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Apple is poised to begin mass production of iPhones in India this year, according to Foxconn Technology Group Chairman Terry Gou. This marks a big shift for the largest assembler of Apple's handsets that has long concentrated production in China. Bloomberg reports: Gou said that Prime Minister Narendra Modi has invited him to India as his Taiwanese company plans its expansion in the country. Apple has had older phones produced at a plant in Bangalore for several years, but now will expand manufacturing to more recent models. Bloomberg News reported this month that Foxconn is ready to start trial production of the latest iPhones in the country before it starts full-scale assembly at its factory outside the southern city of Chennai.

India has become the fastest-growing smartphone market in the world, while China stagnates and Apple loses share to local competitors such as Huawei Technologies Co. and Xiaomi Corp. Apple has been a minor player in India, in part because of its high prices, but local manufacturing would help the Cupertino, California-based company avoid import duties of 20 percent. It's not yet clear how Apple's steps into India will affect its China operations. China has been the company's most important manufacturing base for years, home to Foxconn's biggest facilities and hundreds of other partners.

An anonymous reader quotes a report from Bloomberg: Former Volkswagen AG head Martin Winterkorn was charged with serious fraud in Germany for his role in the diesel-rigging scandal that rocked the carmaker and cost it about $33 billion. The former chief executive officer was accused alongside four other managers of equipping vehicles sold to customers in Europe and the U.S. with a so-called defeat device, authorities in Braunschweig said Monday in an emailed statement. Fraud charges carry a sentence of as long as 10 years, and prosecutors also want to seize bonuses paid to the five men, which ranged from 300,000 euros for some managers to about 11 million euros for Winterkorn.

Allegations that VW wrongfully withheld information about the emission software used in its diesel cars have loomed over the company since the scandal first broke in 2015. The crisis involved as many as 11 million diesel cars worldwide, and shattered the Wolfsburg-based company's reputation. Winterkorn's lawyer Felix Doerr said prosecutors haven't given him full access to their files. Unless all information is disclosed to him, he said, he can't comment on the charges. Winterkorn was also charged with breach of trust for failing to swiftly tell authorities about the defeat devices used "to seemingly meet tightened emission standards for diesel cars and preserve market shares for VW or even increase them for the benefit of the company and the accused themselves," prosecutors said.

An anonymous reader quotes a report from Bloomberg: Jeff Bezos's latest shareholder letter, released on Thursday, opens with the first-ever disclosure of Amazon's total share of sales from the merchants that use the company's e-commerce sites as a sales conduit. The company has long said that those merchants sell about half of the individual items sold on Amazon, but it has never given their contribution to the total value of physical merchandise sold on the site. That number -- a common e-commerce metric known as gross merchandise volume -- has always been a secret at Amazon. Not anymore. Based on Bezos's letter and Amazon's previous disclosures, it's possible to roughly calculate Amazon's gross merchandise volume dating back to 2015. It's a remarkable number -- nearly $300 billion worth of goods sold on Amazon last year. Compare that with the $95 billion in total merchandise and ticket sales reported by eBay, the distant No. 2 player in U.S. e-commerce. (Walmart sells more than $500 billion in merchandise each year, and China's Alibaba sells more than $700 billion in goods.)

But there's a dark cloud in Amazon's figure. The growth of Amazon's total merchandise sales slowed considerably last year, according to Bloomberg Opinion calculations based on Bezos's disclosures. This figure is not the first sign than Amazon's retail juggernaut may have slipped a bit. In 2018, Amazon's nearly $300 billion in GMV was about a 19 percent jump from the prior year. That was notably slower than the rates of increase of 24 percent and 27 percent, respectively, in 2017 and 2016. It's hard to explain the slowdown in Amazon's merchandise sales growth. If anything, it seems as if Amazon is grabbing a larger share of e-commerce sales and that the internet is stealing more sales from physical stores, which have accounted for something like 90 percent of all U.S. retail sales. And yet Amazon's retail sales growth -- although still impressive -- is slowing noticeably.

Google became the world's most profitable internet company on the back of search advertising. Now, it's turning another popular web service into a major cash machine. From a report: Google Maps is an indispensable part of life for more than 1 billion people, who use it to commute, explore new cities or find a hot new restaurant. The service has been mostly free, and free from ads, since it launched 14 years ago.

Interviews with Google executives and customers show this is changing as the internet giant increases the ways advertisers can reach Maps users, while raising prices for some businesses that use the underlying technology. The app now regularly highlights sponsored locations, and shows extra paid listings when people look for nearby gas stations, coffee shops or other businesses. "There's a big opportunity for them to ramp up monetization," said Andy Taylor, associate director of research at digital marketing agency Merkle. "They've been slow-playing it."

"Sometimes I say the most under-monetized asset that I cover is Google Maps," Brian Nowak, an analyst at Morgan Stanley, said while interviewing Google's business chief Philipp Schindler at a recent conference. "It's almost like a utility where it's kind of waiting for you to flip the switch on." Schindler's response showed that Google isn't waiting anymore.

YouTube is changing the way it measures success on the world's biggest video site following a series of scandals. There's just one problem: The company is still deciding how this new approach works, Bloomberg reports. From the report: The Google division introduced two new internal metrics in the past two years for gauging how well videos are performing, according to people familiar with the company's plans. One tracks the total time people spend on YouTube, including comments they post and read (not just the clips they watch). The other is a measurement called "quality watch time," a squishier statistic with a noble goal: To spot content that achieves something more constructive than just keeping users glued to their phones.

The changes are supposed to reward videos that are more palatable to advertisers and the broader public, and help YouTube ward off criticism that its service is addictive and socially corrosive. Creating the right metric for success could help marginalize videos that are inappropriate, or popular among small but active communities with extreme views. It could also help YouTube make up for previous failures in curbing the spread of toxic content. YouTube, like other parts of Alphabet's Google, uses these corporate metrics as goal posts for most business and technical decisions -- how it pays staff and creates critical software like its recommendation system. But the company has yet to settle on how the "quality watch time" metric works, or communicate how the new measure will impact millions of "creators" who upload videos to the site.

Amazon reportedly employs thousands of people around the world to help improve its Alexa digital assistant. "The team listens to voice recordings captured in Echo owners' homes and offices," reports Bloomberg. "The recordings are transcribed, annotated and then fed back into the software as part of an effort to eliminate gaps in Alexa's understanding of human speech and help it better respond to commands." From the report: The team comprises a mix of contractors and full-time Amazon employees who work in outposts from Boston to Costa Rica, India and Romania, according to the people, who signed nondisclosure agreements barring them from speaking publicly about the program. They work nine hours a day, with each reviewer parsing as many as 1,000 audio clips per shift, according to two workers based at Amazon's Bucharest office, which takes up the top three floors of the Globalworth building in the Romanian capital's up-and-coming Pipera district. The modern facility stands out amid the crumbling infrastructure and bears no exterior sign advertising Amazon's presence. The work is mostly mundane. One worker in Boston said he mined accumulated voice data for specific utterances such as "Taylor Swift" and annotated them to indicate the searcher meant the musical artist. Occasionally the listeners pick up things Echo owners likely would rather stay private: a woman singing badly off key in the shower, say, or a child screaming for help. The teams use internal chat rooms to share files when they need help parsing a muddled word -- or come across an amusing recording.

Sometimes they hear recordings they find upsetting, or possibly criminal. Two of the workers said they picked up what they believe was a sexual assault. When something like that happens, they may share the experience in the internal chat room as a way of relieving stress. Amazon says it has procedures in place for workers to follow when they hear something distressing, but two Romania-based employees said that, after requesting guidance for such cases, they were told it wasn't Amazon's job to interfere. [...] Amazon, in its marketing and privacy policy materials, doesn't explicitly say humans are listening to recordings of some conversations picked up by Alexa. "We use your requests to Alexa to train our speech recognition and natural language understanding systems," the company says in a list of frequently asked questions. In Alexa's privacy settings, the company gives users the option of disabling the use of their voice recordings for the development of new features. A screenshot reviewed by Bloomberg shows that the recordings sent to the Alexa auditors don't provide a user's full name and address but are associated with an account number, as well as the user's first name and the device's serial number. An Amazon spokesperson said in a statement to Bloomberg: "We take the security and privacy of our customers' personal information seriously. We only annotate an extremely small sample of Alexa voice recordings in order [to] improve the customer experience. For example, this information helps us train our speech recognition and natural language understanding systems, so Alexa can better understand your requests, and ensure the service works well for everyone."

They added: "We have strict technical and operational safeguards, and have a zero tolerance policy for the abuse of our system. Employees do not have direct access to information that can identify the person or account as part of this workflow. All information is treated with high confidentiality and we use multi-factor authentication to restrict access, service encryption and audits of our control environment to protect it."

Further reading: How To Stop Amazon From Listening To Your Recordings

MDMurphy writes: While people have good and bad things to say about Tesla, one consistent thing has been that the cars emit zero emissions when operating. But in Europe, in exchange for cash, Tesla is merging its fleet with that of Fiat Chrysler Automobiles (FCA). The amount FCA is paying Tesla is presumably less than they would in fines if they were on their own. With this merging of the fleets, in Europe at least, a Tesla is no more clean than a diesel Fiat. "The Italian-American carmaker is behind on meeting the new standard, and the so-called open pool option available at the EU allows automakers to group their fleets together to meet the targets," reports Bloomberg. "Payments to Tesla, whose electric cars don't produce CO2 emissions, may amount to over 500 million euros, according to Jefferies."

Ars Technica reports on the strict new EU regulations: "From 2020, 95 percent of an automaker's new cars sold in the EU have to meet this target, with the remaining 5 percent falling under the law in 2021. And the penalties for failing are draconian: a $107 'excess emissions premium' per gram of CO2 over the target, for every single car registered in the EU that year. For some OEMs, this has the potential to be ruinous; if FCA's portfolio were the same in 2021 as it was in 2018, the automaker would have to pay some $3.12 billion, out of total net global profits of $4.1 billion."

Citing "significant" new corporate investments in AI technology, futurist Gary Grossman argues that AI "may be the fastest paradigm shift in the history of technology -- and warns there's a counter-argument to the theory that AI will create as many jobs as its displaces. "The other view is that this time is different, that we are not just automating labor but also cognition and many fewer people will be needed by industry." KPMG claims more than half of business executives plan to implement some form of AI within the next 12 months... The disruption is already beginning, with fully 75% of the organizations KPMG surveyed expecting intelligent automation to significantly impact 10 to 50% of their employees in the next two years. A Citigroup executive told Bloomberg that better AI could reduce headcount at the bank by 30%. In the face of all this change, many companies publicly state that AI will eliminate some dull and repetitive jobs and make it possible for people to do higher-order work. However, as a prominent venture capitalist relayed to me recently on this topic: "most displaced call center workers don't become Java programmers." It is not only low-skilled jobs that are at risk. Gartner analysts recently reported that AI will eliminate 80% of project management tasks....

A New York Times article noted that while many company executives pay public lip service to "human-centered AI" and the need to provide a safety net for those who lose their jobs, they privately talk about racing to automate their workforces "to stay ahead of the competition, with little regard for the impact on workers." The article also cites a Deloitte survey from 2017 that found 53% of companies had already started to use machines to perform tasks previously done by humans. The figure is expected to climb to 72% by next year.... The net of this dynamic is that workers are not a major factor in the economic calculus of the business drive to adopt AI, despite so many public statements to the contrary.

So perhaps it's not a surprise when the Edelman 2019 AI survey shows a widely held view that AI will lead to short-term job losses with the potential for societal disruption and that AI will benefit the rich and hurt the poor.
He also shares a sobering quote from historian, philosopher, and bestselling author Yuval Noah Harari on why Silicon Valley supports Universal Basic Incomes.

"The message is: 'We don't need you. But we are nice, so we'll take care of you.'"

An anonymous reader writes: "A bad diet kills more people globally than tobacco," reports Bloomberg, citing a new study funded by the Bill & Melinda Gates Foundation and published Wednesday in Lancet. The study argues that poor diets led to 11 million deaths in 2017 -- and that more than half of them were caused by just three main dietary factors: low consumption of whole grains, low consumption of fruits, and high intake of sodium.

In fact, bad diets are responsible for more deaths worldwide than any other cause, the researchers concluded. "We found that improvement of diet could potentially prevent one in every five deaths globally."

Researchers at UpGuard, a cybersecurity firm, found troves of Facebook user information hiding in plain sight, inadvertently posted publicly on Amazon.com's cloud computing servers. From a report: The discovery shows that a year after the Cambridge Analytica scandal exposed how unsecure and widely disseminated Facebook users' information is online, companies that control that information at every step still haven't done enough to seal up private data, Bloomberg News reports. In one instance, Mexico City-based media company Cultura Colectiva openly stored 540 million records on Facebook users, including identification numbers, comments, reactions and account names. That database was closed on Wednesday after Bloomberg alerted Facebook to the problem and Facebook contacted Amazon. Facebook shares pared their gains after the Bloomberg News report. UpGuard adds: The data sets vary in when they were last updated, the data points present, and the number of unique individuals in each. What ties them together is that they both contain data about Facebook users, describing their interests, relationships, and interactions, that were available to third party developers. As Facebook faces scrutiny over its data stewardship practices, they have made efforts to reduce third party access. But as these exposures show, the data genie cannot be put back in the bottle. Data about Facebook users has been spread far beyond the bounds of what Facebook can control today. Combine that plenitude of personal data with storage technologies that are often misconfigured for public access, and the result is a long tail of data about Facebook users that continues to leak.

Proposals to change recommendations and curb conspiracies on YouTube were sacrificed for engagement, Bloomberg reported Monday, citing Google employees. From the report: In recent years, scores of people inside YouTube and Google, its owner, raised concerns about the mass of false, incendiary and toxic content that the world's largest video site surfaced and spread. One employee wanted to flag troubling videos, which fell just short of the hate speech rules, and stop recommending them to viewers. Another wanted to track these videos in a spreadsheet to chart their popularity. A third, fretful of the spread of "alt-right" video bloggers, created an internal vertical that showed just how popular they were. Each time they got the same basic response: Don't rock the boat.

The company spent years chasing one business goal above others: "Engagement," a measure of the views, time spent and interactions with online videos. Conversations with over twenty people who work at, or recently left, YouTube reveal a corporate leadership unable or unwilling to act on these internal alarms for fear of throttling engagement. Wojcicki would "never put her fingers on the scale," said one person who worked for her. "Her view was, 'My job is to run the company, not deal with this.'"

An anonymous reader quotes a report from Electrek: Florida Power & Light has joined the race to build the world's largest solar battery storage system, announcing plans for its massive Manatee Energy Storage Center. The utility plans to build a 409 MW/900 MWh battery, to be powered by an existing FPL solar plant in Manatee County, Florida. It will begin serving customers in 2021. FPL says the battery system will be able to power 329,000 homes for two hours. For comparison, FPL notes the battery system is equivalent to 100 million iPhone batteries, or 300 million AA batteries. The system will be used in periods of high demand. The utility company also said that it will accelerate the retirement of two natural gas facilities at a nearby power plant. "FPL says the project will save customers more than $100 million while eliminating more than 1 million tons of carbon emissions, though no cost estimates for the project were disclosed," reports Electrek.

And while the Manatee Energy Storage Center is projected to be the "world's largest solar-powered battery storage system," it will have some competition from Texas where there are plans to build a 495 MW battery storage system that would be paired with an equivalent 495 MW solar farm in Borden County, Texas. It too is due to come online in 2021.

Last year, a Belgian court ruled that Facebook would have to stop tracking Belgian internet users and delete the data it's already gathered on them, or face fines of about $280,000 a day. "Belgium's data-protection regulators have targeted the company since at least 2015 when a court ordered it to stop storing non-users' personal data," Mercury News reported at the time. Facebook is now fighting the Belgian court's decision, and will go "face to face with the Belgian data protection authority in a Brussels appeals court for a two-day hearing starting on Wednesday," reports Bloomberg. From the report: Armed with new powers since the introduction of stronger European Union data protection rules, Belgium's privacy watchdog argues Facebook "still violates the fundamental rights of millions of residents of Belgium." The Brussels Court of First Instance in February 2018 ruled that Facebook doesn't provide people with enough information about how and why it collects data on their web use, or what it does with the information. "Facebook then uses that information to profile your surfing behavior and uses that profile to show you targeted advertising, such as advertising about products and services from commercial companies, messages from political parties, etc," the Belgian regulator said in an emailed statement on Wednesday.

Belgium's data protection authority last year won the court's backing for its attack against Facebook's use of cookies, social plug-ins -- the "like" or "share" buttons -- and tracking technologies that are invisible to the naked eye to collect data on people's behavior during their visits to other sites. Facebook understands "that people want more information and control over the data Facebook receives from other websites and apps that use our services," the company said in a statement. "That's why we are developing Clear History, that will let you to see the websites and apps that send us information when you use them, disconnect this information from your account, and turn off our ability to store it associated with your account going forward," it said. "We have also made a number of changes to help people understand how our tools work and explain the choices they have, including through our privacy updates."

Employment has fallen in jobs that can be easily automated and risen in those which are trickier for robots, damping hopes that higher minimum wages could unleash a wave of investment in automation. From a report: Statistics from the Office for National Statistics published on Monday showed that in 2011 about 8.1 per cent of workers were in jobs with a "high" risk of automation, but by 2017 that had fallen to 7.4 per cent. [Editor's note: the link may be paywalled; alternative source and original study.] The ONS report highlighted that fewer workers remain in areas that can be easily automated, such as dry cleaning and laundry jobs, which fell by 28 per cent between 2011 and 2017, and retail cashier work, which fell by 25.3 per cent over the same period.

Since the financial crisis the UK has enjoyed rapid growth in employment combined with one of the lowest rates of investment spending of any large rich country. Many economists have suggested that hiring cheap labour instead of investment in new techniques is behind the country's weak rate of productivity growth. Policymakers had hoped that increasing the minimum wage would spur companies to replace low-paid jobs with machines, in turn boosting growth in productivity. [...] But the ONS analysis suggests the increase in employment over the past decade has not come from jobs that could easily be done by machines. Instead, since 2011 the UK lost jobs with a high or medium risk of automation, like shelf fillers, but gained them in areas with a low risk, such as physiotherapy.

Amazon.com has been beta testing its in-house made ads on Apple's iOS platform for several months, Bloomberg reported Thursday, in a move that is described as ecommerce giant's growing efforts to grab a chunk of the $129 billion digital advertising market that is currently dominated by Google and Facebook. Bloomberg's report added that Amazon plans to introduce a similar ad product on Google's Android platform later this year. From the report: Amazon has emerged as a fast-growing challenger in the digital advertising market since it captures 50 percent of all online sales in the US. Amazon's digital advertising market share will grow to 8.8 percent this year from 6.8 percent in 2018, according to EMarketer Market-leader Google will see its share slip to 37.2 percent from 38.2 percent. Selling more video ads opens a new revenue opportunity for Amazon's advertising division, which mostly sells space featuring brand logos, product photographs and descriptions that are the equivalent of digital billboards. Video ad spots are similar to television commercials and can deepen the power of promotion.

China's fleet of electric buses appear to be denting oil demand more than electric cars. "By the end of this year, a cumulative 270,000 barrels a day of diesel demand will have been displaced by electric buses, most of it in China," reports Bloomberg, citing a new report published by BloombergNEF. "That's more than three times the displacement by all the world's passenger electric vehicles (a market where Tesla has a share of about 12 percent)." From the report: Despite rapid growth, the impact on the oil market from electric vehicles remains relatively small. Collectively, buses and electric vehicles account for about 3 percent of oil demand growth since 2011, and 0.3 percent of current global consumption, according to BloombergNEF figures and data from the International Energy Agency. Buses matter more because of their size and constant use. For every 1,000 electric buses on the road, 500 barrels of diesel are displaced each day, BloombergNEF estimates. By comparison, 1,000 battery electric vehicles remove just 15 barrels of oil demand.

Still, the EV market's impact on oil consumption is only going to grow. By 2040, electric vehicles could displace much as 6.4 million barrels a day of demand, while fuel efficiency improvements will erase another 7.5 million barrels a day, according to BloombergNEF's May 2018 long-term EV outlook.

China's fleet of electric buses appear to be denting oil demand more than electric cars. "By the end of this year, a cumulative 270,000 barrels a day of diesel demand will have been displaced by electric buses, most of it in China," reports Bloomberg, citing a new report published by BloombergNEF. "That's more than three times the displacement by all the world's passenger electric vehicles (a market where Tesla has a share of about 12 percent)." From the report: Despite rapid growth, the impact on the oil market from electric vehicles remains relatively small. Collectively, buses and electric vehicles account for about 3 percent of oil demand growth since 2011, and 0.3 percent of current global consumption, according to BloombergNEF figures and data from the International Energy Agency. Buses matter more because of their size and constant use. For every 1,000 electric buses on the road, 500 barrels of diesel are displaced each day, BloombergNEF estimates. By comparison, 1,000 battery electric vehicles remove just 15 barrels of oil demand.

Still, the EV market's impact on oil consumption is only going to grow. By 2040, electric vehicles could displace much as 6.4 million barrels a day of demand, while fuel efficiency improvements will erase another 7.5 million barrels a day, according to BloombergNEF's May 2018 long-term EV outlook.

As the Lion Air crew fought to control their diving Boeing 737 Max 8, they got help from an unexpected source: an off-duty pilot who happened to be riding in the cockpit. Bloomberg reports: That extra pilot, who was seated in the cockpit jumpseat, correctly diagnosed the problem and told the crew how to disable a malfunctioning flight-control system and save the plane, according to two people familiar with Indonesia's investigation. The next day, under command of a different crew facing what investigators said was an identical malfunction, the jetliner crashed into the Java Sea killing all 189 aboard.

The previously undisclosed detail on the earlier Lion Air flight represents a new clue in the mystery of how some 737 Max pilots faced with the malfunction have been able to avert disaster while the others lost control of their planes and crashed. The presence of a third pilot in the cockpit wasn't contained in Indonesia's National Transportation Safety Committee's Nov. 28 report on the crash and hasn't previously been reported. The so-called dead-head pilot on the earlier flight from Bali to Jakarta told the crew to cut power to the motor driving the nose down, according to the people familiar, part of a checklist that all pilots are required to memorize. Further reading: Flawed Analysis, Failed Oversight: How Boeing, FAA Certified the Suspect 737 MAX Flight Control System.

An anonymous reader quotes a report from Bloomberg: Last summer, the Trump administration started a campaign to convince its European allies to bar China's Huawei from their telecom networks. Bolstered by the success of similar efforts in Australia and New Zealand, the White House sent envoys to European capitals with warnings that Huawei's gear would open a backdoor for Chinese spies. The U.S. even threatened to cut off intelligence sharing if Europe ignored its advice. So far, not a single European country has banned Huawei. Europe, caught in the middle of the U.S.-China trade war, has sought to balance concerns about growing Chinese influence with a desire to increase business with the region's second-biggest trading partner. With no ban in the works, Huawei is in the running for contracts to build 5G phone networks, the ultra-fast wireless technology Europe's leaders hope will fuel the growth of a data-based economy.

The U.K.'s spy chief has indicated that a ban on Huawei is unlikely, citing a lack of viable alternatives to upgrade British telecom networks. Italy's government has dismissed the U.S. warnings as it seeks to boost trade with China. In Germany, authorities have proposed tighter security rules for data networks rather than outlawing Huawei. France is doing the same after initially flirting with the idea of restrictions on Huawei. Governments listened to phone companies such as Vodafone Group Plc, Deutsche Telekom AG, and Orange SA, who warned that sidelining Huawei would delay the implementation of 5G by years and add billions of euros in cost. While carriers can also buy equipment from the likes of Ericsson AB, Nokia Oyj, and Samsung Electronics Co., industry consultants say Huawei's quality is high, and the company last year filed 5,405 global patents, more than double the filings by Ericsson and Nokia combined. And some European lawmakers have been wary of Cisco Systems Inc., Huawei's American rival, since Edward Snowden leaked documents revealing the National Security Agency's use of U.S.-made telecom equipment for spying.

Russian President Vladimir Putin has signed two censorship bills into law Monday. One bans "fake news" while the other makes it illegal to insult public officials. Ars Technica reports on the details: Under one bill, individuals can face fines and jail time if they publish material online that shows a "clear disrespect for society, the state, the official state symbols of the Russian Federation, the Constitution of the Russian Federation, and bodies exercising state power." Insults against Putin himself can be punished under the law, The Moscow Times reports. Punishments can be as high as 300,000 rubles ($4,700) and 15 days in jail.

A second bill subjects sites publishing "unreliable socially significant information" to fines as high as 1.5 million rubles ($23,000). [T]he Russian government has "essentially unconstrained authority to determine that any speech is unacceptable. One consequence may be to make it nearly impossible for individuals or groups to call for public protest activity against any action taken by the state," [analyst Matthew Rojansky told the Post]

An anonymous reader shares a report: The explosion of Amazon's private-label products -- batteries, baby wipes, jeans, tortilla chips, sofas -- has prompted concern that the world's biggest online retailer could use its clout to promote these house brands at the expense of merchants selling similar products on the web store. The issue even surfaced in Senator Elizabeth Warren's recent proposal to break up big technology companies. Turns out most Amazon-branded goods are flops that don't threaten other businesses at all, according to Marketplace Pulse. In a study, the New York e-commerce research firm examined 23,000 products and found that shoppers aren't more inclined to buy Amazon brands even when the company elevates them in search results. The study suggests popular political and media narratives about Amazon's market power are overblown, despite the company capturing 52.4 percent of all online spending in the U.S. this year, according to EMarketer.

The study used sales rankings and the number of customer reviews as indicators of sales volume for different products, including Amazon's own brands and brands sold exclusively on the site. Amazon's success has been limited to basic products like batteries where shoppers are inclined to seek generic alternatives to save money, the study found. But when competing against such categories as apparel, where household names have an entrenched position, such Amazon brands as "A for Awesome" children's wear don't stand out, the study found.

Amazon lobbied more government entities last year than any other public U.S. company, covering issues like healthcare, transportation, defense, and labor regulation. "Across 2018, Amazon contacted 40 different federal entities on 21 different general issue areas," reports Fortune, citing a report from Axios. "The only tech giant to lobby on more issues than Amazon was Google's Alphabet." From the report: In terms of money spent, Amazon's $14.4 million is topped only by Alphabet's $21 million, says Bloomberg. While the tech industry overall spent less than half of the $280 million from pharmaceutical and healthcare products companies in Washington, Amazon has increased spending 460% since 2012, growing quickly within its trade. According to Axios, Amazon lobbied on self-driving car and drone issues, hinting at new methods of delivery. It supported a law allowing pharmacists to tell patients when using their insurance is actually more expensive, aiding Amazon's new investment in PillPack. It also covered the labeling of bioengineered food and a pilot program allowing online shoppers to use the Supplemental Nutritional Assistance Program -- signs of Amazon's emerging grocery business.

Amazon's Echo-branded smart speakers have attracted millions of fans with their ability to play music and respond to queries spoken from across the room. But almost four years after inviting outside developers to write apps for Alexa, Amazon's voice system has yet to offer a transformative new experience. From a report: Surveys show most people use their smart speakers to listen to tunes or make relatively simple requests -- "Alexa, set a timer for 30 minutes" -- while more complicated tasks prompt them to give up and reach for their smartphone. Developers had less trouble creating hits for previous generations of technology.

Think Angry Birds or Pokemon Go on the iPhone, or, decades ago, spreadsheets on the first Windows computers. Amazon counts some 80,000 "skills" -- its name for apps -- in its marketplace. It seems impressive, but at this point in their development, Apple's App Store and the Google Play Store each boasted more than 550,000 applications and minted fortunes for many successful developers. "This platform is almost four years old, and you can't point me to one single killer app," says Mark Einhorn, who created a well-reviewed Alexa game that lets users operate a simulated lemonade stand and is one of 10 developers interviewed for this story.

Two associate professors of marketing recently shared research in the Harvard Business Review about how customer service is structured at at tech, travel, and finance companies: [O]ur research suggests that some companies may actually find it profitable to create hassles for complaining customers, even if it were operationally costless not to.... We found that these companies screen complaining callers by using a hierarchical organizational structure. This structure, we argue, keeps a lid on the amount of redress customers are willing to seek. In other words, by forcing customers to jump through hoops, the organization helps curb its redress payouts.

As part of our research, described in a forthcoming article in the journal Marketing Science, we interviewed managers of call centers to understand how their customer service organization is structured, and the way it contains redress payouts. We found that most involve at least two levels of agents. The Level 1 agents take all incoming calls and hear each customer's complaint first. These agents are typically limited in the amount of redress they are authorized to offer to the caller...

So what about the idea that frustrating customers has consequences on customer retention and long term reputation? For example, some experts advise companies with upset customers to reach out to them directly to win them back. But, some companies have little regard for their reputation, especially those who control a large market share... companies with few competitors may find it worthwhile to alienate angry customers in order to save on redress costs.... This may help us understand why some of the most hated companies in America are so profitable and why customer service, unfortunately, remains so frustrating.
At one company "Any caller insisting on a refund was told to call the U.S. headquarters during normal business hours, generating additional tasks for any customer seeking more compensation...

"This design relies on the fact that some consumers are not willing to incur this hassle. When this happens, the company is off the hook for the additional payout."

Samsung is working on a pair of new foldable smartphones to follow its Galaxy Fold, a smartphone with dual screens that fold in half like a notebook, and another that works just like any other. Bloomberg reports: The South Korean manufacturer is said to be developing a clamshell-like device, and another that folds away from the user similar to Huawei's Mate X, people familiar with the matter said, asking not to be identified discussing internal plans. The $1,980 Galaxy Fold that Samsung plans to release in April folds inward like a notebook. While it's still too early to gauge how much demand there will be for smartphones with flexible screens, Samsung and other rivals are eager to gain an edge over Apple Inc. in the $495 billion industry, especially amid cooling sales.

Samsung plans to unveil the vertically folding phone late this year or early next year, and is using mock-ups to fine-tune the design, the people said. The gadget is designed with an extra screen on the outside, but the manufacturer may remove it depending on how customers respond to a similar display on the Galaxy Fold, they said. The outfolding device, which already exists as a prototype after being considered as Samsung's first foldable gadget, will roll out afterward, the people said. It will be thinner because it has no extra screen, they said. Samsung may also incorporate an in-display fingerprint sensor for its foldable lineup, as it did for the Galaxy S10 model announced last month, they said. The report also touched on the Galaxy Fold's screen imperfection. Apparently, a crease "appears on the panel after it's been folded about 10,000 times, and Samsung is considering offering free screen replacements after releasing the product."

"The Galaxy Fold's screen imperfection develops on a protective film covering the touch sensor bonded with the display underneath," the report adds. "That's one reason why Samsung kept the phone inside a glass case at MWC in Barcelona last month."

A bill that's progressing through Russia's legislature could grant local authorities deeper control over internet access. The so-called "Sovereign Internet" bill seeks to set up a centralized hub officials can use to manage the flow of information in the nation. From a report: Putin is touting the initiative as a defensive response to the Trump Administration's new cyber strategy, which permits offensive measures against Russia and other designated adversaries. But industry insiders, security experts and even senior officials say political upheaval is the bigger concern. "This law isn't about foreign threats, or banning Facebook and Google, which Russia can already do legally," said Andrei Soldatov, author of "The Red Web: The Kremlin's Wars on the Internet" and co-founder of Agentura.ru, a site that tracks the security services. "It's about being able to cut off certain types of traffic in certain areas during times of civil unrest."

An anonymous reader quotes the San Francisco Chronicle: Tristan O'Tierney, a co-founder of San Francisco payments company Square, died Feb. 23 in Ocala, Fla., of causes related to addiction, his family said. He was 35...

His family is awaiting an official cause of death from officials. "I do know that it was in relation to his addiction," [his mother] Pamela Tierney said. "I know he got to the hospital, he couldn't breathe and they couldn't revive him." O'Tierney was in a three-month rehabilitation program in Ocala and had been battling addiction for three years, Tierney said. O'Tierney openly discussed his struggles with addiction on social media. "As some of you may know, I've been battling with addiction for these past few years," he wrote in September in a now-deleted Instagram post that he also shared on Twitter. "With some success. A lot of failure too though."
Bloomberg remembers him as a former engineer at Yahoo and Apple who was hired to develop Square's original mobile payment app in 2009, then stayed on until 2013.

"In addition to his parents, O'Tierney is survived by his three-old-year daughter, according to an obituary on the website for the funeral home."

An anonymous reader quotes a report from Bloomberg: Facebook and its Instagram unit sued four companies and three people based in China for promoting the sale of fake accounts, likes and followers that the social network giant says can be used for nefarious purposes. The Chinese companies advertised and created the fake accounts over the last two years and marketed them for sale on six websites, selling them in bulk quantities, according to a complaint filed Friday in San Francisco federal court. "Fake and inauthentic accounts can be used for spam and phishing campaigns, misinformation campaigns, marketing scams, advertising fraud, and other fraud schemes which are profitable at scale," Facebook and Instagram alleged. They said fake accounts were also created on Amazon, Apple, Google, LinkedIn and Twitter. The companies named as defendants -- 9 Xiu Shenzhen, 9 Xiu Feishu, 9 Xiufei and Home Network -- are based in Longyan and Shenzhen. They are affiliated manufacturers of electronics and hardware, as well as providers of software and online advertising services, according to the complaint.

Microsoft has built a "Clinical Trials Bot" that does just as the name implies: suggests links to trials that best match the patients' needs. The bot "lets patients and doctors search for studies related to a disease and then answer a succession of text questions," reports Bloomberg. "Drugmakers can also use it to find test subjects." From the report: Microsoft won't release the bot as its own product. Instead, the software giant is talking to pharmaceutical companies that it hopes will use the bot to find trial participants, while pitching it to other partners that could turn the technology into a tool for patients, said Hadas Bitran, group manager of Microsoft Healthcare Israel. Bitran declined to name possible partners because no deals have been agreed yet. The project is part of a larger Microsoft health-care bot initiative that's helped partners build automatic chat programs for things like triaging patients and answering questions about insurance benefits. The clinical trials bot was accepted as part of the U.S. White House Presidential Innovation Fellows program and Bitran showed it on Thursday at a closed door event at the White House. She will demonstrate the tech publicly on Friday during a session at the U.S. Census Bureau.

The technology uses a form of artificial intelligence called machine reading to ingest the selection criteria for each clinical trial. It uses this data to decide which questions to ask patients and how to match their answers to suitable trials. Here's how it works for patients: They type in a search, such as "trials for a 52-year old California female with breast cancer." The bot responds with questions such as whether the patient had chemotherapy for metastatic disease -- a cancer that has spread -- and how far the patient can travel. It offers five choices that describe the patient's current health and ability to be active and care for herself. As the patient selects from the multiple-choice answers, the software generates the next question and refines the list of available trials.

An anonymous reader quotes a report from The New York Times: Some of the world's biggest internet messaging companies are hoping to succeed where cryptocurrency start-ups have failed by introducing mainstream consumers to the alternative world of digital coins. The internet outfits, including Facebook, Telegram and Signal, are planning to roll out new cryptocurrencies over the next year that are meant to allow users to send money to contacts on their messaging systems, like a Venmo or PayPal that can move across international borders. The most anticipated but secretive project is underway at Facebook. The company is working on a coin that users of WhatsApp, which Facebook owns, could send to friends and family instantly.

The Facebook project is far enough along that the social networking giant has held conversations with cryptocurrency exchanges about selling the Facebook coin to consumers. Telegram, which has an estimated 300 million users worldwide, is also working on a digital coin. Signal, an encrypted messaging service that is popular among technologists and privacy advocates, has its own coin in the works. And so do the biggest messaging applications in South Korea and Japan, Kakao and Line. The messaging companies have a reach that dwarfs the backers of earlier cryptocurrencies. Facebook and Telegram can make the digital wallets used for cryptocurrencies available, in an instant, to hundreds of millions of users. Most of them appear to be working on digital coins that could exist on a decentralized network of computers, independent to some degree of the companies that created them. Facebook reportedly has more than 50 engineers working on their cryptocurrency. Their project is being run by former president of PayPal, David Marcus, and started last year after Telegram raised $1.7 billion to fund its cryptocurrency project. "The five people who have been briefed on the Facebook team's work said the company's most immediate product was likely to be a coin that would be pegged to the value of traditional currencies," NYT reports, citing a report from Bloomberg. "A digital token with a stable value would not be attractive to speculators -- the main audience for cryptocurrencies so far -- but it would allow consumers to hold it and pay for things without worrying about the value of the coin rising and falling." The coin should come out in the first half of the year.

An anonymous reader quotes a report from The New York Times: Some of the world's biggest internet messaging companies are hoping to succeed where cryptocurrency start-ups have failed by introducing mainstream consumers to the alternative world of digital coins. The internet outfits, including Facebook, Telegram and Signal, are planning to roll out new cryptocurrencies over the next year that are meant to allow users to send money to contacts on their messaging systems, like a Venmo or PayPal that can move across international borders. The most anticipated but secretive project is underway at Facebook. The company is working on a coin that users of WhatsApp, which Facebook owns, could send to friends and family instantly.

The Facebook project is far enough along that the social networking giant has held conversations with cryptocurrency exchanges about selling the Facebook coin to consumers. Telegram, which has an estimated 300 million users worldwide, is also working on a digital coin. Signal, an encrypted messaging service that is popular among technologists and privacy advocates, has its own coin in the works. And so do the biggest messaging applications in South Korea and Japan, Kakao and Line. The messaging companies have a reach that dwarfs the backers of earlier cryptocurrencies. Facebook and Telegram can make the digital wallets used for cryptocurrencies available, in an instant, to hundreds of millions of users. Most of them appear to be working on digital coins that could exist on a decentralized network of computers, independent to some degree of the companies that created them. Facebook reportedly has more than 50 engineers working on their cryptocurrency. Their project is being run by former president of PayPal, David Marcus, and started last year after Telegram raised $1.7 billion to fund its cryptocurrency project. "The five people who have been briefed on the Facebook team's work said the company's most immediate product was likely to be a coin that would be pegged to the value of traditional currencies," NYT reports, citing a report from Bloomberg. "A digital token with a stable value would not be attractive to speculators -- the main audience for cryptocurrencies so far -- but it would allow consumers to hold it and pay for things without worrying about the value of the coin rising and falling." The coin should come out in the first half of the year.

Even San Francisco's tech chops can't save it from relying on computers that belong in a museum. From a report: The only place in San Francisco still pricing real estate like it's the 1980s is the city assessor's office. Its property tax system dates back to the dawn of the floppy disk. City employees appraising the market work with software that runs on a dead programming language and can't be used with a mouse. Assessors are prone to make mistakes when using the vintage software because it can't display all the basic information for a given property on one screen. The staffers have to open and exit several menus to input stuff as simple as addresses. To put it mildly, the setup "doesn't reflect business needs now," says the city's assessor, Carmen Chu.

San Francisco rarely conjures images of creaky, decades-old technology, but that's what's running a key swath of its government, as well as those of cities across the U.S. Politicians can often score relatively easy wins with constituents by borrowing money to pay for new roads and bridges, but the digital equivalents of such infrastructure projects generally don't draw the same enthusiasm. "Modernizing technology is not a top issue that typically comes to mind when you talk to taxpayers and constituents on the street," Chu says. It took her office almost four years to secure $36 million for updated assessors' hardware and software that can, among other things, give priority to cases in which delays may prove costly. The design requirements are due to be finalized this summer.

A startup called Veo Robotics is preparing to roll out sensor technology that lets industrial robots work safely side-by-side with humans. "Veo's proprietary technology uses lidar sensors to create real-time maps of factory work spaces, so that robots can slow or stop completely when human workers get too close," Bloomberg reports. From the report: There are more than 2 million industrial robots in operation worldwide, mostly toiling inside metal safety cages. The seclusion is fine for repetitive tasks that can be done entirely by machines, such as arc welding, but the majority of work even in the most automated factories requires involvement of people. Embedding force sensors into industrial limbs is one way to prevent them from plowing through obstacles, but the same technology that makes the arms safe also makes them weak. Most so-called cobots cannot handle weights heavier than 10 kilograms (22 pounds). Computer vision offers a way to get robots into more complex environments, without compromising their strength. Another obstacle is that manufacturers increasingly have to make multiple products on the same assembly line and are constantly retooling their production to accommodate shifting consumer tastes. There are also not enough workers to do the job.

Veo, based in Waltham, Massachusetts, is working closely with the world's biggest robot makers Fanuc Corp., Yaskawa Electric Corp. and Kuka AG. But Veo's first customers are likely to be car companies, manufacturers of durable goods such as household appliances and oil and gas equipment makers, where the shale revolution created demand for more customization. The technology could be used to get machines to present parts to human workers, for loading and unloading fixtures and in palletizing.

A group of Microsoft workers have addressed top executives in a letter demanding the company drop a controversial contract with the U.S. army. The Verge reports: The workers object to the company taking a $479 million contract last year to supply tech for the military's Integrated Visual Augmentation System, or IVAS. Under the project, Microsoft, the maker of the HoloLens augmented reality headset, could eventually provide more than 100,000 headsets designed for combat and training in the military. The Army has described the project as a way to "increase lethality by enhancing the ability to detect, decide and engage before the enemy." "We are alarmed that Microsoft is working to provide weapons technology to the US Military, helping one country's government 'increase lethality' using tools we built," the workers write in the letter, addressed to CEO Satya Nadella and president Brad Smith. "We did not sign up to develop weapons, and we demand a say in how our work is used."

The letter, which organizers say included dozens of employee signatures at publication time, argues Microsoft has "crossed the line into weapons development" with the contract. "Intent to harm is not an acceptable use of our technology," it reads. The workers are demanding the company cancel the contract, stop developing any weapons technology, create a public policy committing to not build weapons technology, and appoint an external ethics review board to enforce the policy. While the letter notes the company has an AI ethics review process called Aether, the workers say it is "not robust enough to prevent weapons development, as the IVAS contract demonstrates." "As employees and shareholders we do not want to become war profiteers," the letter sent today concludes. "To that end, we believe that Microsoft must stop in its activities to empower the U.S. Army's ability to cause harm and violence."

An anonymous reader quotes a report from TechCrunch: Apple has confirmed its plans to close retail stores in the Eastern District of Texas -- a move that will allow the company to better protect itself from patent infringement lawsuits, according to Apple news sites 9to5Mac and MacRumors which broke the news of the stores' closures. Apple says that the impacted retail employees will be offered new jobs with the company as a result of these changes. The company will shut down its Apple Willow Bend store in Plano, Texas as well as its Apple Stonebriar store in Frisco, Texas, MacRumors reported, and Apple confirmed. These stores will permanently close up shop on Friday, April 12. Customers in the region will instead be served by a new Apple store located at the Galleria Dallas Shopping Mall, which is expected to open April 13. "The Eastern District of Texas had become a popular place for patent trolls to file their lawsuits, though a more recent Supreme Court ruling has attempted to crack down on the practice," the report adds. "The court ruled that patent holders could no longer choose where to file." One of the most infamous patent holding firms is VirnetX, which has won several big patent cases against Apple in recent years.

A spokesperson for Apple confirmed the stores' closures, but wouldn't comment on the company's reasoning: "We're making a major investment in our stores in Texas, including significant upgrades to NorthPark Center, Southlake and Knox Street. With a new Dallas store coming to the Dallas Galleria this April, we've made the decision to consolidate stores and close Apple Stonebriar and Apple Willow Bend. All employees from those stores will be offered positions at the new Dallas store or other Apple locations."

An anonymous reader quotes a report from Bloomberg: Disney is said to have pulled its advertising spending from YouTube, joining other companies including Nestle, after a blogger detailed how comments on Google's video site were being used to facilitate a "soft-core pedophilia ring." Some of the videos involved ran next to ads placed by Disney and Nestle. All Nestle companies in the U.S. have paused advertising on YouTube, a spokeswoman for the company said Wednesday in an email. Video game maker Epic Games and German packaged food giant Dr. August Oetker KG also said they had postponed YouTube spending after their ads were shown to play before the videos. Disney has also withheld its spending.

On Sunday, Matt Watson, a video blogger, posted a 20-minute clip detailing how comments on YouTube were used to identify certain videos in which young girls were in activities that could be construed as sexually suggestive, such as posing in front of a mirror and doing gymnastics. Watson's video demonstrated how, if users clicked on one of the videos, YouTube's algorithms recommended similar ones. By Wednesday, Watson's video had been viewed more than 1.7 million times. Total ad spending on the videos mentioned was less than $8,000 within the last 60 days, and YouTube plans refunds, the spokeswoman said. Two years ago, Verizon, AT&T, Johnson & Johnson and other major companies pulled their ads from YouTube after learning that some of their ads surfaced next to extremist and violent content. Yesterday, YouTube released an updated policy about how it will handle content that "crosses the line" of appropriateness.

"Any content -- including comments -- that endangers minors is abhorrent and we have clear policies prohibiting this on YouTube. We took immediate action by deleting accounts and channels, reporting illegal activity to authorities and disabling violative comments," a spokeswoman for YouTube said in an email.

Mark Gurman, reporting for Bloomberg: Apple wants to make it easier for software coders to create tools, games and other applications for its main devices in one fell swoop -- an overhaul designed to encourage app development and, ultimately, boost revenue. The ultimate goal of the multistep initiative, code-named "Marzipan," is by 2021 to help developers build an app once and have it work on the iPhone, iPad and Mac computers, said people familiar with the effort. That should spur the creation of new software, increasing the utility of the company's gadgets.

Later this year, Apple plans to let developers port their iPad apps to Mac computers via a new software development kit that the company will release as early as June at its annual developer conference. Developers will still need to submit separate versions of the app to Apple's iOS and Mac App Stores, but the new kit will mean they don't have to write the underlying software code twice, said the people familiar with the plan. In 2020, Apple plans to expand the kit so iPhone applications can be converted into Mac apps in the same way. Further reading: Tim Cook, in April 2018: Users Don't Want iOS To Merge With MacOS.

Mark Gurman, reporting for Bloomberg: Apple wants to make it easier for software coders to create tools, games and other applications for its main devices in one fell swoop -- an overhaul designed to encourage app development and, ultimately, boost revenue. The ultimate goal of the multistep initiative, code-named "Marzipan," is by 2021 to help developers build an app once and have it work on the iPhone, iPad and Mac computers, said people familiar with the effort. That should spur the creation of new software, increasing the utility of the company's gadgets.

Later this year, Apple plans to let developers port their iPad apps to Mac computers via a new software development kit that the company will release as early as June at its annual developer conference. Developers will still need to submit separate versions of the app to Apple's iOS and Mac App Stores, but the new kit will mean they don't have to write the underlying software code twice, said the people familiar with the plan. In 2020, Apple plans to expand the kit so iPhone applications can be converted into Mac apps in the same way. Further reading: Tim Cook, in April 2018: Users Don't Want iOS To Merge With MacOS.

Cybersecurity firm Crowdstrike says China has largely abandoned a hacking truce negotiated by Barack Obama as President Trump embarked on a trade war with Beijing last year. "A slowdown in Chinese hacking following the cybersecurity agreement Obama's administration secured in 2015 appears to have been reversed, the firm said in a report released Tuesday that reviewed cyber activity by U.S. adversaries in 2018," reports Bloomberg. From the report: The report comes as the Trump administration seeks to reach a trade deal with China, including provisions on intellectual property theft, ahead of a March 1 deadline. Trump has said he may extend that deadline and hold off on increasing tariffs on Chinese imports if there's progress in the talks. China's hacking targets in 2018 included telecommunications systems in the U.S. and Asia, according to Crowdstrike. Groups linked to Iran and Russia also appeared to target telecommunications, a sector that yields "the most bang for your buck" for hackers due to the large number of users that can be accessed after breaching a single network, Meyers said.

The findings align with concern in the U.S. about telecommunications security as the country transitions to the next generation of mobile networks and the Trump administration seeks to secure so-called 5G technology from foreign intelligence gathering. The administration has expressed particular concern about the spread of products made by the Chinese firm Huawei Technologies Co. The report also mentions the increased cyber activity in other parts of the world. "Iran focused much of its cyber activity on Middle Eastern and North African countries while Russia engaged in intelligence collection and information operations worldwide," the report says. "North Korea deployed hackers for financial gain and intelligence collection, while China targeted sectors including technology, manufacturing and hospitality."

An anonymous reader quotes a report from Bloomberg: California Governor Gavin Newsom proposed a "digital dividend" that would let consumers share in the billions of dollars made by technology companies in the most populous U.S. state. In his "State of the State" speech on Tuesday, Newsom said California is proud to be home to tech firms. But he said companies that make billions of dollars "collecting, curating and monetizing our personal data have a duty to protect it. Consumers have a right to know and control how their data is being used." He went further by suggesting the companies share some of those profits, joining other politicians calling for higher levies on the wealthy in U.S. society. "California's consumers should also be able to share in the wealth that is created from their data," Newsom said. "And so I've asked my team to develop a proposal for a new data dividend for Californians, because we recognize that data has value and it belongs to you." Newsom didn't describe what form the dividend might take, although he said "we can do something bold in this space." He also praised a tough California data-privacy law that will kick in next year.

An anonymous reader shares an excerpt from a Bloomberg report: Apple's new campus in Cupertino, California, is a symbol of how the company views itself as an employer: simultaneously inspiring its workers with its magnificent scale while coddling them with its four-story cafe and 100,000-square-foot fitness center. But one group of Apple contractors finds another building, six miles away on Hammerwood Avenue in Sunnyvale, to be a more apt symbol. This building is as bland as the main Apple campus is striking. From the outside, there appears to be a reception area, but it's unstaffed, which makes sense given that people working in this satellite office -- mostly employees of Apple contractors working on Apple Maps -- use the back door. Workers say managers instructed them to walk several blocks away before calling for a ride home. Several people who worked here say it's widely referred to within Apple as a "black site," as in a covert ops facility.

Inside the building, say former workers, they came to expect the vending machines to be understocked, and to have to wait in line to use the men's bathrooms. Architectural surprise and delight wasn't a priority here; after all, the contract workers at Hammerwood almost all leave after their assignments of 12 to 15 months are up. It's not uncommon for workers not to make it that long. According to 14 current and former contractors employed by Apex Systems, a firm that staffs the building as well as other Apple mapping offices, they operated under the constant threat of termination. "It was made pretty plain to us that we were at-will employees and they would fire us at any time," says one former Hammerwood contractor, who, like most of the workers interviewed for this story, spoke on condition of anonymity because he signed a nondisclosure agreement with Apex. "There was a culture of fear among the contractors which I got infected by and probably spread." Apex manages the workers it hires -- not Apple. "Following an inquiry from Bloomberg News, the company says, it conducted a surprise audit of the Hammerwood facility and found a work environment consistent with other Apple locations," reports Bloomberg.

"Like we do with other suppliers, we will work with Apex to review their management systems, including recruiting and termination protocols, to ensure the terms and conditions of employment are transparent and clearly communicated to workers in advance," an Apple spokesperson says in a statement.

Tong Zou wasn't a stereotypical crypto bro bent on accumulating flashy trophies such as Lamborghinis when he deposited his life savings into Quadriga CX's digital exchange. The 30-year-old software engineer, who'd been working in California for seven years, just wanted to save a few bucks on transfer fees after deciding to move to Vancouver. It proved to be a C$560,000 ($422,000) mistake. From a report: "It's all my savings, so I'm just living on what little I have left and trying to start over," Zou said in a phone interview Friday from Vancouver, where he has been living out of an AirBnB for the past month. "It pretty much took everything away from me." Zou is one of Quadriga's 115,000 clients who are out of luck after the sudden death of the firm's founder left C$190 million in cryptocurrencies protected by his passwords unretrievable. The exchange has halted operations and was granted protection from creditors on Feb. 5 in Nova Scotia Supreme Court in Halifax.

Facebook says it has acquired visual shopping and artificial intelligence startup GrokStyle in a move to bolster the social-media company's own AI work. From a report: GrokStyle's technology, which was integrated into Ikea's mobile app, was simple in practice. A user takes a picture of a piece of furniture and the technology would match it to similar products that could be purchased online. On its website, GrokStyle said it is "winding down" its business, but that it is "moving on as a team" along with its technology. The company didn't disclose it's joining Facebook.

Bloomberg's Olivia Carville writes about three apps that are offering a cheaper way for families to connect with incarcerated loved ones. Here's an excerpt from her report: Pigeonly and its ilk have hit on a communication model -- a necessarily inelegant one -- that meets inmates' desire for a more tangible connection while serving the social-media habits of their loved ones. One of the apps, Flikshop, has been affectionately dubbed the "Instagram for prisons." It's an imperfect metaphor perhaps, but the app is the closest thing to the social network in prison, and Flikshop postcards are pinned up on cell walls across the U.S. Beyond giving prisoners an easier, cheaper and more fulfilling way to communicate, the men who started these apps also want to make inmates less likely to re-offend because they see there's a life to be lived on the outside. Decades of research show that recidivism rates fall when prisoners are in regular contact with family. Criminal justice advocacy groups and rehabilitation non-profits have already started using the apps to make the prison population aware of their services.

Frederick Hutson, 34, started Pigeonly, Inc. in 2013, fresh from a five-year stint in federal prison for drug trafficking. "I saw first-hand how difficult and expensive it was to stay in touch," Hutson says. "I also saw how much of an impact that made on the person behind bars. I would see the guys that had the financial means to stay in touch and when they left prison I would hear that they were doing well, but those who didn't have the support network on the outside -- I'd see them coming back in." Pigeonly -- named for the pigeon post services of wartime fame -- wants to become a bridge between those who live in a digital world and those who are imprisoned in an analog one. Customers subscribe to the app for a monthly fee, ranging from $7.99 to $19.99, in order to send photos and messages and have access to cheaper online phone rates. Pigeonly has 20 full-time staff, half of whom were previously incarcerated themselves. Every day, they send up to 4,000 mail orders into county, state and federal penitentiaries across the country.

An anonymous reader quotes a report from Bloomberg: Yoshua Bengio, a Canadian computer scientist who helped pioneer the techniques underpinning much of the current excitement around artificial intelligence, is worried about China's use of AI for surveillance and political control. Bengio, who is also a co-founder of Montreal-based AI software company Element AI, said he was concerned about the technology he helped create being used for controlling people's behavior and influencing their minds. Bengio, a professor at the University of Montreal, is considered one of the three "godfathers" of deep learning, along with Yann LeCun and Geoff Hinton. It's a technology that uses neural networks -- a kind of software loosely based on aspects of the human brain -- to make predictions based on data. It's responsible for recent advances in facial recognition, natural language processing, translation, and recommendation algorithms.

"This is the 1984 Big Brother scenario," he said in an interview. "I think it's becoming more and more scary." "The use of your face to track you should be highly regulated," Bengio said. The amount of data large tech companies control is also a concern. He said the creation of data trusts -- non-profit entities or legal frameworks under which people own their data and allow it be used only for certain purposes -- might be one solution. If a trust held enough data, it could negotiate better terms with big tech companies that needed it, he said Thursday during a talk at Amnesty International U.K.'s office in London. Bengio said there were many ways deep learning software could be used for good. In Thursday's talk, he unveiled a project he's working on that uses AI to create augmented reality images depicting what people's individual homes or neighborhoods might look like as the result of natural disasters spawned by climate change. But he said there was also a risk that the implementation of AI would cause job losses on a scale, and at a speed, that's different from what's happened with other technological innovations. He said governments needed to be proactive in thinking about these risks, including considering new ways to redistribute wealth within society.

Slack, the cloud-based messaging platform, has confidentially filed with regulators to go public in the U.S. "[Slack], previously reported to be pursuing a direct listing of its stock, said in a statement Monday that it had submitted a confidential filing with the [SEC]," reports Bloomberg. "Slack is working with Goldman Sachs, Morgan Stanley, and Allen & Co. on the share sale." From the report: Slack plans to forgo a traditional initial public offering and instead intends to sell its shares to bidders in a direct listing, a person familiar with the matter said last month. While that would preclude the company from raising money by issuing new shares for sale, it would avoid some typical underwriting fees and allow current investors to sell shares without a lock-up period. The company is choosing the unusual method for going public because it doesn't need the cash or publicity of an IPO, the person said at the time. The share sale, which might take place toward mid-year, could value Slack at more than $7 billion, according to the person, who added that the San Francisco-based company's plans could still change.

Slack, the cloud-based messaging platform, has confidentially filed with regulators to go public in the U.S. "[Slack], previously reported to be pursuing a direct listing of its stock, said in a statement Monday that it had submitted a confidential filing with the [SEC]," reports Bloomberg. "Slack is working with Goldman Sachs, Morgan Stanley, and Allen & Co. on the share sale." From the report: Slack plans to forgo a traditional initial public offering and instead intends to sell its shares to bidders in a direct listing, a person familiar with the matter said last month. While that would preclude the company from raising money by issuing new shares for sale, it would avoid some typical underwriting fees and allow current investors to sell shares without a lock-up period. The company is choosing the unusual method for going public because it doesn't need the cash or publicity of an IPO, the person said at the time. The share sale, which might take place toward mid-year, could value Slack at more than $7 billion, according to the person, who added that the San Francisco-based company's plans could still change.

At least six state attorneys general have launched investigations into Facebook, Bloomberg is reporting. From a report: Two distinct groups have formed, according to Bloomberg's report: Pennsylvania and Illinois have joined Connecticut in an investigation of "existing allegations," though the report does not mention what those are. Officials in New York, New Jersey, and Massachusetts, "which were already known to be probing Facebook, are seeking to uncover any potential unknown violations," a source told the news agency.

Bloomberg reported that a Facebook vice president of public policy, Will Castleberry, spun the news as the attorneys general just wanting to help Facebook out by suggesting new privacy initiatives or something. "We're having productive conversations with attorneys general on this important topic," Castleberry wrote in an email to Bloomberg. "Many officials have approached us in a constructive manner, focused on solutions that ensure all companies are protecting people's information, and we look forward to continuing to work with them."

The production-weighted cash cost to create one Bitcoin averaged around $4,060 globally in the fourth quarter, according to analysts with JPMorgan Chase & Co. With Bitcoin itself currently trading below $3,600, that doesn't look like such a good deal. However, there's a big spread around the average, meaning that there are clear winners and losers. From a report: Low-cost Chinese miners are able to pay much less -- the estimate is around $2,400 per Bitcoin -- by leveraging direct power purchasing agreements with electricity generators such as aluminum smelters looking to sell excess power generation, JPMorgan analysts led by Natasha Kaneva said in a wide-ranging Jan. 24 report about cryptocurrencies spearheaded by Joyce Chang. Electricity tends to be the biggest cost for miners, needed to run the high-powered computer rigs used to process data blocks to earn Bitcoin.

"The drop in Bitcoin prices from around $6,500 throughout much of October to below $4,000 now has increasingly pushed margins further and further negative for just about every region except low-cost Chinese miners," the analysts said, offering the caveat that their cost estimates may be skewed to the high side due to spotty data and conservative efficiency assumptions. The cost figures exclude equipment.

schwit1 shares a report from Bloomberg: An Apple hardware engineer was charged by the U.S. with stealing the iPhone maker's driverless car secrets for a China-based company, the second such case since July amid an unprecedented crackdown by the Trump administration on Chinese corporate espionage. Jizhong Chen was seen by a fellow Apple employee taking photographs Jan. 11 with a wide-angle lens inside a secure work space that houses the company's autonomous car project, about six months after he signed a strict confidentiality oath when he was hired, according to a criminal complaint in federal court in San Jose, California. Prosecutors said Chen admitted to taking the photos and backing up some 2,000 files to his personal hard drive, including manuals and schematics for the project, but didn't tell Apple he had applied for a job with a China-based autonomous vehicle company.