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Tag: iab-technology & computing

  • iOS 17 release: See what’s new in iPhone features | CNN Business

    iOS 17 release: See what’s new in iPhone features | CNN Business



    CNN
     — 

    iPhone users: Today’s the day to update to Apple’s latest operating system, iOS17, and unlock a slew of new features that promise to make the iPhone experience more personal and intuitive.

    Apple first teased iOS17 at its annual Worldwide Developer Conference in early June, but you may have missed out on some of the details as the tech giant also unveiled its much-anticipated mixed-reality Vision Pro headset that same day.

    iPhone users can update to iOS17 starting Monday by clicking on the Software Update section in the phone’s Settings app. Of course, many users have gotten in the habit of backing up important photos or files before downloading the latest software update – or waiting until the second version rolls out (likely in the coming weeks) if they’re afraid of any bugs that could come with the first version of a next-generation mobile operating system.

    Here are some of the buzziest and most-anticipated new features that iPhone users can expect from iOS17.

    Live Voicemail and FaceTime video messages are here

    One of the buzziest new features, dubbed Live Voicemail, will transcribe a caller’s message in real time, giving iPhone users the decision whether to ignore the call or take it on while the other person is still on the line and leaving their message.

    Unknown numbers will go directly to Live Voicemail when you have the “Silence Unknown Callers” setting turned on.

    Moreover, FaceTime will also now give users the ability to leave video messages if someone doesn’t pick up a video call.

    With iOS17, Facetime calls will also get more expressive – with reactions such as hearts, balloons, fireworks and more effects that can be activated through simple gestures.

    Another update that may require some getting used to is saying just “Siri” to activate Apple’s voice assistant, instead of “Hey Siri.”

    Dropping “Hey” from Siri’s launch-phrase is meant to create a more natural way to activate the assistant. Moreover, Siri will also be able to better process back-to-back requests once activated.

    For example, instead of asking: “Hey, Siri, how tall is Shaquille O’Neal?” and “Hey, Siri, how old is Shaquille O’Neal?” You should be able to just say: “Siri, how tall is Shaquille O’Neal?” Followed by: “How old is he?”

    The new NameDrop feature in iOS17 makes it easier than ever to exchange contact information with a new friend. iPhone users can simply bring their iPhones close to each other, as they would when AirDropping something, to share names and Contact Posters.

    The Contact Poster update is another new feature iPhone users have been getting hyped about. This allows iPhone users to design a custom image that will show up when making calls. The update that allows users to choose their own caller ID photo and will give iPhone users a more consistent look no matter who they’re calling, Apple has said.

    iPhone users will also be able to personalize their contact card “poster” with a photo or memoji of choice.

    Autocorrect is also getting a comprehensive update, Apple said, with a transformer language model — or “a state-of-the-art on-device machine learning language model for word prediction,” according to the company.

    This refreshed design better supports typing and offers sentence-level autocorrections that can fix more types of grammatical mistakes. iPhone users will also now receive predictive text recommendations in-line as they type, making adding entire words or completing sentences as easy as tapping the space bar.

    The new iOS keyboard will also learn your habits over time, such as fixing words that you frequently misspell and leaving words alone that you intentionally thumbed in. As Craig Federighi, Apple’s head of software, put it in June: “In those moments where you just want to type a ducking word, well, the keyboard will learn it, too.”

    New StandBy mode, Journal app and much more

    iOS17 also introduces StandBy, a new full-screen experience with glanceable information designed to be viewed from a distance when the iPhone is on its side and charging. For example, when charging your iPhone at your nightstand or desk, you can personalize the display to feature a clock, favorite photos, or your most-used widgets.

    Apple’s new Journal app, which aims to help users reflect and practice gratitude through the daily practice of journaling, will also be available in a software update later this year.

    And there’s a whole lot more: Check out Apple’s handy 17-page guide on all of the newest features coming to iOS17.

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  • ChatGPT can now hear, see and speak as OpenAI gives the chatbot its most humanlike update | CNN Business

    ChatGPT can now hear, see and speak as OpenAI gives the chatbot its most humanlike update | CNN Business



    CNN
     — 

    You can now speak aloud to ChatGPT and hear the artificial intelligence-powered chatbot talk back.

    OpenAI, the startup behind the wildly-popular chatbot, announced Monday that it is rolling out new features including the ability to let users engage in a back-and-forth voice conversation with ChatGPT.

    In a company blog post Monday, OpenAI teased how this new feature can be used to “request a bedtime story for your family, or settle a dinner table debate.”

    The new voice features from OpenAI carry similarities to those currently offered by Amazon’s Alexa or Apple’s Siri voice assistants.

    In a demo of the new update shared by OpenAI, a user asks ChatGPT to come up with a story about “the super-duper sunflower hedgehog named Larry.” The chatbot is able to narrate a story out loud with a human-sounding voice that can also respond to questions, such as, “What was his house like?” and “Who is his best friend?”

    ChatGPT’s voice capability is “powered by a new text-to-speech model, capable of generating human-like audio from just text and a few seconds of sample speech,” Open AI said in the blogpost. The company added that it collaborated with professional voice actors to create the five different voices that can be used to animate the chatbot.

    OpenAI also said on Monday that it’s rolling out a new feature that lets the bot respond to prompts featuring an image. For example, you can snap a picture of the contents of your fridge and ask ChatGPT to help you come up with a meal plan using the ingredients you have. Moreover, the company said you can ask the chatbot to focus on a specific part of an image with its “drawing tool” in the app.

    The new features roll out in the app within the next two weeks for paying subscribers of ChatGPT’s Plus and Enterprise services. (Subscriptions to the Plus service are $20 a month, and its Enterprise service is currently only offered to business clients).

    The updates from OpenAI come amid an ongoing AI arms race within the tech sector, initially spurred by the public launch of ChatGPT late last year. In recent weeks, tech giants have been racing to roll out new updates that incorporate more AI-powered tools directly into their core products. Google last week announced a series of updates to its ChatGPT competitor Bard. Also last week, Amazon said it was bringing a generative AI-powered update to its Alexa voice assistant.

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  • FCC to reintroduce rules protecting net neutrality | CNN Business

    FCC to reintroduce rules protecting net neutrality | CNN Business



    CNN
     — 

    The US government aims to restore sweeping regulations for high-speed internet providers such as AT&T, Comcast and Verizon, reviving “net neutrality” rules for the broadband industry — and an ongoing debate about the internet’s future.

    The proposed rules from the Federal Communications Commission will designate internet service — both the wired kind found in homes and businesses as well as mobile data on cellphones — as “essential telecommunications” akin to traditional telephone services, said FCC Chairwoman Jessica Rosenworcel. The rules would ban internet service providers (ISPs) from blocking or slowing down access to websites and online content.

    In addition to the prohibitions on blocking and throttling internet traffic, the draft rules also seek to prevent ISPs from selectively speeding up service to favored websites or to those that agree to pay extra fees, Rosenworcel said, a move designed to prevent the emergence of “fast lanes” on the web that could give some websites a paid advantage over others.

    With Tuesday’s proposal, the FCC aims to restore Obama-era regulations that the FCC under Republican leadership rolled back during the Trump administration.

    But the proposal is likely to trigger strong pushback from internet providers who have spent years fighting earlier versions of the rules in court.

    Beyond their immediate impact to internet providers, the draft rules directly help US telecom regulators address a range of consumer issues in the longer run by allowing the FCC to bring its most powerful legal tools to bear, Rosenworcel said. Some of the priorities the FCC could address after the implementation of net neutrality rules include spam robotexts, internet outages, digital privacy and high-speed internet access, said Rosenworcel in a speech at the National Press Club Tuesday to announce the proposal.

    Rosenworcel said reclassifying internet service providers as essential telecommunications entities — by regulating them under Title II of the FCC’s congressional charter — would provide the FCC with clearer authority to adopt future rules governing everything from public safety to national security.

    Rosenworcel argued, “without reclassification, the FCC has limited authority to incorporate updated cybersecurity standards into our network policies.”

    She added that traditional telephone companies currently cannot sell customer data, but those restrictions do not apply to ISPs, which are regulated differently. “Does that really make sense? Do we want our broadband providers selling off where we go and what we do online?”

    Regulating internet providers using the most powerful tools at the FCC’s disposal would let the agency crack down harder on spam robotexts, Rosenworcel said, as spammers are “constantly evolving their techniques.”

    And the proposed rules could promote the Biden administration’s agenda to blanket the country in fast, affordable broadband, she argued, by granting internet providers the rights to put their equipment on telephone poles.

    “As a nation we are committed, post-pandemic, to building broadband for all,” she said. “So keep in mind that when you construct these facilities, utility poles are really important.”

    The FCC plans to vote Oct. 19 on whether to advance the draft rules by soliciting public feedback on them — a step that would precede the creation of any final rules.

    Net neutrality rules are more necessary than ever, Rosenworcel said in her speech, after millions of Americans discovered the vital importance of reliable internet access during the Covid-19 pandemic. Rosenworcel also made the case that a single, national standard on net neutrality could give businesses the certainty they need to speed up efforts to blanket the nation in fast, affordable broadband.

    But Rosenworcel’s push is already inviting a widespread revolt from internet providers that make up some of the most powerful and well-resourced groups in Washington.

    The proposal could also lead to more of what has helped make net neutrality a household term over the past decade: Late-night segments by comedians including John Oliver and Stephen Colbert; in-person demonstrations, including at the FCC’s headquarters and at the home of its chair; allegations of fake, AstroTurfed public comments and claims of cyberattacks; and even threats of violence.

    The latest net neutrality rulemaking reflects one of the most visible efforts of Rosenworcel’s chairwomanship — and one of her first undertakings since the US Senate this month confirmed Anna Gomez as the agency’s fifth commissioner, breaking a years-long 2-2 partisan deadlock at the FCC that had prevented hot-button initiatives from moving forward.

    The draft rules also show how a continued lack of federal legislation to establish a nationwide net neutrality standard has led to continued flip-flopping rules for ISPs with every change of political administration, along with a patchwork of state laws seeking to fill the gap.

    If approved next month, the FCC draft would be opened for public comment until approximately mid-December, followed by an opportunity for public replies lasting into January. A final set of rules could be voted on in the months following.

    For years, consumer advocacy groups have called for strong rules that could prevent ISPs from distorting the free flow of information on the internet using arbitrary or commercially motivated traffic rules.

    In contrast, ISPs have long argued that websites using up big portions of a network’s capacity, such as search engines or video streaming sites, should pay for the network demand their users generate. European Union officials are said to be considering just such a proposal.

    A third rail of broadband policy

    In attempting to revive the agency rules, the FCC is once again touching what has become the third rail of US broadband policy: Title II of the Communications Act of 1934, the law that gave the FCC its congressional mandate to regulate legacy telephone services.

    Tuesday’s proposal moves to regulate ISPs under Title II, which would give the FCC clearer authority to impose rules against blocking, throttling and paid prioritization of websites. The draft rules are substantially similar to the rules the FCC passed in 2015, the people said. The rules were upheld in 2016 by a federal appeals court in Washington in the face of an industry lawsuit.

    Soon after that ruling, however, Donald Trump won the White House, leading him to name Ajit Pai, then one of the FCC’s Republican commissioners, as its chair. Among Pai’s first acts as agency chief was to propose a rollback of the earlier net neutrality rules. The FCC voted in 2017 to reverse the rules, with Pai arguing that the repeal would accelerate private investment in broadband networks and free the industry from heavy-handed regulation. The repeal took effect in 2018.

    In the time since, ISPs have refrained from doing the kind of blocking and preferential treatment that net neutrality advocates have warned could occur, but Rosenworcel’s proposal highlights how concerns about that possibility have persisted.

    The Biden administration on Tuesday praised the FCC’s plan to reintroduce net neutrality rules for broadband providers.

    “President Biden supports net neutrality so that large corporations can’t pick and choose what content you can access online or charge you more for certain content,” said Hannah Garden-Monheit, special assistant to the president for economic policy. “Today’s announcement is a major step forward for American consumers and small businesses and demonstrates the importance of the president’s push to restore competition in our economy.”

    Net neutrality began as a bipartisan issue, with the George W. Bush administration issuing some of the earliest principles for an open internet that led to FCC attempts at concrete regulation in 2010 and again in 2015.

    The telecom and cable industries have long opposed the use of Title II to regulate broadband, arguing that it would be a form of government overreach, that telephone-style regulations are not suited for digital technologies, and that it would discourage private investment in broadband networks, hindering Americans’ ability to get online.

    “Treating broadband as a Title II utility is a dangerous and costly solution in search of a problem,” said USTelecom, a prominent industry trade group, in a statement Tuesday. “Congress must step in on this major question and end this game of regulatory ping-pong. The future of the open, vibrant internet we now enjoy hangs in the balance.”

    The reference to net neutrality as a “major question” offers clues about possible future litigation involving the proposal, as the Supreme Court has increasingly invoked the “major questions” doctrine to scrutinize federal agency initiatives.

    In her speech Tuesday, Rosenworcel acknowledged the coming pushback — as well as past incidents involving supporters of strong net neutrality rules.

    “I have every expectation that this process will get messy at times,” Rosenworcel said. “In the past, when this subject came up, we saw death threats against [former Republican FCC Chairman Ajit Pai] and his family. That is completely unacceptable, and I am grateful to law enforcement for bringing the individual behind these threats to justice. We had a fake bomb threat called in to disrupt a vote at the agency. We had protesters blocking [former Democratic FCC Chairman Tom Wheeler] in his driveway and keeping him from his car. We saw a dark effort to tear down a pro-net neutrality nominee for the agency.”

    Part of what made the FCC’s 2015 rules particularly controversial, however, was that classifying ISPs as Title II providers meant the agency could theoretically attempt to set prices for internet service directly, a prospect that ISPs widely feared but that the FCC in 2015 promised not to do.

    Tuesday’s proposal makes the same commitment, the people said, forbearing from 26 provisions of Title II and more than 700 other agency rules that could be seen as intrusive. The draft rules also prohibit the FCC from forcing ISPs to share their network infrastructure with other, competing internet providers, the people said, a concept known as network unbundling.

    On top of fierce industry pushback in the FCC’s comments process, the proposal could also lead to legal challenges against the FCC. While the 2015 net neutrality rules survived on appeal, suggesting the current FCC may be on firm ground to issue the current proposed rules, the draft comes as the Supreme Court has moved to reconsider the power of federal agencies by scrutinizing courts’ decades-long deference to their expert authority.

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  • Google unveils Pixel 8 built for ‘the generative AI era’ | CNN Business

    Google unveils Pixel 8 built for ‘the generative AI era’ | CNN Business



    CNN
     — 

    There’s nothing particularly new about Google’s latest-generation Pixel 8 smartphone hardware. That’s why the company is pushing hard to tout its AI-powered new software, which Google says was built specifically for the “first phone of the generative AI era.”

    At a press event in New York City, Google

    (GOOG)
    showed off the new Pixel 8 and Pixel 8 Pro devices, which largely look the same as the year prior, albeit with more rounded edges. But inside, its new G3 Tensor chip unlocks an AI-powered world aimed at simplifying your life, from asking the device to summarize news articles and websites to using Google

    (GOOG)
    Assistant to field phone calls and tweaking photos to move or resize objects.

    The 6.3-inch Pixel 8 and the 6.7-inch Pixel 8 Pro comes with a brighter display, new camera system and longer-lasting battery life. The Pixel 8 is available in three colors – hazel, rose and obsidian – and starts at $699, about $100 less than the baseline iPhone 14 with the same amount of storage. (That’s about $100 more than last year’s Pixel 7).

    Meanwhile, the Pixel 8 Pro – which touts a polished aluminum frame and a matte back glass this year – now has the ability to take better low-light photos and sharper selfies. It starts at $999 – the same price as the iPhone 15 Pro – and is available in three colors: bay, porcelain and obsidian.

    Although these upgrades are mostly incremental, the AI enhancements and related features may appeal to tech enthusiasts who want the latest version of Android and an alternative to Apple or Samsung smartphones.

    At the same time, Google’s Pixel line remains a niche product. Its global market share for smartphones remains about 1%, according to data from ABI Research. Google also limits sales to only a handful of countries, so keeping the volume low has been strategic as Google remains predominantly a software company with many partners running Android.

    Reece Hayden, an analyst at ABI Research, said Google is looking to establish itself as an early market leader amid the “generative AI-related hysteria,” which kicked into high gear late last year with the introduction of ChatGPT. Generative AI refers to a type of artificial intelligence that can create new content, such as text and images, in response to user prompts.

    “[Adding it to the Pixel] creates further product differentiation by leveraging internal capabilities that Apple may not have,” said Hayden.

    He expects this announcement to be the first of many similar efforts coming to hardware over the next year, especially among brands who’ve already made investments in this area.

    Here’s a closer look at what Google announced and some of the standout new AI features:

    A Google employee demonstrates manual focus features of the new Google Pixel 8 Pro Phone in New York City, U.S., October 4, 2023.

    Google showed off a handful of photo features coming to its Pixel line, including Magic Editor which uses generative AI to reposition and resize a subject. Similarly, a new Audio Magic Eraser tool that lets users erase distracting sounds from videos.

    Another tool called Best Take snaps a series of photos and then aggregates the faces into one shot so everyone looks their best. And a a new Zoom enhanced feature lets users pinch to zoom in about 30 times after a photo is taken to focus in on and edit a specific area.

    The company said these efforts aim to “let you capture every moment just how you want to remember it.”

    Although the tools intend to give users more control over their photos, some analysts like Thomas Husson at market research firm Forrester believe it will be harder to distinguish between what’s real and what’s not.

    “The fact that Google refers to a ‘Magic Eraser’ will blur the distinction between real photos and heavily edited ones,” Husson said. But he warns an uptick in deepfake apps already makes it hard to decipher the authenticity of some shots. “You don’t really need Google AI for that.”

    The company said Google Assistant will now sound more realistic when it engages with callers. Google’s screen call tool already lets Assistant field incoming calls, speak to callers and determine who’s on the line before pushing it through to the user. But its robotic voice will sound increasing more natural, the company said.

    Google is also bringing the capabilities of its Bard AI chatbot to Google Assistant, so it will be able to do more than set an alarm or tell the weather. With its new generative AI capabilities, it will be able to review important emails in a user’s inbox or reveal more about a hotel that popped up on their Instagram feed. Assistant will also be able to understand user questions in voice, text and images.

    “With generative AI on the scene, it’s really creating a lot of new opportunities to build an even more intuitive and intelligent and personalized digital assistant,” Sissie Hsiao, general manager for Google Assistant and Bard, told CNN.

    In addition to making Assistant more useful, the tool will make it easier for more users to interact with Google’s six-month-old Bard on interfaces they may already frequently engage with. Last month, Google rolled out a major expansion of Bard, allowing users to link the tool to their Gmail and other Google Workspace tools and making it easier to fact check the AI’s responses.

    Google launched Assistant with Bard to a small test group on Wednesday, and it will be more widely available to Android and iOS users in the coming months.

    AI is also getting smarter on the Pixel Watch 2 ($349), its second-generation smartwatch. Users can use Bard capabilities via an upgraded Google Assistant watch app to ask it how they slept and get other health insights.

    In addition, the Pixel 2 features a new heart rate sensor, which works alongside a new AI-driven heart rate algorithm, to provide a more accurate heart rate reading than before. But Hayden said he doesn’t think more AI will add too much more to its existing value proposition.

    “Smart watches already include a fair amount of AI, and Pixel is no different,” he said.

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  • TikTok steps up efforts to counter misinformation about Israel-Hamas war | CNN Business

    TikTok steps up efforts to counter misinformation about Israel-Hamas war | CNN Business


    London
    CNN
     — 

    TikTok is stepping up efforts to counter misinformation, incitement to violence and hate relating to the Israel-Hamas war on its online platform, it announced Sunday, days after the European Union (EU) warned social media companies they risked falling foul of the bloc’s content moderation laws.

    As part of its measures, TikTok is launching a command center to coordinate the work of its “safety professionals” around the world, improving the software it uses to automatically detect and remove graphic and violent content, and hiring more Arabic and Hebrew speakers to moderate content.

    TikTok said in a statement that, following the brutal attack by Hamas on Israeli civilians on October 7, it had “immediately mobilized significant resources and personnel to help maintain the safety of [its] community and integrity of [its] platform.”

    “We do not tolerate attempts to incite violence or spread hateful ideologies,” it added. “We have a zero-tolerance policy for content praising violent and hateful organizations and individuals.”

    The firm, owned by China’s ByteDance, said it had already removed more than 500,000 videos and shut down 8,000 livestream videos from the “impacted region” since the Hamas attack.

    As the conflict escalates — Israel has blocked the provision of electricity, food, fuel and water to Gaza, and has been signaling it is preparing for a ground invasion of the area — millions have turned to social media for updates, while misinformation has proliferated on these sites.

    One recent TikTok video, seen by more than 300,000 users and reviewed by CNN, promoted conspiracy theories about the origins of the Hamas attack, including false claims that it was orchestrated by the media.

    Last week, the EU told social media companies they needed to better protect “children and teenagers from violent content and terrorist propaganda” on their platforms.

    EU Commissioner Thierry Breton wrote to TikTok Thursday, in a letter shared on X, the platform formerly known as Twitter, saying the company had 24 hours to detail the steps it was taking to comply with EU rules on content moderation. Breton has sent similar letters to X, Google and Meta, the owner of Instagram and Facebook.

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  • Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business

    Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business



    CNN
     — 

    Dozens of states sued Instagram-parent Meta on Tuesday, accusing the social media giant of harming young users’ mental health through allegedly addictive features such as infinite news feeds and frequent notifications that demand users’ constant attention.

    In a federal lawsuit filed in California by 33 attorneys general, the states allege that Meta’s products have harmed minors and contributed to a mental health crisis in the United States.

    “Meta has profited from children’s pain by intentionally designing its platforms with manipulative features that make children addicted to their platforms while lowering their self-esteem,” said Letitia James, the attorney general for New York, one of the states involved in the federal suit. “Social media companies, including Meta, have contributed to a national youth mental health crisis and they must be held accountable.”

    Eight additional attorneys general sued Meta on Tuesday in various state courts around the country, making similar claims as the massive multi-state federal lawsuit.

    And the state of Florida sued Meta in its own separate federal lawsuit, alleging that Meta misled users about potential health risks of its products.

    Tuesday’s multistate federal suit — filed in the US District Court for the Northern District of California — accuses Meta of violating a range of state-based consumer protection statutes, as well as a federal children’s privacy law known as COPPA that prohibits companies from collecting the personal information of children under 13 without a parent’s consent.

    “Meta’s design choices and practices take advantage of and contribute to young users’ susceptibility to addiction,” the complaint reads. “They exploit psychological vulnerabilities of young users through the false promise that meaningful social connection lies in the next story, image, or video and that ignoring the next piece of social content could lead to social isolation.”

    The federal complaint calls for court orders prohibiting Meta from violating the law and, in the case of many states, unspecified financial penalties.

    “We share the attorneys generals’ commitment to providing teens with safe, positive experiences online, and have already introduced over 30 tools to support teens and their families,” Meta said in a statement. “We’re disappointed that instead of working productively with companies across the industry to create clear, age-appropriate standards for the many apps teens use, the attorneys general have chosen this path.”

    The wave of lawsuits is the result of a bipartisan, multistate investigation dating back to 2021, Colorado Attorney General Phil Weiser said at a press conference Tuesday, after Facebook whistleblower Frances Haugen came forward with tens of thousands of internal company documents that she said showed how the company knew its products could have negative impacts on young people’s mental health.

    “We know that there were decisions made, a series of decisions to make the product more and more addictive,” Tennessee Attorney General Jonathan Skrmetti told reporters. “And what we want is for the company to undo that, to make sure that they are not exploiting these vulnerabilities in children, that they are not doing all the little, sophisticated, tricky things that we might not pick up on that drive engagement higher and higher and higher that allowed them to keep taking more and more time and data from our young people.”

    Tuesday’s multipronged legal assault also marks the newest attempt by states to rein in large tech platforms over fears that social media companies are fueling a spike in youth depression and suicidal ideation.

    “There’s a mountain of growing evidence that social media has a negative impact on our children,” said California Attorney General Rob Bonta, “evidence that more time on social media tends to be correlated with depression with anxiety, body image issues, susceptibility to addiction and interference with daily life, including learning.”

    The suits follow a raft of legislation in states ranging from Arkansas to Louisiana that clamp down on social media by establishing new requirements for online platforms that wish to serve teens and children, such as mandating that they obtain a parent’s consent before creating an account for a minor, or that they verify users’ ages.

    In some cases, the tech industry has challenged those laws in court — for example, by claiming that Arkansas’ social media law violates residents’ First Amendment rights to access information.

    New Hampshire Attorney General John Formella said the states expect Meta to mount a similar defense but that the company will not succeed because the multistate suit targets Meta’s conduct, not speech.

    Formella added that in addition to consumer protection claims, New Hampshire is also bringing negligence and product liability claims as part of the federal suit.

    The complaints filed in state courts allege violations of various state-specific laws. For example, the complaint from District of Columbia Attorney General Brian Schwalb accuses Meta of violating the district’s consumer protection statute by misleading the public about the safety of company platforms.

    Tuesday’s lawsuits come days before a federal judge in California is set to consider a slew of similar allegations against the wider tech industry. In a hearing Friday morning, District Judge Yvonne Gonzalez Rogers is expected to hear arguments by Google, Meta, Snap and TikTok urging her to dismiss nearly 200 complaints involving private plaintiffs that have accused the companies of addicting or harming their users.

    It is possible that Tuesday’s multistate suit could be merged with the consumers’ cases, said Weiser, adding that the main difference of the multistate case is that it could lead to nationwide relief.

    “The coordination that we bring across the AG community, we believe is invaluable to this,” Weiser said.

    Participating in Tuesday’s multistate federal suit are California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Virginia, Washington, West Virginia and Wisconsin.

    The additional suits filed in state courts were brought by the District of Columbia, Massachusetts, Mississippi, New Hampshire, Oklahoma, Tennessee, Utah and Vermont.

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  • Hackers take on ChatGPT in Vegas, with support from the White House | CNN Business

    Hackers take on ChatGPT in Vegas, with support from the White House | CNN Business


    Las Vegas, Nevada
    CNN
     — 

    Thousands of hackers will descend on Las Vegas this weekend for a competition taking aim at popular artificial intelligence chat apps, including ChatGPT.

    The competition comes amid growing concerns and scrutiny over increasingly powerful AI technology that has taken the world by storm, but has been repeatedly shown to amplify bias, toxic misinformation and dangerous material.

    Organizers of the annual DEF CON hacking conference hope this year’s gathering, which begins Friday, will help expose new ways the machine learning models can be manipulated and give AI developers the chance to fix critical vulnerabilities.

    The hackers are working with the support and encouragement of the technology companies behind the most advanced generative AI models, including OpenAI, Google, and Meta, and even have the backing of the White House. The exercise, known as red teaming, will give hackers permission to push the computer systems to their limits to identify flaws and other bugs nefarious actors could use to launch a real attack.

    The competition was designed around the White House Office of Science and Technology Policy’s “Blueprint for an AI Bill of Rights.” The guide, released last year by the Biden administration, was released with the hope of spurring companies to make and deploy artificial intelligence more responsibly and limit AI-based surveillance, though there are few US laws compelling them to do so.

    In recent months, researchers have discovered that now-ubiquitous chatbots and other generative AI systems developed by OpenAI, Google, and Meta can be tricked into providing instructions for causing physical harm. Most of the popular chat apps have at least some protections in place designed to prevent the systems from spewing disinformation, hate speech or offer information that could lead to direct harm — for instance, providing step-by-step instructions for how to “destroy humanity.”

    But researchers at Carnegie Mellon University were able to trick the AI into doing just that.

    They found OpenAI’s ChatGPT offered tips on “inciting social unrest,” Meta’s AI system Llama-2 suggested identifying “vulnerable individuals with mental health issues… who can be manipulated into joining” a cause and Google’s Bard app suggested releasing a “deadly virus” but warned that in order for it to truly wipe out humanity it “would need to be resistant to treatment.”

    Meta’s Llama-2 concluded its instructions with the message, “And there you have it — a comprehensive roadmap to bring about the end of human civilization. But remember this is purely hypothetical, and I cannot condone or encourage any actions leading to harm or suffering towards innocent people.”

    The findings are a cause for concern, the researchers told CNN.

    “I am troubled by the fact that we are racing to integrate these tools into absolutely everything,” Zico Kolter, an associate professor at Carnegie Mellon who worked on the research, told CNN. “This seems to be the new sort of startup gold rush right now without taking into consideration the fact that these tools have these exploits.”

    Kolter said he and his colleagues were less worried that apps like ChatGPT can be tricked into providing information that they shouldn’t — but are more concerned about what these vulnerabilities mean for the wider use of AI since so much future development will be based off the same systems that power these chatbots.

    The Carnegie researchers were also able to trick a fourth AI chatbot developed by the company Anthropic into offering responses that bypassed its built-in guardrails.

    Some of the methods the researchers used to trick the AI apps were later blocked by the companies after the researchers brought it to their attention. OpenAI, Meta, Google and Anthropic all said in statements to CNN that they appreciated the researchers sharing their findings and that they are working to make their systems safer.

    But what makes AI technology unique, said Matt Fredrikson, an associate professor at Carnegie Mellon, is that neither the researchers, nor the companies who are developing the technology, fully understand how the AI works or why certain strings of code can trick the chatbots into circumventing built-in guardrails — and thus cannot properly stop these kinds of attacks.

    “At the moment, it’s kind of an open scientific question how you could really prevent this,” Fredrikson told CNN. “The honest answer is we don’t know how to make this technology robust to these kinds of adversarial manipulations.”

    OpenAI, Meta, Google and Anthropic have expressed support for the so-called red team hacking event taking place in Las Vegas. The practice of red-teaming is a common exercise across the cybersecurity industry and gives companies the opportunities to identify bugs and other vulnerabilities in their systems in a controlled environment. Indeed, the major developers of AI have publicly detailed how they have used red-teaming to improve their AI systems.

    “Not only does it allow us to gather valuable feedback that can make our models stronger and safer, red-teaming also provides different perspectives and more voices to help guide the development of AI,” an OpenAI spokesperson told CNN.

    Organizers expect thousands of budding and experienced hackers to try their hand at the red-team competition over the two-and-a-half-day conference in the Nevada desert.

    Arati Prabhakar, the director of the White House Office of Science and Technology Policy, told CNN the Biden administration’s support of the competition was part of its wider strategy to help support the development of safe AI systems.

    Earlier this week, the administration announced the “AI Cyber Challenge,” a two-year competition aimed at deploying artificial intelligence technology to protect the nation’s most critical software and partnering with leading AI companies to utilize the new technology to improve cybersecurity. 

    The hackers descending on Las Vegas will almost certainly identify new exploits that could allow AI to be misused and abused. But Kolter, the Carnegie researcher, expressed worry that while AI technology continues to be released at a rapid pace, the emerging vulnerabilities lack quick fixes.

    “We’re deploying these systems where it’s not just they have exploits,” he said. “They have exploits that we don’t know how to fix.”

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  • X appears to slow load times for links to several news outlets and rival platforms | CNN Business

    X appears to slow load times for links to several news outlets and rival platforms | CNN Business


    New York
    CNN
     — 

    Link loading times to some Twitter competitors and news media sites posted to X, the social media platform formerly known as Twitter, appeared to be delayed or throttled for much of Tuesday.

    Links posted to X that directed to sites including the New York Times, Reuters, Facebook, Substack and X competitors Bluesky and Threads took around 5 seconds to load — a notable slowdown from the typically nearly instantaneous loading times, according to observations by CNN reporters. Many other sites, such as NBA.com, CNN, retailer Target and other sites did not appear to be affected by the issue.

    The delays were first reported by users of the technology forum Hacker News.

    The reason for the delays in loading links to some sites was not clear. X did not respond to multiple requests for comment from CNN. The site has been plagued by technical issues after Musk bought the site last year and laid off the majority of the staff. And the issue seemed to have resolved for some users by Tuesday afternoon.

    However, the delays affected the sites for rival platforms, as well as news outlets that Twitter owner Elon Musk has previously criticized. Musk earlier this year feuded with the New York Times over its unwillingness to pay for his platform’s new paid verification program, and he has separately called for the outlet to be “cancelled.”

    The apparent delay in visiting links to the New York Times was easy to verify with simple commands on a computer. Will Dormann, a cybersecurity researcher, plugged the New York Times website into a basic command program on his Mac and compared the loading time for that website with that of a dummy website. The load time for the New York Times site was about 4.5 seconds longer, Dormann told CNN Tuesday.

    X, like other platforms, uses a link-shortener service to collect information on users who click on links shared on the platform. When a link for a New York Times article plugged into X’s link-shortener takes far longer to load than other websites using the same link-shortening service, “this is the clear indicator that there are server-side [at the X-operated shortener] shenanigans going on,” Dormann told CNN.

    The New York Times said in a statement to CNN that it had observed the delay, but, “We have not received any explanation from the platform about this move.”

    “While we don’t know the rationale behind the application of this time delay, we would be concerned by targeted pressure applied to any news organization for unclear reasons,” it said in the statement. “The mission of The New York Times is to report the news impartially without fear or favor, and we’ll continue to do so, undeterred by any attempts to hinder this.”

    Meta, the parent company of Facebook and Threads, did not respond to a request for comment on the delay. But CEO Mark Zuckerberg responded to a post about the issue on Threads with a thinking face emoji.

    Musk and Zuckerberg have in recent weeks been making plans to take one another on in a cage fight, although Zuckerberg this week signaled that the fight may be off because he believes Musk “isn’t serious.” “Elon won’t confirm a date, then says he needs surgery, and now asks to do a practice round in my backyard instead,” Zuckerberg wrote on Threads Sunday. Musk on Monday appeared to respond by suggesting in a series of tweets that he might show up at Zuckerberg’s home to fight anyway.

    Substack cofounders Chris Best, Hamish McKenzie and Jairaj Sethi said in a statement to CNN that they hoped X would reverse the delay but that “Substack was created in direct response to this kind of behavior by social media companies.”

    “Writers cannot build sustainable businesses if their connection to their audience depends on unreliable platforms that have proven they are willing to make changes that are hostile to the people who use them,” the Substack cofounders said.

    Reuters said in a statement that it was aware of reports “of a delay in opening links to Reuters stories on X. We are looking into the matter.”

    Bluesky did not immediately respond to a request for comment about the link delay.

    X briefly sparked backlash in December over a decision to ban links to rival social media services, including Facebook, Instagram and Twitter alternatives like Mastodon, which was later reversed. The platform has also faced a series of outages and technical issues in recent months that have affected users’ ability to read tweets, view photos and click through links after Musk slashed the company’s staff and cut back on infrastructure spending.

    -CNN’s Jon Passantino and Oliver Darcy contributed to this report.

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  • Nvidia’s quarterly sales double on the back of AI boom | CNN Business

    Nvidia’s quarterly sales double on the back of AI boom | CNN Business


    New York
    CNN
     — 

    The artificial intelligence boom continues to fuel a blockbuster year for chipmaker Nvidia.

    Nvidia’s stock jumped as much as 9% in after-hours trading Wednesday after the Santa Clara, California-based company posted year-over-year sales growth of 101%, to $13.5 billion for the three months ended in July.

    The results were even stronger than the $11.2 billion in revenue that Wall Street analysts expected. The company’s non-GAAP adjusted profits grew a stunning 429% from the same period in the prior year to $2.70 per share, also beating analysts’ expectations. GAAP stands for generally accepted accounting principles.

    Nvidia’s stock has climbed by just over 220% since the start of this year amid a surge in the popularity of and demand for artificial intelligence technology. The American chipmaker produces processors that power generative AI, technology that can create text, images and other media — and which forms the foundation of buzzy new services such as ChatGPT.

    “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Nvidia CEO Jensen Huang said in a statement, adding that the company is working with “Leading enterprise IT system and software providers … to bring NVIDIA AI to every industry.”

    “The race is on to adopt generative AI,” he said.

    Huang had said following the company’s May earnings report that the firm was ramping up its supply to meet “surging demand.”

    “Nvidia’s hardware has become indispensable to the AI-driven economy,” Insider Intelligence senior analyst Jacob Bourne said in emailed commentary. “The pressing question is whether Nvidia can consistently exceed the now-higher expectations.”

    This story is developing and will be updated.

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  • Wall Street Journal: China bans use of iPhones for government officials | CNN Business

    Wall Street Journal: China bans use of iPhones for government officials | CNN Business


    Hong Kong/New York
    CNN
     — 

    China has banned the use of iPhones for central government officials, The Wall Street Journal reported, citing unnamed people familiar with the matter.

    The WSJ reports that managers have been notifying staff of the ban via chat groups or meetings.

    CNN has reached out to China’s Ministry of Foreign Affairs and Apple (AAPL), but has not received a response.

    A source who regularly deals with Chinese central government agencies told CNN that Chinese officials had already been following an unwritten rule of shunning iPhones for months despite the absence of a formal policy. The source asked not to be named due to the sensitivity of the subject.

    Last June, CNN reported that some Chinese government ministries had banned Teslas from entering their premises over security fears.

    Apple CEO Tim Cook made a high profile visit to the country in March. China is a significant market and manufacturing center for the company, accounting for around 19% of its overall revenue.

    The iPhone ban for government officials may be retaliation for similar moves made by the US against Chinese tech, and could have a chilling effect on Apple and other large foreign brands with an established China presence.

    China’s Huawei and ZTE have long been subject to US restrictions. And in November 2022, the Biden administration banned approvals of new telecommunications equipment from both companies because they pose “an unacceptable risk” to US national security.

    TikTok has also been banned from devices issued by multiple US institutions, including the House of Representatives, the City of New York, Montana, New Jersey, Ohio, Texas and Georgia, over concerns that the Chinese government could have access to users’ data through its Chinese parent company, Bytedance.

    — CNN’s Beijing bureau contributed to this article.

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  • Meta’s Threads is temporarily blocking searches about Covid-19 | CNN Business

    Meta’s Threads is temporarily blocking searches about Covid-19 | CNN Business



    CNN
     — 

    Threads, the much-hyped social media app from Facebook-parent Meta, is taking heat for blocking searches for “coronavirus,” “Covid,” and other pandemic-related queries.

    The tech giant’s decision to block coronavirus-related searches on its service comes as the United States deals with a recent uptick in Covid-19 hospitalizations, per CDC data, and more than three years into the global pandemic.

    News of Threads blocking searches related to the coronavirus was first reported by The Washington Post.

    A Meta spokesperson told CNN that the company just began rolling out keyword search for Threads to additional countries last week.

    “The search functionality temporarily doesn’t provide results for keywords that may show potentially sensitive content,” the statement added. “People will be able to search for keywords such as ‘COVID’ in future updates once we are confident in the quality of the results.” 

    As of Monday, searches on the Threads app conducted by CNN for “coronavirus,” “Covid” and “Covid-19” yielded a blank page with the text: “No results.” Searches for “vaccine” also prompted no results. Typing any of these queries into the Threads app does, however, offer a link directing users to the CDC’s website on Covid-19 or vaccinations, depending on the search.

    Meta did not disclose what other keyword searches currently yield no results.

    Meta’s Facebook and other social media platforms faced controversy in the early part of the pandemic for the apparent spread of Covid-19-related misinformation online.

    Meta officially launched Threads in early July, and the app quickly garnered more than 100 million sign-ups in its first week on the heels of months of chaos at Twitter, which is now known as X. But much of the buzz faded somewhat in the weeks that followed as users realized the bare-bones platform still lacked many of the features that made X popular with users.

    Threads released its much-requested web version late last month, and its keyword search about a week ago. But the current limitations around its search function highlights how the platform still has some kinks to work through before it can fully replace the real-time search and engagement experience that social media users have historically relied on with X.

    –CNN’s Clare Duffy contributed to this report.

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  • Google rolls out a major expansion of its Bard AI chatbot | CNN Business

    Google rolls out a major expansion of its Bard AI chatbot | CNN Business


    New York
    CNN
     — 

    Google’s Bard artificial intelligence chatbot is evolving.

    The company on Tuesday announced a series of updates to Bard that will give the chatbot access to Google’s full suite of tools — including YouTube, Google Drive, Google Flights and others — to assist users in a wider variety of tasks. Users will be able, for example, to ask Bard to plan an upcoming trip, complete with real flight options. Or a user could ask the tool to summarize meeting notes made in a recent Google Drive document.

    The connections to Google’s other services are just some of the improvements to Bard coming Tuesday. Other updates include the ability to communicate with the chatbot in multiple languages, new fact-checking capabilities and a broad update to the large language model that the tool is built on.

    The new features mark the biggest update to Google’s Bard in the six months since it was widely released to the public.

    The update comes as Google and other tech giants, including Microsoft and ChatGPT maker OpenAI, race to roll out increasingly sophisticated consumer-facing AI technologies, and to convince users that such tools are more than just a gimmick. Google — which earlier this year reportedly issued an internal “code red” after OpenAI beat it to the release of its AI chatbot — is now flexing the power of its other, widely used software programs that can make Bard more useful.

    “These services in conjunction with one another are very, very powerful,” Sissie Hsiao, general manager for Google Assistant and Bard, told CNN ahead of the launch. “Bringing all the power of these tools together will save people time — in 20 seconds, in minutes, you can do something that would have taken maybe an hour or more.”

    Previously, Bard had been able to help with tasks like writing essay drafts or planning a friend’s baby shower based on Google’s large language model, an AI algorithm trained on vast troves of data. But now, Bard will draw on information from Google’s various other services, too. With the new extensions, Bard will now pull information from YouTube, Google Maps, Flights and Hotels by default.

    That will allow users to ask Bard things like”Give me a template for how to write a best man speech and show me YouTube videos about them for inspiration,” or for trip suggestions, complete with driving directions, according to Google. Bard users can opt to disable these extensions at any time.

    Users can also opt in to link their Gmail, Docs and Google Drive to Bard so the tool can help them analyze and manage their personal information. The tool could, for example, help with a query like: “Find the most recent lease agreement from my Drive and check how much the security deposit was,” Google said.

    The company said that users’ personal Google Workspace information will not be used to train Bard or for targeted advertising purposes, and that users can withdraw their permission for the tool to access their information at any time.

    “This is the first step in a fundamentally new capability for Bard – the ability to talk to other apps and services to provide more helpful responses,” Google said of the extensions tool. It added that, “this is a very young area of AI,” that it will continue to improve based on user feedback.

    Bard is also launching a “double check” button that will allow users to evaluate the accuracy of its responses. When a user clicks the button, certain segments of Bard’s response will be highlighted to show where Google Search results either confirm or differ from what the chatbot said. The double check feature is designed to counter a common AI issue called “hallucinations,” where an AI tool confidently makes a statement that sounds real, but isn’t actually based in fact.

    “We’re constantly working on reducing those hallucinations in Bard,” Hsiao said. But in the meantime, the company wanted to create a way to address them. “You can kind of think of it as spell check, but double checking the facts.”

    Bard will now also allow one user to share a conversation with the chatbot with another person, who can then expand on the chat themselves.

    It’s still early days for Bard, which launched in March as an “experiment” and still notes on its website that the tool “may display inaccurate or offensive information that doesn’t represent Google’s views.” But this latest update offers a glimpse at how Google may ultimately seek to incorporate generative AI into its various services.

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  • Amazon invests up to $4 billion in Anthropic AI in exchange for minority stake and further AWS integration | CNN Business

    Amazon invests up to $4 billion in Anthropic AI in exchange for minority stake and further AWS integration | CNN Business



    CNN
     — 

    Amazon said on Monday that it’s investing up to $4 billion into the artificial intelligence company Anthropic in exchange for partial ownership and Anthropic’s greater use of Amazon Web Services (AWS), the e-commerce giant’s cloud computing platform.

    The deepening partnership between the two companies highlights how some large tech firms with massive cloud computing resources are increasingly leveraging those assets to gain a bigger foothold in AI.

    As part of the deal, AWS will become the “primary” cloud provider for Anthropic, with the AI company using Amazon’s cloud platform to do “the majority” of its AI model development and research into AI safety, the companies said. That will include using Amazon’s suite of in-house AI chips.

    Anthropic also made a “long-term commitment” to offer its AI models to AWS customers, Amazon said, and promised to give AWS users early access to features such as the ability to adapt Anthropic models for specific use cases.

    “With today’s announcement, customers will have early access to features for customizing Anthropic models, using their own proprietary data to create their own private models, and will be able to utilize fine-tuning capabilities via a self-service feature,” Amazon said in a release.

    Anthropic already offers its models to AWS users through Amazon Bedrock, Amazon’s one-stop shop for AI products. Bedrock also provides access to models from other providers including Stability AI and AI21 Labs, along with proprietary models developed by Amazon itself.

    In a release, Anthropic said that Amazon’s minority stake would not change its corporate governance structure nor its commitments to developing AI responsibly.

    “We will conduct pre-deployment tests of new models to help us manage the risks of increasingly capable AI systems,” Anthropic said.

    Amazon and Anthropic both made commitments to the Biden administration this year to conduct external audits of its AI systems before releasing them to the public.

    Amazon’s investment in Anthropic follows similar moves by cloud leaders such as Microsoft. In 2019, Microsoft invested $1 billion in ChatGPT-maker OpenAI. More recently, Microsoft made a $10 billion investment in OpenAI this year and launched a push to bring OpenAI’s technology into consumer-facing Microsoft products, such as Bing.

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  • Major Supreme Court cases to watch in the new term | CNN Politics

    Major Supreme Court cases to watch in the new term | CNN Politics



    CNN
     — 

    Looking at an upcoming Supreme Court term from the vantage point of the first Monday in October rarely tells the full story of what lies ahead, but the docket already includes major cases concerning the intersection between the First Amendment and social media, gun rights, racial gerrymandering and the power of the executive branch when it comes to regulation.

    The court will still determine if it will hear oral arguments on issues such as medication abortion and transgender rights, not to mention the possibility of a flurry of emergency requests related to the 2024 election.

    Here are some of the key cases on which the court will hear oral arguments this term:

    After the Supreme Court issued a major decision last year expanding gun rights nationwide, lower courts began reconsidering hundreds of firearms regulations across the country under the new standard crafted by Justice Clarence Thomas that a gun law passes legal muster only if it is rooted in history and tradition.

    On the heels of that decision, a federal appeals court invalidated a federal law that bars an individual who is subject to a domestic violence restraining order from possessing a firearm. That law, the 5th US Circuit Court of Appeals ruled, “is an outlier that our ancestors would never have accepted.”

    The Biden administration has appealed, saying the ruling “threatens grave harms for victims of domestic violence.”

    In 2019, nearly two-thirds of domestic homicides in the United States were committed with a gun, according to Everytown for Gun Safety.

    Lawyers for Zackey Rahimi, a man who was prosecuted under the law in 2020 after a violent altercation with his girlfriend, have urged the justices to let the lower court opinion stand, arguing in part that there is no law from the founding era comparable to the statute at hand.

    Racial gerrymandering: South Carolina congressional maps

    Justices will consider a congressional redistricting plan drawn by South Carolina’s Republican-controlled legislature in the wake of the 2020 census. Critics say it was designed with discriminatory purpose and amounts to an illegal racial gerrymander.

    The case focuses the court’s attention once again on the issue of race and map drawing and comes after the court ordered Alabama to redraw the state’s congressional map last term to account for the fact that the state is 27% black. The decision, penned by Chief Justice John Roberts, surprised liberals who feared the court was going to make it harder for minorities to challenge maps under Section 2 of the historic Voting Rights Act.

    In the latest case, the South Carolina State Conference of the NAACP and a Black voter named Taiwan Scott, are challenging the state’s congressional District 1 that is located along the southeastern coast and is anchored in Charleston County. Although the district consistently elected Republicans from 1980 to 2016, in 2018 a Democrat was elected in a political upset, though a Republican recaptured the seat in 2020.

    The person who devised the map has testified that he was instructed to make the district “more Republican leaning,” but that he did not consider race. He did, however, acknowledge that he examined racial data after drafting each version and that the Black voting age population of the district was likely viewed during the drafting process.

    A three-judge district court panel struck down the plan in January, saying that race had been the predominant motivating factor. “To achieve a target of 17% African American population,” the court said, “Charleston County was racially gerrymandered and over 30,000 African Americans were removed from their home district.”

    Expert explains why Justice Thomas’ gifts from wealthy friends are problematic

    In the latest attack against the so-called administrative state, the justices are considering whether to overturn decades old precedent to scale back the power of federal agencies, impacting how the government tackles issues such as climate change, immigration, labor conditions and public health.

    At issue is an appeal from herring fishermen in the Atlantic who say the National Marine Fisheries Service does not have the authority to require them to pay the salaries of government monitors who ride aboard the fishing vessels.

    In agreeing to hear the case, the justices signaled they will reconsider a 1984 decision – Chevron v. Natural Resources Defense Council – that sets forward factors to determine when courts should defer to a government agency’s interpretation of the law. First, they examine a statute to see if Congress’ intent is clear. It if is – then the matter is settled. But if there is ambiguity – the court defers to the agency’s expertise.

    Solicitor General Elizabeth Prelogar told the justices that the agency was acting within the scope of its authority under the Magnuson-Stevens Fishery Conservation and Management Act and said the fishermen are not responsible for all the costs. The regulation was put in place to combat overfishing of the fisheries off the coasts of the US.

    Representing the fishermen, former Solicitor General Paul Clement argues that the government exceeded its authority and needs direct and clear congressional authorization to make such a demand. “The ‘net effect’ of Chevron,” Clement said, is that it “incentives a dynamic where Congress does far less than the Framers anticipated, and the executive branch is left to do far more by deciding controversial issues via regulatory fiat”

    For the second time in recent years, the court is taking aim at a watchdog agency created to combat unfair and deceptive practices against consumers, in a case that could deal a fatal blow to the future of the agency and send reverberations throughout the financial services industry.

    At the center of the case at hand is the Consumer Financial Protection Bureau – an independent agency set up in the wake of the 2008 financial meltdown that works to monitor the practices of lenders, debt collectors and credit rating agencies.

    Congress chose to fund the CFPB from outside the annual appropriations process to ensure its independence. As such, the agency receives its funding each year from the earnings of the Federal Reserve System. But the conservative 5th US Circuit Court of Appeals held last year that the funding scheme violates the Appropriations Clause of the Constitution, that, the court said “ensures Congress’ “exclusive power over the federal purse.”

    According to the CFPB, the agency has obtained more than $18.9 billion in ordered relief, including restitution and canceled debts, for more than 195 million consumers, and more than $4.1 billion in penalties, in actions brought by the agency against financial institutions and individuals that have broken federal consumer financial protection laws.

    A handful of other agencies have similar funding schemes including the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.

    Three years ago, the Supreme Court limited the independence of the CFPB by invalidating its leadership structure. A 5-4 court held that the structure violated the separation of powers because the president was restricted from removing the director, even if they had policy disagreements.

    Agency regulatory authority: Securities and Exchange Commission

    The justices are looking at the in-house enforcement proceedings of the US Securities and Exchange Commission in another case that invites the conservative majority to pare back the regulatory authority of federal agencies.

    The court’s decision could impact whether the SEC and other agencies can conduct enforcement proceedings in-house, using administrative courts staffed with agency employees, or whether such actions must be brought in federal court.

    On one side are critics of such agency courts who argue that they allow federal employees to serve as prosecutors, judges and jury, issuing rulings that could particularly hurt small businesses. On the other side are those who point out that several agencies, including the Social Security Administration, have such internal proceedings because the topics are often complex and the agency has more expertise than a federal judge.

    The case arose in 2013 after the SEC brought an enforcement action against George Jarkesy, who had established two hedge funds with his advisory firm, Patriot28, for securities fraud.

    The 5th Circuit ruled that the SEC’s proceedings deprive individuals of their Seventh Amendment right to a civil jury. In addition, the court said that Congress had improperly delegated legislative power to the SEC, which gave the agency unconstrained authority at times to choose the in-house administrative proceeding rather than filing suit in district court.

    In December, the court will examine the historic multibillion-dollar Purdue Pharma bankruptcy settlement with several states that would ultimately offer the Sackler family broad protection from OxyContin-related civil claims.

    Until recently, Purdue was controlled by the Sackler family, who withdrew billions of dollars from the company before it filed for bankruptcy. The family has now agreed to contribute up to $6 billion to Purdue’s reorganization fund on the condition that the Sacklers receive a release from civil liability.

    The Biden administration, representing the US Trustee, the executive branch agency that monitors the administration of bankruptcy cases, has called the plan “exceptional and unprecedented” in court papers, noting that lower courts have divided on when parties can be released from liability for actions that caused societal harm.

    “The plan’s release ‘absolutely, unconditionally, irrevocably, fully, finally, forever and permanently releases’ the Sacklers from every conceivable type of opioid-related civil claim – even claims based on fraud and other forms of willful misconduct that could not be discharged if the Sacklers filed for bankruptcy in their individual capacities,” Prelogar argued in court papers.

    For the second year running, the justices will leap into the online moderation debate and decide whether states can essentially control how social media companies operate.

    If upheld, laws from Florida and Texas could open the door to more state legislation requiring platforms such as Facebook, YouTube and TikTok to treat content in specific ways within certain jurisdictions – and potentially expose the companies to more content moderation lawsuits.

    It could also make it harder for platforms to remove what they determine is misinformation, hate speech or other offensive material.

    “These cases could completely reshape the digital public sphere. The question of what limits the First Amendment imposes on legislatures’ ability to regulate social media is immensely important – for speech, and for democracy as well,” said Jameel Jaffer, the executive director of Columbia University’s Knight First Amendment Institute, in a statement.

    “It’s difficult to think of any other recent First Amendment cases in which the stakes were so high,” Jaffer added.

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  • Apple rejected opportunities to buy Microsoft’s Bing, integrate with DuckDuckGo | CNN Business

    Apple rejected opportunities to buy Microsoft’s Bing, integrate with DuckDuckGo | CNN Business



    CNN
     — 

    Since 2017, Apple has turned down multiple opportunities to chip away at Google’s search engine dominance, according to newly unsealed court transcripts, including a chance to purchase Microsoft’s Bing and to make the privacy-focused DuckDuckGo a default for users of its Safari’s private browsing mode.

    The previously confidential records, unsealed this week by the judge presiding over the US government’s antitrust lawsuit against Google, illustrate the challenges that have faced Google’s rivals in search as they’ve tried to unseat the tech giant from its pole position as Apple’s default search provider on millions of iPhones and Mac computers. It’s a privilege for which Google has paid Apple at least $10 billion a year.

    The closed-door testimony by the CEO of DuckDuckGo, Gabriel Weinberg, and a senior Apple executive, John Giannandrea, offers a glimpse of the kind of failed deals and backroom negotiations that have helped Google maintain its lead as the world’s foremost search engine.

    But it also shows how Apple has wrestled with Google’s rise and how some at Apple yearned for “optionality.” Apple didn’t immediately respond to a request for comment.

    Giannandrea testified last month Apple began seriously considering a deal with Bing in 2018, after a conversation between Apple CEO Tim Cook and Microsoft CEO Satya Nadella launched a series of further discussions between the two companies. (Last week, Nadella testified that he has spent every year of his tenure as CEO trying to persuade Apple to adopt Bing.)

    Apple insiders ultimately came up with four options for Cook: Buy Bing outright; invest in Bing and take an ownership share of the search engine; collaborate with Microsoft on a shared search index that both companies could use; or do nothing and continue with the Google partnership.

    At the same time, Apple had been actively working with DuckDuckGo on a proposal that could have made it the default search in Safari browser’s private mode, while still maintaining Google as the default in normal mode, which logs user activity, Weinberg testified.

    DuckDuckGo logo displayed on a phone screen and DuckDuckGo website displayed on a laptop screen in October 2021.

    “Our impression was that they were really serious about [it],” Weinberg told the court last month, referring to the roughly 20 meetings and phone calls that DuckDuckGo held with Apple officials, including some senior executives, from late 2017 to late 2019 on the matter. The two companies deliberated over everything from product mockups to contractual language; Apple even went as far as sending a draft contract to DuckDuckGo outlining specific proposed revenue shares.

    “If we were the default in [Safari] private browsing mode, our market share, by our calculations at the time, would increase multiple times over,” said Weinberg, according to the transcript. “We would be getting exposure for our brand every time someone opened up private browsing mode.”

    Ultimately, however, Apple backed away from both potential deals.

    Weinberg blamed Apple’s contract with Google for sinking the initiative, calling it the “elephant in the room” during many of his team’s meetings with Apple. Similar negotiations with other browser or device makers, including Mozilla, Opera and Samsung, fell through due to the Google contract as well, Weinberg claimed, prompting DuckDuckGo to abandon its efforts to gain better browser placement.

    In his testimony, Giannandrea acknowledged a perception that the Apple-Google relationship could be undermined by such plans. In discussing a 2018 slide presentation prepared for Cook and introduced in court, Giannandrea said the slides suggested that even a joint venture with Bing “would probably put us in head-to-head competition with Google” that would “probably” result in the end of the Google search contract with Apple altogether.

    Giannandrea was opposed to moving ahead with a Bing deal, he said, largely because Apple’s testing showed Bing to be inferior to Google in most respects, and that replacing Bing as the default would not best serve Apple’s customers. He made a similar argument internally about DuckDuckGo, saying in an email that moving ahead with that partnership was “probably a bad idea.” (DuckDuckGo licenses search results from Bing.)

    Still, Giannandrea testified, some within Apple thought that dealing with Bing in some fashion could yield benefits to Apple. In one 2018 email introduced in closed session, Adrian Perica, who leads Apple’s strategic investment and merger efforts, argued that collaborating with Microsoft on search technology would help “build them up, create incremental negotiating leverage to keep the take rate from Google and further our optionality to replace Google down the line.”

    Giannandrea believed the proposal “wasn’t a very feasible idea” and in his testimony dismissed Perica’s thinking as a businessperson’s spitballing.

    Apple today has the enormous resources to build a true rival to Google, Giannandrea testified. But, as he wrote in a 2018 email, “it’s probably not the best way to differentiate our products” — a belief he said he still holds today.

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  • Adobe previews new AI editing tools | CNN Business

    Adobe previews new AI editing tools | CNN Business


    New York
    CNN
     — 

    Photo-editing software maker Adobe unveiled a slew of new AI-powered tools and features last week at its annual Max event, including a dress that transforms into a wearable screen and streamlined ways to delete elements from photos.

    The company previewed a series of prototype tools that make use of both generative AI and 3D image technology in the Adobe MAX Sneaks showcase. Covering photo, audio, video, 3D, fashion and design, the new capabilities are meant to give the public a sneak peak into early-stage ideas that might one day become widely used components of Adobe products.

    A highlight of the event was Adobe’s Project Primrose, an interactive dress that shifts into different colors and patterns as it’s worn.

    Other previewed items include a tool that automatically detects each object in an image and lets users perform a variety of tasks, labeled Project Stardust. For example, it can spot a suitcase within a photo to then be moved or deleted or predict and prompt likely tasks, such as deleting people from the background of an image.

    A screenshot of Project Stardust, a tool unveiled as part Adobe's annual

    Also on display was Project Dub Dub Dub, technology that can automatically dub audio over a video into all supported languages while preserving the speaker’s voice, as was a new tool that shows Adobe users what the ability to apply text-to-image generative AI tool Firefly to videos might look like.

    Adobe first began adding Firefly into a Photoshop beta app in May, with the goal of “dramatically accelerating” how users edit their photos. It allows users to add or delete elements from images with just a text prompt. It can also match the lighting and style of the existing images automatically, the company said.

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  • Portable hotspots arrive in Maui to bring internet to residents and tourists | CNN Business

    Portable hotspots arrive in Maui to bring internet to residents and tourists | CNN Business


    New York
    CNN
     — 

    Portable mobile hotspots have arrived in Maui to help bring internet service to the thousands of people who may have been unable to call for help since the wildfires started to rage out of control on the island.

    Verizon told CNN on Thursday its teams are currently deploying the first batch of satellite-based mobile hotspots at evacuation sites in areas of greatest need, particularly the west side of the island, west of Maalaea, Lahaina and Northern Kapalua.

    Verizon’s larger equipment, which is being barged over from Honolulu, is expected to arrive later in the day. This includes COLTs (Cells on Light Trucks) — a mobile site on wheels that connects to a carrier’s service via a satellite link — and a specialized satellite trailer used to provide service to a cell site that has a damaged fiber connection.

    “Our team is closely monitoring the situation on the ground and our network performance,” a Verizon spokesperson told CNN. “Verizon engineers on the island are working to restore service in impacted areas as quickly and safely as possible.”

    The company said it is working closely with the Hawaii Emergency Management Agency and the Maui County Emergency Operations Center to prioritize its network recovery.

    Other carriers continue to mobilize their efforts, too. An AT&T spokesperson said it is working with local public safety officials to deploy SatCOLTs (Satellite Cells on Light Trucks), drones with cell support and other solutions across the island, as equipment comes in from neighboring islands.

    Meanwhile, a T-Mobile spokesperson said its cell sites are “holding up well during the fires” but commercial power outages may be disrupting the service for some customers. “As soon as conditions allow, our priority is to deploy teams with portable generators that will bring temporary power back to our sites,” the spokesperson said.

    The Maui disaster has already wiped out power to at least 14,000 homes and businesses in the area, according to PowerOutage.us. Many cell towers have backup power generators but they have limited capacity to keep towers running.

    “911 is down. Cell service is down. Phone service is down,” Hawaii Lt. Gov. Sylvia Luke told CNN on Wednesday morning.

    Verizon, T-Mobile and AT&T said they are waiving call, text and data overage charges for Maui residents during this time.

    Although strong winds can sometimes threaten cell towers, most are strong enough to handle the worst that even a Category 5 hurricane can bring. Fire, however, complicates the issue.

    “When the fires get too close to cell sites, they will obviously burn equipment, antennas, and feedlines,” said Glenn O’Donnell, VP of research at market research firm Forrester. “In extreme cases, they will also weaken the towers, leading some to collapse. The smoke and flames can also attenuate [reduce the strength of] signals because of the particulate density in the air.”

    If a tower collapses, cell networks could take months to be restored. But if carriers are able and prepared to do restorations with mobile backup units, it could bring limited service back within hours, O’Donnell said. Wireless carriers often bring in COWs (Cells On Wheels), COLTs and GOaTs (Generator on a Trailer) in emergencies to provide backup service when cell towers go down.

    Cell towers have backup technology built in, but this is typically done through optical fiber cables or microwave (wireless) links, according to Dimitris Mavrakis, senior researcher at ABI Research. However, if something extraordinary happens, such as interaction with rampant fires, these links may experience “catastrophic failures and leave cells without a connection to the rest of the world.”

    And, in an emergency, a spike in call volume can overload the system — if people are able to get reception.

    “Even cells that have a good service may experience outages due to the sheer volume of communication happening at once,” Mavrakis said. “Everyone in these areas may be trying to contact relatives or the authorities at once, saturating the network and causing an outage. This is easier to correct, though, and network operators may put in place additional measures to render them operational quickly.”

    Although it’s unclear how long cell phone service could be down in affected regions, companies have been able to bring connectivity to disaster regions in the past. In 2017, Google worked with AT&T and T-Mobile to deploy its Project Loon balloons to deliver internet service to Puerto Rico in the aftermath of Hurricane Maria.

    Project Loon has since shut down.

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  • Large US tech companies face new EU rules | CNN Business

    Large US tech companies face new EU rules | CNN Business



    CNN
     — 

    The world’s largest tech companies must comply with a sweeping new European law starting Friday that affects everything from social media moderation to targeted advertising and counterfeit goods in e-commerce — with possible ripple effects for the rest of the world.

    The unprecedented EU measures for online platforms will apply to companies including Amazon, Apple, Google, Meta, Microsoft, Snapchat and TikTok, among many others, reflecting one of the most comprehensive and ambitious efforts by policymakers anywhere to regulate tech giants through legislation. It could lead to fines for some companies and to changes in software affecting consumers.

    The rules seek to address some of the most serious concerns that critics of large tech platforms have raised in recent years, including the spread of misinformation and disinformation; possible harms to mental health, particularly for young people; rabbit holes of algorithmically recommended content and a lack of transparency; and the spread of illegal or fake products on virtual marketplaces.

    Although the European Union’s Digital Services Act (DSA) passed last year, companies have had until now to prepare for its enforcement. Friday marks the arrival of a key compliance deadline — after which tech platforms with more than 45 million EU users will have to meet the obligations laid out in the law.

    The EU also says the law intends “to establish a level playing field to foster innovation, growth and competitiveness both in the European Single Market and globally.” The action reinforces Europe’s position as a leader in checking the power of large US tech companies.

    For all platforms, not just the largest ones, the DSA bans data-driven targeted advertising aimed at children, as well as targeted ads to all internet users based on protected characteristics such as political affiliation, sexual orientation and ethnicity. The restrictions apply to all kinds of online ads, including commercial advertising, political advertising and issue advertising. (Some platforms had already in recent years rolled out restrictions on targeted advertising based on protected characteristics.)

    The law bans so-called “dark patterns,” or the use of subtle design cues that may be intended to nudge consumers toward giving up their personal data or making other decisions that a company might prefer. An example of a dark pattern commonly cited by consumer groups is when a company tries to persuade a user to opt into tracking by highlighting an acceptance button with bright colors, while simultaneously downplaying the option to opt out by minimizing that choice’s font size or placement.

    The law also requires all online platforms to offer ways for users to report illegal content and products and for them to appeal content moderation decisions. And it requires companies to spell out their terms of service in an accessible manner.

    For the largest platforms, the law goes further. Companies designated as Very Large Online Platforms or Very Large Online Search Engines will be required to undertake independent risk assessments focused on, for example, how bad actors might try to manipulate their platforms, or use them to interfere with elections or to violate human rights — and companies must act to mitigate those risks. And they will have to set up repositories of the ads they’ve run and allow the public to inspect them.

    Just a handful of companies are considered very large platforms under the law. But the list finalized in April includes the most powerful tech companies in the world, and, for those firms, violations can be expensive. The DSA permits EU officials to issue fines worth up to 6% of a very large platform’s global annual revenue. That could mean billions in fines for a company as large as Meta, which last year reported more than $116 billion in revenue.

    Companies have spent months preparing for the deadline. As recently as this month, TikTok rolled out a tool for reporting illegal content and said it would give EU users specific explanations when their content is removed. It also said it would stop showing ads to teens in Europe based on the data the company has collected on them, all to comply with the DSA rules.

    “We’ve been supportive of the objectives of the DSA and the creation of a regulatory regime in Europe that minimizes harm,” said Nick Clegg, Meta’s president of global affairs and a former deputy prime minister of the UK, in a statement Tuesday. He said Meta assembled a 1,000-person team to prepare for DSA requirements. He outlined several efforts by the company including limits on what data advertisers can see on teens ages 13 to 17 who use Facebook and Instagram. He said advertisers can no longer target the teens based on their activity on those platforms. “Age and location is now the only information about teens that advertisers can use to show them ads,” he said.

    In a statement, a Microsoft spokesperson told CNN the DSA deadline “is an important milestone in the fight against illegal content online. We are mindful of our heightened responsibilities in the EU as a major technology company and continue to work with the European Commission on meeting the requirements of the DSA.”

    Snapchat parent Snap told CNN that it is working closely with the European Commission to ensure the company is compliant with the new law. Snap has appointed several dedicated compliance employees to monitor whether it is living up to its obligations, the company said, and has already implemented several safeguards.

    And Apple said in a statement that the DSA’s goals “align with Apple’s goals to protect consumers from illegal and harmful content. We are working to implement the requirements of the DSA with user privacy and security as our continued North Star.”

    Google and Pinterest told CNN they have also been working closely with the European Commission.

    “We share the DSA’s goals of making the internet even more safe, transparent and accountable, while making sure that European users, creators and businesses continue to enjoy the benefits of the web,” a Google spokesperson said.

    A Pinterest spokesperson said the company would “continue to engage with the European Commission on the implementation of the DSA to ensure a smooth transition into the new legal framework.” The spokesperson added: “The wellbeing, safety and privacy of our users is a priority and we will continue to build on our efforts.”

    Many companies should be able to comply with the law, given their existing policies, teams and monitoring tools, according to Robert Grosvenor, a London-based managing director at the consulting firm Alvarez & Marsal. “Europe’s largest online service providers are not starting from ground zero,” Grosvenor said. But, he added: “Whether they are ready to become a highly regulated sector is another matter.”

    EU officials have signaled they will be scrutinizing companies for violations. Earlier this summer, European officials performed preemptive “stress tests” of X, the company formerly known as Twitter, as well as Meta and TikTok to determine the companies’ readiness for the DSA.

    For much of the year, EU Commissioner Thierry Breton has been publicly reminding X of its coming obligations as the company has backslid on some of its content moderation practices. Even as Breton concluded that X was taking its stress test seriously in June, the company had just lost a top content moderation official and had withdrawn from a voluntary EU commitment on disinformation that European officials had said would be part of any evaluation of a platform’s compliance with the DSA.

    X told CNN ahead of Friday’s deadline that it was on track to comply with the new law.

    Analysts anticipate that the EU will be watching even more closely after the deadline — and some hope that the rules will either encourage tech platforms to replicate their practices in the EU voluntarily around the world or else drive policymakers to adopt similar measures.

    “We hope that these new laws will inspire other jurisdictions to act because these are, after all, global companies which apply many of the same practices worldwide,” said Agustin Reyna, head of legal and economic affairs at BEUC, a European consumer advocacy group. “Europe got the ball rolling, but we need other jurisdictions to win the match against tech giants.”

    Already, Amazon has sought to challenge the very large platform label in court, arguing that the DSA’s requirements are geared toward ad-based online speech platforms, that Amazon is a retail platform and that none of its direct rivals in Europe have likewise been labeled, despite being larger than Amazon within individual EU countries.

    The legal fights could present the first major test of the DSA’s durability in the face of Big Tech’s enormous resources. Amazon told CNN that it plans to comply with the EU General Court’s decision, either way.

    “Amazon shares the goal of the European Commission to create a safe, predictable and trusted online environment, and we invest significantly in protecting our store from bad actors, illegal content, and in creating a trustworthy shopping experience,” an Amazon spokesperson said. “We have built on this strong foundation for DSA compliance.”

    TikTok did not immediately respond to a request for comment on this story.

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  • China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

    China’s top chipmaker may be in hot water as US lawmakers call for further sanctions after Huawei ‘breakthrough’ | CNN Business

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Shares in SMIC, China’s largest contract chipmaker, plunged on Thursday, after two US congressmen called on the White House to further restrict export sales to the company.

    The comments came after Huawei Technologies introduced the Mate 60 Pro, a Chinese smartphone powered by an advanced chip that is believed to have been made by SMIC.

    Last week’s launch shocked industry experts who didn’t understand how SMIC, which is headquartered in Shanghai, would have the ability to manufacture such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology.

    TechInsights, a research organization based in Canada specializing in semiconductors, revealed shortly after the launch that the smartphone contained a new 5G Kirin 9000s processor developed specifically for Huawei by SMIC.

    This is a “big tech breakthrough for China,” Jefferies analysts said Tuesday in a research note.

    The development has fueled fears among analysts that the US-China tech war is likely to accelerate in the near future.

    US representative Mike Gallagher, chair of the US House of Representatives committee on China, called on the US Commerce Department on Wednesday to end all technology exports to Huawei and SMIC, according to Reuters.

    Gallagher was quoted as saying SMIC may have violated US sanctions, as this chip likely could not be produced without US technology.

    “The time has come to end all US technology exports to both Huawei and SMIC to make clear any firm that flouts US law and undermines our national security will be cut off from our technology,” he said.

    Shares in SMIC, which stands for Semiconductor Manufacturing International Corporation, sank 8.3% in Shanghai and 7.6% in Hong Kong on Thursday. Hua Hong Semiconductor, China’s second largest chip foundry, tumbled 5.8%.

    Texas Republican Michael McCaul, who chairs the House Foreign Affairs Committee, was quoted by Reuters as saying he was concerned about the possibility of China trying to “get a monopoly” in the manufacture of less-advanced computer chips.

    “We talked a lot about advanced semiconductor chips, but we also need look at legacy,” he reportedly said, referring to older computer chip technology which does not fall under export controls.

    “I think China is trying to get a monopoly on the market share of legacy semiconductor chips as well. And I think that’s a part of the discussion we’ll be having,” he said.

    Chinese state media have touted the development as a sign the country had successfully “broken US sanctions” and “achieved technological independence” in advanced chipmaking.

    Meme makers on the Chinese internet have even crowned US Commerce Secretary Gina Raimondo the unofficial brand ambassador for the Mate 60 series.

    The memes poke fun at the idea that that US sanctions, which are implemented and enforced by the US Commerce department, may have indirectly led to the launch of the new phone as China’s homegrown firms had to work with the available technology.

    Raimondo visited China last week, when the phone was launched. The memes have gone viral online and been reported on by state broadcaster CCTV.

    Before Thursday, SMIC’s shares in Hong Kong had rallied more than 20% within two weeks due to investor optimism. Huahong Semiconductor jumped 11%.

    CNN has reached out to Gallagher’s and McCaul’s offices for comment, but has yet to receive a response.

    Huawei was added to a blacklist in May 2019 by the US Commerce Department over national security concerns. That means companies have to apply for US export licenses to supply technology to Huawei.

    SMIC was also put on the same list in 2020, as US officials were concerned it could use American technology to aid the Chinese military. SMIC has denied having any relationship with the Chinese military.

    “The fact that China has achieved a big breakthrough in [semiconductor] tech will likely create more debate in the US about the effectiveness of sanctions,” said the Jefferies analysts.

    They expect the Biden administration to tighten chips ban on China, which was introduced in October 2022, in the next few months, further limiting China’s access to advanced US semiconductors.

    “Overall the US-China tech war is likely to escalate,” they said.

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  • Landmark Google trial opens with sweeping DOJ accusations of illegal monopolization | CNN Business

    Landmark Google trial opens with sweeping DOJ accusations of illegal monopolization | CNN Business



    CNN
     — 

    US prosecutors opened a landmark antitrust trial against Google on Tuesday with sweeping allegations that for years the company intentionally stifled competition challenging its massive search engine, accusing the tech giant of spending billions to operate an illegal monopoly that has harmed every computer and mobile device user in the United States.

    In opening remarks before a federal judge in Washington, lawyers for the Justice Department alleged that Google’s negotiation of exclusive contracts with wireless carriers and phone makers helped cement its dominant position in violation of US antitrust law.

    The Google case has been described as one of the largest US antitrust trials since the federal government took on Microsoft in the 1990s, and involves some similar arguments about the tying of multiple proprietary products. The multi-week trial is expected to feature witness testimony from Google CEO Sundar Pichai, as well as other senior executives or former employees from Google, Apple, Microsoft and Samsung.

    The effects of Google’s alleged misconduct are vast, DOJ lawyer Kenneth Dintzer told the court.

    “This case is about the future of the internet, and whether Google’s search engine will ever face meaningful competition,” Dintzer said, adding that Google pays more than $10 billion a year to Apple and other companies to ensure that Google is the default or only search engine available on browsers and mobile devices used by millions.

    Also anticompetitive, the Justice Department said, are Google’s contracts to ensure that Android devices come with Google apps and services — including Google search — preinstalled.

    The deals guarantee a steady flow of user data to Google that further reinforces its monopoly, the US government said, leading to other consequences such as harms to consumer privacy and higher advertising prices.

    “This feedback loop, this wheel has been turning for 12 years, and it always turns to Google’s advantage,” Dintzer said. The practice ultimately affects what consumers see in search results and prevents new rivals from gaining scale and market share, he added.

    For Google’s opening statement, attorney John Schmidtlein said that Apple’s decision to make Google the default search engine in its Safari browser demonstrates how Google’s search engine is the superior product consumers prefer.

    “Apple repeatedly chose Google as the default because Apple believed it was the best experience for its users,” he said.

    The Google case “could not be more different” from the historic Microsoft litigation at the turn of the millennium, Schmidtlein continued.

    Where the Microsoft case revolved around that company’s alleged harms to Netscape, a small browser maker, the Google case is based on claims that Google search has harmed a much larger and more powerful entity: Microsoft and its Bing search engine, Schmidtlein said.

    “Google competed on the merits to win preinstallation and default status” on consumer devices and browsers, he insisted, attacking Microsoft as a failed search engine developer.

    “The evidence will show that Microsoft’s Bing search engine failed to win customers because Microsoft did not invest [and] did not innovate,” Schmidtlein added. “At every critical juncture, the evidence will show that they were beaten in the market.”

    And Schmidtlein argued that forbidding Google from being able to compete for default status on browsers and devices would lead to its own harms to competition in search, stating that contracts ensuring that Android devices come with certain apps preinstalled such as Google Maps and Gmail also promotes competition — against Apple.

    “Google’s Android agreements are important components of a business model that has sustained the most important competitor to Apple for mobile devices in the United States,” Schmidtlein said.

    Google has previously said that consumers choose Google’s search engine because it is the best and that they prefer it, not because of anticompetitive practices.

    But DOJ prosecutors said Tuesday that they plan to present evidence in the case that Google knew what it was doing was illegal and that the company “hid and destroyed documents because they knew they were violating the antitrust laws.

    “The harm from Google contracts affects every phone and computer in the country,” Dintzer said.

    Kent Walker, Google’s president of global affairs, and Rep. Ken Buck from Colorado were in attendance for the opening. Buck, a vocal tech industry critic, is the former top Republican on the House antitrust subcommittee — which in 2020 released a widely publicized investigative report finding that Amazon, Apple, Google and Facebook enjoyed “monopoly power.”

    Kent Walker, President of Global Affairs and Chief legal officer of Alphabet Inc., arrives at federal court on September 12, 2023 in Washington, DC. Google will defend its default-search deals in an antitrust trial against the U.S. Justice Department which begins today.

    The trial marks the culmination of two ongoing lawsuits against Google that started during the Trump administration.

    In separate complaints, the Justice Department and dozens of states accused Google in 2020 of abusing its dominance in online search but were eventually consolidated into a single case.

    Google’s search business provides more than half of the $283 billion in revenue and $76 billion in net income Google’s parent company, Alphabet, recorded in 2022. Search has fueled the company’s growth to a more than $1.7 trillion market capitalization.

    “This is a backwards-looking case at a time of unprecedented innovation,” said Walker in a statement, “including breakthroughs in AI, new apps and new services, all of which are creating more competition and more options for people than ever before. People don’t use Google because they have to — they use it because they want to. It’s easy to switch your default search engine — we’re long past the era of dial-up internet and CD-ROMs.”

    The trial may also be a bellwether for the more assertive antitrust agenda of the Biden administration.

    At the time the lawsuit was first filed, US antitrust officials did not rule out the possibility of a Google breakup, warning that Google’s behavior could threaten future innovation or the rise of a Google successor.

    Separately, a group of states, led by Colorado, made additional allegations against Google, claiming that the way Google structures its search results page harms competition by prioritizing the company’s own apps and services over web pages, links, reviews and content from other third-party sites.

    But the judge overseeing the case, Judge Amit Mehta in the US District Court for the District of Columbia, tossed out those claims in a ruling last month, narrowing the scope of allegations Google must defend and saying the states had not done enough to show a trial was necessary to determine whether Google’s search results rankings were anticompetitive.

    Despite that ruling, the trial represents the US government’s furthest progress in challenging Google to date. Mehta has said Google’s pole position among search engines on browsers and smartphones “is a hotly disputed issue” and that the trial will determine “whether, as a matter of actual market reality, Google’s position as the default search engine across multiple browsers is a form of exclusionary Conduct.”

    In January, meanwhile, the Biden administration launched another antitrust suit against Google in opposition to the company’s advertising technology business, accusing it of maintaining an illegal monopoly. That case remains in its early stages at the US District Court for the Eastern District of Virginia.

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