US

Supreme Court’s overruling of Chevron deference alters cybersecurity agenda in the US

The recent decision by the US Supreme Court to overturn the long-standing ‘Chevron deference’ doctrine will have significant implications for the Biden administration’s cybersecurity agenda, particularly regarding the protection of critical infrastructure. The ruling shifts the power to interpret and enforce laws related to cybersecurity from executive agencies to Congress and the courts, marking a departure from the previous approach that relied on agency-led initiatives to enhance cybersecurity practices.

One key takeaway from this development is how it has revealed the inadequacies in the cybersecurity practices of critical infrastructure organisations. Despite the rise in cyber threats targeting these entities, many have failed to implement baseline security measures like multifactor authentication, making them vulnerable to attacks. The absence of stringent regulations mandating such practices has exacerbated these organisations’ cybersecurity challenges.

The Biden administration’s strategy of leveraging existing agency rules to bolster cybersecurity measures is now facing a regulatory overhaul. The government must implement a more comprehensive legislative approach to address cybersecurity gaps.

Looking ahead, the repeal of the Chevron deference doctrine is set to usher in a new era of cybersecurity regulation, with a stronger emphasis on congressional involvement in shaping cybersecurity policies. The increased engagement of legislative affairs staffers, lobbyists, and advocates in the regulatory process shows a shift towards a more collaborative and evidence-based approach to cybersecurity governance.

Why does it matter?

As the landscape of cybersecurity regulation evolves in response to this landmark decision, critical infrastructure sectors are expected to face renewed scrutiny regarding their cybersecurity preparedness. The need for robust cybersecurity frameworks and proactive measures to safeguard vital infrastructure assets has never been more pressing. Therefore, the implementation of comprehensive and effective cybersecurity regulations is becoming imperative.

China leads in genAI patents, US in advanced AI, says WIPO report

China leads the world in generative AI patent requests, significantly outpacing the United States, according to the UN’s World Intellectual Property Organization (WIPO). The technology, which has surged in public awareness since late 2022, was linked to approximately 54,000 inventions over the past decade. More than a quarter of these were filed just last year, highlighting the rapid growth and interest in generative AI.

WIPO’s report, the first of its kind, aims to track trends in generative AI development through patent applications. Over 38,200 generative AI inventions originated from China in the past decade, far surpassing the nearly 6,300 from the USA. South Korea, Japan, and India followed with significantly fewer patents. Generative AI, which includes tools like ChatGPT, Google Gemini, and Baidu’s Ernie, is utilised across various industries, including life sciences, manufacturing, and telecommunications.

Despite the many patents, WIPO cautions that quantity does not equate to quality. It remains uncertain which patents will hold market value or have a transformative impact on society. While the US and China are often seen as rivals in AI development, US tech companies currently lead the production of cutting-edge AI systems. In 2023, US-based institutions produced 61 notable machine-learning models, compared to 21 from the EU and 15 from China. The US also leads in AI foundation models and private AI investments.

Mobile political spam triples ahead of 2024 US election

According to research conducted by Proofpoint, the volume of mobile political spam ahead of the 2024 election has tripled compared to the 2022 midterms. The study indicates a growing trend among US voters to seek information through digital platforms, which can increase their vulnerability to cybercriminal activities.

With 60% of American adults favouring digital media for news consumption and 86% using smartphones, tablets, or computers, there is a notable reliance on digital channels. Nearly all US voters (97%) have access to mobile messaging services. Despite the widespread trust in mobile messaging, Proofpoint warns that the surge in smishing, impersonation, and unwanted spam messages is nowadays eroding this confidence.

While many voters are cautious about fake news on social media, fewer recognise the significant risks associated with mobile messaging and email impersonation tactics. Notably, incidents of election-related smishing attacks have risen by over 7% in the past nine months compared to the previous period.

The increase in mobile political messaging, commonly used by campaigns and interest groups, has coincided with a rise in malicious activities. For instance, following former President Donald J. Trump’s guilty verdict in his ‘hush money’ trial, there was a notable 240% increase in unwanted political messaging within 48 hours, with reported volumes reaching tens of millions.

Why does it matter?

Proofpoint emphasised the importance of voters proactively defending themselves against impersonation attacks during this election season. They advise voters to be cautious with unsolicited messages, particularly those urging immediate action. The company also called on mobile operators to prioritise the protection of their users. Maintaining a healthy level of scepticism is crucial for all parties involved.

To mitigate the risks associated with malicious mobile messaging, voters are advised to refrain from opening attachments or clicking on links in such messages. Instead, it is recommended that you enter known URLs into web browsers directly. Thoroughly scrutinising all election-related digital communications is essential to verify their authenticity.

Oracle warns of significant financial impact from potential US TikTok ban

Oracle has cautioned investors that a potential US ban on TikTok could negatively impact its financial results. A new law signed by President Biden in April could make it illegal for Oracle to provide internet hosting services to TikTok unless its China-based owners meet certain conditions. Oracle warned that losing TikTok as a client could harm its revenue and profits, as TikTok relies on Oracle’s cloud infrastructure for storing and processing US user data.

Analysts consider TikTok one of Oracle’s major clients, contributing significantly to its cloud business revenue. Estimates suggest Oracle earns between $480 million to $800 million annually from TikTok, while its cloud unit generated $6.9 billion in sales last year. The cloud business’s growth, driven by demand for AI work, has boosted Oracle’s shares by 34% this year.

Why does it matter?

The new law requires TikTok to find a US buyer within 270 days or face a ban, with a possibility of extension. TikTok, which disputes the security concerns, has sued to overturn the law. It highlights its collaboration with Oracle, termed ‘Project Texas,’ aimed at safeguarding US data from its Chinese parent company, ByteDance. Despite this, Oracle has remained discreet about its relationship with TikTok, not listing it among its key cloud customers and avoiding public discussion.

US record labels sue Suno and Uncharted Labs for copyright infringement

Major US record labels are suing AI music startups Suno and Uncharted Labs, accusing them of mass copyright infringement. The lawsuits, filed in federal courts in Massachusetts and New York, represent content creators’ efforts to challenge the use of copyrighted works in the training and operation of generative AI systems, arguing that it does not constitute ‘fair use.’

The plaintiffs, including Sony Music Entertainment, UMG, and Warner Records, seek a declaration of copyright infringement, an injunction to prevent further violations and monetary damages. Mitch Glazier, CEO of the Recording Industry Association of America, emphasised the industry’s willingness to collaborate with responsible AI developers but stressed the need for cooperation to succeed.

Suno’s CEO, Mikey Shulman, defended the technology, claiming it generates new outputs without memorising or replicating existing content and stating that prompts referencing specific artists are not allowed.

The lawsuit adds to the growing number of legal challenges from various content creators against generative AI systems, which argue that both the training and output of these systems violate copyright laws. The outcome of these cases could set significant legal precedents for AI and copyright.

US DoJ to file lawsuit against TikTok for alleged children’s privacy violations

TikTok will be sued again by the US Department of Justice (DoJ) in a consumer protection lawsuit against ByteDance’s TikTok later this year, focusing on alleged children’s privacy violations. The incentive for the legal move comes on behalf of the Federal Trade Commission (FTC), but the DoJ will not pursue allegations that TikTok misled US consumers about data security, specifically dropping claims that the company failed to inform users that China-based employees could access their personal and financial information.

The decision suggests that the primary focus will now be on how TikTok handles children’s privacy. The FTC had referred to the DoJ a complaint against TikTok and its parent, ByteDance, concerning potential violations of children’s privacy, stating that it investigated TikTok and found evidence suggesting they may be breaking the Children’s Online Privacy Protection Act. The federal act requires apps and websites aimed at kids to get parental consent before collecting personal information from children under 13.

Simultaneously, TikTok and ByteDance are challenging a US law that aims to ban the popular short video app in the United States starting from 19 January next year.

ByteDance challenges US TikTok ban in court

ByteDance and its subsidiary company TikTok are urging a US court to overturn a law that would ban the popular app in the USA by 19 January. The new legal act, signed by President Biden in April, demands ByteDance divest TikTok’s US assets or face a ban, which the company argues is impractical on technological, commercial, and legal grounds.

ByteDance contends that the law, driven by concerns over potential Chinese access to American data, violates free speech rights and unfairly targets TikTok while ‘ignores many applications with substantial operations in China that collect large amounts of US user data, as well as the many US companies that develop software and employ engineers in China.’ They argue that the legislation represents a substantial departure from the US tradition of supporting an open internet and sets a dangerous precedent.

The US Court of Appeals for the District of Columbia will hear oral arguments on this case on 16 September, a decision that could shape the future of TikTok in the US. ByteDance claims lengthy negotiations with the US government, which ended abruptly in August 2022, proposed various measures to protect US user data, including a ‘kill switch’ for the government to suspend TikTok if necessary. Additionally, the company made public a 100-plus page draft national security agreement to protect US TikTok user data and claims it has spent more than $2 billion on the effort. However, they believe the administration prefers to shut down the app rather than finalise a feasible agreement.

The Justice Department, defending the law, asserted that it addresses national security concerns appropriately. Moreover, the case follows a similar attempt by former President Trump to ban TikTok, which was blocked by the courts in 2020. This time, the new law would prohibit app stores and internet hosting services from supporting TikTok unless ByteDance divests it.

SoftBank to expand US power generation for AI

Founder Masayoshi Son announced that Japan’s SoftBank Group plans to expand its power generation business in the US to support global generative AI projects. SB Energy, backed by SoftBank, focuses on developing and operating renewable energy projects across the US. The initiative aligns with SoftBank’s strategy to explore new investment opportunities outside Japan.

Why does it matter?

At the annual shareholder meeting of SoftBank Corp, the group’s telecom arm, Son highlighted the importance of seeking innovative investments. He emphasised that SoftBank’s future growth would rely on identifying and nurturing emerging technologies and markets beyond Japan.

The current strategy reflects SoftBank’s commitment to advancing its global presence and influence in the tech and renewable energy sectors.

TikTok’s fate in US to be decided before election

A US appeals court has scheduled oral arguments for 16 September to address legal challenges against a new law requiring ByteDance, the China-based parent company of TikTok, to divest its US assets by 19 January or face a ban. The law, signed by President Joe Biden on 24 April, aims to eliminate Chinese ownership of TikTok due to national security concerns. TikTok, ByteDance, and a group of TikTok creators have filed lawsuits to block the law, arguing that it significantly impacts American life, with 170 million Americans using the app.

The hearing will coincide with the final weeks of the 2024 presidential election, and both parties are seeking a ruling by 6 December to allow for a potential Supreme Court review. The law also prohibits app stores like Apple and Google from offering TikTok and bars internet hosting services from supporting it unless ByteDance divests. Such a measure reflects US lawmakers’ fears that China could use TikTok to access American data or conduct espionage.

Google’s bid to end US antitrust case over digital advertising rejected

Google has lost its bid to dismiss a US government lawsuit accusing it of monopolistic practices in the digital advertising market in an ongoing antitrust scrutiny of major tech companies. The ruling marks a critical juncture in the broader effort to regulate and curtail the market power of tech giants. US District Judge Leonie Brinkema in Alexandria, Virginia, denied Google’s motion to dismiss the case during a recent hearing, as documented in court records.

The decision allows the lawsuit, originally filed by the Department of Justice (DOJ) in January 2023, to proceed. The DOJ alleges that Google has engaged in anti-competitive behavior to maintain its dominance in the digital advertising market, using its position to unfairly disadvantage competitors, violating Section 2 of the Sherman Antitrust Act. The lawsuit is part of a broader wave of antitrust actions targeting Big Tech, as regulators aim to address concerns over market monopolization and its effects on competition, consumers, and innovation. According to the DOJ, Google has employed various strategies to stifle competition, including acquiring competitors, favoring its own services, and implementing restrictive policies that disadvantage rival ad tech firms.

Last week, Google achieved a notable victory when Judge Brinkema allowed the trial to proceed without a jury, following a settlement of claims that its conduct harmed the US government. Judge Brinkema is scheduled to preside over the trial on September 9. In response to the ruling, a Google spokesperson expressed disappointment, stating that the company strongly disagrees with the DOJ’s claims and plans to vigorously defend itself in court. Google maintains that its digital advertising products benefit publishers and advertisers by providing efficient, effective tools that foster competition.

Why does it matter?

The outcome of this case could have implications for the tech industry, particularly for digital advertising. If the court ultimately rules against Google, it could lead to significant changes in how digital advertising markets operate, potentially requiring Google to divest parts of its advertising business or change its business practices. The case against Google is pivotal to the ongoing debate over the power and influence of tech giants. It reflects increasing regulatory scrutiny and a shift towards more aggressive antitrust enforcement.

The ruling not only impacts Google but also sets a precedent for future actions against other major players in the tech industry. As the case moves forward, it will be closely watched by industry stakeholders, policymakers, and consumers alike, as it holds the potential to reshape the digital advertising ecosystem and redefine the boundaries of acceptable business practices for tech companies.