Facebook Agrees to Record FTC Fine, Extensive Oversight

In addition to fining Facebook $5 billion for violating a 2011 privacy settlement, the Federal Trade Commission ordered Facebook to create an independent privacy committee on its board and appoint compliance officers and an outside assessor to oversee how data is handled. Further, chief executive Mark Zuckerberg and other Facebook executives must submit to regular privacy audits. The FTC commissioners approved the measures in a 3-2 vote; the fine is the largest ever levied by the federal government against a tech company. Continue reading Facebook Agrees to Record FTC Fine, Extensive Oversight

SEC Fines Facebook $100 Million Over Misuse of User Data

The Securities and Exchange Commission fined Facebook $100 million to settle a case related to Cambridge Analytica, which in 2014-2015 collected Facebook data — including names, genders, locations, birthdays and “page likes” — of about 30 million Americans to create “personality scores” and ultimately use it for Donald Trump’s presidential election campaign. When Facebook discovered this misuse of data in 2015, it didn’t reveal what had happened for two years, during which time it presented the issue of data misuse as hypothetical. Continue reading SEC Fines Facebook $100 Million Over Misuse of User Data

2017 Data Breach Likely to Cost Equifax Up to $700 Million

In September 2017, hackers broke into credit agency Equifax, compromising almost 150 million Social Security numbers and other personal information. Now, according to sources, under the terms of an agreement with the Federal Trade Commission, Consumer Financial Protection Bureau and most state attorneys general, Equifax will pay about $700 million to settle with these agencies as well as a nationwide consumer class-action lawsuit. The exact amount of the settlement depends on the number of consumer claims ultimately filed. Continue reading 2017 Data Breach Likely to Cost Equifax Up to $700 Million

European Union Hits Qualcomm with Another Antitrust Fine

For the second time in 18 months, the European Union levied a fine on Qualcomm, this time for €242 million ($272 million). European commissioner for competition Margrethe Vestager stated that Qualcomm drove a competing supplier of baseband chips out of business, an antitrust violation. The EU started its formal investigation into Qualcomm in 2015, when U.K. chip manufacturer Icera accused it of “predatory pricing” between 2009 and 2011, to drive it out of business. Nvidia subsequently purchased Icera. Continue reading European Union Hits Qualcomm with Another Antitrust Fine

Lawmakers Grill Major Tech Companies in Antitrust Hearing

Republican and Democratic lawmakers excoriated tech giants Amazon, Apple, Facebook and Google this week on Capitol Hill. Chief among the critics were Senator Ted Cruz (R-Texas), who oversees the Constitution subcommittee, and Representative David Cicilline (D-Rhode Island) who leads an antitrust subcommittee. Although the companies acknowledged the upheaval their technology has created in many industries, Senator Sherrod Brown (D-Ohio) responded that, “every time Americans trust you, they seem to get burned.” Continue reading Lawmakers Grill Major Tech Companies in Antitrust Hearing

Proposed Law Would Make Media Platforms Liable for Posts

Senator Josh Hawley (R-Missouri) introduced legislation to amend Section 230 of the Communications Decency Act (CDA) to hold big tech companies such as Facebook and YouTube liable for content published on their platforms. Tech companies now have protection under Section 230 from being found liable for what users post. Known as the Ending Support for Internet Censorship Act, the proposed legislation has sparked backlash from both sides of the aisle. According to Hawley’s office, his bill is aimed to limit political bias. Continue reading Proposed Law Would Make Media Platforms Liable for Posts

Companies Complain to Justice Department About Big Tech

The federal government is listening to complaints about how the major digital platforms exploit their size and the paucity of regulations — and companies are lining up to tell their tales of woe. Yelp public policy chief Luther Lowe says firms that once quietly grumbled are now talking to the Department of Justice about anti-competitive behavior by the big tech companies, all of which vigorously deny the accusations. Two Instagram executives stated that, although some would like to break up social giant Facebook, that won’t help the problem. Continue reading Companies Complain to Justice Department About Big Tech

Tech Companies Have Long Prepared for Antitrust Scrutiny

Apple, Facebook and Google have been preparing for announcements from the Department of Justice (DOJ) and the Federal Trade Commission (FTC) that leading U.S. tech companies were going to be closely scrutinized for evidence of antitrust behavior. The news has sent shares roller-coasting but the three companies’ lawyers are, said sources, taking a “wait-and-see” approach. While Apple has been battling antitrust battles for years and Google has already faced antitrust investigations in the U.S. and Europe, some experts believe Facebook is not as prepared for the coming scrutiny. Continue reading Tech Companies Have Long Prepared for Antitrust Scrutiny

Apple Reinstates Kid Controls, App Developers File Lawsuit

Apple abruptly reversed a decision made a year ago to remove iPhone apps that use one of two technologies to allow parents to control their children’s use of Apple devices. The company revealed its move to allow parental controls in a short blog post on its website. The reversal comes on the heels of news that the Department of Justice and the Federal Trade Commission are scrutinizing Silicon Valley tech companies for antitrust behavior. App developers filed a lawsuit in California accusing Apple of monopolizing app distribution. Continue reading Apple Reinstates Kid Controls, App Developers File Lawsuit

Government Expected to Take a Closer Look at Tech Giants

U.S. tech giants are expected to become targets of in-depth antitrust investigations to determine if any companies have become too large and may be stifling competition. According to sources, federal agencies have agreed to distribute the investigative responsibilities. The Justice Department reportedly has authority over looking into Apple and Google, while the Federal Trade Commission will have oversight of Amazon and Facebook. In addition, the House Judiciary Committee plans to examine competition in digital markets and the growing power of the tech industry. Continue reading Government Expected to Take a Closer Look at Tech Giants

Amazon Launches Echo Show 5 and Alexa Privacy Features

Amazon unveiled Echo Show 5, the third generation of its Alexa-enabled Echo Show, which offers a 5.5-inch 960×480-pixel diagonal smart display and built-in far-field microphones. Although in numerous ways, the Echo Show 5 resembles past generations of the device, it differs in that it includes a mechanical slide that lets the user close the shutter on the device’s front-facing camera. To assuage consumers’ privacy concerns about Alexa, Amazon has also added the “Alexa Privacy Hub,” an online collection of privacy settings. Continue reading Amazon Launches Echo Show 5 and Alexa Privacy Features

Judge Rules For FTC Against Qualcomm in Antitrust Case

U.S. District Judge Lucy Koh sided with the Federal Trade Commission’s antitrust lawsuit against Qualcomm, finding that it “unlawfully stifled competition in the market for wireless chips.” This brings uncertainty to Qualcomm’s core business of licensing its patents; Koh ruled that the company must renegotiate all existing patent license deals. That could result in lower costs for Apple and other smartphone makers. The Trump administration has pointed to Qualcomm as a “keystone” in the U.S. tech competition with China. Continue reading Judge Rules For FTC Against Qualcomm in Antitrust Case

Microsoft Urges U.S. to Adopt Laws Similar to EU’s GDPR

Microsoft corporate vice president/deputy general counsel Julie Brill believes that the federal government is essential in guaranteeing “a strong right to privacy” in the United States. She noted that California and Illinois have enacted serious data protection laws, but that the U.S. needs federal regulation. She came to that conclusion after observing that the European Union’s General Data Protection Regulation (GDPR), enacted almost one year ago, has been “very effective” in transforming how companies manage personal data. Continue reading Microsoft Urges U.S. to Adopt Laws Similar to EU’s GDPR

Coalition Alleges Amazon Illegally Collects Children’s Data

A coalition of 19 consumer and privacy groups plans to file a complaint against Amazon alleging that the e-commerce company’s Echo Dot Kids Edition illegally collects voice recordings and other information from users under age 13, which is a violation of the 1998 Children’s Online Privacy Protection Act, known as COPPA. The Echo Dot Kids Edition is much like the Echo Dot smart speaker device, but targeted to kids using a design featuring bright colors. Via the device, kids can ask questions, play music, and more using voice commands.

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Facebook Unveils First Design Changes to Enhance Privacy

Under the dark cloud of various privacy-related scandals, Facebook chief executive Mark Zuckerberg announced the first of a series in design changes meant to shift the social media platform away from town square-style communication and toward more direct, private communication between users and groups. On Tuesday at Facebook’s annual developer conference, the company showcased a redesign of its mobile app and desktop site, both of which add new features to promote group-based communication rather than a focus on the News Feed.

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