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Microsoft on Tuesday announced a new campaign to try to "eliminate" the gap in high-speed internet access in the country's hardest-to-reach areas -- an effort called the Rural Airband Initiative, which will set an ambitious target of bringing better broadband to two million Americans within the next five years. From a report: The Redmond, Wash.-based software giant plans to start its efforts in 12 states, offering seed money -- Microsoft wouldn't specify the amount -- to local telecom providers that are trying to improve internet access through means like "white spaces," which are the invisible, wireless radio airwaves that aren't already owned by broadcasters. From Microsoft point of view, this approach -- aimed at delivering speedy wireless internet -- is the best way to improve connectivity in parts of the country that broadband providers long have ignored, given the prohibitive costs of building and sustaining networks there. By Microsoft's count, more than 23 million Americans in rural areas currently lack high-speed internet access, despite billions of dollars in federal investment. But the company emphasized that it is not looking to become a telecom provider -- it's only providing capital to local firms -- and does not seek to profit from the endeavor. Through revenue-sharing agreements, Microsoft instead plans to invest any money it raises in additional projects in other states where internet access is lacking.

An anonymous reader shares a report: Amazon has long had a reputation as a hard-ball negotiator. It turns out its negotiations with Whole Foods leading up to its $13.7 billion acquisition agreement were no different, according to an SEC filing outlining a timeline of the talks between the two companies. On May 23, Amazon made a written offer to acquire Whole Foods for $41 a share, less than a month after the first meeting between senior executives of the companies, the filing said. Whole Foods came back with a counterproposal of $45 a share, which got Amazon to increase its offer to $42. But Amazon's bankers from Goldman Sachs then "stressed several times" that the increase to $42 represented Amazon's "best and final offer." Amazon's bankers "also made it clear again ... that Amazon.com would disengage from its efforts to acquire the company and pursue other alternatives and initiatives if the $42.00 per share price were not accepted," the filing said, "and that Amazon.com expected that the company would not approach other potential bidders while the company was negotiating with Amazon.com." Amazon also threatened it would walk away if the talks leaked to the press, which they did not. Translation: $42 or nada.

An anonymous reader quotes Engadget: The FAA is still trying to figure out the best way to regulate drones to ensure safety. Last week, a committee tasked with tackling the issue met for the first time, including representatives from Amazon, Ford and NYPD. One of the items discussed was a better way to identify registered drones from the ground since any ID numbers are pretty much invisible while the UAV is airborne...

As Recode notes, Congress is working to restore mandatory registration which would be key to tying a drone to its owner for the purposes of any remote identification... Back in March, [drone manufacturer] DJI proposed what it calls an "electronic identification framework" for all drones that would give authorities in the U.S. information about the owner when necessary. That proposal includes using the radio tech DJI says is already on most drones to transmit details like location and registration number. EPIC (Electronic Privacy Information Center) made a similar recommendation back in January 2016... [T]he FAA committee is scheduled to meet again on July 18th. Any formal recommendations are currently due to the agency by September 30th.

Tony Haile, writing for Recode: Facebook has a problem. What has driven its growth for the last five years won't drive its growth for the next five. However, the options in front of the company involve the kind of user experience compromises that have maimed platforms that preceded it. Facebook makes its money from the West. Some 30 percent of its users and 73 percent of its revenue is from North America and Europe. The monthly average revenue per user for Western users is $3.33 versus 53 cents for the rest of the world. Facebook is a global company, but a Western business. Facebook's user growth in the West is a little over 1 percent a quarter. In North America, Facebook's monthly active users represent 80 percent of the population above the age of 14. If Facebook wishes to grow its Western revenue at the rate its shareholders demand, a 1 percent user growth rate will not do it. Absent rapid user growth, the other lever for increasing advertising revenue is increasing the number or value of ads that are shown to existing users. However, the News Feed is close to saturation. Facebook believes that it cannot stick any more ads in the News Feed without adversely affecting user retention. This combination of slowing user growth and News Feed saturation has led Facebook to warn of a rapid deceleration in revenue growth over the next six months. For the first time in years, Facebook needs a new lever to pull.

"Every once in awhile a revolutionary product comes along that changes everything," said co-founder and former Apple CEO Steve Jobs, as he kickstarted the iPhone keynote. Ten years ago, thousands of people around the world listened to him in a mock turtleneck talk about a phone. They liked it so much that they decided to wait outside Apple stores for hours on end to buy one. Little did anyone know the phone -- called the iPhone -- would go on to revolutionize, in the truest sense of the word, the smartphone industry as we know it.

From an Economist article: No product in recent history has changed people's lives more. Without the iPhone, ride-hailing, photo-sharing, instant messaging and other essentials of modern life would be less widespread. Shorn of cumulative sales of 1.2bn devices and revenues of $1trn, Apple would not hold the crown of the world's largest listed company. Thousands of software developers would be poorer, too: the apps they have written for the smartphone make them more than $20bn annually. Here's how some journalists saw the original iPhone. David Pogue, writing for the New York Times: But even in version 1.0, the iPhone is still the most sophisticated, outlook-changing piece of electronics to come along in years. It does so many things so well, and so pleasurably, that you tend to forgive its foibles. Walt Mossberg, writing for the Wall Street Journal: Expectations for the iPhone have been so high that it can't possibly meet them all. It isn't for the average person who just wants a cheap, small phone for calling and texting. But, despite its network limitations, the iPhone is a whole new experience and a pleasure to use. John Gruber's first impressions of the iPhone: The iPhone is 95 percent amazing, 5 percent maddening. I'm just blown away by how nice it is -- very thoughtful UI design and outstanding engineering. It is very fun. Jason Snell, writing for Macworld: To put it more simply: The iPhone is the real deal. It's a product that has already changed the way people look at the devices they carry in their pockets and purses. After only a few days with mine, the prospect of carrying a cellphone with me wherever I go no longer fills me with begrudging acceptance, but actual excitement. Recode has some charts that show how the iPhone has grown over the years. Here's the primer: 1. The iPhone put the internet in everyone's pocket.
2. The iPhone transformed photography from a hobby to a part of everyday life.
3. The iPhone App Store changed the way software was created and distributed.
4. iPhone apps changed everything, even how people work.
5. The iPhone made Apple the world's most valuable company. Apple commentator Horace Dediu writing for Asymco: The iPhone is the best selling product ever, making Apple perhaps the best business ever. Because of the iPhone, Apple has managed to survive to a relatively old age. Not only did it build a device base well over 1 billion it engendered loyalty and satisfaction described only by superlatives. To summarize I can offer two numbers:
1. 1,162,796,000 iPhones sold (to end of March 2017).
2. $742,912,000,000 in revenues. $1 trillion will be reached in less than 18 months. In closing, security researcher Mikko Hypponen tweeted, "iPhone is 10 years old today. After 10 years, not a single serious malware case. It's not just luck; we need to congratulate Apple on this."

The Washington Post, which has been critical of Donald Trump and his administration in its coverage, has become the latest victim in Trump's Twitter tirade. On Wednesday, he accused Amazon of not "paying internet taxes (which they should)," adding that the company is using The Washington Post "in a scheme to dodge" the taxes. Quick fact check: Amazon doesn't own The Washington Post, Jeff Bezos -- in his personal capacity -- does. At any rate, Trump's furious tweets come a day after The Washington Post reported that a fake issue of Time magazine with Trump on the cover was hanging in some of the president's golf clubs. The timing of this is also awkward because just last week the president met with Bezos and other top executives to discuss ways the White House can modernize government and aid the tech industry. But the two have a long history. As Recode reminds: Meanwhile, Amazon is about to embark on what could be a lengthy government antitrust review of its bid to buy Whole Foods. Already looming large over the roughly $14 billion deal are the president's own comments: He has previously attacked Bezos and claimed the Post is a tax-dodging scheme for Amazon. "He thinks I'll go after him for antitrust," Trump said at one point during his campaign. "Because he's got a huge antitrust problem, because he's controlling so much, Amazon is controlling so much of what they are doing." Months later, Trump charged: "Believe me, if I become president, oh, do they have problems, they are going to have such problems." Meanwhile, Bezos isn't one to shy about his anti-Trump views either. At one point during the election, Bezos tweeted that he'd save a seat for Trump on his Blue Origin spacecraft, with the hashtag "sendDonaldtospace."

An anonymous reader shares a report: In five years, the app economy will be worth $6.3 trillion, up from $1.3 trillion last year, according to a report released today by app measurement company App Annie. What explains the growth? More people are spending more time and -- crucially -- more money in apps. While on average people aren't downloading many more apps, App Annie expects global app usership to nearly double to 6.3 billion people in the next five years while the time spent in apps will more than double. And, it expects the average app spend -- including app-store purchases, advertising spend and, most importantly, commerce -- to increase from $379 per person to $1,008 in 2021. The 800-pound -- or $6 trillion -- gorilla in the room is mobile commerce.

U.S. President Donald Trump offered support for emerging technologies including unmanned aerial vehicles and next-generation wireless networks in a meeting on Thursday with the chiefs of AT&T and General Electric and other business leaders. From a report: For the likes of AT&T CEO Randall Stephenson, the public audience with Trump offered an opportunity to continue nudging the U.S. government -- including in a scheduled, private session with the leader of the Federal Communications Commission earlier Thursday -- to cut back on restrictions that make it difficult for AT&T and other telecom giants to grow their footprint and deploy the new technologies, such as 5G wireless. Speaking with Recode later Thursday, Marcelo Claure, the chief executive of Sprint, said that he and others in his industry had emphasized to Trump that the government must help them deploy new tools like small cells -- essentially, mini cell towers that improve wireless connectivity. Trump, for his part, promised Thursday to cut down on "too many years of excessive government regulation" to enable innovators and investments to offer new cutting-edge tools in health care, science, medicine and communication. "We have had regulation that's been so bad, so out of line that it's really hurt our country," he said.

An anonymous reader shares a Recode report: Music industry sources say the carmaker has had talks with all of the major labels about licensing a proprietary music service that would come bundled with its cars, which already come equipped with a high-tech dashboard and internet connectivity. Label sources aren't clear about the full scope of Tesla's ambitions, but believe it is interested in offering multiple tiers of service, starting with a Pandora-like web radio offering. The bigger question: Why doesn't Tesla simply integrate existing services, like Spotify or Apple Music, into all of its cars from the start -- especially since Tesla already does a deal with Spotify for Teslas sold outside the U.S.? "We believe it's important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose," a Tesla spokesperson said. "Our goal is to simply achieve maximum happiness for our customers."

Kara Swisher, writing for Recode: It was Lao Tzu who said that "the journey of a thousand miles begins with a single step." In the case of complete and utter change reeling through Uber right now -- culminating in the resignation of its once untouchable CEO Travis Kalanick -- it turns out that it began with one of the most epic blog posts to be written about what happens when a hot company becomes hostage to its increasingly dysfunctional and toxic behaviors. It was clear from the moment you read the 3,000-word post by former engineer Susan Fowler about her time at the car-hailing company that nothing was going to be the same. Titled simply, "Reflecting on one very, very strange year at Uber," the essay deftly and surgically laid out the map that the media and others would use to prove to its out-to-lunch board and waffling investors that Uber CEO Travis Kalanick had to go. In her account, Fowler was neither mean nor self-righteous, although in reading the story that she laid out about her horrible time there, it would have been completely fair for her to have taken that tone.

Travis Kalanick has resigned as chief executive of Uber after pressure from investors, ending eight years of leading the ride-hailing company that has expanded round the globe but became mired in controversies. From a report: Kalanick had become a giant liability to the car-hailing company for a growing number of reasons, from sketchy business practices to troubling lawsuits to a basic management situation that was akin to really toxic goat rodeo. Thus, he had to go, even though some sources said he had the voting power to stay. But big investors also have leverage and a big enough group of them joined to use it. Those investors include Benchmark, Fidelity and Menlo Ventures, all of whom sent Kalanick a joint letter called "Moving Uber Forward" on Tuesday afternoon. Interestingly, Google Ventures was not among the group, even though its parent company Alphabet is now in a major lawsuit with Uber over the alleged theft of self-driving car technology from its Waymo unit.

Behind the scenes at the White House tech CEO meeting, Apple CEO Tim Cook told President Donald Trump that technology employees are "nervous" about the administration's approach to immigration, CNBC reports, citing a source familiar with the exchange. From the report: The source said the president told the CEOs on Monday that the Senate's health-care bill needs "more heart." That would be a second known instance of the president criticizing the GOP plan in private meetings. To that, the source said, Cook replied that the immigration approach by the administration also "needs more heart." Cook cited the Deferred Action for Childhood Arrivals program, which is under review by the Trump administration. He also said people in tech and their co-workers were nervous about their status, and added that it "would be great" if the president could "send them a signal." Here's what executives of Amazon, Google, and Microsoft said.

Amazon is in the running among a handful of companies looking to acquire the popular chatroom startup, reports Bloomberg. From the article: San Francisco-based Slack could be valued at at least $9 billion in a sale, the people said. An agreement isn't assured and discussions may not go further, said the people. Buying Slack would help Seattle-based Amazon bolster its enterprise services as it seeks to compete with rivals like Microsoft and Alphabet's Google. The company's cloud-hosting unit, Amazon Web Services, in February unveiled a paid-for video and audio conferencing service -- Amazon Chime -- that lets users chat and share content. Kara Swisher, reporting for Recode: Slack, the popular business communications company, is in the midst of raising $500 million at a $5 billion post-money valuation, an effort that has attracted several potential buyers interested in taking out the company ahead of the funding. Those include Amazon, Microsoft, Google and Salesforce, several of which have previously shown interest in acquiring Slack. Bloomberg reported the interest by Amazon today, with a $9 billion sales price.

An anonymous reader quotes a report from Recode: One of the U.S. government's most powerful consumer protection watchdogs appears to be quietly probing Uber and the company's privacy practices. The inquiry is under way at the Federal Trade Commission, according to four sources familiar with the matter, where the agency's investigative staff appears to have focused its attention on some of the data-handling mishaps that have plagued the company in recent years -- perhaps including employees' misuse of "god view," a tool that had previously allowed some at Uber to spy on the whereabouts of politicians, celebrities and others using the ride-hailing app. The sources cautioned to Recode that FTC staff regularly question companies on consumer-protection matters, like privacy -- and often, the agency chooses not to pursue any penalties while closing its investigations as quietly as it began them. Still, the scrutiny could easily blossom into a full-fledged legal complaint against Uber -- a reality the company knows well.

An anonymous reader shares a Recode report: The New York Times says it is going to expand the availability of online comments from 10 percent of articles to 80 percent by the end of the year, without adding more moderators to its staff. How are they going to do this? With a machine-learning algorithm, of course. The Times today is rolling out a new structure of comment moderation using software from Google called Perspective, developed by the company's incubator, Jigsaw. The Moderator tool will automatically approve some comments and help moderators wade through others more quickly.

Japan's SoftBank is buying robotics group Boston Dynamics -- the makers of the bipedal Atlas, the jumping Sand Flea and the animal-like BigDog, Spot and Wildcat robots -- from Alphabet, more than a year after Google's parent put the unit up for sale. From a report: Google acquired Boston Dynamics in 2013 under the leadership of Andy Rubin, the co-inventor of Android, who was leading a wave of acquisitions of robotics companies under the search giant. Boston Dynamics' robots routinely make headlines, including a high-profile demo at this year's TED conference. The company, led by CEO Marc Raibert, has made a robotic cheetah that can run 28 miles per hour, a robotic dog that it recently used to deliver packages to doorsteps in Boston, and most recently a massive legged and wheeled robot that can clear hurdles and walk down stairs. The firm has been hailed by other roboticists for its ability to blend hardware and artificial intelligence to make machines capable of dynamic, agile movements. Its most recent wheeled robot, Handle, can manipulate objects that are comparable to its own weight, and its four-legged, animal-like robots can maneuver over different types of terrain.

An anonymous reader quotes a report from DSLReports: The United States is 28th in terms of wireless broadband data speeds, according to the latest Akamai state of the internet report (pdf, hat tip ReCode). According to the data collected by the company, the United States average mobile broadband speed is now a not-entirely unrespectable 10.7 Mbps. But that speed pales in comparison to the top average speeds being seen in the UK (26 Mbps), Cyprus (24.2 Mbps), Germany (24.1 Mbps), and Finland (21.6 Mbps). The report is quick to note that US carrier efforts to boost speeds via next-generation broadband aren't quite as cutting edge as carrier marketing departments might have you believe. Many U.S. carriers have promised that their own fifth generation (5G) broadband deployments should deliver theoretical speeds up to 1 Gbps as well, but serious deployment isn't expected until 2020 or so. Some of this lagging can be explained away by the United States' mammoth geography, though some of it can also be explained by what, until recently, has been fairly muted but theatrical competition between major carriers.

Verizon's acquisition and merger of AOL and Yahoo will result in many job cuts. According to Recode, up to 1,000 AOL and Yahoo jobs are expected to take place across the two companies as the merger is completed. From the report: This action is not unexpected, given that both companies have a lot of redundancies, including in human resources, finance, marketing and general administration. The merger between the two companies -- after Verizon bought both in succession to add tech and content to its mobile services -- is expected to be completed in the next week. The shareholder meeting to approve the deal takes place tomorrow. Plans to combine both companies have been in the works for a while, as the pair attempt to make a cohesive unit out of two entities that have multiple assets and also multiple problems. It will be headed by AOL CEO Tim Armstrong, who will become the CEO of Oath, the new name for the Verizon subsidiary.

Norman Yee, an American elected official in San Francisco, has recently proposed legislation that would prohibit autonomous delivery robots -- which includes those with a remote human operator -- on public streets in the city. In a statement provided to Recode, Yee said, "our streets and our sidewalks are made for people, not robots." He also worries that many delivery jobs would disappear. The proposed legislation is causing a headache for one high-tech startup in particular. The tech company is called Marble, which uses bots fitted with camera and ultrasonic sensors to deliver small packages and food within a one or two mile radius. The delivery robots themselves travel at a walking pace and use cameras and sensors to avoid pedestrians and navigate pavements. The Guardian reports: San Francisco police commander Robert O'Sullivan is in favor of the legislation, fearing the robots could harm children, the elderly, and those with limited mobility. "If hit by a car, they also have the potential of becoming a deadly projectile," he told a local TV station. Marble CEO Matt Delaney says these fears are unfounded. "We care that our robots are good citizens of the sidewalk," he says. "We've taken a lot of care from the ground up to consider their need to sense and intuit how people are going to react."

Kleiner Perkins Caufield & Byers partner Mary Meeker delivered her annual rapid-fire internet trends report at Code Conference. Here's the summary: 1. Global smartphone growth is slowing: Smartphone shipments grew 3 percent year over year last year, versus 10 percent the year before.
2. Voice is beginning to replace typing in online queries. Twenty percent of mobile queries were made via voice in 2016, while accuracy is now about 95 percent.
3. In 10 years, Netflix went from 0 to more than 30 percent of home entertainment revenue in the U.S. This is happening while TV viewership continues to decline.
4. Entrepreneurs are often fans of gaming, Meeker said, quoting Elon Musk, Reid Hoffman and Mark Zuckerberg. Global interactive gaming is becoming mainstream, with 2.6 billion gamers in 2017 versus 100 million in 1995.
5. China remains a fascinating market, with huge growth in mobile services and payments and services like on-demand bike sharing.
6. While internet growth is slowing globally, that's not the case in India, the fastest growing large economy. The number of internet users in India grew more than 28 percent in 2016.
7. In the U.S. in 2016, 60 percent of the most highly valued tech companies were founded by first- or second-generation Americans and are responsible for 1.5 million employees. Those companies include tech titans Apple, Alphabet, Amazon and Facebook.
8. Healthcare: Wearables are gaining adoption with about 25 percent of Americans owning one, up 12 percent from 2016.

A future with self-driving cars has induced a lot of anxiety about a resulting loss of jobs, but in fact, they'll create tons more jobs, Silicon Valley investor Marc Andreessen (Wikipedia) said at Recode's annual conference on Tuesday evening. "The jobs crisis we have in the U.S. is that we don't have enough workers," he said. From a report: "It's a fallacy," Andreessen said (specifically citing the lump of labor fallacy and the luddite fallacy). "It's a recurring panic. This happens every 25 or 50 years, people get all amped up about 'machines are going to take all the jobs' and it never happens." Andreessen used the example of the rise of the automobile industry a century ago, which many thought would cost the livelihood of everyone whose jobs were to take care of horses. But "the car then created not only a lot of jobs creating cars" but everything else that happened because of the car: Paved streets, restaurants, motels, movie theaters, apartment complexes, office complexes, the entire buildout of suburban America, etc. "The jobs that were created by the automobile on the second, third, and fourth order effects were 100X, 1000X the number of jobs that blacksmiths had," he said.

70-year-old Walt Mossberg wrote his last weekly column Thursday, looking back on how "we've all had a hell of a ride for the last few decades" and revisiting his famous 1991 pronouncement that "Personal computers are just too hard to use, and it isn't your fault." Not only were the interfaces confusing, but most tech products demanded frequent tweaking and fixing of a type that required more technical skill than most people had, or cared to acquire. The whole field was new, and engineers weren't designing products for normal people who had other talents and interests. But, over time, the products have gotten more reliable and easier to use, and the users more sophisticated... So, now, I'd say: "Personal technology is usually pretty easy to use, and, if it's not, it's not your fault." The devices we've come to rely on, like PCs and phones, aren't new anymore. They're refined, built with regular users in mind, and they get better each year. Anything really new is still too close to the engineers to be simple or reliable.
He argues we're now in a strange lull before entering an unrecognizable world where major new breakthroughs in areas like A.I., robotics, smart homes, and augmented reality lead to "ambient computing", where technology itself fades into the background. And he uses his final weekly column to warn that "if we are really going to turn over our homes, our cars, our health and more to private tech companies, on a scale never imagined, we need much, much stronger standards for security and privacy than now exist. Especially in the U.S., it's time to stop dancing around the privacy and security issues and pass real, binding laws."

The number of workers in the so-called gig economy will grow substantially in the coming years, according to a study by Intuit and Emergent Research. By 2021, the study finds, 9.2 million people are going to be working the frontline jobs at companies like Uber and Lyft. That number is projected to be 4.8 million this year. From a report: The rise in on-demand workers has been fueled largely by startups like Uber, TaskRabbit and Airbnb. It has also helped companies like Intuit, which makes tax software QuickBooks and TurboTax. The company's stock surged to an all-time high yesterday thanks to the gig economy. For context, there are currently more gig workers than people employed in the entire information sector (which includes publishing, telecommunication and data processing jobs) and IT services combined, according to data from the Bureau of Labor Statistics. Also read: A recent piece on The New Yorker which talks about the lengths to which people are willing to go to survive in such jobs -- a horrifying culture that is often celebrated in those companies.

bricko quotes a report from Recode: The GOP's leading campaign and fundraising arm, the Republican National Committee, has quietly thrown its support behind a proposal at the Federal Communications Commission that would pave the way for marketers to auto-dial consumers' cellphones and leave them prerecorded voicemail messages -- all without ever causing their devices to ring. Under current federal law, telemarketers and others, like political groups, aren't allowed to launch robocall campaigns targeting cellphones unless they first obtain a consumer's written consent. But businesses stress that it's a different story when it comes to "ringless voicemail" -- because it technically doesn't qualify as a phone call in the first place. In their eyes, that means they shouldn't need a customer or voter's permission if they want to auto-dial mobile voicemail inboxes in bulk pre-made messages about a political candidate, product or cause. And they want the FCC to rule, once and for all, that they're in the clear. Their argument, however, has drawn immense opposition from consumer advocates.

Facebook CEO Mark Zuckerberg on Sunday shared some of what he has learned from his early trips around the country. Recode adds: The actual crux of the post comes later when Zuckerberg writes why he's taking on this new challenge. Basically: He's not running for office, he wants to find ways to strengthen Facebook's "community." Mark said, "I also think this is an area where Facebook can make a difference. Some of you have asked if this challenge means I'm running for public office. I'm not. I'm doing it to get a broader perspective to make sure we're best serving our community of almost 2 billion people at Facebook and doing the best work to promote equal opportunity at the Chan Zuckerberg Initiative. In many ways, relationships are the most important things in our lives -- whether we're trying to form healthy habits, stay out of trouble, or find better opportunities. And yet, research shows the average American has fewer than three close friends we can turn to for support." To make that difference Zuckerberg is talking about, he said that Facebook is helping people find people they already know but is also working on a way to connect you with people that you should know like mentors.

A federal appeals court on Friday struck down a federal rule that required owners of recreational drones and other model aircraft to register the devices with the Federal Aviation Administration. The FAA had announced the rule in 2015 in response to growing reports of drones flying near manned aircraft and airports. Drones have become increasingly popular with hobbyists and more than 550,000 unmanned aircraft were registered within the first year it was required. From a report: The court ruled that the FAA's drone registration rules, which have been in place since 2015, were in violation of a law passed by Congress in 2012. That law, the FAA Modernization and Reform Act, prohibited the FAA from passing any rules on the operation of model aircraft -- in other words, rules that restrict how non-commercial hobbyist drone operators fly. Now, if a person buys a new drone to fly for fun, they no longer have to register that aircraft with the FAA. But if flying for commercial purposes, drone buyers still need to register. The lawsuit was won by John Taylor, a model aircraft enthusiast, who brought the case against the FAA in January 2016. Since first opening the FAA's registration system in December 2015, more than 820,000 people have registered to fly drones.

An anonymous reader writes: Snap CEO Evan Spiegel addressed on Wednesday what many have been hoping he would address for months: What he thinks about Facebook and the fact the social giant is copying all of Snapchat's best features. On Snap's Q1 earnings call Wednesday, Spiegel was asked bluntly: "Does Facebook scare you? Why or why not?" Spiegel laughed. Then talked about how important it is to be creative. Then said this: "At the end of the day, just because Yahoo, for example, has a search box, it doesn't mean they're Google." Fun fact: Yahoo is an investor in Snap.

"The French media and public have been warned not to spread details about a hacking attack on presidential candidate Emmanuel Macron," writes Slashdot reader schwit1, with the election commission threatening criminal charges. But meanwhile, "the leaked documents have since spread like wildfire across social media, particularly on Twitter," reports Recode. Nicole Perlroth, a cybersecurity reporter with the New York Times, pointed out that an overwhelming amount of the tweets shared about the Macron campaign hack appear to come from automated accounts, commonly referred to as bots. About 40% of the tweets using the hashtag #MacronGate, Perlroth noted, are actually coming from only 5% of accounts using the hashtag. One account tweeted 1,668 times in 24 hours, which is more than one tweet per minute with no sleep... Twitter appears not to have done anything to combat what is obviously a bot attack, despite the fact the social media company is well aware of the problem of bot accounts being used to falsely popularize political issues during high-profile campaigns to give the impression of a groundswell of grassroots support.
The Times reporter later tweeted "This could be @twitter's death knell. Algorithms exist to deal with this. Why aren't you using them?" And one Sunlight Foundation official called the discovery "statistics from the front lines of the disinformation wars," cc-ing both Twitter CEO Jack Dorsey and Mark Zuckerberg. In other news, the BBC reports France's president has promised to "respond" to the hacking incident, giving no further details, but saying he was aware of the risks because they'd "happened elsewhere"."

President Donald Trump announced on Monday he has signed an executive order creating a new technology council to "transfer and modernize" the U.S. government's IT systems. From a report: The gathering is part of a new effort, called the American Technology Council, commissioned by Trump in an executive order signed this morning. The effort seeks to bring leading government officials together with Silicon Valley's top minds in order to "transform and modernize" the aging federal bureaucracy "and how it uses and delivers information." Trump isn't the first sitting U.S. president to look to Silicon Valley in an attempt to bring government into the digital age. His predecessor, former President Barack Obama, similarly launched efforts like the U.S. Digital Service, which the administration billed at the time as a "startup at the White House" that sought to pair tech experts with federal agencies that needed help. Over 20 technology chief executives will attend meetings at the White House in early June to talk about improving government information technology, the report adds.

An anonymous reader quotes a report from Recode: The company has recently held discussions with payments industry partners about introducing its own Venmo competitor, according to multiple sources familiar with the talks. The service would allow iPhone owners to send money digitally to other iPhone owners, these people said. One source familiar with the plans told Recode they expect the company to announce the new service later this year. Another cautioned that an announcement and launch date may not yet be set. The new Apple product would compete with offerings from big U.S. banks as well as PayPal, its millennial-popular subsidiary Venmo, as well as Square Cash in the increasingly competitive world of digital money-transfers. Apple has also recently held discussions with Visa about creating its own pre-paid cards that would run on the Visa debit network and which would be tied to the new peer-to-peer service, sources told Recode. People would be able to use the Apple cards to spend money sent to them through the new service, without having to wait for it to clear to their bank account.

Long-time reader Esther Schindler writes: Innovation occurs outside the Bay Area, New York, Boston, and Austin. So why is it so hard for a startup to get attention and acquire venture capital? Steve Case and Kara Swisher discussed this never-ending-topic recently, such as the fact 78% of U.S. venture capital last year went to just three states: California, New York, and Massachusetts. Case sees a "third wave" of venture capital funding and through his VC firm is investing in startups based outside major tech centers.

But, points out Stealthmode's Francine Hardaway, if you're in Boise or Baltimore you don't have to wait for Case to come to town. She shares advice about what's worked in other startup communities, focusing on the #YesPhx efforts.
Conventional wisdom says you should be in a major tech center to get funding, but the article offers an encouraging counterargument. "Never rely on conventional wisdom if you're an innovator. Money follows real innovation."

Apple has been granted a license for testing autonomous vehicles in California, marking the formal launch of its race with the likes of Uber, Alphabet and Tesla to define the future of driverless transportation. The permit was revealed with Apple's appearance on the list of approved companies on the California automotive regulator's website on Friday morning. From a report: This suggests Apple's ambitions in the auto industry are alive, despite some reported upheaval in the project, code-named "Project Titan." Reports last year centered on changing leadership and shifting focus within the project, which is under the command of veteran Apple executive Bob Mansfield. Still, as Apple looks for its next major growth driver after the iPhone -- and as cars increasingly become computers -- it's easy to see why the company would be interested.

An anonymous reader quotes a report from Recode: The company filed an opposition request late last night to Uber's motion for arbitration. If the case went to arbitration, an alternate form for dispute resolution, it would remain in private. Alphabet self-driving subsidiary Waymo "has not consented to arbitrate this dispute with Uber," the new filing said, "and Waymo cannot be coerced into arbitration simply because the trade secrets that Uber stole and that Uber is using in Uber's self-driving cars happen to come from former Waymo employees. That is not the law." Alphabet alleges that its proprietary self-driving technology is being used by the ride-hailing company illegally. The Google parent company claims that Uber's self-driving head at the center of the case, Anthony Levandowski, stole 14,000 files from Alphabet, where he worked on self-driving technology before leaving to launch autonomous truck startup Otto. Uber acquired Otto in August. Alphabet alleged the files Levandowski stole include designs for Alphabet's lidar -- light detection and ranging -- technology. Lidar is a key component to most self-driving systems. Legal arguments aside, there are questions surrounding what might motivate each company's position on openness of proceedings. Alphabet's opposition suggested Uber is seeking to delay proceedings, including a hearing on an injunction Alphabet wants against Uber and to prevent public access to proceedings. "Uber does not like what the public is learning through this litigation about Uber's illegal and unfair competition," the latest filing said.

Walt Mossberg, a well-respected and long-time tech journalist, announced via The Verge that he will be retiring in June of this year. In his announcement post, he starts by reflecting on where it all began: It was a June day when I began my career as a national journalist. I stepped into the Detroit Bureau of The Wall Street Journal and started on what would be a long, varied, rewarding career. I was 23 years old, and the year was 1970. That's not a typo. So it seems fitting to me that I'll be retiring this coming June, almost exactly 47 years later. I'll be hanging it up shortly after the 2017 edition of the Code Conference, a wonderful event I co-founded in 2003 and which I could never have imagined back then in Detroit. I didn't make this decision lightly or hastily or under pressure. It emerged from months of thought and months of talks with my wise wife, my family, and close friends. It wasn't prompted by my employer or by some dire health diagnosis. It just seems like the right time to step away. I'm ready for something new.

From a report on Recode: The Trump administration informed Twitter on Friday that it would withdraw its demand that the social media company unmask an account critical of the president -- a move that prompted Twitter to drop its lawsuit. On Thursday, Twitter revealed that U.S. customs agents filed a legal order in a bid to get the company to reveal who is behind @ALT_USCIS -- a so-called "alt-agency" account that has been taking aim at Trump, his immigration policy and the inner workings of the U.S. Citizenship and Immigration Services.

The co-founder and current board member of Twitter, Ev Williams, said today that he plans to sell a "minority of [his] TWTR" stock over the next year, and doesn't plan to sell "more than 30 percent" of his holdings. Williams is the company's largest individual shareholder, so his recent announcement may make some investors worried. However, Twitter stock was only down less than 1 percent Thursday following this news. Recode reports: Williams was careful to say the sale was for "personal" reasons, not company performance reasons. Twitter's stock is down more than 15 percent over the past three months. Williams explained the sale in a blog post, and wrote that he has spent a lot of money investing through his venture fund, Obvious Ventures, and also donated a lot to charity and political campaigns over the past year. "I'd like to continue," he added. Williams sold about $4 million in stock this week, according to an SEC filing, and has set up a 10b5-1 trading plan, which means he'll sell at pre-determined dates moving forward to avoid any concerns over insider trading.

Roku appears to be arming itself for the coming net neutrality war. From a report on Recode: The web video streaming and hardware company has plenty at stake as the Federal Communications Commission prepares to pull back rules that require internet providers to treat all web traffic equally. For Roku and others in the business, an end to the Obama-era protections could make it harder -- or, in some cases, more expensive -- to offer content or services to customers at top download speeds. That's why Roku has hired a pair of Republican lobbyists through an outside government-affairs firm, according to a federal ethics reports filed this week, specifically to focus on net neutrality. It's the first time the company has ever retained lobbyists in Washington, D.C. Many in the tech industry support the Obama-era FCC's net neutrality rules, which currently subject telecom companies to utility-style regulation. To Democrats, it's the only way to stop the likes of AT&T, Comcast, Charter or Verizon from blocking competing services or charging media companies for faster delivery of their content.

Nathan Ingraham reports via Engadget: Somewhere along the way, Verizon's planned purchase of Yahoo got real complicated. Thanks to security breaches of gargantuan proportions, Yahoo has lost a ton of value -- and the company was struggling even when Verizon announced its intentions to buy the former internet juggernaut. Part of the value lost is in the Yahoo brand, which Verizon apparently considers toxic at this point. To that end, Verizon is changing the name of the combined Yahoo and AOL company. Business Insider first reported that "Oath" will be the new name of the company (which would be the parent company of Engadget). Minutes after we published this story, AOL CEO Tim Armstrong confirmed the change in a tweet. Engadget also makes note of a Recode report, which indicates that current Yahoo CEO Marissa Mayer will not continue with the new company.

Apple isn't done trying to sell you pay TV. From a report on Recode: Here's Apple's latest proposal: It wants to sell consumers a premium TV bundle, which combines HBO, Showtime and Starz. Apple already sells each of those channels individually. But it has approached the three networks about rolling them up into a single package, as conventional pay TV operators sometimes do. The difference: Traditional pay TV operators, like Charter, usually require consumers to subscribe to a basic level of TV channels before it will sell them a premium bundle. Apple could sell the bundle as standalone product, delivered via its iOS devices and its Apple TV settop box. Apple doesn't have a bundle deal in place with any of the premium networks, industry sources say. Apple currently sells HBO for $15 a month, Showtime for $11 a month, and Starz for $9 a month.

gollum123 quotes a report from Recode: Last month, Walmart gathered some of America's biggest household brands near its Arkansas headquarters for a tough talk. For years, Walmart had dominated the retail landscape on the back of its "Everyday Low Price" guarantee. Walmart wants to have the lowest price on 80 percent of its sales, according to a presentation the company made at the summit, which Recode reviewed. To accomplish that, the brands that sell their goods through Walmart would have to cut their wholesale prices or make other cost adjustments to shave at least 15 percent off. In some cases, vendors say they would lose money on each sale if they met Walmart's demands. Brands that agree to play ball with Walmart could expect better distribution and more strategic help from the giant retailer. And to those that didn't? Walmart said it would limit their distribution and create its own branded products to directly challenge its own suppliers. But this time around, Walmart's renewed focus on its "Everyday Low Price" promise coincides with Amazon's increased aggressiveness in its own pricing of the packaged goods that are found on supermarket shelves and are core to Walmart's success, industry executives and consultants say. The result in recent months has been a high-stakes race to the bottom between Walmart and Amazon that seems great for shoppers, but has consumer packaged goods brands feeling the pressure.

Veteran technology columnist Walt Mossberg, writes: Like radio, email isn't dying, it's just changing. Over the past decade or so it's become much more like postal mail. It's not the place you expect to find a greeting from a friend or even a timely update from a professional colleague. Instead, it's a mix of junk mail you hate and discard, plus bills and missives from businesses you also hate but can't discard. [...] Still, despite all signs to the contrary -- and many predictions -- email is not dead. In fact, some analyses suggest that it's growing. Few people can afford to be without it. It hasn't expired; it has morphed. There are lots of reasons email persists, even as faster and simpler forms of communication proliferate and your personal communications likely have mostly migrated elsewhere. But one big one is that new types of media channels rarely totally kill off old ones, even though everyone predicts they will. The old ones just adapt and change. Back in the day, television was supposed to kill off radio, but radio gradually saved itself by dropping the programming TV did better (like dramas and variety shows) and starting to focus on playing hit songs and hosting political and sports talk shows. I think something similar is going on with email. Once the king of digital discourse, email has surely been dethroned by an army of alternatives: Vast and numerous messaging services; photo- and video-oriented sharing on social networks or the photo apps of Apple and Google; business tools like Slack. I get the latest pictures of my granddaughter through iCloud photo sharing. I get the latest discussions of how we plan to cover stories on The Verge or Recode through Slack. My editor and I collaboratively edit my stories inside Google Docs. Ten years ago, all those things would have been done via email. Back then, when a reader wanted to tell me I was an idiot (or worse) for something I wrote, I got an email. Now, they tell me on Twitter.

Facebook is copying Snapchat again. From a report on Recode: Today it launched Stories, the 24-hour photo and video montages that ultimately disappear, inside of its core Facebook app. This is the fourth time Facebook has cloned the key Snapchat feature in the past nine months; the social giant has already copied it into Instagram, Messenger and WhatsApp. On the surface, Facebook's move simply looks like an unabashed defense strategy against Snapchat, the company's most obvious threat since 2011, when Google tried to dive into social with a service that turned out to be much more like a bellyflop. This is getting serious. What many people don't realize is that even if Facebook manages to get half a percent of its users to use its copycat tools, Snapchat will lose a substantial number of potential customers that could have joined its service. With Facebook, which has over 1.8 billion users (+ the possibly tens of millions of people that use WhatsApp, Instagram, or Messenger app and don't have a Facebook account), increasingly offering all of Snapchat's features on its apps, the future of Evan Spiegel's company doesn't look all that good.

First the resignations. "The beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber," the company's former president told Recode on Sunday, announcing his resignation. "The departures add to the executive exodus from Uber this year," writes The New York Times. An anonymous reader quotes their report. Brian McClendon, vice president of maps and business platform at Uber, also plans to leave at the end of the month... Raffi Krikorian, a well-regarded director in Uber's self-driving division, left the company last week, while Gary Marcus, who joined Uber in December after Uber acquired his company, left this month. Uber also asked for the resignation of Amit Singhal, a top engineer who failed to disclose a sexual harassment claim against him at his previous employer, Google, before joining Uber. And Ed Baker, another senior executive, left this month as well.
Jones left Uber after less than six months, though McClendon's departure is said to be more amicable. "Mr. McClendon, in a statement, said he was returning to his hometown, Lawrence, Kansas, after 30 years away. 'This fall's election and the current fiscal crisis in Kansas is driving me to more fully participate in our democracy -- and I want to do that in the place I call home."

In other news, the Teamsters labor union plans to start organizing Uber's drivers into a union, after a Washington judge rejected Uber's attempt to overturn a right-to-unionize ordinance passed by the city of Seattle.

Google's new 18-acre campus will feature a 595,000-square foot building for 2,400 employees, most of them engineers -- and its bottom floor will be open to the public. An anonymous reader quotes Recode: People will be able to walk through the middle of the building, where they can shop in retail stores and dine at cafes also frequented by Googlers... A summary of plans from Google also describes spaces for workshops and demonstrations of new technologies such as virtual reality. Visitors might encounter a pop-up store devoted to virtual reality or demonstrations of smart-home devices made by Alphabet subsidiary Nest, according to the spokesperson... This is the first time Google has built a campus from the ground up...

Generally speaking, Bay Area tech companies have tended to of cut their workplaces off from the communities surrounding them. Employees take private buses to their campuses, and stay on-site for non-work activities like meals in private cafeterias and exercise classes. Google offers similar amenities to its employees, but makes its open, grassy areas open to anyone.
The San Francisco Chronicle reports Google's new building will be "shaped to resemble a puffy white cloud, with solar panels on the roof... The campus also will have a plaza where the public can soak in performances."

Uber may see self-driving cars as "existential" to its future, but the company is nowhere close to having a fully autonomous vehicle. According to internal documents obtained by Recode, during the week ending March 8, Uber's self-driving cars traveled, on average, just 0.8 miles on their own before a human had to take over, in a process known as "disengagement." From the report: As a whole, Uber's self-driving system is putting on many more miles than it did in January. Last week, the company's 43 active cars drove 20,354 miles autonomously, according to the documents. This is only the second time since late December 2016 that its cars have driven more than 20,000 miles in a week. In January, the cars only drove 5,000 miles. At that point, however, the company only had about 20 active vehicles, mainly in Pittsburgh. By February, the company's cars were driving themselves around 18,000 miles a week. Uber passengers took around 930 rides in these autonomous cars in Pittsburgh last week and around 150 rides in Phoenix. To be clear, these vehicles still had a driver at the wheel to take over if needed. In Pittsburgh, where Uber launched its commercial self-driving pilot in September, the company has been performing around 800 or more UberX trips per week in semi-autonomous mode since the middle of February.

Google's new messaging app Allo can reveal your search history and other personal information when you include the Google Assistant bot in chats, according to a report. From the article: My friend directed Assistant to identify itself. Instead of offering a name or a pithy retort, it responded with a link from Harry Potter fan website Pottermore. The link led to an extract from "Harry Potter and the Order of the Phoenix," the fifth book in J.K. Rowling's Harry Potter series. But the response was not merely a nonsequitur. It was a result related to previous searches my friend said he had done a few days earlier. [...] When I asked "What is my job?" in my conversation with my friend, Assistant responded by sharing a Google Maps image showing the address at which I used to work -- the address of a co-working space, not the publicly listed address of my previous employer. Google had the address on file because I had included it in my personal Google Maps settings. It did not ask my permission to share that.

According to Recode, Virginia is the first state to pass legislation allowing delivery robots to operate on sidewalks and crosswalks across the state. The law (HB 2016) was signed by the governor last Friday and will go into effect on July 1. Recode reports: The two Virginia lawmakers who sponsored the bill, Ron Villanueva and Bill DeSteph, teamed up with Starship Technologies, an Estonian-based ground delivery robotics company, to draft the legislation. Robots operating under the new law won't be able to exceed 10 miles per hour or weigh over 50 pounds, but they will be allowed to rove autonomously. The law doesn't require robots to stay within line of sight of a person in control, but a person is required to at least remotely monitor the robot and take over if it goes awry. Robots are only allowed on streets in a crosswalk. Municipalities in the state are allowed to regulate how robots will operate locally, like if a city council wants to impose a stricter speed limit or keep them out entirely.

Snap, the company behind instant messaging app Snapchat, went public this morning at price that values the loss-making tech company at $33 billion. Here's how the investors are valuing the company: At $33 billion, investors are saying Snap is worth 35 times what it's estimated to generate in sales this year, or about $936 million, according to eMarketer. Compare that with Facebook, which is currently worth about 10.5 times its estimated 2017 revenue. In other words, investors, for the moment, think Snap has three times more potential value than Facebook. That's a big bet. Snap lost $514 million last year on $404 million in revenue. Compare that with Twitter, which lost $79 million the year before its IPO, while Facebook made $1 billion in profit. Snap has 158 million daily active users. Facebook at its IPO had 845 million monthly active users and 483 million daily active users.

Following two separate security breaches revealed last year that compromised the personal information of more than 1.5 billion users, Yahoo CEO Marissa Mayer announced today via her Tumblr page that she will be redistributing her annual bonus and equity stock grant to Yahoo employees. The Verge reports: Relevant to Mayer's admission here, an independent committee Yahoo brought on to investigate the hacks found the company to be at fault for not sufficiently responding to the security incidents. "While significant additional security measures were implemented in response to those incidents, it appears certain senior executives did not properly comprehend or investigate, and therefore failed to act sufficiently upon, the full extent of knowledge known internally by the company's information security team," reads the committee's findings, which are contained in Yahoo's 10-K report for 2016. As a result of the hacks, Yahoo's top lawyer, Ron Bell, has been fired, Recode reported today. Mayer has accumulated about $162 million during the five years she's spent as the company's CEO in both salary and stock awards, according to CNN. She's also due about $55 million in severance if she decides to leave the company following its acquisition by Verizon. So it's safe to say her bonus would involve a hefty amount of money now going to Yahoo employees who have weathered the storm throughout Mayer's tumultuous tenure.

A new video published by Bloomberg shows Uber CEO Travis Kalanick arguing with an Uber driver over fares. It all started when one of Kalanick's "companions" appears to say that she's heard that Uber is having a hard year. Bloomberg reports: That pleasant conversation between Kalanick and his friends in the back of an Uber Black? It devolved into a heated argument over Uber's fares between the CEO and his driver, Fawzi Kamel, who then turned over a dashboard recording of the conversation to Bloomberg. Kamel, 37, has been driving for Uber since 2011 and wants to draw attention to the plight of Uber drivers. The video shows off Kalanick's pugnacious personality and short temper, which may cause some investors to question whether he has the disposition to lead a $69 billion company with a footprint that spans the globe. Uber declined to comment on the video. Here's part of the conversation:
Travis Kalanick: "So we are reducing the number of black cars in the next few months."
Fawzi Kamel: "It's good."
Kalanick: "You probably saw some email."
Kamel: "I saw the email [says] it starts in May. But you're raising the standards and dropping the prices."
Kalanick: "We're not dropping the prices on black."
Kamel: "But in general."
Kalanick: "In general but we have competitors. Otherwise we'd be out of business."
Kamel: "Competitors? You had the business model in your hands you could have the prices you want but you choose to buy everybody a ride."

You can read the transcript of the conversation here via Recode.

UPDATE 2/28/17: Uber CEO Travis Kalanick has issued "a profound apology."