The Courts

Apple Faces UK 'iCloud Monopoly' Compensation Claim Worth $3.8 Billion (techcrunch.com) 73

An anonymous reader quotes a report from TechCrunch: U.K. consumer rights group 'Which?' is filing a legal claim against Apple under competition law on behalf of some 40 million users of iCloud, its cloud storage service. The collective proceeding lawsuit, which is seeking 3 billion pounds in compensation damages (around $3.8 billion at current exchange rates), alleges that Apple has broken competition rules by giving its own cloud storage service preferential treatment and effectively locking people into paying for iCloud at "rip-off" prices. "iOS has a monopoly and is in control of Apple's operating systems and it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But that is exactly what has happened," Which wrote in a press release announcing filing the claim with the U.K.'s Competition Appeal Tribunal (CAT).

The lawsuit accuses Apple of encouraging users of its devices to sign up to iCloud for photo storage and other data storage needs, while simultaneously making it difficult for consumers to use alternative storage providers -- including by not allowing them to store or back-up all of their phone's data with a third-party provider. "iOS users then have to pay for the service once photos, notes, messages and other data go over the free 5GB limit," Which noted. The suit also accuses Apple of overcharging U.K. consumers for iCloud subscriptions owing to the lack of competition. "Apple raised the price of iCloud for UK consumers by between 20% and 29% across its storage tiers in 2023," it wrote, saying it's seeking damages for all affected Apple customers -- and estimating that individual consumers could be owed an average of 70 pounds (around $90), depending on how long they've been paying Apple for iCloud services.
"Anyone who has 'obtained' iCloud services, including non-paying users, over the nine-year timeframe since the Consumer Rights Act came into force on October 1st, 2015," will be included in the claim. U.K.-based consumers will have to opt-out if they do not want to be included. "Consumers who live outside the U.K. and believe they are eligible to be included must actively opt-in to join the action," adds TechCrunch.
Crime

Discord Leaker Sentenced To 15 Years In Prison (nbcnews.com) 89

An anonymous reader quotes a report from NBC News: Former Massachusetts Air National Guard member Jack Teixeira was sentenced Tuesday to 15 years for stealing classified information from the Pentagon and sharing it online, the U.S. Attorney for Massachusetts announced. Teixeira received the sentence before Judge Indira Talwani in U.S. District Court for the District of Massachusetts. In March, the national guardsman pleaded guilty to six counts of willful retention and transmission of national defense information under the Espionage Act. He was arrested by the FBI in North Dighton, Massachusetts, in April 2023 and has been in federal custody since mid-May 2023.

According to court documents, Teixeira transcribed classified documents that he then shared on Discord, a social media platform mostly used by online gamers. He began sharing the documents in or around 2022. A document he was accused of leaking included information about providing equipment to Ukraine, while another included discussions about a foreign adversary's plot to target American forces abroad, prosecutors said. [...] While the documents were discovered online in March 2023, Teixeira had been sharing them online since January of that year, according to prosecutors.

United States

The US Has a Cloned Sheep Contraband Problem (wired.com) 109

Federal authorities are grappling with the aftermath of an illegal sheep cloning operation that has scattered hundreds of contraband hybrid animals across multiple states, following the sentencing of the scheme's mastermind. Montana rancher Arthur Schubarth received a six-month prison term for cloning a near-threatened Marco Polo argali sheep from tissue illegally imported from Kyrgyzstan.

The cloned animal, named Montana Mountain King, was used to inseminate over 100 ewes, creating a network of unauthorized hybrid offspring. Court documents reveal that Schubarth sold these hybrids to big game hunting enthusiasts, with prices reaching $10,000 per animal. While the original cloned sheep is now housed at New York's Rosamond Gifford Zoo, authorities cannot account for most of its descendants.
The Courts

FTX Sues Crypto Exchange Binance and Its Former CEO Zhao For $1.8 Billion 7

The FTX estate has filed a lawsuit against Binance and former CEO Changpeng Zhao, seeking to recover $1.76 billion, alleging a "fraudulent" 2021 share deal that involved funding from FTX's insolvent Alameda Research. The suit also accuses Zhao of misleading social media posts that allegedly spurred customer withdrawals and contributed to FTX's collapse. CNBC reports: In a Sunday filing with a Delaware court, FTX cites a 2021 transaction in which Binance, Zhao and others exited their investment in FTX, selling a 20% stake in the platform and a 18.4% stake in its U.S.-based entity West Realm Shires back to the company. The FTX estate alleges that the share repurchase was funded by FTX's Alameda Research division through a combination of the company's and Binance's exchange tokens, as well as Binance's dollar-pegged stablecoin.

"Alameda was insolvent at the time of the share repurchase and could not afford to fund the transaction," the suit claims, labeling the deal agreed with FTX co-founder Sam Bankman-Fried -- who's now serving a 25-year sentence over fraud linked to the downfall of his exchange -- a "constructive fraudulent transfer." Binance denies the allegations, saying in an emailed statement, "The claims are meritless, and we will vigorously defend ourselves."
Books

Are America's Courts Going After Digital Libraries? (reason.com) 43

A new article at Reason.com argues that U.S. courts "are coming for digital libraries." In September, a federal appeals court dealt a major blow to the Internet Archive — one of the largest online repositories of free books, media, and software — in a copyright case with significant implications for publishers, libraries, and readers. The U.S. Court of Appeals for the 2nd Circuit upheld a lower court ruling that found the Internet Archive's huge, digitized lending library of copyrighted books was not covered by the "fair use" doctrine and infringed on the rights of publishers. Agreeing with the Archive's interpretation of fair use "would significantly narrow — if not entirely eviscerate — copyright owners' exclusive right to prepare derivative works," the 2nd Circuit ruled. "Were we to approve [Internet Archive's] use of the works, there would be little reason for consumers or libraries to pay publishers for content they could access for free."
Others disagree, according to some links shared in a recent email from the Internet Archive. Public Knowledge CEO Chris Lewis argues the court's logic renders the fair use doctrine "almost unusuable". And that's just the beginning... This decision harms libraries. It locks them into an e-book ecosystem designed to extract as much money as possible while harvesting (and reselling) reader data en masse. It leaves local communities' reading habits at the mercy of curatorial decisions made by four dominant publishing companies thousands of miles away. It steers Americans away from one of the few remaining bastions of privacy protection and funnels them into a surveillance ecosystem that, like Big Tech, becomes more dangerous with each passing data breach.
But lawyer/librarian Kyle K. Courtney writes that the case "is specific only to the parties, and does not impact the other existing versions of controlled digital lending." Additionally, this decision is limited to the 2nd Circuit and is not binding anywhere else — in other words, it does not apply to the 47 states outside the 2nd Circuit's jurisdiction. In talking with colleagues in the U.S. this week and last, many are continuing their programs because they believe their digital loaning programs fall outside the scope of this ruling... Moreover, the court's opinion focuses on digital books that the court said "are commercially available for sale or license in any electronic text format." Therefore, there remains a significant number of materials in library collections that have not made the jump to digital, nor are likely to, meaning that there is no ebook market to harm — nor is one likely to emerge for certain works, such as those that are no longer commercially viable...

This case represents just one instance in an ongoing conversation about library lending in the digital age, and the possibility of appeal to the U.S. Supreme Court means the final outcome is far from settled.

Some more quotes from links shared by Internet Archive:
  • "It was clear that the only reason all the big publishers sued the Internet Archive was to put another nail in the coffin of libraries and push to keep this ebook licensing scheme grift going. Now the courts have helped." — TechDirt
  • "The case against the Internet Archive is not just a story about the ruination of an online library, but a grander narrative of our times: how money facilitates the transference of knowledge away from the public, back towards the few." — blogger Hannah Williams

Thanks to Slashdot reader fjo3 for sharing the news.


The Courts

IBM Sued Again In Storm Over Weather Channel Data Sharing (theregister.com) 20

IBM is facing a new lawsuit alleging that its Weather Channel website shared users' personal data with third-party ad partners without consent, violating the Video Privacy Protection Act (VPPA). The Register reports: In the absence of a comprehensive federal privacy law, the complaint [PDF] claims Big Blue violated America's Video Privacy Protection Act (VPPA), enacted in 1988 in response to the disclosure of Supreme Court nominee Robert Bork's videotape rental records. IBM was sued in 2019 (PDF) by then Los Angeles City Attorney Mike Feuer over similar allegations: That its Weather Channel mobile app collected and shared location data without disclosure. The IT titan settled that claim in 2020. A separate civil action against IBM's Weather Channel was filed in 2020 and settled in 2023 (PDF).

This latest legal salvo against alleged Weather Channel-enabled data collection takes issue with the sensitive information made available through the company's website to third-party ad partners mParticle and AppNexus/Xandr (acquired by Microsoft in 2022). The former provides customer analytics, and the latter is an advertising and marketing platform. The complaint, filed on behalf of California plaintiff Ed Penning, contends that by watching videos on the Weather Channel website, those two marketing firms received Penning's full name, gender, email address, precise geolocation, the name, and the URLs of videos he watched, without his permission or knowledge.

It explains that the plaintiff's counsel retained a private research firm last year to analyze browser network traffic during video sessions on the Weather Channel website. The research firm is said to have confirmed that the website provided the third-party ad firms with information that could be used to identify people and the videos that they watched. The VPPA prohibits video providers from sharing "personally identifiable information" about clients without their consent. [...] The lawsuit aspires to be certified as a class action. Under the VPPA, a successful claim allows for actual damages (if any) and statutory damages of $2,500 for each violation of the law, as well as attorney's fees.

Intel

Intel Sued Over Raptor Lake Voltage Instability (theregister.com) 58

Intel faces a class-action lawsuit alleging its 13th and 14th generation desktop processors from 2022 and 2023 are defective, causing system instability and frequent crashes. The suit claims that Intel knew of the issue but continued marketing the processors anyway. The Register reports: The plaintiff, Mark Vanvalkenburgh of Orchard Park, New York, purchased an Intel Core i7-13700K from Best Buy in January 2023, according to the complaint [PDF]. "After purchasing the product, Plaintiff learned that the processor was defective, unstable, and crashing at high rates," the complaint claims. "The processor caused issues in his computer, including random screen blackouts and random computer restarts. These issues were not resolved even after he attempted to install a patch issued by Intel for its 13th Generation processors."

The potential class-action lawsuit cites various media reports and social media posts dating back to December 2022 that describe problems with Intel's 13th and 14th generation processors, known as Raptor Lake. These reports document unexplained failures and system instability, as well as a higher-than-expected rate of product returns. "By late 2022 or early 2023, Intel knew of the defect," the complaint says. "Intel's Products undergo pre-release and post-release testing. Through these tests, Intel became aware of the defect in the processors." And because Intel continued making marketing claims touting the speed and performance of its products, with no mention of any defect, the complaint alleges that Intel committed fraud by omission, breached implied warranty, and violated New York General Business Law.

Facebook

Facebook Asks US Supreme Court To Dismiss Fraud Suit Over Cambridge Analytica Scandal (theguardian.com) 23

An anonymous reader quotes a report from The Guardian: The US supreme court grappled on Wednesday with a bid by Meta's Facebook to scuttle a federal securities fraud lawsuit brought by shareholders who accused the social media platform of misleading them about the misuse of user data. The justices heard arguments in Facebook's appeal of a lower court's decision allowing the 2018 class action suit led by Amalgamated Bank to proceed. The suit seeks unspecified monetary damages in part to recoup the lost value of the Facebook stock held by the investors. It is one of two cases coming before them this month -- the other one involving artificial intelligence chipmaker Nvidia on 13 November -- that could lead to rulings making it harder for private litigants to hold companies to account for alleged securities fraud.

At issue is whether Facebook broke the law when it failed to detail the prior data breach in subsequent business-risk disclosures, and instead portrayed the risk of such incidents as purely hypothetical. Facebook argued in a supreme court brief that it was not required to reveal that its warned-of risk had already materialized because "a reasonable investor" would understand risk disclosures to be forward-looking statements. "When we think about these questions, we're not looking only to lies or complete false statements," the liberal justice Elena Kagan told Kannon Shanmugam, the lawyer for Facebook. "We're also looking to misleading statements or misleading omissions." The conservative justice Samuel Alito asked Shanmugam: "Isn't it the case that an evaluation of risks is always forward-looking?" "It is. And that is essentially what underlies our argument here," Shanmugam responded.

The plaintiffs accused Facebook of misleading investors in violation of the Securities Exchange Act, a 1934 federal law that requires publicly traded companies to disclose their business risks. They claimed the company unlawfully withheld information from investors about a 2015 data breach involving British political consulting firm Cambridge Analytica that affected more than 30 million Facebook users. Edward Davila, a US district judge, dismissed the lawsuit but the San Francisco-based ninth US circuit court of appeals revived it. The supreme court's ruling is expected by the end of June.

Wikipedia

India Issues Notice To Wikipedia Over Concerns of Bias (techcrunch.com) 101

India's government challenged Wikipedia's legal immunity as a tech platform on Tuesday, issuing a notice questioning whether the online encyclopedia should be reclassified as a publisher. The move follows Delhi High Court warnings to suspend Wikipedia's India operations over a defamation case filed by Asian News International. The news agency seeks to unmask contributors who labeled it a "government propaganda tool." Justice Navin Chawla threatened contempt proceedings after Wikipedia cited its lack of physical presence in India to request more time for disclosing user information. The court deemed the site's open editing feature "dangerous."
The Courts

Lawsuit Accuses PowerSchool of Selling Student Data To 3rd Parties (businessinsider.com) 11

A former teacher has filed a federal lawsuit against PowerSchool, alleging the education technology giant illegally sells student data to third parties without proper consent. Emily Cherkin, lead plaintiff in the class action suit filed in San Francisco, claims PowerSchool has amassed 345 terabytes of data from 440 school districts, including sensitive information about students' health, behavior, and academic records. The company provides software services to more than 60 million students across 90 of the largest U.S. school districts.

The lawsuit alleges PowerSchool sells anonymized student data to over 100 partners, including educational consultants and government agencies, while marketing its analytics for workforce and policy planning. The company's Naviance college-planning software alone tracks 6 million high school students. PowerSchool has denied the allegations.
Google

Google, Apple Drive 'Black Box' IP Policing with App Store Rules (bloomberglaw.com) 15

App developers Musi and Sarafan Mobile have sued Apple and Google in California federal court over app removals they claim were unjustified, highlighting tensions over the tech giants' intellectual property enforcement policies. Musi's music-streaming app was removed after YouTube complained about interface infringement, while Sarafan's "Reely" app was taken down following Instagram's claims about logo similarity.

Both developers say the platforms breached their agreements by removing apps without sufficient evidence. The lawsuits underscore broader concerns about Apple and Google's dominance in app distribution. Their private IP dispute systems operate outside traditional legal frameworks, with platforms making unilateral decisions that can effectively shut down businesses, according to University of New Hampshire law professor Peter Karol. [...]

"In a court proceeding, you can see here's a complaint with the allegations, and then we have the defendant respond, and then we have a judge come out with an opinion saying, 'Is the mark valid? Is the mark infringed?'" said Lisa Ramsey, law professor at University of San Diego. Google and Apple's systems, meanwhile, are "a black box."
The Courts

'The Law Must Respond When Science Changes' (scientificamerican.com) 189

The clash between law's need for finality and science's evolving nature is creating serious justice problems, an opinion piece on Scientific American argued on Monday. Two recent cases highlight this: Robert Roberson faces execution based on now-discredited shaken baby syndrome science, while the Menendez brothers' life sentences are being questioned due to improved understanding of childhood trauma's effects on violence.

Scientific understanding in criminal justice has repeatedly proven wrong. Texas executed Cameron Todd Willingham in 2004 based on invalidated arson science. The FBI found errors in 90% of their reviewed hair analysis cases. Courts still accept bite mark evidence despite experts failing to distinguish human from animal bites. The legal system fails in two critical ways, the story argues: Judges don't properly screen out bad science despite their "gatekeeper" role established in Daubert v. Merrell Dow, and courts resist reopening cases when scientific understanding changes.

While some states like Texas and California have laws allowing appeals based on updated science, implementation remains weak. Roberson has spent 20 years on death row and the Menendez brothers 28 years in prison while courts drag their feet on reviewing their cases with current scientific knowledge. The piece argues that constitutional due process requires allowing convicts to challenge their cases when the science underlying their convictions proves faulty. The system can reform by enforcing stricter scientific evidence standards and creating clear paths to challenge convictions based on outdated science.
Government

L.A. County Sues Pepsi and Coca-Cola Over Their Role in the Plastic Pollution Crisis (yahoo.com) 110

An anonymous reader shared this report from the Los Angeles Times: Los Angeles County has filed suit against the world's largest beverage companies — Coca-Cola and Pepsi — claiming the soda and drink makers lied to the public about the effectiveness of plastic recycling and, as a result, left county residents and ecosystems choking in discarded plastic... The Los Angeles County suit alleges — in a vein similar to that of [California attorney general] Bonta's suit against Exxon Mobil — that the global beverage companies misrepresented the environmental impact of their plastic bottles, "despite knowing that plastics cannot be readily disposed of without associated environmental impacts."

"Coke and Pepsi need to stop the deception and take responsibility for the plastic pollution problems" their products are causing, said Los Angeles County Board of Supervisors Chair Lindsey P. Horvath... Currently, just 9% of the world's plastics are recycled. The rest ends up being incinerated, sent to landfills, or discarded on the landscape, where they are often flushed into rivers or out to sea. At the same time, there is growing concern about the health and environmental consequences of microplastics — the bits of degraded plastic that slough off as the product ages, or is used, or washed. The tiny particles have been detected in every ecosystem on the planet that has been surveyed, as well as nearly every living organism examined... According to the county's statement, the two companies have consistently ranked as the world's "top plastic polluters...."

The beverage maker lawsuit was filed in Los Angeles Superior Court by County Counsel Dawyn R. Harrison on behalf of the people of the state of California... "The goal of this lawsuit is to stop the unfair and illegal conduct, to address the marketing practices that deceive consumers, and to force these businesses to change their practices to reduce the plastic pollution problem in the County and in California," Harrison said in a statement. "My office is committed to protecting the public from deceptive business practices and holding these companies accountable for their role in the plastic pollution crisis."

United States

Prosecutors Probe Hedge Fund Titan's Thriller For Clues in Argentina Hack Case (msn.com) 10

Jay Newman, who made billions for Elliott Management pursuing Argentina's defaulted debt, wrote a 2022 thriller about corrupt spies and hedge funds. Now federal prosecutors are examining parallels between his novel "Undermoney" and real-world events.

The investigation centers on Amit Forlit, an Israeli private investigator facing U.S. extradition charges for alleged email theft from Argentine officials during Elliott's sovereign debt battle. Prosecutors are probing whether Forlit's alleged $20 million hacking operation aided Elliott's eventual $2.2 billion settlement with Argentina. "There's not that much fiction in 'Undermoney,'" Newman told interviewers while promoting the book, which features Israeli operatives and hedge fund intrigue. Newman and Elliott deny any wrongdoing, with Newman calling suggestions of illegal activity "categorically false."

The probe is examining $20 million paid to a Forlit-controlled company via a consulting firm that worked for Elliott, according to court statements and people familiar with the matter. Forlit denied involvement in hacking during a 2022 deposition. Prosecutors are also investigating Forlit's work for ExxonMobil regarding climate change critics. Neither Elliott nor ExxonMobil has been accused of wrongdoing. Newman, who left Elliott in 2016 with a $70 million bonus after the Argentina settlement, met regularly with Forlit to discuss the Argentine case, WSJ has reported. His novel follows dark money trails through Washington power corridors and Wall Street trading floors, featuring Israeli operatives described as "expensive, but consistent."
Bitcoin

US Indicts 26-Year-Old Gotbit Founder For Market Manipulation (crypto.news) 21

The feds have indicted Aleksei Andriunin, a 26-year-old Russian national and founder of Gotbit, on charges of wire fraud and conspiracy to commit market manipulation. Crypto News reports: According to the U.S. Attorney's Office, the indictment alleges that Andriunin and his firm participated in a long-running scheme to artificially boost trading volumes for various cryptocurrency companies, including some based in the United States, to make them appear more popular and increase their trading value. Andriunin allegedly led these activities between 2018 and 2024 as Gotbit's CEO. He could face up to 20 years in prison, additional fines, and asset forfeiture if convicted, according to the U.S. Attorney's Office. Prosecutors say the scheme involved "wash trading," where the firm used its software to make fake trades that inflated a cryptocurrency's trading volume. This practice, called market manipulation, can mislead investors by giving the impression that demand for a particular cryptocurrency is higher than it actually is. Wash trades are illegal in traditional finance and are considered fraudulent because they deceive investors and manipulate market behavior.

Court documents also identify Gotbit's two directors, Fedor Kedrov and Qawi Jalili, as co-conspirators. The indictment claims Gotbit documented these activities in detailed records, tracking differences between genuine and artificial trading volumes. The firm allegedly pitched these services to prospective clients, explaining how Gotbit's tactics would bypass detection on public blockchains, where transactions are recorded transparently. The U.S. Department of Justice has announced that it seized over $25 million worth of cryptocurrency assets connected to these schemes and made four arrests across multiple firms.
If you've been following the crypto industry, you're probably familiar with "pump-and-dump" schemes that have popped up throughout the years. Although it's a form of market manipulation, it's not quite the same as "wash trading."

In a pump-and-dump scheme, the perpetrator artificially inflates the price of a security (often a low-priced or thinly traded stock) by spreading misleading or exaggerated information to attract other buyers, who then drive up the price. Once the price has risen due to increased demand, the manipulators "dump" their shares at the inflated price, selling to the new buyers and pocketing the profits. The price typically crashes after the dump, leaving unsuspecting investors with overvalued shares and significant losses.

Wash trading, on the other hand, involves simultaneously buying and selling of the same asset to create the illusion of higher trading volume and activity. The purpose is to mislead other investors about the asset's liquidity and demand, often giving the impression that it is more popular or actively traded than it actually is. Wash trades usually occur without real changes in ownership or price movement, as the buyer and seller may even be the same person or entity. This tactic can manipulate prices indirectly by creating a perception of interest, but it does not involve a direct inflation followed by a sell-off, like a pump-and-dump scheme.
News

Kremlin Says It Hopes $20.6 Decillion Fine Got Google's Attention (yahoo.com) 85

An enormous fine levied by a Russian court on Google caught the attention of the Kremlin -- which hopes Google will notice in turn. From a report: President Vladimir Putin's spokesman, Dmitri Peskov, commented on the sum on Thursday. It came after a court demanded payment equivalent of $20.6 decillion -- an almost incomprehensible figure that exceeds the world's GDP. The sum came from a penalty for suspending the YouTube accounts of various Russian outlets. It has been regularly doubling for years, with no limit, leading it into realms of the absurd, which Peskov seemed to acknowledge. "Although it is a specific amount, I cannot even pronounce this number, it is rather filled with symbolism," said Peskov in response to a question from NBC News.
The Courts

Russian Court Fines Google $20 Decillion For Blocking Media Content (theregister.com) 263

A Russian court has fined Google an astronomical sum of around $20 decillion for YouTube's blocking of Russian media channels tied to sanctioned entities. The amount compounds weekly as Google continues to disregard the ruling. The Register reports: To put that into perspective, the World Bank estimates global GDP as around $100 trillion, which is peanuts compared to the prospective fine. Google might be one of the most valuable businesses on the planet, but even if Sundar Pichai rummages around the back of the sofa he won't be able to raise the funds to pay the penalty. The bizarre amount has been calculated after a four-year court case that started after YouTube banned the ultra-nationalist Russian channel Tsargrad in 2020 in response to the US sanctions imposed against its owner. Following Putin's illegal invasion of Ukraine in 2022 more channels were added to the banned list and 17 stations are now suing the Chocolate Factory, including Zvezda (a TV channel owned by Putin's Ministry of Defence), according to local media.

"Google was called by a Russian court to administrative liability under Art. 13.41 of the Administrative Offenses Code for removing channels on the YouTube platform. The court ordered the company to restore these channels," lawyer Ivan Morozov told state media outlet TASS. The court imposed a fine of 100 thousand rubles ($1,025) per day, with the total fine doubling every week. Owing to compound interest (Einstein's eighth wonder of the world), Google is now on the hook for an insane amount of money, or what the judge on Monday called "a case in which there are many, many zeros."

AI

Robert Downey Jr. Threatens To Sue Over AI Recreations of His Likeness (variety.com) 62

Oscar winner Robert Downey Jr. has threatened legal action against future studio executives who attempt to recreate his likeness using AI. "I intend to sue all future executives just on spec," Downey said when asked about potential AI recreations of his performances. He dismissed concerns about Marvel Studios using his likeness without permission, citing trust in their leadership. During the interview, he criticized tech executives who position themselves as AI gatekeepers, calling it "a massive fucking error."
Software

Can the EU Hold Software Makers Liable For Negligence? (lawfaremedia.org) 132

When it comes to introducing liability for software products, "the EU and U.S. are taking very different approaches," according to Lawfare's cybersecurity newsletter. "While the U.S. kicks the can down the road, the EU is rolling a hand grenade down it to see what happens." Under the status quo, the software industry is extensively protected from liability for defects or issues, and this results in systemic underinvestment in product security. Authorities believe that by making software companies liable for damages when they peddle crapware, those companies will be motivated to improve product security... [T]he EU has chosen to set very stringent standards for product liability, apply them to people rather than companies, and let lawyers sort it all out.

Earlier this month, the EU Council issued a directive updating the EU's product liability law to treat software in the same way as any other product. Under this law, consumers can claim compensation for damages caused by defective products without having to prove the vendor was negligent or irresponsible. In addition to personal injury or property damages, for software products, damages may be awarded for the loss or destruction of data. Rather than define a minimum software development standard, the directive sets what we regard as the highest possible bar. Software makers can avoid liability if they prove a defect was not discoverable given the "objective state of scientific and technical knowledge" at the time the product was put on the market.

Although the directive is severe on software makers, its scope is narrow. It applies only to people (not companies), and damages for professional use are explicitly excluded. There is still scope for collective claims such as class actions, however. The directive isn't law itself but sets the legislative direction for EU member states, and they have two years to implement its provisions. The directive commits the European Commission to publicly collating court judgements based on the directive, so it will be easy to see how cases are proceeding.

Major software vendors used by the world's most important enterprises and governments are publishing comically vulnerable code without fear of any blowback whatsoever. So yes, the status quo needs change. Whether it needs a hand grenade lobbed at it is an open question. We'll have our answer soon.

Google

'We Took on Google and They Were Forced to Pay Billions' (bbc.com) 58

"Google essentially disappeared us from the internet," says the couple who created price-comparison site Foundem in 2006. Google's search results for "price comparison" and "comparison shopping" buried their site — for more than three years.

Today the BBC looks at their 15-year legal battle, which culminated with a then record €2.4 billion fine (£2 billion or $2.6 billion) for Google, which was deemed to have abused its market dominance. The case has been hailed as a landmark moment in the global regulation of Big Tech. Google spent seven years fighting that verdict, issued in June 2017, but in September this year Europe's top court — the European Court of Justice — rejected its appeals.

Speaking to Radio 4's The Bottom Line in their first interview since that final verdict, Shivaun and Adam explained that at first, they thought their website's faltering start had simply been a mistake. "We initially thought this was collateral damage, that we had been false positive detected as spam," says Shivaun, 55. "We just assumed we had to escalate to the right place and it would be overturned...." The couple sent Google numerous requests to have the restriction lifted but, more than two years later, nothing had changed and they said they received no response. Meanwhile, their website was "ranking completely normally" on other search engines, but that didn't really matter, according to Shivaun, as "everyone's using Google".

The couple would later discover that their site was not the only one to have been put at a disadvantage by Google — by the time the tech giant was found guilty and fined in 2017 there were around 20 claimants, including Kelkoo, Trivago and Yelp... In its 2017 judgement, the European Commission found that Google had illegally promoted its own comparison shopping service in search results, whilst demoting those of competitors... "I guess it was unfortunate for Google that they did it to us," Shivaun says. "We've both been brought up maybe under the delusion that we can make a difference, and we really don't like bullies."

Even Google's final defeat in the case last month did not spell the end for the couple. They believe Google's conduct remains anti-competitive and the EC is looking into it. In March this year, under its new Digital Markets Act, the commission opened an investigation into Google's parent company, Alphabet, over whether it continues to preference its own goods and services in search results... The Raffs are also pursuing a civil damages claim against Google, which is due to begin in the first half of 2026. But when, or if, a final victory comes for the couple it will likely be a Pyrrhic one — they were forced to close Foundem in 2016.

A spokesperson for Google told the BBC the 2024 judgment from the European Court of Justice only relates to "how we showed product results from 2008-2017. The changes we made in 2017 to comply with the European Commission's Shopping decision have worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services.

"For this reason, we continue to strongly contest the claims made by Foundem and will do so when the case is considered by the courts."

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