French prosecutors say Telegram arrest part of broad investigation | Chinese government hackers penetrate US internet providers to spy | Malaysia social media licensing plan criticised by Big Tech
Good morning. It's Wednesday 28th August.
The Daily Cyber & Tech Digest focuses on the topics we work on, including cybersecurity, critical technologies, foreign interference & disinformation.
Follow us on Twitter and on LinkedIn.
Prosecutors in France said on Monday that Pavel Durov, the entrepreneur who runs the Telegram messaging platform, had been arrested in connection with an investigation opened last month into criminal activity on the app and a lack of cooperation with law enforcement. Laure Beccuau, the Paris prosecutor, said in a statement that the arrest was part of an investigation opened on July 8 “against person unnamed” on a raft of potential charges, including complicity in the distribution of child pornography and selling of drugs, money laundering, and a refusal to cooperate with law enforcement. The New York Times
Chinese government-backed hackers have penetrated deep into US internet service providers in recent months to spy on their users, according to people familiar with the ongoing American response and private security researchers. The unusually aggressive and sophisticated attacks include access to at least two major US providers with millions of customers as well as to several smaller providers, people familiar with the separate campaigns said. The Washington Post
Malaysia's proposed licensing regime for social media and private messaging platforms has come under fire as a group of prominent tech companies warn the new rules could significantly harm the country's digital economy. In a letter dated Monday to Prime Minister Anwar Ibrahim, the Asia Internet Coalition, which represents global tech giants like Google, Facebook owner Meta and X, expressed concerns about the lack of industry consultation and the potential for regulatory uncertainty. Nikkei Asia
ASPI
Australia
Google wants to slash what it pays news outlets as levy calls grow
The Australian Financial Review
Sam Buckingham-Jones
Google is trying to reduce what it spends on commercial deals with some smaller digital news publishers, amid growing calls for a levy on technology giants to fund journalism after Meta walked away from the News Media Bargaining Code. Two sources with knowledge of Google’s dealings with news outlets, who are not permitted to speak on its behalf, said the search giant was looking to significantly shrink the size of some of its deals under the code.
Like the US, Australia remains badly unprepared for drone threats
The Strategist
Oleg Vornik
Prominent security failures have demonstrated that even nations regarded as the most well-equipped to handle domestic threats are wildly unprepared to deal with drones as tools of surveillance and direct attack. In countries such as Australia and the United States, drones are not being detected, and, even if they are, authorities and defence forces are not equipped for economically and safely destroying them.
China
China’s export curbs on semiconductor materials stoke chip output fears
Financial Times
Harry Dempsey and Edward White
Chinese export controls on crucial semiconductor materials are hitting supply chains and stoking fears of shortfalls in western production of advanced chips and military optical hardware. Beijing’s curbs on shipments of germanium and gallium, which are used for semiconductor applications and military and communications equipment components, have led to an almost twofold increase in the minerals’ prices in Europe over the past year.
PDD’s $55 billion stock crash sends warning on Chinese economy
Bloomberg
One of the last remaining bright spots for Chinese consumption is rapidly fading, as the nation’s economic malaise takes a toll on demand for even the most accessible of goods. In the latest warning to global markets on the health of the Chinese economy, Temu-owner PDD Holdings Inc. on Monday surprised investors with an unusually gloomy outlook. The e-commerce firm, which became a market darling with low-priced goods that helped propel sales and profits during China’s economic downturn, also reported revenue that missed estimates. During a post-earnings briefing, CEO Chen Lei mentioned at least eight times that revenue and profits must “inevitably” decline as economic growth slows.
Steam surpasses 37 million concurrent users for the first time ever thanks to Black Myth: Wukong
PC Gamer
Andy Chalk
Steam has surpassed 37 million concurrent users for the first time in its history: That's 37,242,724 people connected to Valve's digital distribution platform at the same time. Most of the credit for surpassing the big Three-Seven, I think, has to go to Black Myth: Wukong, which launched on Steam on August 19 and quickly powered its way to the top of the charts, becoming the second-most played Steam game of all time.
USA
Chinese government hackers penetrate US internet providers to spy
The Washington Post
Joseph Menn
Chinese government-backed hackers have penetrated deep into US internet service providers in recent months to spy on their users, according to people familiar with the ongoing American response and private security researchers. The unusually aggressive and sophisticated attacks include access to at least two major US providers with millions of customers as well as to several smaller providers, people familiar with the separate campaigns said.
Mark Zuckerberg says White House was ‘wrong’ to pressure Facebook on Covid
The Wall Street Journal
Siobhan Hughes
Meta Platforms Chief Executive Mark Zuckerberg said it was improper for the Biden administration to have pressured Facebook to censor content in 2021 related to the coronavirus pandemic, vowing that the social-media giant would reject any such future efforts. Zuckerberg also said he didn’t plan to repeat efforts to fund nonprofits to assist in state election efforts, a Covid-era push that had drawn Republican criticism and sparked many Republican-leaning states to ban the practice.
OpenAI supports California AI bill requiring 'watermarking' of synthetic content
Reuters
Anna Tong
ChatGPT developer OpenAI is supporting a California bill that would require tech companies to label AI-generated content, which can range from harmless memes to deepfakes aimed at spreading misinformation about political candidates. The bill, called AB 3211, has so far been overshadowed by attention on another California state artificial intelligence bill, SB 1047, which mandates that AI developers conduct safety testing on some of their own models.
Elon Musk voices support for California bill requiring safety tests on AI models
Reuters
Elon Musk, who also owns social media platform X, said on Monday he feels California should pass an AI bill that would require tech companies and AI developers to conduct safety testing on some of their own models.
Missouri AG’s legal war against Media Matters shot down by federal judge
ArsTechnica
Jon Brodkin
A federal judge ordered Missouri's attorney general to halt an investigation into Media Matters for America, a nonprofit journalism organization that earned Elon Musk's wrath when it published an article showing that Musk's X platform placed advertisements next to pro-Nazi posts. In March, Missouri AG Andrew Bailey issued an investigative demand seeking names and addresses of all Media Matters donors who live in Missouri and a range of internal communications and documents regarding the group's research on Musk and X.
Far-right ‘Terrorgram’ chatrooms are fueling a wave of power grid attacks
Bloomberg
Jeff Stone
People in a quiet neighborhood in Carthage, a town in Moore County, North Carolina, heard a series of six loud pops a few minutes before 8:00 p.m. on Dec. 3, 2022. The noise turned out to be someone shooting a rifle at a power substation next door to Campbell’s home. The substation, operated by the utility Duke Energy, consists of equipment that converts electricity into different voltages as it’s transported to the area and then steered into individual houses. A subsequent investigation has pointed to a local right-wing group, one of a wave of attacks or planned
US to award HP $50 mln for semiconductor tech project
Reuters
David Shepardson
The U.S. Commerce Department said Tuesday it plans to award $50 million to HP, opens new tab to support the expansion and modernization of an existing company facility in Oregon that will boost key semiconductor technologies. The proposed funding will support technologies that serve life sciences instrumentation and technology hardware used in artificial intelligence applications and other projects, the department said.
North Asia
Japan's SBI to take big stake in AI unicorn preferred networks
Nikkei Asia
Masayuki Shikata and Misaki Morikawa
Japanese financial services group SBI Holdings plans to invest around 10 billion yen ($69 million) in Tokyo-based Preferred Networks and work with the startup on designing chips for artificial intelligence, Nikkei has learned. Preferred Networks is preparing for a private placement of shares to about 10 mostly Japanese companies. SBI is expected to play the leading role in this fundraising round, making it one of the startup's top investors alongside Toyota Motor.
Sony hikes PlayStation 5 price in Japan citing cost volatility
Bloomberg
Takashi Mochizuki
Sony Group Corp. is raising the price of its PlayStation 5 in Japan by 19% to nearly ¥80,000 (USD$550) almost four years into the console’s life cycle. The surprise move comes even as PS5 sales have slowed and Sony is widely expected to refresh its offering with a more powerful, mid-cycle revamp of the console in coming months. Prices of accessories like the DualSense wireless controller and Pulse wireless headset are also set to rise in Japan from Sept. 2.
Southeast Asia
Malaysia's social media licensing plan draws criticism from Big Tech
Nikkei Asia
Norman Goh
Malaysia's proposed licensing regime for social media and private messaging platforms has come under fire as a group of prominent tech companies warn the new rules could significantly harm the country's digital economy. In a letter dated Monday to Prime Minister Anwar Ibrahim, the Asia Internet Coalition, which represents global tech giants like Google, Facebook owner Meta and X, expressed concerns about the lack of industry consultation and the potential for regulatory uncertainty.
Thailand’s approach to Smart City development
OpenGov Asia
Azizah Saffa
In the era of digital transformation initiatives, the Smart City Operations Centre at Khon Kaen University, Khon Kaen Province, in collaboration with the Office of the Public Sector Development Commission, has launched a cutting-edge city data dashboard. This advanced digital tool is positioned to drive smart city development and revolutionise spatial management and decision-making, establishing Khon Kaen as a frontrunner in Thailand’s digital innovation landscape.
South & Central Asia
India's CBDC has 5M users, can be phased in gradually: Central Bank Governor
CoinDesk
Amitoj Singh
India's central bank Governor Shaktikanta Das has said that while their retail central bank digital currency (CBDC) pilot has over 5 million users, there should not be in any rush to roll out a system-wide CBDC. India's plans for a retail and wholesale CBDC were announced as part of the Finance Minister's budget speech in 2022. By 2022-end, the RBI launched pilots for both CBDCs.
Ukraine-Russia
Russia says France better come up with strong evidence against Telegram CEO
POLITICO
Csongor Körömi
Russian President Vladimir Putin’s press secretary has a warning for France: You better have a good case against Telegram CEO Pavel Durov. “The accusations are very serious indeed, and they require an equally serious basis of evidence,” Kremlin spokesperson Dmitry Peskov said at his press briefing Tuesday according to news agency Interfax. “Otherwise, this is a direct attempt to restrict freedom of communication and, one could even say, to directly intimidate the head of a large company.
Europe
Telegram founder’s arrest part of broad investigation, French prosecutors say
The New York Times
Aurelien Breeden, Adam Satariano and Paul Mozur
Prosecutors in France said on Monday that Pavel Durov, the entrepreneur who runs the Telegram messaging platform, had been arrested in connection with an investigation opened last month into criminal activity on the app and a lack of cooperation with law enforcement. Laure Beccuau, the Paris prosecutor, said in a statement that the arrest was part of an investigation opened on July 8 “against person unnamed” on a raft of potential charges, including complicity in the distribution of child pornography and selling of drugs, money laundering, and a refusal to cooperate with law enforcement.
Macron on Telegram CEO’s arrest: French government was not involved
POLITICO
"The arrest of Telegram's president on French territory took place as part of an ongoing judicial investigation. This is in no way a political decision. It is up to the judges to decide," Macron said.
Macron loves Telegram. French judges hate it.
POLITICO
Macron has been a Telegram user since the early days of his first presidential campaign. Nearly a decade later, the app remains widely used by both cabinet members and political officials of all ranks and parties, particularly within pro-Macron circles.
Telegram’s loudest defender: The global crypto industry
The New York Times
Crypto enthusiasts pledged to support Mr. Durov, posting the hashtag #FreeDurov. Others investors declared that the arrest was an assault on free speech. “Can’t even imagine a day without Telegram,” one crypto user wrote.
The wave of support for Mr. Durov was a reflection of the multitrillion-dollar crypto industry’s heavy reliance on Telegram.
Google refused permission to build data center near Dublin
Bloomberg
Olivia Fletcher
Alphabet Inc.’s Google has been refused permission to build a data center just outside Dublin for failing to meet some of Ireland’s sustainability requirements. The tech giant’s plan to develop a 72,400 square-meter (779,310 square-foot) data storage facility was rejected by South Dublin County Council in a decision published last week. The council wrote that Google hadn’t provided enough detail on “how the proposal will impact the power supply once operational” in 2027, according to the decision.
Big Tech
Amazon aims to launch delayed AI Alexa subscription in October
The Washington Post
Caroline O'Donovan
Amazon is preparing to launch its delayed overhaul of personal voice assistant Alexa in October, according to internal documents obtained by The Washington Post, as it faces new competition from artificial intelligence voice assistants from rivals. Access to the upgraded version of the assistant will require a paid subscription, the documents said. Alexa has previously struggled to accurately answer questions about political news events, such as who won the 2020 U.S. presidential election.
Self-driving truck company TuSimple settles fraud lawsuit for $189 million
Reuters
Jonathan Stempel
TuSimple reached a $189 million settlement of a lawsuit accusing the self-driving truck technology company of defrauding shareholders by overstating its safety record and concealing three insiders' control of a Chinese trucking rival. A preliminary settlement of the proposed class action was filed on Monday in the federal court in San Diego, where TuSimple is based, and requires a judge's approval.
Artificial Intelligence
Intel board member quit after differences over chipmaker's revival plan
Reuters
Max A. Cherney
he sudden resignation of a high-profile Intel board member came after differences with CEO Pat Gelsinger and other directors over what the director considered the U.S. company’s bloated workforce, risk-averse culture and lagging artificial intelligence strategy, according to three sources familiar with the matter. Lip-Bu Tan, a semiconductor industry veteran, had said he was leaving the board because of a personal decision to “reprioritize various commitments” and that he remained “supportive of the company and its important work,” in a regulatory filing on Thursday.
Hitachi and Singtel deepen AI data center collaboration
Nikkei Asia
Yoshika Kaku
Hitachi and Singapore Telecommunications plan to collaborate on next-generation data centers, the partners said on Monday, as Asian demand grows for the infrastructure needed to run generative artificial intelligence. The Japanese industrial group's power and cooling equipment will be combined with Singtel's cloud technology to provide efficient ways to build and scale up data centers.
Google Meet’s automatic AI note-taking is here
The Verge
Joanna Nelius
Google Meet’s newest AI-powered feature, “take notes for me,” has started rolling out today to Google Workspace customers with the Gemini Enterprise, Gemini Education Premium, or AI Meetings & Messaging add-ons. It’s similar to Meet’s transcription tool, only instead of automatically transcribing what everyone says, it summarizes what everyone talked about. Google first announced this feature at its 2023 Cloud Next conference.
Creators are angered by Meta’s Spark AR shutdown, saying they’ll be out of work with little notice
TechCrunch
Sarah Perez
Creators are unhappy with Meta’s decision on Tuesday to shut down its Spark platform, which allowed third parties to build augmented reality effects. In posts published to the Meta Spark Community on Facebook, creators are posting about their disappointment in Meta’s decision, noting that for some of them, the move will put them out of work — and they only learned this from a Facebook post this morning. Others seem either confused or angry about the plan to close Spark and are demanding to know the reasoning behind the company’s move.
Events & Podcasts
Regulating Big Tech: Is global coordination possible?
Lowy Institute
Australian eSafety Commissioner Julie Inman Grant leads the world’s first government regulatory agency committed to keeping its citizens safer online. While her appointment is domestic, the internet is global. In this episode of Conversations, the Lowy Institute’s Lydia Khalil talks with Inman Grant about what she learned from her previous experience working in the tech industry, how to regulate it, global efforts to coordinate online safety, particularly around AI, and the geopolitics of tech regulation.
Jobs
ASPI Research Internship
ASPI
Have you recently completed your studies (undergraduate or postgraduate) and want to develop your expertise in defence, foreign and national security policy, including in areas such as strategic competition, defence, deterrence, foreign interference, technology, and security? Do you want to inform the public and government on the critical strategic choices facing Australia and learn what it takes to be a professional analyst? If so, apply for the ASPI Research Internship Program! Please note that this is a paid internship program. Applications will close at midnight Friday 27 September 2024.
The Daily Cyber & Tech Digest is brought to you by the Cyber, Technology & Security team at ASPI.