U.S. lawmakers are expected to endorse $1.9 billion to fund a program to remove telecom network equipment that the U.S. government says poses national security risks as part of a year-end spending bill and COVID-19 bill, a source briefed on the matter said on Sunday.Lawmakers are also expected to back $3.2 billion for an emergency broadband benefit for low-income Americans.The Federal Communications Commission said in June it had formally designated China’s Huawei Technologies Co and ZTE Corp as threats, a declaration that bars U.S. firms from tapping an $8.3 billion government fund to purchase equipment from the companies.Earlier this month, the FCC finalized rules that require carriers with ZTE or Huawei equipment to “rip and replace” that equipment but is awaiting funding from Congress.Huawei said earlier this month it was disappointed in the FCC’s decision “to force removal of our products from telecommunications networks. This overreach puts U.S. citizens at risk in the largely underserved rural areas – during a pandemic – when reliable communication is essential.”The $7 billion COVID Relief Broadband Package “establishes a temporary, emergency broadband benefit program at the FCC to help low-income Americans, including those economically challenged by the COVID-19 pandemic, get connected or remain connected to broadband,” the source said.The source also said the program will supply a $50 monthly subsidy to qualifying households “to help them afford broadband service and an internet-connected device.”The bill also expands eligibility for the rip-and-replace reimbursement program to communications providers with 10 million subscribers or less but prioritizes reimbursement for providers with 2 million subscribers or less, the source said, citing a draft fact sheet.The bill is expected to include $285 million for connecting minority communities and will establish an Office of Minority Broadband Initiatives at the National Telecommunications and Information Administration (NTIA). 
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In recent weeks, Chinese regulators have cracked down on some of the country’s biggest and most powerful technology companies, illustrating the immense market power of these companies, which has drawn concern from the government. On Monday, the State Administration for Market Regulation (SAMR), China’s top market regulator, fined three of the country’s largest technology companies, including e-commerce giant Alibaba Group and social-media juggernaut Tencent, for failing to disclose acquisitions of smaller competitors. Last month, China Securities Regulatory Commission halted the record initial public offering of Ant Group, one of China’s dominant digital payment platforms backed by Alibaba. It then announced new draft rules targeting monopolistic practices on the country’s digital platforms.  FILE – Signs of Alibaba Group and Ant Group are seen during the World Internet Conference in Wuzhen, Zhejiang province, China, Nov. 23, 2020.Analysts who spoke to VOA said these moves reflect the Chinese government’s rising concern over financial technology and e-commerce companies that are using unfair competitive practices to undermine traditional payments and financial service companies. There is also a concern that the companies could pose a systemic risk to the economy.  First fine On Monday, a subsidiary of Alibaba Group, a unit of Tencent Holdings, and an affiliate of express delivery company SF Holding were fined $75,000 (500,000 RMB) each for breaching China’s anti-monopoly law.  SAMR said in a statement that the online economy has become increasingly controlled by a few companies. “Complaints about platform monopoly have been on the rise, indicating competition risks and problems in the online economy,” it said.  FILE – Zhang Mao, minister of China’s State Administration for Market Regulation, attends a news conference on the sidelines of the National People’s Congress in Beijing, China, March 11, 2019.This marks the first fine towards the country’s internet giants since the enforcement of the anti-monopoly law in 2008.  Lu Suiqi, an associate professor of finance at Peking University, says the government has been turning a blind eye to monopoly issues for the past decade, because developing the digital economy was an important part of China’s industrial policy.  “Now these companies have become too strong, they have been using inappropriate means to drive their competitors out of the market,” Lu said. “They have grasped an excessively high market share and there’s a lack of healthy competition, which is bad for the overall economy.” Some 70% of the top 30 Apps in China belong to either Alibaba or Tencent. The two companies are each believed to oversee a payment and financial tractions ecosystem with a market value around $1.5 trillion (10 trillion RMB).  Li Chengdong, founder of the Beijing-based Dolphin think tank, says that the explosive growth of internet firms has made governments around the world vigilant. In the United States earlier this month, attorney generals from 48 states sued Google and Facebook, accusing them of illegally conspiring to shut out smaller rivals. Analysts say there is a similar dynamic happening in China. Facebook’s Antitrust Fight in US Could Mean More Consumer Choice Worldwide The FTC and state attorneys general lawsuits contend that the social networking giant abused its monopoly power. 38 States Sue Google Over Antitrust Complaints It is the third major lawsuit against the tech giant since October “It’s very common in China for big internet giants to crack down on small- and medium-size start-ups,” he said, adding only more strict regulation and enforcement can put the economy back on track.  Rebalancing away from technology?  Meanwhile, experts recommend China needs to rebalance its economy between e-commerce and brick and mortar stores to achieve more sustainable growth.  Tomson Tang, vice chairman of China Electronic Commerce Association, says China’s e-commerce has developed rapidly over the past 20 years in terms of users and the value of transactions, at the cost of hundreds and thousands of brick and mortar stores.  “The policy and regulations couldn’t catch up with the speed at which e-commerce develops. That include systematic problems on issues around monopoly, which is bad for the real economy,” he told VOA. However, he said the digital economy is a key element for China to maintain overall economic momentum down the road. The government needs to use regulations to make sure that market opportunities created should be open to all participants and cannot be monopolized by a few large companies.  Beijing’s antitrust watchdogs last month announced draft rules targeting monopolistic practices on the country’s digital platforms, which analysts say will have negative implications for major internet companies with dominant positions across segments.  Paul Triolo, a China digital economy fellow at the Washington-based think tank New America, says although the tech giants must comply with the tightening regulations, they might succeed in bargaining with authorities on how the regulations are implemented.  Tang predicts that in the next two to three years, China will establish a national digital economy bureau to oversee all internet companies. “Without such an authority to supervise, coordinate and enforce regulations, it would be difficult to grasp the financial data and structures of these internet giants, thus impact the implementation of the new anti-monopoly law,” he said.  
 
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U.S. lawmakers briefed on the massive cybersecurity breach that has impacted government agencies and the private sector are calling for the country to act, warning that so far, all evidence is pointing to Russia as the culprit. The admonitions, from both Republicans and Democrats, follow warnings from U.S. cybersecurity officials that the scope of the hack is potentially much bigger than originally thought, encompassing multiple software platforms going back at least as far as March of this year. FILE – Sen. Marco Rubio, R-Fla., asks a question during a Senate Foreign Relations committee hearing in Washington, July 30, 2020.”The full extent of the cyberhack [sic] is still unknown but we already know it is unprecedented in scale & scope,” the acting chairman of the Senate Intelligence Committee, Republican Marco Rubio, tweeted Friday. “The methods used to carry out the cyberhack are consistent with Russian cyber operations,” Rubio added, warning that once officials can attribute the intrusion with complete certainty, “America must retaliate, and not just with sanctions.” The full extent of the cyberhack is still unknown but we already know it is unprecedented in scale & scope, in all likelihood ongoing & at a level of sophistication only a few nation-states are capable of.
— Marco Rubio (@marcorubio) FILE – Sen. Mark Warner, D-Va., addresses the news media in Alexandria, Va., Nov. 3, 2020.”An incident of this magnitude and lasting impact requires an engaged and public response by the U.S. government,” Senator Mark Warner said in a statement issued Friday. “It is extremely troubling that the president does not appear to be acknowledging, much less acting upon, the gravity of this situation.” Indications of a cyber intrusion first went public earlier this month when the private cybersecurity firm FireEye announced its systems had been penetrated and that sensitive information had been stolen. The hack was later traced to updates for network management software from a Texas-based company called SolarWinds, which the hackers exploited to get into the networks of at least 18,000 users. In an updated alert issued Friday, the cybersecurity unit of the U.S. Department of Homeland Security warned the hackers had been exploiting the SolarWinds software update going back to at least March. The SolarWinds logo is seen outside its headquarters in Austin, Texas, Dec. 18, 2020.But the Cybersecurity and Infrastructure Security Agency (CISA) further warned the problem was not contained to SolarWinds. “CISA has evidence of initial access vectors other than the SolarWinds Orion platform,” the alert warned, saying the agency is investigating instances in which other platforms were used to access critical networks. “This threat poses a grave risk to the federal government and state, local, tribal and territorial governments, as well as critical infrastructure entities and other private sector organizations,” CISA said. “This is a patient, well-resourced and focused adversary that has sustained long duration activity on victim networks.” Research by tech giant Microsoft, made public Thursday, indicated the hackers precisely targeted at least 40 organizations. The vast majority were in the United States, but companies in Canada, Mexico, Britain, Belgium, Israel and the United Arab Emirates were also attacked. FILE – Microsoft President Brad Smith speaks during a Reuters Newsmaker event in New York, Sept. 13, 2019.”This is not ‘espionage as usual,’ even in the digital age,” Microsoft President Brad Smith wrote on the company’s blog. “This is not just an attack on specific targets, but on the trust and reliability of the world’s critical infrastructure.” Former U.S. government officials also worried about the impact of the hack. “The scope of it is large but exactly how large remains to be seen, and exactly how severe remains to be seen,” Michael Daniel, who served as a special assistant to former U.S. President Barack Obama on cyber issues, told VOA’s Russian Service. “The damage could be very, very significant to U.S. national security and to our economic security,” he said. Yet despite the warnings from current and former government officials, and private security firms, as of late Friday, U.S. President Donald Trump had yet to comment on the breach. Instead, Trump’s Twitter feed was full of unsubstantiated allegations of election fraud, praise for the distribution of coronavirus vaccines and threats to veto the $740 billion defense spending bill, which drew the ire of some key lawmakers. I will Veto the Defense Bill, which will make China very unhappy. They love it. Must have Section 230 termination, protect our National Monuments and allow for removal of military from far away, and very unappreciative, lands. Thank you! https://t.co/9rI08S5ofO
— Donald J. Trump (@realDonaldTrump) December 17, 2020″This year’s National Defense Authorization Act provides critical tools and authorities to help defend against and disrupt malicious cyber activity and effectively hunt for threats and vulnerabilities on the federal cyber network,” the chairman and ranking member of the Senate Armed Services Committee said in a joint statement late Friday. “The NDAA is always ‘must-pass’ legislation,” Republican Jim Inhofe and Democrat Jack Reed added. “But this cyber incident makes it even more urgent that the bill become law without further delay.” NEW: Senate Armed Services Committee statement on #SolarWindsHack
“significant, sophisticated, and ongoing cybersecurity intrusion against the United States… has the hallmarks of a #Russia|n intelligence operation” per @JimInhofe@SenJackReedpic.twitter.com/2d5KqPrECR
— Jeff Seldin (@jseldin) December 17, 2020Already, officials have determined that the hackers gained access to systems for the departments of Energy, Treasury and Commerce, though the Energy Department said networks related to nuclear security appeared to have been spared.  “At this point, the investigation has found that the malware has been isolated to business networks only and has not impacted the mission essential national security functions of the department,” spokeswoman Shaylyn Hynes said in a statement Thursday.  DOE UPDATE ON CYBER INCIDENT RELATED TO SOLAR WINDS COMPROMISE pic.twitter.com/l9X1AH4VJw
— DOE Press Staff (@EnergyPress) December 17, 2020U.S. President-elect Joe Biden called the cybersecurity breach “a matter of great concern.” “I want to be clear: My administration will make cybersecurity a top priority at every level of government — and we will make dealing with this breach a top priority from the moment we take office,” he said in a statement Thursday, shortly after the latest CISA alert was issued. “Our adversaries should know that, as president, I will not stand idly by in the face of cyber assaults on our nation,” he added. Biden is set to be inaugurated as the 46th U.S. president on January 20. Russian Service’s Danila Galperovich contributed to this report.
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Technology giant Alibaba Group Holding Ltd. has facial recognition technology that can specifically pick out members of China’s Uighur minority, surveillance industry researcher IPVM said in a report. Alibaba itself said it was dismayed a unit developed software that can tag ethnicity in videos, and that the feature was never intended to be deployed to customers. The report comes as human rights groups accuse China of forcing more than 1 million Muslim Uighurs into labor camps in the region of Xinjiang and call out firms suspected of complicity. FILE – Residents line up inside a vocational training center in Artux, in western China’s Xinjiang region, Dec. 3, 2018. Critics say China uses some of these facilities as detention camps for forced labor.China has repeatedly denied forcing anyone into what it has called vocational training centers and has also said Xinjiang is under threat from Islamist militants. Still, sensitivities have prompted caution among Chinese internet firms that often self-censor to avoid running afoul of a government that strictly controls online speech and that last month published draft rules to police livestreaming. Report’s findingsU.S.-based IPVM in a report published Wednesday said software capable of identifying Uighurs appears in Alibaba’s Cloud Shield content moderation service for websites. Alibaba describes Cloud Shield as a system that “detects and recognizes text, pictures, videos and voices containing pornography, politics, violent terrorism, advertisements and spam, and provides verification, marking, custom configuration and other capabilities.” An archived record of the technology shows it can perform such tasks as “glasses inspection,” “smile detection,” whether the subject is “ethnic” and, specifically, “Is it Uighur?” Consequently, if a Uighur livestreams a video on a website signed up to Cloud Shield, the software can detect that the user is Uighur and flag the video for review or removal, IPVM researcher Charles Rollet told Reuters. IPVM said mention of Uighurs in the software disappeared near the time it published its report. Alibaba’s responseAlibaba in a statement said it was dismayed that Alibaba Cloud developed facial recognition software that includes ethnicity as an attribute for tagging video imagery, and that it never intended the software to be used in this manner. The feature was trial technology not intended for customers. Alibaba did not mention Uighurs in its statement. “We have eliminated any ethnic tag in our product offering,” an Alibaba spokeswoman told Reuters. Alibaba is listed on both the New York and Hong Kong stock exchanges. It is the biggest cloud computing vendor in China and the fourth biggest worldwide, showed data from researcher Canalys. Earlier this month, U.S. lawmakers sent letters to Intel Corp. and Nvidia Corp. following reports of their computer chips being used in the surveillance of Uighurs.  
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The lawsuits against Alphabet Inc.’s Google continue to pile up. On December 17, 38 states filed a joint antitrust complaint that accuses the tech giant of expanding its search monopoly through smart speakers, televisions and cars, according to Reuters. It is the third major lawsuit against the company. The states are seeking to attach their suit with a federal suit announced by the Justice Department in October, according to the Colorado attorney general’s office. The federal case alleges Google made deals with phone makers, including Apple and Samsung, to make Google the default search engine. It alleges it is also using its Android operating system to pressure device makers to preload Google search apps and other Google products. On December 16, another case was filed by another group of states led by Texas. That case alleges Google is harming competitors by engaging in “false, deceptive or misleading acts” with its Google Ads product. In the latest case, the states allege Google is seeking to use exclusionary agreements to dominate search and search advertising over a new set of devices like smart speakers, which Google produces. Accusations against GoogleAccording to CNET, Google accounts for about 90% of U.S. search traffic. That generates “almost all” of the company’s $160 billion in annual sales. The company has long been accused of shutting out competitors by using its dominance to promote its own products. The new lawsuit alleges Google is doing the same with newer devices like voice assistants. “Google is preventing competitors in the voice assistant market from reaching consumers through connected cars, which stand to be a significant way the internet is accessed in the near future,” said Iowa Attorney General Tom Miller, according to Reuters. Google has yet to comment on the lawsuit. Big Tech has come under increasing attack from both Democrats and Republicans. In addition to the Google cases, Facebook Inc. is also facing antitrust lawsuits. Reuters said the suits were the “biggest antitrust cases in a generation.”  
 
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U.S. President Donald Trump’s administration and President-elect Joe Biden both voiced new alarm Thursday about a wide intrusion into computer systems around the world that officials suspect was carried out by Russia.The cybersecurity unit of the U.S. Department of Homeland Security said the hack “poses a grave risk to the federal government and state, local, tribal, and territorial governments, as well as critical infrastructure entities and other private sector organizations.”The assessment by the Cybersecurity and Infrastructure Agency was the most pointed yet since news of the intrusion first emerged last weekend. Both the U.S. Treasury and Commerce departments were among the agencies whose secure data and emails were penetrated by the hack.US Says Recent Hacking Campaign Hit Government NetworksThe hackers are believed to be working for RussiaThe cybersecurity unit warned that removing the malware inserted in the network software will be “highly complex and challenging.”Biden, set to become the 46th U.S. president after his January 20 inauguration, said, “There’s a lot we don’t yet know, but what we do know is a matter of great concern.”Biden said he had “instructed my team to learn as much as we can about this breach” and praised career government civil servants “who are working around-the-clock to respond to this attack.”He vowed that after he assumes power, “my administration will make cybersecurity a top priority at every level of government, and we will make dealing with this breach a top priority from the moment we take office.”Biden said he would strengthen the government’s cybersecurity partnerships with the private sector.“But a good defense isn’t enough,” he said. “We need to disrupt and deter our adversaries from undertaking significant cyberattacks in the first place.”“We will do that by, among other things, imposing substantial costs on those responsible for such malicious attacks, including in coordination with our allies and partners,” Biden said. “Our adversaries should know that, as president, I will not stand idly by in the face of cyber assaults on our nation.”
 
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Ten states on Wednesday brought a lawsuit against Google, accusing the search giant of “anti-competitive conduct” in the online advertising industry, including a deal to manipulate sales with rival Facebook.Texas Attorney General Ken Paxton announced the suit, which was filed in a federal court in Texas, saying Google is using its “monopolistic power” to control pricing of online advertisements, fixing the market in its favor and eliminating competition.”This Goliath of a company is using its power to manipulate the market, destroy competition, and harm you, the consumer,” Paxton said in the video posted on Twitter.Google, which is based in Mountain View, California, called Paxton’s claims “meritless” and said the price of online advertising has fallen over the past decade.”These are the hallmarks of a highly competitive industry,” the company said in a statement. “We will strongly defend ourselves from (Paxton’s) baseless claims in court.”Paxton led a bipartisan coalition of 50 U.S. states and territories that announced in September 2019 they were investigating Google’s business practices, citing “potential monopolistic behavior.”Now Texas is bringing the suit along with other Republican attorneys general from Arkansas, Idaho, Indiana, Kentucky, Mississippi, Missouri, North Dakota, South Dakota and Utah.The complaint targets the heart of Google’s business – the digital ads that generate nearly all of its revenue, as well as all the money that its corporate parent, Alphabet Inc., depends on to help finance a range of far-flung technology projects.As more marketers have increased their spending online, those digital ads have turned Google into a moneymaking machine. Through the first nine months of this year, Google’s ad sales totaled nearly $101 billion, accounting for 86% of its total revenue.And now the states contend Google intends to use its alleged stranglehold on digital ads to choke off other avenues of potential competition and innovation. The company struck an illegal deal with Facebook, a major competitor for ads, to manipulate advertising auction, according to the complaint. Facebook declined to comment.”Google has an appetite for total dominance, and its latest ambition is to transform the free and open architecture of the internet,” the suit alleges.’Ad tech’ marketplaceIn the “ad tech” marketplace that brings together Google and a huge universe of online advertisers and publishers, the company controls access to the advertisers that put ads on its dominant search platform. Google also runs the auction process for advertisers to get ads onto a publisher’s site. Nine of Google’s products in search, video, mobile, email, mapping and other areas are estimated to have over a billion users each, providing the company a trove of users’ data that it can deploy in the advertising process.Google officials say the company shares the majority of its “ad tech” revenue with publishers, such as newspaper websites. An official recently rejected even the assertion that Google is dominant, saying that market dominance suggests abuse, which is foreign to the company.The state’s suit comes after the U.S. Justice Department sued Google in October for abusing its dominance in online search and advertising – the government’s most significant attempt to buttress competition since its historic case against Microsoft two decades ago.Separately, the FBI is investigating whether Paxton, a close ally of President Donald Trump, broke the law in using his office to help a wealthy donor who is also under federal investigation. This fall, eight of the attorney general’s top deputies accused him of bribery, abuse of office and other crimes in the service of an Austin real estate developer who employs a woman with whom Paxton is said to have had an extramarital affair.All eight of Paxton’s accusers have since been fired or resigned, including the deputy attorney general who had been leading the office’s probe of Google. The court complaint list attorneys with private firms in Houston, Chicago and Washington, D.C., as the lead lawyers on the case.Paxton announced the lawsuit the week after the U.S. Supreme Court rejected his legal push to overturn Joe Biden’s victory in the presidential election, a case that prompted widespread speculation that the attorney general is angling for a preemptive pardon from Trump.  
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The U.S. government confirmed on Wednesday that a recent hacking campaign affected its networks and said the attack was “significant and ongoing.”Hackers believed to be working for Russia have been monitoring internal email traffic at the U.S. Treasury and Commerce departments, Reuters reported earlier this week, citing people who said they feared the hacks uncovered so far may be the tip of the iceberg.”This is a developing situation, and while we continue to work to understand the full extent of this campaign, we know this compromise has affected networks within the federal government,” said a joint statement issued by the FBI, the Cybersecurity and Infrastructure Security Agency (CISA), and the Office of the Director of National Intelligence (ODNI).Technology company SolarWinds Corp., which was the key stepping-stone used by the hackers, said up to 18,000 of its customers had downloaded a compromised software update that allowed hackers to spy unnoticed on businesses and agencies for almost nine months.”Over the course of the past several days, the FBI, CISA, and ODNI have become aware of a significant and ongoing cybersecurity campaign,” the joint statement said.”The FBI is investigating and gathering intelligence in order to attribute, pursue, and disrupt the responsible threat actors,” the statement said.The FBI, CISA and ODNI have formed a Cyber Unified Coordination Group to coordinate the U.S. government’s response, it said.White House national security adviser Robert O’Brien cut short a European trip on Tuesday and returned to Washington to deal with the attack.
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