Businesses

Amazon Claims It Isn't a 'Very Large Online Platform' To Evade EU Rules (arstechnica.com) 48

An anonymous reader quotes a report from Ars Technica: Amazon doesn't want to comply with Europe's Digital Services Act, and to avoid the rules the company is arguing that it doesn't meet the definition of a Very Large Online Platform under EU law. Amazon filed an appeal at the EU General Court to challenge the European Commission decision that Amazon meets the criteria and must comply with the new regulations. "We agree with the EC's objective and are committed to protecting customers from illegal products and content, but Amazon doesn't fit this description of a 'Very Large Online Platform' (VLOP) under the DSA and therefore should not be designated as such," Amazon said in a statement provided to Ars today.

The Digital Services Act includes content moderation requirements, transparency rules, and protections for minors. Targeted advertising based on profiling toward children will no longer be permitted, for example. Amazon argued that the new law is supposed to "address systemic risks posed by very large companies with advertising as their primary revenue and that distribute speech and information," and not businesses that are primarily retail-based. "The vast majority of our revenue comes from our retail business," Amazon said. Amazon also claims it's unfair that some retailers with larger businesses in individual countries weren't on the list of 19 companies that must comply with the Digital Services Act. The rules only designate platforms with over 45 million active users in the EU as of February 17.

Amazon said it is "not the largest retailer in any of the EU countries where we operate, and none of these largest retailers in each European country has been designated as a VLOP. If the VLOP designation were to be applied to Amazon and not to other large retailers across the EU, Amazon would be unfairly singled out and forced to meet onerous administrative obligations that don't benefit EU consumers." Those other companies Amazon referred to include Poland's Allegro or the Dutch Bol.com, according to a Bloomberg report. Neither of those platforms appears to have at least 45 million active users.
A summary of the appeal provided by Amazon claimed the designation "is based on a discriminatory criterion and disproportionately violates the principle of equal treatment and the applicant's fundamental rights." In response, the EC said that "it would defend its position in court and added that Amazon still must comply with the rules by end of August, regardless of the appeal," Bloomberg wrote.

"The scope of the DSA is very clear and is defined to cover all platforms that expose their users to content, including the sale of products or services, which can be illegal," the commission said in statement reported by Bloomberg. "For marketplaces as for social networks, very wide user reach increases the risks and the platforms' responsibilities to address them."
Security

Actively Exploited Vulnerability Threatens Hundreds of Solar Power Stations (arstechnica.com) 23

An anonymous reader quotes a report from Ars Technica: Hundreds of Internet-exposed devices inside solar farms remain unpatched against a critical and actively exploited vulnerability that makes it easy for remote attackers to disrupt operations or gain a foothold inside the facilities. The devices, sold by Osaka, Japan-based Contec under the brand name SolarView, help people inside solar facilities monitor the amount of power they generate, store, and distribute. Contec says that roughly 30,000 power stations have introduced the devices, which come in various packages based on the size of the operation and the type of equipment it uses.

Searches on Shodan indicate that more than 600 of them are reachable on the open Internet. As problematic as that configuration is, researchers from security firm VulnCheck said Wednesday, more than two-thirds of them have yet to install an update that patches CVE-2022-29303, the tracking designation for a vulnerability with a severity rating of 9.8 out of 10. The flaw stems from the failure to neutralize potentially malicious elements included in user-supplied input, leading to remote attacks that execute malicious commands. Security firm Palo Alto Networks said last month the flaw was under active exploit by an operator of Mirai, an open source botnet consisting of routers and other so-called Internet of Things devices. The compromise of these devices could cause facilities that use them to lose visibility into their operations, which could result in serious consequences depending on where the vulnerable devices are used.

"The fact that a number of these systems are Internet facing and that the public exploits have been available long enough to get rolled into a Mirai-variant is not a good situation," VulnCheck researcher Jacob Baines wrote. "As always, organizations should be mindful of which systems appear in their public IP space and track public exploits for systems that they rely on." Baines said that the same devices vulnerable to CVE-2022-29303 were also vulnerable to CVE-2023-23333, a newer command-injection vulnerability that also has a severity rating of 9.8. Although there are no known reports of it being actively exploited, exploit code has been publicly available since February. Incorrect descriptions for both vulnerabilities are one factor involved in the patch failures, Baines said. Both vulnerabilities indicate that SolarView versions 8.00 and 8.10 are patched against CVE-2022-29303 and CVE-2023-293333. In fact, the researcher said, only 8.10 is patched against the threats.

Social Networks

Macron Accused of Authoritarianism After Threat To Cut Off Social Media During Riots (theguardian.com) 76

Emmanuel Macron is facing a backlash after threatening to cut off social media networks as a means of stopping the spread of violence during periods of unrest. The Guardian reports: Elysee officials and government ministers responded on Wednesday by insisting the president was not threatening a "general blackout" but instead the "occasional and temporary" suspension of platforms. The president's comments came as ministers blamed young people using social media such as Snapchat and TikTok for organizing and encouraging rioting and violence after the shooting dead of a teenager during a police traffic stop in a Paris suburb last week.

"We need to think about how young people use social networks, in the family, at school, the interdictions there should be ... and when things get out of hand we may have to regulate them or cut them off," Macron told a meeting of more than 250 mayors, whose municipalities were hit by the violence, on Tuesday. "Above all, we shouldn't do this in the heat of the moment and I'm pleased we didn't have to. But I think it's a real debate that we need to have in the cold light of day," Macron told the mayors in a video obtained by BFM television. Critics said considering such measures would put France alongside authoritarian countries such as China, Russia, Iran and North Korea.

Speaking after a ministerial meeting on Wednesday, government spokesperson Olivier Veran said a cross-party committee to look at a modification of a law on cybersecurity currently going through parliament would be set up. Veran said the government had made a "firm request" to social media platforms to take down materials encouraging violence as quickly as possible and remove the anonymity of those possibly breaking the law. A young person should know he cannot sit behind his screen and write, organize or do whatever he wants. Anonymity in terms of offenses doesn't exist. You have to understand this can have consequences and the consequences can lead to punishment," Veran said. Asked if it meant suspending social media, the Veran added: "It could be something like suspending a function, such as geolocalization."

Democrats

Judge Rules White House Pressured Social Networks To 'Suppress Free Speech' (arstechnica.com) 246

A federal judge yesterday ordered the Biden administration to halt a wide range of communications with social media companies, siding with Missouri and Louisiana in a lawsuit (PDF) that alleges Biden and his administration violated the First Amendment by colluding with social networks "to suppress disfavored speakers, viewpoints, and content." Ars Technica reports: The Biden administration argued that it communicated with tech companies to counter misinformation related to elections, COVID-19, and vaccines, and that it didn't exert illegal pressure on the companies. The communications to social media companies were not significant enough "to convert private conduct into government conduct," Department of Justice lawyers argued in the case. But Judge Terry Doughty, a Trump nominee at US District Court for the Western District of Louisiana, granted the plaintiffs' request (PDF) for a preliminary injunction imposing limits on the Department of Health and Human Services, the National Institute of Allergy and Infectious Diseases, the Centers for Disease Control and Prevention, the Federal Bureau of Investigation, the Department of Justice, the US Census Bureau, the State Department, the Homeland Security Department, the Cybersecurity and Infrastructure Security Agency, and many specific officials at those agencies. The injunction also affects White House officials.

The agencies and officials are prohibited from communicating "with social-media companies for the purpose of urging, encouraging, pressuring, or inducing in any manner the removal, deletion, suppression, or reduction of content containing protected free speech posted on social-media platforms," Doughty ruled. The injunction prohibits "specifically flagging content or posts on social-media platforms and/or forwarding such to social-media companies urging, encouraging, pressuring, or inducing in any manner for removal, deletion, suppression, or reduction of content containing protected free speech." Government agencies and officials are further barred from urging, encouraging, or pressuring social media companies "to change their guidelines for removing, deleting, suppressing, or reducing content containing protected free speech." The ruling also said the government may not coordinate with third-party groups, including the Election Integrity Partnership, the Virality Project, and the Stanford Internet Observatory, to pressure social media companies.

Doughty provided several exceptions that allow the government to communicate with social media companies about criminal activity and other speech that the First Amendment doesn't protect. The Biden administration may continue to inform social networks about posts involving criminal activity or criminal conspiracies, national security threats, extortion, criminal efforts to suppress voting, illegal campaign contributions, cyberattacks against election infrastructure, foreign attempts to influence elections, threats to public safety and security, and posts intending to mislead voters about voting requirements and procedures. The US can also exercise "permissible public government speech promoting government policies or views on matters of public concern," communicate with social networks "in an effort to detect, prevent, or mitigate malicious cyber activity," and "communicat[e] with social-media companies about deleting, removing, suppressing, or reducing posts on social-media platforms that are not protected free speech by the Free Speech Clause in the First Amendment to the United States Constitution."

United States

Judge Blocks US Officials From Tech Contacts in First Amendment Case (washingtonpost.com) 414

A federal judge on Tuesday blocked key Biden administration agencies and officials from meeting and communicating with social media companies about "protected speech," in an extraordinary preliminary injunction in an ongoing case that could have profound effects on the First Amendment. From a report: The injunction came in response to a lawsuit brought by Republican attorneys general in Louisiana and Missouri, who allege that government officials went too far in their efforts to encourage social media companies to address posts that they worried could contribute to vaccine hesitancy during the pandemic or upend elections.

The Trump-appointed judge's move could undo years of efforts to enhance coordination between the government and social media companies. For more than a decade, the federal government has attempted to work with social media companies to address a wide range of criminal activity, including child sexual abuse images and terrorism. Over the last five years, coordination and communication between government officials and the companies increased as the federal government responded to rising election interference and voter suppression efforts after revelations that Russian actors had sowed disinformation on U.S. social sites during the 2016 election. Public health officials also frequently communicated with the companies during the coronavirus pandemic, as falsehoods about the virus and vaccines spread on social networks including Facebook, Twitter and YouTube.

Businesses

Ambani's Jio Unveils $12 4G Phone With Digital Pay and Streaming (techcrunch.com) 15

Reliance's digital arm, Jio Platforms, has unveiled a new mobile handset and associated tariff plans, the latest in a series of years-long efforts from the top Indian telecom operator as it vies to convert users who remain "trapped" in the country's legacy 2G networks. From a report: Named 'Jio Bharat,' the handset from Jio Platforms is 4G-enabled and offers a suite of modern features including mobile payments capabilities with UPI, and access to Jio's own on-demand video and music streaming services, JioCinema and JioSaavn. The company said it will manufacture the Jio Bharat and also partner with other phonemakers to adopt the Jio Bharat Platform to build the handsets. The Delhi-headquartered Karbonn has signed up to the platform, said the billionaire Mukesh Ambani-led firm in a statement. The Jio Bharat is priced at 999 Indian rupees, or $12.2, Reliance said.
AI

Should UK Stores Use Facial Recognition Tech to Fight Shoplifting? (yahoo.com) 109

The New York Times tells the story of Simon Mackenzie, a security officer at a U.K. discount store uploading security camera footage of shoplifters into a facial recognition program called Facewatch. "The next time those people enter any shop within a few miles that uses Facewatch, store staff will receive an alert."

Facewatch — now in nearly 400 stores across Britain — licenses facial recognition software made by Real Networks and Amazon. Though it only sends alert about repeat offenders, "Once added, a person remains there for a year before being deleted." For as little as 250 pounds a month, or roughly $320, Facewatch offers access to a customized watchlist that stores near one another share. When Facewatch spots a flagged face, an alert is sent to a smartphone at the shop, where employees decide whether to keep a close eye on the person or ask the person to leave. Mr. Mackenzie adds one or two new faces every week, he said, mainly people who steal diapers, groceries, pet supplies and other low-cost goods. He said their economic hardship made him sympathetic, but that the number of thefts had gotten so out of hand that facial recognition was needed. Usually at least once a day, Facewatch alerts him that somebody on the watchlist has entered the store...

Among democratic nations, Britain is at the forefront of using live facial recognition, with courts and regulators signing off on its use. The police in London and Cardiff are experimenting with the technology to identify wanted criminals as they walk down the street. In May, it was used to scan the crowds at the coronation of King Charles III. But the use by retailers has drawn criticism as a disproportionate solution for minor crimes. Individuals have little way of knowing they are on the watchlist or how to appeal. In a legal complaint last year, Big Brother Watch, a civil society group, called it "Orwellian in the extreme...." Madeleine Stone, the legal and policy officer for Big Brother Watch, said Facewatch was "normalizing airport-style security checks for everyday activities like buying a pint of milk."

There is a human in the loop, the article points out. "Every time Facewatch's system identifies a shoplifter, a notification goes to a person who passed a test to be a 'super recognizer' — someone with a special talent for remembering faces. Within seconds, the super recognizer must confirm the match against the Facewatch database before an alert is sent."

The company's founder tells the Times that in general, "mistakes are rare but do happen... If this occurs, we acknowledge our mistake, apologize, delete any relevant data to prevent reoccurrence and offer proportionate compensation."

And the article adds this official response from the U.K. government: Fraser Sampson, Britain's biometrics and surveillance camera commissioner, who advises the government on policy, said there was "a nervousness and a hesitancy" around facial recognition technology because of privacy concerns and poorly performing algorithms in the past. "But I think in terms of speed, scale, accuracy and cost, facial recognition technology can in some areas, you know, literally be a game changer," he said. "That means its arrival and deployment is probably inevitable. It's just a case of when."
Communications

Huawei Says Ready To Ship Entire 5.5G Networks - Whatever They Are - in 2024 26

Huawei has claimed it will offer everything a carrier needs to run a 5.5G network next year. Which sounds great -- even if 5.5G is a little mysterious. From a report: Huawei announced its future products at the Shanghai incarnation of Mobile World Congress on Thursday. The Chinese firm's director and president of ICT Products & Solutions, Yang Chaobin, proclaimed Huawei intends for its launch "to mark the beginning of the 5.5G era for the ICT industry." But as The Register has previously reported, 5.5G is a contested label.

The 3GPP, which oversees development of 5G and other standards, is yet to formally declare 5.5G is a thing. It is, however, continuing to evolve 5G and is currently steering work on Release 18 -- which it has styled "5G-Advanced." It includes some significant changes, such as the ability to offer 10Gbit/sec connections -- if carriers can use 800MHz of spectrum. Release 18 will also require mmWave frequencies. Huawei appears to be referring to Release 18 as 5.5G, for reasons that aren't entirely clear.

Yang sprinkled a little hype dust on his announcement -- claiming that Huawei has "been working on applying AI-native technologies to 5.5G core networks to continuously enhance network capabilities and availability." Doing so will apparently "allow AI capabilities to be delivered to the very ends of networks." Righto. Just keep saying "AI" a lot and people will love it.
AI

Oracle Spending 'Billions' on Nvidia Chips This Year, Ellison Says (reuters.com) 27

Oracle is spending "billions" of dollars on chips from Nvidia as it expands a cloud computing service targeting a new wave of artificial intelligence companies, Oracle founder and Chairman Larry Ellison said. From a report: Oracle's cloud division is working to gain ground against larger rivals such as Amazon Web Services and Microsoft. To get an edge, Oracle has focused on building fast networks that can shuffle around the huge amount of data needed to create AI systems similar to ChatGPT.

Oracle is also buying huge numbers of GPUs designed to crunch that data for AI work. Oracle is also spending "billions" of dollars on Nvidia chips but even more on CPUs from Ampere Computing, a chip startup it has invested in, and AMD, Ellison said at an Ampere event.

The Internet

Americans Hate ISPs Almost As Much As They Hate Gas Stations, Survey Finds (extremetech.com) 113

An anonymous reader quotes a report from ExtremeTech: Americans hate their internet service providers (ISPs) more than any other segment of the consumer economy -- except gas stations. A fresh set of rankings from the American Consumer Satisfaction Index (ACSI) reveals that few consumers are happy with the way their ISPs conduct business, preferring them only over trips to the pump in a list of 43 major industries. The rankings come courtesy of the ACSI's most recent telecommunications study, which the organization publishes annually. The study covers subscription TV services, video streaming services, and ISPs of both the fiber and non-fiber variety. Using interviews with 22,061 American consumers conducted between April 2022 and March 2023, this year's telecommunications study investigates just how happy people are with their ISPs, then pits that data against that of several other industries. This year, ISPs ranked lower than the endlessly frustrating automobile, banking, and health insurance industries, as well as 39 others that people tend to have an easier time with, such as breweries and athletic shoes.

On a satisfaction scale of 1 to 100, ISPs earned a lackluster 68, which consists of fiber's 75-point and non-fiber's 66-point satisfaction scores combined. The ACSI used customers' input on a number of experiential data points, from choosing a plan to actually using their home Wi-Fi networks, to calculate both scores and combine them based on usage. Although fiber customers found their internet to be relatively reliable and their bills easy to understand, earning an 80 in both categories, non-fiber customers weren't as impressed at 72 and 75, respectively. Unsurprisingly, both fiber and non-fiber customers enjoyed reaching out to their providers' customer service teams the least out of 14 total data points.

There was only one industry that ranked lower than ISPs. As much as Americans generally dislike the way ISPs manage hardware, pricing, customer service, outages, and more, they dislike gas stations even more, giving the category a measly score of 65. While the ACSI doesn't share respondents' reasoning (it's a telecommunications study, after all), it's easy to see why consumers might not enjoy spending obscene money to fill their tanks at dusty roadside stops.

Social Networks

Russian Coup Aided by Telegram, VPNs as Government Blocks Google News (nytimes.com) 140

Yevgeny V. Prigozhin heads the Russia-backed paramilitary Wagner Group — and was also "a close confidant of Russian president Vladimir Putin until he launched an alleged coup," according to Wikipedia.

The New York Times notes Prigozhin's remarkable ability to bypass government censorship: Despite years of creeping Kremlin control over the internet, the mercenary tycoon Yevgeny V. Prigozhin continued to comment live on Saturday through videos, audio recordings and statements posted on the messaging app Telegram.

His remarkable continued access to a public platform amid a crisis demonstrated both the limits of official restrictions and the rise of Telegram as a powerful mode of communication since the start of the war in Ukraine in February 2022. The app, along with the proliferation of virtual private networks, has effectively loosened the information controls that the Russian authorities had tightened for years.

Russian internet service providers began blocking access to Google News shortly after the authorities accused Mr. Prigozhin of organizing an armed uprising on Friday. But while unconfirmed reports surfaced of Telegram outages in some Russian cities, people within Russia continued to post on the app.

CNN just reported that Prigozhin's paramilitary group "has claimed control of several military facilities and has dispatched some of his troops towards Moscow... Russian security forces in body armor and equipped with automatic weapons have taken up a position near a highway linking Moscow with southern Russia, according to photos published by the Russian business newspaper Vedomosti Saturday."

UPDATE: CNN now reports Prigozhin "says he is turning his forces around from a march toward Moscow shortly after the Belarusian government claimed President Alexander Lukashenko had reached a deal with Prigozhin to halt the march."
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.

Communications

An AT&T-Backed Cellular Satellite Company Sent a 4G LTE Signal From Space 11

According to AST SpaceMobile, the company managed to successfully transmit a 4G LTE signal from space that was picked up by "everyday, off-the-shelf smartphones." Next, AST will try and transmit a 5G connection via its BlueWalker 3 (BW3) satellite. The Verge reports: Testing was conducted in Hawaii on AT&T's spectrum using Nokia RAN technology, and the signal, which was beamed from AST's satellite in low Earth orbit, reached speeds of up to 10.3Mbps. That's fast enough for some video streaming, general internet use, and more ordinary cell phone usage. AST's testing followed a recent April test by the same company, where it was able to route an audio call between a Samsung Galaxy S22 in Texas to an iPhone in Japan via satellite.

The BW3 is a massive commercial communication array at 693 square feet -- about the size of a two- or three-car garage -- and the largest ever deployed in low Earth orbit, says AST's release. It operates using the same 3GPP standard found in ground-based cell networks. The achievement is "an important step toward AST SpaceMobile's goal of bringing broadband services to parts of the world where cellular coverage is either unreliable or simply does not exist today," according to AST's chairman and CEO, Abel Avellan, who said this would allow users to text and call, browse the internet, download files, and even stream video using a signal beamed from space.
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.

Bitcoin

Mastercard Submits Fresh Trademark Application For Crypto Tech (crypto.news) 18

According to a recently discovered patent application, Mastercard plans to develop software optimized for bitcoin and blockchain transactions. The second-largest payment-processing corporation also aims to facilitate crypto-based transactions by reducing connections between virtual asset service providers. Crypto News reports: The trademark application is a fascinating window into Mastercard's plans for the future of digital currency. Details have been revealed about creating a downloadable application programming interface (API) designed to verify transactions inside blockchain networks and ease the handling or trading of cryptocurrency. By standardizing this API software, communication between VASPs may be streamlined and crypto transactions easier. Mastercard wants to set up a platform for financial institutions to exchange customer information to verify compliance. This new step is significant for Mastercard's fast-growing presence in the cryptocurrency sector. The corporation announced its intention to offer a limited number of cryptocurrencies on its network in February 2021.
Microsoft

Microsoft Says Early June Disruptions To Outlook, Cloud Platform, Were Cyberattacks (apnews.com) 25

An anonymous reader shares a report: In early June, sporadic but serious service disruptions plagued Microsoft's flagship office suite -- including the Outlook email and OneDrive file-sharing apps -- and cloud computing platform. A shadowy hacktivist group claimed responsibility, saying it flooded the sites with junk traffic in distributed denial-of-service attacks. Initially reticent to name the cause, Microsoft has now disclosed that DDoS attacks by the murky upstart were indeed to blame.

But the software giant has offered few details -- and did not immediately comment on how many customers were affected and whether the impact was global. A spokeswoman confirmed that the group that calls itself Anonymous Sudan was behind the attacks. It claimed responsibility on its Telegram social media channel at the time. Some security researchers believe the group to be Russian. Microsoft's explanation in a blog post Friday evening followed a request by The Associated Press two days earlier. Slim on details, the post said the attacks "temporarily impacted availability" of some services. It said the attackers were focused on "disruption and publicity" and likely used rented cloud infrastructure and virtual private networks to bombard Microsoft servers from so-called botnets of zombie computers around the globe.

AI

A New Approach to Computation Reimagines Artificial Intelligence: Hyperdimensional Computing (quantamagazine.org) 43

Quanta magazine thinks there's a better alternative to the artificial neural networks (or ANNs) powering AI systems. (Alternate URL) For one, ANNs are "super power-hungry," said Cornelia Fermüller, a computer scientist at the University of Maryland. "And the other issue is [their] lack of transparency." Such systems are so complicated that no one truly understands what they're doing, or why they work so well. This, in turn, makes it almost impossible to get them to reason by analogy, which is what humans do — using symbols for objects, ideas and the relationships between them....

Bruno Olshausen, a neuroscientist at the University of California, Berkeley, and others argue that information in the brain is represented by the activity of numerous neurons... This is the starting point for a radically different approach to computation known as hyperdimensional computing. The key is that each piece of information, such as the notion of a car, or its make, model or color, or all of it together, is represented as a single entity: a hyperdimensional vector. A vector is simply an ordered array of numbers. A 3D vector, for example, comprises three numbers: the x, y and z coordinates of a point in 3D space. A hyperdimensional vector, or hypervector, could be an array of 10,000 numbers, say, representing a point in 10,000-dimensional space. These mathematical objects and the algebra to manipulate them are flexible and powerful enough to take modern computing beyond some of its current limitations and foster a new approach to artificial intelligence...

Hyperdimensional computing tolerates errors better, because even if a hypervector suffers significant numbers of random bit flips, it is still close to the original vector. This implies that any reasoning using these vectors is not meaningfully impacted in the face of errors. The team of Xun Jiao, a computer scientist at Villanova University, has shown that these systems are at least 10 times more tolerant of hardware faults than traditional ANNs, which themselves are orders of magnitude more resilient than traditional computing architectures...

All of these benefits over traditional computing suggest that hyperdimensional computing is well suited for a new generation of extremely sturdy, low-power hardware. It's also compatible with "in-memory computing systems," which perform the computing on the same hardware that stores data (unlike existing von Neumann computers that inefficiently shuttle data between memory and the central processing unit). Some of these new devices can be analog, operating at very low voltages, making them energy-efficient but also prone to random noise.

Thanks to Slashdot reader ZipNada for sharing the article.
Encryption

The US Navy, NATO, and NASA Are Using a Shady Chinese Company's Encryption Chips (wired.com) 45

New submitter ole_timer shares a report from Wired: TikTok to Huawei routers to DJI drones, rising tensions between China and the US have made Americans -- and the US government -- increasingly wary of Chinese-owned technologies. But thanks to the complexity of the hardware supply chain, encryption chips sold by the subsidiary of a company specifically flagged in warnings from the US Department of Commerce for its ties to the Chinese military have found their way into the storage hardware of military and intelligence networks across the West. In July of 2021, the Commerce Department's Bureau of Industry and Security added the Hangzhou, China-based encryption chip manufacturer Hualan Microelectronics, also known as Sage Microelectronics, to its so-called "Entity List," a vaguely named trade restrictions list that highlights companies "acting contrary to the foreign policy interests of the United States." Specifically, the bureau noted that Hualan had been added to the list for "acquiring and ... attempting to acquire US-origin items in support of military modernization for [China's] People's Liberation Army."

Yet nearly two years later, Hualan -- and in particular its subsidiary known as Initio, a company originally headquartered in Taiwan that it acquired in 2016 -- still supplies encryption microcontroller chips to Western manufacturers of encrypted hard drives, including several that list as customers on their websites Western governments' aerospace, military, and intelligence agencies: NASA, NATO, and the US and UK militaries. Federal procurement records show that US government agencies from the Federal Aviation Administration to the Drug Enforcement Administration to the US Navy have bought encrypted hard drives that use the chips, too. The disconnect between the Commerce Department's warnings and Western government customers means that chips sold by Hualan's subsidiary have ended up deep inside sensitive Western information networks, perhaps due to the ambiguity of their Initio branding and its Taiwanese origin prior to 2016. The chip vendor's Chinese ownership has raised fears among security researchers and China-focused national security analysts that they could have a hidden backdoor that would allow China's government to stealthily decrypt Western agencies' secrets. And while no such backdoor has been found, security researchers warn that if one did exist, it would be virtually impossible to detect it.

"If a company is on the Entity List with a specific warning like this one, it's because the US government says this company is actively supporting another country's military development," says Dakota Cary, a China-focused research fellow at the Atlantic Council, a Washington, DC-based think tank. "It's saying you should not be purchasing from them, not just because the money you're spending is going to a company that will use those proceeds in the furtherance of another country's military objectives, but because you can't trust the product." [...] The mere fact that so many Western government agencies are buying products that include chips sold by the subsidiary of a company on the Commerce Department's trade restrictions list points to the complexities of navigating the computing hardware supply chain, says the Atlantic Council's Cary. "At minimum, it's a real oversight. Organizations that should be prioritizing this level of security are apparently not able to do so, or are making mistakes that have allowed for these products to get into their environments," he says. "It seems very significant. And it's probably not a one-off mistake."

Businesses

Wargraphs, a Gaming Startup With Only One Employee and No Outside Funding, Sells For $54 Million (techcrunch.com) 12

An anonymous reader quotes a report from TechCrunch: Wargraphs, a one-man-band startup behind a popular companion app for League of Legends called Porofessor, which helps players track and improve their playing stats, is getting acquired for up to [$54 million], half up front and half based on meeting certain earnings and growth targets. MOBA Networks, a company founded out of Sweden that buys, grows and runs online gaming communities (MOBA is short for "multiplayer online battle arena"), is buying the startup and its existing products. The plan is to expand them to more markets, in particular across Asia, and to build analytics for more titles.

I write "startup", but that might be with the loosest interpretation of the term. There is only a single employee, the mild-mannered Jean-Nicholas, and he has also entirely bootstrapped the business on his own. But that hasn't held him back. Wargraphs currently also builds analytics for Legends of Runeterra and Teamfight Tactics, but the League of Legends business has been its biggest it by far. Porofessor has had 10 million downloads of its app on Overwolf -- which is where Porofessor was built -- and more than 1.25 million daily active users if you combine traffic both from that platform and its own direct website. The company, such as it is, has been around for some 10 years, has pretty much always been profitable with revenues of 12.3 million euros in its last fiscal year.
Jean-Nicholas told TechCrunch's Ingrid Lunden that he wants to build "a game" next. "Specifically, a card game that will compete against Hearthstone, coincidentally published by Activision Blizzard," writes Lunden. "He has no plans to raise outside funding for this, but he might hire an employee or two."
United States

$930 Million in Grants Announced in Biden's Effort To Expand Internet Access (apnews.com) 58

The massive federal effort to expand internet access to every home in the U.S. took a major step forward on Friday with the announcement of $930 million in grants to shore up connections in remote parts of Alaska, rural Texas and dozens of other places where significant gaps in connectivity persist. From a report: The so-called middle mile grants, announced by the Department of Commerce, are meant to create large-scale networks that will enable retail broadband providers to link subscribers to the internet. Department officials likened the role of the middle mile -- the midsection of the infrastructure necessary to enable internet access, composed of high-capacity fiber lines carrying huge amounts of data at very high speeds -- to how the interstate highway system forged connections between communities. "These networks are the workhorses carrying large amounts of data over very long distances," said Mitch Landrieu, the White House's infrastructure coordinator, in a media Zoom call. "They're the ones that are bridging the gap between the larger networks and the last mile connections, from tribal lands to underserved rural and remote areas to essential institutions like hospitals, schools, libraries and major businesses."

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