Cloud

Microsoft Asks Google, Oracle To Help Crimp Amazon's US Government Cloud Leadership (wsj.com) 35

Microsoft is rallying other big-name cloud-computing providers such as Alphabet's Google and Oracle to press the U.S. government into spreading its spending on such services more widely, taking aim at Amazon's dominance in such contracts. From a report: The software giant has issued talking points to other cloud companies aimed at jointly lobbying Washington to require major government projects to use more than one cloud service, according to people familiar with the effort and a document viewed by The Wall Street Journal. Microsoft also approached VMware, Dell, IBM and HP said the people familiar with the effort. It hasn't yet asked Amazon to join the loose alliance, the people said.

Amazon dominates the cloud-infrastructure industry with a 39% share of the 2021 global market ahead of Microsoft at No. 2 with a 21% share, according to research firm Gartner Inc. Amazon looms even larger in the business of selling cloud services to governments. Amazon's cloud had a 47% share of the 2021 U.S. and Canada public-sector market orders, ahead of 28% for Microsoft, according to Gartner. The National Security Agency last year picked Amazon as the sole vendor for a cloud contract that could be worth potentially as much as $10 billion over the next decade, renewing an existing business relationship.

Businesses

Microsoft President Sees 'New Era' of Stagnating Labor Pool (reuters.com) 95

U.S. companies are facing a "new era" in which fewer people are entering the workforce and pressure to pay higher salaries may become permanent, Microsoft's President Brad Smith told Reuters in an interview. From a report: At the software maker's Redmond, Washington, headquarters, Smith highlighted one source of what he called today's "greater economic turbulence." In his office, he walked over to a wall-sized touchscreen device and pulled up a series of charts, showing how population growth has tumbled in the United States, Europe, China and Japan. The trend of around 5 million people expanding the U.S. working age population every five years since 1950 has shifted, starting in the period between 2016 and 2020 when growth slowed to 2 million, and is now slowing further, said Smith late last week, citing United Nations data. Major markets overseas have seen outright labor force declines. "That helps explain part of why you can have low growth and a labor shortage at the height at the same time. There just aren't as many people entering the workforce," said Smith, who oversees the nearly $2 trillion company selling cloud-computing services to major businesses.
Businesses

Amazon Being Investigated in UK for Practices Which May Give Customers 'Worse Deal' (sky.com) 10

Amazon is being investigated by Britain's antitrust watchdog over concerns that some of its practices in the UK may be anticompetitive and result in a worse deal for shoppers. From a report: The Competition and Markets Authority (CMA) will look at whether Amazon is distorting competition by giving an unfair advantage to its own retail business or sellers that use its services, compared with other third-party sellers in the Amazon UK Marketplace. The investigation will look at how the tech giant is using third-party seller data and how it decides the criteria for selling under the Prime label.

The CMA will also scrutinise how Amazon selects the preferred choice in the "Buy Box", which is displayed prominently on Amazon's product pages and provides customers with one-click options to "Buy Now" or "Add to Basket" from a specific seller. Sarah Cardell, general counsel at the CMA, said: "Millions of people across the UK rely on Amazon's services for fast delivery of all types of products at the click of a button."

Businesses

Fintechs Face Reckoning as Easy Money Dries Up (ft.com) 16

Valuations have collapsed even faster than they climbed, making fresh funding hard to come by. From a report: As a wave of fintechs rode successive funding rounds to ever-higher valuations over the past five years, Swedish buy now, pay later company Klarna declared its ambition to become the Ryanair, Tesla and Amazon of the sector. But now as central banks raise rates in a fight against surging inflation, Klarna is trying to raise fresh cash at less than half its peak $46bn valuation and fintechs are having to come to terms with a world where expansion can no longer be fuelled by cheap money and business models must be demonstrated by profits. A record amount of investment poured into fintech companies in 2021, but many now struggle to raise fresh funds and are discussing selling themselves or accepting lower valuations to stay afloat, according to investors, analysts and executives in the industry.

On Thursday, payments services provider SumUp raised cash at a valuation of $8.5bn -- significantly below the $21bn valuation mooted earlier this year. And as belts tighten, a fintech's chances of survival may be measured by the amount of cash sitting on its balance sheet. "You are in panic mode if your runway is less than a year," said Erik Podzuweit, founder and co-chief executive officer of German investment app Scalable Capital. Venture capital firms more than doubled their investments in the sector last year to $134bn, helping fintech valuations outperform any other tech subsector, according to Crunchbase data. Funding peaked in the second quarter of 2021 as investors such as Accel, Sequoia Capital, SoftBank and Berkshire Hathaway backed groups including Brazilian digital lender Nubank, German broker Trade Republic and Amsterdam-based payments company Mollie. Financial services companies accounted for roughly $1 out of every $5 in venture capital investment last year.

But now public fintech valuations have collapsed even faster than they climbed as funding slowed sharply in the first quarter. Fintech valuations have had a steeper decline than any other technology sector, according to a recent report by Andreessen Horowitz partners, which cited data from Capital IQ. Valuations fell from 25 times forward revenue in October of 2021 to four times in May. Fintech fundraising in the most recent quarter dropped 21 per cent to $28.8bn from the record high of $36.6bn reached in the second quarter of last year, according to CB Insights.

Google

Google Says It's Time for Longtime Small-Business Users To Pay Up (nytimes.com) 135

Google is charging some small businesses for email and other apps after more than a decade of free use. Business owners say Google is being callous. The New York Times: When Google told some small businesses in January that they would no longer be able to use a customized email service and other workplace apps for free, it felt like a broken promise for Richard J. Dalton Jr., a longtime user who operates a scholastic test-prep company in Vancouver, British Columbia. "They're basically strong-arming us to switch to something paid after they got us hooked on this free service," said Mr. Dalton, who first set up a Google work email for his business, Your Score Booster, in 2008. Google said the longtime users of what it calls its G Suite legacy free edition, which includes email and apps like Docs and Calendar, had to start paying a monthly charge, usually around $6 for each business email address. Businesses that do not voluntarily switch to a paid service by June 27 will be automatically moved to one. If they don't pay by Aug. 1, their accounts will be suspended.

While the cost of the paid service is more of an annoyance than a hard financial hit, small-business owners affected by the change say they have been disappointed by the ham-handed way that Google has dealt with the process. They can't help but feel that a giant company with billions of dollars in profits is squeezing little guys -- some of the first businesses to use Google's apps for work -- for just a bit of money. "It struck me as needlessly petty," said Patrick Gant, the owner of Think It Creative, a marketing consultancy in Ottawa. "It's hard to feel sorry for someone who received something for free for a long time and now are being told that they need to pay for it. But there was a promise that was made. That's what compelled me to make the decision to go with Google versus other alternatives."

Google's decision to charge organizations that have used its apps for free is another example of its search for ways to get more money out of its existing business, similar to how it has sometimes put four ads atop search results instead of three and has jammed more commercials into YouTube videos. In recent years, Google has more aggressively pushed into selling software subscriptions to businesses and competed more directly with Microsoft, whose Word and Excel programs rule the market. After a number of the longtime users complained about the change to a paid service, an initial May 1 deadline was delayed. Google also said people using old accounts for personal rather than business reasons could continue to do so for free. But some business owners said that as they mulled whether to pay Google or abandon its services, they struggled to get in touch with customer support.

Privacy

Rejecting Data Demands, ExpressVPN Removes VPN Servers In India (indianexpress.com) 29

ExpressVPN has removed its servers from India, becoming the first major virtual private network (VPN) provider to do so in the aftermath of the recent cybersecurity rules introduced by the country's cybersecurity agency. The rules require VPN providers to store user data for a period of five years. ExpressVPN said it "refuses to participate in the Indian government's attempts to limit internet freedom." The India Express reports: In a blog post, the British Virgin Island-based company said that with the introduction of the new cybersecurity rules by the Indian Computer Emergency Response Team (CERT-In), it has made a "very straightforward decision to remove our Indian-based VPN servers." While ExpressVPN is the first to pull its services from India, other VPN providers like NordVPN have also taken a similar stance.

The guidelines, released by CERT-In on April 26, asked VPN service providers along with data centers and cloud service providers, to store information such as names, e-mail IDs, contact numbers, and IP addresses (among other things) of their customers for a period of five years. The government said it wants these details to fight cybercrime, but the industry argues that privacy is the main selling points of VPN services, and such a move would be in breach of the privacy cover provided by VPN platforms.

ExpressVPN described the cybersecurity rules as "broad" and "overreaching." "The law is also overreaching and so broad as to open up the window for potential abuse. We believe the damage done by potential misuse of this kind of law far outweighs any benefit that lawmakers claim would come from it," ExpressVPN said. It added that while CERT-In's rules are intended to fight cybercrime, they are "incompatible with the purpose of VPNs, which are designed to keep users' online activity private." Indian users of ExpressVPN will still be able to use its service via "virtual" India servers located in Singapore and the UK. "We will never collect logs of user activity, including no logging of browsing history, traffic destination, data content, or DNS queries. We also never store connection logs, meaning no logs of IP addresses, outgoing VPN IP addresses, connection timestamps, or session durations," the company said.

Facebook

Zuckerberg's Metaverse To Lose 'Significant' Money in Near Term (bloomberg.com) 67

Mark Zuckerberg said he plans to invest heavily in his company's metaverse ambitions and that will mean losing "significant" amounts of money on the project in the next three to five years. From a report: The metaverse, an immersive digital world, will eventually make money from a creator economy, as people build businesses selling virtual goods and services, the Meta Platforms chief executive officer said, responding to a question about return on investment at the company's annual shareholder meeting Wednesday. "We want to get the hardware to be as affordable as possible for everyone, and make sure the digital economy grows," Zuckerberg said.
Advertising

Researchers Find Amazon Uses Alexa Voice Data To Target You With Ads (theverge.com) 36

A report released last week contends that Amazon uses voice data from its Echo devices to serve targeted ads on its own platforms and the web. The Verge reports: he report, produced by researchers affiliated with the University of Washington, UC Davis, UC Irvine, and Northeastern University, said the ways Amazon does this is inconsistent with its privacy policies. Titled, "Your Echos are Heard: Tracking, Profiling, and Ad Targeting in the Amazon Smart Speaker Ecosystem," the report concludes that Amazon and third parties (including advertising and tracking services) collect data from your interactions with Alexa through Echo smart speakers and share it with as many as 41 advertising partners. That data is then used to "infer user interests" and "serve targeted ads on-platform (Echo devices) as well as off-platform (web)." It also concludes that this type of data is in hot demand, leading to "30X higher ad bids from advertisers."

Amazon confirmed to The Verge that it does use voice data from Alexa interactions to inform relevant ads shown on Amazon or other sites where Amazon places ads. "Similar to what you'd experience if you made a purchase on Amazon.com or requested a song through Amazon Music, if you ask Alexa to order paper towels or to play a song on Amazon Music, the record of that purchase or song play may inform relevant ads shown on Amazon or other sites where Amazon places ads." Amazon spokesperson Lauren Raemhild said in an email.

The company also confirmed there are targeted ads on its smart speakers. "Customers may receive interest-based ads when they use ad-supported premium content -- like music, radio or news streams," said Raemhild, pointing out that this is the same experience if they engaged with that content on other channels. She went on to say that Amazon does not share voice recordings with developers. "Developers get the information necessary to fulfill your requests within their skills, such as answers when you play a trivia skill, or the name of the song you want to play," she said. "We do not share our customers' personal information to third-party skills without the customer's consent." Amazon allows Alexa users to opt out of ad targeting as well (see sidebar).
"Many of the conclusions in this research are based on inaccurate inferences or speculation by the authors, and do not accurately reflect how Alexa works," added Raemhild. "We are not in the business of selling our customers' personal information and we do not share Alexa requests with advertising networks."
Social Networks

Ukraine's War Effort Gains an Unlikely Source of Funding: Memes (indianexpress.com) 24

The New York Times reports: Images such as Ukrainian tractors towing away a disabled Russian tank and helicopter, although unverified, have not only helped fight Russian disinformation, but also helped support Ukrainian charities and even the Ukrainian military. The merchandise sales they have generated in the United States and elsewhere are surprising given that many people buying the T-shirts, stickers, coffee mugs and chocolate bars would never have thought about the Eastern European country before the conflict.
One example? Toronto-based Christian Borys, who decided to launch a site selling stickers of the Virgin Mary hoisting an antitank missile (adapted from a painting by the American artist Chris Shaw.) In eight weeks Borys' "Saint Javelin" site "has raised so far almost $1.5 million to assist the Ukrainian charity Help Us Help, which has branched into multiple services, and to provide protective equipment for journalists covering the war, he said." Mr. Borys, who had worked for the e-commerce platform Shopify before turning to journalism, said he created a website in half an hour, hoping to raise money to send to a charity for Ukrainian orphans. That night, he made 88 Canadian dollars in sales. By the time he added T-shirts at the end of February, the threat of war had turned into a full-scale invasion, and he said sales grew to 170,000 Canadian dollars a day — most coming from the United States. "The internet speaks in memes and it just became this crazy, viral sensation," he said. "I think it's because people were looking for a symbol of support, a way to support Ukraine, because they saw the whole injustice of everything...."

Three weeks ago, Mr. Borys, a Canadian of Ukrainian Polish origin, turned Saint Javelin from an all-volunteer effort to a full-time staff of four to keep up with demand. His website has branched out from the Virgin Mary to other saints: Saint Carl Gustaf wears a gas mask, while "Saint Olha, the Warrior Queen of Kyiv" wears a crown and hoists a bazooka over her camouflaged shoulders. "People on Instagram demand we make things basically," Mr. Borys said. "We get messages from people in Spain who say, 'Hey, we just shipped the C-90,' a shoulder-fired rocket propelled grenade launcher," he said. "And they'll say, 'Hey we want a saint for Spain' or a saint specific to that type of system."

Privacy

Apple's Privacy Rules Leave Its Engineers in the Dark (theinformation.com) 57

Privacy is one of the selling points of Apple products. But for employees who develop these products, it can be a pain. The Information: Apple doesn't collect a lot of customer data from its services, including Apple Maps, the Siri voice assistant and its paid video-streaming service, according to more than a dozen former employees. And the customer data it does collect from products like the App Store and Apple Music aren't widely accessible to employees who work on those and other products, these people said. That makes it difficult for Apple to mimic popular features developed by its competitors, which collect more data and have fewer restrictions on employee access to such information, they said.

Look at Apple TV+. The paid video-streaming service, unlike its bigger rivals, doesn't collect demographic info about customers or a history of what they have watched, according to a person with direct knowledge of the situation at Apple. That means Apple TV+ employees can't analyze how customers move from one piece of content to another, making it next to impossible to recommend more videos to them based on their preferences -- a contrast to Netflix, Disney and other streaming services, which use such data to get customers to watch more videos. [...] From Apple's app recommendations to new features for Siri and the company's Goldman Sachs-backed credit card, Apple engineers and data scientists often have to find creative or costly ways to make up for the lack of access to data. In some cases, as with Apple TV+, employees simply have to accept limitations on what they can do.

Facebook

Meta is Making 'Zuck Bucks' (theverge.com) 41

Meta may have given up on its Diem cryptocurrency, but the company is still exploring finance products, according to a new Financial Times report. The Verge: The parent company of Facebook and Instagram reportedly has a few irons in the fire, including virtual currency employees have apparently taken to calling "Zuck Bucks." Zuck Bucks, seemingly named for Meta founder, chairman, and CEO Mark Zuckerberg, are "unlikely" to be a cryptocurrency. "Instead, Meta is leaning towards introducing in-app tokens that would be centrally controlled by the company, similar to those used in gaming apps such as the Robux currency in popular children's game Roblox," according to the FT. Roblox has built a huge business selling Robux, and Meta could try to emulate some of that success on its own platforms. Meta hasn't totally distanced itself from blockchain products, as the company is also looking into posting and sharing NFTs on Facebook. The FT says the company plans to launch a pilot for doing just that in mid-May, according to a memo, and soon after, Meta will test allowing "membership of Facebook groups based on NFT ownership and another for minting" NFTs. The FT previously reported on some of Meta's NFT plans for Facebook and Instagram in January, and Zuckerberg announced in March that NFTs would be coming to Instagram.
Crime

Germany Shuts Down Servers For Russian Darknet Marketplace Hydra (theverge.com) 9

German authorities shut down the server infrastructure for the Russian darknet marketplace Hydra, seizing ~$25.2 million worth of Bitcoin in the process, Germany's Federal Crime Police Office (BKA) announced on Tuesday. From a report: Hydra is a large marketplace on the dark web that serves as a hub for drugs, stolen credit card information, counterfeit bills, fake documents, and other illegal goods or services. The market primarily caters to criminals in Russia and surrounding nations. "Treasuremen," or dealers connected with the site, push drugs throughout the region by hiding them in geo-tagged pickup locations. With the shutdown of the German-based server, authorities are now launching an investigation into the "unknown operators and administrators" of Hydra, whom they suspect of selling narcotics and engaging in money laundering. German authorities say they have been investigating the marketplace with the help of the US since August 2021. The BKA told The Verge that no arrests have been made as of yet.
Security

Big Web Security Firms Ditch Russia, Leaving Internet Users Open To More Kremlin Snooping (forbes.com) 16

Ordinary Russians face another major blow to their everyday lives due to the backlash to President Vladimir Putin's invasion of Ukraine. On the same day, two major web-security companies have decided to quit selling to them, making Russians' internet use more vulnerable to Kremlin snooping, hacking and other cybercrimes. From a report: The departure of the two companies, Avast, a $6 billion antivirus provider based in the Czech Republic, and Utah-based website-certification firm DigiCert, will further isolate the country of 145 million people. "We are horrified at Russia's aggression against Ukraine, where the lives and livelihoods of innocent people are at severe risk, and where all freedoms have come under attack," Avast CEO Ondrej Vlcek wrote on Thursday. Vlcek said the company was including Belarus in the withdrawal of services, and was continuing to pay the full salaries of employees in Russia and Ukraine, many of whom it was helping to relocate. "We do not take this decision lightly," Vlcek wrote. "We've offered our products in Russia for nearly 20 years and users in this country are an important part of our global community." While Avast joins other antivirus companies, including NortonLifeLock and ESET, in halting sales, Russians will still be able to get antivirus protection from Moscow-based Kaspersky and other providers within the country. The departure of DigiCert could prove more significant. DigiCert is one of the world's biggest providers of website certificates, which aim to prove that when a person visits a site it's owned by the entity they expected.
Piracy

Russia Mulls Legalizing Software Piracy As It's Cut Off From Western Tech (arstechnica.com) 131

With sanctions against Russia starting to bite, the Kremlin is mulling ways to keep businesses and the government running. The latest is a creative twist on state asset seizures, only instead of the government taking over an oil refinery, for example, Russia is considering legalizing software piracy. Ars Technica reports: Russian law already allows for the government to authorize -- "without consent of the patent holder" -- the use of any intellectual property "in case of emergency related to ensuring the defense and security of the state." The government hasn't taken that step yet, but it may soon, according to a report from Russian business newspaper Kommersant, spotted and translated by Kyle Mitchell, an attorney who specializes in technology law. It's yet another sign of a Cyber Curtain that's increasingly separating Russia from the West.

The plan would create "a compulsory licensing mechanism for software, databases, and technology for integrated microcircuits," the Kommersant said. It would only apply to companies from countries that have imposed sanctions. While the article doesn't name names, many large Western firms -- some of which would be likely targets -- have drastically scaled back business in Russia. So far, Microsoft has suspended sales of new products and services in Russia, Apple has stopped selling devices, and Samsung has stopped selling both devices and chips. Presumably, any move by the Kremlin to "seize" IP would exempt Chinese companies, which are reportedly considering how to press their advantage. Smartphone-makers Xiaomi and Honor stand to gain, as do Chinese automakers. Still, any gains aren't guaranteed since doing business in Russia has become riddled with problems, spanning everything from logistics to finance.

The Internet

FCC Bans Deals That Block Competition In Apartments (arstechnica.com) 59

The Federal Communications Commission has voted to ban the exclusive revenue-sharing deals between landlords and Internet service providers that prevent broadband competition in apartment buildings and other multi-tenant environments. The new ban and other rule changes were adopted in a 4-0 vote announced yesterday. Ars Technica reports: Although the FCC "has long banned Internet service providers from entering into sweetheart deals with landlords that guarantee they are the only provider in the building," evidence submitted to the commission "made it clear that our existing rules are not doing enough and that we can do more to pry open the door for providers who want to offer competitive service in apartment buildings," FCC Chairwoman Jessica Rosenworcel said in her statement on the vote. The broadband industry has sidestepped rules that already exist with "a complex web of agreements between incumbent service providers and landlords that keep out competitors and undermine choice," she said.

With the new rules, "we ban exclusive revenue sharing agreements, where the provider agrees with the building that only it and no other provider can give the building owner a cut of the revenue from the building. We also ban graduated revenue sharing agreements, which increase the percentage of revenue that the broadband provider directs to the landlord as the number of tenants served by the provider go up," Rosenworcel said. Rosenworcel had circulated the proposal to commissioners in late January. The new prohibitions on graduated and exclusive revenue-sharing agreements apply retroactively. "The rules we adopt thus prohibit providers from (1) executing new graduated or exclusive revenue sharing agreements and (2) enforcing existing graduated or exclusive revenue sharing agreements on a going forward basis," the FCC said.

Exclusive marketing agreements are still allowed, but the FCC is requiring broadband providers to disclose those agreements to tenants. "Such disclosure must be included on all written marketing material directed at tenants or prospective tenants of an MTE [multiple tenant environment] subject to the arrangement and must explain in clear, conspicuous, legible, and visible language that the provider has the right to exclusively market its communications services to tenants in the MTE, that such a right does not suggest that the provider is the only entity that can provide communications services to tenants in the MTE, and that service from an alternative provider may be available," the FCC order said. The FCC vote also closes a loophole that ISPs used to enter into exclusive wiring deals with landlords. "We clarify that sale-and-leaseback arrangements violate our existing rules that regulate cable wiring inside buildings," Rosenworcel said. "Since the 1990s, we have had rules that allow buildings and tenants to exercise choice about how to use the wiring in the building when they are switching cable providers, but some companies have circumvented these rules by selling the wiring to the building and leasing it back on an exclusive basis. We put an end to that practice today."

AI

The Unnerving Rise of Video Games that Spy on You (wired.com) 44

Players generate a wealth of revealing psychological data -- and some companies are soaking it up. From a report: While there are no numbers on how many video game companies are surveilling their players in-game (although, as a recent article suggests, large publishers and developers like Epic, EA, and Activision explicitly state they capture user data in their license agreements), a new industry of firms selling middleware "data analytics" tools, often used by game developers, has sprung up. These data analytics tools promise to make users more amenable to continued consumption through the use of data analysis at scale.

Such analytics, once available only to the largest video game studios -- which could hire data scientists to capture, clean, and analyze the data, and software engineers to develop in-house analytics tools -- are now commonplace across the entire industry, pitched as "accessible" tools that provide a competitive edge in a crowded marketplace by companies like Unity, GameAnalytics, or Amazon Web Services. (Although, as a recent study shows, the extent to which these tools are truly "accessible" is questionable, requiring technical expertise and time to implement.) As demand for data-driven insight has grown, so have the range of different services -- dozens of tools in the past several years alone, providing game developers with different forms of insight. One tool -- essentially Uber for playtesting -- allows companies to outsource quality assurance testing, and provides data-driven insight into the results. Another supposedly uses AI to understand player value and maximize retention (and spending, with a focus on high-spenders).

Developers might use data from these middleware companies to further refine their game (players might be getting overly frustrated and dying at a particular point, indicating the game might be too difficult) or their monetization strategies (prompting in-app purchases -- such as extra lives -- at such a point of difficulty). But our data is not just valuable to video game companies in fine-tuning design. Increasingly, video game companies exploit this data to capitalize user attention through targeted advertisements. As a 2019 eMarketer report suggests, the value of video games as a medium for advertising is not just in access to large-scale audience data (such as the Unity ad network's claim to billions of users), but through ad formats such as playable and rewarded advertisements -- that is, access to audiences more likely to pay attention to an ad.

Google

Google Hires PayPal Vet to Reset Strategy After Its Banking Retreat (bloomberg.com) 23

Alphabet's Google has hired former PayPal executive Arnold Goldberg to run its payments division and set a new course for the business after it scrapped a push into banking. Bloomberg reports: The move is part of a broader strategy to team up with a wider range of financial services, including cryptocurrencies, said Bill Ready, Google's president of commerce. The business, known for the Google Pay system and mobile wallet, has largely avoided the crypto industry. The changes follow a major turnabout in October. Google had spent years planning a digital checking and savings service, lining up 11 banking partners for the launch. But that month the company nixed the proposed offering, called Plex. Instead, Google wants to become the connective tissue for the entire consumer finance industry, not just certain partners, according to Ready. "We're not a bank -- we have no intention of being a bank," Ready said in an interview. "Some past efforts, at times, would unwittingly wade into those spaces."

Tom Noyes, an industry analyst, estimated in 2020 that Google accounted for 4% of contactless payments in the U.S., calling the service "largely a failure." As part of the overhaul, Google will focus more on being a "comprehensive digital wallet" that includes digital tickets, airline passes and vaccine passports, Ready said. He didn't provide an update on the current number of Google Pay users. The company is integrating payments more tightly with Google's shopping efforts, such as a feature that shows consumer loyalty cards and personal discounts directly in search results. Google also is trying to position itself as more welcoming to merchants than Amazon. In 2020, Google eliminated fees for retailers selling on its shopping service.

Tiptoeing into crypto also could help Google entice users. Google has partnered with companies, including Coinbase and BitPay, to store crypto assets in digital cards, while still having users pay in traditional currencies. Ready said Google is looking to do more of these partnership, though the company still isn't accepting crypto for transactions. "Crypto is something we pay a lot of attention to," he said. "As user demand and merchant demand evolves, we'll evolve with it."

Bitcoin

Bank of Russia Calls for Full Ban on Crypto (coindesk.com) 104

Russia must ban cryptocurrencies, the country's central bank said in a report released Thursday. From a report: The report, "Cryptocurrencies: trends, risks, measures," was presented during an online press conference with Elizaveta Danilova, the director of the Bank of Russia's Financial Stability Department. The report says cryptocurrencies are volatile and widely used in illegal activities such as fraud. By offering an outlet for people to take their money out of the national economy, they risk undermining it and making the regulator's job of maintaining optimal monetary policies harder, the report says.

The bank, therefore, suggest Russia needs new laws and regulations that effectively ban any crypto-related activities in the country. In particular, cryptocurrency issuance and organization of its circulation in Russia must be banned. The ban should apply to exchanges, over-the-counter trading desks and peer-to-peer platforms. An existing ban on using crypto for payments should be reinforced, and punishment should be introduced for buying or selling goods, services and labor by Russian individuals and businesses, the report suggests.

The Internet

When a Decades-Old Email Provider Used by Millions Suddenly Goes Down (bluescreencomputer.com) 84

Mail2World hosts mailboxes for 2,150,000 different domains, according to its web site, offering both "free, reliable email for everyone" and a $29.99-a-year "premium" service with a terabyte of storage (instead of the free level's 25 gigabytes), an ad-free inbox, and "premium"-level support.

"We appreciate your understanding as we work to fully restore email service as soon as possible," reads their most-recent tweet — from Thursday.

Slashdot reader C4st13v4n14 is not a happy customer: Since Tuesday evening local time, I haven't been able to access my primary email account. This is an alumni email account I've had for the last 22 years that's tied to all my accounts ranging from not only social media and IOT devices, but also banking, access to health services and contact with local and countrywide government authorities.

My country is highly digitised and virtually everything from taxes to buying or selling a house, paying bills, access to health records and correspondence with hospitals and GPs, driving licences, applying for welfare, and starting a business are online. I don't even get snail mail anymore, everything is sent to a digital mailbox I can access through a browser or app with two-factor authentication. Fortunately, all access control for public-facing services is via two-factor authentication or smartcards with secure certificates for the highly sensitive stuff.

Regardless, the ordeal has been quite distressing as I was unable to find any information about the outage; a little detective work was only giving vague ERR_CONNECTION_RESET and DNS errors. My main thought was that my account had somehow been compromised and even more worryingly, there were no reports online about it. Turning to Reddit, I was able to gather that the provider, Mail2World, had suffered a ransomware attack but had been very uncommunicative about the event. In terms of news coverage, there was basically none. Only one random news site had a short article about it. During the days without access, I was painstakingly moving accounts to my Gmail address and updating contact information for the really important stuff like governmental services. This morning, I got a tip that Jesse over at BlueScreen Computer had reached out to Mail2World and has been documenting the outage.

Since then, some email has started to show up in my mobile app and I'm able to access the web portal again, but I can't help but feel like the damage has been done. This is an account that I pay an annual fee for and have trusted to work until now. I also find being kept in the dark about something so fundamental in today's world like email to be both very concerning and completely unacceptable. In that regard, I'm hoping this will bring some coverage to the event.

I would also like any input you Slashdotters have on migrating to and navigating Gmail. The interface is unfamiliar to an old-school user like me who still uses Eudora to check and save a backup of everything.

By the way, I'd should also like to point out that both POP and SMTP are handled by servers at pangia.biz, and their website has also been unreachable during this. Instead of Gmail, maybe you would recommend a different provider or service altogether? My work email is fortunately completely separate as of a couple years ago and handled by one.com as they host my website. It works, but they aren't anything special really.

It's interesting to imagine the scope of this particular outage. "Our company's growing list of customers includes prominent organizations from around the world," brags the Mail2World web site, "such as publicly-traded corporations, leading academic institutions and some of the largest and most-recognized service providers."

But long-time Slashdot reader OtisSnerd has experienced even worse: This happened with Newsguy.com's email and NNTP offerings back in early September. I had my email address with them for 25 years, and my wife's email for almost 22. It turns out that Newsguy went chapter 7. Luckily we were using pop3 with MS Outlook, so we both still have all the old email. I already had another email account elsewhere, but my wife didn't. Took days to get all her changes made.
Businesses

Venmo, PayPal and Cash App To Report Payments of $600 or More To IRS This Year (foxbusiness.com) 264

schwit1 writes: Millions of small business owners who rely on payment apps like Venmo, PayPal and Cash App could be subject to a new tax law that just took effect in January. Beginning this year, third-party payment processors will be required to report a user's business transactions to the IRS if they exceed $600 for the year. The payment apps were previously required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year. Democrats made the change in March 2021, when they passed the American Rescue Plan without any Republican votes. The new rule only applies to payments received for goods and services transactions, meaning that using Venmo or PayPal to send a loved one a gift, pay your roommate rent, or reimburse a friend for dinner will be excluded. Also excluded is anyone who receives money from selling a personal item at a loss; for example, if you purchased a couch for $300 and sold it for $250, the amount is not taxable.

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