Six years ago, the Chinese military hacked Google, Yahoo and other technology companies. Google, whose co-founder Sergey Brin vowed “never again,” hired hundreds of security engineers to make good on that promise. Yahoo, under the leadership of Marissa Mayer, however, focused on other problems the ailing company faced and reportedly failed to take more stringent security measures. Now, Yahoo reports another serious breach, undetected for two years, with 500 million users’ credentials stolen. Yahoo and the FBI are investigating. Continue reading With Breach, Yahoo Pays the Price For Skimping on Security

BlackBerry, whose phones were once so popular they were dubbed “Crackberry,” has licensed its brand to a group owned by Indonesian phone companies. The Canadian company — whose market share is now in the single digits in North America and Europe — made this decision despite the fact that it recently adopted the Google Android operating system. The strategy, led by executive chair/chief executive John Chen, is intended to evolve BlackBerry into a software and wireless device security business. Continue reading BlackBerry Outsources Handset Biz, Shifts Focus to Software

The European Union has unveiled proposed regulations designed to help protect its consumers. The goal is to create a single market out of Europe’s many regions, enabling its 500 million consumers to access the same services. But the EU proposals also create stricter demands for privacy and against copyright infringement, including reforms that would hold streaming services responsible for instituting better anti-piracy methods. From the perspective of Silicon Valley and much of Hollywood, the EU’s efforts are a form of protectionism. Continue reading EU to Propose Stricter Regulations Impacting Digital Services

The European Commission has issued a $14.5 billion tax penalty against Apple, claiming the tech giant owes unpaid taxes following a sweetheart deal with Ireland that constitutes illegal state aid. Apple and Ireland both have plans to appeal the decision. “We never asked for, nor did we receive, any special deals,” wrote Apple CEO Tim Cook. “We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don’t owe them any more than we’ve already paid.” The Wall Street Journal suggests the “decision is likely to aggravate trans-Atlantic tensions over the investigations into tax deals brokered between U.S. multinational corporations and individual European countries.” Continue reading European Commission: Apple Must Pay Tax Penalty to Ireland

Apple’s quarterly profit fell 27 percent to a net income of $7.8 billion in the fiscal third quarter ending June 25, compared with $10.68 billion in last year’s third quarter. This downturn, which marks a second straight quarter of reduced revenues, reflects a prolonged downturn in iPhone sales, the first since the smartphone was introduced in 2007. The smaller, less expensive iPhone SE, which debuted in March, alone enjoyed strong sales, with sales of all other models dipping. Continue reading Apple Experiences Downturn, iPhone SE Sales a Bright Spot

Facebook Messenger currently has more than 900 million regular monthly users, more than quadruple the 200 million it touted in early 2014. To grow in international markets, Facebook is testing a new feature inside Messenger that will encrypt some messages, creating “secret conversations” between the users of the two mobile devices. Users must opt-in to a secret conversation. Although this isn’t the full encryption found in WhatsApp, the new feature offers more security than before, which Facebook hopes will appeal to global users. Continue reading Facebook Messenger Will Soon Enable ‘Secret Conversations’

Following extensive debate, the European Union has approved the EU-U.S. Privacy Shield data transfer agreement that will replace Safe Harbor, which “was struck down by the European Court of Justice in October of last year over concerns about how EU data was being treated once it was transferred to the U.S.,” reports Digital Trends. According to the European Commission’s press release, “For the first time, the U.S. has given the EU written assurance that the access of public authorities for law enforcement and national security will be subject to clear limitations, safeguards and oversight mechanisms and has ruled out indiscriminate mass surveillance of European citizens’ data.” Continue reading EU Approves Debated Privacy Shield to Replace Safe Harbor

Faster, the 5,600-mile undersea fiber-optic cable that was funded by Google and Asian telecoms, and installed by NEC, is now online. The new cable runs from Oregon to two points in Japan. According to Wired, “It’s the fastest, highest capacity trans-Pacific undersea cable ever built. It can theoretically deliver as much as 60 terabits per second of bandwidth — more than half the total bandwidth available between the U.S West Coast and Asia at the end of 2015.” Google plans to speed communications between its own data centers and offer cloud services from Tokyo. Facebook and Microsoft recently announced plans to construct a 160 terabit trans-Atlantic undersea cable from Virginia to Spain. Continue reading Google, Asian Telecoms Build High-Speed Trans-Pacific Cable

British voters cast their ballots yesterday regarding the United Kingdom’s Brexit referendum, and surprising to many, the country has opted to exit the European Union. Shortly after the results were announced, British Prime Minister David Cameron announced he would resign his position later this year, while leaders in Northern Ireland and Scotland have indicated they will seek independence referendums in order to reenter the EU. The immediate response has been a dramatic ripple effect in markets worldwide with expectations for future uncertainty and potential crises. The tech industry, which often benefits from the EU’s liberal trade and economic policies, will likely be impacted. Continue reading Global Markets React to UK’s Decision to Exit European Union

The $17.7 billion acquisition of New York-based Cablevision Systems Corp. by European cable company Altice NV is now complete. The new company, Altice USA, will become the fourth largest broadband provider in the country with 4.6 million customers across 20 states. Cablevision will join with Suddenlink, acquired by Altice last year. “Altice has vowed to invest more in improving the infrastructure of the Cablevision and Suddenlink networks with a focus on boosting broadband speeds, improving Wi-Fi service and updating the programming guide and interface to more user-friendly designs,” reports Variety. Continue reading Altice Closes Cablevision Deal to Become Major U.S. Operator

Research firm Gartner states that global smartphone sales will dip into single digits following a continued slowdown. The company expects sales to grow 7 percent this year, reaching 1.5 billion units, down from 14.4 percent growth in 2015. In the mature markets of North America, Western Europe, Japan and parts of Asia/Pacific, smartphone penetration is now at 90 percent. That, along with consumers in these regions not replacing or upgrading phones as quickly as before, are the root causes of the slowdown. Continue reading Global Smartphone Sales Slow, India and China Still Promising

Facebook and Microsoft have partnered on Marea, a project to build a new fiber optic cable that will run for 4,000 miles under the Atlantic Ocean between Virginia and Spain. Telefónica SA, a Spanish Internet service provider, joins them in the project. The fiber link, composed of eight pairs of strands, will be the highest capacity link across the Atlantic. Marea, the Spanish word for tide, is just the latest such project that Microsoft, Facebook, Alphabet, and Amazon have invested in to lower costs of moving massive amounts of data. Continue reading Facebook, Microsoft, Telefónica Partner on Trans-Atlantic Link

Speculation that Microsoft is planning a more powerful, VR-capable Xbox One for next year has been fueled by news that at least one developer plans to show a virtual reality game for the console at E3 in June. According to Ars Technica, “a well-known European studio is planning ‘a new VR game’ set in the universe of an established, long-running franchise.” To further fan the flames, the E3 site added an Xbox One VR category featuring four developers so far. While Sony announced that it plans to launch a $399 PlayStation VR in October, Microsoft has yet to officially announce plans for a VR console. Continue reading Xbox One VR Rumors Fueled by Game Developer and E3 Site

European officials have proposed new rules for video streaming companies as part of an effort to regulate online services for the region’s 500 million consumers. Part of that effort would be to require streaming companies to not only carry a certain amount of local content, but to chip in to pay for its development, as do national broadcasters. The goal, say officials, is to boost the region’s local economies. Apple, Facebook and Netflix, which dominate the European online space, would be the U.S. companies most impacted. Continue reading New European Proposals Outline Video Streaming Regulations

The European Commission in Brussels is at the end of its seven-year investigation of Google and preparing to issue a record-breaking fine, expected to be about 3 billion euros ($3.4 billion). To date, the toughest fine the Commission has issued was 1.1 billion euros, levied at Intel. Inside sources say the announcement will likely come before the summer break, possibly as early as next week, and that the final amount hasn’t been decided upon, with the maximum possible at around 6.6 billion euros, or a tenth of Google’s total annual sales. Continue reading European Commission Poised to Issue Major Fine to Google