Facebook

Meta Faces a $100,000 Daily Fine If It Doesn't Fix Privacy Issues In Norway (engadget.com) 26

Norway's data protection regulator has accused Meta of violating user privacy by tracking their activities, threatening to fine the company $100,000 per day if it fails to take corrective action. "It is so clear that this is illegal that we need to intervene now and immediately," said Tobias Judin, head of Norway's privacy commission, Datatilsynet. Engadget reports: The move follows a European court ruling banning Meta from harvesting user data like location, behavior and more for advertising. Datatilsynet has referred its actions to Europe's Data Protection Board, which could widen the fine across Europe. The aim is to put "additional pressure" on Meta, Judin said. (Norway is a member of the European single market, but not technically an EU member.)

Meta told Reuters that it's reviewing Datatilsynet's decision and that the decision wouldn't immediately impact its services. "We continue to constructively engage with the Irish DPC, our lead regulator in the EU, regarding our compliance with its decision," a spokesperson said. "The debate around legal bases has been ongoing for some time and businesses continue to face a lack of regulatory certainty in this area."

Privacy

Typo Leaks Millions of US Military Emails To Mali Web Operator (ft.com) 52

Millions of US military emails have been misdirected to Mali through a "typo leak" that has exposed highly sensitive information, including diplomatic documents, tax returns, passwords and the travel details of top officers. Financial Times: Despite repeated warnings over a decade, a steady flow of email traffic continues to the .ML domain, the country identifier for Mali, as a result of people mistyping .MIL, the suffix to all US military email addresses. The problem was first identified almost a decade ago by Johannes Zuurbier, a Dutch internet entrepreneur who has a contract to manage Mali's country domain.

Zuurbier has been collecting misdirected emails since January in an effort to persuade the US to take the issue seriously. He holds close to 117,000 misdirected messages -- almost 1,000 arrived on Wednesday alone. In a letter he sent to the US in early July, Zuurbier wrote: "This risk is real and could be exploited by adversaries of the US."

Crime

Teenagers Have Bought 'Ghost Guns' Online, Sometimes with Deadly Consequences (msn.com) 462

The Washington Post begins a recent article with the story of an 18-year-old drug dealer with mental health issues named Zachary Burkard, who shot two unarmed 17-year-olds with a "ghost gun" he built from a kit bought online.

The father of one of those 17-year-olds thinks "They've just made it entirely too easy to get these guns... A child can buy one. There's no background checks. You don't even need a bank account. You can go to 7-Eleven and get a debit card, put money on it and buy a gun." The families of the two teens, with the help of the anti-gun-violence group Everytown for Gun Safety, are now suing the distributor of the parts Burkard used to make his ghost gun, 80P Builder of Florida, and the manufacturer, Polymer80 of Nevada, for gross negligence in providing a teenager with a weapon when he was not legally able to buy a handgun from a federally licensed dealer. The case, those who track the weapons say, demonstrates a frightening phenomenon... Teenagers have discovered the ease with which they can acquire the parts for a ghost gun, and they have been buying, building and shooting the homemade guns with alarming frequency. Everytown for Gun Safety compiled a list of more than 50 incidents involving teens and ghost guns since 2019. Among them:

- In Brooklyn Park, Minn., police arrested two teens with ghost guns in December after authorities said one of them attempted to shoot someone outside their car but instead killed their friend inside it.
- In New Rochelle, N.Y., a 16-year-old created a "ghost gun factory" in his bedroom last year, police said, before killing another 16-year-old...

The Bureau of Alcohol, Tobacco and Firearms (ATF) estimated that Polymer80 was responsible for more than 88 percent of the ghost guns recovered by police between 2017 and 2021, though there are nearly 100 manufacturers selling parts, or full kits, which can be made into unserialized guns, a list compiled by Everytown shows. Teens are hardly the only users. Last year, police departments seized at least 25,785 ghost guns nationwide, the Justice Department said recently, and those are just the weapons submitted by police to ATF for tracing, even though they don't have serial numbers and largely cannot be traced. In 2021, the number of guns recovered was 19,344, meaning seizures rose 33 percent the following year.

ATF has linked ghost guns to 692 homicides and nonfatal shootings through 2021, including mass killings and school shootings...

[This May] in Baltimore, authorities arrested three 14-year-olds after armed robberies and an armed carjacking. Police said one of them had a ghost gun. And in Valdosta, Ga., authorities said, a 16-year-old bought a ghost gun kit online in 2021 and assembled her own Glock-style pistol. One day while some friends were at her house, the teen accidentally shot a 14-year-old in the head, leaving him partially paralyzed, with severe brain damage and permanent physical and cognitive issues, his family's lawyer Melvin Hewitt said.

While some states have passed regulations, last year America's national firearm-regulating agency also declared parts of ghost guns to be firearms, according to the article, in an attempt to close a commonly-cited loophole. The parts makers challenged the new rule in court, lost twice, then won in a conservative federal court in Texas. The U.S. Justice Department may now appeal that decision to the higher Fifth Circuit court, and if it loses there "could appeal to the Supreme Court." Dudley Brown, the president of the National Association for Gun Rights, said he is against all regulation of privately made firearms, calling the practice of building weapons a "long and storied tradition in America."
United States

Bank of America Fined $250M for 'Systematic' Overcharging, Opening Unwanted Credit Cards (msn.com) 80

Bank of America "will pay more than $250 million in refunds and fines," reports the Washington Post, "after federal regulators found the company systematically overcharged customers, withheld promised bonuses and opened accounts without customer approval." The Consumer Financial Protection Bureau [or CFPB] found the bank made "substantial additional revenue" for years by repeatedly charging customers $35 overdraft fees on the same transaction. The bank also denied cash and points bonuses it had pledged to tens of thousands of credit card customers. And starting in 2012, Bank of America employees enrolled customers in credit card accounts without their approval, obtaining credit reports without permission to complete the applications, the bureau said.
The bureau's director emphasized that "These practices are illegal and undermine customer trust," adding that America's CFPB "will be putting an end to these practices across the banking system."

The Post points out that Bank of America will now pay more than $100 million in restitution to customers, a $90 million fine to the CFPB and another $60 million fine to the Office of the Comptroller of the Currency. "Bank of America already has refunded customers denied credit card rewards and bonuses, the consumer bureau said. It will be repaying those it overcharged on fees by depositing funds into their account or sending a check..."

But how widespread is hte problem? Hundreds of thousands of customers were harmed over several years, the consumer agency said. Bank of America is the second largest U.S. bank, with 68 million residential and small business customers... In extra fees alone, the bank charged customers "tens of millions of dollars" between March 2020 and November 2021, federal regulators found. The regulator said Bank of America in that period hit customers with a $35 fee if they had insufficient funds to cover a charge. If the customer still lacked funds when the merchant resubmitted the transaction, the company assessed another $35 penalty... And bank employees opened credit card accounts for customers without their knowledge in a bid to meet individual sales goals, the CFPB said...

[T]he practice has given the banking industry a major black eye in recent years. Wells Fargo reached a $3.7 billion settlement with federal regulators in December over a range of violations, including opening millions of fake accounts. The CFPB fined U.S. Bank $37.5 million last summer over its own sham accounts scandal.

This is not Bank of America's first brush with federal regulators over its treatment of customers. The CFPB ordered the company to pay $727 million in 2014 over illegal credit card practices. The company paid another $225 million last year in fines over mishandling state unemployment benefits during the pandemic and a separate $10 million civil penalty over unlawful garnishments.

"The company did not admit or deny wrongdoing in its settlement with the agency..." notes the article. But a statement from the chairman of the U.S. Senate Banking Committee said Bank of America "has clearly broken the law in yet another case of Wall Street banks taking Americans' money to pad their already-massive profits...

"This kind of abuse is why we will continue to hold the big banks accountable, and it's why we need the Consumer Financial Protection Bureau — so consumers can keep their hard-earned money."
Privacy

Massachusetts Considers Ban on Sales of Cellphone Location Data (wbur.org) 16

"While some states have taken steps to protect cell phone information, Massachusetts could become the first state to outright ban the sale of location data from cell phones," reports WBUR: Data brokers are able to buy and sell cell phone location data to anyone with a credit card without many restrictions. "There's very little in terms of law that prevents companies from doing this, as long as they at least include somewhere in their privacy policies that this is something that they're doing," said Andrew Sellars, a Boston University law professor and director of the Technology Law Clinic. Sellars said that there have been recent updates to operating systems that can alert users when their data is being tracked or obscure the specificity of the users' location, but overall there's little protection for buying and selling location data.

Can law enforcement agencies buy cell phone data? Yes. Sellars says that under the current law, law enforcement can circumvent obtaining a warrant to get data by buying data directly from brokers. "The Electronic Privacy Information Center has done some studies on this recently and shown that there's been a growing market of consumer location data that's handled by data brokers being bought by law enforcement at all different levels: federal, state, and local law enforcement," said Sellars...

The bill provides a defined scope of purpose in which companies can collect and use a customer's location data. Under the legislation, companies would only be allowed to use location data to provide a product or service that a consumer wants. "For example, if you are ordering food on a food app and it's using your location to know where to deliver the food, that would be a permissible use," said Sellars. "But aside from that, you are essentially prohibited from doing anything else with the data."

Earlier this week WBUR noted that the Massachusetts bill is "pending" before a state-government committee, "which has not scheduled a hearing on it."
AI

ChatGPT-Powered Bing Sued for Libel Over Its AI-Induced Hallucinations (reason.com) 21

Long-time Slashdot reader schwit1 shared this report from Reason.com: When people search for Jeffery Battle in Bing, they get the following (at least sometimes; this is the output of a search that I ran Tuesday):

Jeffrey Battle, also known as The Aerospace Professor, is the President and CEO of Battle Enterprises, LLC, and its subsidiary The Aerospace Professor Company... Battle was sentenced to eighteen years in prison after pleading guilty to seditious conspiracy and levying war against the United States...

But it turns out that this combines facts about two separate people with similar names: (1) Jeffery Battle, who is indeed apparently a veteran, businessman, and adjunct professor, and (2) Jeffrey Leon Battle, who was convicted of trying to join the Taliban shortly after 9/11. The two have nothing in common other than their similar names. The Aerospace Professor did not plead guilty to seditious conspiracy....

[T]o my knowledge, this connection was entirely made up out of whole cloth by Bing's summarization feature (which is apparently based on ChatGPT); I know of no other site that actually makes any such connection (which I stress again is an entirely factually unfounded connection).

Battle is now suing Microsoft for libel over this...

United States

US Announces $39 Billion in New Student Debt Relief (cnn.com) 194

"The Biden administration announced Friday that 804,000 borrowers will have their student debt wiped away, totaling $39 billion worth of debt, in the coming weeks..." reports CNN.

That's an average of $48,507 per borrower, each of whom has "been paying down their debts for 20 years or more and should qualify for relief," according to a statement from the administration Friday's action addresses "historical failures" and administrative errors that miscounted qualifying payments made by borrowers, according to the Department of Education...

Since Biden took office, his administration has approved $116.6 billion in student debt relief for more than 3.4 million Americans, according to the Department of Education... Despite the Supreme Court last month striking down Biden's loan forgiveness program to provide millions of borrowers up to $20,000 in one-time federal student debt relief, his administration has continued to pursue other avenues to cancel debt and make it easier for borrowers to receive loan forgiveness...

While not part of today's actions, the Department of Education is also moving ahead with a separate and significant change to the federal student loan system that will enable Americans to enroll in a new income-driven repayment plan... Once the plan is fully implemented, people will see their monthly bills cut in half and remaining debt canceled after making at least 10 years of payments.

Last month the administration described student debt relief as "good for the economy... [G]ood for the country."
NASA

Congress Prepares To Continue Throwing Money At NASA's Space Launch System (techcrunch.com) 59

Congress will pour billions more dollars into the Space Launch System (SLS) rocket and its associated architecture, even as NASA science missions remain vulnerable to cuts. TechCrunch reports: Both the House and Senate Appropriations Committees recommend earmarking around $25 billion for NASA for the next fiscal year (FY 24), which is in line with the amount of funding the agency received this year (FY 23). However, both branches of Congress recommend increasing the portion of that funding that would go toward the Artemis program and its transportation cornerstones, SLS and the Orion crew capsule. Those programs would receive $7.9 billion per the House bill or $7.74 billion per the Senate bill, an increase of about $440 million from FY 2023 levels. Meanwhile, science missions are looking at cuts of around that same amount, with the House recommending a budget of $7.38 billion versus $7.79 billion in FY 2023.

Overall, NASA received $25.4 billion in funding for FY '23, with $2.6 billion earmarked toward SLS, $1.34 billion to Orion, and $1.48 to the Human Landing System contract programs. Science programs -- which include the Mars Sample Return mission and Earth science missions -- received $7.8 billion overall.

Government

Federal HQ Buildings Only Used At 25% of Capacity (techtarget.com) 52

dcblogs writes: According to federal officials at a U.S. House hearing Thursday, the monumental federal buildings in Washington are largely empty, with some agencies using 25% or less of their headquarters' building capacity on average. The government owns some 511 million of square feet of office space, and capacity problems open the door to the possibility of conversions to housing or commercial uses. Commercial reuse has happened before. In 2013, the General Services Administration leased the Old Post Office Building at 1100 Pennsylvania Ave., to the Trump organization for a hotel.

"The taxpayer is quite literally paying to keep the lights on even when no one is home," said Rep. Scott Perry (R-Pa.), who chairs the infrastructure subcommittee meeting. The blame for the low utilization has several causes: a shift to hybrid work, out-of-date buildings that waste space, and designs before technology reduced the need for certain types of workers. The Republicans want federal workers to return to offices and reduce telecommuting to at least pre-pandemic levels. In February, the House passed H.R. 139, the Stopping Home Office Work's Unproductive Problems Act of 2023 -- or the Show Up Act -- requiring agencies to revert to 2019 pre-pandemic telework policies. A companion bill, S. 1565, is pending in the Senate. It has six Republican sponsors but no Democrats.

DRM

Internet Archive Targets Book DRM Removal Tool With DMCA Takedown (torrentfreak.com) 20

The Internet Archive has taken the rather unusual step of sending a DMCA notice to protect the copyrights of book publishers and authors. The non-profit organization asked GitHub to remove a tool that can strip DRM from books in its library. The protective move is likely motivated by the ongoing legal troubles between the Archive and book publishers. TorrentFreak reports: The Internet Archive sent a takedown request to GitHub, requesting the developer platform to remove a tool that circumvents industry-standard technical protection mechanisms for digital libraries. This "DeGouRou" software effectively allows patrons to save DRM-free copies of the books they borrow. "This DMCA complaint is about a tool made available on github which purports to circumvent technical protections in violation of the copyright act section 1201," the notice reads. "I am reporting a Git which provides a tool specifically used to circumvent industry standard library TPMs which are used by Internet Archive, and other libraries, to permit patrons to borrow an encrypted book, read the encrypted book, and return an encrypted book."

Interestingly, an IA representative states that they are "not authorized by the copyright owners" to submit this takedown notice. Instead, IA is acting on its duty to prevent the unauthorized downloading of copyright-protected books. It's quite unusual to see a party sending takedown notices without permission from the actual rightsholders. However, given the copyright liabilities IA faces, it makes sense that the organization is doing what it can to prevent more legal trouble. Permission or not, GitHub honored the takedown request. It removed all the DeGourou repositories that were flagged and took the code offline. [...] After GitHub removed the code, it soon popped up elsewhere.

United States

Ancient Lead-Covered Telephone Cables Have US Lawmakers Demanding Action (arstechnica.com) 65

An anonymous reader quotes a report from Ars Technica: Newly raised concerns about lead-covered telephone cables installed across the US many decades ago are putting pressure on companies like AT&T and Verizon to identify the locations of all the cables and account for any health problems potentially caused by the toxic metal. US Sen. Edward Markey (D-Mass.) wrote a letter to the USTelecom industry trade group this week after a Wall Street Journal investigative report titled, "America Is Wrapped in Miles of Toxic Lead Cables." The WSJ said it found evidence of more than 2,000 lead-covered cables and that there "are likely far more throughout the country."

WSJ reporters had researchers collect samples as part of their investigation. They "found that where lead contamination was present, the amount measured in the soil was highest directly under or next to the cables, and dropped within a few feet -- a sign the lead was coming from the cable," the article said. Markey wrote to USTelecom, "According to the Wall Street Journal's investigation, 'AT&T, Verizon and other telecom giants have left behind a sprawling network of cables covered in toxic lead that stretches across the US, under the water, in the soil and on poles overhead... As the lead degrades, it is ending up in places where Americans live, work and play.'"

Markey wants answers to a series of questions by July 25: "Do the companies know the locations and mileage of lead-sheathed cables that they own or for which they are responsible -- whether aerial, underwater, or underground? Are there maps of the locations and installations? If not, what plans do the companies have to identify the cables? Why have the companies that knew about the cables -- and the potential exposure risks they pose -- failed to monitor them or act?" Markey also asked what plans telcos have to address environmental and public health problems that could arise from lead cables. He asked the companies to commit to "testing for soil, water, and other contamination caused by the cables," to remediate any contamination, and warn communities of the potential hazards. Markey also asked USTelecom if the phone companies will guarantee "medical treatment and compensation to anyone harmed by lead poisoning caused by the cables."
"There is no safe level of lead exposure -- none -- which is why I'm so disturbed by these reports of lead cable lines throughout the country," added US Rep. Frank Pallone Jr. (D-NJ). "It is imperative that these cables be properly scrutinized and addressed."

Another Congressman, Rep. Patrick Ryan (D-NY), said he is considering legislation on remediating contamination from the cables and that telecom companies should "do the right thing and clean up their mess." The Wall Street Journal said its testing in a playground in Ryan's district "registered high levels of lead underneath an aerial cable running along the perimeter of the park."
Sci-Fi

Bipartisan Measure Aims to Force Release of UFO Records (nytimes.com) 67

Senate Majority Leader Chuck Schumer is proposing legislation to create a commission with the power to declassify government documents related to UFOs and extraterrestrial matters. The New York Times reports: The measure offers the possibility of pushing back against the conspiracy theories that surround discussions of U.F.O.s and fears that the government is hiding critical information from the public. The legislation, which Mr. Schumer will introduce as an amendment to the annual defense policy bill, has bipartisan support, including that of Senator Mike Rounds, Republican of South Dakota, and Senator Marco Rubio, Republican of Florida, who has championed legislation that has forced the government to release a series of reports on unidentified phenomena. Support in the House is also likely. On Wednesday, the chamber included a narrower measure (PDF) in its version of the annual defense bill that would push the Pentagon to release documents about unidentified aerial phenomena.

The Senate measure sets a 300-day deadline for government agencies to organize their records on unidentified phenomena and provide them to the review board. President Biden would appoint the nine-person review board, subject to Senate approval. Senate staff members say the intent is to select a group of people who would push for disclosure while protecting sensitive intelligence collection methods. [...] Under Mr. Schumer's legislation, the president could decide to delay material the commission has chosen to release based on national security concerns. But the measure would establish a timetable to release documents and codify the presumption that the material should be public. "You now will have a process through which we will declassify this material," said Allison Biasotti, a spokeswoman for Mr. Schumer.

Privacy

SEO Expert Hired and Fired By Ashley Madison Turned on Company, Promising Revenge (krebsonsecurity.com) 28

In July 2015, the marital infidelity website AshleyMadison.com was hacked by a group called the Impact Team, threatening to release data on all 37 million users unless the site shut down. In an article published earlier today, security researcher Brian Krebs explores the possible involvement of a former employee and self-describe expert in search engine optimization (SEO), William Brewster Harrison, who had a history of harassment towards then-CEO Noel Biderman and may have had the technical skills to carry out the hack. However, Harrison committed suicide in 2014, raising doubts about his role in the breach. Here's an excerpt from the report: [...] Does Harrison's untimely death rule him out as a suspect, as his stepmom suggested? This remains an open question. In a parting email to Biderman in late 2012, Harrison signed his real name and said he was leaving, but not going away. "So good luck, I'm sure we'll talk again soon, but for now, I've got better things in the oven," Harrison wrote. "Just remember I outsmarted you last time and I will outsmart you and out maneuver you this time too, by keeping myself far far away from the action and just enjoying the sideline view, cheering for the opposition." Nothing in the leaked Biderman emails suggests that Ashley Madison did much to revamp the security of its computer systems in the wake of Harrison's departure and subsequent campaign of harassment -- apart from removing an administrator account of his a year after he'd already left the company.

KrebsOnSecurity found nothing in Harrison's extensive domain history suggesting he had any real malicious hacking skills. But given the clientele that typically employed his skills -- the adult entertainment industry -- it seems likely Harrison was at least conversant in the dark arts of "Black SEO," which involves using underhanded or else downright illegal methods to game search engine results. Armed with such experience, it would not have been difficult for Harrison to have worked out a way to maintain access to working administrator accounts at Ashley Madison. If that in fact did happen, it would have been trivial for him to sell or give those credentials to someone else. Or to something else. Like Nazi groups. As KrebsOnSecurity reported last year, in the six months leading up to the July 2015 hack, Ashley Madison and Biderman became a frequent subject of derision across multiple neo-Nazi websites.

Some readers have suggested that the data leaked by the Impact Team could have originally been stolen by Harrison. But that timeline does not add up given what we know about the hack. For one thing, the financial transaction records leaked from Ashley Madison show charges up until mid-2015. Also, the final message in the archive of Biderman's stolen emails was dated July 7, 2015 -- almost two weeks before the Impact Team would announce their hack. Whoever hacked Ashley Madison clearly wanted to disrupt the company as a business, and disgrace its CEO as the endgame. The Impact Team's intrusion struck just as Ashley Madison's parent was preparing go public with an initial public offering (IPO) for investors. Also, the hackers stated that while they stole all employee emails, they were only interested in leaking Biderman's. Also, the Impact Team had to know that ALM would never comply with their demands to dismantle Ashley Madison and Established Men. In 2014, ALM reported revenues of $115 million. There was little chance the company was going to shut down some of its biggest money machines. Hence, it appears the Impact Team's goal all along was to create prodigious amounts of drama and tension by announcing the hack of a major cheating website, and then let that drama play out over the next few months as millions of exposed Ashley Madison users freaked out and became the targets of extortion attacks and public shaming.

After the Impact Team released Biderman's email archives, several media outlets pounced on salacious exchanges in those messages as supposed proof he had carried on multiple affairs. Biderman resigned as CEO of Ashley Madison on Aug. 28, 2015. Complicating things further, it appears more than one malicious party may have gained access to Ashley's Madison's network in 2015 or possibly earlier. Cyber intelligence firm Intel 471 recorded a series of posts by a user with the handle "Brutium" on the Russian-language cybercrime forum Antichat between 2014 and 2016. Brutium routinely advertised the sale of large, hacked databases, and on Jan. 24, 2015, this user posted a thread offering to sell data on 32 million Ashley Madison users. However, there is no indication whether anyone purchased the information. Brutium's profile has since been removed from the Antichat forum.
Note: This is Part II of a story published last week on reporting that went into a new Hulu documentary series on the 2015 Ashley Madison hack.
The Courts

Texas' TikTok Ban Hit With First Amendment Lawsuit (cnn.com) 37

Texas's ban on TikTok at state institutions violates the First Amendment, claims a lawsuit filed Thursday by a group of academics and civil society researchers. CNN reports: The Knight First Amendment Institute at Columbia University filed the lawsuit on behalf of the Coalition for Independent Technology Research, which works to study the impact of technology on society. The lawsuit specifically challenges Texas' TikTok ban in relation to public universities, saying it compromises academic freedom and impedes vital research. "The ban is not just ineffective but counterproductive. It's impeding researchers and scholars from studying the very things that Texas says it's concerned about -- like data-collection and disinformation," Jameel Jaffer, executive director of the Institute, told CNN.

The lawsuit cites the example of a University of North Texas researcher who studies young people's use of social media, who has been forced to abandon research projects that rely on university computers and to remove material about TikTok from her courses. The Knight Institute lawsuit notes that Texas has not imposed a ban on other online platforms that collect similar user data, such as Meta and Google. It further argues that a ban doesn't "meaningfully" constrain China's ability to collect sensitive data about Americans, because this data is widely available from other data brokers.

"It's entirely legitimate for government officials to be concerned about social media platforms' data-collection practices, but Imposing broad bans on Americans' access to the platforms isn't a reasonable, effective, or constitutional response to those concerns," Jaffer told CNN. "Like it or not, TikTok is an immensely popular communications platform, and its policies and practices are influencing culture and politics around the world," said Dave Karpf, a Coalition for Independent Technology Research board member and associate professor in the George Washington University School of Media and Public Affairs. "It's important that scholars and researchers be able to study the platform and illuminate the risks associated with it. Ironically, Texas's misguided ban is impeding our members from studying the very risks that Texas says it wants to address."

The Courts

FTC Asks Court To Temporarily Halt Microsoft's Acquisition of Activision (reuters.com) 10

The FTC has asked a federal court to temporarily halt Microsoft's $69 billion acquisition of "Call of Duty" maker Activision Blizzard. Microsoft won its fight against the FTC on Tuesday, after a California judge said the agency had failed to show the deal would be illegal under antitrust law. The FTC appealed that loss yesterday, and Microsoft said it would fight that appeal. Reuters reports: In its motion, the FTC asked for an order that would prevent the deal from closing until after the 9th U.S. Circuit Court of Appeals has ruled on a separate stay request filed with that court. Any outstanding regulatory hurdle makes it more likely the agreement between Microsoft and Activision will expire on July 18 without the deal having been completed. After July 18, either company will be free to walk away from the deal unless they negotiate an extension.

In its motion for the stay to Judge Jacqueline Scott Corley, the FTC argued her denial of a preliminary injunction to halt the deal "raises serious, substantial issues for the Court of Appeals to resolve." Specifically, the FTC said she had applied the wrong standard in considering the agency's request for a preliminary injunction. "Granting an injunction pending appeal is warranted because the FTC is likely to succeed on appeal," the agency wrote.

The Courts

Bungie Wins Landmark Lawsuit Against Player Who Harassed Destiny Staff (polygon.com) 19

An anonymous reader quotes a report from Polygon: Bungie has won almost $500,000 in damages from a Destiny 2 player who harassed one of its community managers and his wife with abusive, racist, and distressing calls and messages, and sent an unsolicited pizza order to their home in a manner designed to intimidate and frighten the couple. According to members of Bungie's legal team, the judgment from a Washington state court sets important precedents that will empower employers to go after anyone who harasses their employees online, and strengthen the enforcement of laws against online trolling and harassment. "This one is special," Bungie's attorney Dylan Schmeyer tweeted.

As laid out in the court's judgment, the defendant, Jesse James Comer, was "incensed" when the community manager -- whom both Bungie and the court declined to name, to protect them from further harassment -- spotlighted some fan art by a Black community member. Using anonymous phone numbers, Comer left a string of "hideous, bigoted" voicemails on the community manager's personal phone, some asking that Bungie create options in Destiny 2 "in which only persons of color would be killed," before proceeding to threaten the community manager's wife with more racist voicemails and texts. Then he ordered a pizza to be delivered to their home, leaving instructions for the driver to knock at least five times, loudly, to make the intrusion as frightening as possible.

The court ruled that Comer was liable to pay over $489,000 in damages, fees, and expenses it had accrued in protecting and supporting its employees, investigating Comer, and prosecuting the case against him. As laid out in a Twitter thread by Kathryn Tewson, a crusading paralegal who worked on the case, the judgment is significant because it recognizes that patterns of harassment escalate from online trolling to real-world violence; establishes that harassment of an employee for doing their job damages the employer as well, which can then use its resources to go after the culprit; and recognized a new tort -- a legal term for a form of injury or harm for which courts can impose liability -- around cyber and telephone harassment. While it may seem odd to celebrate a judgment that awards a company -- rather than an individual -- with damages for personal harassment, the significance of the case is that its legal precedent empowers and motivates employers to use their resources to protect employees who face harassment as part of their jobs. Bungie and its lawyers have broken important new ground that could improve the level of protection for workers in the game industry and beyond.

The Courts

Ripple's Open Market Sales of XRP Cryptocurrency Aren't Securities, Court Rules in Landmark Decision (fortune.com) 32

It was the court case the entire crypto industry was waiting for -- the showdown between the Securities and Exchange Commission and Ripple, an early digital assets firm behind the popular XRP token. From a report: The SEC alleged that sales of XRP constituted offering unregistered securities, while Ripple defended its $25 billion market, chiding the SEC's lack of clear guidance. On Thursday, a federal judge agreed partly in favor of both parties, with Ripple -- and the broader crypto industry -- appearing the early victor. The existential question for the U.S. crypto sector has been whether the thousands of tokens, from Bitcoin and Ether to Dogecoin and Pepecoin, are securities -- a financial term for an investment contract, which would require registration with the SEC. Crypto firms have argued that working with the agency is impossible under the current rules, while the SEC has accused nearly every token, with the clear exception of Bitcoin, as operating illegally.

Ripple became an important trial balloon for the debate. In 2020, the SEC charged the company -- founded in 2012 with the promise of disrupting the global payments network through its proprietary token, XRP -- and two of its executives with raising over $1.3 billion through an unregistered digital asset securities offering. Unlike other subjects of SEC lawsuits, Ripple challenged the case, which has been litigated for the past three years in the Southern District of New York. The proceedings have enraptured the crypto industry, especially as the SEC has aggressively pursued other exchanges and projects for allegedly offering unregistered securities. A decision that found XRP was not a security could buoy other firms and weaken the SEC's torrent of lawsuits against the industry, while a total victory for the SEC would have proved disastrous and likely climbed its way to the Supreme Court.

Crime

Alex Mashinsky, Ex-CEO of Bankrupt Celsius, Arrested (bloomberg.com) 21

The former chief executive officer of bankrupt crypto lender Celsius Network was arrested following a probe into the company's collapse, Bloomberg reported Thursday. From the report: The arrest took place Thursday morning, according to the person, who asked not to be identified because the criminal case isn't public. The Securities and Exchange Commission also filed a lawsuit against Mashinsky and the company Thursday, according to court records. Celsius was one of several high-profile crypto firms that imploded last year. The company gained popularity paying high interest rates on digital-asset deposits. But following the collapse of the TerraUSD stablecoin and a downturn in the digital-asset markets the company was left with a giant hole in its balance sheet and unable to meet an influx of customer withdrawals.
Democrats

Democrats Call On DOJ To Investigate Tax Sites For Sharing Financial Information With Meta (theverge.com) 29

Democratic senators, including Elizabeth Warren and Bernie Sanders, are calling (PDF) for an investigation into popular online tax filing companies, accusing them of sharing sensitive taxpayer data with Meta and Google without user consent. The Verge reports: On Tuesday, Sens. Elizabeth Warren (D-MA), Bernie Sanders (I-VT), and others asked the Justice Department, Federal Trade Commission, Treasury Department, and the IRS to investigate whether TaxSlayer, H&R Block, and TaxAct violated taxpayer privacy laws by sharing sensitive user information with the two tech firms. Senators also released (PDF) their own report Wednesday detailing the accusations, first raised by The Markup last November.

The report alleges that for years, tax preparation companies infused their products with Meta and Google tracking pixels that revealed identifying information -- like a user's full name, address, and date of birth. The senators also suggest that some of the information provided, like the forms a user accessed, could be used to show "whether taxpayers were eligible for certain deductions or exemptions." The senators claim that the companies did not receive user consent to share this information, which could violate laws banning tax preparers from sharing tax return information with third parties, especially since much of this data could be used for advertising purposes.

The Courts

Reddit Beats Lawsuit By WallStreetBets Founder (reuters.com) 29

A U.S. judge has dismissed a lawsuit in which the founder of WallStreetBets, which helped ignite investors' fascination with "meme" stocks, accused Reddit of wrongly banning him from moderating the community and usurping his trademark rights. From a report: Jaime Rogozinski, who founded WallStreetBets in 2012, said Reddit ousted him in April 2020 as a pretext to keep him from controlling a "a famous brand that helped Reddit rise to a $10 billion valuation" by late 2021. Rogozinski had applied to trademark "WallStreetBets" in March 2020, when the community reached 1 million subscribers. It now has 14 million.

In a 15-page decision, U.S. District Judge Maxine Chesney in San Francisco rejected Rogozinski's claim that he owns the WallStreetBets trademark because the market associated it with him and he made the brand famous. She also dismissed Rogozinski's state law claims related to his ouster, saying either that they were preempted by a federal law that provides "broad immunity" to websites publishing mainly outside content, or that he lacked standing to sue.

Slashdot Top Deals