Businesses

Trump Signs Into Law US Government Ban on Kaspersky Lab Software (reuters.com) 52

President Donald Trump signed into law on Tuesday legislation that bans the use of Kaspersky Lab within the U.S. government, capping a months-long effort to purge the Moscow-based antivirus firm from federal agencies amid concerns it was vulnerable to Kremlin influence. From a report: The ban, included as part of a broader defense policy spending bill that Trump signed, reinforces a directive issued by the Trump administration in September that civilian agencies remove Kaspersky Lab software within 90 days. The law applies to both civilian and military networks. "The case against Kaspersky is well-documented and deeply concerning. This law is long overdue," said Democratic Senator Jeanne Shaheen, who led calls in Congress to scrub the software from government computers. She added that the company's software represented a "grave risk" to U.S. national security.
Businesses

Former Uber Employees Have Gone Into Debt To Hang Onto Shares They Can't Sell (qz.com) 42

An anonymous reader quotes a report from Quartz: Uber employees are lining up to sell their stock to Japanese technology giant SoftBank, which will buy up to 17% of outstanding shares for $33 each. The price represents a 30% discount to Uber's last valuation, of nearly $70 billion, but for current and former employees, the SoftBank tender offer is a rare chance to convert paper wealth into actual cash. To qualify for the tender offer, participants must have at least 10,000 Uber shares and be "accredited investors," an SEC designation (pdf) for wealthy individuals. Current Uber employees can't sell more than half of their stake; there are no restrictions on former employees. The deal is on the table until Dec. 28, and could fall through if there aren't enough shares on offer for SoftBank and a small consortium of other investors to purchase at least a 14% stake in the company.

Working at a successful startup is often viewed as a quick path to prosperity, but the reality is more complicated. Startups tend to offer equity packages, typically in the form of stock options, to compensate for below-market salaries. But as companies like Uber have stayed private longer, most employees haven't been able to get rich from those shares. Quite the opposite, some former Uber employees have gone into debt to hang onto shares they still can't sell.

Bitcoin

SEC Shuts Down Munchee ICO (techcrunch.com) 27

The Securities and Exchange Commission has shut down Munchee, a company that built a $15 million token sale. According to TechCrunch, "The Munchee ICO aimed to fund the MUN coin, a payment system for restaurant reviews." However, the company "received a cease and desist from the SEC on December 11" because it constituted the offer and sale of unregistered securities. From the report: Within the SECs findings they noted that Munchee touted itself as a "utility" token which means that the company believed the MUN token would be primarily used within the Munchee ecosystem and not be used to fund operations. However, thanks to an application of the Howey Test (a Supreme Court finding that essentially states that any instrument with the expectation of return is an investment vehicle), the SEC found the Munchee was actually releasing a security masquerading as a utility. "Munchee offered MUN tokens in order to raise capital to build a profitable enterprise," read the SEC notice. "Munchee said that it would use the offering proceeds to run its business, including hiring people to develop its product, promoting the Munchee App, and ensuring 'the smooth operation of the MUN token ecosystem.'" The stickiest part? Munchee claimed that its coins would increase in value thanks to a convoluted process of growth.

In short, Munchee was undone by two things: depending on the token sale as a vehicle to raise cash for operations and using the typically spammy and scammy marketing efforts most ICO floggers use now, tactics taken directly from affiliate marketing handbooks. Fortunately, Munchee was able to return all $15 million to the 40 investors that dumped their coins into scheme.

Businesses

Ajit Pai Offers No Data For Latest Claim That Net Neutrality Hurt Small ISPs (arstechnica.com) 154

An anonymous reader quotes a report from Ars Technica: With days to go before his repeal of net neutrality rules, FCC Chairman Ajit Pai issued a press release about five small ISPs that he says were harmed by the rules. Pai "held a series of telephone calls with small Internet service providers across the country -- from Oklahoma to Ohio, from Montana to Minnesota," his press release said. On these calls, "one constant theme I heard was how Title II had slowed investment," Pai said. But Pai's announcement offered no data to support this assertion. So advocacy group Free Press looked at the FCC's broadband deployment data for these companies and found that four of them had expanded into new territory. The fifth didn't expand into new areas but it did start offering gigabit Internet service. These expansions happened after the FCC imposed its Title II net neutrality rules. (Title II is the statute that the FCC uses to enforce net neutrality rules and regulate common carriers.)
Politics

Paris Summit Finds New Money, Tech To Fight Climate Change (apnews.com) 138

An anonymous reader shares an Associated Press report: World leaders, investment funds and energy magnates promised Tuesday to devote new money and technology to slow global warming at a summit in Paris that President Emmanuel Macron hopes will rev up the Paris climate accord that U.S. President Donald Trump has rejected. Trump wasn't invited to the event but his name was everywhere. One by one, top world diplomats, former California governor Arnold Schwarzenegger, business leaders like Michael Bloomberg and even former U.S. Secretary of State John Kerry insisted that the world will shift to cleaner fuels and reduce emissions regardless of whether the Trump administration pitches in or not. Central to Tuesday's summit was countering Trump's main argument that the 2015 Paris accord on reducing global emissions would hurt U.S. business. Macron, a 39-year-old former investment banker, argues that the big businesses and successful economies of the future will be making and using renewable energy instead of pumping oil. Macron's office announced a dozen international projects emerging from the summit that will inject hundreds of millions of dollars in efforts to curb climate change. "The United States did not drop out of the Paris agreement. Donald Trump got Donald Trump out of the Paris agreement," Schwarzenegger said. The projects also aim to speed up the end of the combustion engine to reduce the emissions that contribute to global warming. With that aim, World Bank President Jim Yong Kim announced that his agency would stop financing oil and gas projects in two years, except in special circumstances for very poor nations.
Facebook

We've Toned Down the 'Destroying Society' Shtick, Facebook Insists (theregister.co.uk) 95

Facebook has taken the unusual step of responding to comments by former VP Chamath Palihapitiya that the social media giant was "destroying how society works." Palihapitiya said that executives ignored cautionary instincts when creating Facebook, and he now regretted the consequences. In a statement, Facebook said: Chamath has not been at Facebook for over 6 years. When Chamath was at Facebook we were focused on building new social media experiences and growing Facebook around the world. Facebook was a very different company back then, and as we have grown, we have realized how our responsibilities have grown too. We take our role very seriously and we are working hard to improve. We've done a lot of work and research with outside experts and academics to understand the effects of our service on well-being, and we're using it to inform our product development. We are also making significant investments more in people, technology and processes, and -- as Mark Zuckerberg said on the last earnings call -- we are willing to reduce our profitability to make sure the right investments are made.
Bitcoin

SEC Warns 'Extreme Caution' Over Cryptocurrency Investments As Many People Take Out Mortgages To Buy Bitcoin (qz.com) 194

The head of the US Securities and Exchange Commission has warned bitcoin and other cryptocurrency investors to beware of scams and criminal activity in the sector. In the financial regulator's strongest statement yet, SEC chair Jay Clayton said: "If a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost." The warning comes at a time when many people have begun to take out mortgages to buy bitcoin. From a report: Clayton's statement was also issued the same day the SEC took regulatory action to halt an initial coin offering (ICO). "Recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. Your invested funds may quickly travel overseas without your knowledge," he wrote, in a sentence that was in bold. Clayton's statement referenced some of the crucial debates that have swirled around the rise and regulation of crypto-assets like bitcoins. Are these currencies? Commodities? Or securities? The statement notes in a footnote that bitcoin in the US has been designated a commodity. But the broader answer seems to be that while it depends from case to case, initial coin offerings, at least, are more likely to be scrutinized and held to the same bar as securities offerings.
Transportation

Inside Faraday Future's Financial House of Cards (theverge.com) 37

Sean O'Kane, reporting for The Verge: When Faraday Future emerged from stealth mode in 2015, it promised to transform the car industry with an American-made luxury electric vehicle that would someday be fully autonomous, maybe even sold through a subscription service. As we learned at CES 2017, the company was taking aim at Tesla with a car -- the FF91 -- that was designed to dazzle, with a 0-60 time of 2.4 seconds as jaw-dropping as the proposed $180,000 price tag. Since then, though, Faraday Future has been more focused on survival than speed. The Verge has learned from multiple sources about the nature of the company's financial plight. While Faraday Future posed as the newest California electric car startup that attracted top auto industry talent, 10 former employees and one person close to the company say the behavior and business practices of its chief investor have brought business to a halt. Also read: Everything wrong with Faraday Future's "Tesla killer"
Businesses

Why Google and Amazon Are Hypocrites (om.blog) 220

Amazon earlier this month responded to Google's decision to remove YouTube from all Fire TV products and the Echo Show. Google says it's taking this extreme step because of Amazon's recent delisting of new Nest products (like Nest Secure and the E Thermostat) and the company's long-running refusal to sell Chromecast or support Google Cast in any capacity. Veteran journalist Om Malik writes: This smacks of so much hypocrisy that I don't even know where to start. The two public proponents of network neutrality and anything but neutral about each other's services on each other's platforms. They can complain about the cable companies from blocking their content and charging for fast lanes. The irony isn't lost on me even a wee bit. They are locked in a battle to collect as much data about us -- what we shop, what we see, what we do online and they do so under the guise of offering us services that are amazing and wonderful. They don't talk about what they won't do with our data, instead, they bicker and distract. So to think that these purveyors of hyper-capitalism will fight for interests of consumers is not only childish, it is foolish. We as end customers need to figure out who is speaking on our behalf when it comes to the rules of the Internet.
Businesses

Ask Slashdot: Biggest IT Management Mistakes? 307

snydeq writes: Sure, nobody's perfect. But for those in charge of enterprise technology, the fallout from a strategic gaffe, bad hire, or weak spine can be disastrous, writes Dan Tynan, in an article on the biggest management mistakes in IT. "Some of the most common IT gaffes include becoming trapped in a relationship with a vendor you can't shake loose, hiring or promoting the wrong people, and hiding problems from top management until it's too late to recover." What are some other career- and company-destroyers you've witnessed in your years in IT?
Businesses

FCC Explains How Net Neutrality Will Be Protected Without Net Neutrality Rules (arstechnica.com) 241

An anonymous reader quotes a report from Ars Technica: The Federal Communications Commission is still on track to eliminate net neutrality rules this Thursday, but the commission said today that it has a new plan to protect consumers after the repeal. The FCC and Federal Trade Commission released a draft memorandum of understanding (MOU) describing how the agencies will work together to make sure ISPs keep their net neutrality promises. After the repeal, there won't be any rules preventing ISPs from blocking or throttling Internet traffic. ISPs will also be allowed to charge websites and online services for faster and more reliable network access. In short, ISPs will be free to do whatever they want -- unless they make specific promises to avoid engaging in specific types of anti-competitive or anti-consumer behavior. When companies make promises and break them, the FTC can punish them for deceiving consumers. That's what FCC Chairman Ajit Pai and Acting FTC Chair Maureen Ohlhausen are counting on. "Instead of saddling the Internet with heavy-handed regulations, we will work together to take targeted action against bad actors," Pai said in a joint announcement with the FTC today.
Bitcoin

In-Store WiFi Provider Used Starbucks Website To Generate Monero Coins (hackread.com) 30

hjf writes: On December 2nd, Twitter user Noah Dinkin tweeted a screenshot that showed that Starbucks' in-store "free WiFi" is using their captive portal to briefly mine the Monero cryptocurrency during the 10-second delay splash screen. Starbucks has not yet responded to the tweet, and neither has their wifi provider, Fibertel Argentina. While Dinkin mentioned that the culprit behind the scheme could be Starbucks' in-store wifi provider, it's possible that a cybercriminal could have hacked their website to place CoinHive code secretly. HackRead notes that "just a few days ago researchers identified more than 5,000 sites that were hijacked to insert CoinHive code, yet Starbucks' direct involvement is still unclear." CoinHive is a company that produces a JavaScript miner for the Monero Blockchain that you can embed in your website. Any coins mined by the browser are sent to the owner of the website.
Music

Apple Buys Shazam To Boost Apple Music (bloomberg.com) 36

An anonymous reader quotes a report from Bloomberg: Apple agreed to acquire music-identification service Shazam, taking ownership of one of the first apps to demonstrate the power of the iPhone, recognizing songs after hearing just a few bars of a tune. Terms of the deal weren't disclosed, but a person familiar with the situation said Apple is paying about $400 million for the U.K.-based startup. That would be one of Apple's largest acquisitions ever, approaching the size of its 1996 purchase of Next Computer Inc. which brought co-founder Steve Jobs back to the company. That transaction would be worth more than $600 million in today's dollars. The Shazam app uses the microphone on a smartphone or computer to identify almost any song playing nearby, then points users to places they can listen to it in future, such as Apple Music or Google's YouTube.

"Apple Music and Shazam are a natural fit, sharing a passion for music discovery and delivering great music experiences to our users," Apple said in an emailed statement on Monday. "We have exciting plans in store, and we look forward to combining with Shazam upon approval of today's agreement. Since the launch of the App Store, Shazam has consistently ranked as one of the most popular apps for iOS," Apple also said. "Today, it's used by hundreds of millions of people around the world, across multiple platforms." The acquisition would help Apple embed that capability more deeply into its music offerings. The company's digital assistant Siri gained Shazam integration in 2014, so users could ask it what song is playing in the background.

Businesses

The First Women in Tech Didn't Leave -- Men Pushed Them Out (wsj.com) 391

An anonymous reader writes: A column on the Wall Street Journal argues that sexism in the tech industry is as old as the tech industry itself. At its genesis, computer programming faced a double stigma -- it was thought of as menial labor, like factory work, and it was feminized, a kind of "women's work" that wasn't considered intellectual (Editor's note: the link could be paywalled; alternative source). In the U.K., women in the government's low-paid "Machine Operator Class" performed knowledge work including programming systems for everything from tax collection and social services to code-breaking and scientific research. Later, they would be pushed out of the field, as government leaders in the postwar era held a then-common belief that women shouldn't be allowed into higher-paid professions with long-term prospects because they would leave as soon as they were married. Today, in the U.S., about a quarter of computing and mathematics jobs are held by women, and that proportion has been declining over the past 20 years. A string of recent events suggest the steps currently being taken by tech firms to address these issues are inadequate.
Privacy

How Email Open Tracking Quietly Took Over the Web (wired.com) 114

Brian Merchant, writing for Wired: There are some 269 billion emails sent and received daily. That's roughly 35 emails for every person on the planet, every day. Over 40 percent of those emails are tracked, according to a study published last June by OMC, an "email intelligence" company that also builds anti-tracking tools. The tech is pretty simple. Tracking clients embed a line of code in the body of an email -- usually in a 1x1 pixel image, so tiny it's invisible, but also in elements like hyperlinks and custom fonts. When a recipient opens the email, the tracking client recognizes that pixel has been downloaded, as well as where and on what device. Newsletter services, marketers, and advertisers have used the technique for years, to collect data about their open rates; major tech companies like Facebook and Twitter followed suit in their ongoing quest to profile and predict our behavior online. But lately, a surprising -- and growing -- number of tracked emails are being sent not from corporations, but acquaintances. "We have been in touch with users that were tracked by their spouses, business partners, competitors," says Florian Seroussi, the founder of OMC. "It's the wild, wild west out there." According to OMC's data, a full 19 percent of all "conversational" email is now tracked. That's one in five of the emails you get from your friends. And you probably never noticed.
Businesses

Net Neutrality: 'Father Of Internet' Joins Tech Leaders in Condemning Repeal Plan (theguardian.com) 169

More than 20 internet pioneers and leaders including the "father of the internet", Vint Cerf; the inventor of the world wide web, Tim Berners-Lee; and the Apple co-founder Steve Wozniak have urged the FCC to cancel its vote to repeal net neutrality, describing the plan as "based on a flawed and factually inaccurate" understanding of how the internet works. From a report: "The FCC's rushed and technically incorrect proposed order to repeal net neutrality protections without any replacement is an imminent threat to the internet we worked so hard to create. It should be stopped," said the technology luminaries in an open letter to lawmakers (PDF) with oversight of the Federal Communications Commission on Monday. The letter refers to the FCC's proposed Restoring Internet Freedom Order, which removes net neutrality protections introduced in 2015 to ensure that internet service providers (ISPs) such as Comcast, AT&T and Verizon would treat all web content and applications equally and not throttle, block or prioritise some content in return for payment. The FCC's vote on the proposed order is scheduled for 14 December and it is expected to be approved. "It is important to understand that the FCC's proposed order is based on a flawed and factually inaccurate understanding of Internet technology," the internet pioneers state, adding that the flaws were outlined in detail in a 43-page comment submitted by 200 tech leaders to the FCC in July.
Bitcoin

The Case that Bitcoin Is a Bubble (economist.com) 259

An anonymous reader shares an excerpt from the Economist: It seems that every day, Bitcoin seems to hit a new high. But the reported price can move up and down by $1,000 or so within a few hours. This might have made it a great investment for those who got in at the right price and are nimble enough to get out in time. But it doesn't make it a useful means of exchange (Editor's note: the link could be paywalled; alternative source). When the price is rising fast, those who use bitcoin will be reluctant to part with it; when the price falls, those who sell goods will be reluctant to accept it.
Bitcoin

Bitcoin Futures Surge In First Day Of Trading (npr.org) 63

On their first day of trading, bitcoin futures surged past $18,000, adding to a streak for the digital currency that began the year at just $1,000 and has nearly tripled in value over the past month alone. From a report: Reuters reports that bitcoin futures, traded through the Chicago Board Options Exchange (CBOE), saw January contracts, which opened at $15,460 in New York on Sunday evening, leap to a high of $17,170 during Asian hours. Trading, which began at 6 p.m. ET (5 p.m. CT), was so intense that halts designed to cool volatility were triggered twice on the CBOE. The halts are "not surprising based on the volatility of the underlying [asset]. The futures are behaving as expected and designed," Tom Lehrkinder, senior analyst at consulting firm Tabb Group, was quoted by CNBC as saying.
Facebook

Former Facebook Exec Says Social Media is Ripping Apart Society (theverge.com) 396

An anonymous reader shares a report on The Verge: Another former Facebook executive has spoken out about the harm the social network is doing to civil society around the world. Chamath Palihapitiya, who joined Facebook in 2007 and became its vice president for user growth, said he feels "tremendous guilt" about the company he helped make. "I think we have created tools that are ripping apart the social fabric of how society works," he told an audience at Stanford Graduate School of Business, before recommending people take a âoehard breakâ from social media. Palihapitiya's criticisms were aimed not only at Facebook, but the wider online ecosystem. "The short-term, dopamine-driven feedback loops we've created are destroying how society works," he said, referring to online interactions driven by "hearts, likes, thumbs-up." "No civil discourse, no cooperation; misinformation, mistruth. And it's not an American problem -- this is not about Russians ads. This is a global problem." Also read: Sean Parker Unloads on Facebook 'Exploiting' Human Psychology
Businesses

Fired Tech Workers Turn To Chatbots for Counseling (bloomberg.com) 96

An anonymous reader shares a Bloomberg report: For months Lovkesh Joshi was quietly terrified of losing his job as a manager at a top Indian tech services company. Joshi didn't want to burden his wife or friends so he turned to a chatbot therapist called Wysa. Powered by AI, the app promises to be "loyal, supportive and very private," and encourages users to divulge their feelings about a recent major event or big change in their lives. "I could open up and talk," says the 41-year-old father of two school-age children, who says his conversations with the bot flowed naturally. "I felt heard and understood." Joshi moved to a large rival outsourcer two months ago. The upheaval in India's $154 billion tech outsourcing industry has prompted thousands of Indians to seek solace in online therapy services. People accustomed to holding down prestigious jobs and pulling in handsome salaries are losing out to automation, a shift away from long-term legacy contracts and curbs on U.S. work visas. McKinsey & Co says almost half of the four million people working in India's IT services industry will become "irrelevant" in the next three to four years. Indians, like people the world over, tend to hide their mental anguish for fear of being stigmatized. That's why many are embracing the convenience, anonymity and affordability of online counseling startups, most of which use human therapists.

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