US

Google faces antitrust trial in US over ad dominance

Google is set to face a critical antitrust trial as the US Department of Justice targets the tech giant’s advertising practices, accusing the company of using its dominance to stifle competition and harm news publishers. The legal case will be heard in Alexandria, Virginia, and marks another important move in the Biden administration’s broader campaign to curb the influence of Big Tech through the enforcement of antitrust laws.

The trial will scrutinise Google’s less-visible but highly lucrative adtech system, which connects advertisers with website publishers and accounted for over 75% of Google’s $307.4 billion in revenue last year. While the Justice Department recently won against Google in a separate case concerning the company’s search engine monopoly, this new trial will delve into how Google allegedly maintains a ‘privileged position’ as the dominant middleman in the digital advertising market.

Prosecutors and a coalition of states argue that Google’s dominance in adtech is due to its strategy of tying together tools for advertisers and publishers, effectively controlling critical parts of the advertising ecosystem. They claim Google controls 91% of the ad server market, over 85% of ad networks, and more than half of the ad exchange market, making it nearly impossible for competitors to gain a foothold. Google, however, disputes these figures, arguing that when broader markets like social media and streaming are considered, its market share is significantly lower.

It is expected to feature testimony from key players in the advertising industry and executives from major news organisations that have felt the impact of Google’s practices. The Justice Department will likely argue that the consolidation of the digital advertising market, primarily driven by Google, has contributed to the decline of journalism, with one-third of US newspapers closing or being sold since 2005.

On the other hand, Google is expected to defend its business practices by highlighting its tools’ benefits to small businesses and publishers, arguing that a breakup would stifle innovation and harm these smaller players. The company has lined up witnesses to support this narrative, including current and former executives, such as YouTube CEO Neal Mohan, who played a significant role in developing Google’s adtech.

Intel faces scrutiny in US over planned job reductions

Senator Rick Scott has questioned Intel’s decision to cut over 15,000 jobs despite the company being set to receive nearly $20 billion in US grants and loans. His concerns centre on whether the Commerce Department’s metrics are robust enough to ensure taxpayer funds support US manufacturing and job creation.

In May, the Commerce Department announced a preliminary agreement for Intel to receive $8.5 billion in grants, up to $11 billion in loans, and access to a 25% investment tax credit. These funds are intended to create over 10,000 manufacturing jobs and nearly 20,000 construction jobs across several states, although the deal still needs to be finalised.

Despite these investments, Intel has announced plans to cut costs by $10 billion by 2025, reducing its workforce by more than 15%, mainly by the end of this year. CEO Pat Gelsinger noted that Intel’s workforce has grown by 10% since 2020 but with significantly lower revenue in 2023, causing a lower need for staff.

Scott is now seeking details on how many US employees will be affected and how these cuts might impact Intel’s semiconductor manufacturing investments in the country.

TikTok faces new challenges as key leader exits

Nicole Lacopetti, TikTok’s head of content strategy and policy, is set to leave the company in September, marking a significant change in the platform’s leadership. Her departure follows the earlier exit of former COO V Pappas and the ongoing reorganisation led by current COO Adam Presser.

TikTok’s strategy is evolving as the platform grows, aiming to cater to an older audience. According to industry insights, content is becoming more complex and engaging, with a notable trend toward interactive elements like online games, which have gained popularity among users over 30.

The platform has faced severe scrutiny from US lawmakers, who have raised concerns over data privacy and its connections to China, leading to discussions of a potential ban. Despite these challenges, TikTok remains a powerful tool for reaching younger audiences, particularly in the political sphere, where it engages younger voters.

As TikTok navigates these changes, the platform’s influence in the political landscape is expected to grow, with the next US president needing to acknowledge its power in connecting with voters more personally and dynamically.

Meta uncovers hack attempts on US officials’ WhatsApp accounts

Meta recently announced that it had detected attempts to hack WhatsApp accounts belonging to US officials from both the Biden and Trump administrations. The company linked these efforts to an Iranian hacker group, APT42, which has previously been connected to breaches in the Trump campaign. Meta described the attempts as a small-scale operation using social engineering tactics, where hackers posed as technical support from major companies like AOL, Google, Yahoo, and Microsoft.

After users flagged these suspicious activities, Meta blocked the accounts and confirmed that none of the targeted WhatsApp accounts had been compromised. The company explained that APT42 is known for deploying surveillance software on victims’ mobile devices, enabling them to access calls and text messages and even activate cameras and microphones without detection.

These hacking attempts are reportedly part of a broader campaign targeting US presidential campaigns earlier this month, just ahead of the upcoming presidential election. While Meta did not disclose the identities of those targeted, it indicated that the hackers focused on political and diplomatic figures, as well as business leaders from several countries, including the US, UK, Israel, the Palestinian territories, and Iran.

Meta’s findings underscore the ongoing risks of cyber-attacks targeting political figures and highlight the need for increased vigilance as the US heads into a critical election period.

Tech groups urge US Congress to pass SAMOSA Act

Tech industry groups are pressing US congressional leaders to pass the Strengthening Agency Management and Oversight of Software Assets (SAMOSA) Act before the current congressional term concludes. The legislation has been awaiting passage for over a year and aims to improve federal agency oversight and management of software purchases.

The bill seeks to reduce unnecessary technology costs by mandating comprehensive assessments of current software management practices in federal agencies. The SAMOSA Act’s supporters argue that current practices, such as inflexible licensing agreements and limited integration capabilities, prevent agencies from adopting the most cost-effective solutions. In this case, the inefficiency can lead to waste, fraud, and abuse of taxpayer dollars. The Government Accountability Office has also emphasised the need for better software purchasing practices, highlighting redundancies and over-purchasing in the federal government’s IT spending, which exceeds $100 billion annually.

Why does this matter?

Given the potential cost savings and operational efficiencies, the bill has garnered broad support from major tech advocacy organisations, including the Coalition for Fair Software Licensing and the Alliance for Digital Innovation. Despite this, the passage of the SAMOSA Act remains to be determined due to the increasingly partisan nature of Congress. Advocates hope the bill will be attached to a must-pass piece of legislation, such as the National Defense Authorization Act, to ensure its enactment. However, concerns remain about potential implications for national security, which may affect the bill’s progress.

Amazon and rivals supply Chinese firms with US tech

Chinese entities linked to the state are turning to cloud services from Amazon and its rivals to access advanced US chips and AI capabilities that are otherwise restricted. Over the past year, at least 11 Chinese organisations have sought cloud services to bypass US export restrictions on high-end AI chips, according to tender documents.

Amazon Web Services (AWS) was specifically mentioned as a provider in several cases, though Chinese intermediaries were used to access the services. US regulations focus on the export or transfer of physical technology, leaving a loophole for cloud-based access. This has allowed US companies to profit from China’s growing demand for computing power.

Efforts to close this loophole are ongoing. US legislators have expressed concerns, and the Commerce Department is considering new rules to tighten control over remote access to advanced technology. AWS has stated that it complies with all applicable laws, including trade regulations in the countries where it operates.

Microsoft’s cloud services have also been sought by Chinese universities for AI projects. These activities highlight the increasing demand for US technology in China and the challenges in enforcing export controls. Both Amazon and Microsoft declined to comment on specific deals, but the implications for US-China tech relations are significant.

Amazon cloud aids Chinese access to banned US technology

Several Chinese state-linked entities are turning to cloud services to access restricted US technology, according to recent public tender documents. By using cloud platforms like Amazon Web Services (AWS), these entities gain access to advanced chips and AI capabilities that would otherwise be unavailable due to US trade restrictions.

Entities like Zhejiang Lab and the National Center of Technology Innovation for EDA have expressed interest in using AWS for AI development. Others, such as Shenzhen University and Fujian Chuanzheng Communications College, have reportedly utilised Nvidia chips through cloud services, circumventing US export bans.

Microsoft’s Azure platform has also attracted attention from Chinese institutions like Chongqing Changan Automobile Co and Sichuan University, which are exploring generative AI technology. The ability to integrate these advanced tools into their systems is seen as critical for maintaining competitiveness.

Concerns remain over the use of US technology by Chinese organisations, especially those with potential military applications. Universities such as Southern University of Science and Technology and Tsinghua University have pursued cloud access to Nvidia chips, despite US efforts to restrict such technology transfers.

AI ammo vending machines spark safety concerns in US

Two US Senators, Ed Markey and Elizabeth Warren, have raised alarms about AI-enabled ammunition vending machines recently appearing in some states’ grocery stores. The machines, developed by Texas-based American Rounds, use facial recognition and card scanning technology to verify a buyer’s identity and age. However, the Senators argue that these machines could potentially allow people with criminal convictions, who are legally barred from purchasing ammunition, to bypass federal restrictions.

The vending machines have been installed in supermarkets in Alabama, Texas, and Oklahoma since July. They do not impose limits on the quantity of ammunition a person can buy at one time, which has added to the concerns about their potential misuse. Markey and Warren sent a letter to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) urging the agency to closely scrutinise these machines, warning that their easy access could exacerbate the country’s gun violence epidemic, which claims over 44,000 lives annually.

The Senators’ letter highlights the risks associated with removing face-to-face sales, noting that human clerks at gun shops can often detect suspicious behaviour, such as straw purchases or signs that a person might use ammunition for self-harm or violence. The vending machines, lacking this human oversight, could facilitate unlawful purchases and increase the risk of ammunition falling into the wrong hands.

Moreover, the letter criticises the facial recognition technology used by the machines, citing studies that show higher error rates in identifying women and people of colour compared to white men. The inaccuracies, they argue, could lead to false approvals, with serious legal consequences for both buyers and vendors.

The Senators have requested that the ATF provide a detailed response to their concerns by the end of August. While the ATF has acknowledged that commercial ammunition sales must comply with state and federal laws, it has yet to respond publicly to the Senators’ concerns.

US court revives Chrome users’ privacy lawsuit against Google

A US appeals court has reinstated a lawsuit against Google, allowing Chrome users to pursue claims that the company collected their data without permission. The case centres on users who chose not to synchronise their Chrome browsers with their Google accounts yet allege that Google still gathered their information.

The 9th US Circuit Court of Appeals in San Francisco determined that a lower court had prematurely dismissed the case without adequately considering whether users had consented to the data collection. The decision follows a previous settlement where Google agreed to destroy billions of records in a similar lawsuit, which accused the company of tracking users who believed they were browsing privately in Chrome’s ‘Incognito’ mode.

Google has expressed disagreement with the ruling, asserting confidence in its privacy controls and the benefits of Chrome Sync, which helps users maintain a consistent experience across devices. However, the plaintiffs’ lawyer welcomed the court’s decision and is preparing for a trial.

Why does this matter?

Initially dismissed in December 2022, the lawsuit has now been sent back to the district court for further proceedings. The case could impact thousands of Chrome users using the browser since July 2016 without enabling the sync function, raising broader questions about the clarity and transparency of Google’s privacy policies.

Misinformation fuels boycotts of major US companies

Amid the heated political landscape in the United States, major companies like Google and Netflix are facing calls for boycotts due to alleged political affiliations. These online campaigns, mainly driven by false information, suggest that these companies support Kamala Harris in the upcoming election. However, these claims are baseless and have been debunked by fact-checkers.

The boycott calls have gained traction on platforms like X, owned by Elon Musk, who has shown support for Donald Trump. Fake accounts on X have broadly spread these false narratives, leading to widespread calls for users to cancel their Netflix subscriptions and avoid Google’s services. Despite Netflix’s clarification that any donations were personal and not connected to the company, the misinformation has continued to spread, illustrating the vulnerability of brands in today’s politically charged environment.

The disinformation campaigns highlight how quickly false information can manipulate public opinion and consumer behaviour, especially in the lead-up to an election. Musk’s influence on X and his criticisms of companies like Google have fueled these misleading narratives.

Surveys indicate that many consumers prefer companies to stay neutral in political matters, yet the polarised environment makes this difficult. The controversy has also led to a decline in advertising on X as brands seek to distance themselves from platforms that enable disinformation.

The impact of these boycotts and the broader disinformation campaigns underscores the challenges companies face in maintaining their reputation and trust in an increasingly divided society. As the election approaches, the risk of such campaigns influencing public opinion and consumer actions remains high.