An anonymous reader shares a report: When French prosecutors charged Pavel Durov, the chief executive of the messaging app Telegram, with a litany of criminal offenses on Wednesday, one accusation stood out to Silicon Valley companies. Telegram, French authorities said in a statement, had provided cryptology services aimed at ensuring confidentiality without a license. In other words, the topic of encryption was being thrust into the spotlight.

The cryptology charge raised eyebrows at U.S. tech companies including Signal, Apple and Meta's WhatsApp, according to three people with knowledge of the companies. These companies provide end-to-end encrypted messaging services and often stand together when governments challenge their use of the technology, which keeps online conversations between users private and secure from outsiders.

But while Telegram is also often described as an encrypted messaging app, it tackles encryption differently than WhatsApp, Signal and others. So if Mr. Durov's indictment turned Telegram into a public exemplar of the technology, some Silicon Valley companies believe that could damage the credibility of encrypted messaging apps writ large, according to the people, putting them in a tricky position of whether to rally around their rival.

Encryption has been a long-running point of friction between governments and tech companies around the world. For years, tech companies have argued that encrypted messaging is crucial to maintain people's digital privacy, while law enforcement and governments have said that the technology enables illicit behaviors by hiding illegal activity. The debate has grown more heated as encrypted messaging apps have become mainstream. Signal has grown by tens of millions of users since its founding in 2018. Apple's iMessage is installed on the hundreds of millions of iPhones that the company sells each year. WhatsApp is used by more than two billion people globally.

Spotify claims Apple may be again in violation of European regulation, the Digital Markets Act (DMA), which requires interoperability from big technology companies dubbed "gatekeepers." From a report: This time, the issue isn't about in-app purchases, links or pricing information, but rather how Apple has discontinued the technology that allows Spotify users to control the volume on their connected devices.

When streaming to connected devices via Spotify Connect on iOS, users were previously able to use the physical buttons on the side of their iPhone to adjust the volume. As a result of the change, this will no longer work. To work around the issue, Spotify iOS users will instead be directed to use the volume slider in the Spotify Connect menu in the app to control the volume on connected devices. The company notes that this issue doesn't affect users controlling the volume on iOS Bluetooth or AirPlay sessions, nor users on Android. It only applies to those listening via Spotify Connect on iOS. As a result, Spotify iOS users globally will be directed to use the new in-app volume slider beginning on September 3.

Scientists are harvesting genetic data from microorganisms in a North Yorkshire quarry, fueling a global debate over ownership and profit-sharing of natural genetic resources. Researchers from London-based startup Basecamp Research are collecting samples and digitizing genetic codes for sale to AI companies. This practice of trading digital sequencing information (DSI) has become central to biotechnology research and development. The issue will be a focal point at October's COP16 biodiversity summit in Cali, Colombia, The Guardian reports.

Developing nations, home to much of the world's biodiversity, are pushing for a global system requiring companies to pay for genetic data use. Past discoveries underscore the potential value: heat-resistant bacteria crucial for COVID-19 testing and marine organisms used in cancer treatments have generated significant profits. Critics accuse companies of "biopiracy" for commercializing genetic information without compensating source countries. Proposed solutions include a global fund for equitable benefit-sharing, though implementation details remain contentious.

Apple has laid off about 100 employees in its services group (source may be paywalled; alternative source), primarily affecting roles associated with the Apple Books app and Apple Bookstore. The San Francisco Chronicle reports: The impacted employees at the Cupertino-based tech giant were informed of the cuts on Tuesday, Bloomberg reported (paywalled). The layoffs spanned various teams under Senior Vice President Eddy Cue. The job cuts include roles primarily associated with the Apple Books app and Apple Bookstore, with the company shifting its focus to other divisions. Additionally, other services teams, such as the one managing Apple News, also experienced layoffs.

While Apple has largely avoided mass layoffs even as other major tech companies have downsized, it did lay off 614 employees in Santa Clara earlier this year. Those cuts marked Apple's first significant job reductions since the onset of the COVID-19 pandemic and coincided with the cancellation of its decade-long electric car project.

Brussels is investigating whether Telegram breached EU digital rules by failing to provide accurate user numbers [non-paywalled source], as officials push to bring the controversial messaging app under stricter supervision. Financial Times: EU legal and data experts suspect that the app has understated its presence in the EU to stay under a 45mn user threshold, above which large online platforms are subject to a swath of Brussels regulations designed to check their influence. The EU probe comes alongside a wide-ranging French investigation into alleged criminal activity on Telegram that led to the arrest on Saturday of its founder, Russian-born billionaire Pavel Durov.

Telegram has said Durov, who is now a French-Emirati citizen, has "nothing to hide." Telegram said in February it had 41mn users in the EU. Under the EU's Digital Services Act (DSA), Telegram was supposed to provide an updated number this month but did not, only declaring it had "significantly fewer than 45mn average monthly active recipients in the EU."

An anonymous reader quotes a report from the BBC: South Korea's president has urged authorities to do more to "eradicate" the country's digital sex crime epidemic, amid a flood of deepfake pornography targeting young women. Authorities, journalists and social media users recently identified a large number of chat groups where members were creating and sharing sexually explicit "deepfake" images -- including some of underage girls. Deepfakes are generated using artificial intelligence, and often combine the face of a real person with a fake body. South Korea's media regulator is holding an emergency meeting in the wake of the discoveries.

The spate of chat groups, linked to individual schools and universities across the country, were discovered on the social media app Telegram over the past week. Users, mainly teenage students, would upload photos of people they knew -- both classmates and teachers -- and other users would then turn them into sexually explicit deepfake images. The discoveries follow the arrest of the Russian-born founder of Telegram, Pavel Durov, on Saturday, after it was alleged that child pornography, drug trafficking and fraud were taking place on the encrypted messaging app. South Korean President Yoon Suk Yeol on Tuesday instructed authorities to "thoroughly investigate and address these digital sex crimes to eradicate them."

"Recently, deepfake videos targeting an unspecified number of people have been circulating rapidly on social media," President Yoon said at a cabinet meeting. "The victims are often minors and the perpetrators are mostly teenagers." To build a "healthy media culture," President Yoon said young men needed to be better educated. "Although it is often dismissed as 'just a prank,' it is clearly a criminal act that exploits technology to hide behind the shield of anonymity," he said.

The Guardian notes that making sexually explicit deepfakes with the intention of distributing them is punishable by five years in prison or a fine of $37,500.

Further reading: 1 in 10 Minors Say Their Friends Use AI to Generate Nudes of Other Kids, Survey Finds (Source: 404 Media)

According to a new survey from Bitkom, cybercrime and other acts of sabotage have cost German companies around $298 billion in the past year, up 29% on the year before. Reuters reports: Bitkom surveyed around 1,000 companies from all sectors and found that 90% expect more cyberattacks in the next 12 months, with the remaining 10% expecting the same level of attacks. Some 70% of companies that were targeted attributed the attacks to organised crime, the survey found, adding 81% of companies reported data theft, including customer data, access data and passwords, as well as intellectual property such as patents. Around 45% of companies said they could attribute at least one attack to China, up from 42% in the previous year. Attacks blamed on Russia came in second place at 39%.

The increase in attacks has prompted companies to allocate 17% of their IT budget to digital security, up from 14% last year, but only 37% said they had an emergency plan to react to security incidents in their supply chain, the survey showed.

U.S. Securities and Exchange Commission (SEC) has issued a Wells notice to OpenSea, the leading non-fungible token (NFT) marketplace, threatening legal action over alleged securities violations. The SEC contends that NFTs traded on OpenSea's platform may constitute securities, a move that could have far-reaching implications for the digital art and collectibles industry. OpenSea CEO Devin Finzer denounced the SEC's action as an overreach that could stifle innovation and harm creators. The company pledged $5 million to cover legal fees for NFT creators and developers who receive Wells notices.

An anonymous reader shares a report: Indian IT firm Infosys has been accused of being "exploitative" after allegedly sending job offers to thousands of engineering graduates but still not onboarding any of them after as long as two years. The recent graduates have reportedly been told they must do repeated unpaid training in order to remain eligible to work at Infosys. Last week, the Nascent Information Technology Employees Senate (NITES), an Indian advocacy group for IT workers, sent a letter, shared by The Register, to Mansukh Mandaviya, India's minister of Labor and Employment. It requested that the Indian government intervene "to prevent exploitation of young IT graduates by Infosys."

The letter, signed by NITES president Harpreet Singh Saluja, claimed that NITES received "multiple" complaints from recent engineering graduates "who have been subjected to unprofessional and exploitative practices" from Infosys after being hired for system engineer and digital specialist engineer roles. According to NITES, Infosys sent these people offer letters as early as April 22, 2022, after engaging in a college recruitment effort from 2022â"2023, but never onboarded the graduates. NITES has previously said that "over 2,000 recruits" are affected.

The Verge's Ash Parrish reports: Last week, as a part of the updates to Dungeons & Dragons Fifth Edition -- collectively known as the 2024 revision -- the publisher announced that it would update D&D Beyond, the tabletop RPG's official digital toolkit that players use to reference content and create characters using a host of official and third-party sources. The update would add the new 2024 rulebooks to the toolkit, mark outdated content with a "legacy" badge, and change players' character sheets to reflect all the new rules and features.

That last part is critical to understanding why some D&D players (including my own dungeon master) spent the last 72 hours in a state of panic. Though some of the 2024 revisions are essentially cosmetic in nature -- for example, "races" will be updated to "species" -- other updates like the ones to weapons, spells, and magic items fundamentally alter the game. Wizards of the Coast would have essentially overwritten every user's character sheet with the new information whether they wanted it or not. "All entries for mundane and magical items, weapons, armor, and spells will also be updated to their 2024 version," Wizards said in its initial announcement. The publisher did say that players would have the option to continue to use the 2014 version of spells and magic items. But doing so requires using the game's homebrew rules. which aren't known for being user-friendly.

Thankfully, Wizards of the Coast isn't in the car business, and after a weekend of backlash on social media, the company will no longer force the new changes on players. "We misjudged the impact of this change, and we agree that you should be free to choose your own way to play," Wizard's said in its latest announcement. Current character sheets will only be updated with new terminology while the older versions of spells, magic items, and weapons will be preserved. Also, players who have access to both the 2014 and 2024 digital versions will have the option to use both when creating new characters.

France is to trial a ban on mobile phones at school for pupils up to the age of 15, seeking to give children a "digital pause" that, if judged successful, could be rolled out nationwide from January. From a report: Just under 200 secondary schools will take place in the experiment that will require youngsters to hand over phones on arrival at reception. It takes the prohibition on the devices further than a 2018 law that banned pupils at primary and secondary schools from using their phones on the premises but allowed them to keep possession of them. Announcing the trial on Tuesday, the acting education minister, Nicole Belloubet, said the aim was to give youngsters a "digital pause." If the trial proves successful, the ban would be introduced in all schools from January, Belloubet said.

A commission set up by the president, Emmanuel Macron, expressed concern that the overexposure of children to screens was having a detrimental effect on their health and development. A 140-page report published in March concluded there was "a very clear consensus on the direct and indirect negative effects of digital devices on sleep, on being sedentary, a lack of physical activity and the risk of being overweight and even obese ... as well as on sight."

An anonymous reader quotes a report from the Financial Times: Ikea is taking on the likes of eBay, Craigslist, and Gumtree with a peer-to-peer marketplace for customers to sell secondhand furniture to each other. Ikea Preowned will be tested in Madrid and Oslo until the end of the year with the aim of rolling out the buying and selling platform globally, according to Jesper Brodin, chief executive of Ingka, the main operator of Ikea stores. [...] Ikea has had a small offering under which it buys used furniture from customers and resells it in store. But the new platform is more ambitious, aiming to tackle the secondhand market for customers selling directly to each other -- an area where Brodin estimates Ikea has a higher market share than in new furniture sales. Customers enter their product, their own pictures, and a selling price, while Ikea's own artificial intelligence-enabled database brings in its own promotional images and measurements. The buyer collects the furniture directly from the seller, who has the option of receiving money or a voucher from Ikea with a 15 percent bonus.

"Very often there is a monopoly or oligopoly on platforms that operate," said Brodin, talking about eBay or digital classified ad services such as Gumtree in the UK and Finn in Norway. Finn has 8,700 items from Ikea listed in Oslo alone. Early offerings on Ikea Preowned include large items such as sofas for up to $670 (600 euros) and wardrobes for $500 (450 euros) as well as smaller items such as a toilet roll holder for $4.50 (4 euros). Listings are free, but Brodin said Ikea could eventually charge "a symbolic fee, a humble fee." He added: "We're going to verify the full scope including the economics. If a lot of people use the offer to get a discount with Ikea -- it's a good way to reconnect with customers. I am very curious. I think it makes business sense." Ikea has previously tested selling its new furniture on third-party platforms such as Alibaba's Tmall in China, but the Preowned platform marks its first foray into secondhand marketplaces. It also dovetails with the retailer's wish to become "circular and climate positive" by 2030.

Messaging app Telegram has said its CEO Pavel Durov, who was detained in France on Saturday, has "nothing to hide." From a report: Mr Durov was arrested at an airport north of Paris under a warrant for offences related to the app, according to officials. The investigation is reportedly about insufficient moderation, with Mr Durov accused of failing to take steps to curb criminal uses of Telegram. The app is accused of failure to co-operate with law enforcement over drug trafficking, child sexual content and fraud.

Telegram said in a statement that "its moderation is within industry standards and constantly improving." The app added: "It is absurd to claim that a platform or its owner are responsible for abuse of that platform." Telegram said Mr Durov travels in Europe frequently and added that it abides by European Union laws, including the Digital Services Act, which aims to ensure a safe and accountable online environment. "Almost a billion users globally use Telegram as means of communication and as a source of vital information," the app's statement read. "We're awaiting a prompt resolution of this situation. Telegram is with you all." Judicial sources quoted by AFP news agency say Mr Durov's detention was extended on Sunday and could last as long as 96 hours.

Wyoming is pioneering the next phase of crypto growth by creating its own U.S. dollar-backed stablecoin, the Wyoming stable token. The state aims for an early 2025 launch and have it serve as a model for a digitized dollar at the federal level, while also using the token's reserves to fund public schools. CNBC reports: Wyoming is currently vetting potential partners and vendors with more tech expertise to help build the stable token. It will require an exchange and wallet providers -- Coinbase and Kraken, for example, offer both -- to purchase and hold the token. The state plans to issue the token to an exchange so the exchange can issue it to the retail user. From there, it should be just another payment method for everyday things, said Flavia Naves, a commissioner at the Wyoming Stable Token Commission. "When you walk into Cowboy Coffee in Jackson, Wyoming, and you want to buy your latte, there's going to be their wallet there in Solana that you can use to buy your coffee with the Wyoming token," she said, describing the vision for the stablecoin.

It also has a public good tilt to it: the commission plans to invest reserves that back each token in circulation into Treasurys and reverse repos, and use the interest made on those investments to fund its public schools. At the conference, [Wyoming Governor Mark Gordon] emphasized the importance of resisting the urge to focus too much on how much money the state can make here and to instead prioritize reserve management. [...] Naves emphasized that there will be a "buffer" in the reserves to account for any potential deviations and full transparency to establish and maintain public trust.

"There will be audits available to the public on how many tokens [are] in circulation [and] how much money is in the bank account backing, so you can always see there is a 1-to-1 [stablecoin-to-dollar ratio]," she said. "This is a public token as well so as with any public service, all the information is available." The commission invites the public virtually to its meetings on the stable token and posts the minutes to its website afterward. "This is fully reserved and part of what we've been working out ... is to make sure that we can fully back whatever it is we're going to do," Gordon said. "Plus the fact that our legislation says that when a person buys a Treasury or a repo, we're going to have that in evidence, you're going to be able to see that. So hopefully we can avoid the de begging issues." Success would be "adoption of a stablecoin ... that's transparent, that is fully backed by our short-term Treasurys [and] that's dollar dependent," Wyoming Governor Mark Gordon told CNBC at the Wyoming Blockchain Symposium in Jackson Hole. "One of the big things for me is to be able to bring back onshore a lot of our debt, because if it's bought by treasuries and supported by Treasurys, it will help to stabilize that market to a degree."

"It is clear to me is that digital assets are going to have a future," Gordon said. "The United States has to address this issue. Washington's being a little bit stodgy, which is why Wyoming, being a nimble and entrepreneurial state, can make a difference."

Former President Donald Trump is about to launch a crypto platform called "The DeFiant Ones," according to a post of his on Truth Social. "For too long, the average American has been squeezed by the big banks and financial elites," Trump wrote. "It's time we take a stand -- together." From a report: The post marks the first time the Republican nominee for president has used his personal platform to promote the as yet unactivated digital bank. Within minutes, his son Donald Trump Jr., shared the post with his 12 million X followers. Trump's post includes a link to a Telegram channel called "The DeFiant Ones," which had approximately 29,000 followers as of Thursday morning, and climbing. An Aug. 15 post describes the group chat as "the only official Telegram channel for the Trump DeFi project" which is building "the future of finance."

Two of Trump's sons, Eric Trump and and Donald Jr., have spent weeks teasing the forthcoming platform, which Eric recently described as "digital real estate." "It's equitable. It's collateral anyone can get access to and do so instantly," Eric told the New York Post earlier this month. "I don't know if people realize what a shake up that is for the world of banking and finance. I hope we can help change that." The Trump brothers have also promoted the project with posts declaring that "decentralized finance is the future" and asking people to "stay tuned for a big announcement."

The mention of digital real estate could be a reference to selling digitized versions of assets in the metaverse, a concept which peaked in popularity in 2021 during the last bull market cycle in crypto. Digitized real estate could also mean that the project would tokenize real-world assets. [...] Trump's eldest son recently said that the family wasn't launching a memecoin and instead, was working to develop a crypto platform that would rival the traditional banking system. "What we want to do is take on a lot of the banking world," he said Aug. 8. "I think there has been a lot of inequality in that only certain people can get financing [...] so this notion of decentralized finance is obviously very appealing to guys like me who have been debanked," Donald Trump Jr. said in the interview on Locals.

Apple will change how users choose browser options in the European Union, add a dedicated section for changing default apps, and make more apps deletable, the company said on Thursday. From a report: The iPhone maker came under pressure from regulators to make changes after the EU's sweeping Digital Markets Act took effect on March 7, forcing it to offer mobile users the ability to select from a list of available web browsers on a "choice screen" the first time they open Safari. In an update later this year, Apple users will be able to select a default browser directly from the choice screen after going through a mandatory list of options.

A randomly ordered list of 12 browsers per EU country will be shown to the user with short descriptions, and the chosen one will be automatically downloaded, Apple said. The choice screen will also be available on iPads through an update later this year. Apple released a previous update in response to the new rules in March, but browser companies criticized the design of its choice screen, and the Commission opened an investigation on March 25 saying it suspected that the measures fell short of effective compliance. [...] Users will also be able to delete certain Apple-made apps such as App Store, Messages, Camera, Photos and Safari.

According to Bloomberg's Mark Gurman (paywalled), App Store vice president Matt Fischer is departing the company in October as Apple prepares for organizational changes in response to regulatory pressure. MacRumors reports: Apple plans to split its App Store group into two teams, one that handles the App Store and a second team that oversees alternative app distribution. As of earlier this year, Apple has supported iOS app downloads from alternative app stores and from websites in the European Union, a change that the company had to make to comply with the Digital Markets Act. To handle ongoing compliance with EU regulations for app distribution and alternative payment methods, App Store chief Phil Schiller is changing the App Store's hierarchy.

Fischer joined Apple in 2003 to oversee iTunes marketing, but he has served as the vice president of the App Store since 2010. In an email to Apple employees today, Fischer said that he had been thinking about leaving Apple for some time, and the reorganization provided the right opportunity. With Fischer leaving, App Store senior director Carson Oliver will oversee the App Store, and Ann Thai, a director who oversees App Store features, will head up the team that handles alternative app distribution.

South Africa's telecoms industry body is pushing for digital content and service providers to help pay for the roll out of network infrastructure because they generate a huge part of the internet traffic. From a report: The Association of Comms and Technology (ACT) CEO Nomvuyiso Batyi said that the revenues generated by over-the-top (OTT) platforms and the continued success of the OTT model was dependent on the availability of high-quality, reliable and efficient network infrastructure. So "what we're saying is that the OTTs should contribute towards the network upgrades, the network building," she added. OTT platforms or services deliver digital content such as video, audio and messaging directly to consumers over the internet. "Fair share" arrangements ensure that OTT providers contribute to the costs of building, maintaining, and upgrading the infrastructure that supports their business.

Microsoft is launching three new Xbox Series S / X console options in October. From a report: There's the $449.99 white discless Xbox Series X, a 2TB "Galaxy Black" special-edition Xbox Series X priced at $599.99, and a $349.99 1TB Xbox Series S. All three models will be available in the US on October 15th, with other markets to follow on October 29th.

The white coating on the exterior of this new discless Xbox Series X matches the "robot white" found on the Xbox Series S, Microsoft's smaller $299 console. While leaks of the white Xbox Series X hinted that Microsoft may upgrade the heatsink used to cool the console, the company hasn't detailed any hardware changes beyond the removal of the disc drive here.

TV manufacturers are shifting their focus from hardware sales to viewer data and advertising revenue. This trend is driven by declining profit margins on TV sets and the growing potential of smart TV operating systems to generate recurring income. Companies like LG, Samsung, and Roku are increasingly prioritizing ad sales and user tracking capabilities in their TVs, ArsTechnica reports. Automatic content recognition (ACR) technology, which analyzes viewing habits, is becoming a key feature for advertisers. TV makers are partnering with data firms to enhance targeting capabilities, with LG recently sharing data with Nielsen and Samsung updating its ACR tech to track streaming ad exposure. This shift raises concerns about privacy and user experience, as TVs become more commercialized and data-driven. Industry experts predict a rise in "shoppable ads" and increased integration between TV viewing and e-commerce platforms. The report adds: With TV sales declining and many shoppers prioritizing pricing, smart TV players will continue developing ads that are harder to avoid and better at targeting. Interestingly, Patrick Horner, practice leader of consumer electronics at analyst Omdia, told Ars that smart TV advertising revenue exceeding smart TV hardware revenue (as well as ad sale margins surpassing those of hardware) is a US-only trend, albeit one that shows no signs of abating. OLED has become a mainstay in the TV marketplace, and until the next big display technology becomes readily available, OEMs are scrambling to make money in a saturated TV market filled with budget options. Selling ads is an obvious way to bridge the gap between today and The Next Big Thing in TVs.

Indeed, with companies like Samsung and LG making big deals with analytics firms and other brands building their businesses around ads, the industry's obsession with ads will only intensify. As we've seen before with TV commercials, which have gotten more frequent over time, once the ad genie is out of the bottle, it tends to grow, not go back inside. One side effect we're already seeing, Horner notes, is "a proliferation of more TV operating systems." While choice is often a good thing for consumers, it's important to consider if new options from companies like Amazon, Comcast, and TiVo actually do anything to notably improve the smart TV experience for owners.

And OS operators' financial success is tied to the number of hours users spend viewing something on the OS. Roku's senior director of ad innovation, Peter Hamilton, told Digiday in May that his team works closely with Roku's consumer team, "whose goal is to drive total viewing hours." Many smart TV OS operators are therefore focused on making it easier for users to navigate content via AI.