×
Apple

Apple Defies EU Over Antitrust Charges in Spotify Probe (bloomberg.com) 24

Apple is set for a showdown with European Union antitrust regulators, insisting it doesn't need to make any more changes to its App Store after it was hit by formal charges over its treatment of music streaming rivals such as Spotify. From a report: The iPhone maker will argue at a hearing in Brussels on Friday that the EU wrongly accused it of illegal curbs on the likes of Spotify that prevent developers from steering users away from the App Store. Apple will say it's already addressed any possible competition concerns over the past two years with changes that create a fair balance between the interests of Apple and app developers, according to a person familiar with the US firm's thinking, who spoke on condition of anonymity.

Apple was slapped with a revised charged sheet by the EU in February, which showed the commission had narrowed its probe, but continued to focus "on the contractual restrictions that Apple imposed on app developers which prevent them from informing iPhone and iPad users of alternative music subscription options." Spotify says that Apple's anti-steering rules prohibit it and other developers "from telling consumers about any deals or promotions through their own apps."

EU

The EU Wants To Crack Down on Rogue Efforts To Alter the Atmosphere (theverge.com) 85

An anonymous reader shares a report: It's surprisingly easy for someone to mess with the makeup of Earth's atmosphere, regardless of the consequences that could have for our planet. Now, as part of its plans to address security risks posed by climate change, the European Union is calling for talks on a potential international framework on how to treat deliberately atmosphere-altering technologies, AKA geoengineering.

The issue is that scientists aren't quite sure how much good that would do or whether geoengineering might inadvertently trigger new problems. That's why the European Commission says the world needs to start thinking about rules on geoengineering. Without them, climate vigilantes could decide to go ahead with their experiments without any oversight or accountability. In fact, that's already started to happen, albeit on a small scale.

EU

US Vendor Accused of Violating GDPR By Reputation-Scoring EU Citizens (theregister.com) 28

TeleSign, a U.S.-based fraud prevention company, has allegedly collected data from millions of EU citizens and processed it in the United States using automated tools without their knowledge. The complaint "alleges that TeleSign is in violation of the GDPR's provisions that ban use of automated profiling tools, as well as rules that require affirmative consent be given to process EU citizen's data," reports The Register. From the report: The complaint was filed by Austrian privacy advocacy group noyb, helmed by lawyer Max Schrems, and it doesn't pull any punches in its claims that TeleSign, through its former Belgian parent company BICS, secretly collected data on cellphone users around the world. That data, noyb alleges, was fed into an automated system that generates "reputation scores" that TeleSign sells to its customers, which includes TikTok, Salesforce, Microsoft and AWS, among others, for verifying the identity of a person behind a phone number and preventing fraud.

BICS, which acquired TeleSign in 2017, describes itself as "a global provider of international wholesale connectivity and interoperability services," in essence operating as an interchange for various national cellular networks. Per noyb, BICS operates in more than 200 countries around the world and "gets detailed information (e.g. the regularity of completed calls, call duration, long-term inactivity, range activity, or successful incoming traffic) [on] about half of the worldwide mobile phone users." That data is regularly shared with TeleSign, noyb alleges, without any notification to the customers whose data is being collected and used. "Your phone provider likely forwards data to BICS who then forwards it to TeleSign. TeleSign generates a 'trust score' about you and sells phone data to third parties like Microsoft, Salesforce or TikTok -- without anyone being informed or giving consent," Schrems said. [...]

When BICS acquired TeleSign in 2017, it began to fall under the partial control of BICS' parent company, Belgian telecom giant Proximus. Proximus held a partial stake in BICS, which Proximus spun off from its own operations in 1997. In 2021, Proximus bought out BICS' other shareholders, making it the sole owner of both the telecom interchange and TeleSign. With that in mind, noyb is also leveling charges against Proximus and BICS. In its complaint, noyb said Proximus was asked by EU citizens from various countries to provide records of the data TeleSign processed, as is their right under Article 15 of the GDPR. [...] Noyb is seeking cessation of all data transfers from BICS to TeleSign, processing of said data, and is requesting deletion of all unlawfully transmitted data. It's also asking for Belgian data protection authorities to fine Proximus, which noyb said could reach as high as $257 million -- a mere 4 percent of Proximus's global turnover.

The Internet

ISPs Say US Should Force Big Tech Firms To Pay For Broadband Construction (arstechnica.com) 144

An anonymous reader quotes a report from Ars Technica: Internet service providers in both the US and Europe are clamoring for new payments from Big Tech firms. European broadband providers are much closer to realizing the long-held goal of payments from tech companies, as the European Union government is holding an official consultation on the proposal. As the EU process unfolds, the telco lobby group USTelecom is hoping to push the US down a similar but not quite identical path. In a blog post on Friday, USTelecom CEO Jonathan Spalter argued that the biggest technology companies should contribute toward a fund that subsidizes the building of broadband networks. Spalter wrote that Amazon and similar Internet companies should fill what he called a "conspicuously empty seat at the collective table of global high-speed connectivity."

Given that "six companies account for half of all Internet traffic worldwide... Does it still make sense that the government and broadband providers alone fund this critical infrastructure? Is there no shared obligation from the primary financial beneficiaries of these networks -- the world's most powerful Internet companies?" Spalter wrote. "We need a modern reset that more equitably shares these financial obligations among those who benefit the most from these connections," he argued. USTelecom members include AT&T, Verizon, Lumen (formerly CenturyLink), Windstream, and other telcos. It's one of the biggest trade groups that lobbies for US-based Internet service providers.

[...] USTelecom pointed to the Biden administration's comments in its pitch to make Big Tech firms pay into a central fund like the existing Universal Service Fund (USF) managed by the Federal Communications Commission. "We concur with the US government's position that rather than the payments to broadband providers proposed in the EU, such 'publicly accountable funding mechanisms can better ensure that resources are devoted to key policy objectives, such as improving access and strengthening network security, while avoiding discriminatory measures that distort competition,'" Spalter wrote. The Biden administration's comments didn't call for tech companies to pay into a government-run fund, though. The document noted that the US "approach to financing improvements to broadband infrastructure involves private investments, a national Universal Service Fund, and significant public funding made from general appropriations," but didn't argue for any changes to who pays into the fund.

Businesses

Adobe's $20 Billion Figma Acquisition Likely To Face EU Investigation (gizmodo.com) 22

According to a report from The Financial Times, the European Union Commission is planning an in-depth investigation into Adobe's $20 billion purchase of Figma, the popular online graphics editing and interface design application. Gizmodo reports: Back in February, the EU Commission noted that it had received numerous requests to review the business deal. The international watchdog announced that it would need to clear the proposed merger, under the justification that it "threatens to significantly affect competition in the market for interactive product design and whiteboarding software."

Now, the Brussels-based Commission will open a phase II investigation, per the FT. Generally, anti-competition probes are handled at the phase I level, which accounts for 90% of all cases, according to EU internal data. In comparison, a phase II analysis takes more time and goes deeper. By the Commission's description, a phase II investigation "typically involves more extensive information gathering, including companies' internal documents, extensive economic data, more detailed questionnaires to market participants, and/or site visits." From the start of such a probe, the regulatory body has 90 days to make a decision.

The EU Commission would not directly confirm its plans to investigate the Adobe/Figma merger. In an email, spokesperson Marta Perez-Cejuela told Gizmodo, "this transaction has not been formally notified to the Commission." Such notification is a requirement before any investigation can move forward. Commission officials requested that Adobe submit an official notification in February. Despite the Commission's lack of formal announcement, an EU probe into the acquisition is expected. Already the U.S. Department of Justice and the United Kingdom's Competition and Markets Authority are looking into the digital design tool deal. The DOJ is reportedly preparing to file an antitrust suit blocking the merger, while the UK CMA is actively investigating the acquisition, with a first decision due by the end of June.

AI

Consumer Group Calls On EU To Urgently Investigate 'The Risks of Generative AI' (techcrunch.com) 35

An anonymous reader quotes a report from TechCrunch: European regulators are at a crossroads over how AI will be regulated -- and ultimately used commercially and non-commercially -- in the region, and today the EU's largest consumer group, the BEUC, weighed in with its own position: stop dragging your feet, and "launch urgent investigations into the risks of generative AI" now, it said. "Generative AI such as ChatGPT has opened up all kinds of possibilities for consumers, but there are serious concerns about how these systems might deceive, manipulate and harm people. They can also be used to spread disinformation, perpetuate existing biases which amplify discrimination, or be used for fraud," said Ursula Pachl, Deputy Director General of BEUC, in a statement. "We call on safety, data and consumer protection authorities to start investigations now and not wait idly for all kinds of consumer harm to have happened before they take action. These laws apply to all products and services, be they AI-powered or not and authorities must enforce them."

The BEUC, which represents consumer organizations in 13 countries in the EU, issued the call to coincide with a report out today (PDF) from one of its members, Forbrukerradet in Norway. That Norwegian report is unequivocal in its position: AI poses consumer harms (the title of the report says it all: "Ghost in the Machine: addressing the consumer harms of generative AI") and poses numerous problematic issues. It highlights, for example, how "certain AI developers including Big Tech companies" have closed off systems from external scrutiny making it difficult to see how data is collected or algorithms work; the fact that some systems produce incorrect information as blithely as they do correct results, with users often none the wiser about which it might be; AI that's built to mislead or manipulate users; the bias issue based on the information that is fed into a particular AI model; and security, specifically how AI could be weaponized to scam people or breach systems. [...]

The AI Law, when implemented, will be the world's first attempt to try to codify some kind of understanding and legal enforcement around how AI is used commercially and non-commercially. The next step in the process is for the EU to engage with individual countries in the EU to hammer out what final form the law will take -- specifically to identify what (and who) would fit into its categories, and what will not. The question will be in how readily different countries agree together. The EU wants to finalize this process by the end of this year, it said. "It is crucial that the EU makes this law as watertight as possible to protect consumers," said Pachl in her statement. "All AI systems, including generative AI, need public scrutiny, and public authorities must reassert control over them. Lawmakers must require that the output from any generative AI system is safe, fair and transparent for consumers."

AI

OpenAI Lobbied the EU To Water Down AI Regulation (time.com) 43

Billy Perrigo, reporting for Time: The CEO of OpenAI, Sam Altman, has spent the last month touring world capitals where, at talks to sold-out crowds and in meetings with heads of governments, he has repeatedly spoken of the need for global AI regulation. But behind the scenes, OpenAI has lobbied for significant elements of the most comprehensive AI legislation in the world -- the E.U.'s AI Act -- to be watered down in ways that would reduce the regulatory burden on the company, according to documents about OpenAI's engagement with E.U. officials obtained by TIME from the European Commission via freedom of information requests.

In several cases, OpenAI proposed amendments that were later made to the final text of the E.U. law -- which was approved by the European Parliament on June 14, and will now proceed to a final round of negotiations before being finalized as soon as January. In 2022, OpenAI repeatedly argued to European officials that the forthcoming AI Act should not consider its general purpose AI systems -- including GPT-3, the precursor to ChatGPT, and the image generator Dall-E 2 -- to be "high risk," a designation that would subject them to stringent legal requirements including transparency, traceability, and human oversight.

EU

EU To Air Ideas on Guarding Prized Technology (reuters.com) 22

The European Commission will unveil on Tuesday possible measures, such as screening of outbound investments and export controls, to keep prized EU technology from countries such as China and prevent it being put to military use by rivals. From a report: The European Union executive will present its Economic Security Strategy as a "communication" to EU lawmakers and countries, whose leaders are set to discuss relations with China in Brussels next week. While not a formal legislative proposal, the communication will lay out strategies the 27-nation EU should consider as it seeks to "de-risk" from China and avoid sensitive technology leaking out through exports or investments abroad.

The Commission will need to tread carefully because granting of export licences and weighing security interests are national competences that EU governments will want to retain. A Dutch plan that effectively bars Chinese companies from buying the most advanced lithography tools of ASML, which are used to make semiconductors, is a case in point. The Dutch acted alone, but wanted restrictions throughout the EU. EU officials point out there is no clear way to do this.

Intel

Intel To Spend $33 Billion in Germany in Landmark Expansion (reuters.com) 12

Intel will invest more than 30 billion euros ($33 billion) in Germany as part of its expansion push in Europe, the U.S. company said on Monday, marking the biggest investment by a foreign company in Europe's top economy. From a report: The deal to build two leading-edge semiconductor facilities in the eastern city of Magdeburg involves 10 billion euros in German subsidies, a person familiar with the matter said. Intel CEO Pat Gelsinger said he was grateful to the German government and the state of Saxony-Anhalt, where Magdeburg is located, for "fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU." Under Gelsinger, Intel has been investing billions in building factories across three continents to restore its dominance in chipmaking and better compete with rivals AMD, Nvidia and Samsung.
EU

EU Votes To Bring Back Replaceable Phone Batteries 218

What's old is new again, at least in the European Union. The European Parliament recently voted in favor of new legislation that would overhaul the entire battery life cycle, from design to end-of-life, which includes important caveats for smartphone users. From a report: Among the many changes, the new rules would require batteries in consumer devices like smartphones to be easily removable and replaceable. That's far from the case today with most phones, but that wasn't always the case.
AI

EU Votes To Ban AI In Biometric Surveillance, Require Disclosure From AI Systems 34

European Union officials have voted in favor of stricter regulations on artificial intelligence, including a ban on AI use in biometric surveillance and a requirement for AI systems like OpenAI's ChatGPT to disclose when content is generated by AI. Ars Technica reports: On Wednesday, European Union officials voted to implement stricter proposed regulations concerning AI, according to Reuters. The updated draft of the "AI Act" law includes a ban on the use of AI in biometric surveillance and requires systems like OpenAI's ChatGPT to reveal when content has been generated by AI. While the draft is still non-binding, it gives a strong indication of how EU regulators are thinking about AI. The new changes to the European Commission's proposed law -- which have not yet been finalized -- intend to shield EU citizens from potential threats linked to machine learning technology.

The new draft of the AI Act includes a provision that would ban companies from scraping biometric data (such as user photos) from social media for facial recognition training purposes. News of firms like Clearview AI using this practice to create facial recognition systems drew severe criticism from privacy advocates in 2020. However, Reuters reports that this rule might be a source of contention with some EU countries who oppose a blanket ban on AI in biometric surveillance. The new EU draft also imposes disclosure and transparency measures on generative AI. Image synthesis services like Midjourney would be required to disclose AI-generated content to help people identify synthesized images. The bill would also require that generative AI companies provide summaries of copyrighted material scraped and utilized in the training of each system. While the publishing industry backs this proposal, according to The New York Times, tech developers argue against its technical feasibility.

Additionally, creators of generative AI systems would be required to implement safeguards to prevent the generation of illegal content, and companies working on "high-risk applications" must assess their potential impact on fundamental rights and the environment. The current draft of the EU law designates AI systems that could influence voters and elections as "high-risk." It also classifies systems used by social media platforms with over 45 million users under the same category, thus encompassing platforms like Meta and Twitter. [...] Experts say that after considerable debate over the new rules among EU member nations, a final version of the AI Act isn't expected until later this year.
Google

Google Faces EU Break-Up Order Over Anti-Competitive Adtech Practices (reuters.com) 51

Alphabet's Google may have to sell part of its lucrative adtech business to address concerns about anti-competitive practices, EU regulators said on Wednesday, threatening the company with its harshest regulatory penalty to date. From a report: The European Commission set out its charges in a statement of objections to Google two years after opening an investigation into behaviours such as favouring its own advertising services, which could also lead to a fine of as much as 10% of Google's annual global turnover. The stakes are higher for Google in this latest clash with regulators as it concerns the company's biggest money maker, with the adtech business accounting for 79% of total revenue last year.

Its 2022 advertising revenue, including from search services, Gmail, Google Play, Google Maps, YouTube adverts, Google Ad Manager, AdMob and AdSense, amounted to $224.5 billion. EU antitrust chief Margrethe Vestager said Google may have to sell part of its adtech business because a behavioural remedy is unlikely to be effective at stopping the anti-competitive practices.

AI

Europeans Take a Major Step Toward Regulating AI (nytimes.com) 25

The European Union took an important step on Wednesday toward passing what would be one of the first major laws to regulate artificial intelligence, a potential model for policymakers around the world as they grapple with how to put guardrails on the rapidly developing technology. From a report: The European Parliament, a main legislative branch of the E.U., passed a draft law known as the A.I. Act, which would put new restrictions on what are seen as the technology's riskiest uses. It would severely curtail uses of facial recognition software, while requiring makers of A.I. systems like the ChatGPT chatbot to disclose more about the data used to create their programs. The vote is one step in a longer process. A final version of the law is not expected to be passed until later this year.

The European Union is further along than the United States and other large Western governments in regulating A.I. The 27-nation bloc has debated the topic for more than two years, and the issue took on new urgency after last year's release of ChatGPT, which intensified concerns about the technology's potential effects on employment and society. Policymakers everywhere from Washington to Beijing are now racing to control an evolving technology that is alarming even some of its earliest creators. In the United States, the White House has released policy ideas that includes rules for testing A.I. systems before they are publicly available and protecting privacy rights. In China, draft rules unveiled in April would require makers of chatbots to adhere to the country's strict censorship rules. Beijing is also taking more control over the ways makers of A.I. systems use data.

Google

Google To Get Hit With EU Antitrust Charges for Ad Tech Abuses (bloomberg.com) 14

Google is set to be hit with a formal antitrust complaint from the European Union that could lead to massive new fines and strike at the heart of the advertising technology that drives most of the US firm's revenue. From a report: The so-called statement of objections, to be announced as soon as Wednesday, will mark another escalation in a long-running saga that's already led to a trio of EU penalties totaling more than $8.6 billion. The new charges will target the core of the Alphabet unit's ad tech business model, according to people familiar with the matter who spoke on condition of anonymity. Google's advertising business is by far its most successful, accounting for about 80% of its annual revenue. In 2022, its ad sales amounted to about $225 billion. The new complaint is the most significant in the current five-year mandate of the European Commission, the EU's antitrust watchdog, one of the people said.
AI

OpenAI, DeepMind Will Open Up Models To UK Government (politico.eu) 17

Google DeepMind, OpenAI and Anthropic have agreed to open up their AI models to the U.K. government for research and safety purposes, Prime Minister Rishi Sunak announced at London Tech Week on Monday. From a report: The priority access will be granted in order "to help build better evaluations and help us better understand the opportunities and risks of these systems," Sunak said. The announcement came in a speech that championed the promise of AI to transform areas such as education and healthcare and heralded the U.K.'s potential as an "island of innovation."

"AI is surely one of the greatest opportunities before us," said Sunak. By combining AI models with the power of quantum, "the possibilities are extraordinary," he marvelled. "But we must and we will do it safely," he continued. "I know people are concerned."

EU

EU Approves $8.7 Billion of State Aid for Tech Innovation Projects (reuters.com) 14

The European Commission has approved 8.1 billion euros ($8.7 billion) of state aid for microelectronics and communication technology projects as part of the European Union's drive to be at the cutting edge of technological innovation. From a report: The EU executive said on Thursday that 14 member countries could provide the aid to 68 projects involving companies including Airbus, ASML and Ericsson. The projects have been collectively designated an Important Project of Common European Interest (IPCEI), qualifying them for easier EU state aid rules. They follow an earlier batch of IPCEI projects in the same sector approved in 2018.

The projects, which involve a total of 56 companies, include research and development into materials and tools, as well as chip design and manufacturing processes. They target 5G and 6G telecoms technology, along with autonomous driving, artificial intelligence (AI) and quantum computing. The first novel products could come to market as early as 2025, while the overall project is expected to be completed by 2032.

Businesses

OpenAI CEO Has No IPO Plan Due To 'Strange' Company Structure (reuters.com) 73

An anonymous reader quotes a report from Reuters: Microsoft-backed OpenAI, the company behind ChatGPT, has no plans to go public any time soon, Chief Executive Sam Altman said at a conference in Abu Dhabi. "When we develop super intelligence, we are likely to make some decisions that most investors would look at very strangely," Altman said. "I don't want to be sued by ... public market, Wall Street etc, so no, not that interested," he said in response to a question on whether he will take OpenAI public.

OpenAI has so far raised $10 billion from Microsoft (MSFT.O) at a valuation of almost $30 billion as it invests more on building computing capacity. "We have a very strange structure. We have this cap to profit thing," he said. OpenAI started off as a non-profit organization but later created a hybrid "capped-profit" company, that allowed it to raise external funds with a promise that the original non-profit operation still benefits.

Altman is on a whirlwind tour across the world, meeting heads of states of several countries, and was in the United Arab Emirates on Tuesday. He plans to travel next to Qatar, India and South Korea. While in Europe he got into controversy for saying OpenAI may leave the region if it becomes too hard to comply with planned laws on AI, inviting criticism from several lawmakers, including EU industry chief Thierry Breton. OpenAI later reversed the stance. "We did not threaten to leave the EU," Altman said on Tuesday. "We expect to be able to comply. There's still more clarity we are waiting for on the EU AI Act, but we are very excited to operate in Europe."

AI

AI Generated Content Should Be Labelled, EU Commissioner Jourova Says (reuters.com) 45

Companies deploying generative AI tools such as ChatGPT and Bard with the potential to generate disinformation should label such content as part of their efforts to combat fake news, European Commission deputy head Vera Jourova said on Monday. From a report: Unveiled late last year, Microsoft-backed OpenAI's ChatGPT has become the fastest-growing consumer application in history and set off a race among tech companies to bring generative AI products to market. Concerns however are mounting about potential abuse of the technology and the possibility that bad actors and even governments may use it to produce far more disinformation than before.

"Signatories who integrate generative AI into their services like Bingchat for Microsoft, Bard for Google should build in necessary safeguards that these services cannot be used by malicious actors to generate disinformation," Jourova told a press conference. "Signatories who have services with a potential to disseminate AI generated disinformation should in turn put in place technology to recognise such content and clearly label this to users," she said. Companies such as Google, Microsoft and Meta Platforms that have signed up to the EU Code of Practice to tackle disinformation should report on safeguards put in place to tackle this in July, Jourova said.

Open Source

'RISE' Project Building Open Source RISC-V Software Announced by Linux Foundation Europe (linuxfoundation.eu) 11

Linux Foundation Europe "has announced the RISC-V Software Ecosystem (RISE) Project to help facilitate more performant, commercial-ready software for the RISC-V processor architecture," reports Phoronix.

"Among the companies joining the RISE Project on their governing board are Andes, Google, Intel, Imagination Technologies, Mediatek, NVIDIA, Qualcomm, Red Hat, Rivos, Samsung, SiFive, T-Head, and Ventana."

It's top goal is "accelerate the development of open source software for RISC-V," according to the official RISE web site. The project's chair says it "brings together leaders with a shared sense of urgency to accelerate the RISC-V software ecosystem readiness in collaboration with RISC-V International." The CEO of RISC-V International, Calista Redmond, said "We are grateful to the thousands of engineers making upstream contributions and to the organizations coming together now to invest in tools and libraries in support of the RISC-V software ecosystem." RISE Project members will contribute financially and provide engineering talent to address specific software deliverables prioritized by the RISE Technical Steering Committee (TSC). RISE is dedicated to enabling a robust software ecosystem specifically for application processors that includes software development tools, virtualization support, language runtimes, Linux distribution integration, and system firmware, working upstream first with existing open source communities in accordance with open source best practices.

"The RISE Project is dedicated to enabling RISC-V in open source tools and libraries (e.g., LLVM, GCC, etc) to speed implementation and time-to-market," said Gabriele Columbro, General Manager of Linux Foundation Europe.

Google's director of engineering on Android said Google was "excited to partner with industry leaders to drive rapid maturity of the RISC-V software ecosystem in support of Android and more."

And the VP of system software at NVIDIA said "NVIDIA's accelerated computing platform — which includes GPUs, DPUs, chiplets, interconnects and software — will support the RISC-V open standard to help drive breakthroughs in data centers, and a wide range of industries, such as automotive, healthcare and robotics."
Microsoft

Microsoft Stashes Nearly Half a Billion in Case LinkedIn Data Drama Hits (theregister.com) 13

Microsoft has warned investors about a "non-public" draft decision by Irish regulators against LinkedIn for allegedly dodgy ad data practices, explaining it had set aside some cash to pay off any potential fine. From a report: How much? Oh, a mere $425 million. The software giant said the funds were connected to a 2018 investigation by the Irish Data Protection Commission (IDPC) looking into whether LinkedIn's targeted advertising practices violated the the European Union's General Data Protection Regulation (GDPR). At the time of the complaint, the 2016 law had been recently implemented and the watchdog was just settling into its role as EU overlord of judging data practices of the tech giants. Microsoft denies it broke any GDPR rules and said it "intends to defend itself vigorously in this matter."

Slashdot Top Deals