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Facebook

Zuckerberg's Facebook Burns $500 Billion Becoming 'Meta'. Are They In Trouble? (nymag.com) 169

Slashdot reader McGruber shares a scathing column from New York magazine arguing that "There has never been a self-immolation quite like Meta Platforms, the parent company of Facebook. Mark Zuckerberg's social-media company has lost more than half a trillion dollars in market value since its August peak — about half of that vaporized in a single day, the biggest drop ever — as it starts to weaken from the constant siege of competitors and dissenters without and within.

"The fallout is so bad that Meta, once the sixth-largest company in the world by market capitalization, has fallen out of the top ten, replaced by two computer-chip makers, Warren Buffett's Berkshire Hathaway, and the Chinese e-commerce company Tencent..."

They're calling it "an ignominious fall from a rarefied group of world-dominating companies." Facebook's once unbeatable ad-tracking system — the engine that made it a more than $1 trillion company — has effectively been neutralized by the likes of Apple, which allows users to block the company's trackers. (Google is set to start phasing in similar protections to its users over the next two years.) Facebook's user base has started to shrink after revelations by whistleblowers and leaks that showed how harmful social media could be to teen users, who are flocking to less toxic competitors like TikTok anyway. And Zuckerberg — clearly bored with the company he founded 18 years ago — has shifted his vision into an immersive version of the internet, complete with headsets and digital avatars, that he calls the metaverse, an ambition that sets up Facebook's competition not with another Silicon Valley company but with reality itself....

Apple and Google have decided they're going to allow their users to disable code that tracks people across the internet, which happens to be good for their business model. According to The Wall Street Journal, the fallout has been so severe that advertisers are shifting their entire ad budgets to Google since Facebook is no longer profitable.

The article's final point is that in the middle of all this, Zuckerberg has committed the company to a "metaverse" future — even though Wall Street investors seem almost unanimously unconvinced.

"Clearly, Zuckerberg has plenty of money to burn on his ambitions, but what's less clear is if he'll be able to bring back the armies of people who once believed in his ability to conquer the world."
Bitcoin

Crypto Investors Are Cashing In On a Trump Tax Break Meant To Help the Poor (yahoo.com) 102

"The mystery of how cryptocurrency miners are paying for their energy-intensive mining operations in rural areas has been solved," writes Slashdot reader fermion. "Instead of paying up to 40% in taxes, the miners build mining operations in 'opportunity zones.' There are few requirements to show these produce jobs or any income." The HuffPost reports: [Some cryptocurrency traders] are attempting to take advantage of a controversial tax incentive in Republicans' 2017 major tax legislation -- specifically, by investing in "opportunity zones," which were sold as a plan to buoy the poorest American neighborhoods but have evolved into a way for wealthy investors to funnel billions in untaxed profits into virtually any venture they choose. The law allowed companies and investors to delay and reduce their capital gains taxes after they sell a financial asset like stock, so long as they invest the money in a new project located in one of thousands of struggling American neighborhoods designated as opportunity zones. If the investment lasts for more than 10 years, the profits from the new business are completely tax-free. Investors face few requirements to prove that their projects will create jobs or housing for a community's existing residents, and scores of them have taken advantage of opportunity zones to erect high-end hotels and luxury real estate in gentrifying neighborhoods.

Crypto investors -- whose profits are subject to the capital gains tax of nearly 40% -- are making their own run at using opportunity zones by investing in energy-intensive crypto mining operations in rural places around the country. "It's a perfect fit," said Blake Christian, a Utah accountant who specializes in opportunity zones and has a newfound clientele of crypto investors. "They've just had this big windfall and invariably they're looking for a way to save some money because they're about to get drilled on short term capital gains taxes. And they want to keep rolling the dice" by staying invested in the crypto market. Fifteen or 20 clients of Christian's clients, who have made money in the low seven-figures mining or trading cryptocurrency, have set up warehouses in opportunity zones full of powerful computers that solve equations in order to "mine" cryptocurrency and lease the computing power to other customers. The ideal location for a crypto mine is close to plentiful, cheap electrical power -- of which many rural opportunity zones have plenty. One of Christian's clients is setting one up next to a Texas oil field that has promised bargain-basement rates on natural gas. Another client's startup has a similar arrangement with a solar power provider.

Tom Frazier's company, Redivider Blockchain, is raising money to manufacture prefabricated, moveable data centers that can be plunked down anywhere in the country; he sees opportunity zone status not as a black mark but as a political opportunity. He argues that by setting up shop in opportunity zones, crypto businesses could generate crucial goodwill around an industry and technology still facing widespread derision and skepticism. "We're creating jobs where Americans need them," he told HuffPost in a recent interview. Frazier said opportunity zones have gotten a reputation as a boondoggle because the vast majority of investments have involved glitzy, one-off real estate projects. Data center businesses could support tech and manufacturing jobs at locations all over the country, he said. [...] Critics say there's nothing wrong with ambitious business -- just that they don't require giant federal tax breaks.
"Why are we taking forgone taxpayer revenue and subsidizing this, of all the things we want to spend our nation's money on?" said Brett Theodos, an Urban Institute senior fellow and skeptic of opportunity zones. "Is crypto mining a bad thing? Maybe yes if you're the environment, maybe not for an individual community. But is it something we need to be subsidizing, as the federal government, in order to produce? I'm not clear why we'd want to do that."
Republicans

Twitter's Algorithm Favors the Political Right, Study Finds (theconversation.com) 270

An anonymous reader quotes a report from The Conversation: Twitter has on various occasions been accused of political bias, with politicians or commentators alleging Twitter's algorithm amplifies their opponents' voices, or silences their own. In this climate, Twitter commissioned a study to understand whether their algorithm may be biased towards a certain political ideology. While Twitter publicized the findings of the research in 2021, the study has now been published in the peer-reviewed journal PNAS.

The study looked at a sample of 4% of all Twitter users who had been exposed to the algorithm (46,470,596 unique users). It also included a control group of 11,617,373 users who had never received any automatically recommended tweets in their feeds. This wasn't a manual study, whereby, say, the researchers recruited volunteers and asked them questions about their experiences. It wouldn't have been possible to study such a large number of users that way. Instead, a computer model allowed the researchers to generate their findings. [...] The researchers found that in six out of the seven countries (Germany was the exception), the algorithm significantly favored the amplification of tweets from politically right-leaning sources. Overall, the amplification trend wasn't significant among individual politicians from specific parties, but was when they were taken together as a group. The starkest contrasts were seen in Canada (the Liberals' tweets were amplified 43%, versus those of the Conservatives at 167%) and the UK (Labour's tweets were amplified 112%, while the Conservatives' were amplified at 176%).

In acknowledgement of the fact that tweets from elected officials represent only a small portion of political content on Twitter, the researchers also looked at whether the algorithm disproportionately amplifies news content from any particular point on the ideological spectrum. To this end, they measured the algorithmic amplification of 6.2 million political news articles shared in the US. To determine the political leaning of the news source, they used two independently curated media bias-rating datasets. Similar to the results in the first part of the study, the authors found that content from right-wing media outlets is amplified more than that from outlets at other points on the ideological spectrum. This part of the study also found far-left-leaning and far-right-leaning outlets were not significantly amplified compared with politically moderate outlets.
The authors of the study point out that the algorithms "might be influenced by the way different political groups operate," notes The Conversation. "So for example, some political groups might be deploying better tactics and strategies to amplify their content on Twitter."
Businesses

FCC Moves To Boost Cable Competition in Apartment Buildings (bloomberg.com) 49

Cable operators would face more competition for the roughly one-third of Americans living in apartment buildings under an order advanced Friday at the U.S. Federal Communications Commission. From a report: FCC Chairwoman Jessica Rosenworcel asked fellow commissioners to approve a measure that she said would "crack down on practices that lock out broadband competition and consumer choice." The order would prohibit cable service providers from entering into certain revenue sharing agreements with a building owner, and seek to ease alternative providers' access to the wiring of buildings, Rosenworcel said in a news release. The order would affect more than one-third of the U.S. population who live in apartments, mobile home parks, condominiums and public housing, Rosenworcel said. The order needs to succeed in a vote before the FCC, which is split with two Democrats and two Republicans as a Democrat nominated by President Joe Biden awaits Senate confirmation.
Government

Will Political Polarization Stop US Lawmakers from Regulating Big Tech? (nytimes.com) 82

A media lobbying group wants to see tech platforms reigned in with stronger antitrust laws. But the group's president tells the New York Times the biggest force supporting the status quo is hyperpartisanship.

The Times reports: The lack of regulation of technology companies is not because elected officials don't understand the internet. That used to be the case, and it helps explain why they have been so slow with oversight measures. Now, though, new questions about technology get mapped onto increasingly intractable political divides. Without the distractions of bizarre questions, what's left is the naked reality that the parties are deeply at odds over how to protect consumers and encourage businesses. Dozens of bills to strengthen privacy, encourage competition and quell misinformation have stalled because of a basic disagreement over the hand of government on businesses.

"Congress has again shown it's all bark and no bite when it comes to regulating Big Tech," said Jeffrey Chester, the executive director of the Center for Digital Democracy, a nonprofit consumer advocacy group, adding: "We've made no progress for decades."

The cost of the government's long education on tech is that regulation is increasingly out of reach. In April 2018, 14 years after founding thefacebook.com and more than five years after Facebook surpassed 1 billion users, Mark Zuckerberg appeared for the first time before Congress... [D]espite bipartisan agreement that tech companies have run roughshod and deserve more oversight, none of the bills discussed in those hearings four years ago have been passed. Turns out, holding a hearing that humbles the most powerful business executives in the world is much easier than legislating. Very bright lines of partisan disagreements appear when writing rules that restrict how much data can be collected by platforms, whether consumers can sue sites for defamation, and whether regulators can slow the march of dominance of Amazon, Apple, Google and Facebook.

The Times points out that, just for example, when it came to the possibility of regulating cryptocurrency, "the divides on regulation broke down along party lines" Wednesday after six crypto executives testified before a House committee. Democrats warned that the fast-growing industry needed clearer oversight. "Currently, cryptocurrency markets have no overarching or centralized regulatory framework, leaving investments in the digital assets space vulnerable to fraud, manipulation and abuse," said Representative Maxine Waters, the Democrat of California who chairs the committee. Other Democrats expressed similar caution....

Republicans hewed to their free-market stripes at the crypto hearing. Representative Pete Sessions, Republican of Texas, told the crypto executives that he was in favor of their work and that regulations the industry has embraced may go too far. Representative Ted Budd, Republican of North Carolina, worried that lawmakers could push innovation in financial technology out of the United States.

Social Networks

Instagram's Boss Faces Congress' Questions on Harm To Teens (axios.com) 22

The head of Instagram will find himself in Congress' crosshairs for the first time Wednesday in the one area lawmakers have shown they are willing to pass tech regulations -- protecting youngsters online. From a report: Republicans and Democrats have found common ground in grilling tech companies on how their products harm children, especially after revelations in The Wall Street Journal about Instagram's potential harm to the mental health of teen girls. Instagram head Adam Mosseri will testify before the Senate Commerce consumer protection subcommittee Wednesday on how the photo-sharing app is used by teens. Ahead of the hearing, Mosseri announced changes Instagram is making to better protect young users, including launching the Take a Break option for a user that's been scrolling for a certain amount of time and building a feature that will nudge teens toward different topics if they've been dwelling on one.

The company also announced that it plans a March launch for tools parents can use to see -- and limit -- how much time their kids spend on Instagram. And Instagram in January will allow users to bulk delete posts, including photos, videos, previous likes and comments. At the hearing, expect Mosseri to emphasize Instagram's commitment to sharing data with researchers, as well as the company's support for some regulations around verifying the age of users and designing age-appropriate experiences. Instagram's parent-company Meta has criticized the Wall Street Journal's reporting, arguing that it mischaracterized the Instagram research and that most teens suffering from issues such as sadness or anxiety find Instagram helpful.

United States

Senate Confirms FCC Chair Rosenworcel To Another Term, Narrowly Avoiding a Republican Majority (cnbc.com) 41

The Senate voted 68-31 to confirm Federal Communications Commission Chair Jessica Rosenworcel, the first woman to hold that title, to another five-year term, narrowly avoiding a Republican majority at the agency once her current term was set to expire at the end of the year. From a report: Rosenworcel gained the support of key Republicans, including Senate Commerce Committee Ranking Member Roger Wicker, R-Miss. President Joe Biden waited a historically long period to nominate Rosenworcel as well as former FCC official Gigi Sohn to a commissioner role. That prolonged period threatened to temporarily give the two Republicans on the commission a majority, since Rosenworcel would have had to leave the commission at the New Year if she was not confirmed to another term by then. While the role of acting chair, which sets the agenda for the agency, would go to the remaining Democrat on the commission until a permanent chair could be confirmed, the agency would likely not have been able to push forward anything but the most bipartisan of measures. Even with Rosenworcel's confirmation, the commission is set to remain stalemated on more controversial issues until a fifth commissioner is confirmed. Biden has signaled a desire to return to the net neutrality rules adopted by the FCC during the Obama administration, which were later repealed by the agency under former President Donald Trump. Republicans on the commission have continued to signal opposition to reclassifying broadband providers under Title II of the Communications Act of 1934, which the industry has argued would unfairly open the possibility of price regulation of their services. Companies subject to the reclassification included internet service providers like AT&T, Verizon and Comcast, parent company of CNBC owner NBCUniversal.
United States

Centrist Dems Sink Biden's Nominee for Top Bank Regulator (axios.com) 213

Five Democratic senators have told the White House they won't support Saule Omarova to head the Office of the Comptroller of the Currency, effectively killing her nomination for the powerful bank-regulator position. Axios: The defiant opposition from a broad coalition of senators reflects the real policy concerns they had with Omarova, a Cornell University law professor who's attracted controversy for her academic writings about hemming in big banks. Their opposition also hints at a willingness of some Democratic senators to buck the White House on an important nomination, even if it hands Republicans a political -- and symbolic -- victory.

Republicans have attacked the Kazakh-born scholar in remarkably personal terms, and turned her nomination into a proxy battle over how banks should be regulated. Driving the news: In phone call on Wednesday, Sens. Jon Tester (D-Mont.) Mark Warner (D-Va.) and Kyrsten Sinema (D-Ariz.), all members of the Senate Banking Committee, told Sen. Sherrod Brown (D-Ohio) -- the panel's chairman -- of their opposition. They're joined in opposing her by Sens. John Hickenlooper (D-Colo.) and Mark Kelly (D-Ariz.).

Bitcoin

Texas Plans To Become the Bitcoin Capital, Vulnerable Power Grid and All (bloomberg.com) 119

An anonymous reader quotes a report from Bloomberg: Texas, already home to the most vulnerable power grid in the U.S., is about to be hit by a surge in demand for electricity that's twice the size of Austin's. An army of cryptocurrency miners heading to the state for its cheap power and laissez-faire regulation is forecast to send demand soaring by as much as 5,000 megawatts over the next two years. The crypto migration to Texas has been building for months, but the sheer volume of power those miners will need -- two times more than the capital city of almost 1 million people consumed in all of 2020 -- is only now becoming clear.

The boom comes as the electrical system is already under strain from an expanding population and robust economy. Even before the new demand comes online, the state's grid has proven to be lethally unreliable. Catastrophic blackouts in February plunged millions into darkness for days, and, ultimately, led to at least 210 deaths. Proponents like Senator Ted Cruz and Governor Greg Abbott, both Republicans, say crypto miners are ultimately good for the grid, since they say the miners can soak up excess clean power and, when needed, can voluntarily throttle back in seconds to help avert blackouts. But it raises the question of what these miners will do when the state's electricity demand inevitably outstrips supply: Will they adhere to an honor system of curtailing their power use, especially when the Bitcoin price is itself so high, or will it mean even more pressure on an overwhelmed grid?

Miners setting up shop in the Lone Star State can often count on a 10-year tax abatement, sales tax credits and workforce training from the state, depending on where they are located and how many jobs they add. Even without formal incentives, the cheap power prices and the state's hands-off policy toward business is often enough of a lure. The pitch is working: The grid operator Electric Reliability Council of Texas, or Ercot, will account for about 20% of the Bitcoin network globally by the end of 2022, up from 8% to 10% today, according to Lee Bratcher, president of the Texas Blockchain council. Right now, Ercot has somewhere between 500 and 1,000 megawatts of mining capacity, out of about 2,000 nationwide. The state grid will add another 3,000 to 5,000 megawatts of mining demand by the end of 2023, he said.

Facebook

Three Out of Four Adults Think Facebook Is Making Society Worse, Poll Finds (cnn.com) 159

An anonymous reader shares the results of a new poll (PDF) from CNN, adding: "Facebook should be treated like cigarettes." From the report: Roughly three-quarters of adults believe Facebook is making American society worse, a new CNN poll (PDF) conducted by SSRS finds [...]. Americans say, 76% to 11%, that Facebook makes society worse, not better, according to the survey. Another 13% say it has no effect either way. That broadly negative appraisal holds across gender, age and racial lines. Even frequent Facebook users -- those who report using the site at least several times a week -- say 70% to 14% that the social network harms, rather than helps, US society. Although majorities across parties say Facebook is doing more harm than good, that feeling spikes among Republicans (82%).

Among the majority overall who think Facebook is worsening society, however, there's less of an overwhelming consensus on whether or not the platform itself is primarily to blame: 55% say that the way some people use Facebook is more at fault, with 45% saying it's more due to the way Facebook itself is run. Overall, about one-third of the public -- including 44% of Republicans and 27% of Democrats -- say both that Facebook is making American society worse and that Facebook itself is more at fault than its users.

AI

New Bipartisan Bill Takes Aim at Algorithms (axios.com) 173

A bipartisan group of House lawmakers has introduced a companion to a Senate bill that would let people use algorithm-free versions of tech platforms, according to a copy of the text shared exclusively with Axios. From the report: Recent revelations about Facebook's internal research findings have renewed lawmaker interest in bills that seek to give people more of a say in how algorithms shape their online experiences. The bill shows that anger over how platforms use their algorithms to target users with specialized content is a bipartisan issue with momentum on Capitol Hill. The algorithms that personalize content on social networks and other apps can make services addictive, violate users' privacy and promote extremism, critics and many lawmakers argue. Conservatives have also claimed that services deliberately censor their speech.

The Filter Bubble Transparency Act would require internet platforms to let people use a version of their services where content selections are not driven by algorithms. It's sponsored by Reps. Ken Buck (R-Colo.), David Cicilline (D-R.I.), Lori Trahan (D-Mass.) and Burgess Owens (R-Utah). The Senate version of the bill, also bipartisan, is sponsored by Sen. John Thune (R-S.D.), an influential member of Republican leadership. Buck and Cicilline are the bipartisan duo responsible for passing six antitrust bills out of the House Judiciary committee in June. Buck and Thune plan to work together on tech and antitrust issues going forward, a Republican aide told Axios. That could boost the chances of such bills passing muster with Senate Republicans in the future.

China

TikTok Tells US Lawmakers It Does Not Give Info To China (reuters.com) 33

During the company's first appearance at a U.S. congressional hearing, TikTok executive Michael Beckerman said it does not give information to the Chinese government and has sought to safeguard U.S. data. Reuters reports: Michael Beckerman, TikTok's head of public policy for the Americas, became the company's first executive to appear before Congress, testifying to a subcommittee of the Senate Commerce Committee. Republicans in particular pressed Beckerman on worries regarding TikTok's stewardship of data on the app's users. Senator Marsha Blackburn, the panel's top Republican, said she is concerned about TikTok's data collection, including audio and a user's location, and the potential for the Chinese government to gain access to the information. Blackburn questioned Beckerman on whether TikTok could resist giving data to China's government if material were to be demanded. "We do not share information with the Chinese government," Beckerman responded.

Under questioning by Republican Senator Ted Cruz, Beckerman said that TikTok has "no affiliation" with Beijing ByteDance Technology, a ByteDance entity at which the Chinese government took a stake and a board seat this year. Beckerman also testified that TikTok's U.S. user data is stored in the United States, with backups in Singapore. "We have a world-renowned U.S. based security team that handles access," Beckerman said. Republican Senator John Thune said TikTok is perhaps more driven by content algorithms than even Facebook, as the app is famous for quickly learning what users find interesting and offering them those types of videos. Beckerman said TikTok would be willing to provide the app's algorithm moderation policies in order for the Senate panel to have it reviewed by independent experts.

Republicans

Donald Trump To Launch Social Media Platform Called Truth Social (theguardian.com) 387

An anonymous reader quotes a report from The Guardian: Donald Trump has announced plans to launch a social media platform called TRUTH Social that will rolled be out early next year. The former president, who was banned from Facebook and Twitter earlier this year, says his goal is to rival the tech companies that have denied him the megaphone that was paramount to his rise. "I'm excited to soon begin sharing my thoughts on TRUTH social and to fight back against big tech," Trump said in a statement. Trump announced the news in a press release on Wednesday, saying the platform will be open to "invited users" for a beta launch in November, with plans to make it available to the broader public in the beginning of next year. Truth social will be a product of a new venture called the Trump Media & Technology Group which was created through a merger with Digital World Acquisition Corp. The group said it seeks to become a publicly listed company. Users can sign up to be put on a waiting list or pre-order the app via the App Store.
Facebook

Congress Will Investigate Claims That Instagram Harms Teens (theverge.com) 50

Two top lawmakers on the Senate Commerce Committee's panel over consumer protection said they were launching a probe into Facebook after The Wall Street Journal reported Tuesday that the company was aware of the harm Instagram can cause to teenage girls. The Verge reports: Sens. Richard Blumenthal (D-CT) and Marsha Blackburn (R-TN) announced their investigation into Facebook in a statement released Tuesday. The senators said that they were in touch with "a Facebook whistleblower" and would seek new documents and witness testimony from the company related to the reporting. "It is clear that Facebook is incapable of holding itself accountable. The Wall Street Journal's reporting reveals Facebook's leadership to be focused on a growth-at-all-costs mindset that valued profits over the health and lives of children and teens," the lawmakers said. "When given the opportunity to come clean to us about their knowledge of Instagram's impact on young users, Facebook provided evasive answers that were misleading and covered up clear evidence of significant harm."

House lawmakers also criticized Facebook over the Journal's new reporting, and Republicans even issued a new amendment to the $3.5 trillion budget reconciliation seeking to address tech's effects on teens. Rep. Gus Bilirakis (R-FL) introduced the measure that would direct the Federal Trade Commission to go after "unfair and deceptive acts or practices targeting our children's mental health and privacy by social media." The amendment failed. Rep. Ken Buck (R-CO), top Republican on the House Judiciary Committee's antitrust subcommittee, said in a tweet, "Big Tech has become the new Big Tobacco. Facebook is lying about how their product harms teens." A group of Democrats, including Sen. Ed Markey (D-MA), Rep. Kathy Castor (D-FL), and Lori Trahan (D-MA), penned a letter to Facebook Wednesday calling on the company to abandon its plans to launch an Instagram app for kids in light of the report.

The Internet

New Texas Law Tries Making it Illegal for Social Media Sites to Ban Users Over Political Viewpoints (bbc.com) 469

The U.S. state of Texas "has made it illegal for social media platforms to ban users 'based on their political viewpoints'," repots the BBC: Prominent Republican politicians have accused Facebook, Twitter and others of censoring conservative views... The social networks have all denied stifling conservative views. However, they do enforce terms of service which prohibit content such as incitement to violence and co-ordinated disinformation. "Social media websites have become our modern-day public square," said Texas governor Greg Abbott, after signing the bill into law on Thursday. "They are a place for healthy public debate where information should be able to flow freely...."

The new law states social media platforms with more than 50 million users cannot ban people based on their political viewpoints. Facebook, Twitter and Google's YouTube are within its scope...

The law is due to come in to force in December, but may face legal challenges.

"Critics say the law does not respect the constitutional right of private businesses to decide what sort of content is allowed on their platforms," the BBC adds, with the president of NetChoice trade association arguing that the bill "would put the Texas government in charge of content policies."
Hardware

The Strange Tale of the Freedom Phone (nytimes.com) 171

A 22-year-old Bitcoin millionaire wants Republicans to ditch their iPhones for a low-end handset that he hopes to turn into a political tool. From a report: It was a pitch tuned for a politically polarized audience. Erik Finman, a 22-year-old who called himself the world's youngest Bitcoin millionaire, posted a video on Twitter for a new kind of smartphone that he said would liberate Americans from their "Big Tech overlords." His splashy video, posted in July, had stirring music, American flags and references to former Presidents Abraham Lincoln and Donald J. Trump. Conservative pundits hawked Mr. Finman's Freedom Phone, and his video amassed 1.8 million views. Mr. Finman soon had thousands of orders for the $500 device. Then came the hard part: Building and delivering the phones. First, he received bad early reviews for a plan to simply put his software on a cheap Chinese phone. And then there was the unglamorous work of shipping phones, hiring customer-service agents, collecting sales taxes and dealing with regulators.

"I feel like practically I was prepared for anything," he said in a recent interview. "But I guess it's kind of like how you hope for world peace, in the sense you don't think it's going to happen." For even the most lavishly funded start-ups, it is hard to compete with tech industry giants that have a death grip on their markets and are valued in the trillions of dollars. Mr. Finman was part of a growing right-wing tech industry taking on the challenge nonetheless, relying more on their conservative customers' distaste for Silicon Valley than expertise or experience. [...] To make a smartphone, however, he had to rely on Google. The company's Android software already works with millions of apps, and Google makes a free, open version of the software for developers to modify. So Mr. Finman hired engineers to strip it of any sign of Google and load it with apps from conservative social networks and news outlets. Then he uploaded the software on phones he bought from China. To unveil the phone, he recorded an infomercial in which he cast the tech companies as enemies of the American way. "Imagine if Mark Zuckerberg banned MLK or Abraham Lincoln," he said in the video. "The course of history would have been altered forever."

[...] Thousands of people bought the $500 phone. Others, including some conservatives, quickly panned the animated pitch. Quickly, news outlets reported that the Freedom Phone was based on a low-cost handset from Umidigi, a Chinese manufacturer that had used chips shown to be vulnerable to hacks. Mr. Finman, who marketed the device as "the best phone in the world," was on the defensive. In an interview in July, Mr. Finman admitted that Umidigi made the phone but still said he was "100 percent" sure it was more secure than the latest iPhone. Apple has tens of thousands of engineers. Mr. Finman said he employed 15 people in Utah and Idaho.

United States

Cook, Pichai Join CEOs Urging Congress Pass Path to Citizenship (bloomberg.com) 172

More than 90 chief executive officers, including those at Apple, Amazon and Facebook on Thursday urged Congress to pass a law offering a citizenship path to young immigrants brought illegally to the U.S. as children. From a report: In a letter to President Joe Biden and congressional leaders, the executives said thousands of the immigrants -- known as Dreamers -- are "valued employees at our companies," but a federal judge's recent ruling against a program protecting them "throws into chaos" their ability to live and work legally in the U.S. "Securing a pathway to citizenship for Dreamers not only is the right thing to do, but is a huge economic benefit to the United States," the CEOs wrote in the letter. "The latest court ruling makes it all the more urgent that Congress take up and pass a legislative solution right away." The letter seeks to increase pressure on Republicans in Congress who are likely to oppose Democrats' efforts to pass the measure allowing for legal status for as many as 8 million undocumented immigrants.
Republicans

Republicans Call For Amazon To Testify On Pentagon Relationship (theverge.com) 40

Republicans are questioning Amazon's relationship with the Pentagon after newly released emails show that defense officials praised tech executives vying for a $10 billion contract during the Trump administration. The Verge reports: On Tuesday, The New York Times reported on previously unreleased emails that show Pentagon officials applauding Amazon executives while the company sought out a lucrative defense contract between 2017 and 2018. The Joint Enterprise Defense Infrastructure project, or JEDI, set out to find a tech company that would move the Defense Department's computer networks over to the cloud. In one instance, the Times reports that former Trump Defense Secretary Jim Mattis traveled to Silicon Valley to meet with executives from companies like Apple, Amazon, and Google in 2017. During this trip, Mattis was made "uncomfortable" while Amazon representatives aggressively pitched their cloud-computing products to him. A former Mattis adviser, Sally Donnelly, also referred to Bezos as "the genius of our age." Donnelly, who later sent Mattis a list of reasons he should meet with Bezos, had previously worked at a consulting firm where her clients included Amazon.

"This is exactly what we were concerned about, and it contradicts Amazon's insistence that there is nothing to see here," Rep. Ken Buck (R-CO) and Sen. Mike Lee (R-UT) said in a joint statement Tuesday. "It's become more and more clear that Amazon used its market power and paid-for connections to circumvent ethical boundaries and avoid competition in an attempt to win this contract." Microsoft won the multibillion-dollar contract in 2019 after a closely watched bidding fight between Amazon. But earlier this month, the Defense Department announced that it would cancel its contract amid an ongoing legal battle alleging that Trump wrongfully interfered in the bidding process. In canceling the prior contract, Amazon is given a second chance to win the $10 billion deal. But Republicans in Washington are calling for the company to testify regarding its Pentagon relationships in light of the newly released emails.

Communications

FCC Speed Standard that Ajit Pai Never Updated is Too Slow, GAO Report Says (arstechnica.com) 66

The Federal Communications Commission broadband standard that was implemented under then-Chairman Tom Wheeler in 2015 and never updated by Ajit Pai is now "likely too slow," according to a government report issued last week. From a report: The Wheeler-led FCC in January 2015 updated the agency's broadband standard from 4Mbps downstream and 1Mbps upstream to 25Mbps downloads/3Mbps uploads. The increase was opposed by broadband-industry lobbyists and Republicans, including Ajit Pai, who was then a commissioner and later served as FCC chairman throughout the Trump administration. Pai never updated the 25Mbps/3Mbps standard in his four years as chair. In his last annual broadband-deployment report issued in January 2021, Pai concluded that "fixed services with speeds of 25/3Mbps continue to meet the statutory definition of advanced telecommunications capability."
Republicans

Hackers Scrape 90,000 GETTR User Emails, Surprising No One (vice.com) 75

Just days after its launch, hackers have already found a way to take advantage of GETTR's buggy API to get the username, email address, and location of thousands of users. Motherboard reports: Hackers were able to scrape the email addresses and other data of more than 90,000 GETTR users. On Tuesday, a user of a notorious hacking forum posted a database that they claimed was a scrape of all users of GETTR, the new social media platform launched last week by Trump's former spokesman Jason Miller, who pitched it as an alternative to "cancel culture." The data seen by Motherboard includes email addresses, usernames, status, and location. One of the people whose email is in the database confirmed to Motherboard that they are indeed registered to GETTR. Motherboard also verified the database by attempting to create an account with three email addresses that appear in the database. When doing that, the site displayed the message: "The email is taken," suggesting it's already registered. It's unclear if the database contains the usernames and email addresses of all users on the site. Alon Gal, the co-founder and CTO of cybersecurity firm Hudson Rock, found the forum post with the database. "When threat actors are able to extract sensitive information due to neglectful API implementations, the consequence is equivalent to a data breach and should be handled accordingly by the firm and to be examined by regulators," he told Motherboard in an online chat.

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