Policy – Page 6

Booking.com says typos giving strangers access to private trip info is not a bug

Booking.com, Online Privacy, personally identifying information, Policy, privacy / Kris Guyer / December 6, 2024

For Booking.com, it’s essential that users can book travel for other users by adding their email addresses to a booking because that’s how people frequently book trips together. And if it happens that the email address added to a booking is also linked to an existing Booking.com user, the trip is automatically added to that person’s account. After that, there’s no way for Booking.com to remove the trip from the stranger’s account, even if there’s a typo in the email or if auto-complete adds the wrong email domain and the user booking the trip doesn’t notice.

According to Booking.com, there is nothing to fix because this is not a “system glitch,” and there was no “security breach.” What Alfie encountered is simply the way the platform works, which, like any app where users input information, has the potential for human error.

In the end, Booking.com declined to remove the trip from Alfie’s account, saying that would have violated the privacy of the user booking the trip. The only resolution was for Alfie to remove the trip from his account and pretend it never happened.

Alfie remains concerned, telling Ars, “I can’t help thinking this can’t be the only occurrence of this issue.” But Jacob Hoffman-Andrews, a senior staff technologist for the digital rights group the Electronic Frontier Foundation, told Ars that after talking to other developers, his “gut reaction” is that Booking.com didn’t have a ton of options to prevent typos during bookings.

“There’s only so much they can do to protect people from their own typos,” Hoffman-Andrews said.

One step Booking.com could take to protect privacy

Perhaps the bigger concern exposed by Alfie’s experience beyond typos is Booking.com’s practice of automatically adding bookings to accounts linked to emails that users they don’t know input. Once the trip is added to someone’s account, that person can seemingly access sensitive information about the users booking the trip that Booking.com otherwise would not share.

While engaging with the Booking.com support team member, Alfie told Ars that he “probed for as much information as possible” to find out who was behind the strange booking on his account. And seemingly because the booking was added to Alfie’s account, the support team member had no problem sharing sensitive information that went beyond the full name and last four digits of the credit card used for the booking, which were listed in the trip information by default.

Booking.com says typos giving strangers access to private trip info is not a bug Read More »

Judge rejects Boeing plea deal that was opposed by families of crash victims

737 max, Boeing, boeing plea deal, Policy / Tim Belzer / December 5, 2024

The compliance monitor is supposed to ensure that “Boeing implements a program designed to prevent and detect violations of US fraud laws,” O’Connor wrote. Failing to retain a monitor would violate Boeing’s probation, but O’Connor said that Boeing wouldn’t actually have to comply with the monitor’s recommendations.

“[T]he plea agreement prohibits imposing as a condition of probation a requirement for Boeing to comply with the monitor’s anti-fraud recommendations. Additionally, the independent monitor is selected by and reports to the Government, not the Court,” O’Connor wrote.

O’Connor also rejected the deal on the grounds that “Boeing will have the opportunity to prevent the hiring of one of the six monitor candidates chosen by the Government,” and “the Government will select the independent monitor ‘in keeping with the Department’s commitment to diversity and inclusion.'”

Judge opposes diversity provision

O’Connor said that Boeing’s court briefs and its diversity policies suggest that “Boeing will exercise its strike of one of the Government’s six chosen monitor candidates in a discriminatory manner and with racial considerations.” O’Connor said he is also skeptical that the government will consider all possible monitors and choose one based solely on merit and talent.

“It seems fundamentally inconsistent for the Government to say ‘in keeping with the Department’s commitment to diversity and inclusion’ means that the Government will not consider race,” O’Connor wrote. “Otherwise, why would the Government represent to the Court in its briefing that the term ‘diversity’ in the plea agreement is ‘generally consistent’ with the 2021 Executive Order’s definition, which explicitly includes race? Indeed, the Government must adhere to this Executive Order, and, consequently, that definition of ‘diversity’ controls what is required by the plea agreement.”

“In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency,” O’Connor also wrote. “The parties’ DEI [diversity, equity, and inclusion] efforts only serve to undermine this confidence in the Government and Boeing’s ethics and anti-fraud efforts.”

Judge rejects Boeing plea deal that was opposed by families of crash victims Read More »

AT&T says it won’t build fiber home Internet in half of its wireline footprint

AT&T, at&t fiber, Policy / Rejus Almole / December 5, 2024

AT&T is ditching copper and building fiber, but many will get only 5G or satellite.

Credit: Getty Images | Joe Raedle

AT&T this week detailed plans to eliminate copper phone and DSL lines from its network while leaving many customers in rural areas with only wireless or satellite as an alternative.

In a presentation for analysts and investors on Tuesday, AT&T said it has a “wireless first” plan for 50 percent of its 500,000-square-mile wireline territory and a “fiber first” plan for the rest. The more sparsely populated half accounts for 10 percent of the potential customer base, and AT&T does not plan to build fiber home Internet for those users.

AT&T said it expects to be able to ditch copper because of state-level deregulation and the impending shift in power at the Federal Communications Commission, where Trump pick Brendan Carr is set to become the chairman. California is the only state out of 21 in AT&T’s wireline territory that hasn’t yet granted AT&T’s request for deregulation of old networks.

An AT&T press release said the company “is actively working to exit its legacy copper network operations across the large majority of its wireline footprint by the end of 2029.” AT&T’s wireline footprint has 88 million locations, said Susan Johnson, an AT&T executive VP in charge of supply chain and wireline transformation.

About 21 million of those have access only to voice service. The other 67 million are eligible for Internet access, and 29 million of those have access to fiber already. AT&T plans to boost its number of fiber locations to 45 million by the end of 2029 but says it isn’t profitable enough to build fiber to the other parts of its old landline phone and DSL networks.

AT&T: Fiber not profitable enough in half of footprint

AT&T reported that its residential business has 13.97 million Internet connections, including 9.02 million fiber connections. Many copper users who don’t get fiber will be able to use 5G-based home broadband with AT&T Internet Air and wireless phone service with AT&T Phone-Advanced. Johnson said that Internet Air offers “up to 25 times faster speeds than legacy ADSL.” But customers who don’t get access to the terrestrial wireless service may have to use satellite.

“Wireless first is the name for our wire center areas where we have not built and do not plan to build residential fiber. There’s not an economic path to do so,” Johnson said. “These wire centers may still have fiber supporting businesses or cell sites but no consumer fiber. This is about 50 percent of our land area but it’s only 10 percent of the population.” These areas have “four remaining copper customers per square mile,” she said.

Wireless home phone service will be available to “the vast majority of our existing copper-based customers,” but not all, she said. In some areas, “we will need to work with our customers to move them to other technologies, including satellite. But we’ve made a pledge that we’re going to keep our customers connected through the process and make sure that no customer loses access to voice or 911 services.”

Johnson said AT&T’s “plan is to have no customers using copper services in these wire center areas by the end of 2027.” A Republican-majority FCC will help, she said.

“We are going to work with the FCC to speed up and scale this process, and with the new administration we are optimistic that we can make even more progress in simplifying our networks and migrating our customers over the next several years,” Johnson said.

She said that AT&T Phone-Advanced “was specifically designed to meet the FCC’s criteria as an adequate replacement product for our traditional landline phone service, and we have successfully completed the testing with the FCC and we are continuing to move through their preview process.”

AT&T has an application pending with the FCC in a small number of wire centers, “which, if approved, would allow us to replace traditional landline phone service, think POTS [Plain Old Telephone Service], our most regulated product, with AT&T Phone Advanced,” Johnson said.

California demanded more reliable service

AT&T already achieved what Johnson called “an absolutely critical precedent” earlier this year when the FCC allowed it to stop accepting new copper-based service orders in 60 wire centers across 13 states, she said. A wire center consists of a central office and the surrounding infrastructure, including the copper lines that stretch from the central office to homes and businesses. AT&T has 4,600 wire centers in the US, Johnson said.

Notably, AT&T’s plan to ditch copper currently excludes California, where the Public Utilities Commission rejected AT&T’s request to end its landline phone obligations in a June 2024 ruling. “California is not included in the plans I just laid out for you. We are continuing to work with policy makers to define our path in that state,” Johnson said.

AT&T is still classified as a Carrier of Last Resort (COLR) in California, and the state telecom agency rejected AT&T’s argument that VoIP and mobile services could fill the gap that would exist if AT&T escaped that obligation. Residents “highlighted the unreliability of voice alternatives” at public hearings, the agency said.

An administrative law judge at the California agency said AT&T falsely claimed that commission rules require it “to retain outdated copper-based landline facilities that are expensive to maintain.” AT&T is allowed to upgrade those lines from copper to fiber, the agency said.

AT&T achieved its goal of deregulation in the other 20 states where it has wireline operations, Johnson said. “While California is the last state to modernize, we’ve started a process there and we will continue to work towards this objective,” she said.

The deregulation in other states already helped AT&T stop offering old services in “about 250,000 square miles where we have met the regulatory requirements to no longer offer regulated services because our customers have moved on to other services,” Johnson said.

AT&T planned to hit that milestone by 2025 but achieved it this year, she said. But as Johnson stressed, AT&T wants to get rid of copper in the remaining 500,000 square miles. “This is really good progress… however, without the full discontinuance of services across an entire wire center geography, we’re unable to stop the maintenance, repair, and attack the more fixed infrastructure costs,” she said.

Copper network degrading

Johnson said that AT&T is “seeing declining reliability with storms and increased copper theft. Copper simply does not do well with water and flooding, and repairs are very labor-intensive.” State regulators have said the declining reliability is largely AT&T’s fault. Many copper lines deteriorated because AT&T failed to do maintenance that would prevent lengthy outages and other troubles, a 2019 investigation by California state regulators found.

As noted earlier, AT&T said it plans to have no customers using copper in half of its territory by the end of 2027. In the other half, where AT&T described a “fiber first” strategy, there will nonetheless be copper customers who won’t get a fiber upgrade and will have to stop using copper by the end of 2029, Johnson said.

AT&T plans to build lots of fiber in the more populated half, but “not every customer location will be reached with fiber in these areas and we will still serve some of the customers in these areas with wireless alternatives,” Johnson said. AT&T’s “plan is to have no customer using copper services in these wire center areas by the end of 2029.”

The biggest beneficiaries of AT&T’s copper retirement may be shareholders. Johnson said the old network is an energy hog and has $6 billion in annual expenses. “Overall, our legacy business is profitable today but the revenue declines are accelerating,” she said.

AT&T is selling copper after it is decommissioned and leasing out some unused central offices. “By targeting the complete customer transition in a wire center, with the least profitable wire centers first, we are able to remove these geographic costs and really optimize margins as we move towards exiting copper services,” Johnson said.

Besides the 45 million existing and planned fiber locations, AT&T said its total fiber footprint by 2029 will include another 5 million or so locations through Gigapower, a joint venture with Blackrock, and agreements with commercial open-access providers.

Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry.

AT&T says it won’t build fiber home Internet in half of its wireline footprint Read More »

US recommends encrypted messaging as Chinese hackers linger in telecom networks

Chinese hackers, Policy, salt typhoon, Security / Tim Belzer / December 4, 2024

An unnamed FBI official was quoted in the same report as saying that phone users “would benefit from considering using a cellphone that automatically receives timely operating system updates, responsibly managed encryption, and phishing-resistant” multifactor authentication for email accounts, social media, and collaboration tools.

The FBI official reportedly said the hackers obtained metadata showing the numbers that phones called and when, the live phone calls of some specific targets, and information from systems that telcos use for court-ordered surveillance.

Despite recognizing the security benefits of encryption, US officials have for many years sought backdoors that would give the government access to encrypted communications. Supporters of end-to-end encryption have pointed out that backdoors can also be used by criminal hackers and other nation-states.

“For years, the security community has pushed back against these backdoors, pointing out that the technical capability cannot differentiate between good guys and bad guys,” cryptographer Bruce Schneier wrote after the Chinese hacking of telecom networks was reported in October.

Noting the apparent hacking of systems for court-ordered wiretap requests, Schneier called it “one more example of a backdoor access mechanism being targeted by the ‘wrong’ eavesdroppers.”

1994 surveillance law in focus

CISA issued a statement on the Chinese hacking campaign in mid-November. It said:

The US government’s continued investigation into the People’s Republic of China (PRC) targeting of commercial telecommunications infrastructure has revealed a broad and significant cyber espionage campaign.

Specifically, we have identified that PRC-affiliated actors have compromised networks at multiple telecommunications companies to enable the theft of customer call records data, the compromise of private communications of a limited number of individuals who are primarily involved in government or political activity, and the copying of certain information that was subject to US law enforcement requests pursuant to court orders.

The hacks raise concerns about surveillance capabilities required by a 1994 law, the Communications Assistance for Law Enforcement Act (CALEA), which requires “telecommunications carriers and manufacturers of telecommunications equipment design their equipment, facilities, and services to ensure that they have the necessary surveillance capabilities to comply with legal requests for information.”

US recommends encrypted messaging as Chinese hackers linger in telecom networks Read More »

Amazon secretly slowed deliveries, deceived anyone who complained, lawsuit says

Amazon, Amazon Prime, Policy, unfair business practices / Paul Patrick / December 4, 2024

In a statement to Ars, Amazon spokesperson Kelly Nantel said that claims that Amazon’s “business practices are somehow discriminatory or deceptive” are “categorically false.”

Nantel said that Amazon started using third-party services to deliver to these areas to “put the safety of delivery drivers first.”

“In the ZIP codes in question, there have been specific and targeted acts against drivers delivering Amazon packages,” Nantel said. “We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers.”

Nantel also pushed back on claims that Amazon concealed this choice, claiming that the company is “always transparent with customers during the shopping journey and checkout process about when, exactly, they can expect their orders to arrive.”

But that doesn’t really gel with Schwalb’s finding that even customers using Amazon’s support chat were allegedly misled. During one chat, a frustrated user pointing out discrepancies between DC ZIP codes asked if Amazon “is a waste of money in my zip code?” Instead of confirming that the ZIP code was excluded from in-house delivery services, the support team member seemingly unhelpfully suggested the user delete and re-add their address to their account.

“Amazon has doubled down on its deception by refusing to disclose the fact of the delivery exclusion, and instead has deceptively implied that slower speeds are simply due to other circumstances, rather than an affirmative decision by Amazon,” Schwalb’s complaint said.

Schwalb takes no issue with Amazon diverting delivery drivers from perceived high-crime areas but insists that Amazon owes its subscribers in those regions an explanation for delivery delays and perhaps even cheaper subscription prices. He has asked for an injunction on Amazon’s allegedly deceptive advertising urging users to pay for fast shipments they rarely, if ever, receive. He also wants Amazon to refund subscribers seemingly cheated out of full subscription benefits and has asked a jury to award civil damages to deter future unfair business practices. Amazon could owe millions in a loss, with each delivery to almost 50,000 users since mid-2022 considered a potential violation.

Nantel said that Amazon has offered to “work together” with Schwalb’s office “to reduce crime and improve safety in these areas” but did not suggest Amazon would be changing how it advertises Prime delivery in the US. Instead, the e-commerce giant plans to fight the claims and prove that “providing fast and accurate delivery times and prioritizing the safety of customers and delivery partners are not mutually exclusive,” Nantel said.

Amazon secretly slowed deliveries, deceived anyone who complained, lawsuit says Read More »

US plan to protect consumers from data brokers faces dim future under Trump

consumer financial protection bureau, data brokers, Policy / Paul Patrick / December 3, 2024

Plan unlikely to survive Trump administration

CFPB Director Rohit Chopra touted the proposed rule, saying it targets brokers who sell “our most sensitive personal data without our knowledge or consent” and “profit by enabling scamming, stalking, and spying.” But whether the proposal ever becomes a rule is doubtful because of the impending leadership change in the White House.

Chopra, a Democrat, was nominated by President Biden in 2021 and confirmed by the Senate in a 50-48 party-line vote. President-Elect Donald Trump can nominate a replacement.

The CFPB’s Notice of Proposed Rulemaking is an initial step toward imposing rules, and any final action would have to come after Trump takes over. Comments on the proposal are due by March 3, 2025.

“Unfortunately, it will be up to Trump’s CFPB to finalize this proposed rule, and he and his billionaire donors are intent on shutting this agency down to take away a key advocate for American consumers,” US Sen. Ron Wyden, (D-Ore.) said in a statement issued today.

Wyden said the CFPB proposal “act[s] on my 2021 request to close a key loophole that enables sleazy data brokers to sell Americans’ personal data to criminals, stalkers, and foreign spies. Letting anyone with a credit card buy this data doesn’t just harm Americans’ privacy, it seriously threatens national security when sensitive information about law enforcement, judges, and members of the armed forces is on the open market.”

Trump DOGE appointee: “Delete the CFPB”

The CFPB itself could be defanged by the Trump administration and the incoming Republican-controlled Congress. Consumer advocacy groups have said they expect the agency to be targeted.

“President-elect Donald Trump and Republicans in Congress are weighing vast changes to the Consumer Financial Protection Bureau, seeking to limit the powers and funding of a federal watchdog agency formed in the wake of the 2008 banking crisis,” The Washington Post reported on November 23. “The early discussions align the GOP with banks, credit card companies, mortgage lenders and other large financial institutions, which have chafed at the CFPB under Democratic leadership and sought to invalidate many of its recent regulations.”

US plan to protect consumers from data brokers faces dim future under Trump Read More »

China hits US with ban on critical minerals used in tech manufacturing

biden administration, china, china tariffs, Donald Trump, export ban, Policy, rare earth metals, tech manufacturing, us-china trade war / Paul Patrick / December 3, 2024

Although China’s response to the latest curbs was swift and seemingly strong, experts told Ars that China’s response to Biden’s last round of tariffs was relatively muted. It’s possible that this week’s ban on exports into the US could also be a response to President-elect Donald Trump’s threat to increase tariffs on all Chinese goods once he takes office.

Analysts warned Monday that new export curbs could end up hurting businesses in the US and allied nations while potentially doing very little to block China from accessing US tech. On Tuesday, four Chinese industry associations seemingly added fuel to the potential fire threatening US businesses by warning Chinese firms that purchasing US chips is “no longer safe,” Asia Financial reported.

Apparently, these groups would not say how or why the chips were unsafe, but the warning could hurt US chipmaking giants like Nvidia, AMD, and Intel, the financial industry publication closely monitoring China’s economy forecast said.

This was a “rare, coordinated move” by industry associations advising top firms in telecommunications, autos, semiconductors, and “the digital economy,” Asia Financial reported.

As US-China tensions escalate ahead of Trump’s next term, the tech industry has warned that any unpredictable rises in costs may end up spiking prices on popular consumer tech. With Trump angling to add a 35 percent tariff on all Chinese goods, that means average Americans could also end up harmed by the trade war, potentially soon paying significantly more for laptops, smartphones, and game consoles.

China hits US with ban on critical minerals used in tech manufacturing Read More »

Judge again rejects the Elon Musk Tesla pay plan now valued at $101 billion

elon musk pay plan, Policy, Tesla / Paul Patrick / December 2, 2024

The new stockholder vote could shift the burden of proof, but only if the vote is “fully informed and uncoerced,” McCormick wrote. Shareholder Richard Tornetta, the plaintiff who launched the lawsuit that got Musk’s pay rescinded, “has demonstrated that the vote was not fully informed,” today’s ruling said.

The January ruling in which McCormick voided the pay package said the deal was unfair to shareholders and that most of the board members were beholden to Musk or had compromising conflicts. In Tesla’s subsequent request asking shareholders to re-approve the pay plan, the company said that a yes vote could “extinguish claims for breach of fiduciary duty by authorizing an act that otherwise would constitute a breach” and correct “disclosure deficiencies” and other problems identified in the 2018 stock award.

“Tesla debuted the argument in the Proxy Statement, which described stockholder ratification as a powerful elixir that could cure fiduciary wrongdoing—not for those harmed by the wrongdoing, but for the wrongdoers. Tesla told stockholders that the Post-Trial Opinion got Delaware law wrong and that their vote would ‘fix’ it,” McCormick wrote.

But the claims in Tesla’s proxy statement are “materially false or misleading,” McCormick wrote today. “As discussed above, under Delaware law, ratification cannot be deployed post-trial to extinguish an adjudicated breach of the duty of loyalty,” and it “cannot cleanse a conflicted-controller transaction” without a full suite of required legal protections.

304 million Tesla shares

Musk’s pay plan would provide options to purchase nearly 303.96 million Tesla shares for $23.33 each, McCormick wrote. Tesla’s stock price soared in recent months and was at $357.09 today.

The plaintiff argued that the value gained by shareholders when the pay package was rescinded “equals the intrinsic value of the freed-up shares, which is the trading price, minus the exercise price, multiplied by the number of options,” McCormick wrote. The plaintiff came up with a value of $51 billion based on the $191.59 per-share closing price on the date of the January 2024 ruling. As previously noted, the latest Tesla price suggests the pay package could have been worth $101 billion to Musk.

Judge again rejects the Elon Musk Tesla pay plan now valued at $101 billion Read More »

Elon Musk asks court to block OpenAI conversion from nonprofit to for-profit

AI, elon musk, openai, Policy / Mike M. / December 2, 2024

OpenAI provided a statement to Ars today saying that “Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit.” OpenAI referred to a longer statement that it made in March after Musk filed an earlier version of his lawsuit.

The March statement disputes Musk’s version of events. “In late 2017, we and Elon decided the next step for the mission was to create a for-profit entity,” OpenAI said. “Elon wanted majority equity, initial board control, and to be CEO. In the middle of these discussions, he withheld funding. Reid Hoffman bridged the gap to cover salaries and operations.”

OpenAI cited Musk’s desire for Tesla merger

OpenAI’s statement in March continued:

We couldn’t agree to terms on a for-profit with Elon because we felt it was against the mission for any individual to have absolute control over OpenAI. He then suggested instead merging OpenAI into Tesla. In early February 2018, Elon forwarded us an email suggesting that OpenAI should “attach to Tesla as its cash cow,” commenting that it was “exactly right… Tesla is the only path that could even hope to hold a candle to Google. Even then, the probability of being a counterweight to Google is small. It just isn’t zero.”

Elon soon chose to leave OpenAI, saying that our probability of success was 0, and that he planned to build an AGI competitor within Tesla. When he left in late February 2018, he told our team he was supportive of us finding our own path to raising billions of dollars. In December 2018, Elon sent us an email saying “Even raising several hundred million won’t be enough. This needs billions per year immediately or forget it.”

Now, Musk says the public interest would be served by his request for a preliminary injunction. Preserving competitive markets is particularly important in AI because of the technology’s “profound implications for society,” he wrote.

Musk’s motion said the public “has a strong interest in ensuring that charitable assets are not diverted for private gain. This interest is particularly acute here given the substantial tax benefits OpenAI, Inc. received as a non-profit, the organization’s repeated public commitments to developing AI technology for the benefit of humanity, and the serious safety concerns raised by former OpenAI employees regarding the organization’s rush to market potentially dangerous products in pursuit of profit.”

Elon Musk asks court to block OpenAI conversion from nonprofit to for-profit Read More »

US blocks China from foreign exports with even a single US-made chip

AI chips, applied materials, Chips Act, kla, lam research, Policy, samsung, semiconductor, us-china trade war / Rejus Almole / December 2, 2024

But while Commerce Secretary Gina Raimondo said that these new curbs would help prevent “China from advancing its domestic semiconductor manufacturing system” to modernize its military, analysts and “several US officials” told The Post that they pack “far less punch” than the prior two rounds of export controls.

Analysts told The Wall Street Journal that the US took too long to launch the controls, which were composed around June. As industry insiders weighed in on the restrictions, word got out about the US plans to expand controls. In the months since, analysts said, China had plenty of time to stockpile the now-restricted tech. Applied Materials, for example, saw an eye-popping 86 percent spike in net revenue from products shipped to China “in the nine months ending July 28,” the WSJ reported.

Because of this and other alleged flaws, it’s unclear how effectively Biden’s final attempts to block China from accessing the latest US technologies will work.

Beyond concerns that China had time to stockpile tech it anticipated would be restricted, Gregory Allen, the director at the Wadhwani AI Center at the Center for Strategic and International Studies, told the WSJ that these latest controls “left loopholes that Huawei and Chinese companies could exploit.”

Loopholes include failing to blacklist companies that Huawei regularly uses—with allies and American companies allegedly lobbying to exempt factories or fabs they like, such as ChangXin Memory Technologies Inc., “one of China’s largest memory chipmakers,” The Post noted. They also include failing to restrict older versions of the HBM chips and various chipmaking equipment that China may still be able to easily access, Allen said.

“These controls are weaker than what the United States should have done,” Allen told The Post. “You can make a halfway logical argument that says, ‘Sell everything to China.’ Then you can make a reasonable argument, ‘Sell very little to China.’ But the worst thing you can do is to dramatically signal your intention to cut off China’s access to tech but then have so many loopholes and such bungled implementation that you incur almost all of the costs of the policy with only a fraction of the benefits.”

US blocks China from foreign exports with even a single US-made chip Read More »

FCC approves Starlink plan for cellular phone service, with some limits

Policy, starlink / Kris Guyer / November 27, 2024

Eliminating cellular dead zones

Starlink says it will offer texting service this year as well as voice and data services in 2025. Starlink does not yet have FCC approval to exceed certain emissions limits, which the company has said will be detrimental for real-time voice and video communications.

For the operations approved yesterday, Starlink is required to coordinate with other spectrum users and cease transmissions when any harmful interference is detected. “We hope to activate employee beta service in the US soon,” wrote Ben Longmier, SpaceX’s senior director of satellite engineering.

Longmier made a pitch to cellular carriers. “Any telco that signs up with Starlink Direct to Cell can completely eliminate cellular dead zones for their entire country for text and data services. This includes coastal waterways and the ocean areas in between land for island nations,” he wrote.

Starlink launched its first satellites with cellular capabilities in January 2024. “Of the more than 2,600 Gen2 Starlink satellites in low Earth orbit, around 320 are equipped with a direct-to-smartphone payload, enough to enable the texting services SpaceX has said it could launch this year,” SpaceNews wrote yesterday.

Yesterday’s FCC order also lets Starlink operate up to 7,500 second-generation satellites in altitudes between 340 km and 360 km, in addition to the previously approved altitudes between 525 km and 535 km. SpaceX is seeking approval for another 22,488 satellites but the FCC continued to defer action on that request. The FCC order said:

Authorization to permit SpaceX to operate up to 7,500 Gen2 satellites in lower altitude shells will enable SpaceX to begin providing lower-latency satellite service to support growing demand in rural and remote areas that lack terrestrial wireless service options. This partial grant also strikes the right balance between allowing SpaceX’s operations at lower altitudes to provide low-latency satellite service and permitting the Commission to continue to monitor SpaceX’s constellation and evaluate issues previously raised on the record.

Coordination with NASA

SpaceX is required to coordinate “with NASA to ensure protection of the International Space Station (ISS), ISS visiting vehicles, and launch windows for NASA science missions,” the FCC said. “SpaceX may only deploy and operate at altitudes below 400 km the total number of satellites for which it has completed physical coordination with NASA under the parties’ Space Act Agreement.”

FCC approves Starlink plan for cellular phone service, with some limits Read More »

Google’s plan to keep AI out of search trial remedies isn’t going very well

AI, ai search, Antitrust law, copilot, generative ai, Google, google search, google search monopoly, microsoft, Policy, search engines / Kris Guyer / November 27, 2024

DOJ: AI is not its own market

Judge: AI will likely play “larger role” in Google search remedies as market shifts.

Google got some disappointing news at a status conference Tuesday, where US District Judge Amit Mehta suggested that Google’s AI products may be restricted as an appropriate remedy following the government’s win in the search monopoly trial.

According to Law360, Mehta said that “the recent emergence of AI products that are intended to mimic the functionality of search engines” is rapidly shifting the search market. Because the judge is now weighing preventive measures to combat Google’s anticompetitive behavior, the judge wants to hear much more about how each side views AI’s role in Google’s search empire during the remedies stage of litigation than he did during the search trial.

“AI and the integration of AI is only going to play a much larger role, it seems to me, in the remedy phase than it did in the liability phase,” Mehta said. “Is that because of the remedies being requested? Perhaps. But is it also potentially because the market that we have all been discussing has shifted?”

To fight the DOJ’s proposed remedies, Google is seemingly dragging its major AI rivals into the trial. Trying to prove that remedies would harm Google’s ability to compete, the tech company is currently trying to pry into Microsoft’s AI deals, including its $13 billion investment in OpenAI, Law360 reported. At least preliminarily, Mehta has agreed that information Google is seeking from rivals has “core relevance” to the remedies litigation, Law360 reported.

The DOJ has asked for a wide range of remedies to stop Google from potentially using AI to entrench its market dominance in search and search text advertising. They include a ban on exclusive agreements with publishers to train on content, which the DOJ fears might allow Google to block AI rivals from licensing data, potentially posing a barrier to entry in both markets. Under the proposed remedies, Google would also face restrictions on investments in or acquisitions of AI products, as well as mergers with AI companies.

Additionally, the DOJ wants Mehta to stop Google from any potential self-preferencing, such as making an AI product mandatory on Android devices Google controls or preventing a rival from distribution on Android devices.

The government seems very concerned that Google may use its ownership of Android to play games in the emerging AI sector. They’ve further recommended an order preventing Google from discouraging partners from working with rivals, degrading the quality of rivals’ AI products on Android devices, or otherwise “coercing” manufacturers or other Android partners into giving Google’s AI products “better treatment.”

Importantly, if the court orders AI remedies linked to Google’s control of Android, Google could risk a forced sale of Android if Mehta grants the DOJ’s request for “contingent structural relief” requiring divestiture of Android if behavioral remedies don’t destroy the current monopolies.

Finally, the government wants Google to be required to allow publishers to opt out of AI training without impacting their search rankings. (Currently, opting out of AI scraping automatically opts sites out of Google search indexing.)

All of this, the DOJ alleged, is necessary to clear the way for a thriving search market as AI stands to shake up the competitive landscape.

“The promise of new technologies, including advances in artificial intelligence (AI), may present an opportunity for fresh competition,” the DOJ said in a court filing. “But only a comprehensive set of remedies can thaw the ecosystem and finally reverse years of anticompetitive effects.”

At the status conference Tuesday, DOJ attorney David Dahlquist reiterated to Mehta that these remedies are needed so that Google’s illegal conduct in search doesn’t extend to this “new frontier” of search, Law360 reported. Dahlquist also clarified that the DOJ views these kinds of AI products “as new access points for search, rather than a whole new market.”

“We’re very concerned about Google’s conduct being a barrier to entry,” Dahlquist said.

Google could not immediately be reached for comment. But the search giant has maintained that AI is beyond the scope of the search trial.

During the status conference, Google attorney John E. Schmidtlein disputed that AI remedies are relevant. While he agreed that “AI is key to the future of search,” he warned that “extraordinary” proposed remedies would “hobble” Google’s AI innovation, Law360 reported.

Microsoft shields confidential AI deals

Microsoft is predictably protective of its AI deals, arguing in a court filing that its “highly confidential agreements with OpenAI, Perplexity AI, Inflection, and G42 are not relevant to the issues being litigated” in the Google trial.

According to Microsoft, Google is arguing that it needs this information to “shed light” on things like “the extent to which the OpenAI partnership has driven new traffic to Bing and otherwise affected Microsoft’s competitive standing” or what’s required by “terms upon which Bing powers functionality incorporated into Perplexity’s search service.”

These insights, Google seemingly hopes, will convince Mehta that Google’s AI deals and investments are the norm in the AI search sector. But Microsoft is currently blocking access, arguing that “Google has done nothing to explain why” it “needs access to the terms of Microsoft’s highly confidential agreements with other third parties” when Microsoft has already offered to share documents “regarding the distribution and competitive position” of its AI products.

Microsoft also opposes Google’s attempts to review how search click-and-query data is used to train OpenAI’s models. Those requests would be better directed at OpenAI, Microsoft said.

If Microsoft gets its way, Google’s discovery requests will be limited to just Microsoft’s content licensing agreements for Copilot. Microsoft alleged those are the only deals “related to the general search or the general search text advertising markets” at issue in the trial.

On Tuesday, Microsoft attorney Julia Chapman told Mehta that Microsoft had “agreed to provide documents about the data used to train its own AI model and also raised concerns about the competitive sensitivity of Microsoft’s agreements with AI companies,” Law360 reported.

It remains unclear at this time if OpenAI will be forced to give Google the click-and-query data Google seeks. At the status hearing, Mehta ordered OpenAI to share “financial statements, information about the training data for ChatGPT, and assessments of the company’s competitive position,” Law360 reported.

But the DOJ may also be interested in seeing that data. In their proposed final judgment, the government forecasted that “query-based AI solutions” will “provide the most likely long-term path for a new generation of search competitors.”

Because of that prediction, any remedy “must prevent Google from frustrating or circumventing” court-ordered changes “by manipulating the development and deployment of new technologies like query-based AI solutions.” Emerging rivals “will depend on the absence of anticompetitive constraints to evolve into full-fledged competitors and competitive threats,” the DOJ alleged.

Mehta seemingly wants to see the evidence supporting the DOJ’s predictions, which could end up exposing carefully guarded secrets of both Google’s and its biggest rivals’ AI deals.

On Tuesday, the judge noted that integration of AI into search engines had already evolved what search results pages look like. And from his “very layperson’s perspective,” it seems like AI’s integration into search engines will continue moving “very quickly,” as both parties seem to agree.

Whether he buys into the DOJ’s theory that Google could use its existing advantage as the world’s greatest gatherer of search query data to block rivals from keeping pace is still up in the air, but the judge seems moved by the DOJ’s claim that “AI has the ability to affect market dynamics in these industries today as well as tomorrow.”

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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