Internet Security

Where is the EU going on tech and competition policy? – TechCrunch

Huge technology policy questions are looming for whoever takes the top jobs at the European Union in the coming months. Decisions that could radically reshape tech business models, reconfigure the competitive landscape and change the relationship between Internet users and the content and services they consume. In short, the entire future of the tech industry…


Huge technology policy questions are looming for whoever takes the top jobs at the European Unionin the coming months. Decisions that could radically reshape tech business models, reconfigure the competitive landscape and change the relationship between Internet users and the content and services they consume.

In short, the entire future of the tech industry — and potentially not just in Europe but worldwide — is at stake.

The incoming European Commissionwill be faced with a lengthy list of pressing questions. How will they reboot competition law for the digital era? Should they rush in swinging a break-up hammer at monopolistic tech giants or take a scalpel to the competition-crushing problem of networked dominance by slicing up their data flows?

They will have to defend fundamental rights that call for privacy by design and data minimization against AI’s rapacious demand for data and the predictive powers of pattern-spotting algorithms.

They will have to evaluate how to make sure platforms play fair — and ensure that the initial embrace of sellers or service providers doesn’t evolve into crushing abuse. They will have to fashion rules that can wrap around digital giants, rather than getting bent out of shape by ‘winner takes all’ business models.

The power of tech giants to influence entire nations is now writ large in EU domestic politics. Europe knows it needs to hammer out an agreement on reforming digital taxation, with rising citizen anger over tax inequalities. The question is how to do it when certain states with low corporate tax rates have been colonised by tech giants which definitely don’t want tax reform to happen.

There’s also the tricky business of arbitrating between Europe’s traditional creative industries and the predominantly US sharing platforms that have gotten fat off of the back of others’ content — a battle so fraught it’s already yielded an EU copyright reform as polarising as Brexit.

How, too, to level the playing field between Internet giants and traditional telcos?

That requires winning agreement on an update to ePrivacy rules that’s been stalled for months. Because, again, new rules are urgently needed — to wrap around digital comms and address digital marketing’s weed-like sprawl, an outgrowth that’s spawned an entire shadowy industry of trackers, data brokers and people profilers which can be linked to many a data scandal and has driven EU consumers into the arms of ad blockers. How to find a way through all the competing interests to bring order to the unregulated mess that is modern adtech?

Then there’s hate speech and online disinformation. What’s to be done to shrink the democratic risks of political manipulation without trampling freedom of expression? And how can Europe best equip its citizens for the next waves of deepfaked information warfare while also getting platforms to accountably clean up their act?

Europe needs to shape a strategy to support AI too. It wants to do this in a way that reflects and bakes in European values. But how to ensure ethical guardrails to make AI development sensitive and “human-centric” don’t just end up kneecapping homegrown technologists versus whatever’s coming out of China?

Speaking of China, then of course there’s 5G. The Commission has to chart a delicate course between member states’ national security priorities and the fragmentation threat to its flagship digital single market policy if EU nations respond differently to Huawei. The whole project risks collapsing into mutual mistrust — which would reverse the intended gains to Europe’s digital economy.

On the legal front, an ongoing clash of priorities between US surveillance practices and EU fundamental rights also looks like trouble brewing.

A flagship EU-US data transfer mechanism launched by the Commission in 2016 is now facing serious legal questions. Does the next Commission have with a plan B to keep critical business data flowing for the thousands of companies signed up to its Privacy Shield framework if it gets struck down by a judge’s pen?

This is not a theoretical threat; the predecessor arrangement that had stood for fifteen years was invalidated in 2015, after a legal challenge which drew on NSA whistleblower Edward Snowden’s revelations of US mass surveillance programs. Trump’s ‘America First’ policy agenda clearly risks exacerbating this clash.

The US president is also of course continuing to rain down trade uncertainties that are rocking the stability ofEast-West technologysupply chains. How should Europe respond to the wreaking ball potential of Trump’s trade war? What support can it offer its own tech industry to manage a level of uncertainty that makes brexit look like a picnic?

And, as the Internet splinters into increasingly localized flavors, how will Europe prepare and position itself?

The techie to-do list crossing the next Commission’s desk is packed with highly charged, pressing and politically fraught problems.

Over the past year the EU has dined out on making a name for itself on the world stage with a shiny new set of digital privacy rules — aka, the General Data Protection Regulation (GDPR) — at a time when US policymakers are just waking up to the rude incursions of homegrown data-mining tech giants. But attention now needs to be paid to ensuring it actually delivers what was promised or else the global spotlight will be pointing at policy failure.

So yet another task for the next Commission will be applying the right level of strategic pressure to make sure the regulation’s wheels are turning.

National data protection agencies are where GDPR enforcement will fly or fail. The highest profile cases that will really test their mettle are of course attached to tech giants — including Facebook and Google. The latter’s handling of personal data for behavioral advertising is now under scrutiny in Ireland.

The Irish DPC also has more than ten open investigations into Facebook-owned businesses, covering a range of issues — from probes of specific security breaches to whether it is lawfully gaining consent to process the data of users of its platform being as it offers no opt-out from behavioural ads.

If Ireland fails to defend European values and rights against the commercial incursions of some of the world’s most powerful companies it would represent EU policy failure at the highest level.

It could also invite revolt from less conflicted parts of Europe. A dispute resolution mechanism is baked into GDPR, which allows the European Data Protection Board to step in if disagreement between DPAs om cross-border cases threatens to derail decisions. While this does look intended as a tool of last resort, the market denting power of tech giants is piling the pressure on — with record numbers of such complaints awaiting judgement.

Either way, battles are brewing. And the biggest fight looks to be for the future shape of the commercial Internet.

Ad-funded business models that have been allowed to grow like weeds are under regulatory scrutiny like never before — thanks, in large part, to European interventions. So too are the tech giants that have profited so handsomely by being able to use data how they like.

At the same time a new generation of privacy-conscious startups is thinking differently and doing what it can to gain footholds in markets where platform giants suck most of the oxygen out of the room.

Strong decisions by the next Commission to defend European rights and reboot digital markets with fairness and competition at the center have the potential to transform the digital economy so that there are far more winners, not just a few taking all.

The question is whether Europe’s leaders will rise to the challenge.

Who’s in the running to be the next EC president?

The center right’s preferred candidate — and therefore the technical favorite for the EU’s top job — is German conservative, Manfred Weber.

Manfred Weber. Photo by David Speier/NurPhoto via Getty Images

In Commission president candidate debates he has billed himself as offering “stability” for the European project, via a “pro-compromise approach” — and talked about strengthening “the innovation field” as the key to building a stronger EU economy, saying he also wants to upgrade the EU-US trade relationship to bolster Europe’s prospects.

But Weber has a lack of executive experience and suffers from something of a charisma vacuum at a time when a big personality might well be required to sit in the chair and ‘sell’ the next Commission to a more fragmented European Parliament.

The kaleidoscope twist of European parliamentary politics may also have undermined Weber’s frontrunner chances by allowing critics to argue against him on the grounds that his party, the EPP, failed to grow its share of the votes. So it may b

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Internet Security

Facebook’s regulation dodge: Let us, or China will

Facebook is leaning on fears of China exporting its authoritarian social values to counter arguments that it should be broken up or slowed down. Its top executives have each claimed that if the U.S. limits its size, blocks its acquisitions or bans its cryptocurrency, Chinese company’s absent these restrictions will win abroad, bringing more power…


Facebook is leaningon fears of China exporting its authoritarian social values to counter arguments that it should be broken up or slowed down. Its top executives have each claimed that if the U.S. limits its size, blocks its acquisitions or bans its cryptocurrency, Chinese company’s absent these restrictions will win abroad, bringing more power and data to their government. CEO Mark Zuckerberg, COO Sheryl Sandberg and VP of communications Nick Clegg have all expressed this position.

The latest incarnation of this talking point came in today’s and yesterday’s congressional hearings over Libra, the Facebook-spearheaded digital currency it hopes to launch in the first half of 2020. Facebook’s head of its blockchain subsidiary Calibra, David Marcus, wrote in his prepared remarks to the House Financial Services Committee today that (emphasis added):

I believe that if America does not lead innovation in the digital currency and payments area, others will.If we fail to act, we could soon see a digital currency controlled by others whose values are dramatically different.

Senate Banking Committee Holds Hearing On Facebook's Proposed Crypto Currency

WASHINGTON, DC – JULY 16: Head of Facebook’s Calibra David Marcus testifies during a hearing before Senate Banking, Housing and Urban Affairs Committee July 16, 2019 on Capitol Hill in Washington, DC. The committee held the hearing on “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations.” (Photo by Alex Wong/Getty Images)

Marcus also told the Senate Banking Subcommittee yesterday that “I believe if we stay put we’re going to be in a situation in 10, 15 years where half the world is on a blockchain technology that is out of reach of our national-security apparatus.”.

This argument is designed to counter House-drafted “Keep Big Tech Out of Finance” legislation that Reuters reports would declare that companies like Facebook that earn over $25 billion in annual revenue “may not establish, maintain, or operate a digital asset . . .  that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function.”

The message Facebook is trying to deliver is that cryptocurrencies are inevitable. Blocking Libra would just open the door to even less scrupulous actors controlling the technology. Facebook’s position here isn’t limited to cryptocurrencies, though.

Highlights from Facebook’s Libra Senate hearing

The concept crystallized exactly a year ago when Zuckerberg said in an interview with Recode’s Kara Swisher, “I think you have this question from a policy perspective, which is, do we want American companies to be exporting across the world?” (emphasis added):

We grew up here, I think we share a lot of values that I think people hold very dear here, and I think it’s generally very good that we’re doing this, both for security reasons and from a values perspective. BecauseI think that the alternative, frankly, is going to be the Chinese companies. If we adopt a stance which is that, ‘Okay, we’re gonna, as a country, decide that we wanna clip the wings of these companies and make it so that it’s harder for them to operate in different p

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Internet Security

Daily Crunch: HBO Max is coming in 2020 – TechCrunch

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here. 1. AT&T’s new streaming service HBO Max arrives in 2020, will be the exclusive home of ‘Friends’ Hooray, we don’t have to…


The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. AT&T’s new streaming service HBO Max arrives in 2020, will be the exclusive home of ‘Friends’

Hooray, we don’t have to call it the Untitled WarnerMediastreaming service anymore! Instead, it’s going to be named HBO Max, and it will launch next spring with more than 10,000 hours of content available to subscribers.

The service won’t be limited to HBOcontent — hence the availability of “Friends” — but the naming indicates how important HBO as a TV brand is to consumers and to parent company AT&T.

2. Visa funds $40M for no-password crypto vault Anchorage

Visa and Andreessen Horowitz are betting even bigger on cryptocurrency, funding a big round for fellow Facebook Libra Associa

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Internet Security

Visa funds $40M for no-password crypto vault Anchorage – TechCrunch

Visa and Andreessen Horowitz are betting even bigger on cryptocurrency, funding a big round for fellow Facebook Libra Association member Anchorage’s omnimetric blockchain security system. Instead of using passwords that can be stolen, Anchorage requires cryptocurrency withdrawals to be approved by a client’s other employees. Then the company uses both human and AI review of…


Visa and Andreessen Horowitz are betting even bigger on cryptocurrency, funding a big round for fellow Facebook Libra Association member Anchorage’s omnimetric blockchain security system. Instead of using passwords that can be stolen, Anchorage requires cryptocurrency withdrawals to be approved by a client’s other employees. Then the company uses both human and AI review of biometrics and more to validate transactions before they’re executed, while offering end-to-end insurance coverage.

This new-age approach to cryptocurrency protection has attracted a $40 million Series B for Anchorage, led by Blockchain Capital and joined by Visa and Andreessen Horowitz. The round adds to Anchorage’s $17 million Series A that Andreessen led just six months ago, demonstrating extraordinary momentum for the security startup.

As a custodian, our work is focused on building financial plumbing that other companies depend on for their operations to run smoothly. In this regard we have always looked at Visa as a model,” Anchorage co-founder and president Diogo Mónica tells me.

“Visa was ‘fintech’ before the term existed, and has always been on the vanguard of financial infrastructure. Visa’s investment in Anchorage is helpful not only to our company but to our industry, as a validation of the entire ecosystem and a recognition that crypto will play a key role in the future of global finance.”

Anchorage Crypto 1

Cold-storage, where assets are held in computers not connected to the internet, has become a popular method of securing Bitcoin, Ether and other tokens. But the problem is t

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Internet Security

Facebook Announces New Libra Cryptocurrency

Facebook has finally revealed the details of its cryptocurrency, Libra, which will let you buy things or send money to people with nearly zero fees. You’ll pseudonymously buy or cash out your Libra online or at local exchange points like grocery stores, and spend it using interoperable third-party wallet apps or Facebook’s own Calibra wallet…


Facebook has finallyrevealed the details of its cryptocurrency, Libra, which will let you buy things or send money to people with nearly zero fees. You’ll pseudonymously buy or cash out your Libra online or at local exchange points like grocery stores, and spend it using interoperable third-party wallet apps or Facebook’s own Calibra wallet that will be built into WhatsApp, Messenger and its own app. Today Facebook released its white paper explaining Libra and its testnet for working out the kinks of its blockchain system before a public launch in the first half of 2020.

Facebookwon’t fully control Libra, but instead get just a single vote in its governance like other founding members of the Libra Association, including Visa, Uber and Andreessen Horowitz, which have invested at least $10 million each into the project’s operations. The association will promote the open-sourced Libra Blockchain and developer platform with its own Move programming language, plus sign up businesses to accept Libra for payment and even give customers discounts or rewards.

Facebook is launching a subsidiary company also called Calibra that handles its crypto dealings and protects users’ privacy by never mingling your Libra payments with your Facebook data so it can’t be used for ad targeting. Your real identity won’t be tied to your publicly visible transactions. But Facebook/Calibra and other founding members of the Libra Associationwill earn interest on the money users cash in that is held in reserve to keep the value of Libra stable.

Facebook’s audacious bid to create a global digital currency that promotes financial inclusion for the unbanked actually has more privacy and decentralization built in than many expected. Instead of trying to dominate Libra’s future or squeeze tons of cash out of it immediately, Facebook is instead playing the long-game by pulling payments into its online domain. Facebook’s VP of blockchain, David Marcus, explained the company’s motive and the tie-in with its core revenue source during a briefing at San Francisco’s historic Mint building. “If more commerce happens, then more small businesses will sell more on and off platform, and they’ll want to buy more ads on the platform so it will be good for our ads business.”

The risk and reward of building the new PayPal

In cryptocurrencies, Facebook saw both a threat and an opportunity. They held the promise of disrupting how things are bought and sold by eliminating transaction fees common with credit cards. That comes dangerously close to Facebook’s ad business that influences what is bought and sold. If a competitor like Google or an upstart built a popular coin and could monitor the transactions, they’d learn what people buy and could muscle in on the billions spent on Facebook marketing. Meanwhile, the 1.7 billion people who lack a bank account might choose whoever offers them a financial services alternative as their online identity provider too. That’s another thing Facebook wants to be.

Yet existing cryptocurrencies like Bitcoin and Ethereum weren’t properly engineered to scale to be a medium of exchange. Their unanchored price was susceptible to huge and unpredictable swings, making it tough for merchants to accept as payment. And cryptocurrencies miss out on much of their potential beyond speculation unless there are enough places that will take them instead of dollars, and the experience of buying and spending them is easy enough for a mainstream audience. But with Facebook’s relationship with 7 million advertisers and 90 million small businesses plus its user experience prowess, it was well-poised to tackle this juggernaut of a problem.

Now Facebook wants to make Libra the evolution of PayPal. It’s hoping Libra will become simpler to set up, more ubiquitous as a payment method, more efficient with fewer fees, more accessible to the unbanked, more flexible thanks to developers and more long-lasting through decentralization.

“Success will mean that a person working abroad has a fast and simple way to send money to family back home, and a college student can pay their rent as easily as they can buy a coffee,” Facebook writes in its Libra documentation. That would be a big improvement on today, when you’re stuck paying rent in insecure checks while exploitative remittance services charge an average of 7% to send money abroad, taking $50 billion from users annually. Libra could also power tiny microtransactions worth just a few cents that are infeasible with credit card fees attached, or replace your pre-paid transit pass.

…Or it could be globally ignored by consumers who see it as too much hassle for too little reward, or too unfamiliar and limited in use to pull them into the modern financial landscape. Facebook has built a reputation for over-engineered, underused products. It will need all the help it can get if wants to replace what’s already in our pockets.

Here’s our zero-buzzword breakdown of Libra:

How does Libra work?

By now you know the basics of Libra. Cash in a local currency, get Libra, spend them like dollars without big transaction fees or your real name attached, cash them out whenever you want. Feel free to stop reading and share this article if that’s all you care about. But the underlying technology, the association that governs it, the wallets you’ll use and the way payments work all have a huge amount of fascinating detail to them. Facebook has released more than 100 pages of documentation on Libra and Calibra, and we’ve pulled out the most important facts. Let’s dive in.

The Libra Association — crypto’s new oligarchy

Facebook knew people wouldn’t trust it to wholly steer the cryptocurrency they use, and it also wanted help to spur adoption. So the social network recruited the founding members of the Libra Association, a not-for-profit which oversees the development of the token, the reserve of real-world assets that gives it value and the governance rules of the blockchain. “If we were controlling it, very few people would want to jump on and make it theirs,” says Marcus.

Each founding member paid a minimum of $10 million to join and optionally become a validator node operator (more on that later), gain one vote in the Libra Association council and be entitled to a share (proportionate to their investment) of the dividends from interest earned on the Libra reserve into which users pay fiat currency to receive Libra.

The 28 soon-to-be founding members of the association and their industries, previously reported by The Block’s Frank Chaparro, include:

  • Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
  • Tech

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