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No judge with Tesla stock should handle Elon Musk cases, watchdog argues

No judge with Tesla stock should handle Elon Musk cases, watchdog argues

Enlarge (credit: Bloomberg / Contributor | Bloomberg)

Elon Musk's fight against Media Matters for America (MMFA)—a watchdog organization that he largely blames for an ad boycott that tanked Twitter/X's revenue—has raised an interesting question about whether any judge owning Tesla stock might reasonably be considered biased when weighing any lawsuit centered on the tech billionaire.

In a court filing Monday, MMFA lawyers argued that "undisputed facts—including statements from Musk and Tesla—lay bare the interest Tesla shareholders have in this case." According to the watchdog, any outcome in the litigation will likely impact Tesla's finances, and that's a problem because there's a possibility that the judge in the case, Reed O'Connor, owns Tesla stock.

"X cannot dispute the public association between Musk—his persona, business practices, and public remarks—and the Tesla brand," MMFA argued. "That association would lead a reasonable observer to 'harbor doubts' about whether a judge with a financial interest in Musk could impartially adjudicate this case."

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CrowdStrike’s ubiquity under fire as Congress calls for CEO to testify

Travelers navigate customer service and ticketing lines at Ronald Regan Washington National Airport on July 19, 2024 in Washington, DC. A global computer outage started from an update from the cybersecurity company CrowdStrike that impacted flights worldwide along with disrupting broadcasters and banking services.

Enlarge / Travelers navigate customer service and ticketing lines at Ronald Regan Washington National Airport on July 19, 2024 in Washington, DC. A global computer outage started from an update from the cybersecurity company CrowdStrike that impacted flights worldwide along with disrupting broadcasters and banking services. (credit: Nathan Howard / Stringer | Getty Images News)

In a letter Monday, the House Committee on Homeland Security demanded more transparency from CrowdStrike CEO George Kurtz after major global outages were triggered by a "defect" in a recent update to CrowdStrike's Falcon Sensor software.

Considered by some to be "the largest IT outage in history," the issue delayed or canceled thousands of flights, disabled emergency calls, postponed surgeries, and impacted banks, committee chairman Mark Green (R-Tenn.) and Subcommittee on Cybersecurity and Infrastructure Protection chairman Andrew Garbarino (R-NY) wrote in the letter.

"In less than one day, we have seen major impacts to key functions of the global economy, including aviation, healthcare, banking, media, and emergency services," their letter said. "Recognizing that Americans will undoubtedly feel the lasting, real-world consequences of this incident, they deserve to know in detail how this incident happened and the mitigation steps CrowdStrike is taking."

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Meta risks sanctions over “sneaky” ad-free plans confusing users, EU says

Meta risks sanctions over “sneaky” ad-free plans confusing users, EU says

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The European Commission (EC) has finally taken action to block Meta's heavily criticized plan to charge a subscription fee to users who value privacy on its platforms.

Surprisingly, this step wasn't taken under laws like the Digital Services Act (DSA), the Digital Markets Act (DMA), or the General Data Protection Regulation (GDPR).

Instead, the EC announced Monday that Meta risked sanctions under EU consumer laws if it could not resolve key concerns about Meta's so-called "pay or consent" model.

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Apple “clearly underreporting” child sex abuse, watchdogs say

Apple “clearly underreporting” child sex abuse, watchdogs say

Enlarge (credit: Bloomberg / Contributor | Bloomberg)

After years of controversies over plans to scan iCloud to find more child sexual abuse materials (CSAM), Apple abandoned those plans last year. Now, child safety experts have accused the tech giant of not only failing to flag CSAM exchanged and stored on its services—including iCloud, iMessage, and FaceTime—but also allegedly failing to report all the CSAM that is flagged.

The United Kingdom’s National Society for the Prevention of Cruelty to Children (NSPCC) shared UK police data with The Guardian showing that Apple is "vastly undercounting how often" CSAM is found globally on its services.

According to the NSPCC, police investigated more CSAM cases in just the UK alone in 2023 than Apple reported globally for the entire year. Between April 2022 and March 2023 in England and Wales, the NSPCC found, "Apple was implicated in 337 recorded offenses of child abuse images." But in 2023, Apple only reported 267 instances of CSAM to the National Center for Missing & Exploited Children (NCMEC), supposedly representing all the CSAM on its platforms worldwide, The Guardian reported.

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Elon Musk’s X tests letting users request Community Notes on bad posts

Elon Musk’s X tests letting users request Community Notes on bad posts

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Continuing to evolve the fact-checking service that launched as Twitter's Birdwatch, X has announced that Community Notes can now be requested to clarify problematic posts spreading on Elon Musk's platform.

X's Community Notes account confirmed late Thursday that, due to "popular demand," X had launched a pilot test on the web-based version of the platform. The test is active now and the same functionality will be "coming soon" to Android and iOS, the Community Notes account said.

Through the current web-based pilot, if you're an eligible user, you can click on the "•••" menu on any X post on the web and request fact-checking from one of Community Notes' top contributors, X explained. If X receives five or more requests within 24 hours of the post going live, a Community Note will be added.

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Elon Musk’s X may succeed in blocking Calif. content moderation law on appeal

Elon Musk’s X may succeed in blocking Calif. content moderation law on appeal

Enlarge (credit: Marc Piasecki / Contributor | Getty Images Entertainment)

Elon Musk's fight defending X's content moderation decisions isn't just with hate speech researchers and advertisers. He has also long been battling regulators, and this week, he seemed positioned to secure a potentially big win in California, where he's hoping to permanently block a law that he claims unconstitutionally forces his platform to justify its judgment calls.

At a hearing Wednesday, three judges in the 9th US Circuit Court of Appeals seemed inclined to agree with Musk that a California law requiring disclosures from social media companies that clearly explain their content moderation choices likely violates the First Amendment.

Passed in 2022, AB-587 forces platforms like X to submit a "terms of service report" detailing how they moderate several categories of controversial content. Those categories include hate speech or racism, extremism or radicalization, disinformation or misinformation, harassment, and foreign political interference, which X's lawyer, Joel Kurtzberg, told judges yesterday "are the most controversial categories of so-called awful but lawful speech."

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Meta tells court it won’t sue over Facebook feed-killing tool—yet

Meta tells court it won’t sue over Facebook feed-killing tool—yet

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This week, Meta asked a US district court in California to toss a lawsuit filed by a professor, Ethan Zuckerman, who fears that Meta will sue him if he releases a tool that would give Facebook users an automated way to easily remove all content from their feeds.

Zuckerman has alleged that the imminent threat of a lawsuit from Meta has prevented him from releasing Unfollow Everything 2.0, suggesting that a cease-and-desist letter sent to the creator of the original Unfollow Everything substantiates his fears.

He's hoping the court will find that either releasing his tool would not breach Facebook's terms of use—which prevent "accessing or collecting data from Facebook 'using automated means'"—or that those terms conflict with public policy. Among laws that Facebook's terms allegedly conflict with are the First Amendment, section 230 of the Communications Decency Act, the Computer Fraud and Abuse Act (CFAA), as well as California’s Computer Data Access and Fraud Act (CDAFA) and state privacy laws.

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Google’s $500M effort to wreck Microsoft EU cloud deal failed, report says

Google’s $500M effort to wreck Microsoft EU cloud deal failed, report says

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Google tried to derail a Microsoft antitrust settlement over anticompetitive software licensing in the European Union by offering a $500 million alternative deal to the group of cloud providers behind the EU complaint, Bloomberg reported.

According to Bloomberg, Google's offer to the Cloud Infrastructure Services Providers in Europe (CISPE) required that the group maintain its EU antitrust complaint. It came "just days" before CISPE settled with Microsoft, and it was apparently not compelling enough to stop CISPE from inking a deal with the software giant that TechCrunch noted forced CISPE to accept several compromises.

Bloomberg uncovered Google's attempted counteroffer after reviewing confidential documents and speaking to "people familiar with the matter." Apparently, Google sought to sway CISPE with a package worth nearly $500 million for more than five years of software licenses and about $15 million in cash.

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Dirty diaper resold on Amazon ruined a family business, report says

Dirty diaper resold on Amazon ruined a family business, report says

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A feces-encrusted swim diaper tanked a family business after Amazon re-sold it as new, Bloomberg reported, triggering a bad review that quickly turned a million-dollar mom-and-pop shop into a $600,000 pile of debt.

Paul and Rachelle Baron, owners of Beau & Belle Littles, told Bloomberg that Amazon is supposed to inspect returned items before reselling them. But the company failed to detect the poop stains before reselling a damaged item that triggered a one-star review in 2020 that the couple says doomed their business after more than 100 buyers flagged it as "helpful."

"The diaper arrived used and was covered in poop stains," the review said, urging readers to "see pics."

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Elon Musk calls for “criminal prosecution” of X ad boycott perpetrators

Elon Musk calls for “criminal prosecution” of X ad boycott perpetrators

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After the House of Representatives Committee on the Judiciary released a report accusing the Global Alliance for Responsible Media (GARM) of colluding with companies to censor conservative voices online, Elon Musk chimed in. In a post on X (formerly Twitter), Musk wrote that X "has no choice but to file suit against the perpetrators and collaborators" behind an advertiser boycott on his platform.

"Hopefully, some states will consider criminal prosecution," Musk wrote, leading several X users to suggest that Musk wants it to be illegal for brands to refuse to advertise on X.

Among other allegations, Congress' report claimed that GARM—which is part of the World Federation of Advertisers (WFA), whose members "represent roughly 90 percent of global advertising spend, or almost one trillion dollars annually"—directed advertisers to boycott Twitter shortly after Musk took over the platform.

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Apple settles EU probe by opening up its mobile payments system

Apple settles EU probe by opening up its mobile payments system

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In two weeks, iPhone users in the European Union will be able to use any mobile wallet they like to complete "tap and go" payments with the ease of using Apple Pay.

The change comes as part of a settlement with the European Commission (EC), which investigated Apple for potentially shutting out rivals by denying access to the "Near Field Communication" (NFC) technology on its devices that enables the "tap and go" feature. Apple did not develop this technology, which is free for developers, the EC said, and going forward, Apple agreed to not charge developers fees to provide the NFC functionality on its devices.

In a press release, the EC's executive vice president, Margrethe Vestager, said that Apple's commitments in the settlement address the commission's "preliminary concerns that Apple may have illegally restricted competition for mobile wallets on iPhones."

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Court ordered penalties for 15 teens who created naked AI images of classmates

Court ordered penalties for 15 teens who created naked AI images of classmates

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A Spanish youth court has sentenced 15 minors to one year of probation after spreading AI-generated nude images of female classmates in two WhatsApp groups.

The minors were charged with 20 counts of creating child sex abuse images and 20 counts of offenses against their victims’ moral integrity. In addition to probation, the teens will also be required to attend classes on gender and equality, as well as on the "responsible use of information and communication technologies," a press release from the Juvenile Court of Badajoz said.

Many of the victims were too ashamed to speak up when the inappropriate fake images began spreading last year. Prior to the sentencing, a mother of one of the victims told The Guardian that girls like her daughter "were completely terrified and had tremendous anxiety attacks because they were suffering this in silence."

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Users must prove Amazon ripped them off to revive Buy Box rigging suit

Users must prove Amazon ripped them off to revive Buy Box rigging suit

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A court has dismissed a proposed class-action lawsuit alleging that Amazon's Buy Box was rigged to rip off customers seeking the best deals on the platform.

The suit followed 2022 antitrust probes in the European Union and United Kingdom that found that Amazon's Buy Box hid cheaper items with faster delivery times to preference Fulfilled By Amazon (FBA) sellers since at least 2016.

As a result, Amazon had to change its Buy Box practices and earn back the trust of customers and sellers, the company said in a 2022 blog. Among changes, Amazon agreed to treat all sellers equally when featuring offers in the Buy Box and to promote a second competing offer when a comparable deal is available at either a lower price or with a faster delivery time.

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Report: Z-Library admins on the lam ahead of US extradition; officials shocked

Report: Z-Library admins on the lam ahead of US extradition; officials shocked

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Two Russian citizens arrested for running the pirate e-book site Z-Library have reportedly escaped house arrest in Argentina and vanished after a court approved their extradition to the United States.

Accused by the US of criminal copyright infringement, wire fraud, and money laundering, Anton Napolsky and Valeriia Ermakova were arrested in 2022. Until last May, they were being detained in Argentina while a court mulled the Department of Justice's extradition request, and the US quickly moved to seize Z-Library domains.

But according to a translated article from a local publication called La Voz, the pair suddenly disappeared after submitting a request "to be considered political refugees" in order to "avoid being sent to the US." Napolsky and Ermakova had long denied wrongdoing, and apparently they "ran away" after giving up on the legal process. They reportedly even stopped talking to their defense lawyer.

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First known TikTok mob attack led by middle schoolers tormenting teachers

First known TikTok mob attack led by middle schoolers tormenting teachers

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A bunch of eighth graders in a "wealthy Philadelphia suburb" recently targeted teachers with an extreme online harassment campaign that The New York Times reported was "the first known group TikTok attack of its kind by middle schoolers on their teachers in the United States."

According to The Times, the Great Valley Middle School students created at least 22 fake accounts impersonating about 20 teachers in offensive ways. The fake accounts portrayed long-time, dedicated teachers sharing "pedophilia innuendo, racist memes," and homophobic posts, as well as posts fabricating "sexual hookups among teachers."

The Pennsylvania middle school's principal, Edward Souders, told parents in an email that the number of students creating the fake accounts was likely "small," but that hundreds of students piled on, leaving comments and following the fake accounts. Other students responsibly rushed to report the misconduct, though, Souders said.

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Elon Musk denies tweets misled Twitter investors ahead of purchase

Elon Musk denies tweets misled Twitter investors ahead of purchase

Enlarge (credit: Marc Piasecki / Contributor | Getty Images Entertainment)

Just before the Fourth of July holiday, Elon Musk moved to dismiss a lawsuit alleging that he intentionally misled Twitter investors in 2022 by failing to disclose his growing stake in Twitter while tweeting about potentially starting his own social network in the weeks ahead of announcing his plan to buy Twitter.

Allegedly, Musk devised this fraudulent scheme to reduce the Twitter purchase price by $200 million, a proposed class action filed by an Oklahoma Firefighters pension fund on behalf of all Twitter investors allegedly harmed claimed. But in another court filing this week, Musk insisted that "all indications"—including those referenced in the firefighters' complaint—"point to mistake," not fraud.

According to Musk, evidence showed that he simply misunderstood the Securities Exchange Act when he delayed filing a Rule 13 disclosure of his nearly 10 percent ownership stake in Twitter in March 2022. Musk argued that he believed he was required to disclose this stake at the end of the year, rather than within 10 days after the month in which he amassed a 5 percent stake. He said that previously he'd only filed Rule 13 disclosures as the owner of a company—not as someone suddenly acquiring 5 percent stake.

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The “Netflix of anime” piracy site abruptly shuts down, shocking users

Disney+ promotional art for <em>The Fable</em>, an anime series that triggered Animeflix takedown notices.

Enlarge / Disney+ promotional art for The Fable, an anime series that triggered Animeflix takedown notices. (credit: Disney+)

Thousands of anime fans were shocked Thursday when the popular piracy site Animeflix voluntarily shut down without explaining why, TorrentFreak reported.

"It is with a heavy heart that we announce the closure of Animeflix," the site's operators told users in a Discord with 35,000 members. "After careful consideration, we have decided to shut down our service effective immediately. We deeply appreciate your support and enthusiasm over the years."

Prior to its shutdown, Animeflix attracted millions of monthly visits, TorrentFreak reported. It was preferred by some anime fans for its clean interface, with one fan on Reddit describing Animeflix as the "Netflix of anime."

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Tool preventing AI mimicry cracked; artists wonder what’s next

Tool preventing AI mimicry cracked; artists wonder what’s next

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For many artists, it's a precarious time to post art online. AI image generators keep getting better at cheaply replicating a wider range of unique styles, and basically every popular platform is rushing to update user terms to seize permissions to scrape as much data as possible for AI training.

Defenses against AI training exist—like Glaze, a tool that adds a small amount of imperceptible-to-humans noise to images to stop image generators from copying artists' styles. But they don't provide a permanent solution at a time when tech companies appear determined to chase profits by building ever-more-sophisticated AI models that increasingly threaten to dilute artists' brands and replace them in the market.

In one high-profile example just last month, the estate of Ansel Adams condemned Adobe for selling AI images stealing the famous photographer's style, Smithsonian reported. Adobe quickly responded and removed the AI copycats. But it's not just famous artists who risk being ripped off, and lesser-known artists may struggle to prove AI models are referencing their works. In this largely lawless world, every image uploaded risks contributing to an artist's downfall, potentially watering down demand for their own work each time they promote new pieces online.

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Millions of OnlyFans paywalls make it hard to detect child sex abuse, cops say

Millions of OnlyFans paywalls make it hard to detect child sex abuse, cops say

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OnlyFans' paywalls make it hard for police to detect child sexual abuse materials (CSAM) on the platform, Reuters reported—especially new CSAM that can be harder to uncover online.

Because each OnlyFans creator posts their content behind their own paywall, five specialists in online child sexual abuse told Reuters that it's hard to independently verify just how much CSAM is posted. Cops would seemingly need to subscribe to each account to monitor the entire platform, one expert who aids in police CSAM investigations, Trey Amick, suggested to Reuters.

OnlyFans claims that the amount of CSAM on its platform is extremely low. Out of 3.2 million accounts sharing "hundreds of millions of posts," OnlyFans only removed 347 posts as suspected CSAM in 2023. Each post was voluntarily reported to the CyberTipline of the National Center for Missing and Exploited Children (NCMEC), which OnlyFans told Reuters has "full access" to monitor content on the platform.

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