcomm after its acquisition of Nuvia. While the legal battle continues, Qualcomm’s victory signals a strong position in the emerging PC market for Arm-based processors.

WhatsApp wins case as US judge rules against NSO Group

A US judge has ruled against Israel’s NSO Group in a lawsuit brought by WhatsApp, finding the spyware firm liable for hacking and breach of contract. The case, heard in Oakland, California, revolves around allegations that NSO exploited a vulnerability in WhatsApp to install Pegasus spyware, enabling unauthorised surveillance of 1,400 individuals. The court decision moves the case forward to determine damages.

Will Cathcart, head of WhatsApp, described the ruling as a triumph for privacy, emphasising the need for accountability in the spyware industry. WhatsApp expressed gratitude for support from various organisations and pledged continued efforts to safeguard private communications. Cybersecurity experts, including Citizen Lab’s John Scott-Railton, hailed the judgment as a pivotal moment for holding spyware companies accountable.

NSO argued that its Pegasus software serves to combat serious crime and threats to national security. However, the courts previously rejected claims of immunity, noting the company’s activities fell outside the protection of federal law. Appeals by NSO to higher courts, including the US Supreme Court, failed, paving the way for the trial to proceed.

The judgment signals a significant shift in how the spyware industry may be regulated, with implications for firms previously claiming they were not responsible for the misuse of their technology. Experts see it as a warning to surveillance companies that illegal actions will not go unchallenged.

Japan set to find Google guilty of antitrust violations, Nikkei Asia reports

According to a report by Nikkei Asia, Japan’s competition watchdog, the Japan Fair Trade Commission (JFTC), is expected to find Google guilty of violating the country’s antitrust laws. The JFTC is reportedly preparing to issue a cease-and-desist order, directing Google to halt its monopolistic practices. The investigation, which began last October, focuses on Google’s dominance in web search services.

Google has yet to comment on the allegations, and the JFTC has also not responded to requests for a statement. This investigation follows similar antitrust actions in Europe and other major economies, where concerns have been raised about Google’s market power. The company’s Chrome browser, which is the most widely used globally, plays a central role in its advertising business by providing valuable user data.

This development comes amid increasing scrutiny of Google’s practices. In the US, the Department of Justice has argued that Google should be forced to divest Chrome and be banned from re-entering the browser market for five years as part of efforts to address its search engine monopoly.

Court rules against Craig Wright’s Bitcoin inventor claim

Craig Wright, an Australian computer scientist, has been found in contempt of court for falsely asserting he is Bitcoin’s creator, Satoshi Nakamoto. Despite a High Court ruling in March debunking his claim, Wright continued launching lawsuits seeking intellectual property rights over Bitcoin, including a $1.2 trillion demand.

The court described Wright‘s actions as ‘legal terrorism’ and sentenced him to a suspended 12-month prison term. If he persists, he risks jail time. Wright’s claim lacked concrete evidence, prompting the cryptocurrency industry to unite against him.

The court found Wright ‘lied extensively’ in his pursuit of recognition, creating a ‘chilling effect’ on the industry. The identity of Bitcoin’s inventor, Satoshi Nakamoto, remains unknown, as all claims, including Wright’s, have been discredited.

Senators push Biden to extend TikTok sale deadline amid legal uncertainty

Democratic Senator Ed Markey and Republican Senator Rand Paul are urging President Joe Biden to extend the January 19 deadline for ByteDance, the China-based owner of TikTok, to sell the app’s US assets or face a nationwide ban. The Supreme Court is set to hear arguments on January 10 regarding ByteDance’s legal challenge, which claims the law mandating the sale violates First Amendment free speech rights. In their letter to Biden, the senators highlighted the potential consequences for free expression and the uncertain future of the law.

The controversial legislation, signed by Biden in April, was passed due to national security concerns. The Justice Department asserts that TikTok’s vast data on 170 million American users poses significant risks, including potential manipulation of content. TikTok, however, denies posing any threat to US security.

The debate has split lawmakers. Senate Minority Leader Mitch McConnell supports enforcing the deadline, while President-elect Donald Trump has softened his stance, expressing support for TikTok and suggesting he would review the situation. The deadline falls just a day before Trump is set to take office on January 20, adding to the uncertainty surrounding the app’s fate.

US Supreme Court to hear TikTok’s bid to block ban

The US Supreme Court has agreed to review a case involving TikTok and its Chinese parent company, ByteDance, in a challenge against a law requiring the app’s sale or a ban in the US by January 19. The court will hear arguments on 10 January but has not yet decided on TikTok’s request to block the law, which it claims violates free speech rights under the First Amendment. TikTok, used by 170 million Americans, argues the law would harm its operations and user base, while US officials cite national security concerns over data access and content manipulation.

The Justice Department has labelled TikTok a significant security risk due to its Chinese ownership, while TikTok denies posing any threat and accuses lawmakers of speculation. The law, passed in April and signed by President Biden, would ban the app unless ByteDance divests its ownership. The company warns that even a temporary shutdown could damage its US market share, advertising revenue, and ability to recruit creators and staff.

The case also reflects heightened tensions between the US and China over technology and trade policies. TikTok’s fate could set a precedent for the treatment of other foreign-owned apps, raising questions about free speech and digital commerce. The Supreme Court’s decision may have far-reaching implications for the platform’s future and US-China relations.

Former Delphi Digital VP sentenced to four years for embezzling $4.5 million

A former vice president of finance at Delphi Digital has been sentenced to four years in jail after admitting to embezzling nearly $4.5 million from the cryptocurrency research company. Dylan Meissner will also serve two years of supervised release and must repay more than $4.6 million, including funds he stole and an unpaid loan.

The Connecticut District Court found that Meissner, who managed Delphi’s finances between October 2021 and November 2022, accessed the company’s crypto wallets and bank accounts to steal millions. He also fabricated financial records to cover up the theft. In one instance, he took a 50 Ether loan worth $170,000 but failed to repay it, marking the start of his fraudulent activities.

Prosecutors argued that Meissner’s actions were part of a calculated scheme, not a reckless act of desperation. Though his defence cited substance abuse and efforts to atone for his actions, the court noted the sustained nature of his crimes. Meissner pleaded guilty to wire fraud as part of a deal and will report to jail in February 2025.