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Tag: computer science and information technology

  • Hackers post email addresses linked to 200 million Twitter accounts, security researchers say | CNN Business

    Hackers post email addresses linked to 200 million Twitter accounts, security researchers say | CNN Business

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    CNN
     — 

    Email addresses linked to more than 200 million Twitter profiles are currently circulating on underground hacker forums, security experts say. The apparent data leak could expose the real-life identities of anonymous Twitter users and make it easier for criminals to hijack Twitter accounts, the experts warned, or even victims’ accounts on other websites.

    The trove of leaked records also includes Twitter users’ names, account handles, follower numbers and the dates the accounts were created, according to forum listings reviewed by security researchers and shared with CNN.

    “Bad actors have won the jackpot,” said Rafi Mendelsohn, a spokesman for Cyabra, a social media analysis firm focused on identifying disinformation and inauthentic online behavior. “Previously private data such as emails, handles, and creation date can be leveraged to build smarter and more sophisticated hacking, phishing and disinformation campaigns.”

    Some reports suggested the data was collected in 2021 through a bug in Twitter’s systems, a flaw the company fixed in 2022 after a separate incident in July involving 5.4 million Twitter accounts alerted the company to the vulnerability.

    Troy Hunt, a security researcher, said Thursday that his analysis of the data “found 211,524,284 unique email addresses” that had been leaked. The Washington Post earlier reported a forum listing promoting the data of 235 million accounts.

    Hunt did not immediately respond to a question from CNN asking whether the records would be added to his website, haveibeenpwned.com, which allows users to search hacked records to determine if they have been affected. CNN has not independently verified the records’ authenticity.

    Twitter didn’t immediately respond to a request for comment. Its communication team, along with roughly half of Twitter’s overall workforce, was gutted after billionaire Elon Musk completed his acquisition the company in late October. The significant staff reductions could now add to concerns about the company’s ability to respond to security threats.

    The breadth of the leaked data could allow malicious actors or repressive governments to connect anonymous Twitter handles with the real names or email addresses of their owners, potentially unmasking dissidents, journalists, activists or other at-risk users around the world, security researchers warn.

    “For those people, this is a very consequential breach,” said John Scott-Railton, a security researcher at The University of Toronto’s Citizen Lab.

    The account data could also be valuable to hackers who can use the information as part of password-reset attempts and account takeovers. The risk is particularly high for individuals who use the same account credentials on Twitter as they do for other digital services such as banks or cloud storage, researchers said, because hackers could take information gleaned from the leak to pry open user accounts elsewhere.

    Verified Twitter users caught up in the apparent leak, or users with particularly large followings, will be particularly valuable targets as a result of the leak, security experts warned, as those account holders may be especially influential celebrities or susceptible to extortion.

    To protect themselves from phishing attempts, internet users should use unique passwords for each online service and keep track of them using a digital password manager, security researchers say. They should also enable multi-factor authentication for each of their accounts, and exercise caution when opening unsolicited email or links.

    According to the cybersecurity news outlet BleepingComputer, which did claim to test the data, the latest dump appears similar to a leaked dataset advertised on hacking forums in November containing an alleged 400 million records, but slimmed down to eliminate some duplicate records. Twitter has not commented on that leak.

    Reports of the leak could expand Twitter’s already significant legal and regulatory risk.

    In December, Twitter’s main European privacy regulator, the Irish Data Protection Commission, said it is investigating the July 2022 leak as a possible violation of Europe’s signature privacy law, known as GDPR.

    Last summer, the company’s former head of security, Peiter “Mudge” Zatko, filed a whistleblower report to the US government alleging long-ignored security vulnerabilities in Twitter’s operations. Zatko claimed that Twitter’s shortcomings on security reflected a breach of Twitter’s binding commitments to the Federal Trade Commission, a serious offense. (Twitter broadly and repeatedly pushed back at Zatko’s allegations.)

    Successive incidents at Twitter have led to the company signing two consent orders with the FTC since 2011 to improve its cybersecurity posture. Violations of FTC orders can lead to fines, business restrictions and even sanctions targeting individual executives.

    In November, top Twitter officials responsible for privacy and security resigned from the company, just days after Musk closed his purchase of the platform and amid the mass layoffs that in some cases cut whole departments.

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  • IRS delays rule change for people who get paid on Venmo, Etsy, Airbnb and other apps | CNN Business

    IRS delays rule change for people who get paid on Venmo, Etsy, Airbnb and other apps | CNN Business

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    New York
    CNN
     — 

    Anyone getting paid for their goods and services through apps like Venmo, PayPal or CashApp, or platforms like Etsy and Airbnb, just got a reprieve from the IRS.

    Following concerns expressed by the tax community, the electronic transactions industry and some lawmakers, the IRS said Friday it would delay by one year the implementation of a rule change that would have resulted in a virtual paper chase of tax forms going out by January 31, 2023, to anyone using such apps for their business transactions.

    The rule change requires third-party payment platforms to issue a 1099-K to the IRS and the app user for business transaction payments if they add up to more than $600 over the course of the year. A business transaction that is taxable is defined as a payment for a good or service, including tips.

    It used to be those platforms only had to issue you a 1099-K if you engaged in more than 200 business transactions for which you received total payments of more than $20,000 in a year.

    “The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” said Acting IRS Commissioner Doug O’Donnell. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.”

    Indeed, the increase in 1099-Ks issued early next year for people’s 2022 tax returns was expected to be, in a word, “ginormous,” according to Wendy Walker, who chairs the information reporting subgroup on the Internal Revenue Service Advisory Council.

    Walker works as a solution principal for Sovos, which helps more than 30,000 business clients with tax compliance, including the issuance of all types of 1099s, of which there are at least 16 different varieties.

    Some businesses that only had to issue a couple thousand 1099-Ks under the prior rules were looking at a couple hundred thousand, she noted. “Our clients … have reported enormous increases in their potential filing obligations as result of the threshold change,” Walker said.

    Meanwhile, those receiving 1099-Ks for the first time will have to figure out what portion of the amount reported on the form is actually taxable versus what portion represents payments that may be deductible business expenses, such as a fee paid to the payment platform or a credit issued to the business, Walker said.

    “People are just not going to understand how to take that gross amount and then work off the deductions to get to their taxable amount.”

    The move was welcomed by those representing third-party payment platforms.

    “Given the potential confusion the reporting requirement would cause, we applaud the delay, ” said Scott Talbott, spokesman for the Electronic Transactions Association. “The $600 reporting requirement is not worth the problems it would cause. ETA will keep working to increase the threshold to a realistic amount.”

    How does ETA define realistic? A threshold that falls between $10,000 and $20,000, Talbott said. “ETA supports a reporting threshold that ties into regular businesses and not consumers occasionally selling a handbag or a bike online.”

    The new rule doesn’t impose any additional taxes on anyone. Nor does it change your obligation as a taxpayer to always report to the IRS all of your taxable income from your business activities.

    But the 1099-K reporting will make it harder for someone to evade the taxes they owe by underreporting their business income.

    The rule also does not apply to personal transactions you conduct on an electronic payment platform. For example, if a friend sends you money through Venmo to help pay for a dinner out or your mother sends you some spending money.

    Lastly, the 1099-K reporting rule does not apply to any transactions made through Zelle. That’s because Zelle is a payments clearinghouse that connects the payer’s bank account directly to the receiver’s bank account. “Zelle facilitates messaging between financial institutions, but does not hold accounts or handle settlement of funds,” the company said in a statement earlier this year.

    But the IRS may still get reporting on at least some of your business transactions on Zelle, Walker said.

    If there is a business-to-business payment over the Zelle network, the business that makes the payment must provide the receiving business and the IRS with either a 1099-NEC for non-employee compensation or a 1099-MISC for other expenses, she explained.

    Like the 1099-K, those other forms also provide information to the IRS that will make it harder for businesses to understate their income in a tax year.

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  • Hackers stole data from multiple electric utilities in recent ransomware attack | CNN Politics

    Hackers stole data from multiple electric utilities in recent ransomware attack | CNN Politics

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    CNN
     — 

    Hackers stole data belonging to multiple electric utilities in an October ransomware attack on a US government contractor that handles critical infrastructure projects across the country, according to a memo describing the hack obtained by CNN.

    Federal officials have closely monitored the incident for any potential broader impact on the US power sector while private investigators have combed the dark web for the stolen data, according to the memo sent this month to power company executives by the North American grid regulator’s cyberthreat sharing center.

    The previously unreported incident is a window into how ransomware attacks on critical US companies are handled behind the scenes as lawyers and federal investigators quietly spring into action to determine the extent of the damage.

    The ransomware attack hit Chicago-based Sargent & Lundy, an engineering firm that has designed more than 900 power stations and thousands of miles of power systems and that holds sensitive data on those projects.

    The firm also handles nuclear security issues, working with the departments of Defense, Energy and other agencies “to strengthen nuclear deterrence” and keep weapons of mass destruction out of terrorists’ hands, according to its website.

    Two people familiar with the investigation of the Sargent & Lundy hack told CNN that the incident was contained and remediated, and didn’t appear to have a broader impact on other power-sector firms.

    There is no sign that data stolen from Sargent & Lundy, which includes “model files” and “transmission data” the firm uses for utility projects, is on the dark web, according to the memo from the Electricity Information Sharing and Analysis Center.

    But security experts have long been concerned that schematics held by electric and nuclear power contractors could be dumped online and used for follow-on physical or cyberattacks on those facilities.

    “These are literally the configurations for your programmable logic controllers, your relays,” said longtime security consultant Patrick Miller, referring to critical electric equipment that keeps the lights on. “We’re really concerned about the data that’s in those organizations.”

    Those concerns are particularly acute following a spate of physical attacks and vandalism at electric utilities in multiple states. Tens of thousands of people lost power in Moore County, North Carolina, this month after Duke Energy substations were damaged by gunfire. On Christmas, thousands of people lost power in a Washington county after someone vandalized multiple substations there.

    “We’re fully recovered from the incident, which had minimal impact on our normal business operations,” Brenda Romero, a spokesperson for Sargent & Lundy, said in a statement to CNN. Romero said the firm “notified law enforcement” of the hack.

    Romero declined to answer further questions on the ransomware attack, including whether the hackers had tried to extort Sargent & Lundy, citing an ongoing investigation.

    The Biden administration has urged companies to share data on such hacks as US officials have tried to get a grip on the epidemic of ransomware, which has cost critical infrastructure firms many millions of dollars.

    The hackers that hit Sargent & Lundy used a strain of ransomware known as Black Basta that first surfaced early this year, according to two people familiar with the investigation. Scores of Black Basta attacks have been reported since April, according to cybersecurity firm Palo Alto Networks. The hackers steal data from their victims to give them added leverage in ransom negotiations.

    Sargent & Lundy is one of several engineering firms whose work on critical infrastructure projects cuts across different sectors of the economy. For US cybersecurity officials, this engineering work can be harder to evaluate in terms of its risk to supply chain security than a firm that only makes software.

    Federal regulations require electric utilities to maintain certain cybersecurity standards for protecting their systems from hacks. Companies that contract with those utilities, such as Sargent & Lundy, aren’t necessarily held to the same standard and are instead bound by the security requirements in the contract, experts told CNN.

    “Utilities are effectively allowed to accept as much risk as they want,” said Miller, who is CEO of Oregon-based Ampere Industrial Security, a consulting firm. “Is it perfect? No, but [the contractors] are being assessed [for their security] in some ways through the utilities.”

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  • Video gamers sue Microsoft in US court to stop Activision takeover | CNN Business

    Video gamers sue Microsoft in US court to stop Activision takeover | CNN Business

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    Reuters
     — 

    Microsoft Corp was hit on Tuesday in US court with a private consumer lawsuit claiming the technology company’s $69 billion bid to purchase “Call of Duty” maker Activision Blizzard Inc will unlawfully squelch competition in the video game industry.

    The complaint filed in federal court in California comes about two weeks after the US Federal Trade Commission filed a case with an administrative law judge seeking to stop Microsoft, owner of the Xbox console, from completing the largest-ever acquisition in the video-gaming market.

    The private lawsuit also seeks an order blocking Microsoft from acquiring Activision. It was filed on behalf of 10 video game players in California, New Mexico and New Jersey.

    The proposed acquisition would give Microsoft “far-outsized market power in the video game industry,” the complaint alleged, “with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”

    A representative for Microsoft did not immediately comment on Tuesday. After the FTC sued, Microsoft President Brad Smith said, “We have complete confidence in our case and welcome the opportunity to present our case in court.”

    In a statement, plaintiffs’ attorney Joseph Saveri in San Francisco said, “As the video game industry continues to grow and evolve, it’s critical that we protect the market from monopolistic mergers that will harm consumers in the long run.”

    Private plaintiffs can pursue antitrust claims in U.S. court, even while a related U.S. agency case is pending. The takeover, announced in January, also faces antitrust scrutiny in the European Union.

    The FTC previously said it sued to stop “Microsoft from gaining control over a leading independent game studio.” The agency said the merger would harm competition among rival gaming platforms from Nintendo Co Ltd and Sony Group Corp.

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  • Best portable chargers in 2022 | CNN Underscored

    Best portable chargers in 2022 | CNN Underscored

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    CNN
     — 

    Even when working from home, a power supply can be hard to come by, what with your computer, monitor, WiFi hub and other gadgets and gizmos and their wall chargers hogging those sparse outlets. And when you’re on the go, a solid power source is especially a necessity. The solution: a portable charger to keep your phone, tablet and more juiced to the max.

    So to help identify the best options for avoiding that dreaded “low battery” notification, we spent several weeks testing portable chargers — draining devices, charging them up and calculating capacities. Ultimately, we found three winners that each stole the show in their own way.

    Best portable charger overall

    Where the Anker PowerCore 13000 shone most was in charging capacity. It boasts 13,000mAh, which is enough to fully charge an iPhone 11 two and a half times. Plus, it has two fast-charging USB Type-A ports so you can juice a pair of devices simultaneously.

    The most portable

    CNN Underscored_best portable chargers_Belkin Pocket

    The ultraportable Belkin Power Pocket 5K is almost the exact same size as an iPhone SE, but weighs even less. And, proving the old adage “big things come in small packages” correct, it packs enough power to fully charge an iPhone 11 from its singular USB Type-A port.

    Best portable charger for iPhone

    CNN Underscored_best portable chargers_belkin boost

    The Belkin Boost Power Pocket 5K goes hand-in-hand with iPhones thanks to the inclusion of a Lightning port along with the USB Type A port. That means you can use the same cord to charge your phone and refill the battery.

    underscored anker powercore 13000

    Benjamin Levin/CNN

    Simply put, the Anker PowerCore 13000 packs a ton of value.

    You can charge a lot with this thing — and quickly. The PowerCore 13000 has enough capacity to bring an iPhone 11 to full charge two and a half times, or two Samsung Galaxy S20s from empty to more than 90%. And you won’t be sitting by idly for too long, either, as the PowerCore 13000 takes just 41 minutes to charge an iPhone 11 to 50%, tied for fastest charging in our testing.

    While the PowerCore 13000 doesn’t fully live up to its promise of 13,000mAh (we found it delivers 7918mAh), it hit a respectable 61% of what’s advertised — a percentage that put it about average among all the batteries we tested. In other words: None of the portable chargers we tested fully lived up to their claims, and the PowerCore 13000 still has more charging capacity than most others we tested. (You can read more about how we measured mAhs by scrolling down.) Plus, it’s just a few more bucks than the Belkin Pocket Power 5K for more than double the mAhs.

    The side of the battery houses three ports: dual USB Type-A ports (which are fast-charging) and a micro-USB port to charge the battery itself — allowing you to run several USB-C cables to different devices all at once. When we charged an iPhone 11 and a Nintendo Switch simultaneously, the battery barely heated up. Four LED lights alert you to the charger’s remaining battery life, with a button on the edge to turn the lights on.

    The charger’s matte plastic design feels nice to the touch and resists smudging surprisingly well. It’s about the size of a full wallet, so it’s easy to carry around. And it’s durable: The charger survived our drop tests, which included a 3-foot drop onto grass and a 1.5-foot drop onto carpet, with neither external nor internal damage. (You can read more about our durability testing below.)

    Overall, not only does the Anker PowerCore 13000 pack major mAhs, but it’s got two ports for your USB cables and is fairly small and durable.

    underscored belkin pocket 5k

    Benjamin Levin/CNN

    When we first encountered the Belkin Power Pocket 5K, it was hard to believe its size: just 5 inches long, 2.5 inches wide and a half-inch thick. There are few places this battery won’t fit, yet many devices it’ll charge.

    It was the smallest and the lightest charger we tested; you might even mistake it for the phone in your pocket. This portable charger is really the definition of a personal power bank, easily whipped out of a pocket and held alongside your mobile device.

    The charging capacity of the Power Pocket 5k is modest, but it did come closest to living up to its claimed output out of all the models we tested. While its maximum capacity is stated to be 5,000mAh, we measured it at about 3,655mAh. That’s 73% of the expected value, which is 12% better than average in our testing. While its capacity isn’t huge, it’s more than enough to bring an iPhone 11 or Samsung Galaxy S10 battery back to full life. The only significant downside we could find was the charging speed: It takes a little more than 51 minutes to charge an iPhone 11 to 50%.

    The Anker PowerCore 13000 features four battery-indicating LEDs on its side alongside a button to turn them on. Around the corner are the ports: a single USB-C input along with a micro-USB port to charge the battery with the included charging cable. Like the PowerCore 13000, the Pocket Power 5K received no superficial or internal damage during our drop testing. And you can rest assured that even if you do break it, it comes with a two-year warranty along with a generous $2,500 connected equipment warranty (which covers unlikely electrical damage to tech that was properly plugged into the Pocket Power 5K).

    The wee-as-can-be Belkin Pocket Power 5K is impressive for its size. Although the capacity isn’t huge, it’s more than enough to fulfill the needs of most personal devices and small enough to keep in your pocket everywhere you go — and a bit lighter on the wallet for those on a budget.

    underscored belkin pocket boost 5k

    Benjamin Levin/CNN

    The Belkin Boost Charge Power Pocket 5K offers a bit less capacity than the Belkin Power Pocket 5K, but it’s a match made in heaven for iPhones — and it charges faster, too.

    Along one side of the Belkin Boost Charge resides a USB Type-A port and a Lightning port (MFi-approved) to charge the battery. This is the big deal here — that’s the very same kind of port that your iPhone and iPad has. In other words, as long as you have a Lightning cable to charge your iPhone (we’re going to assume you do), you have a cable to recharge your battery, too. Consolidating cables is a big win in our book. This charger also pairs better alongside a smartphone because it’s lighter than the Anker 13000 and sports more of a rectangular shape, so it fits a bit more snug in the hand.

    The Boost Power Pocket 5K has more than enough juice to fully charge an iPhone 11. It also took a little more than 45 minutes to charge an iPhone 11 to 50%, which is faster than the Belkin Pocket Power 5K by six minutes. The capacity of the BOOST Power Pocket 5K is advertised as 5,000mAh and, during our testing, we measured about 3,415mAh. That’s nearly 70% of the advertised value, making it one of the top three batteries we tested in terms of living up to its promise (the average was about 61%).

    All in all, the Belkin Boost Charge Power Pocket 5K is a terrific personal charger for your iPhone. With both MFi certification and cable consolidation thanks to the Lightning port, it should really stand out to iPhone users.

    We ran each and every portable charger through a series of tests. We charged each battery to full, ran it dry juicing up one or several devices, calculated its capacity and compared charging speeds. At the same time, we took a look at properties like weight, size, build quality and visual design. Whether it was a chunky battery that could charge all our tech, or a slim, sleek battery with enough to fill an iPhone, we put these things through the ringer.

    Read on to see the breakdowns of all our testing categories.

    • Battery Size: We noted how many milliamp Hours (mAh) each battery promised.
    • Meets Estimation: This is where we measured how much each battery could actually provide in mAhs. To do so, we charged a variety of devices with each battery, recording how much battery life (aka what percentage) each device gained. When a device was at about 95%, but the battery was not empty, we immediately swapped it for a different device. Once a battery was empty, we calculated how many mAhs it provided in total across all the devices it charged and then divided the promised total by the recorded value. This allowed us to figure out what percentage of its promised total each battery provided. We used a 0.3M Nomad Universal Cable, plugged into a battery’s USB-A port (fast charging if available), to charge each device. The device pool we chose from for charging was: iPhone 11, iPhone 8, Fire HD 10 tablet, Nintendo Switch and Bose QuietComfort 35 II.
    • Design and materials: We researched what materials each battery was made of, as well as how many color options are available. We also felt out the quality of each battery’s build. Visually, we checked out how each device looked alongside a variety of tech, noting if it appeared too big or small beside it, as well as if you could hold a battery and a phone in the same hand or pocket. The device pool we chose from for this was: iPhone 11, Fire HD 10 tablet and Nintendo Switch.
    • Size and weight: We checked each battery’s dimensions, volume and weight. In our scoring, we favored smaller, lighter devices.
    • Dust resistance: We checked whether the product is rated to resist dust, and to what extent it does so. This test was incorporated into our drop test below. After dropping a device onto grass, we checked how much dust and dirt it picked up. We also look into whether these particles could be dislodged from the ports via shaking the device or using compressed air.
    • Drop Test: We performed two drop tests: 3 feet onto grass and 1.5 feet onto carpet. The former was to simulate a likely drop scenario outdoors, and the latter indoors. After each test, we examined the battery for superficial damage and checked whether it still functioned.
    • Number of ports: We counted the number of ports on each device that could output power. We noted each port type, which could be one of the following: USB Type-A, USB Type-C, micro USB or Lightning. We also noted how many, if any, USB Type-A ports supported fast charging.
    • Wireless charging: We noted whether a device supported wireless charging.
    • Speed of charge: We charged an iPhone 11 from about 5% until it received 50% battery, recording how long the process took.
    • Warranty: We researched the duration of each device’s warranty.

    The Otterbox Otterspot is unlike any portable charger we’ve seen before. The system works as follows: A disk-shaped charging pad can charge mobile devices wirelessly, as well as the included disk-shaped battery via charging pins. The battery, which can be stacked up to three on the pad, can charge devices wirelessly or with a cable and then be recharged upon the pad. Wirelessly, it only delivered 2,519mAh to an iPhone 11. With a wired connection, it provided 3,134mAh. This is significantly less than, say, the 3,655mAh from the Belkin Pocket Power 5K with the same 5,000mAh promise. Overall, the Otterbox Otterspot is an awesome concept that may need some work on the capacity end.

    TheAnker PowerCore III Sense 10K is a beautiful charger. It comes in multiple vibrant colors and features a woven yarn surface on top and matte plastic below. Unfortunately, it only provided 4,189mAh of its expected 10,000mAh capacity. This is 42% of the expected value, compared with the 61% the Anker PowerCore 13,000 was able to achieve. Despite its aesthetic beauty and quality build, this battery dropped the ball on capacity.

    The Anker PowerCore II 20000 is the same price as the Anker PowerCore III Sense 10K, but provides 12,300mAh of its promised 20,000mAh. This is a more respectable 61.5% of what’s expected. The battery is pretty hefty and large, but it feels very durable and has a unique texture that eliminates most smudging. Compared to its 20,000mAh counterpart, the Elecjet PowerPie Power Bank, it weighs way less and provides more mAhs.

    The Aukey 8,000mAh Power Bank was a favorite among those we tested. It’s quite slim, and a little lighter than the Anker PowerCore 13000. Out of the 8,000mAh expectation, it delivered 5509mAhs, which is almost 70%. That’s impressive, made better by three functional output ports and wireless charging (a feature that didn’t end up working on our unit). But despite this battery’s promising properties, it fell short of the PowerCore 13000’s capacity at a higher price, and it didn’t charge an iPhone 11 nearly as fast.

    The Elecjet PowerPie Power Bank lists the same 20,000mAh capacity as the Anker PowerCore II 20000, except it reached just 11,969mAh, or about 60% of what we expected. It also weighs more and has a less sleek design, which didn’t help it score-wise. Overall, it’s got a lot of juice to provide, but it didn’t find a place among the winners.

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  • How virtual clothes could help solve fashion’s waste problem | CNN Business

    How virtual clothes could help solve fashion’s waste problem | CNN Business

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    London
    CNN
     — 

    Fashion’s ephemeral nature might seem an odd bedfellow for the blockchain, an online ledger that’s designed to be permanent. But the industry is finding ways to harness it and other digital tools to reduce waste and push fashion into the future.

    Italian company Lablaco is working with fashion houses and brands to digitize their collections in the burgeoning “phygital” fashion market — when customers buy both a physical fashion item and its digital “twin,” designed to be collected or worn by avatars in virtual environments like the metaverse.

    Lablaco was founded in 2016 by Lorenzo Albrighi and Eliana Kuo. Both had backgrounds in luxury fashion, but were looking to improve the industry’s sustainability credentials and promote circular fashion — the practice of designing and producing clothes in a way that reduces waste.

    The pair launched the Circular Fashion Summit in 2019 and Lablaco worked with retailer H&M to introduce a blockchain-based clothes rental service in 2021.

    Pushing fashion into digital spaces helps generate data that is vital in efforts to move toward circular fashion, they argue. With Lablaco’s model, physical and digital items remain paired even after sale, so if a physical item is resold, the digital equivalent is transferred to the new owner’s digital wallet. The transparency of blockchain technology means the new owner can be assured of its authenticity and the item’s creator can follow its aftersales journey.

    “If you don’t digitize the product itself, you cannot have any data to measure, and you don’t know what’s the impact of the fashion,” Albrighi tells CNN Business.

    The textile and fashion industry creates roughly 92 million tons of waste annually, and digital fashion could have a role in reducing that figure.

    Kuo says digital spaces could be used as a testbed for the physical world. For example, a designer could release an item of digital clothing in 10 colors in the metaverse, and use the sales data to inform which colors to use for the real-world version. “It becomes automatically an on-demand model, which really can reduce the fashion waste,” she says.

    Trying on virtual clothes could also reduce the amount of clothes that are returned in the physical world, says Albrighi. He adds that staging fashion shows in virtual spaces reduces the need for the fashion world to travel. Both interventions have the potential to reduce the industry’s carbon footprint.

    But for these innovations to become widespread, Albrighi says incentivizing designers is key. With the phygital model, the transparency of the blockchain could allow brands to receive royalties when an item is resold throughout its lifetime — a way to “produce less and actually earn more.”

    “It’s the beginning of a brand new industry,” he says.

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  • ‘Fortnite’ maker Epic Games to pay $520 million in record-breaking FTC settlement | CNN Business

    ‘Fortnite’ maker Epic Games to pay $520 million in record-breaking FTC settlement | CNN Business

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    CNN
     — 

    Epic Games, maker of the hit video game “Fortnite,” has agreed to pay a total of $520 million to settle US government allegations that it misled millions of players, including children and teens, into making unintended purchases and that it violated a landmark federal children’s privacy law.

    As part of the agreement, Epic will pay $275 million to the US government to resolve claims it violated the Children’s Online Privacy Protection Act (COPPA) by gathering the personal information of kids under the age of 13 without first receiving their parents’ verifiable consent. It is the largest fine the FTC has ever imposed for a rule that it enforces, the agency said Monday.

    In a second and separate settlement, Epic will pay $245 million as refunds to consumers who were allegedly harmed by user-interface design choices the FTC claimed were deceptive. That agreement is the largest administrative order in FTC history, the FTC added.

    In a blog post addressing the twin settlements, Epic said the agreement reflects an evolution in how US laws are applied to the video gaming industry.

    “No developer creates a game with the intention of ending up here,” Epic said in the blog post. “We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”

    FTC Chair Lina Khan said the settlement reflects the agency’s heightened focus on privacy and so-called “dark patterns,” a term used to describe design elements intended to nudge users toward a company’s preferred result.

    “Protecting the public, and especially children, from online privacy invasions and dark patterns is a top priority for the Commission, and these enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices,” Khan said in a statement.

    The FTC’s complaint and proposed settlement dealing with children’s privacy was filed in the US District Court for the Eastern District of North Carolina. In addition to the alleged illegal collection of children’s data, the FTC also claimed that Epic’s default settings for matchmaking and in-game communications exposed children to bullying and harassment.

    The allegations of Epic’s deceptive design choices were filed as an FTC administrative complaint. The complaint claims Epic made it extremely easy for children to purchase in-game items with a single click or button press without parental approval, resulting in more than one million parental complaints to Epic about unwanted charges.

    The FTC further alleged that Epic made it more difficult to cancel purchases of in-game items by burying the option at the bottom of the screen and by requiring consumers to push and hold a button on their controllers to complete the cancellation. Those design choices were allegedly implemented after surveys showed that, when the cancel button was more prominently displayed, accidental charges were the “number one ‘reason’” users clicked on the button, the FTC said.

    Epic’s agreement with the FTC, which is not yet final, prohibits the company from using dark patterns or charging consumers without their consent, and also forbids Epic from locking players out of their accounts in response to users’ chargeback requests with credit card companies disputing unwanted charges. The agreement will last for 20 years from the time it is adopted.

    In its blog post, Epic said it has agreed with the FTC to implement a feature that explicitly asks Fortnite users whether to save their payment information for future use. The feature is currently live, it added. The company also recently rolled out a more limited version of “Fortnite” for younger players that allows them to access some features while awaiting parental consent but that restricts chat and purchases.

    The FTC said that as part of its children’s privacy settlement, Epic may no longer enable text and voice chat by default for teenage Fortnite players or those under the age of 13. The company must also establish a comprehensive privacy program and delete the data it allegedly gathered in violation of COPPA.

    “We share the underlying principles of fairness, transparency and privacy that the FTC enforces, and the practices referenced in the FTC’s complaints are not how Fortnite operates,” Epic wrote. “We will continue to be upfront about what players can expect when making purchases, ensure cancellations and refunds are simple, and build safeguards that help keep our ecosystem safe and fun for audiences of all ages.”

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  • Taiwan’s military has a problem: As China fears grow, recruitment pool shrinks | CNN

    Taiwan’s military has a problem: As China fears grow, recruitment pool shrinks | CNN

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    Taipei, Taiwan
    CNN
     — 

    Taiwan has noticed a hole in its defense plans that is steadily getting bigger. And it’s not one easily plugged by boosting the budget or buying more weapons.

    The island democracy of 23.5 million is facing an increasing challenge in recruiting enough young men to meet its military targets and its Interior Ministry has suggested the problem is – at least in part – due to its stubbornly low birth rate.

    Taiwan’s population fell for the first time in 2020, according to the ministry, which warned earlier this year that the 2022 military intake would be the lowest in a decade and that a continued drop in the youth population would pose a “huge challenge” for the future.

    That’s bad news at a time when Taiwan is trying to bolster its forces to deter any potential invasion by China, whose ruling Communist Party has been making increasingly belligerent noises about its determination to “reunify” with the self-governed island – which it has never controlled – by force if necessary.

    And the outlook has darkened further with the release of a new report by Taiwan’s National Development Council projecting that by 2035 the island can expect roughly 20,000 fewer births per year than the 153,820 it recorded in 2021. By 2035, Taiwan will also overtake South Korea as the jurisdiction with the world’s lowest birth rate, the report added.

    Such projections are feeding into a debate over whether the government should increase the period of mandatory military service that eligible young men must serve. Currently, the island has a professional military force made up of 162,000 (as of June this year) – 7,000 fewer than the target, according to a report by the Legislative Yuan. In addition to that number, all eligible men must serve four months of training as reservists.

    Changing the mandatory service requirement would be a major U-turn for Taiwan, which had previously been trying to cut down on conscription and shortened the mandatory service from 12 months as recently as 2018. But on Wednesday, Taiwan’s Minister of National Defence Chiu Kuo-cheng said such plans would be made public before the end of the year.

    That news has met with opposition among some young students in Taiwan, who have voiced their frustrations on PTT, Taiwan’s version of Reddit, even if there is support for the move among the wider public.

    A poll by the Taiwanese Public Opinion Foundation in March this year found that most Taiwanese agreed with a proposal to lengthen the service period. It found that 75.9% of respondents thought it reasonable to extend it to a year; only 17.8% were opposed.

    Many experts argue there is simply no other option.

    Su Tzu-yun, a director of Taiwan’s Institute for National Defense and Security Research, said that before 2016, the pool of men eligible to join the military – either as career soldiers or as reservists – was about 110,000. Since then, he said, the number had declined every year and the pool would likely be as low as 74,000 by 2025.

    And within the next decade, Su said, the number of young adults available for recruitment by the Taiwanese military could drop by as much as a third.

    “This is a national security issue for us,” he said. “The population pool is decreasing, so we are actively considering whether to resume conscription to meet our military needs.

    “We are now facing an increasing threat (from China), and we need to have more firepower and manpower.”

    Taiwan’s low birth rate – 0.98 – is far below the 2.1 needed to maintain a stable population, but it is no outlier in East Asia.

    In November, South Korea broke its own world record when its birth rate dropped to 0.79, while Japan’s fell to 1.3 and mainland China hit 1.15.

    Even so, experts say the trend poses a unique problem for Taiwan’s military, given the relative size of the island and the threats it faces.

    China has been making increasingly aggressive noises toward the island since August, when then-US House Speaker Nancy Pelosi controversially visited Taipei. Not long after she landed in Taiwan, Beijing also launched a series of unprecedented military exercises around the island.

    Since then, the temperature has remained high – particularly as Chinese leader Xi Jinping told a key Communist Party meeting in October that “reunification” was inevitable and that he reserves the option of taking “all measures necessary.”

    Chang Yan-ting, a former deputy commander of Taiwan’s air force, said that while low birth rates were common across East Asia, “the situation in Taiwan is very different” as the island was facing “more and more pressure (from China) and the situation will become more acute.”

    “The United States has military bases in Japan and South Korea, while Singapore does not face an acute military threat from its neighbors. Taiwan faces the greatest threat and declining birth rate will make the situation even more serious,” he added.

    Roy Lee, a deputy executive director at Taiwan’s Chung-hua Institution for Economic Research, agreed that the security threats facing Taiwan were greater than those in the rest of the region.

    “The situation is more challenging for Taiwan, because our population base is smaller than other countries facing similar problems,” he added.

    Taiwan’s population is 23.5 million, compared to South Korea’s 52 million, Japan’s 126 million and China’s 1.4 billion.

    Besides the shrinking recruitment pool, the decline in the youth population could also threaten the long-term performance of Taiwan’s economy – which is itself a pillar of the island’s defense.

    Taiwan is the world’s 21st largest economy, according to the London-based Centre for Economics and Business Research, and had a GDP of $668.51 billion last year.

    Much of its economic heft comes from its leading role in the supply of semiconductor chips, which play an indispensable role in everything from smartphones to computers.

    Taiwan’s homegrown semiconductor giant TSMC is perceived as being so valuable to the global economy – as well as to China – that it is sometimes referred to as forming part of a “silicon shield” against a potential military invasion by Beijing, as its presence would give a strong incentive to the West to intervene.

    Lee noted that population levels are closely intertwined with gross domestic product, a broad measure of economic activity. A population decline of 200,000 people could result in a 0.4% decline in GDP, all else being equal, he said.

    “It is very difficult to increase GDP by 0.4%, and would require a lot of effort. So the fact that a declining population can take away that much growth is big,” he said.

    Taiwan’s government has brought in a series of measures aimed at encouraging people to have babies, but with limited success.

    It pays parents a monthly stipend of 5,000 Taiwan dollars (US$161) for their first baby, and a higher amount for each additional one.

    Since last year, pregnant women have been eligible for seven days of leave for obstetrics checks prior to giving birth.

    Outside the military, in the wider economy, the island has been encouraging migrant workers to fill job vacancies.

    Statistics from the National Development Council showed that about 670,000 migrant workers were in Taiwan at the end of last year – comprising about 3% of the population.

    Most of the migrant workers are employed in the manufacturing sector, the council said, the vast majority of them from Vietnam, Indonesia, Thailand and the Philippines.

    Lee said in the long term the Taiwanese government would likely have to reform its immigration policies to bring in more migrant workers.

    Still, there are those who say Taiwan’s low birth rate is no reason to panic, just yet.

    Alice Cheng, an associate professor in sociology at Taiwan’s Academia Sinica, cautioned against reading too much into population trends as they were affected by so many factors.

    She pointed out that just a few decades ago, many demographers were warning of food shortages caused by a population explosion.

    And even if the low birth rate endured, that might be no bad thing if it were a reflection of an improvement in women’s rights, she said.

    “The educational expansion that took place in the 70s and 80s in East Asia dramatically changed women’s status. It really pushed women out of their homes because they had knowledge, education and career prospects,” she said.

    “The next thing you see globally is that once women’s education level improved, fertility rates started declining.”

    “All these East Asian countries are really scratching their head and trying to think about policies and interventions to boost fertility rates,” she added.

    “But if that’s something that really, (women) don’t want, can you push them to do that?”

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  • China challenges US chip curbs at WTO, citing ‘trade protectionism’ | CNN Business

    China challenges US chip curbs at WTO, citing ‘trade protectionism’ | CNN Business

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    Hong Kong
    CNN
     — 

    China has challenged a move by the United States to block sales of advanced computer chips and chip-making equipment to Chinese companies by launching a trade dispute at the World Trade Organization, calling the measures “trade protectionism.”

    The country’s commerce ministry filed a formal complaint against the United States with the WTO on Monday, according to a statement. The two countries are both members of the trade body, which has a mechanism for resolving disputes.

    “China’s filing of a lawsuit at the WTO is to resolve China’s concerns through legal means and is a necessary way to defend its legitimate rights and interests,” the ministry said.

    On October 7, the Biden administration unveiled a sweeping set of export controls that ban Chinese companies from buying advanced chips and chip-making equipment without a license. The rules also restrict the ability of US citizens or green card holders to support the “development or production” of chips at certain manufacturing facilities in China.

    The commerce ministry blasted the US move as threatening global supply chain stability and called it “a typical practice of trade protectionism.” The complaint is the first action China has taken at the global trade body against the US chip sanctions.

    US officials say the export controls were intended to protect national security interests.

    Analysts widely consider the measures to be a major threat to China’s tech ambitions, as the global semiconductor industry is heavily dependent on the United States and countries aligned with it for chip design, the tools that make them, and fabrication. It also comes as the United States is looking to bolster its domestic chip manufacturing abilities, after chip shortages earlier in the pandemic highlighted the country’s dependence on imports from abroad.

    Washington has also pressured its security partners to comply with chip-related curbs on China. Jake Sullivan, the White House national security adviser, said on Monday that Washington had spoken with its partners including Japan and the Netherlands to tighten chip-related exports to China, according to Reuters.

    Beijing has tried to push back against the sanctions. Last month, Chinese President Xi Jinping met with leaders from South Korea and the Netherlands, both key to the global chip-making supply chain, at the G20 summit in Bali, Indonesia. He called for both countries to boost cooperation in high-tech manufacturing and avoid “the politicization of economic and trade issues.”

    Chips are a growing source of tension between the United States and China. In recent years, Washington has turned up the pressure on China’s tech sector by limiting access to cutting-edge chip components and machinery.

    Before the October sanctions, the US government had already banned sales of certain tech products to specific Chinese companies, such as Huawei. It also ordered top chipmakers Nvidia and AMD to halt their shipments to China.

    To secure its own chip supplies, Beijing has stepped up efforts to boost domestic semiconductor production in recent years.

    In November 2018, just months after Washington hit Chinese telecoms giant ZTE Corp with an export ban, the Chinese government set up an industry alliance of companies and research institutes as part of efforts to design advanced chips. The group’s focus is on developing Risc-V, an open-source chip design architecture that has increasingly become a rival to Softbank

    (SFTBF)    ’s Arm, the current global leader. Members of the consortium include the Chinese Academy of Sciences, Alibaba

    (BABA)    , Tencent

    (TCEHY)    , and Baidu

    (BIDU)    .

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  • Microsoft buys stake in London Stock Exchange in cloud data deal | CNN Business

    Microsoft buys stake in London Stock Exchange in cloud data deal | CNN Business

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    London
    CNN
     — 

    Microsoft

    (MSFT)     is buying a 4% stake in the London Stock Exchange as part of a deal that will see the market operator spend at least $2.8 billion over 10 years on the software provider’s cloud services.

    The companies announced the partnership in a joint statement on Monday, touting the benefits it will deliver to the stock exchange’s customers through improved data and analytics. Shares of the London Stock Exchange Group (LSEG) gained 4% in early trade.

    The partnership “creates attractive revenue growth opportunities for both companies,” LSEG CEO David Schwimmer said in the statement.

    As part of the deal, the London Stock Exchange’s data platform and other technology infrastructure will migrate into Microsoft’s Azure cloud environment.

    The companies also plan to work together to develop new products and services for data and analytics using Microsoft Azure, Microsoft Teams and Microsoft’s artificial intelligence (AI) capabilities.

    As a start, the exchange will be able to share its data and analytics with Teams and Microsoft 365, which includes Excel and PowerPoint.

    “The partnership will build on the good progress made by LSEG on the integration of Refinitiv and enhance its position as a world-leading financial markets infrastructure and data provider,” the statement said.

    LSEG completed its $27 billion acquisition of Refinitiv last year, making it the second largest financial data company after Bloomberg. Its data and analytics business makes up two-thirds of group revenue.

    The deal with Microsoft includes a commitment by LSEG to spend at least $2.8 billion on the software provider’s cloud-related products and services over the 10-year term of the partnership. This is consistent with existing long-term spending plans, according to the statement.

    Microsoft will buy its LSEG shares from Blackstone and Thomson Reuters

    (TRI)    . The purchase is expected to complete in the first quarter of 2023.

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  • The mass unbanning of suspended Twitter users is underway | CNN Business

    The mass unbanning of suspended Twitter users is underway | CNN Business

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    New York
    CNN Business
     — 

    Thousands of previously banned Twitter users, including members of the far-right and users sharing blatant misinformation, have begun to have their accounts restored to the platform, according to an independent analysis.

    The mass restoration of accounts comes after new owner Elon Musk said late last month that he would offer “general amnesty” to many who had been removed from the platform. In following through on that commitment, however, Musk risks further alienating other users and advertisers, and exacerbating concerns among watchdog groups about the rise of hate speech on the platform under his ownership (a fact Musk has attempted to refute).

    Among those recently unbanned are a range of large and small accounts, including users promoting NFTs and cryptocurrencies, users tweeting about sports, many users tweeting in languages other than English, as well as both users that appear to be left-leaning and pro-Trump, according to observations by CNN.

    But the restored accounts also include far-right figures such as Andrew Anglin, a self-professed white supremacist who founded the neo-Nazi website The Daily Stormer, and Patrick Casey, who is associated with the far-right group “America First” and was subpoenaed by the House January 6 committee for his involvement in the Capitol riot.

    A number of accounts restored in recent days, including many with thousands of followers, used their first tweets in years to thank Musk for allowing them back on the platform, according to a review of their posts by CNN. Some also quickly began sharing conspiracy theories about issues such as Covid-19 and the 2020 US Presidential election.

    A data set of many of the unbanned accounts compiled by researcher and software developer Travis Brown, who worked for Twitter for a year in 2014 and last year began a project tracking hate speech on the platform, shows dozens of users who have had their bans reversed are using QAnon-related phrases or hashtags in their account bios. The dataset was built using Twitter’s API and a tool Brown had originally built to observe and track high-profile Twitter suspensions.

    The accounts that have been restored includes “a really strange mix of accounts” that includes apparent far-right extremists and QAnon adherents, but also, for example, a Miley Cyrus fan account that has been repeatedly suspended and appears aimed mostly at growing a large following, Brown said.

    But Brown added that other accounts he has observed as part of his hate speech tracking project have yet to be reinstated, raising questions about the criteria Twitter is using to restore previously banned accounts, although it’s possible Musk’s reinstatement process will take time. Many users on Twitter have also raised questions about Musk’s move last week to again suspend Kanye West, who has made numerous antisemitic comments, while restoring the accounts of other white supremacists and Neo-Nazis. In another instance, Musk tweeted that he would not restore Alex Jones’s account because of a personal preference.

    “I’ve found it really hard … to generalize about how and why certain accounts are allowed back,” Brown said.

    Twitter, which has made substantial cuts to its public relations team, did not immediately respond to a request for comment and questions on the number of previously banned accounts restored or its process for doing so.

    Musk said last month that he would begin restoring most previously banned accounts to the platform, after having polled his Twitter followers about whether to offer “general amnesty to suspended accounts, provided that they have not broken the law or engaged in egregious spam.” The poll, which garnered more than three million votes, finished with more than 72% voting in favor of the proposition. It is not clear how Musk and Twitter’s remaining staff are sorting out which accounts were banned for spam or illegal activity.

    The new Twitter owner had already begun to restore the accounts of some prominent, controversial users that had previously been banned or suspended from the platform, most notably former President Donald Trump, as well as conservative Canadian podcaster and all-beef diet promoter Jordan Peterson and the right-leaning satire website Babylon Bee.

    Some of the accounts restored in the latest wave have already raised concerns from civil rights groups. The Anti-Defamation League on Monday described as “deeply disturbing” Twitter’s decision to allow Anglin back on the platform.

    “The return of extremists to the platform has the potential to supercharge the spread of extremist content and disinformation, and this in turn could lead to the increased harassment of users,” Yael Eisenstat, vice president of ADL’s Center for Technology and Society said in a statement to CNN. “Musk’s actions to date show that he is not committed to a transparent process that incorporates the best practices we have learned from civil society groups.”

    Before taking over Twitter, Musk said he disagreed with the platform’s policy of permanent bans, which were typically doled out only after a user had received a number of “strikes” for repeatedly violating Twitter’s policies, including those against Covid-19 or civic integrity misinformation.

    Shortly after acquiring the company, Musk said he would create a “content moderation council” prior to making major changes, but there is no evidence such a group was ever formed or involved in the decisions to bring back violative accounts. Instead, Musk has appeared to make the decisions himself.

    Musk and Twitter have repeatedly stressed that the platform’s rules have not changed, despite restoring accounts that had repeatedly violated its rules and ceasing enforcement of the company’s policy prohibiting Covid-19 misinformation. In a blog post last month, Twitter said that its trust and safety team “remains strong and well-resourced, and automated detection plays an increasingly important role in eliminating abuse.” Content that violates Twitter’s rules, it added, will be demoted on the platform.

    Yoel Roth, Twitter’s former head of trust and safety who left the company following Musk’s takeover, criticized the billionaire Twitter owner’s top-down approach to content decisions in an interview with journalist Kara Swisher last month, suggesting that the platform had started to be run by “dictatorial edict rather than by a policy.” He also raised concerns about layoffs that hit Twitter’s safety teams.

    Restoring additional, previously banned accounts could exacerbate several big issues Twitter is currently facing. It could further alienate Twitter’s advertisers, many of whom have fled the platform in the wake of the chaos since Musk took over and out of fear that their ads could end up running alongside objectionable content. Musk has said the departure of key Twitter advertisers in recent weeks has led to a “massive drop in revenue” for the company.

    Ads for major brands, including Kia, Amazon, Snap and Uber, have already begun to appear alongside tweets from reinstated accounts such as Anglin’s, according to reporting from the Washington Post and observations by CNN. (Kia told CNN it “continues to monitor the evolving Twitter environment and work closely with their teams on advertisement placement and usage.” The other brands did not immediately respond to CNN’s requests for comment.)

    It could also draw more attention from Apple, which Musk previously tweeted had threatened to remove Twitter from its app store. Musk later said that the concern had been resolved following a meeting with Tim Cook, but Apple has previously shown a willingness to remove social media platforms from its app store over concerns about their ability to moderate hate speech and other potentially harmful content. Getting booted from Apple’s app store would be detrimental to Twitter’s business by making it harder for the iPhone maker’s more than one billion global customers to access the app, and difficult if not impossible for iPhone users to receive app updates.

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  • As the world courts TSMC, Taiwan worries about losing its ‘silicon shield’ | CNN Business

    As the world courts TSMC, Taiwan worries about losing its ‘silicon shield’ | CNN Business

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    Hong Kong
    CNN
     — 

    Semiconductor giant TSMC was feted this week by US President Joe Biden and Apple CEO Tim Cook during a ceremony to unveil its $40 billion manufacturing site in Arizona — a huge investment designed to help secure America’s supply of the most advanced chips.

    But back home in Taiwan, there is deep unease over the growing political and commercial pressure being applied to the world’s most important chipmaker to expand internationally. The company is building a facility in Japan and considering investing in Europe.

    “They’re like the Hope Diamond of semiconductors. Everybody wants them,” said G. Dan Hutcheson, vice chair of TechInsights, a research organization specializing in chips. (The Hope Diamond is the world’s largest blue diamond, which now resides at the Smithsonian Institute’s National Museum of Natural History in Washington.)

    “Customers in China want them to build there. Customers in the US want them there. And customers in Europe want them there too,” he added.

    Apart from the risk that TSMC will take its most advanced technology with it — stripping Taiwan of one of its unique assets and reducing employment opportunities locally — there are fears that a diminished presence for the company could expose Taipei to greater pressure from Beijing, which has vowed to take control of the self-ruled island, by force if necessary.

    TSMC is considered a national treasure in Taiwan and supplies tech giants including Apple

    (AAPL)     and Qualcomm

    (QCOM)    . It mass produces the most advanced semiconductors in the world, components that are vital to the smooth running of everything from smartphones to washing machines.

    The company is perceived as being so valuable to the global economy, as well as to China — which claims Taiwan as its own territory despite having never controlled it — that it is sometimes even referred to as forming part of a “silicon shield” against a potential military invasion by Beijing. TSMC’s presence gives a strong incentive to the West to defend Taiwan against any attempt by China to take it by force.

    “The idea is that if Taiwan became a powerhouse in semiconductors, then America would have to support and defend it,” said Hutcheson. “The strategy has been super successful.”

    A day before Tuesday’s Phoenix ceremony Chiu Chenyuan, a lawmaker with the opposition Taiwan People’s Party, grilled Foreign Minister Joseph Wu about whether there is a “secret deal” with the United States to disadvantage Taiwan’s chip industry.

    Chiu claimed that the chip giant was under political pressure to move its operations and its most advanced technology to the US. He cited the transfer of 300 people, including TSMC engineers, to the Arizona plant. In response, Wu said there was no secret deal, nor was there any attempt to diminish the importance of Taiwan to TSMC.

    Patrick Chen, the Taipei-based head of research at CL Securities Taiwan, said there was a common concern on the island about TSMC’s growing international importance, the pressure it is facing to expand, and what that means for Taiwan.

    “It is similar to what happened in the US in the 70s and 80s when manufacturing jobs were being shifted away from the States into other countries. Many local jobs were lost and cities bankrupted,” he said.

    CNN has asked TSMC for comment about its expansion plans.

    Its CEO, CC Wei, had previously said: “Every region is important to TSMC,” adding that it would “continue to serve all the customers all over the world.”

    Founded in 1987 by Morris Chang, TSMC is not a household name outside Taiwan, even though it produces an estimated 90% of the world’s super-advanced computer chips.

    Semiconductors are an indispensable part of just about every electronic device. They are difficult to make because of the high cost of development and the level of knowledge required, meaning much of the production is concentrated among a handful of suppliers.

    Concerned about losing access to crucial chips, particularly as tension has escalated between China and the United States, as well as between Beijing and Taipei, governments and major consumer-facing companies like Apple have asked semiconductor companies to localize their operations, according to experts.

    “TSMC’s decision to expand its Arizona investment is evidence that politics and geopolitical risks will play a bigger role than previously in supply chain decisions,” said Chris Miller, author of “Chip War: the Fight for the World’s Most Critical Technology”.

    “It also suggests that TSMC’s customers are asking for more geographic diversification, which is something that wasn’t previously a key concern of major customers.”

    On Tuesday, TSMC said it was increasing its investment in the US by building a second semiconductor factory in Arizona and raising its total investment there from $12 billion to $40 billion.

    Chang had previously said its plant in Arizona would produce 3-nanometer chips, the company’s most advanced technology, as advances in chip manufacturing require etching ever-smaller transistors onto silicon wafers.

    These announcements alarm politicians like Chiu of the Taiwan People’s Party’s. He frets about the island losing out as TSMC is courted globally.

    Chen of CL Securities said national security concerns among governments globally are driving TSMC’s expansion. But he believes the company will continue to manufacture its most advanced technology at home.

    “This would make economic sense given [the] lower salaries [and] higher quality of Taiwanese engineers,” he said, adding that the company needs the approval of the Taiwan Ministry of Economic Affairs to move its most advanced technologies abroad, which it was unlikely to give.

    Many experts believe that by the time 3-nanometer chips are being made in Arizona, TSMC’s Taiwan operations would be producing even smaller, more advanced chips.

    Hutcheson also believes TSMC will keep its most cutting-edge development teams in Taiwan.

    “Once you have a team of people doing development work, they work very closely together. You don’t want to disrupt that. It’s not an easy thing to do,” he said.

    — CNN’s Wayne Chang contributed to this report.

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  • FTC sues to block Microsoft’s $69 billion acquisition of Activision Blizzard | CNN Business

    FTC sues to block Microsoft’s $69 billion acquisition of Activision Blizzard | CNN Business

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    Washington
    CNN
     — 

    The Federal Trade Commission on Thursday sued to block Microsoft’s $69 billion acquisition of Activision Blizzard, challenging one of the largest tech acquisitions in history.

    The administrative complaint filed Thursday by the FTC alleges that the blockbuster deal, which would make Microsoft the third-largest video game publisher in the world, would give Microsoft “both the means and motive to harm competition” — claiming it could negatively affect prices of video games as well as game quality and player experiences on consoles and gaming services, according to an agency release.

    “We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” Brad Smith, Microsoft’s president, said in a statement Thursday. “We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC. While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court.”

    In an email sent to employees and provided to CNN, Activision CEO Bobby Kotick said the FTC suit may sound “alarming” but he remains confident the deal will close. “The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge,” he said.

    The US merger challenge reflects the biggest setback yet for Microsoft as it has aggressively courted regulators around the world in hopes of persuading them to bless the deal. It also marks the FTC’s most significant challenge to the tech industry since it sued to break up Facebook-owner Meta in 2020, underscoring US officials’ vocal promises of a tough antitrust enforcement agenda.

    “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets,” said Holly Vedova, director of the FTC’s Bureau of Competition, in a statement.

    Microsoft’s proposed deal would give it control over key video game franchises, including “Call of Duty,” “World of Warcraft” and more.

    Officials in the United Kingdom and the European Union have also scrutinized the deal as potentially anticompetitive. But the FTC complaint marks the first attempt by an antitrust regulator to block the deal outright.

    Microsoft could use its ownership over Activision titles to raise prices, or to try to funnel players to gaming platforms it controls, such as Xbox or Windows, the FTC said. The deal could also affect the emerging market for cloud-based gaming services, the FTC said, which Microsoft is involved with through its subscription service, Xbox Game Pass.

    In recent days, Microsoft has announced a slew of partnerships apparently intended to head off claims that it would withhold gaming content from rivals. This week, Microsoft said it had reached a 10-year deal with Nintendo ensuring that it will have access to Call of Duty for the foreseeable future.

    In a Wall Street Journal op-ed Monday, Microsoft’s Smith said an FTC suit to block the Activision deal would be a “huge mistake” and added that the acquisition would allow Microsoft to innovate new features such as the ability for consumer to play the same game on multiple devices, just as they can with streaming TV shows or music.

    Months earlier, in February, Microsoft made an 11-point pledge related to all of its app marketplaces and its gaming business. The list included a promise, which would cover the proposed Activision deal, not to give preferential treatment to its own published games on digital marketplaces it runs.

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  • Video: ‘Swifties’ take on Ticketmaster, new AI chatbot coming for your job and Apple sued for AirTag stalking on CNN Nightcap | CNN Business

    Video: ‘Swifties’ take on Ticketmaster, new AI chatbot coming for your job and Apple sued for AirTag stalking on CNN Nightcap | CNN Business

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    The AI chatbot coming for your job, ‘Swifties’ take on Ticketmaster, and Apple sued for AirTag stalking

    Nightcap’s Jon Sarlin talks to futurist Amy Webb about the implications for ChatGPT, the next-gen AI tool that’s blowing everyone’s minds. Plus, Morgan Harper of the American Economic Liberties Project on whether Ticketmaster has met its match in Taylor Swift and her legion of devoted fans. And CNN’s Sam Kelly on the lawsuit filed against Apple by two women alleging their exes used AirTags to stalk them. To get the day’s business headlines sent directly to your inbox, sign up for the Nightcap newsletter.


    13:31

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  • Microsoft could soon have its first union | CNN Business

    Microsoft could soon have its first union | CNN Business

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    CNN
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    Some 300 quality assurance workers at Microsoft-owned gaming studio ZeniMax are in the process of voting to form what would be the first union at the tech giant, organizers confirmed to CNN Business.

    The workers are organizing with the Communications Workers of America (CWA) union and have until the end of December to vote on it. Microsoft has agreed to recognize the union if a majority of the workers vote in favor of it, according to the CWA.

    “We applaud Microsoft for remaining neutral through this process and letting workers decide for themselves whether they want a union,” CWA President Christopher Shelton said in a statement to CNN Business. “Other video game and tech giants have made a conscious choice to attack, undermine, and demoralize their own employees when they join together to form a union. Microsoft has made a different choice, which other corporations would be wise to emulate for the good of their corporate culture, their workers, and their customers.”

    The organizing efforts at the gaming studio come amid a broader labor awakening that has erupted across major companies in the tech industry and beyond, including retail and warehouse workers at Amazon, Apple and Starbucks. Some companies like Amazon have so far refused to recognize workers who have voted to form a union.

    The union bid at the Microsoft subsidiary, however, stands out from some of the others because Microsoft has previously vowed to recognize the rights of workers to organize. Earlier this year, Microsoft entered into a neutrality agreement with the CWA, which is also supporting organizing efforts from workers at Activision Blizzard, the gaming giant Microsoft agreed to acquire for $68.7 billion. (The deal is pending regulatory approval.)

    Over the past year, the gaming sector has seen a larger worker-led push for improved workplace conditions after a number of controversies related to grueling work-life balance, pay inequities, poor job stability and other complaints over workplace culture at some of the country’s biggest gaming studios.

    A Microsoft spokesperson told CNN Business on Monday evening that its neutral stance toward the organizing efforts of ZeniMax employees is “an example of our labor principles in action.” The spokesperson said Microsoft remains committed “to providing employees with an opportunity to freely and fairly make choices about their workplace representation.”

    Joe Slack, an associate quality assurance tester who is part of the organizing committee for the ZeniMax union, said workers are “not starting a union to be against the company.” Instead, the effort is largely about giving workers a seat at the table as management makes decisions that will impact them.

    “We just really wanted to have a voice,” Slack told CNN Business, “and try and help with communication with management, and figuring out how we can deal with all these different things that challenge the group as a whole.” Slack said workers came together after seeing “just so much room for improvement” in their workplace.

    Slack said Microsoft has been “very accommodating” throughout the process, ever since organizers first approached the company about the union. “They understand that it’s a right and they wanted to leave it up to the workers,” Slack said.

    “There’s this perception of an adversarial relationship between the union and management, and it doesn’t have to be that way,” Slack added. “I’m happy to be part of a group that’s trying to prove that and improve everybody’s life and well-being in the process.”

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  • Microsoft says it has reached a 10-year deal to bring ‘Call of Duty’ to Nintendo | CNN Business

    Microsoft says it has reached a 10-year deal to bring ‘Call of Duty’ to Nintendo | CNN Business

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    New York
    CNN Business
     — 

    Fans of the popular first-person shooter game “Call of Duty” may soon have more options for where they can play it.

    Microsoft said late Tuesday it has reached a 10-year deal to bring the 19-year-old game franchise to Nintendo after its acquisition of Activision Blizzard, which makes the game, is completed. The deal is pending regulatory approval.

    The news came one day after Microsoft president Brad Smith wrote in a Wall Street Journal opinion piece that the Redmond, Washington-based company offered a 10-year contract for “Call of Duty” to work with Sony’s PlayStation console. (Microsoft reportedly made another offer earlier this year). Sony did not immediately respond to a request for comment.

    The Nintendo deal is the latest attempt by Microsoft to ease concerns that its blockbuster acquisition of the gaming giant could harm competition in the industry.

    Microsoft announced plans to acquire Activision Blizzard in January in a deal valued at nearly $70 billion, which would be one of the biggest ever in the tech industry. The move could boost Microsoft’s standing in the gaming industry, as its Xbox console trails behind Sony’s PlayStation and the Nintendo Switch.

    Microsoft head of gaming Phil Spencer announced the commitment with Nintendo in a tweet and said it will continue to offer “Call of Duty” on gaming platform Steam if the deal is completed. “Microsoft is committed to helping bring more games to more people – however they choose to play,” he said.

    The company’s decision to bring “Call of Duty” to Nintendo comes as Microsoft’s Activision deal faces regulatory scrutiny on both sides of the Atlantic. The US Federal Trade Commission reportedly plans to sue Microsoft to block the Activision acquisition.

    But Smith this week defended the strategy, saying a block of the deal would be “a huge mistake.”

    “It would hurt competition, consumers and thousands of game developers,” he wrote in the Wall Street Journal.

    He argued that Microsoft faces “huge challenges” in the gaming industry, and the potential acquisition of Activision Blizzard could allow Microsoft to compete against these companies “through innovation that would benefit consumers.”

    Microsoft also wants to offer the option for customers to subscribe to a cloud gaming service that lets them stream a variety of games on multiple devices for a “reasonable” fee, Smith said. The company is open to providing the same commitment to other platforms, which would be legally enforceable by regulators in the United States, the United Kingdom and the European Union.

    According to Eric Abbruzzese, an analyst at ABI Research, the effort to open up access to its games shows Microsoft is “scrambling” to overcome regulatory hurdles.

    “If the offer helps the deal finalize, then that is a huge win that flies under the radar with ‘Call of Duty’ in the headlines,” he said. “But offering a single entity for a limited time would not be enough to circumvent regulation, as it is temporary and narrow in scope.”

    “Call of Duty” is arguably the most popular game title today, so the impact to consumers is notable. As of 2020, the game had topped 250 million downloads worldwide, according to data from SensorTower, an analytics firm that tracks app downloads.

    “Nintendo is not a high priority for ‘Call of Duty,’ all things considered – it has done perfectly fine without being on Nintendo recently,” Abbruzzese added. “Keeping it on Steam for the PC market is significant though, and obviously if this offer convinces Sony to accept as well, that’s gigantic.”

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  • Apple now lets developers charge as much as $10,000 for an app | CNN Business

    Apple now lets developers charge as much as $10,000 for an app | CNN Business

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    CNN
     — 

    If you were worried about how much money you could blow on apps before, buckle up.

    Apple

    (AAPL)     on Tuesday said it is adding 700 new price points for apps in its App Store, starting as low as $0.29 and running all the way up to $10,000, though the very high-end is available “upon request” by developers only.

    The changes follow a $100 million settlement with developers in August 2021 in which the company pledged to expand the price points developers can offer to consumers, among other changes. At the time, Apple said it “will help make the App Store an even better business opportunity for developers.”

    It also comes as Apple has faced scrutiny for the restrictions and fees it places on developers, including the 30% commission the company takes from some of the apps listed in its app store.

    Apple last year made it easier for some media companies to avoid the fees, but the company continues to face criticism from Elon Musk, Fortnite-maker Epic and others for the cut it takes.

    In addition to the new price points, Apple said Tuesday it is rolling out new tools intended to make it easier for developers to set prices based on country or region and manage foreign exchange rate changes and more.

    It said the new pricing enhancements will be available for apps offering auto-renewing subscriptions starting on Tuesday, and for other apps and in-app purchases next spring.

    In total, there are now 900 different price points for apps in Apple’s App Store. The new price points available include every $0.10 mark from the minimum up to $10, and every $0.50 between $10 and $50.

    While seeing a $10,000 price tag next to an app could come as shock, the App Store is no stranger to costly apps. Some apps, such as piano tuning app Cyber Tuner, are currently priced at $999.99.

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  • TSMC ups its Arizona chipmaking investment to $40 billion ahead of Biden’s visit | CNN Business

    TSMC ups its Arizona chipmaking investment to $40 billion ahead of Biden’s visit | CNN Business

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    New York
    CNN Business
     — 

    Taiwan Semiconductor Manufacturing Company is upping its investment in the United States, announcing Tuesday that it’s building a second semiconductor factory in Arizona and raising its investment there from $12 billion to $40 billion.

    TSMC’s plans come as tensions between Washington and Beijing are rising over chips, with President Joe Biden imposing a sweeping set of controls on the sale of advanced chips and chip-making equipment to Chinese firms.

    Biden visited the manufacturer’s site in Phoenix and spoke about bringing jobs and investment to Arizona, calling TSMC’s $40 billion commitment “the largest foreign investment in the history of this state.” Other lawmakers and business leaders also attended the event, including Apple CEO Tim Cook.

    “American manufacturing is back, folks,” Biden said at the event. “These are the most advanced semiconductor chips on the planet, chips that will power iPhones and MacBooks, as Tim Cook can attest … It could be a game changer.”

    In his remarks, Cook said: “As many of you know, we work with TSMC to manufacture the chips that help power our products all over the world, and we look forward to expanding this work in the years to come as TSMC forms new and deeper roots in America.” He added that with the opening of the new facility, Apple’s own Silicon chips “can be proudly stamped ‘Made in America.’”

    TSMC previously announced that it was building a $12 billion facility in Arizona that will eventually manufacture 3-nanometer chips, TSMC’s most advanced technology. Between the two factories, thousands of “high-paying high-tech jobs” will be added to the state and 600,000 wafers per year will be produced, the company said.

    TSMC accounts for an estimated 90% of the world’s super-advanced computer chips, supplying tech giants including Apple

    (AAPL)     and Qualcomm

    (QCOM)    .

    Chips are an indispensable part of everything from smartphones to washing machines — but are also difficult to make because of the high cost of development and the level of knowledge required, meaning much of the production is concentrated among a handful of suppliers.

    The White House is touting the new investments as a direct result of Biden’s economic plan, including the $200 billion CHIPS and Science Act. Biden has been visiting communities where companies like TSMC and Intel have announced new investments since the passage of the law this summer.

    “It means more workers in these major factories, but it also means more opportunities for suppliers and contractors, good paying construction jobs, opportunities for small and medium sized manufacturers and suppliers,” National Economic Council Director Brian Deese told reporters in a call on Monday. “It means economic opportunity for communities that have often been left behind in economic cycles, including traditional energy communities that have powered our nation for generations and tribal nations.”

    The global chip shortage first surfaced at the beginning of the pandemic, which upended supply chains and changed consumer shopping patterns. Automakers cut back on their orders for chips while tech companies, whose products were boosted by lockdown living, snapped up as many as they could.

    The facility Biden will visit Tuesday in Phoenix is slated to begin producing chips in 2024. The new facility should start production in 2026.

    – CNN’s Nikki Carvajal, Wayne Chang, Clare Duffy and Diksha Madhok contributed to this report.

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  • DOJ antitrust regulators should look at Apple, Google’s handling of TikTok, says FCC commissioner | CNN Business

    DOJ antitrust regulators should look at Apple, Google’s handling of TikTok, says FCC commissioner | CNN Business

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    Washington
    CNN Business
     — 

    Apple and Google’s continued hosting of TikTok on their app stores, despite US national security concerns about the short-form video app, reflects the tech giants’ “gatekeeper” power and should be made part of any antitrust reviews the app stores may face, a member of the Federal Communications Commission wrote to the Justice Department last week.

    The previously unreported letter — sent on Dec. 2 to DOJ antitrust chief Jonathan Kanter and obtained by CNN — said that continuing to make TikTok available on the app stores risks harming consumers, whose personal information US officials have worried may be being fed to the Chinese government.

    Beyond possible consumer harm, TikTok’s continued presence on app stores also undercuts Apple and Google’s arguments that their dominance in app distribution leads to better user security and privacy, FCC Commissioner Brendan Carr wrote in the letter.

    It’s the latest attempt by Carr, a top Republican at the FCC, to pressure Apple and Google to remove TikTok. Last month, Carr called for the US government to ban TikTok over the bipartisan concerns that China could wield its influence over TikTok’s parent, ByteDance, to gain access to US user data or to disseminate propaganda and disinformation. Now, Carr is trying a new tack by framing the TikTok matter as an antitrust issue.

    “Apple and Google are not exercising their ironclad control over apps for the altruistic or procompetitive purposes that they put forward as defenses to existing antitrust or competition claims,” Carr wrote. “Instead, their conduct shows that those rationales are merely pretextual — talismanic references invoked to shield themselves from liability.”

    DOJ’s Antitrust Division should consider that “to the extent that it assesses the reasonableness of Apple’s and Google’s anticompetitive actions,” Carr added.

    Google declined to comment. Apple the Justice Department didn’t immediately respond to a request for comment.

    The FCC does not regulate app stores or social media, focusing instead on telecommunications and traditional media such as radio and television broadcasters and cable operators. But Carr has become the most vocal commissioner to speak out on TikTok, drawing what he’s said are lessons from the FCC’s own decisions to block Huawei, ZTE and other telecom companies with ties to China from the US market.

    His remarks also echo those by prominent lawmakers of both parties, including Virginia Democratic Sen. Mark Warner and Florida Republican Sen. Marco Rubio, who together lead the Senate Intelligence Committee.

    Carr’s call comes as Apple and Google’s critics have increasingly sought to apply the nation’s antitrust laws against the tech giants. Third-party software developers have long alleged that Apple and Google’s app store fees and rules are monopolistic and anticompetitive. A high-profile 2020 lawsuit along those lines brought by Epic Games, the maker of video game “Fortnite,” has so far proven largely unsuccessful, though an appeal is pending.

    More recently, Apple’s conservative critics have accused the company of abusing “monopoly” power by allegedly threatening to remove Twitter from its app store — a claim that Twitter’s new owner Elon Musk has made without evidence and that he says has since been resolved thanks to a conversation with Apple CEO Tim Cook. Apple has not commented on Musk’s allegation or purported exchange with Cook.

    For years, TikTok has been negotiating with the Committee on Foreign Investment in the United States, a multi-agency US government panel charged with reviewing the national security implications of foreign investment deals, to arrive at an agreement to allow TikTok to operate in the US market despite the security concerns.

    TikTok has said Project Texas, its plan to migrate US user data exclusively to cloud servers hosted by Oracle, is a core part of the solution. Last week, TikTok CEO Shou Zi Chew said at a conference hosted by the New York Times that “no foreign government has asked us for user data before, and if they did, we would say no.”

    In congressional testimony, TikTok has said it maintains robust data controls but has sought to sidestep questions about its parent company and declined to stop letting China-based employees access US users’ data.

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  • ‘Super Mario Bros. Movie’ trailer shows being a hero isn’t all fun and games | CNN

    ‘Super Mario Bros. Movie’ trailer shows being a hero isn’t all fun and games | CNN

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    CNN
     — 

    Mario learns that being a hero is a tough gig in the new trailer for “Super Mario Bros. Movie.”

    The colorful preview, in which Mario (Chris Pratt) sets off on an adventure to defend Mushroom Kingdom against Bowser (Jack Black), features a look at some much-anticipated characters, including Donkey Kong (voiced by Seth Rogan), Princess Peach (voiced by Anya Taylor-Joy), and Luigi (voiced by Charlie Day).

    The new trailer comes more than a month after fans got a glimpse in a teaser trailer that lit up the internet.

    The upcoming movie does have lots of references to the video games, like the obstacle course in Super Mario Bros. and Mario Kart, with a visit to Rainbow Road.

    Fans also get a peek inside Peach’s castle in the movie.

    The “Super Mario Bros. Movie” is set for release on April 7, 2023.

    See the trailer below.

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