Legal Archive

EU finds Luxembourg gave illegal tax benefits to Amazon

The European Commission has concluded that Luxembourg granted undue tax benefits to Amazon of around €250 million. This is illegal under EU State aid rules because it allowed Amazon to pay substantially less tax than other businesses. Luxembourg must now recover the illegal aid.

Remember when Tim Cook lied about the EU only going after Apple because Apple is big? Apple's illegal deal with Ireland is just one on a long, long list of illegal deals the EU is cracking down on.

Anyway, speaking of the 13 billion euro Apple stole from EU citizens:

The European Commission has decided to refer Ireland to the European Court of Justice for failing to recover from Apple illegal State aid worth up to €13 billion, as required by a Commission decision.

Today, more than one year after the Commission's decision, Ireland has still not recovered any of the illegal aid. Furthermore, although Ireland has made progress on the calculation of the exact amount of the illegal aid granted to Apple, it is only planning to conclude this work by March 2018 at the earliest.

The crackdown on these illegal tax deals hopefully only represents the first step in cracking down on the grotesquely questionable conduct of large technology (and other sectors) companies. Backroom deals between governments and powerful corporations so they can effectively avoid paying any taxes while the rest of us do our civic duty by paying our taxes to pay for our schools, roads, hospitals, police, firefighters, and so on are a travesty.

If Apple, Amazon, Google, and others want to make use of the juicy fruits of European welfare states, they better start paying their fair share.

Apple and Qualcomm’s billion-dollar war over an $18 part

Within a matter of weeks, Qualcomm, which had been valued at more than $100 billion in December 2016, had lost a quarter of its market capitalization, an outcome that Qualcomm executives say was Apple's intent all along. "Apple's game plan is to squeeze people until they finally say, 'OK, the pressure's too hard. I'll just take a deal,'" said Derek Aberle, then Qualcomm's president and the company's chief negotiator, in an interview in July. Apple, on the other hand, presents the dispute as a matter of fairness. "It's not that we can't pay," Sewell says. "It's that we shouldn't have to pay."

The case, which could go to trial in a San Diego federal court as early as next year, could have a profound impact on the mobile phone business. A Qualcomm win would hamper Apple’s efforts to cut costs and preserve margins that have allowed it to capture most of the profits generated by smartphone makers worldwide. If Apple wins and succeeds in ending the Qualcomm tax, that could marginalize one of the most powerful American technology companies and upend the balance of power in the semiconductor industry.

I have zero sympathy for either of these two companies. I literally cannot find a single fournication to give.

The dystopia we signed up for

The world has become like an eerily banal dystopian novel. Things look the same on the surface, but they are not. With no apparent boundaries on how algorithms can use and abuse the data that's being collected about us, the potential for it to control our lives is ever-growing.

Our drivers' licenses, our keys, our debit and credit cards are all important parts of our lives. Even our social media accounts could soon become crucial components of being fully functional members of society. Now that we live in this world, we must figure out how to maintain our connection with society without surrendering to automated processes that we can neither see nor control.

Data of 143 million Americans stolen from Equifax

Equifax Inc. today announced a cybersecurity incident potentially impacting approximately 143 million U.S. consumers. Criminals exploited a U.S. website application vulnerability to gain access to certain files. Based on the company's investigation, the unauthorized access occurred from mid-May through July 2017. The company has found no evidence of unauthorized activity on Equifax's core consumer or commercial credit reporting databases.

Names, social security numbers, birthdays, addresses, driver's license numbers, credit card numbers - this is a very big breach.

Interestingly enough, three executives of the credit reporting agency sold their shares in the company days after the breach was discovered.

EC hits Google with record 2.42 billion EUR fine

The European Commission has fined Google €2.42 billion for breaching EU antitrust rules. Google has abused its market dominance as a search engine by giving an illegal advantage to another Google product, its comparison shopping service.

The company must now end the conduct within 90 days or face penalty payments of up to 5% of the average daily worldwide turnover of Alphabet, Google's parent company.

The two core offences as noted by the European Comission are as follows:

From 2008, Google began to implement in European markets a fundamental change in strategy to push its comparison shopping service. This strategy relied on Google's dominance in general internet search, instead of competition on the merits in comparison shopping markets:

  • Google has systematically given prominent placement to its own comparison shopping service: when a consumer enters a query into the Google search engine in relation to which Google's comparison shopping service wants to show results, these are displayed at or near the top of the search results.
  • Google has demoted rival comparison shopping services in its search results: rival comparison shopping services appear in Google's search results on the basis of Google's generic search algorithms. Google has included a number of criteria in these algorithms, as a result of which rival comparison shopping services are demoted. Evidence shows that even the most highly ranked rival service appears on average only on page four of Google's search results, and others appear even further down. Google's own comparison shopping service is not subject to Google's generic search algorithms, including such demotions.

As a result, Google's comparison shopping service is much more visible to consumers in Google's search results, whilst rival comparison shopping services are much less visible.

Much like Apple's and Ireland's illegal tax deal, fines like this can be easily avoided: respect the laws regarding doing business in the EU. I don't expect the current (or the previous, for that matter) US administration to keep these incredibly powerful tech giants in check, so I guess it's up to the EU.

Website used Zillow photos to mock bad design; Zillow may sue

Cyrus Farivar, for Ars:

An architecture blogger has temporarily disabled her website, McMansionHell.com, after receiving a demand letter from Zillow and posting it on Twitter.

On Monday, Zillow threatened to sue Kate Wagner, saying that that she was violating its terms of use, copyright law, and possibly the Computer Fraud and Abuse Act because she took images from the company's website without permission. However, on each of her posts, she acknowledged that the images came from Zillow and were posted under the fair use doctrine, as she was providing (often humorous) commentary on various architectural styles. Her website was featured on the design podcast 99% Invisible in October 2016.

Confusingly, Zillow does not even own the images in question. Instead, Zillow licenses them from the rights holders. As such, it remains unclear why the company would have standing to bring a lawsuit against Wagner.

Her website is incredibly entertaining, and you'd think such use of photos falls squarely under fair use. It sucks that she had to shutdown her website, and I'm hoping Zillow loses this case hard.

Trump administration approves social media checks

The Trump administration has rolled out a new questionnaire for U.S. visa applicants worldwide that asks for social media handles for the last five years and biographical information going back 15 years.

Under the new procedures, consular officials can request all prior passport numbers, five years' worth of social media handles, email addresses and phone numbers and 15 years of biographical information including addresses, employment and travel history.

While the new questions are voluntary, the form says failure to provide the information may delay or prevent the processing of an individual visa application.

This surely won't affect the countless incredibly smart scientists and engineers wanting to work in the US and contribute to the US economy.

People are demanding ransom from CD Projekt Red

CD Projekt Red, the company behind the popular Witcher series of videogames, put out a statement earlier today that individuals have stolen internal documents, and threaten to release them online if ransom isn't paid.

A demand for ransom has been made, saying that should we not comply, the files will be released to the general public. We will not be giving in to the demands of the individual or individuals that have contacted us, which might eventually lead to the files being published online. The appropriate legal authorities will be informed about the situation.

I haven't before seen a company being this open about something like this. It seems like a good strategy - with this statement, they're basically preemptively making the documents rather valueless. Pretty much the entire gaming community has very warm feelings towards CDPR - and rightfully so - so the individuals in question are left with empty hands here.

Clever.

US top court tightens patent suit rules in blow to patent trolls

The U.S. Supreme Court on Monday tightened rules for where patent lawsuits can be filed in a decision that may make it harder for so-called patent "trolls" to launch sometimes dodgy patent cases in friendly courts, a major irritant for high-tech giants like Apple and Alphabet Inc's Google.

In a decision that upends 27 years of law governing patent infringement cases, the justices sided with beverage flavoring company TC Heartland LLC in its legal battle with food and beverage company Kraft Heinz Co. The justices ruled 8-0 that patent suits can be filed only in courts located in the jurisdiction where the targeted company is incorporated.

Good. That district in Texas is screwed.

EU to tackle complaints over tech companies’ trading practices

European companies such as Spotify, Rocket Internet and Deezer have complained that online platforms - such as search engines and app stores - abuse their position as gateways to customers to promote their own services or impose imbalanced terms and conditions.

The Commission said that initial findings of an investigation launched last year showed platforms were delisting products or services without due notice, restricting access to data or not making search result rankings transparent enough.

The Commission wants to establish fair practice criteria, measures to improve transparency and a system to help to resolve disputes.

Platforms like iOS and Android are now often the primary way through which people communicate and find information, making them de facto gatekeepers of the internet. Since the internet is now an integral and crucial part of our life - paying taxes, searching for jobs, buying/maintaining crucial insurance, etc. - we can't let access to it remain in the hands of companies with consumer-hostile interests such as Apple and Google. I'm glad the EU is looking into this.

As for Apple's and Google's complaints - cry me a river.

Is it time to break up the major tech companies?

The original headline (I changed it) is clickbaity, but the article raises good points.

In just 10 years, the world's five largest companies by market capitalization have all changed, save for one: Microsoft. Exxon Mobil, General Electric, Citigroup and Shell Oil are out and Apple, Alphabet (the parent company of Google), Amazon and Facebook have taken their place.

They're all tech companies, and each dominates its corner of the industry: Google has an 88 percent market share in search advertising, Facebook (and its subsidiaries Instagram, WhatsApp and Messenger) owns 77 percent of mobile social traffic and Amazon has a 74 percent share in the e-book market. In classic economic terms, all three are monopolies.

We have been transported back to the early 20th century, when arguments about "the curse of bigness" were advanced by President Woodrow Wilson's counselor, Louis Brandeis, before Wilson appointed him to the Supreme Court. Brandeis wanted to eliminate monopolies, because (in the words of his biographer Melvin Urofsky) "in a democratic society the existence of large centers of private power is dangerous to the continuing vitality of a free people." We need look no further than the conduct of the largest banks in the 2008 financial crisis or the role that Facebook and Google play in the "fake news" business to know that Brandeis was right.

Any entity which becomes a threat to the well-being of our society, our planet, or the people on it must be dealt with. I'm not quite sure if e.g. Google or Apple qualify for that, and if they do, how to deal with that, but I sure as hell do not wish to live in a society where any one corporation is more powerful than the people.

John Deere: only corporations can own property

John Deere has turned itself into the poster-child for the DMCA, fighting farmers who say they want to fix their own tractors and access their data by saying that doing so violates the 1998 law's prohibition on bypassing copyright locks.

Deere's just reiterated that position to a US Copyright Office inquiry on the future of the law, joined by auto manufacturers (but not Tesla) and many other giant corporations, all of them arguing that since the gadgets you buy have software, and since that software is licensed, not sold, you don't really own any of that stuff. You are a licensee, and you have to use the gadget according to the license terms, which spell out where you have to buy your service, parts, consumables, apps, and so on.

This is finally a moment where without a doubt I can be all smug and entirely unhelpful by saying I do not use any stuff made by John Deere.

There are now 11 states considering ‘right to repair’ bills

The right to repair movement is spreading. In recent weeks legislators in Iowa, Missouri, and North Carolina have introduced bills that would make it easier for you to fix your electronics, joining eight other states that introduced right-to-repair legislation earlier this year.

The bills would require manufacturers to sell replacement parts to consumers and independent repair companies and would also require them to open source diagnostic manuals. It would also give independent repair professionals the ability to bypass software locks that prevent repairs, allowing them to return a gadget back to its factory settings.

No-brainer laws in any functioning democracy. I hope these US states show the way, so other states - and hopefully, other countries - will follow.

US passes bill to allow ISPs to sell users’ browser history

The United States, a country in North-America bogged down by extensive corruption, just passed a bill allowing ISPs to share and sell users' browsing history without their consent.

Internet providers now just need a signature from President Trump before they’re free to take, share, and even sell your web browsing history without your permission.

The House of Representatives passed a resolution today overturning an Obama-era FCC rule that required internet providers to get customers' permission before sharing their browsing history with other companies. The rules also required internet providers to protect that data from hackers and inform customers of any breaches.

The corrupt US senator who sponsored this clearly atrocious bill, Marsha Blackburn, from an area in the southern part of the country called Tennessee, received 693,000 US dollar in bribes from AT&T, Comcast, Verizon, and other related companies who operate in the country's dysfunctional telecommunications sector.

In the United States, officially a representative democracy, it is entirely normal for high-level figures - up to and including the president of the troubled nation, a man named Donald Trump - to receive vast sums of money to enact laws written by corporations, regardless of their effects on civil liberties or the poor and needy people of the country.

Americans, as citizens of the nation are called, often lack access to basic necessities such as healthcare, parental leave, clean drinking water, high-quality infrastructure, and so on. This is in spite of the country's vast natural resources and wealth, to which only a few percent of the country's population of 320 million have access to.

“Samsung, corruption, and you”

But the mood is different in South Korea these days. There's always been public opposition to corruption and nepotism in the country's chaebol conglomerates, but the country has never seen anything like the massive protests that swept the streets last year and helped drive President Park's approval rating down to four percent. In a climate like this, where widespread outrage can lead to the impeachment of a president, even a Samsung chairman might have reason to worry.

When a Korean, Chinese, African, or South-American man gives money to politicians in exchange for favours, we call it corruption. When a western man gives money to politicians in exchange for favours, we call it lobbying.

Language shapes perception.

Source: Apple will fight ‘right to repair’ legislation

Apple is planning to fight proposed electronics "Right to Repair" legislation being considered by the Nebraska state legislature, according to a source within the legislature who is familiar with the bill's path through the statehouse.

The legislation would require Apple and other electronics manufacturers to sell repair parts to consumers and independent repair shops, and would require manufacturers to make diagnostic and service manuals available to the public.

This is completely normal in the automotive sector, and I see no reason why the tech sector should be any different.

What Vizio was doing behind the TV screen

What did Vizio know about what was going on in the privacy of consumers' homes? On a second-by-second basis, Vizio collected a selection of pixels on the screen that it matched to a database of TV, movie, and commercial content. What's more, Vizio identified viewing data from cable or broadband service providers, set-top boxes, streaming devices, DVD players, and over-the-air broadcasts. Add it all up and Vizio captured as many as 100 billion data points each day from millions of TVs.

Vizio then turned that mountain of data into cash by selling consumers' viewing histories to advertisers and others. And let’s be clear: We're not talking about summary information about national viewing trends. According to the complaint, Vizio got personal. The company provided consumers' IP addresses to data aggregators, who then matched the address with an individual consumer or household. Vizio's contracts with third parties prohibited the re-identification of consumers and households by name, but allowed a host of other personal details - for example, sex, age, income, marital status, household size, education, and home ownership. And Vizio permitted these companies to track and target its consumers across devices.

That's... That's a lot of very creepy spying.

States move to protect their data from the Trump regime

In the days after Donald Trump won November's presidential election, immigration and civil liberties advocates began assessing how the new president might carry out his promises to create a registry of Muslims and deport millions of undocumented immigrants. Almost immediately, it became clear the Trump administration would need data, and a lot of it, in order to not only peg people's religious affiliation and immigration status but also allow federal agents to verify their identities and track their whereabouts. Information that could be used for such purposes is collected and stored by a variety of state agencies that issue driver's licenses, dispense public assistance, and enforce laws.

In Washington state, The Verge has learned, Democratic governor Jay Inslee has directed members of his policy and legal staff to work with a handful of state agencies to identify data that could be utilized by Trump’s deportation officials, and how, if possible, to shield any such information from federal authorities engaging in mass deportation. In California and New York, Democratic lawmakers have proposed legislation to block state data from federal immigration authorities. Democratic legislators have also proposed bills in Washington state, California, New York, and Massachusetts that would prevent state data from being used by federal authorities to build a registry of people belonging to a certain religion.

The Republican party, Trump, and its supporters are avid advocates of states' rights, so I'm sure the Republican Trump regime will welcome these moves with open arms.

Samsung heir faces arrest on charges of bribery

The sprawling investigation into President Park Geun-hye of South Korea took a dramatic turn on Monday with word that prosecutors were seeking the arrest of the de facto head of Samsung, one of the world's largest conglomerates, on charges that he bribed the president and her secretive confidante.

Nobody should be able to escape justice - not even CEOs. I know of a few others who need to follow in Lee's footsteps.

FaceTime blamed for girl’s highway crash death in lawsuit

Apple, maker of the ever-popular iPhone, is being sued on allegations that its FaceTime app contributed to the highway death of a 5-year-old girl named Moriah Modisette. In Denton County, Texas, on Christmas Eve 2014, a man smashed into the Modisette family's Toyota Camry as it stopped in traffic on southbound Interstate 35W. Police say that the driver was using the FaceTime application and never saw the brake lights ahead of him. In addition to the tragedy, father James, mother Bethany, and daughter Isabella all suffered non-fatal injuries during the crash two years ago.

The Modisette family now wants Apple to pay damages for the mishap. The family alleges the Cupertino, California-based technology company had a duty to warn motorists against using the app and that it could have used patented technology to prohibit drivers from utilizing the app.

I feel for the grieving family, of course, but this is, in no way, Apple's fault. The only person responsible for the horrible death is the driver using Facetime, and possibly - although that's probably quite a stretch - the person he was using FaceTime with, but that's it.