AT&T

AT&T Loses Key Ruling In Bid To Stop Offering Basic Phone Service In California 63

A federal judge rejected AT&T's request to temporarily block California rules requiring it to offer basic phone service to new customers in its wireline territory. AT&T wants to retire its copper-based phone network and stop service for nearly 200,000 California customers in 2027, but the state argues the company can meet its obligations with modern alternatives like fiber rather than abandoning Carrier of Last Resort requirements altogether. Ars Technica reports: To win a preliminary injunction, AT&T had to show it is likely to succeed on the merits of its claim that California rules are preempted by a Federal Communications Commission order. US District Judge Linda Lopez denied AT&T's request for a preliminary injunction during a motion hearing on Thursday, according to a docket entry. The case is in US District Court for the Southern District of California. [...] AT&T could appeal Lopez's ruling to the 9th Circuit Court of Appeals and could appeal later if it loses the underlying case. But since it has not obtained the injunction it asked for, AT&T for now remains under California's orders to keep offering phone service to potential customers while the case continues.
The Courts

Judge Pauses Paramount-Warner Bros Merger (variety.com) 23

A federal judge has temporarily paused the Paramount-Warner Bros. merger after a 12-state coalition led by California argued the deal would violate antitrust law. The 14-day restraining order (PDF) preserves the status quo while the court considers a preliminary injunction, which could effectively determine whether the merger survives. Variety reports: "Plaintiff States' showing at least demonstrates that serious questions going to the merits remain, weighing in favor of preliminary injunctive relief," the judge wrote, adding that Paramount has acknowledged it will not be harmed by the delay until the end of September. "Paramount and Warner Bros. will continue to operate as separate, viable companies competing in the marketplace while they wait for the Court to adjudicate this case. The balance of equities, combined with the public's vital interest in antitrust enforcement, therefore tips sharply in favor of the requested injunctive relief."

The 12-state coalition, led by California, brought a motion for the temporary restraining order. The states are also seeking a preliminary injunction, which would block the merger until the judge rules on the merits of the states' lawsuit. The 14-day restraining order could be extended to as long as 28 days. Martinez-Olguin, of the U.S. District Court for Northern District of California in Oakland, also set a hearing on the preliminary injunction for Aug. 3, though that date, too, could be delayed if the parties agree. Rob Bonta, the attorney general of California, hailed the judge's ruling as a "critical first win in our case to ensure this megamerger never sees the light of day."
"History tells the tale of what happens when a few people have great power over markets that are central to Americans' lives: fewer opportunities for more people, worse products and services for all people," Bonta said. "With our lawsuit, we're fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike. We have a full tank of gas, the law on our side, and look forward to continuing to make our case."
Earth

California's 'Truth in Recycling' Law Blocked by Judge (yahoo.com) 117

An anonymous reader shared this report from the Los Angeles Times: A federal judge has halted California's groundbreaking "Truth in Recycling" law, which aims to reduce consumer confusion about which packaging can be recycled. [Originally planned to take effect October 4th], California's recyclable packaging law prohibits manufacturers from using a "chasing arrows" recycling symbol on products or materials unless they are actually being recycled in a meaningful way, which the law quantifies...

A coalition of farming, forestry, restaurant and packaging organizations sued the state in March, arguing the law violates their right to free speech. They argued that Senate Bill 343 operates as "government-imposed censorship." Judge William Hayes agreed that their challenge has merit, and on Tuesday ordered California Atty. Gen. Rob Bonta, the defendant in the case, to pause enforcement of the law "until further order of the Court...." Advocates of reducing plastic use disagreed. "The court got it wrong, and I'm confident that the state will ultimately prevail," said Nick Lapis, director of advocacy for Californians Against Waste. "S.B. 343 does not violate the 1st Amendment; it requires companies to tell the truth when they make recyclability claims. Suggesting that the 1st Amendment protects misleading environmental marketing is inconsistent with the basic principles of consumer protection that states like California have implemented for decades."

In January, CalRecycle, the state's waste agency, reported that less than 10% of most single-use plastic materials in the state were being recycled. Even yogurt containers and margarine tubs — made of ubiquitous polypropylene, or No. 5 plastic — are being recycled at a rate of only 2% in the state, the report said. Only 5% of colored shampoo and detergent bottles, made from polyethylene, or No. 1 plastic, are getting recycled...

Plastic materials that can't be recycled are typically sent to landfills or sometimes illegally shipped overseas, where they are burned or end up in landfills, rivers and waterways.

The bill's author told the Los Angeles Times "All you have to do is look at the numbers. These products are not getting recycled, despite what the industry is claiming. They are just confusing consumers, clogging the waste stream, polluting the environment, leading to higher and higher prices for local governments and ratepayers." He argues the symbols shouldn't be used to "confuse people who see the symbols [on products] and assume they can be recycled."

The article also quotes Judith Enck, former Environmental Protection Agency regional administrator and president of the nonprofit Beyond Plastics. "Given the long history of the plastics industry deceiving the public about plastics recycling, this is an especially bad outcome. It is a reminder that the plastics industry has enough money to fight even the most modest policy designed to protect people and the planet."
Android

Google and Epic Cancel Settlement; Third-Party App Stores Coming To Google Play (arstechnica.com) 41

An anonymous reader quotes a report from Ars Technica: Big changes are coming to Android apps, but they're not the changes Google wanted. The settlement between Google and Epic that aimed to put to rest the companies' long-running antitrust battle is being withdrawn, and that means third-party app stores are coming to the Play Store. Google has confirmed that it will begin distributing rival app stores next week, setting the stage for competing platforms to take a bite out of Google's Android revenue stream. [...] Google and Epic were set to return to court on July 16 to argue in favor of the settlement. However, the writing may have been on the wall. In a recent expert analysis provided to the court, MIT economics professor Nancy Rose noted that the settlement was "unlikely to enable Google Play's potential competitors to overcome their long-standing network-effect disadvantage in a timely manner."

With settlement approval looking increasingly unlikely, Epic and Google agreed this week to call the whole thing off. Here's how Google Trust and Reputation Communications Lead Dan Jackson explains the company's decision: "We've agreed with Epic to withdraw our motion to modify the US Court's injunction rather than prolonging this process which creates uncertainty for the ecosystem. This allows us to focus on executing our recently announced global business model evolution to deliver greater app store choice, lower prices, and more opportunities for developers and users. We remain committed to maintaining Android's industry-leading security and fostering a competitive ecosystem where every app store and developer has the freedom to compete. In parallel, we continue to comply with the US Court's injunction."

In a brief filing (PDF), Google's legal team informs the court that Google is prepared to begin distributing third-party app stores in Google Play on July 22. Under the terms of Judge Donato's original injunction, these stores will have access to the full catalog of Google Play apps by default. Developers will have the option to opt out of distribution in these stores, and Google has a support page explaining how to do so. Google also has documentation on how app stores can get access to the Google Play catalog. It won't be mirroring those apps in any shady storefront that asks. The court has allowed Google to charge reasonable fees to cover its security and compliance review of third-party stores, which will be $5,000 per year.

Google will also require approved stores to block malware, respect intellectual property, and include mechanisms to update and uninstall apps. App stores can be removed from the program if more than 1 percent of attempted app installs appear to be malware or unwanted software. It's unclear if there will be separate, possibly more stringent requirements for storefront distribution in the Play Store. However, Google is prohibited from unreasonably blocking third-party store clients uploaded to Google Play. The changes Google has announced under the Epic agreement will proceed for now. That means Registered App Stores will happen globally, but they will probably only appear in the Play Store for US users. Google hasn't specified if there will be any differences in the features available to the stores downloaded from Play versus registered stores.

The Courts

States Sue to Block Paramount-Warner Bros Merger, Defying DOJ (variety.com) 77

A coalition of 12 states led by California is suing to block the $111 billion Paramount Skydance-Warner Bros. merger, arguing it would reduce competition in theatrical distribution, blockbuster films, and basic cable licensing. The challenge (PDF) defies the DOJ's approval of the deal. Variety reports: The coalition, led by California Attorney General Rob Bonta, alleges that the $111 billion transaction violates the Clayton Act by lessening competition in three distinct markets: wide-release theatrical distribution, "top-grossing" theatrical distribution, and basic cable licensing. "The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," Bonta said in a statement on Monday.

The suit argues that the combined company will control 27% of the wide-release theatrical distribution market, 30% of the submarket comprising "anticipated blockbuster films," and 27% of the basic cable bundle. The states argue that such consolidation will harm theaters and cable and satellite providers that rely on competition among distributors. Paramount and Warner Bros. are two of the five remaining legacy studios. Together, all five -- including Disney, Sony and Universal -- control 86% of theatrical distribution and 90% of blockbuster distribution, the states said. Warner Bros. and Paramount are also the second- and third-largest basic cable distributors, respectively.

[...] The states are expected to seek an injunction to block the transaction, which Paramount expects to close sometime after July 22. The 12 states in the coalition are Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. [...] All are represented by Democratic attorneys general.
"Consolidation here not only leads to higher prices -- it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences," Bonta said. "In this country, no one is above the law. With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy."
IBM

People Keep Sneaking Into an Empty IBM Campus - and Then Getting Arrested (msn.com) 60

Since February, New York state police have arrested 48 people for trespassing on a former IBM campus in Somers, New York, reports the Wall Street Journal. 30 of the arrests were teenagers. The long-vacant site has become a magnet for so-called urban explorers, who prowl abandoned malls, hospitals, power plants, amusement parks, factories and any other disused structure they can breach... [I]t's been turbocharged by artsy videos on Instagram and TikTok that spur others to create their own posts, luring still more curiosity seekers... In Somers, social-media images of the old IBM campus — a sprawling, pyramid-studded 1980s complex designed by the late I.M. Pei's firm — show dystopian scenes: busted windows, tossed rooms and graffitied walls. But they also give eerie glimpses of conference rooms and cubicles unchanged since IBM left a decade ago, as if employees had fled the daily grind one day and never returned...

One man in his mid-20s faces felony charges; police allege he had a loaded 9mm gun and took a Sony camera and power strip among other souvenirs. Andrew Proto, a defense lawyer, said "a 15-second clip" isn't worth a criminal record... Proto said he has represented or advised several minors arrested on the campus. The Somers town court clerk said some defendants received a 6-month "adjournment in contemplation of dismissal," meaning charges will be dropped and their arrest sealed if they avoid trouble. Some explorers who have posted about the IBM site say they follow an observe-and-preserve ethos and reject vandalism. They say they're driven by curiosity, the thrill of roaming forbidden spaces and a zeal to document discoveries — and that they're careful and know their limits.

"It actually gives me hope when I hear that kids are out there getting into trouble," says Bradley Garrett, a cultural geographer and author of the book "Explore Everything: Place-Hacking the City," about his own urbex adventures. He sees urban exploration as "a gateway drug in a good way, sometimes, into intellectual curiosity about history and culture." But Garrett said popular spots can be "loved to death" online — and then shut down, looted or set ablaze.

"Trespassers were blamed for a March 30 fire, reports a local newspaper, "that damaged one of the buildings and required volunteer firefighters to spend three hours extinguishing the blaze."
China

China's AI Companies May Be 'Distilling' America's AI Models (yahoo.com) 51

In March, Anthropic's Claude "quietly deployed software to spy on China-based customers," reports the Washington Post — apparently to unmask Chinese rivals "suspected of hijacking its technology to make their own AI tools smarter." Last week Anthropic removed the spyware "after a software developer revealed its existence and privacy advocates criticized Anthropic, saying it had surveilled its own users." Anthropic's tracking code was designed in part to catch Chinese firms "distilling" its AI models, a technique that involves pressing a large, expensive AI system to serve as a tutor to a smaller, cheaper one. Asking the larger system huge numbers of questions — hundreds of thousands or more — generates responses that can be used to upgrade the power of the smaller one on the cheap. Distillation isn't illegal, and it has been used for years in the AI industry. But distillation without permission is against AI companies' rules, and, used effectively, is giving Chinese AI companies a major leg up, American AI companies say... Anthropic and ChatGPT-maker OpenAI have both accused Chinese AI companies of using this technique to build copycat AI models of their own.

In a May blog post, Anthropic said that Chinese companies' use of distillation, along with evading U.S. export controls on high-end computer chips, has allowed them to "trail closely" behind U.S. models. But if these techniques can be blocked, it might be possible for the United States to "lock in a 12-24 month lead" on Chinese capabilities, the company said... This month, Anthropic said in a letter to U.S. senators that was obtained by The Post that it uncovered a campaign in which Chinese tech giant Alibaba's Qwen AI team used roughly 25,000 fraudulent accounts to generate more than 28.8 million exchanges with Claude to improve its own technology. In February, Anthropic made similar accusations against the Chinese firms Deepseek, Moonshot and MiniMax and said the campaigns were "growing in intensity and sophistication...." Anthropic and OpenAI have appealed to the U.S. government, arguing that distillation amounts to intellectual property theft that harms the U.S. in the geopolitical AI contest....

That Chinese AI labs are using U.S. models to improve their own technology appears beyond dispute. In a February 2025 study, researchers from China's Peking University and the state-funded Chinese Academy of Sciences developed methods to detect signs of distillation in leading large language models. They concluded that, with the exception of ByteDance's Doubao, most domestic models they tested showed substantial evidence of distillation, mostly drawing from U.S. models... In one set of intensive tests, a Qwen model misidentified itself as Claude nearly a third of the time, the Chinese researchers found.

U.S. firms have also used distillation to piggyback on AI systems made by others. In 2024, OpenAI released a tool to make it easier for customers to distill its own models and produce data sets for AI training. SpaceX founder Elon Musk said in court testimony in May that his AI company xAI used distillation to train its models and that the technique is common throughout the industry.

The article also notes that Anthropic "said it has banned nearly 700,000 accounts that were using Claude in China." But the article includes this quote from Kyle Chan, a fellow at the Washington-based Brookings Institution's China Center. "Anthropic's framing is that this is a geopolitical contest for basically the future of the world and freedom and democracy. It's that this is not just undercutting the U.S. commercially, but undercutting American strategic advantage in the most powerful technology we know today."
Facebook

Meta Says US States Seek $1.4 Trillion In Penalties In August's Youth Safety Trial (yahoo.com) 39

Meta "said in a court filing on Monday that four states were seeking $1.4 trillion in penalties," reports Reuters, "over accusations the company designed its Facebook and Instagram platforms to addict young users and misled the public about their safety." Meta put forward the figure in its response to the attorneys general's filings on how penalties should be calculated if the states prevailed at trial. The number, which has not previously been disclosed and is close to Meta's market capitalization of around $1.5 trillion, comes ahead of an August trial in Oakland, California, over the claims brought by California, Colorado, Kentucky and New Jersey against the company. Meta said the amount was unsupported by the evidence. "A sanction of that size has no analog in the history of consumer protection enforcement," the company said in the filing. "The plaintiffs' outlandish calculations have no basis in fact or law," the company said in a statement, adding that it would continue to defend itself against the states' demands.

A spokesperson for California Attorney General Rob Bonta said in a statement the lawsuit "alleges Meta has prioritized profits over the safety of kids and fueled the mental health crisis we see impacting a generation of American children. The California Department of Justice looks forward to holding Meta fully accountable at trial in August...."

Meta has denied the allegations, saying the attorneys general have no evidence it misled consumers about its platforms' alleged addictiveness because "social media addiction" is not an established psychiatric condition, and therefore statements that its platforms were not addictive could not be false... Last month, [U.S. District Judge] Rogers rejected Meta's bid to cancel the trial, saying there remained factual disputes over whether its social media platforms were addictive, whether Meta falsely denied it designed them that way, and whether it "partially" directed the platforms at children.

"A further 14 states have brought claims under their own laws, which will be heard at a separate trial in February..."

Thanks to Slashdot reader Sparkatron for sharing the article.
The Courts

Apple Sues OpenAI, Accusing It of Stealing Company Secrets (nytimes.com) 50

An anonymous reader quotes a report from The New York Times: Apple on Friday accused OpenAI of stealing secrets about products still in development, setting up a legal face-off between two of the world's biggest tech companies. In a lawsuit filed in U.S. District Court for the Northern District of California, the consumer tech giant said that OpenAI, a leader in artificial intelligence that has a new hardware business, had asked job candidates from Apple to share details about secret projects and to bring device components and prototypes to their interviews. Apple also accused an OpenAI employee of downloading internal documents from a laptop owned by the iPhone maker. OpenAI used the confidential information to approach Apple's manufacturing partners, including asking one partner to demonstrate Apple's technique for finishing metal on its devices, the lawsuit says. Apple sent a letter to OpenAI in February to raise concerns that confidential information could be "making its way to OpenAI's business improperly," according to the suit. OpenAI did not respond, Apple said. "OpenAI's nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets," Apple wrote in its lawsuit.

[...] In its lawsuit Friday, Apple accused Tang Tan, OpenAI's chief hardware officer and a former Apple executive, of coaching his hires from Apple on how to evade Apple's security processes for departing employees. Apple accused another former employee, Chang Liu, of using a former colleague's Apple-owned laptop to access and download technical documents while working at OpenAI. Mr. Liu told that Apple employee what information about unannounced products she should study before job interviews, Apple said. Mr. Liu also planned to access internal documents through an Apple-owned laptop that he didn't return when he left the company, according to the lawsuit. OpenAI had misled the manufacturing company it approached to learn about the metal finishing technique to believe it had Apple's permission to view it, according to the lawsuit. Apple is seeking an injunction that would prevent OpenAI from possessing, using or sharing Apple's trade secrets, as well as an order requiring OpenAI to return Apple's intellectual property.

EU

Apple Loses EU Fight Over App Store Gatekeeper Label (macrumors.com) 64

Europe's General Court dismissed Apple's challenge to the EU's designation of its App Stores and iOS as "gatekeepers" under the Digital Markets Act. The ruling means Apple remains subject to DMA obligations requiring it to allow alternative app stores, support interoperability with rival services, and avoid favoring its own services over competitors. MacRumors reports: Apple took its case to Luxembourg's General Court in 2024 after the European Commission designated its five App Stores -- on the iPhone, iPad, Mac, Apple TV, and Apple Watch -- as a single core platform service under the Digital Markets Act (DMA), a label that brings with it a set of strict obligations. Designated "gatekeepers" are prohibited from favoring their own services over those of rivals, and are prevented from combining personal data across different services. They also have to give users the option to use alternative app stores.

Apple also challenged the EU's designation of iOS as a gateway platform, a status that requires the operating system allows rival services to interoperate with it. The company also disputed the classification of iMessage as a number-independent interpersonal communications service, or NIICS, which would subject the app to EU telecoms rules. But the General Court said Apple's actions regarding the iMessage service are inadmissible.

The Courts

Supreme Court Allows Texas To Require Age Verification For Mobile Apps (cnn.com) 120

The Supreme Court allowed Texas to enforce a law requiring app stores to verify users' ages and obtain parental consent before minors can download apps. Tech industry groups argue the law broadly restricts young people's access to digital speech, but the court let a 5th Circuit order stand without explanation or noted dissents. CNN notes that the Supreme Court's decision "doesn't resolve the case but rather will allow Texas to enforce the law while the litigation continues to play out." From the report: "A minor child who downloads a software application from an app store agrees to contractual terms of service, including whether the child's location will be tracked, whether the child's privacy will be protected, whether information from the child's phone can be sold by the developer, and whether the child waives the right to sue," Texas told the Supreme Court in urging the court to allow its law to take effect.

But the Computer & Communications Industry Association, a trade group whose members include Apple and Google, said the law would effectively bar young people from accessing a wide range of content, "be it a book by Ernest Hemingway or J.K. Rowling, a Taylor Swift album, or a subscription to National Geographic." Allowing the law to take effect, the group said, would have "profound consequences for the protection of digital speech."

[...] In the new case, involving Texas' age verification for apps, a federal district court blocked the law's enforcement in December -- days before it was set to take effect. But a three-judge panel of the conservative 5th US Circuit Court of Appeals put that decision on hold in early June, allowing the state to enforce it. By declining to take up the emergency appeal from the computer and student groups, the Supreme Court has left the 5th Circuit's decision in place.

Social Networks

Fines Doubled As Teens Outsmart Australia's Social Media Ban (euronews.com) 153

Australia plans to double fines for social media platforms that fail to keep under-16s off restricted services, after regulators found 70% of children with accounts remained active three months after the ban took effect. The government says the changes will also give the eSafety Commissioner more power to demand information from platforms and age-assurance providers as teens continue finding ways around the law. Euronews reports: The government said Sunday it would introduce draft legislation this week doubling the maximum penalty to 99 million Australian dollars (63 million euros) for platforms -- including Facebook, Instagram, Snapchat and TikTok -- that do not take reasonable steps to comply with the ban, which became law on 10 December. Communications Minister Anika Wells blamed the platforms directly. "We can all agree we would like the scheme to work better than it is currently, but that is on Big Tech taking the Mickey," she said, speaking to the Australian Broadcasting Corp on Monday. Wells added that she had received monthly updates from the online safety regulator since March and "we are not seeing improvements."

The amendments would also expand the powers of eSafety Commissioner Julie Inman Grant to demand information and documents from platforms -- and from third parties such as age assurance technology providers -- to test claims made by companies about how under-16s continued to circumvent the ban. The government had initially reported more than 5 million children had accounts removed, deactivated or restricted after the legislation passed. But eSafety found in March that 70% of children who held accounts on restricted platforms on the day the ban took effect remained active on Facebook, Instagram, Snapchat and TikTok.

Inman Grant said in April she was considering court action against those platforms and YouTube, alleging they were not taking reasonable steps to exclude children. She said she was satisfied with progress made by the remaining restricted platforms: X, Kick, Reddit, Threads and Twitch. Senior opposition lawmaker Jane Hume said her party would consider supporting the reforms, but pinned blame on the original legislation. "The legislation was clearly undercooked in the first place. The eSafety Commissioner wasn't given the powers to be able to pursue these Big Tech companies," she said.

EU

Google Ordered to Pay $2 Billion For Anti-Competitive Practices By Swedish Court (msn.com) 88

Google was ordered to pay almost $2 billion this week to Pricerunner, reports Bloomberg: The Patent and Market Court in Stockholm, which issued the judgment on Wednesday, dismissed most parts of the claim in which Pricerunner sought 80 billion Swedish kronor, or roughly $8.2 billion, in the wake of a European Union antitrust crackdown... The Swedish price-comparison website argued that Google has been abusing its dominant position as a search engine by favoring its own comparison shopping service over competing portals for more than a decade. Wednesday's award compensates for lost revenue caused by Google's preferential treatment of its own comparison-shopping service over independent price-comparison services, conduct that also drives up costs for consumers, [Pricerunner owner] Klarna said in a statement after the judgment...

A Google spokesperson said the company doesn't agree with the court's decision and will consider its legal options. [The ruling can be appealed.] Changes implemented in 2017 to Google's platform are working and generating growth and jobs for hundreds of comparison shopping services operating more than 1500 websites across Europe, according to the statement.

The litigation is linked to a 2017 decision by the European Commission to fine Google €2.4 billion for illegally leveraging its search dominance to give its own shopping service an edge. The EU decision unleashed a wave of so-called follow-on suits, which were delayed for years as Google appealed the EU fine. Two years ago the EU's top tribunal confirmed that the company did violate antitrust laws — meaning EU-based plaintiffs no longer have to prove that in court. A Berlin court last year ordered the tech giant to pay €573 million in damages to two German price-comparison websites, a ruling Google appealed. Similar cases are pending across Europe.

Crime

Windows 11 Identifier Code Used to Arrest 19-Year-Old Over Alleged Ransomware Spree (tomshardware.com) 69

America's Justice Department and FBI teamed joined Finland's National Bureau of Investigation to arrest a teenager they say is part of one of the world's biggest cybercrime syndicates, reports Tom's Hardware. The "Scattered Spider" syndicate has extorted over $100 million in ransom payments, according to Department of Justice figures: 19-year-old Peter Stokes is a dual U.S.-Estonian citizen who was trying to board a flight to Japan from Helsinki, when law enforcement caught up with him. [T]he main criminal complaint against Stokes stems from a May 2025 attack on a luxury jewelry dealer based in the United States. The attackers apparently called the company's IT helpdesk using Google Voice, posing as employees. They were able to convince the help desk into resetting their credentials, which allowed them to infiltrate three accounts, two of which had admin privileges. From there, the group, allegedly including Stokes, stole important data and held the jeweler at ransom, demanding an $8 million payment in crypto. The company ultimately regained access to their infrastructure and avoided paying the ransom, but the operational disruption still caused a purported $2 million in losses. This served as the spark that led to Stokes' eventual arrest in Helsinki, as the prosecutors slowly followed the paper and digital trail laid by the attackers.

Microsoft played a key role in the process by providing GDID [Global Device Identifier] data to the FBI to help them apprehend the alleged criminal... [I]t's a unique identifier assigned to every Windows install that tracks device-specific telemetry. It's the reason why sometimes changing a major component in your PC can revoke your Windows license... [T]he court documents from the case reveal that Stokes used Windows, from which investigators were able to link his physical hardware to specific internet activity and locations... Stokes' web activity, videogame history, IP addresses, tool usage (including Ngrok), Azure status, and more were logged with timestamps, and were provided to the investigators by Microsoft...

Stokes was carrying two hard drives full of incriminating evidence with him when boarding his flight to Japan... His real identity has actually been known since 2024, but since he was a minor living across Estonia and the UAE at the time, he could only be monitored until the time was right.

The official criminal complaint even includes a selfie photo that Stokes posted on Snapchat (hiding his face behind dozens of hundred dollar bills). It then notes that behind Stokes the wallpaper, carpet, and furniture match New York's Empire Hotel — and that Stokes had visited the hotel's web site in Germany before then flying to New York...

"Following the arrest, Stokes was extradited to the U.S., where he appeared in front of a federal court in Chicago for the first time on June 30, 2026, and he remains in custody," adds Tom's Hardware.

"The accused is now awaiting trial, having been charged with conspiracy, cyber intrusion, and fraud..."
The Internet

GoDaddy Warns India's Crackdown on Fake Site Registrars Could Upend Internet Privacy Everywhere (reuters.com) 20

"The internet is filled with fakes," writes Gizmodo. "A court in India is setting out to address the problem by requiring more transparency from domain registrars to make it easier to crack down on fraud. And while the intentions might be good, Reuters is reporting that major American domain registrar GoDaddy is sounding the warning bells that the court's decision could fundamentally reshape the internet well beyond India's borders."

GoDaddy argues the move would even make the internet less safe, reports Reuters : [Online fraud] is a key challenge for Prime Minister Narendra Modi's government, which last year received 2.4 million complaints of alleged cyber fraud amounting to $2.4 billion. Starting in 2019, lawsuits were brought by dozens of Indian and global firms — Amazon against fake shopping sites trading on its name and McDonald's complaining against bogus sites offering franchises. [More than 20 companies filed a complaint, the article notes, including Microsoft.] In December, an Indian court blocked more than 1,100 such websites. The New Delhi judge however went further, ordering sweeping new measures that tech experts say have rewritten rules of internet governance: Domain sellers should not offer buyers free privacy protection by default, the buyer's details should be released to anyone with a "legitimate interest" within 72 hours, and website addresses that are variations of protected brand names must be prohibited.

U.S.-based GoDaddy has challenged the directives before a larger bench of judges at the Delhi High Court, according to a Reuters review of non-public filings. It says the ruling will affect legitimate businesses that have names similar to big brands. Stopping privacy-by-default features, GoDaddy said, will result in public disclosure of name, address, telephone and email of legitimate website owners, exposing them to "foreseeable privacy and security risks" such as stalking and harassment.

As domain names operate globally, not locally, the order could force GoDaddy to regulate website addresses across the world, it said. On the court's order imposing a 72-hour deadline on companies to provide registration details to anyone with "legitimate interest", GoDaddy argues it has no wherewithal to assess who has legitimate interest or not. The "commercially destabilising" directives may force domain name companies to "exit India", said one of GoDaddy's appeal documents that ran into 5,121 pages... GoDaddy rivals, Arizona-based Namecheap and Netherlands-based Hosting Concepts, have also challenged the New Delhi ruling, court records show, although Reuters could not ascertain details of their appeals...

GoDaddy argues that diluting the privacy feature will run contrary to India's data protection law and the European Union GDPR law which mandates a "privacy by default" approach. Farzaneh Badii, a New York-based researcher on internet governance, criticised the New Delhi ruling, noting that Europe redacted such details because publishing them had been abused by harassment and targeted phishing. "The people exposed will be journalists, activists, small business owners, and private individuals. The brand impersonators will not," she said...

While the sweeping December directives were issued by a court, they followed government's submissions, documents showed... The judges will hear the appeals on July 16.

GoDaddy manages 80 million domains and serves over 20 million users, the article points out, with annual revenue over $5 billion.
The Courts

T-Mobile Appears To Be Quitting VMware Amid Support Rights Lawsuit With Broadcom (theregister.com) 56

T-Mobile appears to be migrating its 303,000-core VMware environment to another platform while fighting Broadcom in court for the extended support it says its perpetual-license agreement guarantees. "The matter is somewhat urgent," The Register reports, because a court-ordered support arrangement expires August 3, "so T-Mobile may soon be unable to get support for its very substantial VMware estate." The Register reports: The dispute relates to a deal T-Mobile struck with VMware in August 2023, which saw the telco acquire perpetual licenses and two years of support for some software, plus the option for a further year of support. When Broadcom acquired VMware in 2023, it stopped selling perpetual licenses and standalone support deals for customers with those licenses. Broadcom also reduced the virtualization giant's product range from over 150 products to two subscription-only bundles. Broadcom now mostly sells its Cloud Foundation (VCF) private cloud suite. Customers including AT&T and Tesco tried to exercise their right to extended support, but Broadcom declined to do so. AT&T settled on confidential terms. Tesco is pursuing the matter in the courts.

When customers exercise their option for extended support, Broadcom argues it can't deliver because the products covered by the contract don't exist anymore, its contracts allow it to deny support for dead products, and subscriptions are now the industry standard. T-Mobile started using VMware's products in 2008. In one hearing, the carrier's counsel described T-Mobile's VMware implementation as "the base of the entire internal network" and "the place where 1,000 applications reside." Another filing, from Broadcom, says the telco runs VMware software on over 303,000 CPU cores.

Court documents allege that in 2024 Broadcom notified T-Mobile it would not renew support after the initial two-year deal expired in 2025. The two parties kept talking about possible new arrangements. T-Mobile also sought an injunction that would compel Broadcom to provide extended support. Broadcom opposed the injunction, arguing that T-Mobile deliberately waited too long to seek it. At one point T-Mobile suggested a $20 million deal for another two years of support. An affirmation filed last week by T-Mobile vice president of technology Kevin Luu says the carrier sought that arrangement "to be able to complete T-Mobile's transition away from VMware at a more deliberate pace."

The court eventually granted the injunction forcing Broadcom to offer support beyond August 2025, but required T-Mobile to pay $5.28 million and post a $500,000 undertaking. Broadcom continued to provide support but also sought damages on grounds that the injunction meant it missed out on a new deal with T-Mobile. The telco has rubbished that argument in part because the two parties were still talking about a new deal. Broadcom later proposed to charge $24 million for extended support covering six products, a sum it said would cover over 20 staff needed to support T-Mobile. The carrier fired back by pointing out that it has made just two support calls in 2026, which hardly justifies such a massive staff and expense.

The Courts

Meta Loses Bid To Dismiss US States' Claims That Facebook, Instagram Addict Children (reuters.com) 29

A federal judge rejected Meta's bid to dismiss claims from 29 state attorneys general alleging that Facebook and Instagram were designed to addict children while concealing the harms. The judge found significant factual disputes that must be decided at trial. They also ruled that Meta failed to comply with federal parental notice and consent requirements for children under 13, "and granted summary judgement to the states on that issue," reports Reuters. From the report: In a separate statement, California Attorney General Rob Bonta called the decision a "critical win" in holding Meta accountable for fueling a mental health crisis among American children. Gonzalez Rogers also oversees related multidistrict litigation by more than 2,600 individuals, school districts and local governments over whether social media platforms such as Facebook, Instagram, Google and YouTube, Snapchat and TikTok addict children.

The states said research has shown that children's use of Facebook and Instagram could lead to depression, anxiety, insomnia, interference with education and daily life, and self-harm including suicide. Meta countered that the attorneys general had no evidence it misled consumers about its platforms' alleged addictiveness, including in congressional testimony by Chief Executive Mark Zuckerberg. The Menlo Park, California-based company said this was because "social media addiction" is not an established psychiatric condition, and therefore statements that its platforms are not addictive could not be false. Meta also said it didn't violate the children's online privacy law because it directed Facebook and Instagram to a general audience, not just children under age 13.

In a 38-page decision, Gonzalez Rogers found material factual disputes over whether Meta's social media platforms are addictive, whether Meta falsely denied it designed them that way, and whether it "partially" directed the platforms at children. "The AGs present a reasonable interpretation of [Meta's] statements that Facebook and Instagram are not designed in ways that cause teens to compulsively use the platforms to their detriment," the judge wrote. "To the extent plaintiffs' evidence shows that the platforms are in fact designed to do just that, a jury could reasonably find the statements were untrue to a reasonable person," she added. A trial over California, Colorado, Kentucky and New Jersey's claims against Meta is scheduled for August 18, court records show.
Further reading: Will Social Media Change After YouTube and Meta's Court Defeat?
The Courts

US Supreme Court Rules Geofence Warrants Require Constitutional Privacy Protections (theguardian.com) 97

The U.S. Supreme Court ruled 6-3 (PDF) in Chatrie v United States (No. 25-112) that geofence warrants sweeping up smartphone location data constitute searches under the Fourth Amendment. The Court found that individuals have a "reasonable expectation of privacy" in such data, even when the tracking covers only a brief period or records movements in public. "An individual has a reasonable expectation of privacy in records about his cell phone's location, and police intrude on that constitutionally protected interest when they demand the information -- even though for only a limited time, and from a third-party tech company," wrote Justice Elena Kagan. Longtime Slashdot reader schwit1 submitted the story. The Guardian reports: The use of geofence warrants is widespread, and gives law enforcement agencies the power to compel tech companies to hand over sensitive cell phone data from people at or near crime scenes. The warrants allow police and the FBI to collect this information from individuals within the radius of a virtual "fence" during a particular timeframe. But they are not restricted to requesting data for precise targets.

The Chatrie case focuses on local police's pursuit of an armed bank robber in Richmond, Virginia. He fled with $195,000. Law enforcement tracked Okello Chatrie down through their use of geofence warrants. Chatrie had opted in to an optional Google "location history" feature that documented his location every few minutes. He was eventually sentenced to 12 years in prison, after pleading guilty. Chatrie's lawyers argued that this search was overly broad and violated his fourth amendment rights, which protects individuals from "unreasonable search and seizure." Lawyers said that police's use of geofence warrants amounted to an official "search" under the fourth amendment, and didn't meet the constitution's requirements for one.

The government had argued that accessing only a short amount of cellphone location information means this tactic does not count as a fourth amendment search and accordingly, should not be afforded the same privacy protections. But the judges in the majority disagreed. The judges in the majority opinion also wrote that the government's characterization of generating location history as a voluntary choice is "meritless." They suggested that people aren't choosing to share private information with third parties and the government "just by doing the ordinary thing cellphone users do." "The point of carrying smartphones is to use what is on them," including the apps and services they provide -- many of which use location data to customize a user's experience, they said.

[...] While the majority opinion noted that police conducted a fourth amendment search by accessing Chatrie's location history data, they noted that the court of appeals will weigh in on whether the "search was reasonable, meaning that each of its steps was properly described with particularity and found to be supported by probable cause." Law enforcement has said they need geofence warrants to find suspects and witnesses -- after reaching dead ends. The US government, for its part, has argued that people can't have a "reasonable expectation of privacy" when they are in public and have allowed a third party company, such as Google, to collect and analyze phone location data.

Microsoft

Remembering How Microsoft's Fake Windows Error Ended In a $280 Million Secret Settlement (makeuseof.com) 74

Slashdot reader joshuark summarizes this walk down memory lane from the tech site MakeUseOf: Facing real competition from Digital Research's DR DOS, Microsoft secretly embedded a sabotaging mechanism known as "AARD code" into beta versions of Windows 3.1 to prevent it from running on Digital Research's competing DR DOS operating system.
This code triggered fake, alarming error messages to convince developers that DR DOS was unstable... Although Microsoft disabled the feature in the final retail release, the California-based firm Caldera, Inc., which had acquired DR DOS assets, sued Microsoft for anti-competitive practices.
Microsoft settled the lawsuit out of court in 2000 for $280 million, a figure that remained sealed until it was unsealed in 2009.

AI

Microsoft Slammed for Building Copyright-Infringing Supercomputer for OpenAI in New Court Filing (arstechnica.com) 88

The New York Times alleges Microsoft actively encouraged OpenAI to steal its copyrighted work, reports Ars Technica, citing a new (and heavily redacted) court filing Thursday: NYT's motion comes after the [U.S.] Supreme Court sided with Cox Communications in a case where Sony tried and failed to claim that Cox was contributing to music piracy as an Internet service provider, which set a new standard for contributory infringement. Moving forward, plaintiffs will have to prove that parties intentionally acted to induce illegal conduct. Recognizing that the legal precedent has changed, the NYT now wants to amend its complaint to align its contributory infringement claim against Microsoft with that new standard... A Microsoft spokesperson told Ars that the company views the amended complaint as "a last-ditch effort by the plaintiff to save its claim from unfavorable precedent set in other recent rulings..."

The updated complaint seeks to specify that [Microsoft's] supercomputer was tailor-made to help OpenAI infringe and allege that it was built for the explicit purpose of training AI on copyrighted works without permission. And as the NYT alleged, its articles were more heavily weighted by this system, as both firms hoped to train models on the highest-quality journalism possible, so that level of writing could be confidently mimicked in outputs. By building this "unusually complex" machine, Microsoft not only helped select the works that were infringed but also provided a means to seize copyrighted works without permission, the NYT alleged. "Microsoft specifically designed it for the purpose of using essentially the whole Internet — curated to disproportionately feature Times Works — to train the most capable LLM in history," the NYT alleged... Similarly as problematic for the NYT are hallucinations where Microsoft and OpenAI models falsely cite the NYT for content that they never published... "Users who ask a search engine what The Times has written on a subject should be provided with neither an unauthorized copy nor an inaccurate forgery of a Times article, but a link to the article itself," the NYT alleged...

In a statement provided to Ars, OpenAI spokesperson Drew Pusateri reiterated the AI firm's often-repeated claims that AI training on copyrighted works is indisputably fair use... OpenAI has argued that "ChatGPT is not a substitute for a Times subscription," the NYT reported, partly because "they transformed the material for a different use."

An OpenAI spokesperson told Ars Technica that OpenAI's models "empower innovation," while a New York Times spokesperson insisted that Microsoft "actively encouraged OpenAI to steal our copyrighted works... [O]ur core claims remain the same from the day we filed this lawsuit — that Microsoft and OpenAI stole millions of The Times's copyrighted works to compete with our products and illegally enrich themselves."

The article speculates that the case's most extreme outcome "could require OpenAI and Microsoft to wipe models and start over. The NYT has also asked for permanent injunctive relief to prevent future infringement, as well as extensive damages..."

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