Enlarge / A screen shows a virtual meeting with Microsoft Teams at a conference on January 30, 2024 in Barcelona, Spain. (credit: Cesc Maymo / Contributor | Getty Images News)

Microsoft may be hit with a massive fine in the European Union for "possibly abusively" bundling Teams with its Office 365 and Microsoft 365 software suites for businesses.

On Tuesday, the European Commission (EC) announced preliminary findings of an investigation into whether Microsoft's "suite-centric business model combining multiple types of software in a single offering" unfairly shut out rivals in the "software as a service" (SaaS) market.

"Since at least April 2019," the EC found, Microsoft's practice of "tying Teams with its core SaaS productivity applications" potentially restricted competition in the "market for communication and collaboration products."

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As a result of book publishers successfully suing the Internet Archive (IA) last year, the free online library that strives to keep growing online access to books recently shrank by about 500,000 titles.

IA reported in a blog post this month that publishers abruptly forcing these takedowns triggered a "devastating loss" for readers who depend on IA to access books that are otherwise impossible or difficult to access.

To restore access, IA is now appealing, hoping to reverse the prior court's decision by convincing the US Court of Appeals in the Second Circuit that IA's controlled digital lending of its physical books should be considered fair use under copyright law. An April court filing shows that IA intends to argue that the publishers have no evidence that the e-book market has been harmed by the open library's lending, and copyright law is better served by allowing IA's lending than by preventing it.

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Pornhub will soon be blocked in five more states as the adult site continues to fight what it considers privacy-infringing age-verification laws that require Internet users to provide an ID to access pornography.

On July 1, according to a blog post on the adult site announcing the impending block, Pornhub visitors in Indiana, Idaho, Kansas, Kentucky, and Nebraska will be "greeted by a video featuring" adult entertainer Cherie Deville, "who explains why we had to make the difficult decision to block them from accessing Pornhub."

Pornhub explained that—similar to blocks in Texas, Utah, Arkansas, Virginia, Montana, North Carolina, and Mississippi—the site refuses to comply with soon-to-be-enforceable age-verification laws in this new batch of states that allegedly put users at "substantial risk" of identity theft, phishing, and other harms.

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Meta got hit Tuesday with a lawsuit alleging that the company knowingly overlooks sexist treatment of female employees. That includes an apparent practice of hiring and promoting less qualified men to roles over more qualified female applicants.

The complaint was filed in a US district court in New York by Jeffrey Smith, an engineer who joined Meta in 2018. Smith alleged that Meta was on the brink of promoting him when suddenly his "upward trajectory stopped" after he started speaking up about allegedly misogynistic management practices at Meta.

Smith claimed that instead of a promotion, his Meta manager, Sacha Arnaud, suggested that he resign shortly after delivering Smith's first-ever negative performance review, which reduced his bonus payout and impacted his company stock. Smith has alleged he suffered emotional distress and economic injury due to this alleged retaliation.

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Elon Musk is still frantically pushing to launch X payment services in the US by the end of 2024, Bloomberg reported Tuesday.

Launching payment services is arguably one of the reasons why Musk paid so much to acquire Twitter in 2022. His rebranding of the social platform into X revives a former dream he had as a PayPal co-founder who fought and failed to name the now-ubiquitous payments app X. Musk has told X staff that transforming the company into a payments provider would be critical to achieving his goal of turning X into a so-called everything app "within three to five years."

Late last year, Musk said it would "blow" his "mind" if X didn't roll out payments by the end of 2024, so Bloomberg's report likely comes as no big surprise to Musk's biggest fans who believe in his vision. At that time, Musk said he wanted X users' "entire financial lives" on the platform before 2024 ended, and a Bloomberg review of "more than 350 pages of documents and emails related to money transmitter licenses that X Payments submitted in 11 states" shows approximately how close he is to making that dream a reality on his platform.

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Apple has abruptly discontinued its "buy now, pay later" (BNPL) service, Apple Pay Later, which turned Apple into a money lender when it launched last March in the US and became widely available in October.

The service previously allowed users to split the cost of purchases of up to $1,000 into four installments that were repaid over six weeks without worrying about extra fees or paying interest. For Apple, it was likely a move to increase total Apple Pay users as the company sought to offer more core financial services through its devices.

Now, it appears that Apple has found a different route to offer short-term loans at checkout in Apple Pay. An Apple spokesperson told 9to5Mac that the decision to end Apple Pay Later came ahead of the company's plan to start offering new types of installment loans globally.

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Adobe prioritized profits while spending years ignoring numerous complaints from users struggling to cancel costly subscriptions without incurring hefty hidden fees, the US Federal Trade Commission (FTC) alleged in a lawsuit Monday.

According to the FTC, Adobe knew that canceling subscriptions was hard but determined that it would hurt revenue to make canceling any easier, so Adobe never changed the "convoluted" process. Even when the FTC launched a probe in 2022 specifically indicating that Adobe's practices may be illegal, Adobe did nothing to address the alleged harm to consumers, the FTC complaint noted. Adobe also "provides no refunds or only partial refunds to some subscribers who incur charges after an attempted, unsuccessful cancellation."

Adobe "repeatedly decided against rectifying some of Adobe’s unlawful practices because of the revenue implications," the FTC alleged, asking a jury to permanently block Adobe from continuing the seemingly deceptive practices.

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US Surgeon General Vivek Murthy wants to put a warning label on social media platforms, alerting young users of potential mental health harms.

"It is time to require a surgeon general’s warning label on social media platforms stating that social media is associated with significant mental health harms for adolescents," Murthy wrote in a New York Times op-ed published Monday.

Murthy argued that a warning label is urgently needed because the "mental health crisis among young people is an emergency," and adolescents overusing social media can increase risks of anxiety and depression and negatively impact body image.

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Meta has apparently paused plans to process mounds of user data to bring new AI experiences to Europe.

The decision comes after data regulators rebuffed the tech giant's claims that it had "legitimate interests" in processing European Union- and European Economic Area (EEA)-based Facebook and Instagram users' data—including personal posts and pictures—to train future AI tools.

There's not much information available yet on Meta's decision. But Meta's EU regulator, the Irish Data Protection Commission (DPC), posted a statement confirming that Meta made the move after ongoing discussions with the DPC about compliance with the EU's strict data privacy laws, including the General Data Protection Regulation (GDPR).

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Apple has spent years "intentionally, knowingly, and deliberately paying women less than men for substantially similar work," a proposed class action lawsuit filed in California on Thursday alleged.

A victory for women suing could mean that more than 12,000 current and former female employees in California could collectively claw back potentially millions in lost wages from an apparently ever-widening wage gap allegedly perpetuated by Apple policies.

The lawsuit was filed by two employees who have each been with Apple for more than a decade, Justina Jong and Amina Salgado. They claimed that Apple violated California employment laws between 2020 and 2024 by unfairly discriminating against California-based female employees in Apple’s engineering, marketing, and AppleCare divisions and "systematically" paying women "lower compensation than men with similar education and experience."

Enlarge / Brad Smith, vice chairman and president of Microsoft, is sworn in before testifying about Microsoft's cybersecurity work during a House Committee on Homeland Security hearing on Capitol Hill in Washington, DC, on June 13, 2024. (credit: SAUL LOEB / Contributor | AFP)

Microsoft is pivoting its company culture to make security a top priority, President Brad Smith testified to Congress on Thursday, promising that security will be "more important even than the company’s work on artificial intelligence."

Satya Nadella, Microsoft's CEO, "has taken on the responsibility personally to serve as the senior executive with overall accountability for Microsoft’s security," Smith told Congress.

His testimony comes after Microsoft admitted that it could have taken steps to prevent two aggressive nation-state cyberattacks from China and Russia.

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An Indiana cop has resigned after it was revealed that he frequently used Clearview AI facial recognition technology to track down social media users not linked to any crimes.

According to a press release from the Evansville Police Department, this was a clear "misuse" of Clearview AI's controversial face scan tech, which some US cities have banned over concerns that it gives law enforcement unlimited power to track people in their daily lives.

To help identify suspects, police can scan what Clearview AI describes on its website as "the world's largest facial recognition network." The database pools more than 40 billion images collected from news media, mugshot websites, public social media, and other open sources.

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While Musk has spent much of today loudly criticizing the Apple/OpenAI deal, he also sought to drop his lawsuit against OpenAI, a court filing today showed.

In the filing, Musk's lawyer, Morgan Chu, notified the Superior Court of California in San Francisco of Musk's request for dismissal of his entire complaint without prejudice.

There are currently no further details as to why Musk decided to drop the suit.

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Elon Musk is so opposed to Apple's plan to integrate OpenAI's ChatGPT with device operating systems that he's seemingly spreading misconceptions while heavily criticizing the partnership.

On X (formerly Twitter), Musk has been criticizing alleged privacy and security risks since the plan was announced Monday at Apple's annual Worldwide Developers Conference.

"If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies," Musk posted on X. "That is an unacceptable security violation." In another post responding to Apple CEO Tim Cook, Musk wrote, "Don't want it. Either stop this creepy spyware or all Apple devices will be banned from the premises of my companies."

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Adobe has promised to update its terms of service to make it "abundantly clear" that the company will "never" train generative AI on creators' content after days of customer backlash, with some saying they would cancel Adobe subscriptions over its vague terms.

Users got upset last week when an Adobe pop-up informed them of updates to terms of use that seemed to give Adobe broad permissions to access user content, take ownership of that content, or train AI on that content. The pop-up forced users to agree to these terms to access Adobe apps, disrupting access to creatives' projects unless they immediately accepted them.

For any users unwilling to accept, canceling annual plans could trigger fees amounting to 50 percent of their remaining subscription cost. Adobe justifies collecting these fees because a "yearly subscription comes with a significant discount."

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Photos of Brazilian kids—sometimes spanning their entire childhood—have been used without their consent to power AI tools, including popular image generators like Stable Diffusion, Human Rights Watch (HRW) warned on Monday.

This act poses urgent privacy risks to kids and seems to increase risks of non-consensual AI-generated images bearing their likenesses, HRW's report said.

An HRW researcher, Hye Jung Han, helped expose the problem. She analyzed "less than 0.0001 percent" of LAION-5B, a dataset built from Common Crawl snapshots of the public web. The dataset does not contain the actual photos but includes image-text pairs derived from 5.85 billion images and captions posted online since 2008.

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The European Center for Digital Rights, known as Noyb, has filed complaints in 11 European countries to halt Meta's plan to start training vague new AI technologies on European Union-based Facebook and Instagram users' personal posts and pictures.

Meta's AI training data will also be collected from third parties and from using Meta's generative AI features and interacting with pages, the company has said. Additionally, Meta plans to collect information about people who aren't on Facebook or Instagram but are featured in users' posts or photos. The only exception from AI training is made for private messages sent between "friends and family," which will not be processed, Meta's blog said, but private messages sent to businesses and Meta are fair game. And any data collected for AI training could be shared with third parties.

"Unlike the already problematic situation of companies using certain (public) data to train a specific AI system (e.g. a chatbot), Meta's new privacy policy basically says that the company wants to take all public and non-public user data that it has collected since 2007 and use it for any undefined type of current and future 'artificial intelligence technology,'" Noyb alleged in a press release.

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After the most downloaded local news app in the US, NewsBreak, shared an AI-generated story about a fake New Jersey shooting last Christmas Eve, New Jersey police had to post a statement online to reassure troubled citizens that the story was "entirely false," Reuters reported.

"Nothing even similar to this story occurred on or around Christmas, or even in recent memory for the area they described," the cops' Facebook post said. "It seems this 'news' outlet's AI writes fiction they have no problem publishing to readers."

It took NewsBreak—which attracts over 50 million monthly users—four days to remove the fake shooting story, and it apparently wasn't an isolated incident. According to Reuters, NewsBreak's AI tool, which scrapes the web and helps rewrite local news stories, has been used to publish at least 40 misleading or erroneous stories since 2021.

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Australia's safety regulator has ended a legal battle with X (formerly Twitter) after threatening approximately $500,000 daily fines for failing to remove 65 instances of a religiously motivated stabbing video from X globally.

Enforcing Australia's Online Safety Act, eSafety commissioner Julie Inman-Grant had argued it would be dangerous for the videos to keep spreading on X, potentially inciting other acts of terror in Australia.

But X owner Elon Musk refused to comply with the global takedown order, arguing that it would be "unlawful and dangerous" to allow one country to control the global Internet. And Musk was not alone in this fight. The legal director of a nonprofit digital rights group called the Electronic Frontier Foundation (EFF), Corynne McSherry, backed up Musk, urging the court to agree that "no single country should be able to restrict speech across the entire Internet."