EU

Shameless Insult, Malicious Compliance, Junk Fees, Extortion Regime: Industry Reacts To Apple's Proposed Changes Over Digital Markets Act 255

In response to new EU regulations, Apple on Thursday outlined plans to allow iOS developers to distribute apps outside the App Store starting in March, though developers must still submit apps for Apple's review and pay commissions. Now critics say the changes don't go far enough and Apple retains too much control.

Epic Games CEO Tim Sweeney: They are forcing developers to choose between App Store exclusivity and the store terms, which will be illegal under DMA (Digital Markets Act), or accept a new also-illegal anticompetitive scheme rife with new Junk Fees on downloads and new Apple taxes on payments they don't process. 37signals's David Heinemeier Hansson, who is also the creator of Ruby on Rails: Let's start with the extortion regime that'll befell any large developer who might be tempted to try hosting their app in one of these new alternative app stores that the EU forced Apple to allow. And let's take Meta as a good example. Their Instagram app alone is used by over 300 million people in Europe. Let's just say for easy math there's 250 million of those in the EU. In order to distribute Instagram on, say, a new Microsoft iOS App Store, Meta would have to pay Apple $11,277,174 PER MONTH(!!!) as a "Core Technology Fee." That's $135 MILLION DOLLARS per year. Just for the privilege of putting Instagram into a competing store. No fee if they stay in Apple's App Store exclusively.

Holy shakedown, batman! That might be the most blatant extortion attempt ever committed to public policy by any technology company ever. And Meta has many successful apps! WhatsApp is even more popular in Europe than Instagram, so that's another $135M+/year. Then they gotta pay for the Facebook app too. There's the Messenger app. You add a hundred million here and a hundred million there, and suddenly you're talking about real money! Even for a big corporation like Meta, it would be an insane expense to offer all their apps in these new alternative app stores.

Which, of course, is the entire point. Apple doesn't want Meta, or anyone, to actually use these alternative app stores. They want everything to stay exactly as it is, so they can continue with the rake undisturbed. This poison pill is therefore explicitly designed to ensure that no second-party app store ever takes off. Without any of the big apps, there will be no draw, and there'll be no stores. All of the EU's efforts to create competition in the digital markets will be for nothing. And Apple gets to send a clear signal: If you interrupt our tool-booth operation, we'll make you regret it, and we'll make you pay. Don't resist, just let it be. Let's hope the EU doesn't just let it be.
Coalition of App Fairness, an industry body that represents over 70 firms including Tinder, Spotify, Proton, Tile, and News Media Europe: "Apple clearly has no intention to comply with the DMA. Apple is introducing new fees on direct downloads and payments they do nothing to process, which violates the law. This plan does not achieve the DMA's goal to increase competition and fairness in the digital market -- it is not fair, reasonable, nor non-discriminatory," said Rick VanMeter, Executive Director of the Coalition for App Fairness.

"Apple's proposal forces developers to choose between two anticompetitive and illegal options. Either stick with the terrible status quo or opt into a new convoluted set of terms that are bad for developers and consumers alike. This is yet another attempt to circumvent regulation, the likes of which we've seen in the United States, the Netherlands and South Korea. Apple's 'plan' is a shameless insult to the European Commission and the millions of European consumers they represent -- it must not stand and should be rejected by the Commission."
Transportation

Cruise Says Hostility Toward Regulators Led To Grounding of Its Autonomous Cars (nytimes.com) 35

Cruise, the driverless car subsidiary of General Motors, said in a report on Thursday that an adversarial approach taken (non-paywalled link) by its top executives toward regulators had led to a cascade of events that ended with a nationwide suspension of Cruise's fleet. From a report: The roughly 100-page report was compiled by a law firm that Cruise hired to investigate whether its executives had misled California regulators about an October crash in San Francisco in which a Cruise vehicle dragged a woman 20 feet. The investigation found that while the executives had not intentionally misled state officials, they had failed to explain key details about the incident. In meetings with regulators, the executives let a video of the crash "speak for itself" rather than fully explain how one of its vehicles severely injured the pedestrian. The executives later fixated on protecting Cruise's reputation rather than giving a full account of the accident to the public and media, according to the report, which was written by the Quinn Emanuel Urquhart & Sullivan law firm.

The company said that the Justice Department and the Securities and Exchange Commission were investigating the incident, as well as state agencies and the National Highway Traffic Safety Administration. The report is central to Cruise's efforts to regain the public's trust and eventually restart its business. Cruise has been largely shut down since October, when the California Department of Motor Vehicles suspended its license to operate because its vehicles were unsafe. It responded by pulling its driverless cars off the road across the country, laying off a quarter of its staff and replacing Kyle Vogt, its co-founder and chief executive, who resigned in November, with new leaders.

Communications

Google and AT&T Invest In AST SpaceMobile For Satellite-To-Smartphone Service (fiercewireless.com) 18

AT&T, Google and Vodafone are investing a total of $206.5 million in AST SpaceMobile, a satellite manufacturer that plans to be the first space-based network to connect standard mobile phones at broadband speeds. Fierce Wireless reports: AST SpaceMobile claims it invented the space-based direct-to-device market, with a patented design facilitating broadband connectivity directly to standard, unmodified cellular devices. In a press release, AST SpaceMobile said the investment from the likes of AT&T, Google and Vodafone underscores confidence in the company's technology and leadership position in the emerging space-based cellular D2D market. There's the potential to offer connectivity to 5.5 billion cellular devices when they're out of coverage.

Bolstering the case for AST SpaceMobile, Vodafone and AT&T placed purchase orders -- for an undisclosed amount -- for network equipment to support their planned commercial services. In addition, Google and AST SpaceMobile agreed to collaborate on product development, testing and implementation plans for SpaceMobile network connectivity on Android and related devices. AST SpaceMobile boasts agreements and understandings with more than 40 mobile network operators globally. However, it's far from alone in the D2D space. Apple/Globalstar, T-Mobile/SpaceX, Bullitt and Lynk Global are among the others.

HP

HP CEO Evokes James Bond-Style Hack Via Ink Cartridges (arstechnica.com) 166

An anonymous reader quotes a report from Ars Technica: Last Thursday, HP CEO Enrique Lores addressed the company's controversial practice of bricking printers when users load them with third-party ink. Speaking to CNBC Television, he said, "We have seen that you can embed viruses in the cartridges. Through the cartridge, [the virus can] go to the printer, [and then] from the printer, go to the network." That frightening scenario could help explain why HP, which was hit this month with another lawsuit over its Dynamic Security system, insists on deploying it to printers.

Dynamic Security stops HP printers from functioning if an ink cartridge without an HP chip or HP electronic circuitry is installed. HP has issued firmware updates that block printers with such ink cartridges from printing, leading to the above lawsuit (PDF), which is seeking class-action certification. The suit alleges that HP printer customers were not made aware that printer firmware updates issued in late 2022 and early 2023 could result in printer features not working. The lawsuit seeks monetary damages and an injunction preventing HP from issuing printer updates that block ink cartridges without an HP chip. [...]

Unsurprisingly, Lores' claim comes from HP-backed research. The company's bug bounty program tasked researchers from Bugcrowd with determining if it's possible to use an ink cartridge as a cyberthreat. HP argued that ink cartridge microcontroller chips, which are used to communicate with the printer, could be an entryway for attacks. [...] It's clear that HP's tactics are meant to coax HP printer owners into committing to HP ink, which helps the company drive recurring revenue and makes up for money lost when the printers are sold. Lores confirmed in his interview that HP loses money when it sells a printer and makes money through supplies. But HP's ambitions don't end there. It envisions a world where all of its printer customers also subscribe to an HP program offering ink and other printer-related services. "Our long-term objective is to make printing a subscription. This is really what we have been driving," Lores said.

Google

Predatory Loan Apps Are Thriving in Google Play Store, Despite Ban (restofworld.org) 29

Tens of thousands of people have fallen victim to predatory loan apps, which extort users using sensitive information from their phones. Google has changed its policy to prevent the loan apps from being listed on the Play store, but enforcement is unreliable. Rest of World: According to Mexico City's Citizen Council for Safety and Justice, a consumer watchdog group, 135 reports to local authorities have been filed against JoyCredito for fraud and extortion. But despite the government attention, the app is still available to download from the Google Play store. For years, apps like JoyCredito have been exploiting borrowers from Mexico to India. They lend small amounts of money with few requirements and very high interest rates to financially vulnerable people -- and then extort them when the loan is due. After years of mounting pressure from watchdog groups, Google explicitly banned the apps from the Play store in October. But stories like those of Macias Gonzalez show how widespread the apps still are -- and how ineffective Google has been at enforcing its own policy.

Rest of World presented Google with 15 instances of exploitative loan apps based in Mexico that explicitly violate the terms of the Play store. All of them were still available in the store as of press time. Of the 15 apps, 12 explicitly asked for access to either the camera roll or contacts in the Google Play store's terms of services. Two others specified full access only in external documents. One other gave no data access information. Rest of World also found 10 apps in Peru that have been flagged as exploitative by SBS, a national body that oversees banking, insurance, and private pension. All the apps are still available for download on the Google Play store.

Crime

Walmart's Financial Services 'Became a Fraud Magnet', Says ProPublica (propublica.org) 83

One man living in Virginia oversaw "the laundering of some $7 million in fraudulently obtained gift cards" from Walmart in an international operation which over five years scammed hundreds of victims into sending the numbers over the phone, reports a new ProPublica investigation. (Citing court evidence that emerged after his arrested in 2021). Earlier that year, he complained to an associate that more and more people were competing to resell cards in China, eating into his profits. So many scammers were flocking to Walmart that he and his team regularly encountered them at self-checkout counters.... "We ran into quite a few at the store, and we even started chatting."
It was apparently so common that federal prosecutors started calling it "The Walmart scheme." And while the store is supposed to watch for customers who appear to be acting on a scammer's instructions, "Too often, Walmart has failed." America's largest retailer has long been a facilitator of fraud on a mass scale, a ProPublica investigation has found. For roughly a decade, Walmart has resisted tougher enforcement while breaking promises to regulators and skimping on employee training, according to more than 50 interviews, internal documents supplied by former industry executives, court filings and other public records...More than $1 billion in fraud losses were routed through the company's financial systems between 2013 and 2022, according to filings by the Federal Trade Commission and court cases analyzed by ProPublica. That has helped fuel a boom in financial chicanery. Americans, many of them elderly, were swindled out of $27 billion between 2013 and 2022, according to the FTC...

Walmart has a financial incentive to avoid cracking down. It makes money each time a Walmart gift card is used and earns a fee when another brand of card is bought. And it receives one commission when a person sends a money transfer and a second when the recipient picks it up. The company's financial services business generates hundreds of millions in annual profits. (Its filings do not provide specific figures for gift cards and money transfers.) "They were concerned about the bucks. That's all," Nick Alicea, a former fraud team leader for the U.S. Postal Inspection Service who investigated Walmart for years, told ProPublica. Walmart's deficiencies have repeatedly attracted government scrutiny. In 2017, the attorneys general of New York and Pennsylvania investigated Walmart over concerns that it was "reaping the benefits" of gift card fraud. The investigation concluded a year later with Walmart promising to restrict or eliminate the use of its gift cards to purchase other gift cards...

Instead, the company let the practice continue until 2022 — even after it knew that millions of dollars were being laundered through its stores. The FTC sued Walmart in 2022, alleging it "turned a blind eye" as criminals took advantage of its money transfer service. Walmart, the FTC claimed, pocketed millions in fees while "letting fraudsters fleece its customers." Summarizing the FTC's evidence, a federal judge in the case wrote that "Walmart knew that its services were used by fraudsters" and that the company was repeatedly warned about certain stores where "twenty-five, fifty, or even seventy-five percent of money transfer activity was fraudulent." Separately, a federal grand jury in Pennsylvania is hearing evidence of possible criminal conduct in Walmart's money transfer business, according to corporate filings that did not detail the allegations.

While the FTC says Americans were swindled out of $27 billion between 2013 and 2022, Walmart responded to ProPublica's investigation by pointing out it's refunded $4 million to gift-card fraud victims, and also blocked more than $700 million in suspicious money transfers. "We have a robust anti-fraud program and other controls to help stop scammers and other criminals who may use the financial services we offer to harm our customers." The company's legal filings in the FTC case struck a different tone. Walmart is seeking to dismiss the suit, partly on the grounds that it has "no responsibility to protect against the criminal conduct of third parties." Though fraud is "deeply unfortunate," Walmart argues, such schemes are "reasonably avoidable by consumers."
Other interesting quotes from the article:
  • "Walmart outlets at one point accounted for the top 20 locations for fraud nationally among chains that partnered with MoneyGram, according to internal documents."
  • "In a single week in March 2017, consumers claiming they'd been duped into a money transfer filed 610 complaints about Walmart, according to documents obtained by ProPublica. CVS ranked second, with 47."
  • "Site inspections routinely found that Walmart staff lacked anti-fraud training and that employees failed to ask screening questions..."
  • Walmart resisted MoneyGram's attempts to fight fraud [according to the former fraud team leader for the postal inspector's office in Harrisburg, Pennsylvania, who investigated MoneyGram and Walmart].

Cloud

WSJ: Broadcom's VMware Overhaul 'Draws Attention of CIOs' (msn.com) 74

The Wall Street Journal reports: Moves by Broadcom to shore up its $69 billion VMware acquisition, completed in November, include a streamlining of product bundles and new billing models — efforts in line with the chip giant's past acquisitions, but not necessarily welcomed by all of VMware's customers... Broadcom has also recently laid off at least hundreds of VMware workers, disclosures from the Worker Adjustment and Retraining Notification show....

VMware has approximately 330,000 customers, according to the company. Chief information officers say they are closely monitoring what comes next.

"Any CIO that's not taking stock of what they have and mentally considering alternatives and monitoring what else is out there is probably not doing their job," said Jay Ferro, executive vice president and chief information, technology and product officer at clinical research data-management company Clario. All these changes, plus past remarks by Broadcom that its go-to-market strategy is to focus completely on the needs and priorities of its top 600 customers, has left some CIOs rethinking the relationship. Price increases and degrading levels of support are among their biggest concerns. "I'm not one of their top, probably 600 customers, so they've been very clear to me where I fit in that pecking order," said Todd Florence, CIO of trucking company Estes Express Lines. Florence said he's started looking into alternatives. "It certainly doesn't make you feel good, like you're going to get lots of support going forward...."

Goya Foods CIO Suvajit Basu said he is thinking about how to reduce the food company's reliance on VMware as the sole and longtime dominant provider of virtualization for the data center. "They're going to increase their prices or change their licensing so the customer pays more," he said. "And I think this is starting to hit us right now...." Forrester estimates that in 2024, 20% of VMware customers will begin the process of exiting VMware in favor of alternatives.

On the other hand, a group VP at market researcher IDC tells the Journal that on the upside, now VMware and Broadcom will have to engage more actively with customers on the value of new produces included in their bundles...
Businesses

S&P 500 Index Sets Record High, Thanks to 'AI-Driven Frenzy' and Tech Stocks (msn.com) 46

The S&P 500 index tracks 500 of the largest companies listed on U.S. stock exchanges, according to Wikipedia.

And Friday that index "hit an all-time closing high," reports the Washington Post, "reflecting the staggering gains of a coterie of Big Tech firms against the backdrop of a surprisingly stable economy." The broad-based index closed at 4,839.81 — up more than 1 percent for the day — surpassing the previous closing record set in January of 2022. The stock market surged upward in the final quarter of 2023 as evidence gathered that the [U.S.] economy has not tipped into recession territory, despite the Federal Reserve's campaign to raise interest rates. At the same time analysts point to an AI-driven frenzy on Wall Street that rivals the dot-com boom of the late '90s, when investors sought to capitalize on the transformative gains brought by the early internet.

A booming S&P 500 is a welcome sign for the millions of Americans who invest in the index through retirement accounts. Investors in 2022 had about $5.7 trillion in assets passively indexed to the S&P 500 and another $5.7 trillion in funds that use it as a benchmark comparison, according to S&P Global. Voters' feelings about the stock market and economy could affect the 2024 election...

Tech companies, including a few names heavily associated with artificial intelligence work, led the S&P 500's gains. Seven of the largest tech stocks known as the "Magnificent Seven" — Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta — increased 75 percent on average in 2023 and represented 30 percent of the index's total market value at the end of 2023. "AI is the new dot-com," said Michael Farr of Farr, Miller and Washington. "It's the new magic that is going to change the world that we don't really understand yet. But we all understand it's very powerful." Those seven stocks made up around half of the S&P 500's growth last year. Nvidia, whose high-performance chips have become popular for AI uses, had the best year of the bunch, at one point gaining nearly $190 billion in value overnight, a 24 percent gain.

In the last 12 months, the index has risen 21.83%.

The article notes that "Although the rest of the market has lagged Big Tech, analysts say promising economic data from recent months has boosted optimism about the broader economy."
AI

OpenAI Ceo Sam Altman Is Still Chasing Billions To Build AI Chips 11

According to Bloomberg (paywalled), OpenAI CEO Sam Altman is reportedly raising billions to develop a global network of chip fabrication factories, collaborating with leading chip manufacturers to address the high demand for chips required for advanced AI models. The Verge reports: A major cost and limitation for running AI models is having enough chips to handle the computations behind bots like ChatGPT or DALL-E that answer prompts and generate images. Nvidia's value rose above $1 trillion for the first time last year, partly due to a virtual monopoly it has as GPT-4, Gemini, Llama 2, and other models depend heavily on its popular H100 GPUs.

Accordingly, the race to manufacture more high-powered chips to run complex AI systems has only intensified. The limited number of fabs capable of making high-end chips is driving Altman or anyone else to bid for capacity years before you need it in order to produce the new chips. And going against the likes of Apple requires deep-pocketed investors who will front costs that the nonprofit OpenAI still can't afford. SoftBank Group and Abu Dhabi-based AI holding company G42 have reportedly been in talks about raising money for Altman's project.
Bitcoin

'Stablecoins' Enabled $40 Billion In Crypto Crime Since 2022 (wired.com) 21

An anonymous reader quotes a report from Wired: Stablecoins, cryptocurrencies pegged to a stable value like the US dollar, were created with the promise of bringing the frictionless, border-crossing fluidity of Bitcoin to a form of digital money with far less volatility. That combination has proved to be wildly popular, rocketing the total value of stablecoin transactions since 2022 past even that of Bitcoin itself. It turns out, however, that as stablecoins have become popular among legitimate users over the past two years, they were even more popular among a different kind of user: those exploiting them for billions of dollars of international sanctions evasion and scams.

As part of itsannual crime report, cryptocurrency-tracing firm Chainalysis today released new numbers on the disproportionate use of stablecoins for both of those massive categories of illicit crypto transactions over the last year. By analyzing blockchains, Chainalysis determined that stablecoins were used in fully 70 percent of crypto scam transactions in 2023, 83 percent of crypto payments to sanctioned countries like Iran and Russia, and 84 percent of crypto payments to specifically sanctioned individuals and companies. Those numbers far outstrip stablecoins' growing overall use -- including for legitimate purposes -- which accounted for 59 percent of all cryptocurrency transaction volume in 2023.

In total, Chainalysis measured $40 billion in illicit stablecoin transactions in 2022 and 2023 combined. The largest single category of that stablecoin-enabled crime was sanctions evasion. In fact, across all cryptocurrencies, sanctions evasion accounted for more than half of the $24.2 billion in criminal transactions Chainalysis observed in 2023, with stablecoins representing the vast majority of those transactions. [...] Chainalysis concedes that the analysis in its report excludes some cryptocurrencies like Monero and Zcash that are designed to be harder or impossible to trace with blockchain analysis. It also says it based its numbers on the type of cryptocurrency sent directly to an illicit actor, which may leave out other currencies used in money laundering processes that repeatedly swap one type of cryptocurrency for another to make tracing more difficult.
"Whether it's an individual located in Iran or a bad guy trying to launder money -- either way, there's a benefit to the stability of the US dollar that people are looking to obtain," says Andrew Fierman, Chainalysis' head of sanctions strategy. "If you're in a jurisdiction where you don't have access to the US dollar due to sanctions, stablecoins become an interesting play."

Fierman points to Nobitex, the largest cryptocurrency exchange operating in the sanctioned country of Iran, as well as Garantex, a notorious exchange based in Russia that has been specifically sanctioned for its widespread criminal use. According to Chainalysis, "Stablecoin usage on Nobitex outstrips bitcoin by a 9:1 ratio, and on Garantex by a 5:1 ratio," reports Wired. "That's a stark difference from the roughly 1:1 ratio between stablecoins and bitcoins on a few nonsanctioned mainstream exchanges that Chainalysis checked for comparison."
Education

'A Groundbreaking Study Shows Kids Learn Better On Paper, Not Screens. Now What?' (theguardian.com) 130

In an opinion piece for the Guardian, American journalist and author John R. MacArthur discusses the alarming decline in reading skills among American youth, highlighted by a Department of Education survey showing significant drops in text comprehension since 2019-2020, with the situation worsening since 2012. While remote learning during the pandemic and other factors like screen-based reading are blamed, a new study by Columbia University suggests that reading on paper is more effective for comprehension than reading on screens, a finding not yet widely adopted in digital-focused educational approaches. From the report: What if the principal culprit behind the fall of middle-school literacy is neither a virus, nor a union leader, nor "remote learning"? Until recently there has been no scientific answer to this urgent question, but a soon-to-be published, groundbreaking study from neuroscientists at Columbia University's Teachers College has come down decisively on the matter: for "deeper reading" there is a clear advantage to reading a text on paper, rather than on a screen, where "shallow reading was observed." [...] [Dr Karen Froud] and her team are cautious in their conclusions and reluctant to make hard recommendations for classroom protocol and curriculum. Nevertheless, the researchers state: "We do think that these study outcomes warrant adding our voices ... in suggesting that we should not yet throw away printed books, since we were able to observe in our participant sample an advantage for depth of processing when reading from print."

I would go even further than Froud in delineating what's at stake. For more than a decade, social scientists, including the Norwegian scholar Anne Mangen, have been reporting on the superiority of reading comprehension and retention on paper. As Froud's team says in its article: "Reading both expository and complex texts from paper seems to be consistently associated with deeper comprehension and learning" across the full range of social scientific literature. But the work of Mangen and others hasn't influenced local school boards, such as Houston's, which keep throwing out printed books and closing libraries in favor of digital teaching programs and Google Chromebooks. Drunk on the magical realism and exaggerated promises of the "digital revolution," school districts around the country are eagerly converting to computerized test-taking and screen-reading programs at the precise moment when rigorous scientific research is showing that the old-fashioned paper method is better for teaching children how to read.

Indeed, for the tech boosters, Covid really wasn't all bad for public-school education: "As much as the pandemic was an awful time period," says Todd Winch, the Levittown, Long Island, school superintendent, "one silver lining was it pushed us forward to quickly add tech supports." Newsday enthusiastically reports: "Island schools are going all-in on high tech, with teachers saying they are using computer programs such as Google Classroom, I-Ready, and Canvas to deliver tests and assignments and to grade papers." Terrific, especially for Google, which was slated to sell 600 Chromebooks to the Jericho school district, and which since 2020 has sold nearly $14bn worth of the cheap laptops to K-12 schools and universities.

If only Winch and his colleagues had attended the Teachers College symposium that presented the Froud study last September. The star panelist was the nation's leading expert on reading and the brain, John Gabrieli, an MIT neuroscientist who is skeptical about the promises of big tech and its salesmen: "I am impressed how educational technology has had no effect on scale, on reading outcomes, on reading difficulties, on equity issues," he told the New York audience. "How is it that none of it has lifted, on any scale, reading? ... It's like people just say, "Here is a product. If you can get it into a thousand classrooms, we'll make a bunch of money.' And that's OK; that's our system. We just have to evaluate which technology is helping people, and then promote that technology over the marketing of technology that has made no difference on behalf of students ... It's all been product and not purpose." I'll only take issue with the notion that it's "OK" to rob kids of their full intellectual potential in the service of sales -- before they even get started understanding what it means to think, let alone read.

Bug

Fujitsu is Sorry That Its Software Helped Send Innocent People To Prison (arstechnica.com) 143

Fujitsu has apologized for its role in the British Post Office scandal, acknowledging that its buggy accounting software contributed to the wrongful prosecutions of hundreds of postal employees. From a report: "Fujitsu would like to apologize for our part in this appalling miscarriage of justice," Paul Patterson, co-CEO of Fujitsu's European division, said in a hearing held by the UK Parliament's Business and Trade Committee. "We were involved from the very start. We did have bugs and errors in the system and we did help the Post Office in their prosecutions of the sub-postmasters. For that we are truly sorry."

The committee hearing focused on possible compensation for victims of what has been called "the worst miscarriage of justice in British history." Patterson said that Fujitsu has "a moral obligation" to contribute to the compensation for victims. A BBC report explains that between 1999 and 2015, "more than 900 sub-postmasters and postmistresses were prosecuted for theft and false accounting after money appeared to be missing from their branches, but the prosecutions were based on evidence from faulty Horizon software. Some sub-postmasters wrongfully went to prison, many were financially ruined. Some have since died."

The Almighty Buck

Apple Revises App Store Rules To Let Developers Link To Outside Payment Methods (9to5mac.com) 152

Apple has announced changes to its U.S. App Store, allowing developers to link to alternative payment methods, "provided that the app also offer purchases through Apple's own In-App Purchase system," reports 9to5Mac. The change comes in light of the Supreme Court declining to hear Apple's appeal in its legal battle with Epic Games. From the report: The guideline says that developers can apply for an entitlement that allows them to include buttons or links directing users to out-of-app purchasing mechanisms: "Developers may apply for an entitlement to provide a link in their app to a website the developer owns or maintains responsibility for in order to purchase such items. Learn more about the entitlement. In accordance with the entitlement agreement, the link may inform users about where and how to purchase those in-app purchase items, and the fact that such items may be available for a comparatively lower price. The entitlement is limited to use only in the iOS or iPadOS App Store on the United States storefront. In all other storefronts, apps and their metadata may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase."

According to Apple, the link to an alternative payment platform can only be displayed on "one app page the end user navigates to (not an interstitial, modal, or pop-up), in a single, dedicated location on such page, and may not persist beyond that page." Apple has provided templates that developers can use for communicating with customers about alternative in-app payment systems [...]. Apple has also confirmed that it will charge a commission on purchases made through alternative payment platforms. This commission will be 12% for developers who are a member of the App Store Small Business Program and 27% for other apps. The commission will apply to "purchases made within seven days after a user taps on an External Purchase Link and continues from the system disclosure sheet to an external website." Apple says developers will be required to provide accounting of qualifying out-of-app purchases and remit the appropriate commissions. [...] However, Apple also says that collecting this commission will be "exceedingly difficult and, in many cases, impossible." [...]

The other anti-steering change that Apple is required to make is to allow developers to communicate with customers outside of their apps about alternative purchasing options, such as via email. Apple made this change in 2021 as part of its settlement of a class-action lawsuit brought on by small developers.

China

China's Chip Imports Fell By a Record 15% Due To US Sanctions, Globally Weaker Demand (tomshardware.com) 49

According to Bloomberg, China's chip import value dropped significantly by 15.4% in 2023, from $413 billion to $349 billion. "Chip sales were down across the board in 2023 thanks to a weakening global economy, but China's chip imports indicate that its economy might be in trouble," reports Tom's Hardware. "The country's inability to import cutting-edge silicon is also certainly a factor in its decreasing chip imports." From the report: In 2022, the value of chip imports to China stood at $413 billion, and in 2023 the country only imported chips worth a total of $349 billion, a 15.4% decrease in value. That a drop happened at all isn't surprising; even TSMC, usually considered to be one of the most advanced fabbing corporation in the world, saw its sales decline by 4.5%. However, a 15.4% decrease in shipments is much more significant, and indicates China has particular issues other than weaker demand across the world.

China's ongoing economic issues, such as its high deflation could play a part. Deflation is when currency increases in value, the polar opposite of inflation, when currency loses value. As inflation has been a significant problem for countries such as the U.S. and UK, deflation might sound much more appealing, but economically it can be problematic. A deflationary economy encourages consumers not to spend, since money is increasing in value, meaning buyers can purchase more if they wait. In other words, deflation decreases demand for products like semiconductors.

However, shipment volume only decreased by 10.8% compared to the 15.4% decline in value, meaning the chips that China didn't buy in 2023 were particularly valuable. This likely reflects U.S. sanctions on China, which prevents it from buying top-end graphics cards, especially from Nvidia. The H100, H200, GH200, and the RTX 4090 are illegal to ship to China, and they're some of Nvidia's best GPUs. The moving target for U.S. sanctions could also make exporters and importers more tepid, as it's hard to tell if more sanctions could suddenly upend plans and business deals.

The Almighty Buck

The World Could Get Its First Trillionaire Within 10 Years (apnews.com) 287

An anonymous reader quotes a report from the Associated Press: The world could have its first trillionaire within a decade, anti-poverty organization Oxfam International said Monday in its annual assessment of global inequalities timed to the gathering of political and business elites at the Swiss ski resort of Davos. Oxfam, which for years has been trying to highlight the growing disparities between the super-rich and the bulk of the global population during the World Economic Forum's annual meeting, reckons the gap has been "supercharged" since the coronavirus pandemic.

The group said the fortunes of the five richest men -- Tesla CEO Elon Musk, Bernard Arnault and his family of luxury company LVMH, Amazon founder Jeff Bezos, Oracle founder Larry Ellison and investment guru Warren Buffett -- have spiked by 114% in real terms since 2020, when the world was reeling from the pandemic. Oxfam's interim executive director said the report showed that the world is entering a "decade of division." "We have the top five billionaires, they have doubled their wealth. On the other hand, almost 5 billion people have become poorer," Amitabh Behar said in an interview in Davos, Switzerland, where the forum's annual meeting takes place this week.

"Very soon, Oxfam predicts that we will have a trillionaire within a decade," Behar said, referring to a person who has a thousand billion dollars. "Whereas to fight poverty, we need more than 200 years." If someone does reach that trillion-dollar milestone -- and it could be someone not even on any list of richest people right now -- he or she would have the same value as oil-rich Saudi Arabia. [...] To calculate the top five richest billionaires, Oxfam used figures from Forbes as of November 2023. Their total wealth then was $869 billion, up from $340 billion in March 2020, a nominal increase of 155%. For the bottom 60% of the global population, Oxfam used figures from the UBS Global Wealth Report 2023 and from the Credit Suisse Global Wealth Databook 2019. Both used the same methodology.
Some of the measures Oxfam said should be considered to reduce global inequality include the permanent taxation of the wealthiest in every country, more effective taxation of big corporations and a renewed drive against tax avoidance. "To end extreme inequality, governments must radically redistribute the power of billionaires and corporations back to ordinary people," reports Oxfam. "A more equal world is possible if governments effectively regulate and reimagine the private sector."
The Almighty Buck

'Technical Glitch' In Payroll Software Sparks Riots In Papua New Guinea (theregister.com) 40

Papua New Guinea declared a two-week state of emergency following riots and multiple deaths, triggered by a payroll system error that incorrectly applied higher tax rates to government employees' salaries. The Register reports: The pacific nation recently extended COVID-era tax reductions into 2024, but the payroll system used for government employees was not configured correctly and in the first pay run of 2024 reverted to older and higher tax rates. Government workers were therefore taxed at a higher rate and their pay packets were around $100 less than expected -- about half the pay for many employees. That situation was misinterpreted as a surprise tax hike and some workers, including Police, went on strike to protest the situation.

Some saw the absence of law enforcement as an opportunity, and riots quickly spread across the city, accompanied by looting. Prime Minister James Marape described the situation as a "technical glitch," before later declaring a state of emergency that has seen troops stationed in the capital to restore order. Commissioner general of the Internal Revenue Commission, Sam Koin, apologized "for the loss of lives and properties during these regrettable and avoidable incidents."

Businesses

Self-Checkout Hasn't Delivered (bbc.com) 316

quonset writes: When self-checkout at stores was rolled out, many people, including on /., cheered. No longer would they have to wait behind the senior citizen who couldn't remember the PIN for their debit card. No longer would they have to wait in long lines trying to ignore the idle chitchat from fellow shoppers. From now on it would be a breeze to get in and get out without human interaction. Except that hasn't happened.

For shoppers, self-checkout was supposed to provide convenience and speed. Retailers hoped it would usher in a new age of cost savings. Their thinking: why pay six employees when you could pay one to oversee customers at self-service registers, as they do their own labour of scanning and bagging for free? While self-checkout technology has its theoretical selling points for both consumers and businesses, it mostly isn't living up to expectations. Customers are still queueing. They need store employees to help clear kiosk errors or check their identifications for age-restricted items. Stores still need to have workers on-hand to help them, and to service the machines.

The technology is, in some cases, more trouble than it's worth.

"It hasn't delivered anything that it promises," says Christopher Andrews, associate professor and chair of sociology at Drew University, US, and author of The Overworked Consumer: Self-Checkouts, Supermarkets, and the Do-It-Yourself Economy. "Stores saw this as the next frontier If they could get the consumer to think that [self-checkout] was a preferable way to shop, then they could cut labour costs. But they're finding that people need help doing it, or that they'll steal stuff. They ended up realising that they're not saving money, they're losing money."

Businesses

Trader Loses $5.7 Million To Slippage in Memecoin Trade 54

Web3 is Going Great: A trader looking to buy $9 million of a recently popular Solana memecoin, dogwifhat (WIF), lost $5.7 million of their funds to slippage as they placed a massive order in a pool with relatively low liquidity. $5.7 million of their funds were lost to "slippage" -- the discrepancy in price that can occur when a trade is so large or a market is so illiquid that the trade itself impacts the asset price.
AI

Can The AI Industry Continue To Avoid Paying for the Content They're Using? (yahoo.com) 196

Last year Marc Andreessen's firm "argued that AI companies would go broke if they had to pay copyright royalties or licensing fees," notes a Los Angeles Times technology columnist.

But are these powerful companies doing even more to ensure they're not billed for their training data? Just this week, British media outlets reported that OpenAI has made the same case, seeking an exemption from copyright rules in England, claiming that the company simply couldn't operate without ingesting copyrighted materials.... The AI companies also argue what they're doing falls under the legal doctrine of fair use — probably the strongest argument they've got — because it's transformative. This argument helped Google win in court against the big book publishers when it was copying books into its massive Google Books database, and defeat claims that YouTube was profiting by allowing users to host and promulgate unlicensed material. Next, the AI companies argue that copyright-violating outputs like those uncovered by AI expert Gary Marcus, film industry veteran Reid Southern and the New York Times are rare or are bugs that are going to be patched.
But finally, William Fitzgerald, a partner at the Worker Agency and former member of the public policy team at Google, predicts Google will try to line up supportive groups to tell lawmakers artists support AI: Fitzgerald also sees Google's fingerprints on Creative Commons' embrace of the argument that AI art is fair use, as Google is a major funder of the organization. "It's worrisome to see Google deploy the same lobbying tactics they've developed over the years to ensure workers don't get paid fairly for their labor," Fitzgerald said. And OpenAI is close behind. It is not only taking a similar approach to heading off copyright complaints as Google, but it's also hiring the same people: It hired Fred Von Lohmann, Google's former director of copyright policy, as its top copyright lawyer....

[Marcus says] "There's an obvious alternative here — OpenAI's saying that we need all this or we can't build AI — but they could pay for it!" We want a world with artists and with writers, after all, he adds, one that rewards artistic work — not one where all the money goes to the top because a handful of tech companies won a digital land grab. "It's up to workers everywhere to see this for what it is, get organized, educate lawmakers and fight to get paid fairly for their labor," Fitzgerald says.

"Because if they don't, Google and OpenAI will continue to profit from other people's labor and content for a long time to come."

The Courts

Despite 16-Year Glitch, UK Law Still Considers Computers 'Reliable' By Default (theguardian.com) 96

Long-time Slashdot reader Geoffrey.landis writes: Hundreds of British postal workers wrongly convicted of theft due to faulty accounting software could have their convictions reversed, according to a story from the BBC. Between 1999 and 2015, the Post Office prosecuted 700 sub-postmasters and sub-postmistresses — an average of one a week — based on information from a computer system called Horizon, after faulty software wrongly made it look like money was missing. Some 283 more cases were brought by other bodies including the Crown Prosecution Service.
2024 began with a four-part dramatization of the scandal airing on British television, and the BBC reporting today that its reporters originally investigating the story confronted "lobbying, misinformation and outright lies."

Yet the Guardian notes that to this day in English and Welsh law, computers are still assumed to be "reliable" unless and until proven otherwise. But critics of this approach say this reverses the burden of proof normally applied in criminal cases. Stephen Mason, a barrister and expert on electronic evidence, said: "It says, for the person who's saying 'there's something wrong with this computer', that they have to prove it. Even if it's the person accusing them who has the information...."

He and colleagues had been expressing alarm about the presumption as far back as 2009. "My view is that the Post Office would never have got anywhere near as far as it did if this presumption wasn't in place," Mason said... [W]hen post office operators were accused of having stolen money, the hallucinatory evidence of the Horizon system was deemed sufficient proof. Without any evidence to the contrary, the defendants could not force the system to be tested in court and their loss was all but guaranteed.

The influence of English common law internationally means that the presumption of reliability is widespread. Mason cites cases from New Zealand, Singapore and the U.S. that upheld the standard and just one notable case where the opposite happened... The rise of AI systems made it even more pressing to reassess the law, said Noah Waisberg, the co-founder and CEO of the legal AI platform Zuva.

Thanks to Slashdot reader Bruce66423 for sharing the article.

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