AI

Tech Giants Push To Dilute Europe's AI Act (reuters.com) 38

The world's biggest technology companies have embarked on a final push to persuade the European Union to take a light-touch approach to regulating AI as they seek to fend off the risk of billions of dollars in fines. From a report: EU lawmakers in May agreed the AI Act, the world's first comprehensive set of rules governing the technology, following months of intense negotiations between different political groups. But until the law's accompanying codes of practice have been finalised, it remains unclear how strictly rules around "general purpose" AI (GPAI) systems, such as OpenAI's ChatGPT will be enforced and how many copyright lawsuits and multi-billion dollar fines companies may face.

The EU has invited companies, academics, and others to help draft the code of practice, receiving nearly 1,000 applications, an unusually high number according to a source familiar with the matter who requested anonymity because they were not authorised to speak publicly. The AI code of practice will not be legally binding when it takes effect late next year, but it will provide firms with a checklist they can use to demonstrate their compliance. A company claiming to follow the law while ignoring the code could face a legal challenge.

Earth

'Butterfly Emergency' Declared as UK Summer Count Hits Record Low (theguardian.com) 40

A national "butterfly emergency" has been declared by Butterfly Conservation after the lowest Big Butterfly Count since records began. From a report: An average of just seven butterflies per 15-minute count were recorded by participants in this summer's butterfly count, the lowest in the survey's 14-year history. It was the worst year on record for once-ubiquitous species, including the common blue, small tortoiseshell, small white and green-veined white. Eight out of the 10 most-seen species have declined -- in many cases dramatically -- over the count's history. Previous lowest-ever numbers of butterflies-per-count were logged in 2022, 2021 and 2020.

Butterfly Conservation is calling for the government to declare a "nature emergency" and ban insect-killing neonicotinoid pesticides, with no exceptions. Britain and the EU banned neonicotinoids in 2018 but the UK government has authorised an exemption for the pesticides to be used on sugar beet every year since 2021. Before the election, Labour promised to ban all neonicotinoids.
Further reading: UK Nature Chief Sounds Alarm Over Ecosystem Collapse as Butterfly Numbers Halve.
Encryption

Global Police Dismantle Encrypted Messaging App Used By Criminals (ft.com) 36

International police forces have taken down an encrypted communication platform and arrested 51 people, marking a success for co-ordinated efforts to crack down on anonymous messaging services used by criminal groups. FT: Europol and law enforcement agencies from nine countries dismantled Ghost [non-paywalled source], an online platform which used three different encryption standards and allowed users to destroy all messages by sending a specific code, Europol announced on Wednesday. The crackdown is the latest operation by international agencies to decode encrypted messaging services used by criminals to manage their international operations, following the takedown of platforms such as EncroChat and Sky ECC in recent years.

[...] McLean said Ghost was administered by a 32-year-old man from Australia, one of the operation's principal targets. As a result of the decryption operation, where officers broke the app's code so they could read users' messages, the death or injury of as many as 50 people could have been prevented, McLean said.

Crime

$50M In Counterfeit Vintage Consoles and Videogames Seized From Italian Crime Ring (bbc.com) 30

Police in Italy "smashed" a videogame trafficking ring, reports the BBC. They seized fake vintage Nintendo, Sega and Atari consoles that didn't meet strict safety standards, as well as counterfeit games — including Mario Bros., Street Fighter and Star Wars — that together were worth almost €50m ($55.5m) Around 12,000 consoles holding over 47 million pirated video games were seized by police, Alessandro Langella, head of the economic crime unit for Turin's financial police, told the AFP news agency... They were "all from China" and were imported to be sold in specialised shops or online, Mr Langella said...

The seized games have been destroyed. Nine Italian nationals have been arrested and charged with trading in counterfeited goods. If found guilty, they face up to eight years in prison.

Networking

'Samba' Networking Protocol Project Gets Big Funding from the German Sovereign Tech Fund (samba.plus) 33

Samba is "a free software re-implementation of the SMB networking protocol," according to Wikipedia. And now the Samba project "has secured significant funding (€688,800.00) from the German Sovereign Tech Fund to advance the project," writes Jeremy Allison — Sam (who is Slashdot reader #8,157 — and also a long standing member of Samba's core team): The investment was successfully applied for by [information security service provider] SerNet. Over the next 18 months, Samba developers from SerNet will tackle 17 key development subprojects aimed at enhancing Samba's security, scalability, and functionality.

The Sovereign Tech Fund is a German federal government funding program that supports the development, improvement, and maintenance of open digital infrastructure. Their goal is to sustainably strengthen the open source ecosystem.

The project's focus is on areas like SMB3 Transparent Failover, SMB3 UNIX extensions, SMB-Direct, Performance and modern security protocols such as SMB over QUIC. These improvements are designed to ensure that Samba remains a robust and secure solution for organizations that rely on a sovereign IT infrastructure. Development work began as early as September the 1st and is expected to be completed by the end of February 2026 for all sub-projects.

All development will be done in the open following the existing Samba development process. First gitlab CI pipelines have already been running and gitlab MRs will appear soon!

Back in 2000, Jeremy Allison answered questions from Slashdot readers about Samba.

Allison is now a board member at both the GNOME Foundation and the Software Freedom Conservancy, a distinguished engineer at Rocky Linux creator CIQ, and a long-time free software advocate.
Apple

Apple Must Pay $14 Billion Tax Bill To Ireland, EU Court Rules (telegraph.co.uk) 189

Bruce66423 shares a report: The European Union's top court ruled against Apple Tuesday in the tech company's protracted legal battle over contested back taxes in Ireland. The ruling means Apple will be forced to pay Ireland up to $14.4 billion in back taxes and represents the latest setback in Europe for the tech giant. Earlier this year, Apple became the first company to be accused of violating the EU's new major tech competition law. The tax case stretches back to 2016, when the European Commission (EC) ordered Apple repay Ireland roughly $14.4 billion of unpaid taxes.

The commission argued that the tech giant had received "illegal" tax benefits from Ireland over the course of two decades. Apple had housed its European headquarters in Ireland and paid a corporate tax rate of less than 1% in some years, which the EC argued gave Apple an unfair advantage over other companies. Apple and Ireland appealed the decision in 2019. The European Court of Justice on Tuesday overturned the lower court decision and upheld the EC's 2016 order. "Today is a big win for European citizens and for tax justice. The Court of Justice confirms ... that Ireland granted Apple unlawful aid which Ireland now has to recover," Margrethe Vestager, the EU competition chief, said in a statement Tuesday.

Google

Google's 2.4 Billion Euro Fine Upheld By Europe's Top Court in EU Antitrust Probe (cnbc.com) 11

Europe's top court on Tuesday upheld a 2.4 billion euro ($2.65 billion) fine imposed on Google for abusing its dominant position by favoring its own shopping comparison service. From a report: The fine stems from an antitrust investigation by the European Commission, the executive arm of the European Union, which concluded in 2017. The commission said at the time that Google had favored its own shopping comparison service over those of its rivals. Google appealed the decision with the General Court, the EU's second-highest court, which also upheld the fine. Google then brought the case before the European Court of Justice, the EU's top court.

The ECJ on Tuesday dismissed the appeal and upheld the commission's fine. "We are disappointed with the decision of the Court," a Google spokesperson told CNBC on Tuesday. "This judgment relates to a very specific set of facts. We made changes back in 2017 to comply with the European Commission's decision. Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services."

Crime

Pacific Islands Submit Court Proposal For Recognition of Ecocide As a Crime 58

Vanuatu, Fiji, and Samoa have proposed a change to the International Criminal Court (ICC) to recognize ecocide as a crime, allowing for the prosecution of individuals responsible for significant environmental harm. If successful, the change would recognize ecocide as a crime alongside genocide and war crimes. The Guardian reports: Vanuatu, Fiji and Samoa have proposed a formal recognition by the court of the crime of ecocide, defined as "unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment being caused by those acts." The proposal was tabled before the ICC in New York on Monday afternoon, and will have to be discussed in full at a later date. Holding full discussions on the proposal is a process likely to take some years, and will face fierce opposition, though much of it will be behind the scenes as most countries will not wish to openly speak out against it.

Philippe Sands KC, a prominent international lawyer and professor of law at University College London, acted as a co-chair of the independent expert panel for the legal definition of ecocide, convened by the Stop Ecocide Foundation. He told the Guardian he was "100% certain" that ecocide would eventually be recognized by the court. "The only question is when," he said. "I was skeptical at first, but now I am a true believer. There has already been real change, as some countries have put it in domestic law. I think this is the right idea at the right time." Belgium recently adopted ecocide as a crime, and the EU has changed some of its guidance on international crime to include it as a "qualified" offense. Mexico is also considering such a law. [...]

Getting to the point where the ICC will consider the proposal has taken years. Stop Ecocide International has been campaigning on the issue since 2017, and Vanuatu made the first call for the crime to be recognized by the ICC in 2019. Although it could take as long as a decade from now before anyone is charged with ecocide even if the changes were implemented by the ICC, the proposal tabled on Monday was vital to gaining broader acceptance of the concept, according to [Jojo Mehta, a co-founder of the Stop Ecocide International campaigning group, which is an observer to the ICC]. "There has been growing progress, as people are increasingly aware of the threat of climate [breakdown]," she said. "People are saying that this much harm to the planet is just not acceptable."
EU

US, UK, EU Sign 'Legally Binding' AI Treaty 51

The United States, United Kingdom and European Union have signed the first "legally binding" international AI treaty on Thursday, the Council of Europe human rights organization said. Called the AI Convention, the treaty promotes responsible innovation and addresses the risks AI may pose. Reuters reports: The AI Convention mainly focuses on the protection of human rights of people affected by AI systems and is separate from the EU AI Act, which entered into force last month. The EU's AI Act entails comprehensive regulations on the development, deployment, and use of AI systems within the EU internal market. The Council of Europe, founded in 1949, is an international organization distinct from the EU with a mandate to safeguard human rights; 46 countries are members, including all the 27 EU member states. An ad hoc committee in 2019 started examining the feasibility of an AI framework convention and a Committee on Artificial Intelligence was formed in 2022 which drafted and negotiated the text. The signatories can choose to adopt or maintain legislative, administrative or other measures to give effect to the provisions.

Francesca Fanucci, a legal expert at ECNL (European Center for Not-for-Profit Law Stichting) who contributed to the treaty's drafting process alongside other civil society groups, told Reuters the agreement had been "watered down" into a broad set of principles. "The formulation of principles and obligations in this convention is so overbroad and fraught with caveats that it raises serious questions about their legal certainty and effective enforceability," she said. Fanucci highlighted exemptions on AI systems used for national security purposes, and limited scrutiny of private companies versus the public sector, as flaws. "This double standard is disappointing," she added.
Businesses

Deutsche Bank Chief Tells Germans: Work Longer and Harder (politico.eu) 176

Deutsche Bank CEO Christian Sewing this week urged Germans to work harder to help restore the country's economy. From a report: "Investors are already doubting our ability to reform, but especially our ability and our will to perform," Sewing said at the Handelsblatt banking summit in Frankfurt. "More growth in Germany will come only if we also change our attitude to work; if we are prepared to work differently, but overall to work more and harder." Sewing said that EU citizens work about 34 hours a week on average compared with about 28 hours in Germany.

He argued that Germany should embrace longer work-weeks. "We won't manage it with an average of 28 hours per week and a pension at 63," he said. The euro area's biggest economy has been digesting a slate of negative economic data recently. For starters, the German economy contracted in the second quarter of the year, while at the start of the month, the manufacturing purchasing managers index (PMI), a key indicator of industrial sentiment, flashed negative, marking over a year it's been in negative territory.

The Courts

Clearview AI Fined $33.7 Million Over 'Illegal Database' of Faces (apnews.com) 40

An anonymous reader quotes a report from the Associated Press: The Dutch data protection watchdog on Tuesday issued facial recognition startup Clearview AI with a fine of $33.7 million over its creation of what the agency called an "illegal database" of billion of photos of faces. The Netherlands' Data Protection Agency, or DPA, also warned Dutch companies that using Clearview's services is also banned. The data agency said that New York-based Clearview "has not objected to this decision and is therefore unable to appeal against the fine."

But in a statement emailed to The Associated Press, Clearview's chief legal officer, Jack Mulcaire, said that the decision is "unlawful, devoid of due process and is unenforceable." The Dutch agency said that building the database and insufficiently informing people whose images appear in the database amounted to serious breaches of the European Union's General Data Protection Regulation, or GDPR. "Facial recognition is a highly intrusive technology, that you cannot simply unleash on anyone in the world," DPA chairman Aleid Wolfsen said in a statement. "If there is a photo of you on the Internet -- and doesn't that apply to all of us? -- then you can end up in the database of Clearview and be tracked. This is not a doom scenario from a scary film. Nor is it something that could only be done in China," he said. DPA said that if Clearview doesn't halt the breaches of the regulation, it faces noncompliance penalties of up to $5.6 million on top of the fine.
Mulcaire said Clearview doesn't fall under EU data protection regulations. "Clearview AI does not have a place of business in the Netherlands or the EU, it does not have any customers in the Netherlands or the EU, and does not undertake any activities that would otherwise mean it is subject to the GDPR," he said.
Apple

Spotify Points Finger at Apple Over an Unwelcome Change To Volume Control Tech (techcrunch.com) 82

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.

EU

EU Investigating Telegram Over User Numbers (ft.com) 48

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."

AI

Klarna Aims To Halve Workforce With AI-Driven Gains (ft.com) 49

Klarna aims to extend AI-driven cuts to its workforce with plans to axe almost half of its staff [non-paywalled source], as the lossmaking Swedish buy now, pay later company gears up for a stock market flotation. FT: Chief executive Sebastian Siemiatkowski heralded the benefits of AI in Klarna's second-quarter results on Tuesday, which showed a significant narrowing of its net loss from SKr854mn ($84mn) a year earlier to SKr10mn. The Swedish fintech has already cut its workforce from 5,000 to 3,800 in the past year. Siemiatkowski told the Financial Times that Klarna could employ as few as 2,000 employees in the coming years as it uses AI in tasks such as customer service and marketing.

"Not only can we do more with less, but we can do much more with less. Internally, we speak directionally about 2,000 [employees]. We don't want to put a specific deadline on that," he added. Klarna has imposed a hiring freeze on workers apart from engineers and is using natural attrition rather than lay-offs to shrink its workforce. Siemiatkowski has become one of the most outspoken European tech bosses about the benefits of AI, even if it leads to lower employment, arguing that is an issue for governments to worry about. The Stockholm-based group is lining up financial advisers for its long-anticipated initial public offering -- due as early as the first half of next year -- with Morgan Stanley, JPMorgan Chase and Goldman Sachs in lead positions to secure top roles, people familiar with the matter have previously told the FT.

The Military

Telegram CEO Pavel Durov's Arrest Upends Kremlin Military Communications (politico.eu) 107

Telegram founder and CEO Pavel Durov was arrested Saturday night by French authorities on allegations that his social media platform was being used for child pornography, drug trafficking and organized crime. The move sparked debate over free speech worldwide from prominent anti-censorship figures including Elon Musk, Robert F. Kennedy. Jr. and Edward Snowden. However, "the immediate freakout came from Russia," reports Politico. "That's because Telegram is widely used by the Russian military for battlefield communications thanks to problems with rolling out its own secure comms system. It's also the primary vehicle for pro-war military bloggers and media -- as well as millions of ordinary Russians." From the report: "They practically detained the head of communication of the Russian army," Russian military blogger channel Povernutie na Z Voine said in a Telegram statement. The blog site Dva Mayora said that Russian specialists are working on an alternative to Telegram, but that the Russian army's Main Communications Directorate has "not shown any real interest" in getting such a system to Russian troops. The site said Durov's arrest may actually speed up the development of an independent comms system. Alarmed Russian policymakers are calling for Durov's release.

"[Durov's] arrest may have political grounds and be a tool for gaining access to the personal information of Telegram users," the Deputy Speaker of the Russian Duma Vladislav Davankov said in a Telegram statement. "This cannot be allowed. If the French authorities refuse to release Pavel Durov from custody, I propose making every effort to move him to the UAE or the Russian Federation. With his consent, of course." Their worry is that Durov may hand over encryption keys to the French authorities, allowing access to the platform and any communications that users thought was encrypted.

French President Emmanuel Macron said Monday that the arrest of Durov was "in no way a political decision." The Russian embassy has demanded that it get access to Durov, but the Kremlin has so far not issued a statement on the arrest. "Before saying anything, we should wait for the situation to become clearer," said Kremlin spokesperson Dmitry Peskov. However, officials and law enforcement agencies were instructed to clear all their communication from Telegram, the pro-Kremlin channel Baza reported. "Everyone who is used to using the platform for sensitive conversations/conversations should delete those conversations right now and not do it again," Kremlin propagandist Margarita Simonyan said in a Telegram post. "Durov has been shut down to get the keys. And he's going to give them."

Your Rights Online

Macron on Telegram CEO's Arrest: French Government Was Not Involved (politico.eu) 85

President Emmanuel Macron said Monday that the French government was not involved in the arrest of Telegram founder and CEO Pavel Durov. From a report: "The arrest of Telegram's president on French territory took place as part of an ongoing judicial investigation. This is in no way a political decision. It is up to the judges to decide," Macron said. Durov was detained Saturday night after his private jet arrived in Paris. The Paris prosecutor has not yet communicated the reasons for the arrest of Durov, who founded the messaging app in 2013.

The tech chief currently remains in policy custody. The arrest follows probes "accusing Telegram of being complicit in numerous affairs linked to drug trafficking, apology for terrorism and cyberbullying," French daily Le Monde reported. In a statement, Telegram said that its CEO -- a Russian-born French-Emirati citizen -- had "nothing to hide" and that the company abided by EU law.

[...] "More than anything else, France is committed to freedom of expression and communication, innovation and entrepreneurship," Macron said Monday. "In a state governed by the rule of law, on social networks as in real life, freedoms are exercised within a framework established by law to protect citizens and respect their fundamental rights."

EU

Apple Will Allow EU Users To Delete Safari, Messages and App Store Apps (yahoo.com) 47

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.

Apple

Apple is Still Standing in the Way of Epic's App Store (theverge.com) 59

Epic Games launched its alternative app store in the European Union last week, capitalizing on new regulations opening up iOS. The store aims to offer developers lower commissions and greater payment flexibility compared to Apple's App Store. However, Apple's new terms for alternative marketplaces present significant challenges for developers. Apple imposes a 50 euro cent per user per year installation fee, a 10% commission on external sales, and a 5% fee on purchases within a year of installation.

These fees apply on top of Epic's 12% commission, potentially making the alternative store less attractive for many developers, The Verge writes. While Epic can likely absorb these costs for its hit game Fortnite, smaller developers face a steeper hurdle. Some industry insiders express skepticism about the viability of the new ecosystem for most app creators. Epic plans to offer a curated selection of third-party games on its mobile store by December, but widespread adoption remains uncertain.
Businesses

App Store VP Departs As Apple Prepares Organizational Changes (macrumors.com) 9

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.

EU

Epic Games Store Debuts on Mobile, Fortnite Returns To iOS in EU (ign.com) 20

Epic Games launched its digital app store on iOS and Android devices on Friday, marking Fortnite's return to Apple's platform in the European Union after a four-year absence. The move follows the implementation of the EU's Digital Markets Act, which mandates Apple to allow third-party app stores. Epic's store is available globally on Android and in the EU for iOS devices running iOS 17.6 or later.

Fortnite, along with Rocket League Sideswipe and Fall Guys, are now accessible through Epic's mobile store and the EU's AltStore. This marks Fall Guys' mobile debut. Epic CEO Tim Sweeney hailed the development as "tangible progress" but noted challenges remain, including Apple's new fees for third-party app distribution. The company aims for 100 million mobile store installations by year-end and plans to offer third-party games by December, with self-publishing slated for early 2025. Epic's 88/12 revenue split model will extend to mobile, potentially disrupting the mobile gaming marketplace dominated by Apple and Google.

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