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DOJ is working with states on antitrust investigations of tech companies
The Justice Department's antitrust leader doesn't see big tech as inherently bad, but he's still content to investigate potential wrongdoing. Division chief Makan Delrahim told guests at a Colorado tech policy conference that the DOJ was working with state attorneys general on investigations of the market influence of tech companies. He added that he didn't think the laws had to change "at this time" to pursue any possible cases, arguing that current laws were "quite flexible" and allowed "timely and aggressive enforcement."
Here’s how AG Barr is going to get encryption 'backdoors'
If you heard the reverberation of a few thousand heads exploding last week, it was the sound of information security professionals reacting to US Attorney General Barr saying that Big Tech "can and must" put backdoors into encryption. In his speech for a cybersecurity conference at Fordham University, Barr warned tech companies that time was running out for them to develop ways for the government to break encryption. FBI Director Christopher Wray agreed with him.
DOJ could approve T-Mobile and Sprint merger tomorrow
T-Mobile and Sprint are still grappling with state lawsuits attempting to block their merger, but they can at least take some consolation from the federal government. CNBC sources claim that the Department of Justice is expected to approve the merger on July 25th (that's tomorrow, if you're reading in time). The union is contingent on T-Mobile selling assets to Dish, though. Reportedly, Dish will buy T-Mobile's prepaid phone business for $1.4 billion, and spend another to snap up $3.6 billion in wireless spectrum. You can likely say goodbye to a T-Mobile-owned Metro, then.
Justice Department launches sweeping review of competition in tech
The US is intensifying its already stepped-up scrutiny of the tech industry. The Department of Justice is launching a comprehensive antitrust review of "market-leading online platforms" to see if they're abusing their leading positions. There's no definite goal beyond determining whether or not there are any anti-competitive practices. The review will focus on internet platforms involving search, shopping and social networking, however.
Microsoft will pay $25 million to settle Hungary bribery charges
Microsoft is on the hook at home for alleged crimes abroad. The company has agreed to pay about $25 million in settlements with both the Justice Department and SEC over charges that its Hungary subsidiary violated the Foreign Corrupt Practices Act. The division allegedly discounted prices for its resellers and distributors between 2013 and 2015, using the increased profit margins to fund bribes for government officials and clinch lucrative software deals with Microsoft.
US regulators carve up oversight of Amazon and Google
If there weren't already signs that American regulators expect to crack down on tech giants, there are now. Washington Post sources said that the Department of Justice and the Federal Trade Commission have carved out their competitive oversight of Amazon and Google, with the DOJ gaining "more jurisdiction" over Google and the FTC watching over Jeff Bezos' outfit. It wasn't certain just what the agencies intended, although recent rumors had the DOJ prepping an antitrust probe for Google. These kinds of jurisdictional moves are frequently precedents to regulatory action.
Amazon is reportedly interested in buying Boost Mobile
If helping to create a competitor is a necessary condition to get the Sprint/T-Mobile deal done, then perhaps Amazon can help. A report from Reuters suggests the retailer is interested in buying Boost Mobile from the combo, particularly because it would come with the ability to use T-Mobile's network for six years. The unnamed sources also claimed the company could be interested in spectrum the newly-merged pair would have to divest. Amazon has tried to get into the mobile business before -- remember the Fire Phone? -- and it wouldn't be a huge surprise to see it add wireless to the suite of services it offers. Yesterday's report pointed to the possibility of a cable company trying to rise up as the fourth major mobile operator, but if Amazon can pass regulatory scrutiny, maybe Prime will cover one more thing pretty soon.
International effort busts $100 million malware crime network
The US, five other countries and Europol have dismantled an elaborate cybercrime ring that relied on one piece of malware to pull off heists. Officials have charged 10 people across five countries with using GozNym malware to grab banking login credentials in a bid to steal about $100 million from over 41,000 target computers, most of them linked to US businesses and their associated banks. It's not certain how much money the team obtained.
T-Mobile and Sprint push merger deadline to July 29th
T-Mobile and Sprint have pushed back the deadline to complete their $26 billion merger, reports Reuters. The companies will now have until July 29th to earn the approval of the US Justice Department and the Federal Communications Commission.
T-Mobile and Sprint merger is 'unlikely' without major changes
So much for T-Mobile and Sprint enjoying a smooth merger. Wall Street Journal sources say the Department of Justice has told the carriers that their $26 billion union is "unlikely" to receive approval under its current structure. While the particular objections aren't available, DOJ offcials reportedly questioned claims that the merger would create "important efficiencies."
Appeals court upholds AT&T's purchase of Time Warner
AT&T doesn't have to worry that its acquisition of Time Warner might be undone. A federal appeals court has upheld the merger in the face of a Justice Department challenge from July. The explanation behind the decision isn't available as of this writing, but the judge who approved the deal didn't apply conditions. The DOJ was concerned AT&T might raise prices and reduce competition in pay TV by charging providers more for Time Warner (now WarnerMedia) programming.
Government shutdown has left several US agency websites inaccessible
Agency websites are among the many facets of the US government that the ongoing shutdown has affected, as more than 80 TLS certificates on government sites have reportedly expired. Even though federal employees could have renewed them well in advance of the shutdown, there's no one around to do so now, meaning dozens of sites may be inaccessible or non-secure for the time being.
Filing reveals sealed charges against WikiLeaks founder Julian Assange
This evening, it became clear that the Justice Department either had already filed charges against Julian Assange under seal, or was preparing them. First the Wall Street Journal reported that preparations were under way, and then Seamus Hughes pointed out a court filing that mentions the WikiLeaks cofounder.
DOJ and SEC subpoena Snap over allegedly misleading investors
The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have subpoenaed Snap Inc. requesting information about its March 2017 initial public offering. In a statement to Reuters, Snap said it has responded to a government subpoena and believes that the SEC is "investigating issues related to the previously disclosed allegations asserted in a class action about our IPO disclosures."
NSA leaker Reality Winner sentenced to 5 years in prison
Reality Winner, the whistleblower who leaked NSA election hacking data, pled guilty back in June to a single count of transmitting national defense information. Today, she was sentenced to 63 months in prison, which prosecutors called the longest sentence imposed for a federal crime related to unauthorized disclosure of classified info to the media.
DOJ wants access to suspect's encrypted Facebook Messenger chats
The US government wants Facebook to help break Messenger's encryption to get access to a suspect's voice conversations in a criminal case, sources told Reuters. The case, an investigation of the MS-13 gang, is under seal so filings aren't publicly available. But the sources stated that Facebook has contested the DOJ's demand, and may be held in contempt of court for refusing.
Anonymous deals with its QAnon branding problem
When you're a notorious hacking entity like Anonymous, and a pro-Trump conspiracy cult (QAnon) steals your branding (while claiming you're the impostor), the obvious thing to do is declare cyberwar. That's exactly what Anonymous did this past week in a press announcement, followed by a social media and press offensive. So far Anonymous has managed to take over QAnon's hashtags (while adding #OpQAnon and others) and dox a couple hundred members of Trump's pedophilia-obsessed, "deep state" doomsday cult. QAnon's mouthpieces responded exactly as we'd expect, with taunts and tweets saying: "These people are STUPID!! They have no brains and no skills. Typical 'empty threat' terrorists! But DO NOT click their links!! Virus city baby!!"
DOJ decides it should publicly 'expose' foreign election schemes
If the US Justice Department stays true to its new policy, we'll hear about foreign cyberattacks and disinformation campaigns targeting the country's democracy straight from its office. Deputy Attorney General Rod J. Rosenstein (above) has announced at the Aspen Security Forum that under the new policy, the DOJ will inform American corporations, organizations and even individuals if they're being targeted by foreign operations in an attempt to influence the country's elections. "Exposing schemes to the public is an important way to neutralize them," he explained, less than a week after the DOJ indicted 12 Russian intelligence agents for hacking Democrats leading up to the 2016 Presidential Elections. He added: "The American people have a right to know if foreign governments are targeting them with propaganda."
DOJ demands Disney sell 22 regional sports channels in Fox acquisition
The Department of Justice announced on Wednesday that it will require Disney to divest from 22 regional sports networks in order to complete its $71.3 billion acquisition of select Twenty-First Century Fox assets.
FBI admits to 'over-counting' inaccessible mobile devices
For the last two years, the FBI has repeatedly claimed that thousands of phones linked to criminal investigations were inaccessible due to locks and encryption. Last year FBI Director Christopher Wray said it had failed to access 7,800 mobile devices, but tonight a Washington Post report reveals that number is incorrect. According to the Post, the accurate number is between 1,000 and 2,000, with a recent internal estimate putting at about 1,200 devices, and in a statement, the FBI responded: "The FBI's initial assessment is that programming errors resulted in significant over-counting of mobile devices reported." The official excuse is that errors caused by multiple databases resulted in devices being counted more than once, but the issue has been an FBI and DOJ pursuit of backdoor access to locked phones. Then-director James Comey cited the inflated figure during a debate over the San Bernardino shooters' locked iPhone, and it has come up again in relation to similar incidents. Without being provided any backdoor by Apple, law enforcement gained access to that device anyway, and as we've recently learned, there are tools it can use for newer phones. The government has repeatedly referred to "Going Dark" as a major problem it faces in investigations, suggesting tech companies are enabling criminals by strengthening privacy protections that they can't get around. But privacy advocates have long thought the agency was pumping up its numbers, and now it's case has taken a significant hit.
