YCLOAK

Apple made history Thursday when it became the first publicly listed U.S. company to be valued at $1 trillion.

The tech giant’s share price climbed well over 2 percent in mid-session trading, boosting it about 9 percent higher since Tuesday, when it announced better-than-expected second-quarter earnings and a buyback of $20 billion worth of its own shares.

The Silicon Valley company’s stock has skyrocketed more than 50,000 percent since it went public in 1980, greatly exceeding the S&P 500’s impressive 2,000 percent gain during the same period.

Apple’s success was fueled in large part by its iPhone, which transformed it from a niche player in the burgeoning personal computer sector into a global technological powerhouse.

The company was co-founded by the late Steve Jobs, a product innovator who helped prevent the company’s collapse in the late 1990s.

As the company’s market value climbed over the decades, it revolutionized how consumers communicate with each other and how companies conduct business on a daily basis.

 
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One day after Facebook shut down 32 fake social media accounts that spewed politically divisive messages, U.S. lawmakers were warned that Russian efforts to confuse and polarize the American people are as robust and pernicious as ever. VOA Senate correspondent Michael Bowman reports both Republican and Democratic lawmakers are concerned.
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The U.S. Congress is sending President Donald Trump legislation that would force technology companies to disclose if they allowed countries like China and Russia to examine the inner workings of software sold to the U.S. military.       

The legislation, part of the Pentagon’s spending bill, was drafted after a Reuters investigation last year found software makers allowed a Russian defense agency to hunt for vulnerabilities in software used by some agencies of the U.S. government, including the Pentagon and intelligence services.      

The final version of the bill was approved by the Senate in a 87-10 vote on Wednesday after passing the House last week. The spending bill is expected to be signed into law by Trump.      

Security experts said allowing Russian authorities to probe the internal workings of software, known as source code, could help Moscow discover vulnerabilities they could exploit to more easily attack U.S. government systems.      

The new rules were drafted by Democratic Senator Jeanne Shaheen of New Hampshire.

“This disclosure mandate is the first of its kind, and is necessary to close a critical security gap in our federal acquisition process,” Shaheen said in an emailed statement.

“The Department of Defense and other federal agencies must be aware of foreign source code exposure and other risky business practices that can make our national security systems vulnerable to adversaries,” she said.   

Disclosure + database   

The law would force U.S. and foreign technology companies to reveal to the Pentagon if they allowed cyber adversaries, like China or Russia, to probe software sold to the U.S. military.      

Companies would be required to address any security risks posed by the foreign source code reviews to the satisfaction of the Pentagon, or lose the contract.      

The legislation also creates a database, searchable by other government agencies, of which software was examined by foreign states that the Pentagon considers a cyber security risk.      

It makes the database available to public records requests, an unusual step for a system likely to include proprietary company secrets.       

Tommy Ross, a senior director for policy at the industry group The Software Alliance, said software companies had concerns that such legislation could force companies to choose between selling to the U.S. and foreign markets.

“We are seeing a worrying trend globally where companies are looking at cyber threats and deciding the best way to mitigate risk is to hunker down and close down to the outside world,” Ross told Reuters last week.

A Pentagon spokeswoman declined to comment on the legislation.      

Source code revealed

In order to sell in the Russian market, technology companies including Hewlett Packard Enterprise Co, SAP SE and McAfee have allowed a Russian defense agency to scour software source code for vulnerabilities, the Reuters investigation found last year.      

In many cases, Reuters found that the software companies had not informed U.S. agencies that Russian authorities had been allowed to conduct the source code reviews. In most cases, the U.S. military does not require comparable source code reviews before it buys software, procurement experts have told Reuters.

The companies had previously said the source code reviews were conducted by the Russians in company-controlled facilities, where the reviewer could not copy or alter the software. The companies said those steps ensured the process did not jeopardize the safety of their products.      

McAfee announced last year that it no longer allows government source code reviews. Hewlett Packard Enterprise has said none of its current software has gone through the process.      

SAP did not respond to requests for comment on the legislation. HPE and McAfee spokespeople declined further comment.    
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A little-known dispute over 3D-printed guns has morphed into a national legal debate in the last week, drawing attention to a technology that seems a bit of sci-fi fantasy and — to gun-control advocates — a dangerous way for criminals to get their hands on firearms that are easy to conceal and tough to detect.

The gun industry calls the outcry an overreaction that preys on unwarranted fears about a firearm that can barely shoot a round or two without disintegrating.

It also raises a host of constitutional questions involving First Amendment protections for free speech and Second Amendment rights to own guns.

Here are some questions and answers about the debate.

Q. What is behind the dispute?

A. Cody Wilson, the founder of Texas-based Defense Distributed, first posted downloadable blueprints for a handgun called the Liberator that could be made using a 3D printer in 2013. Within days it had been downloaded about 100,000 times until the State Department ordered him to cease, contending it violated federal export laws since some of the blueprints were saved by people outside the United States.

The dispute between Wilson and the federal government went on for years until this past June when they reached a settlement that paved the way for Wilson to resume posting the designs.

The State Department decision came amid an obscure administrative change — begun under the Obama administration — in how the weapons are regulated and administered. Military grade weapons remain under the purview of the State Department, while commercially available firearms fall under the Commerce Department. The settlement with Wilson determined that 3D-printed firearms are akin to more traditional firearms that aren’t subject to State Department regulations.

Wilson resumed sharing his blueprints for the gun the day the settlement went into effect last week.

​Q. Why does Wilson want the authority to post the designs on his website?

A. Wilson calls it a First Amendment issue. He believes the First Amendment gives him a constitutional right to disseminate the code to make a gun with a 3D printer.

“This is a very, very, very easy First Amendment question that I think people might be hesitant to accept because it involves guns and people don’t like guns,” said his lawyer, Josh Blackman.

And Wilson has a strong legal claim that distribution of the information is different than actually making an all-plastic firearm.

While it is a violation of the federal Undetectable Firearms Act to make, sell or possess a firearm that can’t be detected by magnetometers or metal detectors, what Wilson is doing is simply providing the information on how to make such a firearm.

“What Defense Distributed was doing was not making and then shipping the weapons overseas,” said Chuck James, a former federal prosecutor who is now a private lawyer with the Washington, D.C.-area firm of Williams Mullen. “They were making the data available on the web where it would be available to someone overseas.”

​Q. What kind of gun designs are available on the website?

A. Defense Distributed shows a variety of designs. The code for a 3D-printed gun is for what he calls the Liberator, which gets its name from a pistol American forces used during World War II.

His design includes a metal firing pin and a metal block. His site also includes blueprints to make various AR-platform long guns and some other handguns using more traditional means and materials.

Q. Are 3D-printed guns legal?

A. In 1988, the U.S. enacted the Undetectable Firearms Act, making it illegal to manufacture, sell or possess a firearm that couldn’t be detected by a metal detector. That law has been renewed several times by Congress and remains in effect.

If 3D-printed guns contain enough metal to be flagged by a metal detector, they are considered legal under U.S. law.

Gun-control advocates argue that the risks are too great to allow 3D-printed guns because even if they’re designed to include metal, it’s too easy for someone to not include those pieces or to remove them to skirt detection.

“It’s an absurdity. You can take the piece of metal out and put it back in at your own whims and you can take it out and walk through a metal detector undetected,” said Jonas Oransky, legal director for Everytown for Gun Safety.

Q. How well do 3D-printed guns work?

A. Gun experts and enthusiasts recoil at the suggestion that a 3D-printed gun is a true threat, calling the firearms mere novelties.

Unlike traditional firearms that can fire thousands of rounds in their lifetime, 3D-printed guns are notorious for usually lasting only a few rounds before they fall apart. They don’t have magazines that allow the usual nine or 15 rounds to be carried; instead, they usually hold a bullet or two and then must be manually loaded afterward. And they’re not usually very accurate either.

A video posted of a test by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives in 2013 showed one of the guns produced from Wilson’s design — the Liberator — disintegrating into pieces after a single round was fired.

“People have got this Star Trek view” of the guns being futuristic marvels, said Chris Knox, communications director for The Firearms Coalition, a gun-rights group. “We’re not talking about exotic technology.”

Others are quick to point out that normal guns are readily available in the U.S. with little regulation, making 3D-printed guns a major hassle compared with regular weapons.

Q. What’s the status of the debate?

A. A federal judge on Tuesday issued a temporary restraining order blocking Wilson from continuing to post the designs on his site. A hearing is to be held in that case next week.

In the meantime, President Donald Trump criticized the Department of Justice advising the State Department to reach a settlement with Wilson without first consulting with him.

Wilson’s website currently displays a banner asking people to help “to uncensor the site.” Clicking a link directs the person to a page to pay membership dues ranging from $5 a month to $1,000 for a lifetime.
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3-D printers are being used extensively in industry, research, teaching and hobbies, printing with metal, plastic and even edible material such as dough. Researchers at Carnegie Mellon University in Pittsburgh are experimenting with another kind of 3-D printing — with yarn. VOA’s George Putic reports.
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Google declined Wednesday to confirm reports that it plans to launch a censored version of its search engine in China, where its main search platform was previously blocked, along with its YouTube video platform.

“We provide a number of mobile apps in China … [to] help Chinese developers, and have made significant investments in Chinese companies like JD.com. But we don’t comment on speculation about future plans,” a Google spokesperson told VOA in a statement.

The first report on the possible rollout came from The Intercept, and online news publication, which cited internal Google documents and people familiar with the purported plan.

The Intercept said the project, code-named Dragonfly, has been in development since last year. It said the project began to progress more quickly following a December meeting between Google CEO Sundar Pichai and a senior Chinese government official.

Search terms regarding democracy, human rights and peaceful protests will be among those blacklisted in the new search engine app, the report said. It added the search engine had already been demonstrated to Chinese government officials.

The report said a final version could be introduced within six to nine months, pending approval of Chinese officials.

China’s top internet regulator, the Cyberspace Administration of China, has not commented on the reported plans.

U.S. Senator Marco Rubio, a Florida Republican and former U.S. presidential candidate, posted on Twitter that Google should be given the “benefit of the doubt” but that the reported plans were still “very disturbing.”

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Top executives from Facebook, Twitter and Google will face lawmakers on Capitol Hill next month to explain what the social media giants are doing to combat foreign information operations.

Senate Intelligence Committee Chairman, Republican Sen. Richard Burr, and ranking Democrat, Sen. Mark Warner, made the announcement Wednesday, at the start of a hearing on how Russia and other countries and actors have been manipulating social media.

The goal of the September 5 hearing will be “to hear the plans they have in place, to press them to do more, and to work together to address this challenge,” Warner said.

“They can do better to protect our democracy,” he added. “I’m concerned that even after 18 months of study we are still only scratching the surface when it comes to Russia’s information warfare.”

Burr called the foreign information operations, like those being carried out by Russia, “an intolerable assault on the democratic foundation this republic was built on.”

“It’s also important that the American people know that these activities neither began nor ended with the 2016 elections” Burr said. He warned that activities like those identified recently by Facebook have been going beyond just social media, “creating events on our streets with real Americans unknowingly participating.”

Facebook Tuesday announced it had shut down 32 Facebook and Instagram accounts because they were “involved in coordinated inauthentic behavior,” much of it targeting left-wing American political groups.

Facebook said it was too early to say whether the accounts were being run by Russia, but an analysis by the Atlantic Council’s Digital Forensic Research Lab found signs pointing to “the Russian-speaking world.”

In a blog post, the lab noted similarities to activity by Russia’s Internet Research Agency (IRA), including “language patterns that indicate non-native English and consistent mistranslation, as well as an overwhelming focus on polarizing issues at the top of any given news cycle with content that remained emotive rather than fact-based.”

Facebook’s announcement followed a warning issued by Microsoft less than two weeks ago, which said hackers had targeted the campaigns of at least Congressional candidates in the upcoming election.

Microsoft said the phishing attacks, similar to ones employed by Russian-linked operatives to target the Republican and Democratic campaigns during the 2016 election, were thwarted.

Late last week, The Daily Beast reported one of the targets of those attacks was Missouri’s Democratic senator, Claire McCaskill, who has been highly critical of Russia.

During Wednesday’s senate hearing, a number of senators cautioned the issue is much bigger than the 2016 or 2018 elections.

“It is about the integrity of our society,” said Sen. Burr. “This is about national security.”

“It would be a mistake to think this is just about elections,” added Republican Sen. John Cornyn, noting similar techniques could be used to destroy reputations or tank stock prices.

Experts say some of that already is happening.

“On the state actor front we have seen evidence of campaigns targeting energy and agriculture,” said Renee DiResta, director of Research at New Knowledge.

“In agriculture, that’s taken the form of spreading fear about GMOs [genetically modified organisms],” she said.

“There’s a commercial dimension to this that’s underreported. There’s a lot more going on in the commercial space,” Graphika Founder and CEO John Kelly told lawmakers.

“Sometimes they’re tied, these political attacks and attack on corporations where corporations will be basically punished with falsely amplified boycott campaigns, and similar measures for doing something, which is politically not what Russia wants to see.”
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3D printers are being used extensively in industry, research, teaching and hobbies, printing with metal, plastic and even edible material such as dough. Researchers at Carnegie Mellon University, in Pittsburgh, are experimenting with another kind of 3D printing – with yarn. VOA’s George Putic reports.
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A U.S. federal judge has blocked a Texas man from putting plans on the internet showing people how to make their own plastic guns right in their homes as President Donald Trump questioned whether the action should have been approved by his administration to begin with. It’s a controversy drawing comments from states, the Senate, and President Trump himself. VOA’s Bill Gallo reports.
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How long does it take a robotic hand to learn to juggle a cube?

About 100 years, give or take.

That’s how much virtual computing time it took researchers at OpenAI, the nonprofit artificial intelligence lab funded by Elon Musk and others, to train its disembodied hand. The team paid Google $3,500 to run its software on thousands of computers simultaneously, crunching the actual time to 48 hours. After training the robot in a virtual environment, the team put it to a test in the real world.

The hand, called Dactyl, learned to move itself, the team of two dozen researchers disclosed this week. Its job is simply to adjust the cube so that one of its letters — “O,” “P,” “E,” “N,” “A” or “I” — faces upward to match a random selection.

Ken Goldberg, a University of California, Berkeley robotics professor who isn’t affiliated with the project, said OpenAI’s achievement is a big deal because it demonstrates how robots trained in a virtual environment can operate in the real world. His lab is trying something similar with a robot called Dex-Net, though its hand is simpler and the objects it manipulates are more complex.

“The key is the idea that you can make so much progress in simulation,” he said. “This is a plausible path forward, when doing physical experiments is very hard.”

Dactyl’s real-world fingers are tracked by infrared dots and cameras. In training, every simulated movement that brought the cube closer to the goal gave Dactyl a small reward. Dropping the cube caused it to feel a penalty 20 times as big.

The process is called reinforcement learning. The robot software repeats the attempts millions of times in a simulated environment, trying over and over to get the highest reward. OpenAI used roughly the same algorithm it used to beat human players in a video game, Dota 2.

In real life, a team of researchers worked about a year to get the mechanical hand to this point.

Why?

For one, the hand in a simulated environment doesn’t understand friction. So even though its real fingers are rubbery, Dactyl lacks human understanding about the best grips.

Researchers injected their simulated environment with changes to gravity, hand angle and other variables so the software learns to operate in a way that is adaptable. That helped narrow the gap between real-world results and simulated ones, which were much better.

The variations helped the hand succeed putting the right letter face up more than a dozen times in a row before dropping the cube. In simulation, the hand typically succeeded 50 times in a row before the test was stopped.

OpenAI’s goal is to develop artificial general intelligence, or machines that think and learn like humans, in a way that is safe for people and widely distributed.

Musk has warned that if AI systems are developed only by for-profit companies or powerful governments, they could one day exceed human smarts and be more dangerous than nuclear war with North Korea.
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Efforts to influence U.S. voters ahead of the 2018 midterm elections in November appear to be well underway, though private companies and government officials are hesitant to say who, exactly, is behind the recently discovered campaigns.

Facebook announced Tuesday it had shut down 32 Facebook and Instagram accounts because they were “involved in coordinated inauthentic behavior.”

Specifically, the social media company said it took down eight Facebook pages, 17 Facebook profiles, and seven Instagram accounts, the oldest of which were created in March 2017.

Facebook said the entities behind the accounts ran some 150 ads for about $11,000 on Facebook and Instagram, paid for with U.S. and Canadian currency.

“We’re still in the very early stages of our investigation and don’t have all the facts — including who may be behind this,” Facebook said in a blog post. “It’s clear that whoever set up these accounts went to much greater lengths to obscure their true identities than the Russian-based Internet Research Agency (IRA) has in the past.”

Effort to spark confrontations

At least 290,000 accounts followed the fake pages, most of which appeared to target left-wing American communities in an effort to spark confrontations with the far right, according to an analysis done by the Atlantic Council’s Digital Forensic Research Lab.

 

“They appear to have constituted an attempt by an external actor — possibly, though not certainly, in the Russian-speaking world,” the Digital Forensic Research Lab said in its own post.

It said similarities to activity by Russia’s IRA included “language patterns that indicate non-native English and consistent mistranslation, as well as an overwhelming focus on polarizing issues at the top of any given news cycle with content that remained emotive rather than fact-based.”

Facebook’s announcement came the same day top U.S. officials warned the country is now in “a crisis mode.”

“Our democracy itself is in the crosshairs,” Homeland Security Secretary Kirstjen Nielsen said at a National Cybersecurity Summit, citing Russian interference in the 2016 presidential elections.

“It is unacceptable, and it will not be tolerated,” Nielsen said. “The United States possesses a wide range of response options — some of them seen, others unseen — and we will no longer hesitate to use them to hold foreign adversaries accountable.”

Homeland Security officials said they had been in touch with Facebook about the fake accounts and applauded the move to take them down. The White House also praised Facebook’s actions.

“We applaud efforts by our private sector partners to combat an array of threats that occur in cyberspace, including malign influence,” NSC spokesman Garrett Marquis told VOA.

Nielsen, who did not comment on the Facebook announcement directly, also said officials were “dramatically ramping up” efforts to protect U.S. election systems with the help of a new Election Task Force.

She also announced the launch of a National Risk Management Center to make it easier for the government to work with private sector companies to counter threats in cyberspace.

U.S. President Donald Trump, who has at times cast doubt on findings by the U.S. intelligence community regarding Russian interference in the 2016 election, chaired a meeting of his National Security Council on election security on Friday, with the White House promising continued support to safeguard the country’s election systems.

Vice President Mike Pence, speaking Tuesday at a Homeland Security-sponsored summit, echoed that, saying, “Any attempt to interfere in our elections is an affront to our democracy, and it will not be allowed.”

Pence assured the audience that the White House did not doubt Russia’s attempts to influence U.S. elections, saying, “Gone are the days when America allows our adversaries to cyberattack us with impunity.”

“We’ve already done more than any administration in American history to preserve the integrity of the ballot box,” he added. “The American people demand and deserve the strongest possible defense, and we will give it to them.”

Hackers targeted congressional campaigns

Less than two weeks ago, Microsoft said hackers had targeted the campaigns of at least three congressional candidates in the upcoming election.

Tom Burt, Microsoft’s vice president for customer security and trust, refused to attribute the attacks, but said the hackers used tactics similar to those used by Russian operatives to target the Republican and Democratic parties during their presidential nominating conventions in 2016.

Late last week, The Daily Beast reported one of the targets of the attack was Missouri Democratic senator Claire McCaskill, who has been highly critical of Russia and is facing a tough re-election campaign.

Until recently, both U.S. government and private sector officials had said they had not been seeing the same pace of attacks or influence campaigns that they saw in the run-up to the 2016 election.

“I think we’re not seeing that same conduct,” Monika Bickert, head of Facebook’s product policy and counterterrorism, said during an appearance earlier this month at the Aspen Security Forum. “But we are watching for that activity.”

Still, many officials and analysts said it was likely just a matter of time before Russia would seek to strike again.

“I think we have been clear across the entire administration that even though we aren’t seeing this level of activity directed at elections, we continue to see Russian information operations directed at undermining our democracy,” Homeland Security undersecretary Chris Krebs said.

Facebook said it was sharing what it knows because of a connection between the “bad actors” behind the Facebook and Instagram pages and some protests that are planned next week in Washington, D.C.

Facebook also canceled an event posted by one of the accounts — a page called “Resisters” — calling for a counterprotest to a “Unite the Right” event scheduled for August in Washington, D.C.

U.S. lawmakers’ reactions

Key U.S. lawmakers applauded Facebook’s actions Tuesday, though they warned more still needs to be done.

“The goal of these operations is to sow discord, distrust and division in an attempt to undermine public faith in our institutions and our political system,” Sen. Richard Burr, chair of the Senate Intelligence Committee, said in a statement. “The Russians want a weak America.”

“Today’s announcement from Facebook demonstrates what we’ve long feared — that malicious foreign actors bearing the hallmarks of previously identified Russian influence campaigns continue to abuse and weaponize social media platforms to influence the U.S. electorate,” Rep. Adam Schiff, the top Democrat on the House Intelligence Committee, said in a statement.

“It is clear that much more work needs to be done before the midterm elections to harden our defenses, because foreign bad actors are using the exact same playbook they used in 2016,” Schiff added.
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As tech giants expand in San Francisco, homelessness and job displacement for locals continues to rise. Deana Mitchell explores one program, created by a formerly homeless man, that’s helping to merge the two worlds for local job seekers.
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Satellites and drones are driving efforts by Indian states to map informal settlements in order to speed up the process of delivering services and land titles, officials said.

The eastern state of Odisha aims to give titles to 200,000 households in urban slums and those on the outskirts of cities by the end of the year.

Officials used drones to map the settlements.

“What may have takes us years to do, we have done in a few months,” G. Mathi Vathanan, the state housing department commissioner, told the Thomson Reuters Foundation last week.

Land records across the country date back to the British colonial era, and most holdings have uncertain ownership, leading to fraud and lengthy disputes that often end in court.

Officials in Mumbai, where about 60 percent of the population lives in informal settlements, are also mapping slums with drones. Maharashtra state, where the city is located, is launching a similar exercise for rural land holdings.

In the southern city of Bengaluru, a seven-year study that recently concluded used satellite imaging and machine learning.

The study recorded about 2,000 informal settlements, compared with fewer than 600 in government records.

“Understanding human settlement patterns in rapidly urbanizing cities is important because of the stress on civic resources and public utilities,” said Nikhil Kaza, an associate professor at the University of North Carolina.

“Geospatial analysis can help identify stress zones, and allow civic authorities to focus their efforts in localized areas,” said Kaza, who analyzed the Bengaluru data.

About a third of the world’s urban population lives in informal settlements, according to United Nations data.

These settlements may account for 30 percent to 60 percent of housing in cities, yet they are generally undercounted, resulting in a lack of essential services, which can exacerbate poverty.

Identifying and monitoring settlements with traditional approaches such as door-to-door surveys is costly and time consuming. As technology gets cheaper, officials from Nairobi to Mumbai are using satellite images and drones instead.

About 65 million people live in India’s slums, according to census data, which activists say is a low estimate.

Lack of data can result in tenure insecurity, as only residents of “notified” slums – or those that are formally recognized – can receive property titles.

Lack of data also leads to poor policy because slums are “not homogenous,” said Anirudh Krishna, a professor at Duke University who led the Bengaluru study.

Some slums “are more likely to need water and sanitation facilities, while better off slums may require skills and entrepreneurship interventions,” he said.

“Lack of information on the nature and diversity of informal settlements is an important limitation in developing appropriate policies aimed at improving the lives of the urban poor.”
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America’s dream of space exploration took its first official step 60 years ago Sunday when President Dwight Eisenhower signed a law authorizing the formation of NASA – the National Aeronautics and Space Administration.

Although humanity had been staring at the stars and wondering since they were living in caves, it took the Cold War to fire man into space.

The world was stunned when the Soviet Union on October 4, 1957, launched Sputnik — the first man-made object to orbit the Earth.

The United States was humiliated at being caught short — not just technologically, but militarily.

Eisenhower ordered government scientists to not only match the Soviets in space, but beat them.

NASA and its various projects — Mercury, Gemini and Apollo — became part of the language.

Just 11 years after Eisenhower authorized NASA, American astronaut Neil Armstrong walked on the moon. Six year later, an Apollo spacecraft linked with a Soviet Soyuz in orbit, turning rivalry into friendship and cooperation.

NASA followed that triumph with the space shuttle, Mars landers and contributions to the International Space Station. A manned mission to Mars is part of NASA’s future plans.

Last month, President Donald Trump called for the formation of a “space force” to be the sixth U.S. military branch.

NASA officially celebrates its 60th anniversary on October 1 – the day the agency formally opened for business.

 
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The U.K. government should increase oversight of social media like Facebook and election campaigns to protect democracy in the digital age, a parliamentary committee has recommended in a scathing report on fake news, data misuse and interference by Russia.

The interim report by the House of Commons’ media committee, to be released Sunday, said democracy is facing a crisis because the combination of data analysis and social media allows campaigns to target voters with messages of hate without their consent.

Tech giants like Facebook, which operate in a largely unregulated environment, are complicit because they haven’t done enough to protect personal information and remove harmful content, the committee said.

“The light of transparency must be allowed to shine on their operations and they must be made responsible, and liable, for the way in which harmful and misleading content is shared on their sites,” committee Chairman Damian Collins said in a statement.

The copy of the study was leaked Friday by Dominic Cummings, director of the official campaign group backing Britain’s departure from the European Union.

Social media companies are under scrutiny worldwide following allegations that political consultant Cambridge Analytica used data from tens of millions of Facebook accounts to profile voters and help U.S. President Donald Trump’s 2016 election campaign. The committee is also investigating the impact of fake news distributed via social media sites.

Collins ripped Facebook for allowing Russian agencies to use its platform to spread disinformation and influence elections.

“I believe what we have discovered so far is the tip of the iceberg,” he said, adding that more work needed to be done to expose how fake accounts target people during elections. “The ever-increasing sophistication of these campaigns, which will soon be helped by developments in augmented reality technology, make this an urgent necessity.”

The committee recommended that the British government increase the power of the Information Commissioner’s Office to regulate social media sites, update electoral laws to reflect modern campaign techniques and increase the transparency of political advertising on social media.

Prime Minister Theresa May has pledged to address the issue in a so-called White Paper to be released in the fall. She signaled her unease last year, accusing Russia of meddling in elections and planting fake news to sow discord in the West.

The committee began its work in January 2017, interviewing 61 witnesses during 20 hearings that took on an investigatory tone not normally found in such forums in the House of Commons.

The report criticized Facebook chief Mark Zuckerberg for failing to appear before the panel and said his stand-ins were “unwilling or unable to give full answers to the committee’s questions.”

One of the committee’s recommendations is that the era of light-touch regulation for social media must end.

Social media companies can no longer avoid oversight by describing themselves as platforms, because they use technology to filter and shape the information users see. Nor are they publishers, since that model traditionally commissions and pays for content.

“We recommend that a new category of tech company is formulated, which tightens tech companies’ liabilities, and which is not necessarily either a ‘platform’ or a ‘publisher,” the report said. “We anticipate that the government will put forward these proposals in its White Paper later this year.”

The committee also said that the Information Commissioner’s Office needed more money so it could hire technical experts to be the “sheriff in the Wild West of the internet.” The funds would come from a levy on the tech companies, much in the same way as the banks pay for the upkeep of the Financial Conduct Authority.

“Our democracy is at risk, and now is the time to act, to protect our shared values and the integrity of our democratic institutions,” the committee said.
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A sleek futuristic train that travels through a special tunnel and covers the distance between Los Angeles and San Francisco in 30 minutes. This was the dream of Elon Musk, the founder of SpaceX in 2013. And every year he’s getting closer to making that dream a reality. Late July was marked by the third annual Hyperloop pod competition in Los Angeles; a competition that has once again set a new speed record. Genia Dulot has the story.
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Twitter’s share price fell more than 20 percent Friday after the social media giant reported a drop in active users. 

Twitter said it had 335 million monthly users in the second quarter of the year, which was down a million from the amount of monthly users in the first quarter of the year, and below the 339 million users Wall Street was expecting.

Twitter said that the number of monthly users could continue to fall next quarter as the company continues to ban accounts that violate its terms of service and as it makes other accounts less visible.

The company says it is putting the long-term stability of its platform above user growth. However, the move has made it more difficult for investors to value the company, as they rely on data pertaining to the platform’s potential user reach.

Shares in Twitter tumbled 20.5 percent to close at $34.12 Friday. The fall in the share price came despite Twitter’s report of higher than expected revenue. During the last quarter, Twitter posted a profit of $100 million, marking the company’s third consecutive profitable quarter.

The drop in Twitter’s share price came a day after Facebook lost 19 percent of its value. Facebook said Thursday that slower user growth in big markets and increased spending to improve privacy would hit margins for years, leading to the company’s worst trading day since it went public in 2012.

Both Twitter and Facebook have been under pressure from regulators in several countries to protect user data as well as stamp out hate speech and misinformation.
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Facebook said it had deleted hundreds of offensive posts since a law banning online hate speech came into force in Germany at the start of the year that foresees fines of up to 50 million euros ($58 million) for failure to comply.

The social network received 1,704 complaints under the law, known in Germany as NetzDG, and removed 262 posts between January and June, Richard Allan, Facebook’s vice president for global policy solutions said in a blog.

“Hate speech is not allowed on Facebook,” Allan said, adding that the network had removed posts that attacked people who were vulnerable for reasons including ethnicity, nationality, religion or sexual orientation.

Complaints covered a range of alleged offenses under Germany’s criminal code, including insult, defamation, incitement to hatred and incitement to crime, the report said. Of the posts that were blocked, the largest number was for insult.

Facebook is less popular in Germany than other European countries, with only around two in five internet users logging on each month, according to researchers eMarketer.

That’s in part due to collective memories of hate-filled propaganda that date back to Germany’s 20th century history of Nazi and Communist rule that don’t always sit well with Facebook’s broad view on freedom of speech.

Chief Executive Mark Zuckerberg faced criticism in Germany after saying in a recent interview that Facebook should not delete statements denying that the Holocaust happened — a crime in Germany. He later clarified his remarks.

Facebook has a dedicated team of 65 staff handling complaints under the NetzDG, Allan said, adding that this could be adjusted in line with the number of complaints.

From January to June, Facebook removed a total of around 2.5 million posts that violated its own community standards designed to prevent abusive behavior on the platform.

“We have taken a very careful look at the German law,” Allan wrote in his blog, which was published in German. “That’s why we are convinced that the overwhelming majority of content considered hate speech in Germany, would be removed if it were examined to see whether it violates our community standards.”

A lawmaker for Chancellor Angela Merkel’s ruling Christian Democratic Union (CDU), Tankred Schipanski, said the NetzDG law — which requires social platforms to remove offensive posts within 24 hours — was doing the job for which it was intended.

($1 = 0.8579 euros)
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The Latest on the aftermath of Facebook’s release of user growth and expectations for the company ahead (all times local):

4:50 p.m.

The 19 percent loss in Facebook’s stock chopped $119 billion off its market value.

It was the company’s worst trading day since going public in 2012, and among the biggest one-day losses of market value in U.S. stock market history.

The loss came a day after Facebook revealed that its user base and revenue grew more slowly than expected in the second quarter as it grappled with privacy issues.

Those revelations stunned investors, who believed the company had weathered the recent scandal over users’ privacy and pushed the stock to an all-time high Wednesday of $217.50.

12:45 p.m.

The erosion in the value of Facebook as it is perceived on Wall Street involves some staggering numbers.

In midday trading Thursday, the company’s market value (the number of outstanding shares multiplied by the value of a single stock), fell by more than $122 billion.

That means that in one day, just the decline in Facebook’s market value is roughly the entire market value of McDonald’s or Nike, give or take a few billion. And it far exceeds to total market value of major U.S. multinational corporations such as General Electric, Eli Lilly or Caterpillar.

The company still has a total market value close to $511 billion, which exceeds the annual gross domestic product of countries like Poland, Belgium and Iran.

Facebook was downgraded by a number of industry analysts who were caught off guard by slowing growth in the wake of the Cambridge Analytica scandal.

Company shares fell 19 percent Thursday.

10:40 a.m.

Facebook may be heading for its worst day on the markets in its history a day after the company revealed that user growth, amid swirling questions about how their information is used, has slowed.

The stock plunged 19 percent in early trading Thursday, eradicating well in excess of $100 billion in market value.

The social media company’s financial results, released late Wednesday, fell short of Wall Street expectations as the company continues to grapple with privacy issues. It also warned that revenue would decelerate as it promotes new products

Facebook had 2.23 billion monthly users as of June 30, up 11 percent from a year earlier, but well short of what industry analysts had been expecting.

The results are from the first full quarter following the revelation of the Cambridge Analytica privacy scandal. The company is also contending with European privacy rules that went into effect in May.
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Social media giant Facebook, which has weathered storms about privacy and data protection, is now looking at cooler growth following a years-long breakneck pace.

Shares in Facebook plummeted 19 percent to close at $176.26 Thursday, wiping out $100 billion. It was believed to be the worst ever single-day evaporation of market value for any company.

The plunge came one day after the firm missed revenue forecasts for the second quarter and warned that growth would be far weaker than previously estimated.

Chief Financial Officer David Wehner warned Wednesday in an earnings call with analysts that revenue growth had already “decelerated” in the second quarter and would drop “by high single-digit percentages” in coming quarters.

At one point during the call, Facebook shares were trading down as much as 24 percent, an unprecedented drop for a large firm.

On the call, Jefferies & Co. analyst Brent Thill said that “many investors are having a hard time reconciling that deceleration. … It just seems like the magnitude is beyond anything we’ve seen.”

Facebook said the slowdown would come in part from a new approach to privacy and security, but also appeared to acknowledge the limits of growth in advertising, which accounts for virtually all its revenue.

Brian Sheehan, a Syracuse University professor of communication and advertising, said the weak forecast “made investors nervous about more basic long-term issues” with the huge social network, notably its diminished appeal to younger users.

“With or without privacy issues, investors are scared that Facebook’s interactions, particularly with those under 25, are falling,” Sheehan said.

For the second quarter, profit was up 31 percent at $5.1 billion; revenues rose 42 percent to $13.2 billion, only slightly below most forecasts.

User base still growing

Facebook reported its user base was still growing but not as fast as some expected. Monthly active users rose 11 percent to 2.23 billion — below most estimates of 2.25 billion.

Richard Windsor, a technology analyst who writes the Radio Free Mobile blog, said the new outlook should not be surprising.

“This is a direct result of scale as it becomes increasingly difficult to grow at such high rates when a company hits this size,” Windsor wrote.

Windsor added that Facebook is forced to hire more people to handle tasks such as filtering inappropriate content after discovering the limits of artificial intelligence.

“Weaknesses in AI are forcing [Facebook] to keep hiring humans to do the jobs that the machines are incapable of,” he said.

Brian Wieser at Pivotal Research Group said the company appears to have hit a “wall” on growth in advertising.

In a research note, he said Facebook’s outlook “suggests that while the company is still growing at a fast clip, the days of 30 percent-plus growth are numbered.”

Until Wednesday, Facebook shares had been at record highs as investors seemed to shrug off fears about data protection and probes into the hijacking of private information by the political consultancy Cambridge Analytica.

Chief Executive Mark Zuckerberg said Facebook has invested heavily in “safety, security and privacy” after being rocked by concerns of manipulation of the platform to spread misinformation, warning of an “impact” on profitability.

Some analysts however said it was too soon to write off Facebook or its growth prospects, and that the company may have simply been warning of the worst-case scenario.

“The company has a track record of resetting revenue growth and expense expectations only to turn around and exceed those expectations the following quarter,” said Gene Munster of Loup Ventures. “We suspect Facebook is sticking with its historical playbook and will, in fact, beat these lower numbers.”

A positive view

Richard Greenfield of BTIG Research said he remained upbeat on Facebook despite the abrupt forecast shift.

“Facebook is actively choosing to make less money, deprioritizing near-term monetization to drive engagement to even higher levels,” Greenfield said in a note to clients.

Greenfield said he could “sense the fear/panic in investors’ voices” after the Facebook analyst call, but that he had maintained his outlook.

“Mobile is eating the world and Facebook is a core holding to benefit from that shift,” he said.

RBC Capital Markets analyst Mark Mahaney said the drop creates a rare buying opportunity for Facebook shares.

“Facebook stills owns two of the largest media assets in the world [Facebook and Instagram] and the two largest messaging assets in the world [Messenger and WhatsApp],” Mahaney said in a note to clients, adding that he sees “no material change in marketer views of the attractiveness” of Facebook platforms. 
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Google launched a network of free Wi-Fi hotspots in Nigeria on Thursday, part of its effort to increase its presence in Africa’s most populous nation.

The U.S. technology firm, owned by Alphabet Inc, has partnered with Nigerian fiber cable network provider 21st Century to provide its public Wi-Fi service, Google Station, in six places in the commercial capital Lagos, including the city’s airport.

Internet penetration is relatively low in Nigeria. Some 25.7 percent of the population made use of the internet in 2016, according to World Bank data.

The poor internet infrastructure is a major challenge for businesses operating in the country, which is Africa’s largest oil producer. Broadband services are either unreliable or unaffordable to many of Nigeria’s 190 million inhabitants.

“We are rolling out the service in Lagos today but the plan is to quickly expand to other locations,” Anjali Joshi, Google’s vice president for product management, told Reuters in Lagos.

The company said it aimed to collaborate with internet service providers to reach millions of Nigerians in 200 public spaces across five cities by the end of 2019.

It said it would generate cash from the service in Nigeria by placing Google adverts in the login portal. Google did not disclose the amount invested in the new Nigeria service.

The technology firm said it planned to share revenues with its partners to help them maintain and deploy the Wi-Fi service but did not disclose the expected advertising revenue split.

Nigeria is the fifth country to launch Google Station.

Similar services have been launched in India, Indonesia, Mexico and Thailand.

The service is aimed at countries with rapidly expanding populations. The United Nations estimates Nigeria will be the world’s third most populous nation, after China and India, by 2050.

“A lot of people who found data to be too expensive for them to use, are using it,” said Joshi. “In India, we have tens of millions of users, and close to a million in Mexico.”

Africa’s rapid population growth, falling data costs and heavy adoption of mobile phones has made it an attractive investment prospect for technology companies. But many do not disclose how profitable the continent’s markets are, or if they make the companies money at all.

Nigerian Vice President Yemi Osinbajo welcomed efforts to improve internet connectivity in a speech at a Google conference in Lagos on Thursday.

“Access to information means that the gap in equality and exclusion are bridged,” said Osinbajo who earlier this month met Google’s chief executive, Sundar Pichai, at the company’s Silicon Valley headquarters.

Last year, Google announced plans to train 10 million Africans in online skills within five years.
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Facebook shares dived nearly 20 percent early Thursday after it signaled it expects weaker growth, pushing the Nasdaq decisively lower.

About 25 minutes into trading, the tech-rich Nasdaq Composite Index was at 7,840.20, down 1.2 percent, falling from Wednesday’s record close.

The Dow Jones Industrial Average rose 0.6 percent to 25,572.77, while the broad-based S&P 500 dipped 0.3 percent to 2,838.03.

The Facebook results shifted the market’s attention from Wednesday’s pledge by President Donald Trump and European Commission chief Jean-Claude Juncker on trade that had boosted markets.

Investors fled Facebook after the social network reportedly sharply higher profit and revenue, but signaled it expects slower user growth, partly due to the effect of data privacy scandals.

Facebook chief executive Mark Zuckerberg also cautioned that profitability would be hit by additional spending to secure the network.

Other technology companies retreated, including Google parent Alphabet, Netflix and Amazon, which is scheduled to report results after the market closes Thursday.

Facebook was not the only company to fall after results. Ford sank 4.1 percent and Mattel shed 4.4 percent, while American Airlines climbed 3.7 percent.

In other developments, computer chip company Qualcomm advanced 4.5 percent as it dropped a $43 billion bid to acquire Dutch rival NXP on Thursday after failing to win approval from antitrust authorities in China.

US shares of NXP fell 5.6 percent.
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U.S. President Donald Trump accused Twitter Inc on Thursday of restricting the visibility of prominent Republicans on its platform, without providing evidence, and he promised to investigate.

“Twitter ‘SHADOW BANNING’ prominent Republicans. Not good. We will look into this discriminatory and illegal practice at once!” the Republican president wrote in a Twitter post.

The practice involves limiting the visibility of a user in search results, specifically in the auto-populated dropdown search box on Twitter.

Trump’s comments followed a Vice news report on Wednesday that Republican National Committee Chairwoman Ronna McDaniel  and other Republicans including Donald Trump Jr’s spokesman were being “shadow banned.”

“The notion that social media companies would suppress certain political points of view should concern every American. Twitter owes the public answers to what’s really going on,” McDaniel wrote on Twitter.

Twitter did not have a comment on Trump’s tweet but a spokesperson said the company does not “shadow ban.”

“We are aware that some accounts are not automatically populating in our search box, and we’re shipping a change to address this,” the spokesperson said in a statement.”

Twitter said the technology used is based on user behavior not political views.

Twitter instituted a policy change on July 12 to increase the service’s credibility and reduce suspected fraud. That change cost its 100 most popular users about 2 percent of their followers, on average, according to social media data firm Keyhole.

The change cost former President Barack Obama 2 million followers by the morning after the change and singers Katy Perry and Justin Bieber each lost 3 million, The Washington Post reported, citing analytics company Twitter Counter.

The report said Trump’s account lost more than 200,000 of its 53 million followers.

Twitter shares, already lower in premarket trading after Facebook Inc’s disappointing earnings late Wednesday damped enthusiasm for technology and social media stocks, dipped a bit further and volume rose slightly after Trump’s tweet at 7:46 a.m. The stock was last down 3.2 percent.
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Video games are so popular that one US company is betting that it can lure players to leave the comforts of gaming at home and travel to local arenas to play for bragging rights and maybe even some cash. Michelle Quinn reports.
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