FTC Launches New Office to Investigate Tech Companies, Seeks Tech Researchers

America’s Federal Trade Commission “has long been dwarfed by Silicon Valley titans like Google and Apple, each staffed with thousands of engineers and technologists,” notes the Washington Post.

“But FTC leaders are hoping combining and expanding their forces into a dedicated tech unit will help them keep up with the rapid advancements across the industry — and to keep it in check.”
The creation of the office will increase the number of technologists on staff by roughly a dozen, up from the current 10 — more than doubling the agency’s capacity, officials said. In an exclusive interview announcing the move, FTC Chief Technology Officer Stephanie Nguyen said the unit will work with teams across the agency’s competition and consumer protection bureaus to investigate potential misconduct and bring cases against violators. “Actually being able to have staff internally to approach these matters and help with subject matter expertise is critical,” said Nguyen, who will lead the office.

The announcement arrives at a critical juncture. Federal regulators are dialing up investigations into tech behemoths like Amazon and waging blockbuster legal battles against Microsoft and Facebook parent company Meta.
While Nguyen declined to discuss specific probes or cases, she said the new technology office will work directly on both the agency’s investigative and enforcement efforts to “strengthen and support our attorneys” as they look to tackle alleged abuses across the economy. “The areas … we will focus on is to work on cases,” she said…. Nguyen said, the new team of technologists could help the agency refine the subpoenas it issues companies to get at the heart of their business models, or to strike a settlement that gets closer to “the root cause of the harm” taking place.

Republican Commissioner Christine Wilson, who Tuesday announced plans to resign “soon,” voted in favor of creating the office, joining with the other commissioners in a unanimous vote.

The office’s core mission will have three key areas, reports FedScoop: “strengthening and supporting law enforcement investigations, advising commission staff on policy and research initiatives, and highlighting market trends.”

“For more than a century, the FTC has worked to keep pace with new markets and ever-changing technologies by building internal expertise,” FTC Chair Lina Khan said. “Our office of technology is a natural next step in ensuring we have the in-house skills needed to fully grasp evolving technologies and market trends as we continue to tackle unlawful business practices and protect Americans.”

Read on for more details about the new office.

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Tile Ads Undetectable Anti-Theft Mode To Tracking Devices, With $1 Million Fine If Used For Stalking

AirTag competitor Tile today announced a new Anti-Theft Mode for Tile tracking devices, which is designed to make Tile accessories undetectable by the anti-stalking Scan and Secure feature. MacRumors reports: Scan and Secure is a security measure that Tile implemented in order to allow iPhone and Android users to scan for and detect nearby Tile devices to keep them from being used for stalking purposes. Unfortunately, Scan and Secure undermines the anti-theft capabilities of the Tile because a stolen device’s Tile can be located and removed, something also possible with similar security features added for AirTags. Tile’s Anti-Theft Mode disables Scan and Secure so a Tile tracking device will not be able to be located by a person who does not own the tracker. To prevent stalking with Anti-Theft Mode, Tile says that customers must register using multi-factor identification and agree to stringent usage terms, which include a $1 million fine if the device ends up being used to track a person without their consent.

The Anti-Theft Mode option is meant to make it easier to locate stolen items by preventing thieves from knowing an item is being tracked. Tile points out that in addition to Anti-Theft Mode, its trackers do not notify nearby smartphone users when an unknown Bluetooth tracker is traveling with them, making them more useful for tracking stolen items than AirTags. Apple has added alerts for nearby AirTags to prevent AirTags from being used for tracking people. Enabling Anti-Theft mode will require users to link a government-issued ID card to their Tile account, submitting to an “advanced ID verification process” that uses a biometric scan to detect fake IDs. […] Anti-Theft Mode is rolling out to Tile users starting today, and will be available to all users in the coming weeks.

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Judge Slaps Sanctions on Seattle for Deleting Thousands of Texts Between Top Officials

A federal judge has levied crippling sanctions against the city of Seattle for deleting thousands of text messages between high-ranking officials, including the former mayor and police chief, during the three-week Capitol Hill Organized Protest — a ruling that will undermine the city’s defense against a lawsuit filed by business owners and residents affected by the high-profile protests. From a report: In a pair of lengthy orders Jan. 13, U.S. District Judge Thomas Zilly sent the so-called Hunters Capital lawsuit to trial on two of five claims, dismissing three others. He also ordered the city to pay the attorneys fees for those who showed city leaders destroyed significant evidence about their decision-making during CHOP, including their move to abandon the Police Department’s East Precinct. The judge found significant evidence that the destruction of CHOP evidence was intentional and that officials tried for months to hide the text deletions from opposing attorneys. “The Court finds substantial circumstantial evidence that the city acted with the requisite intent necessary to impose a severe sanction and that the city’s conduct exceeds gross negligence,” he wrote. For that reason, Zilly said that when the case goes to trial he’ll instruct the jury that it may presume the text messages were detrimental to the city’s legal position and that there’s significant circumstantial evidence they were deleted intentionally.

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MIT Team Makes a Case For Direct Carbon Capture From Seawater, Not Air

The oceans soak up enormous quantities of carbon dioxide, and MIT researchers say they’ve developed a way of releasing and capturing it that uses far less energy than direct air capture — with some other environmental benefits to boot. New Atlas reports: According to IEA figures from 2022, even the more efficient air capture technologies require about 6.6 gigajoules of energy, or 1.83 megawatt-hours per ton of carbon dioxide captured. Most of that energy isn’t used to directly separate the CO2 from the air, it’s in heat energy to keep the absorbers at operating temperatures, or electrical energy used to compress large amounts of air to the point where the capture operation can be done efficiently. But either way, the costs are out of control, with 2030 price estimates per ton ranging between US$300-$1,000. According to Statista, there’s not a nation on Earth currently willing to tax carbon emitters even half of the lower estimate; first-placed Uruguay taxes it at US$137/ton. Direct air capture is not going to work as a business unless its costs come way down.

It turns out there’s another option: seawater. As atmospheric carbon concentrations rise, carbon dioxide begins to dissolve into seawater. The ocean currently soaks up some 30-40% of all humanity’s annual carbon emissions, and maintains a constant free exchange with the air. Suck the carbon out of the seawater, and it’ll suck more out of the air to re-balance the concentrations. Best of all, the concentration of carbon dioxide in seawater is more than 100 times greater than in air. Previous research teams have managed to release CO2 from seawater and capture it, but their methods have required expensive membranes and a constant supply of chemicals to keep the reactions going. MIT’s team, on the other hand, has announced the successful testing of a system that uses neither, and requires vastly less energy than air capture methods.

In the new system, seawater is passed through two chambers. The first uses reactive electrodes to release protons into the seawater, which acidifies the water, turning dissolved inorganic bicarbonates into carbon dioxide gas, which bubbles out and is collected using a vacuum. Then the water’s pushed through to a second set of cells with a reversed voltage, calling those protons back in and turning the acidic water back to alkaline before releasing it back into the sea. Periodically, when the active electrode is depleted of protons, the polarity of the voltage is reversed, and the same reaction continues with water flowing in the opposite direction. In a new study published in the peer-reviewed journal Energy & Environmental Science, the team says its technique requires an energy input of 122 kJ/mol, equating by our math to 0.77 mWh per ton. And the team is confident it can do even better: “Though our base energy consumption of 122 kJ/mol-CO2 is a record-low,” reads the study, “it may still be substantially decreased towards the thermodynamic limit of 32 kJ/mol-CO2.”

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Lenovo Posts Worst Revenue Fall In 14 Years As PC Demand Slumps

China’s Lenovo reported a 24% revenue decline for the third quarter, its largest revenue fall in 14 years as global demand for electronics slumped, and said it would look to cut spending and make workforce adjustments. Reuters reports: The world’s largest maker of personal computers (PCs) said on Friday that total revenue during the October-December quarter was $15.3 billion, down 24% from the same quarter a year earlier. The results trailed an average Refinitiv estimate of $16.39 billion drawn from seven analysts. The outbreak of COVID-19 in 2020 provided a huge boost in electronic sales for Lenovo and its peers worldwide as many people opted to work remotely and replaced or upgraded their equipment. However, demand has begun to fall and Lenovo’s revenue started contracting in the July-September quarter last year.

Lenovo Chief Executive Officer Yang Yuanqing told an analyst call after its earnings that the entire PC and mobile market experienced a “severe downturn” in the last quarter, and the company was looking to reduce expenses and improve efficiency. Lenovo is aiming to reduce its run rate operational expenses by approximately $150 million to achieve a medium-term goal of doubling net margin, its chief financial officer, Wong Wai Ming, added. “This includes overall reduction in operational spending as well as workforce adjustments where necessary and appropriate.” he said.

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Google Gives Apple Cut of Chrome iOS Search Revenue

According to The Register, Google has been paying Apple a portion of search revenue generated by people using Google Chrome on iOS. From the report: This is one of the aspects of the relationship between the two tech goliaths that currently concerns the UK’s Competition and Markets Authority (CMA). Though everyone knows Google pays Apple, Samsung, and other manufacturers billions of dollars to make its web search engine the default on devices, it has not been reported until now that the CMA has been looking into Chrome on iOS and its role in a search revenue sharing deal Google has with Apple. The British competition watchdog is worried that Google’s payments to Apple discourage the iPhone maker from competing with Google. Substantial payments for doing nothing incentivize more of the same, it’s argued. This perhaps explains why Apple, though hugely profitable, has not launched a rival search engine or invested in the development of its Safari browser to the point that it could become a credible challenger to Chrome.

Having Google pay Apple “a significant share of revenue from Google Search traffic” passing through its own Chrome browser on iOS is difficult to explain. Apple does not provide any obvious value to people seeking to use Google Search within Google Chrome. One attempt to explain the arrangement can be found in an antitrust lawsuit filed on December 27, 2021, and subsequently amended [PDF] on March 29, 2022. The complaint, filed by the Alioto Law Firm in San Francisco, claims Apple has been paid for the profits it would have made if it had competed with Google, without the cost and challenge of doing so. “Because more than half of Google’s search business was conducted through Apple devices, Apple was a major potential threat to Google, and that threat was designated by Google as ‘Code Red,'” the complaint contends. “Google paid billions of dollars to Apple and agreed to share its profits with Apple to eliminate the threat and fear of Apple as a competitor.”

These alleged revenue sharing arrangements — which are known in detail only to a limited number of people and have yet to be fully disclosed — have been noted by the UK CMA as well as the US Justice Department, which along with eleven US States, filed an antitrust complaint against Google on October 20, 2020. Reached by phone, attorney Joseph M. Alioto, who filed the private antitrust lawsuit, told The Register it would not surprise him to learn that Google has been paying Apple for search revenue derived from Chrome. He said Google’s deal with Apple, which began at $1 billion per year, reached as high as $15 billion annually in 2021. “The division of the market is per se illegal under the antitrust laws,” said Alioto. Apple and Google are currently trying to have the case dismissed citing lack of evidence of a horizontal agreement between the two companies, and other supposed deficiencies.

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Judge Signals Jail Time if Bankman-Fried’s Internet Access Is Not Curbed

Sarah Blesener writes via The New York Times: Since his arrest two months ago, Samuel Bankman-Fried, the disgraced cryptocurrency executive, has been physically confined to the Palo Alto home of his parents, under the force of a $250 million bail package. But he has roamed largely unfettered in the wilderness of the internet: conducting interviews, posting narratives, making calls on encrypted apps and using a virtual private network, a web tool that allows users to conceal data and visit websites without detection. Those unrestrained days may soon be over. On Thursday, a federal judge overseeing Mr. Bankman-Fried’s multibillion-dollar fraud case signaled a willingness to jail him for his persistent testing of his confinement’s boundaries, going beyond what prosecutors had asked. “Why am I being asked to turn him loose in this garden of electronic devices?” the judge, Lewis A. Kaplan, asked prosecutors, describing the well-wired home of Mr. Bankman-Fried’s parents, both professors at Stanford Law School.

No new conditions were set during Thursday’s hearing, the latest of several hearings, held in federal court in Manhattan, to consider more restrictive bail terms. Judge Kaplan asked both sides to prepare concrete proposals that would limit and monitor Mr. Bankman-Fried’s access to the internet without inhibiting his ability to participate in his defense. Federal prosecutors in Manhattan have charged Mr. Bankman-Fried with orchestrating widespread fraud at FTX, the cryptocurrency exchange he founded, accusing him of misappropriating billions of dollars of customers’ money. Prosecutors said he used the funds to finance lavish real estate purchases, political contributions and investments in other companies. After he was charged in December, Mr. Bankman-Fried was released on bail with the requirement that he wear an ankle monitor and stay confined to his parents’ house. […]

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Apple Patent Describes a Way To Read Back iMessages In the Sender’s Voice

A new Apple patent application describes a way to transform an iMessage to a voice note. In this way, the recipient can choose to have your message read to them not in Siri’s voice, but in yours. 9to5Mac reports: In other words, when you send an iMessage, your phone would offer you the option to attach a voice file. This file would be automatically created and stored on your phone, based on your use of Siri. If you do this, the recipient would be asked whether they want to receive the voice file as well as the message. If they choose to do this, then both that message and any subsequent messages from you can be read in a simulation of your voice. The patent also allows for the voice file to be sent on its own, so you can do it ahead of time with selected contacts, so there’s no delay in downloading it when a message arrives.

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DocuSign To Lay Off 10% of Its Workforce

Ransomware Gang Uses New Zero-Day To Steal Data On 1 Million Patients

Community Health Systems (CHS), one of the largest healthcare providers in the United States with close to 80 hospitals in 16 states, confirmed this week that criminal hackers accessed the personal and protected health information of up to 1 million patients. TechCrunch reports: The Tennessee-based healthcare giant said in a filing with government regulators that the data breach stems from its use of a popular file-transfer software called GoAnywhere MFT, developed by Fortra (previously known as HelpSystems), which is deployed by large businesses to share and send large sets of data securely. Community Health Systems said that Fortra recently notified it of a security incident that resulted in the unauthorized disclosure of patient data. “As a result of the security breach experienced by Fortra, protected health information and personal information of certain patients of the company’s affiliates were exposed by Fortra’s attacker,” according to the filing by Community Health Systems, which was first spotted by DataBreaches.net. The healthcare giant added that it would offer identity theft protection services and notify all affected individuals whose information was exposed, but said there had been no material interruption to its delivery of patient care.

CHS hasn’t said what types of data were exposed and a spokesperson has not yet responded to TechCrunch’s questions. This is CHS’ second-known breach of patient data in recent years. The Russia-linked ransomware gang Clop has reportedly taken responsibility for exploiting the new zero-day in a new hacking campaign and claims to have already breached over a hundred organizations that use Fortra’s file-transfer technology — including CHS. While CHS has been quick to come forward as a victim, Clop’s claim suggests there could be dozens more affected organizations out there — and if you’re one of the thousands of GoAnywhere users, your company could be among them. Thankfully, security experts have shared a bunch of information about the zero-day and what you can do to protect against it. Security researcher Brian Krebs first flagged the zero-day vulnerability in Fortra’s GoAnywhere software on February 2.

“A zero-day remote code injection exploit was identified in GoAnywhere MFT,” Fortra said in its hidden advisory. “The attack vector of this exploit requires access to the administrative console of the application, which in most cases is accessible only from within a private company network, through VPN, or by allow-listed IP addresses (when running in cloud environments, such as Azure or AWS).”

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