A federal judge has dismissed an antitrust lawsuit that accused Apple, Visa and Mastercard of conspiring to suppress competition in the payments network market and inflate merchant transaction fees.

U.S. District Judge David Dugan in Illinois ruled that merchants failed to provide sufficient evidence supporting claims that Apple illegally declined to launch a competing payment network to rival Visa and Mastercard.

The lawsuit, filed by beverage retailer Mirage Wine & Spirits and other businesses representing thousands of merchants, alleged the payment networks paid Apple hundreds of millions of dollars annually to avoid competition. Dugan found the plaintiffs offered only "a slew of circumstantial allegations" but permitted them to amend their complaint.

A federal appeals court struck down a "click-to-cancel" rule that would have required companies to make cancelling services as easy as signing up. The Federal Trade Commission rule was scheduled to take effect on July 14 but was vacated by the US Court of Appeals for the 8th Circuit. The three-judge panel ruled unanimously that the Biden-era FTC failed to follow the full rulemaking process required under US law.

The FTC is required to conduct a preliminary regulatory analysis when a rule has an estimated annual economic effect of $100 million or more. The FTC initially estimated the rule would not reach that threshold, but an administrative law judge later found compliance costs would exceed $100 million. Despite this finding, the FTC did not conduct the required preliminary analysis.

The Georgia Court of Appeals has overturned a trial court's order after finding it relied on court cases that do not exist, apparently generated by AI. The appellate court vacated the ruling in a divorce case involving Nimat Shahid's challenge to a divorce order granted to her husband Sufyan Esaam in July 2022.

"We are troubled by the citation of bogus cases in the trial court's order," the appeals court stated in its decision, which directs the lower court to revisit Shahid's petition. The court noted the errant citations appear to have been "drafted using generative AI" and were included in an order prepared by attorney Diana Lynch.

Lynch repeated the fabricated citations in her appeals briefs and expanded upon them after Shahid had challenged the fictitious cases. The appeals court found Lynch's briefs contained "11 bogus case citations out of 15 total, one of which was in support of a frivolous request for attorney fees." The court fined Lynch $2,500 for filing the frivolous motion.

Fubo has agreed to pay $3.4 million to settle a class-action lawsuit (PDF) accusing it of illegally sharing usersâ(TM) personally identifiable information and video viewing history with advertisers without consent, allegedly violating the Video Privacy Protection Act (VPPA). Ars Technica reports: As reported by Cord Cutters News this week, instead of going to trial, Fubo reached a settlement agreement [PDF] that allows people who used Fubo before May 29, which is when Fubo last updated its privacy policy, to receive part of a $3.4 million settlement. The settlement agreement received preliminary approval on May 29, and users recently started receiving notice of their potential entitlement to some of the settlement. They have until September 12 to submit claims. Fubo said in a statement: "We deny the allegations in the putative class lawsuit and specifically deny that we have engaged in any wrongdoing whatsoever. Fubo has nonetheless chosen to pursue a settlement for this matter in order to avoid the uncertainty and expense of litigation. We look forward to putting this matter behind us."

An anonymous reader quotes a report from Ars Technica: Epic Games, buoyed by the massive success of Fortnite, has spent the last few years throwing elbows in the mobile industry to get its app store on more phones. It scored an antitrust win against Google in late 2023, and the following year it went after Samsung for deploying "Auto Blocker" on its Android phones, which would make it harder for users to install the Epic Games Store. Now, the parties have settled the case just days before Samsung will unveil its latest phones.

The Epic Store drama began several years ago when the company defied Google and Apple rules about accepting outside payments in the mega-popular Fortnite. Both stores pulled the app, and Epic sued. Apple emerged victorious, with Fortnite only returning to the iPhone recently. Google, however, lost the case after Epic showed it worked behind the scenes to stymie the development of app stores like Epic's. Google is still working to avoid penalties in that long-running case, but Epic thought it smelled a conspiracy last year. It filed a similar lawsuit against Samsung, accusing it of implementing a feature to block third-party app stores. The issue comes down to the addition of a feature to Samsung phones called Auto Blocker, which is similar to Google's new Advanced Protection in Android 16. It protects against attacks over USB, disables link previews, and scans apps more often for malicious activity. Most importantly, it blocks app sideloading. Without sideloading, there's no way to install the Epic Games Store or any of the content inside it.

Auto Blocker is enabled by default on Samsung phones, but users can opt out during setup. Epic claimed in its suit that the sudden inclusion of this feature was a sign that Google was working with Samsung to stand in the way of alternative app stores again. Epic has apparently gotten what it wanted from Samsung -- CEO Tim Sweeney has announced that Epic is dropping the case in light of a new settlement. Sweeney said Samsung "will address Epic's concerns," without elaborating on the details. Samsung may stop making Auto Blocker the default or create a whitelist of apps, like the Epic Games Store, that can bypass Auto Blocker. Another possibility is that Epic and select third-party stores are granted special access while Auto Blocker remains on for others, balancing security and openness.

A "more interesting outcome," according to Ars, would be for Samsung to pre-install the Epic Games Store on its new phones.

Valve has achieved near-total dominance of PC gaming distribution through Steam, but the victory appears to have left the company adrift, Financial Times argues. The platform controls an estimated 70% of PC game sales while generating billions in revenue, yet Valve releases major new games at what observers call a "glacial pace."

Founder Gabe Newell has largely retreated from the company's operations, reportedly living at sea on one of his five ships and pursuing side projects like brain-computer interface startup Starfish Neuroscience. The much-anticipated third Half-Life game became "the video game equivalent of Samuel Beckett's Godot" before being quietly cancelled.

Attempts to challenge Steam have failed repeatedly. Epic Games Store, powered by Fortnite's success, "has failed to really impact Steam in any meaningful way," according to industry analysts. Microsoft runs what analysts describe as a "somewhat unambitious store," while EA shut down its Origin launcher earlier this year. Gaming analyst Michael Pachter notes that major tech companies could displace Valve "but nobody cares" enough to mount a serious challenge.

Court documents suggest Steam's revenues will exceed $10 billion next year, leaving Valve with unprecedented profits but unclear direction for a company that appears to have run out of worlds to conquer.

A politically motivated hacker breached Columbia University's IT systems, stealing vast amounts of sensitive student and employee data -- including admissions decisions and Social Security numbers. The Record reports: The hacker reportedly provided Bloomberg News with 1.6 gigabytes of data they claimed to have stolen from the university, including information from 2.5 million applications going back decades. The stolen data the outlet reviewed reportedly contains details on whether applicants were rejected or accepted, their citizenship status, their university ID numbers and which academic programs they sought admission to. While the hacker's claims have not been independently verified, Bloomberg said it compared data provided by the hacker to that belonging to eight Columbia applicants seeking admission between 2019 and 2024 and found it matched.

The threat actor reportedly told Bloomberg he was seeking information that would indicate whether the university continues to use affirmative action in admissions despite a 2023 Supreme Court decision prohibiting the practice. The hacker told Bloomberg he obtained 460 gigabytes of data in total -- after spending two months targeting and penetrating increasingly privileged layers of the university's servers -- and said he harvested information about financial aid packages, employee pay and at least 1.8 million Social Security numbers belonging to employees, applicants, students and their family members.

An anonymous reader quotes a report from Ars Technica: Last week, OpenAI raised objections in court, hoping to overturn a court order requiring the AI company to retain all ChatGPT logs "indefinitely," including deleted and temporary chats. But Sidney Stein, the US district judge reviewing OpenAI's request, immediately denied OpenAI's objections. He was seemingly unmoved by the company's claims that the order forced OpenAI to abandon "long-standing privacy norms" and weaken privacy protections that users expect based on ChatGPT's terms of service. Rather, Stein suggested that OpenAI's user agreement specified that their data could be retained as part of a legal process, which Stein said is exactly what is happening now.

The order was issued by magistrate judge Ona Wang just days after news organizations, led by The New York Times, requested it. The news plaintiffs claimed the order was urgently needed to preserve potential evidence in their copyright case, alleging that ChatGPT users are likely to delete chats where they attempted to use the chatbot to skirt paywalls to access news content. A spokesperson told Ars that OpenAI plans to "keep fighting" the order, but the ChatGPT maker seems to have few options left. They could possibly petition the Second Circuit Court of Appeals for a rarely granted emergency order that could intervene to block Wang's order, but the appeals court would have to consider Wang's order an extraordinary abuse of discretion for OpenAI to win that fight.

In the meantime, OpenAI is negotiating a process that will allow news plaintiffs to search through the retained data. Perhaps the sooner that process begins, the sooner the data will be deleted. And that possibility puts OpenAI in the difficult position of having to choose between either caving to some data collection to stop retaining data as soon as possible or prolonging the fight over the order and potentially putting more users' private conversations at risk of exposure through litigation or, worse, a data breach. [...]

Both sides are negotiating the exact process for searching through the chat logs, with both parties seemingly hoping to minimize the amount of time the chat logs will be preserved. For OpenAI, sharing the logs risks revealing instances of infringing outputs that could further spike damages in the case. The logs could also expose how often outputs attribute misinformation to news plaintiffs. But for news plaintiffs, accessing the logs is not considered key to their case -- perhaps providing additional examples of copying -- but could help news organizations argue that ChatGPT dilutes the market for their content. That could weigh against the fair use argument, as a judge opined in a recent ruling that evidence of market dilution could tip an AI copyright case in favor of plaintiffs.

Apple has filed (PDF) a lawsuit against former Vision Pro engineer Di Liu, accusing him of stealing thousands of confidential files related to his work on Apple's augmented reality headset for the benefit of his new employer Snap. The company alleges Liu misled colleagues about his departure, secretly accepted a job offer from Snap, and attempted to cover his tracks by deleting files -- actions Apple claims violated his confidentiality agreement. The Register reports: Liu secretly received a job offer from Snap on October 18, 2024, a role the complaint describes as "substantially similar" to his Apple position, meaning Liu waited nearly two weeks to resign from Apple, per the lawsuit. "Even then, he did not disclose he was leaving for Snap," the suit said. "Apple would not have allowed Mr. Liu continued access had he told the truth." Liu allegedly copied "more than a dozen folders containing thousands of files" from Apple's filesystem to a personal cloud storage account, dropping the stolen bits in a pair of nested folders with the amazingly nondescript names "Personal" and "Knowledge."

Apple said that data Liu copied includes "filenames containing confidential Apple product code names" and files "marked as Apple confidential." Company research, product design, and supply chain management documents were among the content Liu is accused of stealing. The complaint also alleges that Liu deleted files to conceal his activities, a move that may hinder Apple's ability to determine the full scope of the data he exfiltrated. "Mr. Liu additionally took actions to conceal his theft, including deceiving Apple about his job at Snap, and deleting files from his Apple-issued computer that might have let Apple determine what data Mr. Liu stole," the complaint noted.

Whatever he has, Apple wants it back. The company demands a jury trial on a single count of breach of contract under a confidentiality and intellectual property agreement Liu was bound to. It also asks the court to compel Liu to return all misappropriated data, award damages to be determined at trial, and reimburse Apple's costs and attorneys' fees.

Encrypted communications provider Proton has joined an antitrust lawsuit against Apple, filing a legal complaint that claims the company's App Store practices harm developers, consumers, and privacy. The Switzerland-based firm joined a group of Korean developers who sued Apple in May rather than filing a separate case.

Proton asked the US District Court for Northern California to require Apple to allow alternative app stores, expose those stores through its own App Store, permit developers to disable Apple's in-app payment system, and provide full access to Apple APIs. The company added a privacy-focused argument to typical antitrust complaints, contending that Apple's pricing model particularly penalizes companies that refuse to harvest user data. Developers of free apps typically sell user data to cover costs, while privacy-focused companies like Proton must charge subscriptions for revenue, making Apple's commission cuts more burdensome.

An anonymous reader quotes a report from TechCrunch: The U.S. Department of Justice announced on Monday that it had taken several enforcement actions against North Korea's money-making operations, which rely on undercover remote IT workers inside American tech companies to raise funds for the regime's nuclear weapons program, as well as to steal data and cryptocurrency. As part of the DOJ's multi-state effort, the government announced the arrest and indictment of U.S. national Zhenxing "Danny" Wang, who allegedly ran a years-long fraud scheme from New Jersey to sneak remote North Korean IT workers inside U.S. tech companies. According to the indictment, the scheme generated more than $5 million in revenue for the North Korean regime. [...]

From 2021 until 2024, the co-conspirators allegedly impersonated more than 80 U.S. individuals to get remote jobs at more than 100 American companies, causing $3 million in damages due to legal fees, data breach remediation efforts, and more. The group is said to have run laptop farms inside the United States, which the North Korean IT workers could essentially use as proxies to hide their provenance, according to the DOJ. At times, they used hardware devices known as keyboard-video-mouse (KVM) switches, which allow one person to control multiple computers from a single keyboard and mouse. The group allegedly also ran shell companies inside the U.S. to make it seem like the North Korean IT workers were affiliated with legitimate local companies, and to receive money that would then be transferred abroad, the DOJ said.

The fraudulent scheme allegedly also involved the North Korean workers stealing sensitive data, such as source code, from the companies they were working for, such as from an unnamed California-based defense contractor "that develops artificial intelligence-powered equipment and technologies."

Oracle has signed a landmark $30 billion annual cloud deal -- nearly triple the size of its current cloud infrastructure business -- with revenue expected to begin in fiscal year 2028. The deal was disclosed in a regulatory filing Monday without the customer being named. Bloomberg reports: "Oracle is off to a strong start" in its fiscal year 2026, Chief Executive Officer Safra Catz said in the filing. The company has signed "multiple large cloud services agreements," she said, adding that revenue from Oracle's namesake database that runs on other clouds continues to grow more than 100%.

The $30-billion deal ranks among the largest cloud contracts on record. That revenue alone would represent nearly three times the size of Oracle's current infrastructure business, which totaled $10.3 billion over the past four quarters. A major cloud contract awarded in 2022 from the US Defense Department, that runs through 2028 and could be worth as much as $9 billion, is split among four companies, including Oracle. That award was a shift after an earlier contract worth $10 billion was awarded to Microsoft and was contested in court.

Apple must face the U.S. Department of Justice's lawsuit accusing the iPhone maker of unlawfully dominating the U.S. smartphone market, a judge ruled on Monday. From a report: U.S. District Judge Julien Neals in Newark, New Jersey, denied Apple's motion to dismiss the lawsuit accusing the company of using restrictions on third-party app and device developers to keep users from switching to competitors and unlawfully dominate the market.

The decision would allow the case to go forward in what could be a years-long fight for Apple against enforcers' attempt to lower what they say are barriers to competition with Apple's iPhone.

Steven J. Vaughan-Nichols writes in an opinion piece for The Register: Microsoft, tactically admitting it has failed at talking all the Windows 10 PC users into moving to Windows 11 after all, is -- sort of, kind of -- extending Windows 10 support for another year. For most users, that means they'll need to subscribe to Microsoft 365. This, in turn, means their data and meta-information will be kept in a US-based datacenter. That isn't sitting so well with many European Union (EU) organizations and companies. It doesn't sit that well with me or a lot of other people either.

A few years back, I wrote in these very pages that Microsoft didn't want you so much to buy Windows as subscribe to its cloud services and keep your data on its servers. If you wanted a real desktop operating system, Linux would be almost your only choice. Nothing has changed since then, except that folks are getting a wee bit more concerned about their privacy now that President Donald Trump is in charge of the US. You may have noticed that he and his regime love getting their hands on other people's data.

Privacy isn't the only issue. Can you trust Microsoft to deliver on its service promises under American political pressure? Ask the EU-based International Criminal Court (ICC) which after it issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu for war crimes, Trump imposed sanctions on the ICC. Soon afterward, ICC's chief prosecutor, Karim Khan, was reportedly locked out of his Microsoft email accounts. Coincidence? Some think not. Microsoft denies they had anything to do with this.

Peter Ganten, chairman of the German-based Open-Source Business Alliance (OSBA), opined that these sanctions ordered by the US which he alleged had been implemented by Microsoft "must be a wake-up call for all those responsible for the secure availability of state and private IT and communication infrastructures." Microsoft chairman and general counsel, Brad Smith, had promised that it would stand behind its EU customers against political pressure. In the aftermath of the ICC reports, Smith declared Microsoft had not been "in any way [involved in] the cessation of services to the ICC." In the meantime, if you want to reach Khan, you'll find him on the privacy-first Swiss email provider, ProtonMail.

In short, besides all the other good reasons for people switching to the Linux desktop - security, Linux is now easy to use, and, thanks to Steam, you can do serious gaming on Linux - privacy has become much more critical. That's why several EU governments have decided that moving to the Linux desktop makes a lot of sense... Besides, all these governments know that switching from Windows 10 to 11 isn't cheap. While finances also play a role, and I always believe in "following the money" when it comes to such software decisions, there's no question that Europe is worried about just how trustworthy America and its companies are these days. Do you blame them? I don't. The shift to the Linux desktop is "nothing new," as Vaughan-Nichols notes. Munich launched its LiMux project back in 2004 and, despite ending it in 2017, reignited its open-source commitment by establishing a dedicated program office in 2024. In France, the gendarmerie now operates over 100,000 computers on a custom Ubuntu-based OS (GendBuntu), while the city of Lyon is transitioning to Linux and PostgreSQL.

More recently, Denmark announced it is dropping Windows and Office in favor of Linux and LibreOffice, citing digital sovereignty. The German state of Schleswig-Holstein is following suit, also moving away from Microsoft software. Meanwhile, a pan-European Linux OS (EU OS) based on Fedora Kinoite is being explored, with Linux Mint and openSUSE among the alternatives under consideration.

The Supreme Court ruled Friday that the FCC's Universal Service Fund can continue operating, rejecting claims that the program's funding mechanism violates the Constitution. In a 6-3 decision written by Justice Elena Kagan, the court found that Congress did not exceed its authority when it enacted the 1996 law establishing the fund and that the FCC could delegate administration to a private corporation. The Universal Service Fund subsidizes telecommunications services for low-income consumers, rural health care providers, schools and libraries through fees generally passed on to customers that raise billions of dollars annually.

The program is administered by the Universal Service Administrative Company, a nonprofit the FCC designated to run the fund. Conservative advocacy group Consumers' Research challenged the structure, arguing that "a private company is taxing Americans in amounts that total billions of dollars every year, under penalty of law, without true governmental accountability."

The Fifth Circuit Court of Appeals ruled in favor of Consumers' Research, prompting the FCC to petition the Supreme Court for review. Kagan wrote that Congress "sufficiently guided and constrained the discretion that it lodged with the FCC to implement the universal-service contribution scheme," adding that the FCC "retained all decision-making authority within that sphere." She concluded that "nothing in those arrangements, either separately or together, violates the Constitution." The challengers argued the program violates the "nondelegation doctrine," a conservative legal theory that says Congress has limited powers to delegate its lawmaking authority to the executive branch.

Brazil's supreme court has ruled that social media platforms can be held legally responsible for their users' posts. From a report: Companies such as Facebook, TikTok and X will have to act immediately to remove material such as hate speech, incitement to violence or "anti-democratic acts," even without a prior judicial takedown order, as a result of the decision in Latin America's largest nation late on Thursday.

theodp writes: FWD.us, the immigration and criminal justice-focused nonprofit of Meta CEO Mark Zuckerberg -- the world's third richest person, according to Forbes with an estimated $250B net worth -- has released a new research report warning that announced immigration policies will hurt American families, who can't afford it with their meager savings.

The report begins: "Inflation remains a top concern for the majority of Americans. But new immigration policies announced by President Trump, and already underway, such as revoking immigrant work permits, deporting millions of people, and limiting legal immigration, would directly undermine the goal to level out, or even lower, the costs of everyday and essential goods and services. In fact, all Americans, particularly working-class families, are about to unnecessarily see prices for goods and services like food and housing increase substantially again, above and beyond other economic policies like global tariffs that could also raise prices. Announced immigration policies will result in American families paying an additional $2,150 for goods and services each year by the end of 2028, or the equivalent of the average American family's grocery bill for 3 months or their combined electricity and gas bills for the entire year. Such an annual increase would represent a tax that would erase many American families' annual savings, and amount to one of their bi-weekly paychecks each year. Unlike past periods of inflation, Americans have not been saving at the same rate as earlier years, and can't as easily absorb these price increases, squeezing American budgets even further."

In 2021, Zuckerberg's FWD.us teamed with the nation's tech giants to file a brief with the Supreme Court case to help crush WashTech (a tiny programmers' union), who challenged the lawfulness of hiring international students under the Optional Practical Training (OPT) program. "Striking down OPT and STEM OPT," FWD.us and its tech giant partners argued in their filing, [PDF] "would create a sudden labor shortage in the United States for many companies' most important technical jobs" and "hurt U.S. workers." The brief also dismissed WashTech's contention that the programs coupled with a talent surplus would shut U.S. workers out of the labor market, citing Microsoft's President Brad Smith's claim of an acute talent shortage and a 2.4% unemployment rate for computer occupations (that was then, this is now).

Microsoft has been hit with a lawsuit by a group of authors who claim the company used their books without permission to train its Megatron artificial intelligence model. From a report: Kai Bird, Jia Tolentino, Daniel Okrent and several others alleged that Microsoft used pirated digital versions of their books to teach its AI to respond to human prompts. Their lawsuit, filed in New York federal court on Tuesday, is one of several high-stakes cases brought by authors, news outlets and other copyright holders against tech companies including Meta Platforms, Anthropic and Microsoft-backed OpenAI over alleged misuse of their material in AI training.

[...] The writers alleged in the complaint that Microsoft used a collection of nearly 200,000 pirated books to train Megatron, an algorithm that gives text responses to user prompts.

Psylo, a new privacy-focused iOS browser by Mysk, aims to defeat digital fingerprinting by isolating each browser tab with its own IP address, unique fingerprinting defenses, and proxy-based encryption. "Psylo stands out as it is the only WebKit-based iOS browser that truly isolates tabs," Tommy Mysk told The Register. "It's not only about separate storage and cookies. Psylo goes beyond that."

"This is why we call tabs 'silos.' It applies unique anti-fingerprinting measures per silo, such as canvas randomization. This way two Psylo tabs opening the same website would appear as though they originated on two different devices to the opened website." From the report: The company claims Psylo therefore offers better privacy than a VPN because the virtual networks mask the user's IP address but generally don't alter the data used for fingerprinting. Psylo, for example, will adjust the browser's time zone and browser language to match the geolocation of each proxy, resulting in more entropy that means fingerprints created by gathering data from silos will appear to be different.

The Mysk devs' post states that some privacy-focused browsers like Brave also implement anti-fingerprinting measures like canvas randomization, but those are more effective on the desktop macOS app due to Apple's iOS restrictions. They claim that they were able to achieve better results on iOS by using a client-side JavaScript solution. Mysk designed Psylo to minimize the information available to its maker. It doesn't log personally identifiable information or browsing data that the curious could use to identify the user, the company claims, noting that it also doesn't have customer payment information, which is handled by Apple. There are no user accounts, only randomized identifiers to indicate active subscriptions. According to Tommy Mysk, the only subscriber data kept is bandwidth usage, which is necessary to prevent abuse.

"We aggregate bandwidth usage based on a randomly generated ID that is created when a subscription is made," Mysk said. "The randomly generated ID is associated with the Apple subscription transaction. Apple doesn't share the identity of users making App Store purchases with developers." Asked whether Apple could identify users, Mysk said, "Theoretically and given a court order, Apple can figure out the randomly generated ID of the user in question. If we were to hand out the data associated with the randomly generated ID, it would only be the bandwidth usage of that user in the current month, and two months in the past. Older data is automatically deleted. "We don't associate any identifiable information with the randomly generated ID. We don't store IP addresses at all in every component of our system. We don't store websites visited by our users at all." The browser is only available on iOS and iPadOS, but Mysk says an Android version could be developed if there's enough interest. It costs $9.99 per month or $99 per year in the U.S.

Western Digital has succeeded in having the sum it owed from a patent infringement case reduced from $553 million down to just $1 in post-trial motions, when the judge found the plaintiff's claims had shifted during the course of the litigation. From a report: The storage biz was held by a California jury to have infringed on data encryption patents owned by SPEX Technologies Inc in October, relating to several of its self-encrypting hard drive products.

WD was initially told to pay $316 million in damages, but District Judge James Selna ruled the company owed a further $237 million in interest charges earlier this year, bringing the total to more than half a billion dollars. In February, WD was given a week to file a bond or stump up the entire damages payment. Selna granted Western Digital's post-trial motion to reduce damages, writing that "SPEX's damages theory changed as certain evidence and theories became unavailable" and there was "insufficient evidence from which the Court could determine a reasonable royalty."