Australia Passes World’s First Encryption-Busting Law

Security agencies will gain greater access to encrypted messages under new laws in Australia. The legislation will force technology companies such as Apple, Facebook and Google to disable encryption protections to allow investigators to track the communications of terrorists and other criminals. It is, however, a controversial measure.

Australian law enforcement officials say the growth of end-to-end encryption in applications such as Signal, Facebook’s WhatsApp and Apple’s iMessage hamper their efforts to track the activities of criminals and extremists.

End-to-end encryption is a code that allows a message to stay secret between the person who wrote it and the recipient. 

PM: Law urgently needed

But a new law passed Thursday in Australia compels technology companies, device manufacturers and service providers to build in features needed for police to crack those hitherto secret codes. However, businesses will not have to introduce these features if they are considered “systemic weaknesses,” which means they are likely to result in compromised security for other users.

The Australian legislation is the first of its kind anywhere.

Prime Minister Scott Morrison said the new law was urgently needed because encoded messaging apps allowed “terrorists and organized criminals and … pedophile rings to do their evil work.”

Critics: Law goes too far

However, critics, including technology companies, human rights groups, and lawyers, believe the measure goes too far and gives investigators “unprecedented powers to access encrypted communications.”

Francis Galbally, the chairman of the encryption provider Senetas, says the law will send Australia’s tech sector into reverse.

“We will lose some of the greatest mathematicians and scientists this country has produced, and I can tell you because I employ a lot of them, they are fabulous, they are well regarded, but the world will now regard them if they stay in this country as subject to the government making changes to what they are doing in order to spy on everybody,” he said.

Galbally also claims that his company could lose clients to competitors overseas because it cannot guarantee its products have not been compromised by Australian authorities.

Tech giant Apple said in October that “it would be wrong to weaken security for millions of law-abiding customers in order to investigate the very few who pose a threat.”

The new law includes penalties for noncompliance.

Top Democrat: Moscow Has Closed Cyber Gap With US

The top Democrat on the Senate Intelligence Committee warns the United States is being outgunned in cyberspace, already having lost its competitive advantage to Russia while China is rapidly closing in.

“When it comes to cyber, misinformation and disinformation, Russia is already our peer and in the areas of misinformation or disinformation, I believe is ahead of us,” Senator Mark Warner told an audience Friday in Washington.

“This is an effective methodology for Russia and it’s also remarkably cheap,” he added, calling for a realignment of U.S. defense spending.

Warner, calling Russia’s election meddling both an intelligence failure and a “failure of imagination,” strongly criticized the White House, key departments and fellow lawmakers for being too complacent in their responses.

As for China, Warner called Beijing’s cyber and censorship infrastructure “the envy of authoritarian regimes around the world” and warned when it comes to artificial intelligence, quantum computing and 5G mobile phone networks, China is “starting to outpace us on these investments by orders of magnitude.”

In contrast, the Democratic senator laid out a more aggressive approach in cyberspace, with the United States leading allies in an effort to establish clear rules and norms for behavior in cyberspace.

He also said it was imperative the U.S. articulate when and where it would respond to cyberattacks.

“Our adversaries continue to believe that there won’t be consequences for their actions,” Warner said. “For Russia and China, it’s pretty much been open season.”

Warner also delivered a stern message to social media companies.

“Major platform companies — like Twitter and Facebook, but also Reddit, YouTube and Tumblr — aren’t doing nearly enough to prevent their platforms from becoming petri dishes for Russian disinformation and propaganda,” he said. “If they don’t work with us, Congress will have to work on its own.”

The Trump administration unveiled a new National Cyber Strategy in September, calling for a more aggressive response to the growing online threat posed by other countries, terrorist groups and criminal organizations.

“We’re not just on defense,” National Security Adviser John Bolton told reporters at the time. “We’re going to do a lot of things offensively, and I think our adversaries need to know that.”

Top U.S. military officials have also said their cyber teams are engaging against other countries, terrorist groups and even criminal organizations on a daily basis.

Warner on Friday praised elements of the new strategy, particularly measures that have allowed the military to respond to attacks more quickly. But, he said, on the whole it is not enough, pointing to Trump’s willingness to “kowtow” to Russian President Vladimir Putin during their Helsinki Summit over Moscow’s election interference efforts.

“No one in the Trump administration in the intel [intelligence] or defense world doesn’t acknowledge what happened in 2016,” he said. “But the fact that the head of our government still [finds] it’s hard to get those words out of his mouth, is a real problem.”

Australia Anti-Encryption Law Rushed to Passage 

A newly enacted law rushed through Australia’s parliament will compel technology companies such as Apple, Facebook and Google to disable encryption protections so police can better pursue terrorists and other criminals.  

  

Cybersecurity experts say the law, the first of its kind globally, will instead be a boon to the criminal underworld by undermining the technical integrity of the internet, hurting digital security and user privacy.  

  

“I think it’s detrimental to Australian and world security,” said Bruce Schneier, a tech security expert affiliated with Harvard University and IBM.  

  

The law is also technically vague and seems contradictory because it doesn’t require systematic weaknesses — so-called “back doors” — to be built in by tech providers. Such back doors are unlikely to remain secret, meaning that hackers and criminals could easily exploit them. 

 

Back doors were central to a 1990s U.S. effort to require manufacturers to install a so-called “Clipper chip” into communications equipment so the government could listen in on voice and data transmissions. U.S. law enforcement officials, including Deputy Attorney General Rod Rosenstein, are again pushing for legislation that would somehow give authorities access to secure communications. 

 

The Australian bill is seen by many as a beachhead for those efforts because the nation belongs to the “Five Eyes” security alliance with the U.S., Britain, Canada and New Zealand.  

  

“There is a lot here that doesn’t make any sense,” Schneier said of the Australian bill. “This is a technological law written by non-technologists and it’s not just bad policy. In many ways, I think it’s unworkable.” 

 

A leading figure in cryptography, Martin Hellman of Stanford University, said it appears the bill would “facilitate crime by weakening the security of the affected devices.” 

Blow against ‘evil work’

 

The law won final legislative approval late Thursday, parliament’s final session of the year. Prime Minister Scott Morrison said it was urgently needed. 

 

“This was very important legislation to give police and security agencies the ability to get into encrypted communications,” he told Nine Network television. “Things like WhatsApp, things like that which are used by terrorists and organized criminals and indeed pedophile rings to do their evil work.” 

 

He noted that the opposition Labor Party “had to be dragged to the table” and backed the legislation as an emergency measure out of concern extremists could target Christmas-New Year crowds. 

 

Labor lawmakers said they want amendments passed when parliament resumes in February. Opposition leader Bill Shorten said he supported the current bill only because he could not “expose Australians to increased [national security] risk.” 

 

Duncan Lewis, director-general of the Australian Security Intelligence Organization, noted during hearings that extremists share encrypted messages that Australia’s main secret service cannot intercept or read. 

 

President Morry Bailles of the Law Council of Australia, a leading lawyers group, criticized the bill’s swift parliamentary journey though lawmakers knew “serious problems exist” with giving law enforcement “unprecedented powers to access encrypted communications.” 

 

Australian law enforcement officials have complained that the growth of end-to-end encryption in applications such as Signal, Facebook’s WhatsApp and Messenger and Apple’s iMessage could be the worst blow to intelligence and law enforcement capability in decades. Federal Police Commissioner Andrew Colvin said it hampers criminal investigations at all levels. 

Apple argument

 

But Apple, in comments filed with parliament in October, argued that “it would be wrong to weaken security for millions of law-abiding customers in order to investigate the very few who pose a threat.” 

 

The company’s iPhones, because of their strong encryption, are bulwarks of national security around the globe and help protect journalists, human rights workers and people living under repressive regimes. 

 

“The iPhone is national security infrastructure right now,” said Schneier. “Every Australian legislator uses the systems and devices that that law will target, and making them insecure seems like a really bad idea.” 

 

Apple also complained in October that the bill was “dangerously ambiguous.” 

 

One apparent contradiction confounds technologists. The legislation says the government “must not require providers to implement or build systemic weaknesses in forms of electronic protection (‘back doors’)” but also says it can “require the selective deployment of a weakness or vulnerability in a particular service, device or item of software on a case-by-case basis.” 

 

Technologists say that the mathematics underlying encryption and the way it’s encoded into software make it impossible to decrypt a single user’s communications without affecting all users. 

 

Eric Wenger, director of cybersecurity and privacy policy for the U.S. technology giant Cisco Systems, warned during debate on the bill that Australia could be at a competitive disadvantage if its data were not regarded as secure. 

 

Australia was a major driver of a statement agreed to at the Group of 20 leaders’ summit in Germany last year that called on the technology industry to provide “lawful and non-arbitrary access to available information” needed to protect against terrorist threats. 

Virginia Tech Students Unveil the House of the Future

Joseph Wheeler and his team of students and faculty from Virginia Tech University are convinced they are building the house of the future.

Judges at the recent Solar Decathlon Middle East agreed, awarding their future house first place in the December competition held in Dubai.

“We set it up in two days,” Wheeler told VOA. “All the other teams took the full two weeks of construction. Ours was set up in two days, generating power on the third day by the sun.”

The quick assembly time is just one thing that makes this home special. All of, literally all of it, comes in modules that are put together on-site into a fully functioning plug-and-play house.

Quick to assemble

“Our typical cartridge is 3-feet wide and about 12-feet long and no higher than 10-feet tall,” Wheeler said. “That cartridge contains the structure of the house. It’s got the structural walls, the insulation in it. But it’s got all the plumbing and the electrical system pre-installed — even the cabinetry, even the finishes. It is an incredibly high-tech home. In this case, well over a $1 million home but highly sophisticated.”

The home is fully wired, a test bed for everything digital. The home is also energy positive, which means — thanks to solar cells — it produces more energy than it consumes. This while being fully functional in the Dubai desert.

“You had to maintain a certain temperature range in the home. You had to keep all your appliances working and run them nonstop for an entire two weeks,” Wheeler said. “You had to charge an electric car from the excess power you generated in the house. You had to do laundry. You had to do dishes. I mean, you had to do all these things.”

They did it, and won.

​What’s next?

Far from being a one-of-a-kind home, Wheeler and his team say they fully expect this kind of home construction to quickly become the way homes are built in the future.

“We already have our phones, our cars, all of these pieces of technology that we bring with us that come with the expectation that they are smart,” Bobby Vance, a professor of architecture on the Virginia Tech team, told VOA. “But we go home and we kind of shut that all away.”

The team says this home is proof that [shutting it away] doesn’t need to be the case anymore.

“We envision one day in the very near future, you’re going to be able to go onto Amazon, and you’re going to be able to pick out your features — your appliances, the finishes you want in your kitchen and in your bathroom and in your bedroom, and you’ll place those in your shopping cart,” Wheeler said.

Wheeler and Vance said they are in talks with a number of homebuilding companies and are about to begin building a home that will be for sale sometime in the spring. They are also hoping to ramp up their production on a much larger scale to make their dream home a reality in the near future.

US and China Fight for Supremacy in 5G Technology

Many experts predict that the emerging 5G wireless technology will revolutionize the world’s economy. They say it holds the key to a smarter, more efficient, more connected and much wealthier world. But a recent congressional report outlines how China plans to use the transition to 5G and its access to billions of networked electronic devices for intelligence-gathering, sabotage and business deals. As VOA’s Jela de Franceschi reports, China’s aim is to put an end to US high-tech pre-eminence.

EU Steps Up Fight Against ‘Fake News’ Ahead of Elections

European Union authorities want internet companies including Google, Facebook and Twitter to file monthly reports on their progress eradicating “fake news” campaigns from their platforms ahead of elections next year.

Officials from the EU’s executive Commission unveiled the measures Wednesday as part of an action plan to counter disinformation in the lead up to the continent-wide vote in the spring.

The internet companies will have to submit their reports from January until May, when hundreds of millions of people in 27 EU member countries are scheduled to vote for 705 lawmakers in the bloc’s parliament.

The Commission singled out Russia.

“There is strong evidence pointing to Russia as a primary source of disinformation in Europe,” said Commission Vice President Andrus Ansip.

Many EU member countries have taken action to combat disinformation, but now “we need to work together and coordinate our efforts,” he said.

Russian authorities have repeatedly rejected Western accusations of sponsoring disinformation campaigns and described them as part of Western efforts to smear the country.

Other measures include a new “rapid alert system,” beefing up budgets, and adding expert staff and data analysis tools.

Google, Facebook, Twitter and browser maker Mozilla are the companies that so far have signed up to a voluntary EU code of conduct on fighting disinformation.

They’ll be expected to report on how they’re carrying out commitments they made under the code, including their work on making political advertising more transparent and how many fake and bot accounts they have identified and shut down. They’ll also provide updates on their cooperation with fact-checkers and academic researchers to uncover disinformation campaigns.

Google, which declined to comment, has tightened up requirements for political ads in the EU, including requiring information on who paid for them and for buyers to verify their identities. Facebook, which did not respond to a request for comment, did the same for political ads in Britain.

U.S. technology giants have committed millions of dollars, tens of thousands of employees and what they say are their best technical efforts into fighting fake news, propaganda and hate that has proliferated on their digital platforms.

“We need to see the internet platforms step up and make some real progress on their commitments,” said Julian King, the EU security commissioner. If there’s not enough headway, the Commission would consider other options including regulation, he said.

UK Releases Facebook Emails About Data Privacy

The British Parliament has released some 250 pages worth of documents that show Facebook considered charging developers for data access.

Parliament’s media committee seized confidential Facebook documents from the developer of a now-defunct bikini photo searching app as part of its investigation into fake news. The documents show internal discussions about linking data to revenue.

 

“There’s a big question on where we get the revenue from,” CEO Mark Zuckerberg said in one email. “Do we make it easy for devs to use our payments/ad network but not require them? Do we require them? Do we just charge a rev share directly and let devs who use them get a credit against what they owe us? It’s not at all clear to me here that we have a model that will actually make us the revenue we want at scale.”

 

The parliament’s Digital, Culture, Media and Sport Committee received the documents from app developer Six4Three, which had acquired the files dating from 2013-2014, as part of a U.S. lawsuit against the social media giant. The app developer is suing Facebook over a change to the social network’s privacy policies in 2015 that led Six4Three to shut down its app, Pikinis, which let users find photos of their friends in bathing suits by searching their friends list.

 

Facebook responded quickly, saying the release was misleading.

 

“The documents Six4Three gathered for their baseless case are only part of the story and are presented in a way that is very misleading without additional context,” the statement said. “We stand by the platform changes we made in 2015 to stop a person from sharing their friends’ data with developers. Like any business, we had many internal conversations about the various ways we could build a sustainable business model for our platform. But the facts are clear: we’ve never sold people’s data.”

 

Where Are Drones? Amazon’s Customers Still Waiting

Jeff Bezos boldly predicted five years ago that drones would be carrying Amazon packages to people’s doorsteps by now.

Amazon customers are still waiting. And it’s unclear when, if ever, this particular order by the company’s founder and CEO will arrive.

Bezos made billions of dollars by transforming the retail sector. But overcoming the regulatory hurdles and safety issues posed by drones appears to be a challenge even for the world’s wealthiest man. The result is a blown deadline on his claim to CBS’ “60 Minutes” in December 2013 that drones would be making deliveries within five years.

The day may not be far off when drones will carry medicine to people in rural or remote areas, but the marketing hype around instant delivery of consumer goods looks more and more like just that — hype. Drones have a short battery life, and privacy concerns can be a hindrance, too.

“I don’t think you will see delivery of burritos or diapers in the suburbs,” says drone analyst Colin Snow.

Drone usage has grown rapidly in some industries, but mostly outside the retail sector and direct interaction with consumers.

The government estimates that about 110,000 commercial drones are operating in U.S. airspace, and the number is expected to soar to about 450,000 in 2022. They are being used in rural areas for mining and agriculture, for inspecting power lines and pipelines, and for surveying.

Amazon says it is still pushing ahead with plans to use drones for quick deliveries, though the company is staying away from fixed timelines.

“We are committed to making our goal of delivering packages by drones in 30 minutes or less a reality,” says Amazon spokeswoman Kristen Kish. The Seattle-based online retail giant says it has drone development centers in the United States, Austria, France, Israel and the United Kingdom.

Delivery companies have been testing the use of drones to deliver emergency supplies and to cover ground quickly in less populated areas. By contrast, package deliveries would be concentrated in office parks and neighborhoods where there are bigger issues around safety and privacy.

In May, the Trump administration approved a three-year program for private companies and local government agencies to test drones for deliveries, inspections and other tasks.

But pilot programs by major delivery companies suggest few Americans will be greeted by package-bearing drones any time soon. United Parcel Service tested launching a drone from a delivery truck that was covering a rural route in Florida. DHL Express, the German delivery company, tested the use of drones to deliver medicine from Tanzania to an island in Lake Victoria.

Frank Appel, the CEO of DHL’s parent company, Deutsche Post AG, said “over the next couple of years” drones will remain a niche vehicle and not widely used. He said a big obstacle is battery life.

“If you have to recharge them every other hour, then you need so many drones and you have to orchestrate that. So good luck with that,” he told The Associated Press.

Appel said human couriers have another big advantage over drones: They know where customers live and which doorbell to ring. “To program that in IT is not that easy and not cheap,” he said.

Analysts say it will take years for the Federal Aviation Administration to write all the rules to allow widespread drone deliveries.

Snow, the CEO of Skylogic Research, says a rule permitting operators to fly drones beyond their line of sight — so critical to deliveries — is at least 10 years away. A method will be needed to let law enforcement identify drones flying over people — federal officials are worried about their use by terrorists.

While the rules are being written, companies will rely on waivers from the FAA to keep experimenting and running small-scale pilot programs.

“People like DHL and the rest of them (will say), ‘Hey, we can deliver via drone this parcel package to this island,’ but that’s not the original vision that Amazon presented,” Snow says.

There is a long list of FAA rules governing drone flights. They generally can’t fly higher than 400 feet, over many federal facilities, or within five miles of an airport. Night flights are forbidden. For the delivery business, the most biggest holdup is that the machines must remain within sight of the operator at all times.

In June, the National Academies of Sciences, Engineering, and Medicine said the FAA’s was being overly conservative in its safety standards for drones. The group said FAA’s risk-averse attitude was holding back beneficial uses, such as drones helping firefighters who are battling a fierce blaze.

Even before the criticism by the scientific panel, the FAA had begun to respond more quickly to operators’ requests for waivers from some rules, says Alan Perlman, founder of the Drone Pilot Ground School in Nashville, Tennessee. He said it is also getting easier and cheaper to buy liability insurance.

Bezos was mindful of the safety issues, telling “60 Minutes” back in 2013, “This thing can’t land on somebody’s head while they’re walking around their neighborhood.”

That didn’t stop him from predicting that drones fed with GPS coordinates would be taking off and making deliveries in “four, five years. I think so. It will work, and it will happen.”

To Perlman, the billionaire’s optimism made perfect sense.

“When you’re in his world you think more about technology than regulations, and the (drone) technology is there,” Perlman said.

Microsoft Surpasses Apple as Most Valuable Public Company

Microsoft’s big bet on cloud computing is paying off as the company has surpassed Apple as the world’s most valuable publicly traded company. 

 

The software maker’s prospects looked bleak just a few years ago, as licenses for the company’s Windows system fell with a sharp drop in sales of personal computers. 

 

But under CEO Satya Nadella, Microsoft has found stability by focusing on software and services over the internet, or the cloud, with long-term business contracts.  

  

That 1990s personal-computing powerhouse is now having a renaissance moment, as it eclipses Facebook, Google, Amazon and the other tech darlings of the late decade. 

 

Apple had been the world’s most prosperous firm since claiming the top spot from Exxon Mobil earlier this decade. Microsoft surpassed Apple briefly a few times this week, but didn’t close on top until Friday, with a market value of $851 billion to Apple’s $847 billion. Microsoft hadn’t been at the top since the height of the dot-com boom in 2000.  

Apple’s plunge

  

Microsoft became a contender again in large part because Apple’s stock fell nearly 20 percent in November, while Microsoft hasn’t done any worse than the rest of the stock market. But the fact that it hasn’t done poorly reflects its steady focus on business customers in recent years. 

 

Microsoft lost its luster as people were shunning PCs in favor of smartphones. In 2013, PC sales plunged 10 percent to about 315 million, the worst year-to-year drop ever, according to research firms Gartner and IDC. It didn’t help that Microsoft’s effort to make PCs more like phones, Windows 8, was widely panned.  

  

But a turnaround began when the Redmond, Wash., company promoted Nadella as CEO in 2014. He succeeded Microsoft’s longtime CEO, Steve Ballmer, who initially scoffed at the notion that people would be willing to pay $500 or more for Apple’s iPhones.  

That bet paid off. Windows is now a dwindling fraction of Microsoft’s business. While the company still runs consumer-focused businesses such as Bing search and Xbox gaming, it has prioritized business-oriented services such as its Office line of email and other workplace software, as well as newer additions such as LinkedIn and Skype. But its biggest growth has happened in the cloud, particularly the cloud platform it calls Azure. Cloud computing now accounts for more than a quarter of Microsoft’s revenue, and Microsoft rivals Amazon as a leading provider of such services. 

 

Wedbush analyst Dan Ives said Azure is still in its early days, meaning there’s plenty of room for growth, especially considering the company’s large customer base for Office and other products. 

 

“While the tech carnage seen over the last month has been brutal, shares of [Microsoft] continue to hold up like the Rock of Gibraltar,” he said. 

 

Being less reliant on consumer demand helped shield Microsoft from holiday season turbulence and U.S.-China trade war jitters affecting Apple and other tech companies. 

 

President Donald Trump amplified those tariff concerns when he told The Wall Street Journal in a story published late Monday that new tariffs could affect iPhones and laptops imported from China. 

 

The iPhone maker had already seen its stock fall after reporting a mixed bag of quarterly results in early November amid fears about how the technology industry will fare in the face of such threats as rising interest rates, increased government regulation and Trump’s escalating trade war with China. 

Reporting change

 

Apple also spooked investors with an unexpected decision to stop disclosing how many iPhones it sells each quarter. That move has been widely interpreted as a sign that Apple foresees further declines in iPhone sales and is trying to mask that.  

  

While smartphones caused the downturn in personal computers years ago, sales of smartphones themselves have now stalled. That’s partly because with fewer innovations from previous models, more people choose to hold on to the devices for longer periods before upgrading. 

 

Daniel Morgan, senior portfolio manager for Synovus Trust, said Microsoft is outperforming its tech rivals in part because of what it’s not. It doesn’t face as much regulatory scrutiny as advertising-hungry Google and Facebook, which have attracted controversy over their data-harvesting practices. Unlike Netflix, it’s not on a hunt for a diminishing number of international subscribers. And while Amazon also has a strong cloud business, it’s still more dependent on online retail.  

Rosenstein Calls for Tech Firms to Work With Law Enforcement

U.S. Deputy Attorney General Rod Rosenstein called on social media companies and technology firms Thursday to work with law enforcement to protect the public from cybercriminals.  

 

Speaking at a symposium on online crime, Rosenstein said that “social media platforms provide unprecedented opportunities for the free exchange of ideas. But many users do not understand that the platforms allow malicious actors, including foreign government agents, to deceive them by launching vast influence operations.” 

 

He said it was up to the companies to “place security on the same footing as novelty and convenience, and design technology accordingly.”  

 

He warned that if the technology sector failed to do so, government would have to step in.  

 

“I think the companies now do understand if they do not take it upon themselves to self-regulate — which is essentially the theme of my talk today — they will face the potential of government regulation,” he said. 

Extortion scheme

 

Rosenstein’s remarks came a day after the Justice Department charged two Iranian hackers in connection with a multimillion-dollar cybercrime and extortion scheme that targeted government agencies, cities and businesses. 

 

Rosenstein said many tech companies are willing to work with law enforcement and to prevent the use of their platforms to spread disinformation. 

 

But he said that “some technology experts castigate colleagues who engage with law enforcement to address encryption and similar challenges. Just because people are quick to criticize you does not mean that you are doing the wrong thing.” 

 

U.S. law enforcement officials have long been pushing tech companies to make it easier for them to access information on private devices such as cellphones and social media accounts. But most firms have resisted, citing privacy of the users.  

 

Rosenstein said data encryption practices were a “significant detriment to public safety.”  

 

“Improvements in the ability to investigate crime and hold perpetrators accountable must match the pace at which technology is making crimes easier to commit and more destructive,” Rosenstein said. 

With An Eye on Past Problems, Facebook Expands Local Feature

Facebook is cautiously expanding a feature that shows people local news and information, including missing-person alerts, road closures, crime reports and school announcements.

Called “Today In,” the service shows people information from their towns and cities from such sources as news outlets, government entities and community groups. Facebook launched the service in January with six cities and expanded that to 25, then more. On Wednesday, “Today In” is expanding to 400 cities in the U.S. — and a few others in Australia.

The move comes as Facebook tries to shake off its reputation as a hotbed for misinformation and elections-meddling and rather a place for communities and people to come together and stay informed.

Here are some things to know about this effort, and why it matters:

The big picture

It’s something users have asked for, the company says. Think of it as an evolution of a “trending” feature the company dropped earlier this year. That feature, which showed news articles that were popular among users, but was rife with such problems as fake news and accusations of bias.

Anthea Watson Strong, product manager for local news and community information, said her team learned from the problems with that feature.

“We feel deeply the mistakes of our foremothers and forefathers,” she said.

This time around, Facebook employees went to some of the cities they were launching in and met with users. They tried to predict problems by doing “pre-mortem” assessments, she said. That is, instead of a “post-mortem” where engineers dissect what went wrong after the fact, they tried to anticipate how people might misuse a feature — for financial gain, for example.

Facebook isn’t saying how long it has been taking this “pre-mortem” approach, though the practice isn’t unique to the company. Nonetheless, it’s a significant step given that many of Facebook’s current problems stem from its failure to foresee how bad actors might co-opt the service.

Facebook also hopes the feature’s slow rollout will prevent problems.

How it works

To find out if “Today In” is available in your city or town, tap the “menu” icon with the three horizontal lines. Then scroll down until you see it. If you want, you can choose to see the local updates directly in your news feed.

For now, the company is offering this only in small and mid-sized cities such as Conroe, Texas, Morgantown, West Virginia, and Santa Fe, New Mexico. Large cities such as New York or Los Angeles have added challenges, such as an abundance of news and information, and may need to be broken up into smaller neighborhoods.

The posts in “Today In” are curated by artificial intelligence; there is no human involvement. The service aggregates posts from the Facebook pages for news organizations, government agencies and community groups like dog shelters. For this reason, a kid couldn’t declare a snow day, because “Today In” relies on the school’s official page. Discussion posts from local Facebook groups may also be included.

For now, the information is tailored only by geography, but this might change. A person with no kids, for example, might not want to see updates from schools.

Safeguards?

Facebook uses software filters to weed out objectionable content, just as it does on people’s regular news feed. But the filters are turned up for “Today In.” If a good friend posts something a bit objectionable, you are still likely to see it because Facebook takes your friendship into account. But “Today In” posts aren’t coming from your friends, so Facebook is more likely to keep it out.

 

 

Porsche Shows off New Edition of Mainstay 911 Sports Car

Porsche says its future is in electric cars but for now it is rolling out a more powerful version of its internal combustion mainstay, the sleek 911 sports car.

Stuttgart-based Porsche, part of Volkswagen, is to show off the eighth version of its brand-defining model at the Los Angeles Auto Show.

 

The new 911 doesn’t look much different than earlier editions of the car. The new one has bigger wheel housings and a slightly wider body but the same long hood, sloping roof and prominent headlights that have marked successive versions since 1963.

 

The company said in a news release Wednesday that the new 911 Carrera S and 4S have flat six-cylinder turbocharged engines putting out 443 horsepower, 23 horsepower more than the predecessor. The Carrera S has a top speed of 191 mph and accelerates from zero to 60 mph (96.5 kph) in 3.5 seconds.

 

The rear-drive 2020 Carrera S has a base price of $113,200 and the 4S all-wheel drive version starts at $120,600, not including a $1,050 delivery fee. They can be ordered now and will reach dealers in summer 2019.

 

Porsche boss Oliver Blume says that the 911 remains “the core of our brand, we are making it even more emotional.”

 

Blume says nonetheless by 2025 about half of all new Porsche cars and SUVs will have electric motors, whether they are all-electric or hybrids combining batteries with internal combustion engines.

 

He was quoted by the Welt am Sonntag newspaper as saying that the company would be ready for a world in which some cities and countries are talking about banning internal combustion cars in coming decades. “It’s clear, the future belongs to electric mobility,” he said.

 

The company is developing an all-electric sports car, the Taycan, that would compete with sports car offerings by Tesla, BMW and others.

 

 

 

US Charges 2 Iranians in First Online Ransom Case

In the first case of its kind, the U.S. Justice Department announced charges Wednesday against two Iranian hackers for allegedly launching so-called ransomware on the computer networks of U.S. municipalities, hospitals and other public institutions and extorting millions of dollars.

Ransomware is a type of malware used by cybercriminals to lock down computers and extort money from their users in exchange for providing the keys to unlock them. Once used primarily against individuals, ransomware has been increasingly employed in cyberattacks on businesses.

Faramarz Shahi Savandi, 34, and Mohammad Mehdi Shah Mansouri, 27, are accused of creating the SamSam Ransomware in December 2015 and installing it on the computer networks of more than 230 public and private entities in the United States and Canada, according to a 26-page indictment unsealed Wednesday.

With the targeted computer users unable to access their data, Savandi and Mansouri, operating out of Iran, would then demand a ransom payment made in the form of the virtual currency bitcoin in exchange for decryption keys for the encrypted data.

According to the indictment, the two Iranians received more than $6 million in cryptocurrencies from their victims which they converted into Iranian currency, or rial, using Iran-based bitcoin exchanges. About half of the infiltrated entities refused to make a ransom payment and suffered over $30 million in lost data, according to the indictment.

The victims included the cities of Atlanta, Newark and San Diego, the Colorado Department of Transportation, the University of Calgary in Calgary, Canada, and six U.S. public health care-related entities.

Deputy Attorney General Rod Rosenstein announced the six-count indictment at a press conference in Washington.

“Every sector of our economy is a target of malicious cyberactivity,” Rosenstein said. “But the events described in this indictment highlight the urgent need for municipalities, public utilities, health care institutions, universities, and other public organizations to enhance their cybersecurity.”

The two indicted Iranians remain at large and have been placed on the FBI’s wanted list. They’re charged with one count of conspiracy to commit wire fraud and two counts of intentional damage to a protected computer, among other related crimes.

The indictment marks the first time the Justice Department has brought charges against cybercriminals involved in a ransomware and extortion scheme, according to Rosenstein.  

Ransomware has grown in sophistication and distribution in recent years. According to a report by the cybersecurity firm Bitdefender, ransomware payments were expected to reach a record $2 billion in 2017.

‘Trend’ from Iran

The charges are also the latest in a string of indictments brought against Iranian hackers and cybercriminals in recent months. In March, prosecutors charged nine Iranian hackers with penetrating the computer networks of hundreds of American and foreign universities and other institutions to steal valuable research material. Unlike some of the previously indicted Iranian hackers, however, Savandi and Mansouri are not believed to have ties to Tehran.

“The actions highlighted today, which represent a continuing trend of cybercriminal activity emanating from Iran, were particularly threatening, as they targeted public safety institutions, including U.S. hospital systems and governmental entities,” said Amy Hess, executive assistant director of the FBI. “As cyberthreats evolve and cybercriminals develop more sophisticated techniques, so do we.”

The 35-month computer hacking scheme led by Savandi and Mansouri began in January 2016 with an attack on an unidentified business in Mercer County, New Jersey, and moved on to public entities such as the City of Newark and health care providers such as Kansas Heart Hospital in Wichita, Kansas. 

Assistant Attorney General Brian A. Benczkowski said the Iranian hackers carefully chose their targets. A few days prior to attacking the network of Kansas Heart Hospital, for example, they “conducted online searches concerning the hospital and accessed its website,” he said.

Kimberly Goody, manager of cybercrime analysis at cybersecurity firm FireEye, said the hackers probably chose to target health care and government organizations because “they provide critical services and believed their likelihood of paying was higher as a result.”

The indictment does not name the entities that paid a ransom.

Jeff Seldin contributed to this report.

Seoul’s Telecom Outage Highlights Need for Redundancy in Connected World

Residents in Seoul discovered how fragile their telecommunications system was this past weekend when a fire disrupted service for millions. The government and the provider vowed to implement changes to avoid a repeat of the event, but the system failure demonstrated a need for greater redundancy and preparation for future natural and technological disasters.

The fire affected customers of KT, the nation’s second largest telecommunications company. They found themselves unable to make calls, access the internet, complete ATM or credit card transactions, and watch television. Local media also reported an elderly woman died when she fell ill and her husband wasn’t able to reach emergency services during the service outage.

Lee Manjong, chairman of the Korean Association for Terrorism Studies and professor of the department of Law & Police at Howon University, told VOA that while it is nearly impossible to prevent widespread system outages, certain steps can be taken to avoid catastrophic failures.

“It is necessary to split the public safety net (fire, medical, and police emergency services) and make system backups (redundancies) compulsory,” he said.

Following the blaze, South Korea’s minister of Science and ICT (Information, Communications, and Technology), You Young-min, spoke to the CEOs of South Korea’s three major communication companies (SK Telecom, KT, and LG U+) to discuss their backup plans.

You said the companies “need to swiftly change their contract clauses on compensation issues and also need to come up with plans that would reroute traffic if such accidents, which shouldn’t happen again, happen.”

When asked for specifics on what steps the government planned on taking to prevent a similar event in the future, the ministry declined to offer specifics, stating that responsible parties would prepare fire prevention measures this year and set up a task force to implement recommendations.

Local broadcaster MBC also reported that telecommunication companies and the government held a 20-minute virtual natural disaster drill in May to simulate a system outage, but the simulation proved to be ineffective in real-world situations.

Interconnected services

The Seoul fire and resulting system outage demonstrated how interconnected services are in the 21st century.

“If a network is down, then it affects other networks such as finance, power, energy, and railway,” said Lee.

He said there are multiple ways the electronic infrastructure can be paralyzed. This includes physical damage, natural disasters, and cyber attacks. However, Lee notes disruptions caused by cyber incursions are more effective.

“Cyber attacks are more efficient as they can take place without access to the physical location of the target,” he said.

According to Lee, this is because the government is able to secure physical sites, so cyber-warriors choose “soft targets” connected through the Internet.

A distributed denial-of-service (DDos) attack could be launched from the Internet and attack telecommunication networks. This type of attack floods a computer network with incoming data packets and overwhelms the system, effectively shutting it down. Lee said such attacks on telecom systems could wreak havoc and paralyze communication.

He cautioned that a successful cyber attack on South Korea’s technological infrastructure could yield “unimaginable” damage because of the country’s reliance on networked services.

Fire and recovery

Saturday’s fire struck an underground facility of KT, destroying telephone lines and fiber optic cables, taking about 10 hours to suppress. 

Seoul authorities rate facilities on a scale from A to D. Buildings rated A, B, or C must have adequate fire prevention systems installed, while those receiving a D rating do not.

KT’s Ahyeon facility, where the fire took place, was one of 27 D-rated facilities belonging to the company. As such, fire scene investigators found there were no fire detectors or sprinkler system installed at the Ahyeon facility and only a single fire extinguisher present.

South Korea’s other telecommunication carriers utilize over 800 similar facilities throughout the country, none of which are required to have fire detection equipment or sprinklers installed.

Lee said government regulations must be altered to bridge the gaps to ensure that such facilities are required to have redundant services elsewhere in the event of a natural disaster or cyber attack.

Estimates are the blaze resulted in about $7 million in property damage. KT has announced it would compensate affected customers by awarding them a free month of service for their inconvenience. KB security expects that amount to total about $27.5 million.

In a text message to customers, KT said it was “deeply sorry for the inconvenience. We will adopt preventive measures such as safety inspections… to avoid a recurrence.”

Seoul officials told VOA the cause of the fire remains unknown and the investigation to determine its source could last a month.

Lee Ju-hyun contributed to this report.

Google Blocks Gender-Based Pronouns From New AI Tool

Alphabet Inc’s Google in May introduced a slick feature for Gmail that automatically completes sentences for users as they type. Tap out “I love” and Gmail might propose “you” or “it.” But users are out of luck if the object of their affection is “him” or “her.”

Google’s technology will not suggest gender-based pronouns because the risk is too high that its “Smart Compose” technology might predict someone’s sex or gender identity incorrectly and offend users, product leaders revealed to Reuters in interviews.

Gmail product manager Paul Lambert said a company research scientist discovered the problem in January when he typed “I am meeting an investor next week,” and Smart Compose suggested a possible follow-up question: “Do you want to meet him?” instead of “her.”

Consumers have become accustomed to embarrassing gaffes from autocorrect on smartphones. But Google refused to take chances at a time when gender issues are reshaping politics and society, and critics are scrutinizing potential biases in artificial intelligence like never before.

“Not all ‘screw ups’ are equal,” Lambert said. Gender is a “a big, big thing” to get wrong.

Getting Smart Compose right could be good for business. Demonstrating that Google understands the nuances of AI better than competitors is part of the company’s strategy to build affinity for its brand and attract customers to its AI-powered cloud computing tools, advertising services and hardware.

Gmail has 1.5 billion users, and Lambert said Smart Compose assists on 11 percent of messages worldwide sent from Gmail.com, where the feature first launched.

Smart Compose is an example of what AI developers call natural language generation (NLG), in which computers learn to write sentences by studying patterns and relationships between words in literature, emails and web pages.

A system shown billions of human sentences becomes adept at completing common phrases but is limited by generalities. Men have long dominated fields such as finance and science, for example, so the technology would conclude from the data that an investor or engineer is “he” or “him.” The issue trips up nearly every major tech company.

Lambert said the Smart Compose team of about 15 engineers and designers tried several workarounds, but none proved bias-free or worthwhile. They decided the best solution was the strictest one: Limit coverage. The gendered pronoun ban affects fewer than 1 percent of cases where Smart Compose would propose something, Lambert said.

“The only reliable technique we have is to be conservative,” said Prabhakar Raghavan, who oversaw engineering of Gmail and other services until a recent promotion.

New policy

Google’s decision to play it safe on gender follows some high-profile embarrassments for the company’s predictive technologies.

The company apologized in 2015 when the image recognition feature of its photo service labeled a black couple as gorillas. In 2016, Google altered its search engine’s autocomplete function after it suggested the anti-Semitic query “are jews evil” when users sought information about Jews.

Google has banned expletives and racial slurs from its predictive technologies, as well as mentions of its business rivals or tragic events.

The company’s new policy banning gendered pronouns also affected the list of possible responses in Google’s Smart Reply. That service allow users to respond instantly to text messages and emails with short phrases such as “sounds good.”

Google uses tests developed by its AI ethics team to uncover new biases. A spam and abuse team pokes at systems, trying to find “juicy” gaffes by thinking as hackers or journalists might, Lambert said.

Workers outside the United States look for local cultural issues. Smart Compose will soon work in four other languages: Spanish, Portuguese, Italian and French.

“You need a lot of human oversight,” said engineering leader Raghavan, because “in each language, the net of inappropriateness has to cover something different.”

Wispread challenge

Google is not the only tech company wrestling with the gender-based pronoun problem. Agolo, a New York startup that has received investment from Thomson Reuters, uses AI to summarize business documents.

Its technology cannot reliably determine in some documents which pronoun goes with which name. So the summary pulls several sentences to give users more context, said Mohamed AlTantawy, Agolo’s chief technology officer.

He said longer copy is better than missing details. “The smallest mistakes will make people lose confidence,” AlTantawy said. “People want 100 percent correct.”

Yet, imperfections remain. Predictive keyboard tools developed by Google and Apple Inc propose the gendered “policeman” to complete “police” and “salesman” for “sales.”

Type the neutral Turkish phrase “one is a soldier” into Google Translate and it spits out “he’s a soldier” in English. So do translation tools from Alibaba and Microsoft Corp. Amazon.com Inc opts for “she” for the same phrase on its translation service for cloud computing customers.

AI experts have called on the companies to display a disclaimer and multiple possible translations.

Microsoft’s LinkedIn said it avoids gendered pronouns in its year-old predictive messaging tool, Smart Replies, to ward off potential blunders.

Alibaba and Amazon did not respond to requests to comment. Warnings and limitations like those in Smart Compose remain the most-used countermeasures in complex systems, said John Hegele, integration engineer at Durham, North Carolina-based Automated Insights Inc, which generates news articles from statistics.

“The end goal is a fully machine-generated system where it magically knows what to write,” Hegele said. “There’s been a ton of advances made but we’re not there yet.”

Lawmakers Criticize Facebook’s Zuckerberg for UK Parliament No-Show

Facebook came under fire on Tuesday from lawmakers from several countries who accused the firm of undermining democratic institutions and lambasted chief executive Mark Zuckerberg for not answering questions on the matter.

Facebook is being investigated by lawmakers in Britain after consultancy Cambridge Analytica, which worked on Donald Trump’s presidential campaign, obtained the personal data of 87 million Facebook users from a researcher, drawing attention to the use of data analytics in politics.

Concerns over the social media giant’s practices, the role of political adverts and possible interference in the 2016 Brexit vote and U.S. elections are among the topics being investigated by British and European regulators.

While Facebook says it complies with EU data protection laws, a special hearing of lawmakers from several countries around the world in London criticized Zuckerberg for declining to appear himself to answer questions on the topic.

“We’ve never seen anything quite like Facebook, where, while we were playing on our phones and apps, our democratic institutions… seem to have been upended by frat-boy billionaires from California,” Canadian lawmaker Charlie Angus said.

“So Mr. Zuckerberg’s decision not to appear here at Westminster [Britain’s parliament] to me speaks volumes.”

Richard Allan, the vice president of policy solutions at Facebook who appeared in Zuckerberg’s stead, admitted Facebook had made mistakes but said it had accepted the need to comply with data rules.

“I’m not going to disagree with you that we’ve damaged public trust through some of the actions we’ve taken,” Allan told the hearing.

Facebook has faced a barrage of criticism from users and lawmakers after it said last year that Russian agents used its platform to spread disinformation before and after the 2016 U.S. presidential election, an accusation Moscow denies.

Allan repeatedly declined to give an example of a person or app banned from Facebook for misuse of data, aside from the GSR app which gathered data in the Cambridge Analytica scandal.

Legal documents reviewed by Reuters show how the investigation by British lawmakers has led them to seize documents relating to Facebook from app developer Six4Three, which is in a legal dispute with Facebook.

Damian Collins, chair of the culture committee which convened the hearing, said he would not release those documents on Tuesday as he was not in a position to do so, although he has said previously the committee has the legal power to.

App Shows US, Canadian Commuters the Cleanest, Greenest Route Home

A mobile application launched in dozens of U.S. and Canadian cities on Monday measures the planet-warming greenhouse gas emissions of inner-city travel, its creators said, letting concerned commuters map their so-called carbon footprints.

Mapping app Cowlines can suggest the most efficient route as well which uses the least fuel, combining modes of transport such as bicycling and walking, within cities, its Vancouver, Canada-based creators said.

Some two-thirds of the world’s population is expected to settle in urban areas by 2050, according to the United Nations.

The trend presents an environmental challenge, given that the world’s cities account for the bulk of greenhouse gas emissions.

Not only will the app measure a trip’s emissions and suggest alternatives, it will provide the data to cities and urban planners working on systems from subway lines to bike-sharing programs, said Jonathan Whitworth, chief strategy officer at Greenlines Technology, which created the app.

“As you would imagine here in Canada, especially Western Canada, most people are driven by the environmental side of it,” Whitworth told the Thomson Reuters Foundation.

The app aims to encourage users in 62 U.S. and Canadian cities to use cleaner modes of transportation, from mass transit to walking or biking, he said.

In the United States, mass transit accounts for less than 2 percent of passenger miles traveled, according to Daniel Sperling, founding director of the Institute of Transportation Studies at the University of California, Davis.

“People are starved for good information and data for good travel choices,” said Sperling.

The app’s suggested route is a cowline – city planner parlance for the fastest route, said Whitworth. In pastoral settings, a cowline is the most direct path cattle use to reach grazing grounds.

The app shows users after a trip how many kilograms of carbon-dioxide equivalent emissions they are responsible for, Whitworth said.

While other apps such as Changers CO2 Fit track users’ carbon footprints, Cowlines claims its methodology, certified by the International Organization for Standardization, is most accurate, he said.

Whitworth said the company also plans to sell the data it collects.

Apple to Tutor Women in Tech in Bid to Diversify Industry

Apple is launching a new program designed to address the technology industry’s scarcity of women in executive and computer programming jobs.

 

Under the initiative announced Monday, female entrepreneurs and programmers will attend two-week tutorial sessions at the company’s Cupertino, California, headquarters.

 

The camps will be held every three months beginning in January. For each round, Apple will accept up to 20 app makers founded or led by a woman. The app maker must have at least one female programmer in its ranks to qualify. Apple will cover travel expenses for up to three workers from each accepted company.

Like other major tech companies, Apple has been trying to lessen its dependence on men in high-paying programming jobs. Women filled just 23 percent of Apple’s technology jobs in 2017, according to the company’s latest breakdown. That’s only a slight improvement from 20 percent in 2014, despite the company’s pledge to diversify its workforce.

 

The idea behind the new camp is to keep women interested and immersed in the field, said Esther Hare, Apple’s senior director of world developer marketing.

 

It’s not clear how much of a dent Apple’s new program will have. Google also offers training for girls and women pursuing careers in technology, but its program hasn’t done much to diversify the workforce so far. Women were hired for nearly 25 percent of Google’s technology jobs in 2017, up from nearly 21 percent in 2014, according to the company.

Apple and other technology companies maintain that one of the main reasons so many men are on their payrolls is because women traditionally haven’t specialized in the mathematical and science curriculum needed to program.

 

But industry critics have accused the technology companies of discriminating again women through a male-dominated hierarchy that has ruled the industry for decades.

 

Apple isn’t saying how much it is spending on the initiative, though beyond travel expenses, the company will be relying on its current employees to lead the sessions.

‘Water from Air’ Quenches Threatened Girls’ Thirst in Arid Kenya

In this arid part of northern Kenya, water can be hard to find, particularly in the dry season.

But a center run by the Samburu Girls Foundation – which rescues girls facing early marriage and female genital mutilation – has a new high-tech source of it.

Since June, the center, which has rescued more than 1,200 girls, has used panels that catch water vapor in the air and condense it to supply their drinking water.

“We used to have difficulties in accessing water and during a drought we could either go to the river to fetch water or ask our neighbors to give us water,” said Jecinta Lerle, a pupil and vice president of students at the center’s school.

But now, officials at the school say, the girls no longer have to travel for water – including into communities they have left, which could put them at risk.

“The girls can now have more time to study since there is enough fresh water to go round and there is no need to walk long distances to search for water,” said Lotan Salapei, the foundation’s head of partnerships.

Girls formerly trekked up to five kilometers a day in search of clean water during particularly dry periods, sometimes bringing them into contact with members of their former community, Salapei said.

The center, given 40 of the water vapor-condensing panels by the company that builds them, now creates about 400 liters of clean water each day, enough to provide all the drinking water the center needs.

The “hydropanels,” produced by U.S.-based technology company Zero Mass Water, pull water vapor from the air and condense it into a reservoir.

Cody Friesen, Zero Mass Water’s founder and chief executive officer, said the company’s project with the Samburu Girls Foundation was an example of its efforts to make sure the technology “is accessible to people across the socioeconomic spectrum.”

The panels provided to the Samburu Girls Foundation cost about $1,500 each, foundation officials said.

Zero Mass Water has so far sold or donated the panels in 16 countries, including South Africa.

Saving trees

George Sirro, a solar engineer with Solatrend Ltd., a Nairobi-based solar equipment company, said such devices can be a huge help not only to people but in slowing deforestation that is driving climate change and worsening drought in Kenya.

Often people with inadequate water cut trees to boil the water they do find to make it safe, he said, driving deforestation.

Philip Lerno a senior chief in Loosuk, where the girls’ foundation is located, said he hopes to see the panels more widely used in the surrounding community, which usually experiences long dry periods each year.

He said community members, having seen the devices in use at the school, hope to acquire some of their own if they can find the funding.

US Top Court Open to Antitrust Suit Against Apple App Store

U.S. Supreme Court justices on Monday appeared open to letting a lawsuit proceed against Apple Inc that accused it of breaking federal antitrust laws by monopolizing the market for iPhone software applications and causing consumers to overpay.

The nine justices heard an hour of arguments in an appeal by the Cupertino, California-based technology company of a lower court’s decision to revive the proposed class-action lawsuit filed in federal court in California in 2011 by a group of iPhone users seeking monetary damages.

The lawsuit said Apple violated federal antitrust laws by requiring apps to be sold through the company’s App Store and then taking a 30 percent commission from the purchases.

The case may hinge on how the justices will apply one of its past decisions to the claims against Apple. That 1977 ruling limited damages for anti-competitive conduct to those directly overcharged rather than indirect victims who paid an overcharge passed on by others.

Apple was backed by Republican President Donald Trump’s administration. Some liberal and conservative justices sharply questioned an attorney for Apple and U.S. Solicitor General Noel Francisco, who argued on behalf of the administration on the company’s side, over their argument that the consumers were not directly affected by purchasing the apps from Apple.

Liberal Justice Elena Kagan, explaining how an App Store purchase is handled, said, “From my perspective, I’ve engaged in a one-step transaction with Apple.”

Some conservative justices, including Trump appointee Neil Gorsuch, wondered whether the 1977 ruling was still valid in a modern marketplace.

Conservative Chief Justice John Roberts’ questions suggested he agreed with Apple’s position. Roberts expressed concern that, for a single price increase, Apple could be held liable by both consumers and App developers.

The iPhone users, including lead plaintiff Robert Pepper of Chicago, have argued that Apple’s monopoly leads to inflated prices compared to if apps were available from other sources.

Though developers set the prices of their apps, Apple collects the payments from iPhone users, keeping a 30 percent commission on each purchase. One area of dispute in the case is whether app developers recoup the cost of that commission by passing it on to consumers. Developers earned more than $26 billion in 2017, a 30 percent increase over 2016, according to Apple.

Closing courthouse doors

Apple, also backed by the U.S. Chamber of Commerce business group, told the justices in legal papers that siding with the iPhone users who filed the lawsuit would threaten the burgeoning field of e-commerce, which generates hundreds of billions of dollars annually in U.S. retail sales.

The plaintiffs, as well as antitrust watchdog groups, said closing courthouse doors to those who buy end products would undermine antitrust enforcement and allow monopolistic behavior to expand unchecked. The plaintiffs were backed by 30 state attorneys general, including from Texas, California and New York.

The plaintiffs said app developers would be unlikely to sue Apple, which controls the service where they make money, leaving no one to challenge anti-competitive conduct.

The company sought to have the antitrust claims dismissed, arguing that the plaintiffs lacked the required legal standing to bring the lawsuit. A federal judge in Oakland, California threw out the suit, saying the consumers were not direct purchasers because the higher fees they paid were passed on to them by the developers.

But the San Francisco-based 9th U.S. Circuit Court of Appeals revived the case last year, finding that Apple was a distributor that sold iPhone apps directly to consumers.

More Than 200 Chinese Arrested in Cambodia for Online Scams

Police in Cambodia have arrested more than 200 Chinese citizens accused of defrauding people in China over the internet.

Gen. Y Sok Khy, director of the Interior Ministry’s Department of Counter-Terrorism and Transnational Crime, said 36 women were among the 235 Chinese arrested Monday in three different villages in Takeo province, south of the capital, Phnom Penh.

Online scams by Chinese gangs that operate from foreign countries and target mainland Chinese are common throughout Southeast Asia and have been found as far away as Kenya and Spain. Cambodia has arrested and sent at least 1,000 Chinese and Taiwanese residents allegedly involved in such schemes to China since 2012.

The scams are carried out by making phone calls over the internet and employing deception, threats and blackmail against the victims.