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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.

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.”

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.

 

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.

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.

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.

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.

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.

Russia Opens Civil Case Against Google Over Search Results

Russia has launched a civil case against Google, accusing it of failing to comply with a legal requirement to remove certain entries from its search results, the country’s communications watchdog said on Monday.

If found guilty, the U.S. internet giant could be fined up to 700,000 rubles ($10,450), the watchdog, Roskomnadzor, said.

It said Google had not joined a state registry that lists banned websites that Moscow believes contain illegal information and was therefore in breach of the law.

A final decision in the case will be made in December, the watchdog said. Google declined to comment.

Over the past five years, Russia has introduced tougher internet laws that require search engines to delete some search results, messaging services to share encryption keys with security services, and social networks to store Russian users’ personal data on servers within the country.

At the moment, the only tools Russia has to enforce its data rules are fines that typically only come to a few thousand dollars, or blocking the offending online services, which is an option fraught with technical difficulties.

Three sources familiar with the matter told Reuters on Monday that Russia planned to impose stiffer fines on technology firms that fail to comply with Russian laws.

The plans for harsher fines are contained in a consultation document prepared by the administration of President Vladimir Putin and sent to industry players for feedback.

The legislation, if it goes ahead, would hit global tech giants such as Facebook and Google, which – if found to have breached rules – could face fines equal to 1 percent of their annual revenue in Russia, according to the sources.

 

Russia Opens Civil Case Against Google Over Search Results

Russia has launched a civil case against Google, accusing it of failing to comply with a legal requirement to remove certain entries from its search results, the country’s communications watchdog said on Monday.

If found guilty, the U.S. internet giant could be fined up to 700,000 rubles ($10,450), the watchdog, Roskomnadzor, said.

It said Google had not joined a state registry that lists banned websites that Moscow believes contain illegal information and was therefore in breach of the law.

A final decision in the case will be made in December, the watchdog said. Google declined to comment.

Over the past five years, Russia has introduced tougher internet laws that require search engines to delete some search results, messaging services to share encryption keys with security services, and social networks to store Russian users’ personal data on servers within the country.

At the moment, the only tools Russia has to enforce its data rules are fines that typically only come to a few thousand dollars, or blocking the offending online services, which is an option fraught with technical difficulties.

Three sources familiar with the matter told Reuters on Monday that Russia planned to impose stiffer fines on technology firms that fail to comply with Russian laws.

The plans for harsher fines are contained in a consultation document prepared by the administration of President Vladimir Putin and sent to industry players for feedback.

The legislation, if it goes ahead, would hit global tech giants such as Facebook and Google, which – if found to have breached rules – could face fines equal to 1 percent of their annual revenue in Russia, according to the sources.

 

British Firm Creates Novel Way to Recycle Plastic

The problem with plastics is a well-known refrain by now: It never goes away and far too little of it is being recycled. That means it is turning up in every corner of our planet, from our beaches to our bodies. But one British firm has figured out a new way to recycle plastics, and customers are waiting in line. VOA’s Kevin Enochs reports.

British Firm Creates Novel Way to Recycle Plastic

The problem with plastics is a well-known refrain by now: It never goes away and far too little of it is being recycled. That means it is turning up in every corner of our planet, from our beaches to our bodies. But one British firm has figured out a new way to recycle plastics, and customers are waiting in line. VOA’s Kevin Enochs reports.

Malawi, UN Pilot Drone Project to Fight Hunger

As many as 3 million Malawians are expected to face food shortages this year because of drought and pests. To address the problem, Malawi and the United Nations are piloting a joint project to assess the health of crops using drones. Lameck Masina reports from Kasungu, central Malawi.

Malawi, UN Pilot Drone Project to Fight Hunger

As many as 3 million Malawians are expected to face food shortages this year because of drought and pests. To address the problem, Malawi and the United Nations are piloting a joint project to assess the health of crops using drones. Lameck Masina reports from Kasungu, central Malawi.

Technology Shapes Insurance Companies’ Response to Wildfires

As wildfires raged this month in California, insurance claims experts at Travelers sat in a command center 3,000 miles (4,828 kilometers) away in Connecticut, monitoring screens showing satellite images, photos from airplane flyovers and social media posts describing what was happening on the ground.

Real-time data and technology that were unavailable to property-casualty companies even a few years ago have shaped the industry’s response to the Camp Fire, which has burned nearly 240 square miles (622 square kilometers) in northern California and the 151-square-mile (391-square-kilometer) Woolsey Fire in the Los Angeles area.

By overlaying the data on maps marking its customers’ locations, the company can quickly identify those who are likely to have been affected, said Jim Wucherpfennig, Travelers vice president of claims.

“That allows us to deploy people and resources where they are needed most,” he said.

The same data also can be used to determine risk and pricing for insurance in any given area, said Peter Kochenburger, the deputy director of the University of Connecticut’s insurance law center. Insurers, for example, can use the telemetry to identify local vegetation, wind patterns and fire history. In some cases, it can determine that the owner of one home is more likely to suffer damage than the owner of a neighboring home, he said.

“Does it seem intrusive? It can be,” he said. “They have a lot more information on all of us, on our properties than they had two, five, 10 years ago. That’s a major issue and that’s something regulators are going to have to talk about.”

During the wildfires, Travelers said the information has been used to expedite claims, even in areas that are still inaccessible to inspectors.

Workers were able to see what roads were open and map out spots in Chico and Thousand Oaks to park the RVs that serve as mobile claim centers, the company said. The tools also indicated where customers who evacuated were going to be, Wucherpfennig said.

The glassed-in Travelers National Catastrophe Center is located in Windsor, Connecticut. Modeled after military war rooms, it includes a conference table behind 19 high-definition screens, which display maps, graphs, television images and social media sites, all providing real-time data on the fires.

In some cases, even before adjusters arrive on scene, claims experts can assess damage from the fires and cut checks by using before-and-after images taken by drones, aircraft or satellites as well as videos or photos uploaded by customers from their phones. Employees have tools and smart phone apps that can convert those photos into instant measurements, to help quantify the damage.

“We’re able to virtually interact with customers much more easily than we could even in the recent past,” Wucherpfennig said. “We’re also able to monitor all forms of social media in real time. That helps us create an event footprint, which helps us understand how the event is tracking and what type of damages we’re seeing.”

Solar-powered Suitcases Bring Light to Darkened Classrooms

Solar-powered suitcases are bringing light to darkened classrooms and struggling students in rural Kenya. Before solar power, the alternatives were small tin kerosene lamps that are not only expensive to fill but also have caused some health problems. VOA’s Mariama Diallo reports.

Solar-powered Suitcases Bring Light to Darkened Classrooms

Solar-powered suitcases are bringing light to darkened classrooms and struggling students in rural Kenya. Before solar power, the alternatives were small tin kerosene lamps that are not only expensive to fill but also have caused some health problems. VOA’s Mariama Diallo reports.

Facebook Sued by Russian Firm Linked to Woman Charged by US Government

A Russia-based news company whose accountant was charged by federal prosecutors for attempting to meddle in U.S. elections sued Facebook Inc in a federal court Tuesday, claiming that its Facebook page was improperly removed.

The Federal Agency of News LLC and its sole shareholder, Evgeniy Aubarev, filed the lawsuit against Facebook in federal court in the Northern District of California, seeking damages and an injunction to prevent Facebook from blocking its account.

Facebook deleted the company’s account in April as it purged pages and accounts associated with the St. Petersburg-based Internet Research Agency, which was indicted by Special Counsel Robert Mueller earlier this year for interfering in the 2016 U.S. election.

FAN and Zubarev said they were improperly swept up in Facebook’s purge.

Facebook did not immediately respond to a request for comment on the lawsuit.

“FAN is an independent, authentic and legitimate news agency which publishes reports that are relevant and of interest to the general public,” the company said in the lawsuit.

Peter Carr, a spokesman for Mueller, declined to comment.