Zoom fiscal Q2 revenue grew 54% year over year to $1.02 billion, in its first “billion-dollar-plus” quarter, said Chief Financial Officer Kelly Steckelberg on a Monday call. “As we’ve just lapped our first full quarter year-over-year compare since the start of the pandemic, we have seen customers return to more thoughtful, measured buying patterns.” Revenue and profitability were strong in the quarter ended July 31, but “other metrics have begun to normalize, especially when compared to the unprecedented year-over-year comps,” she said. Zoom expects its online business “will be a headwind in the coming quarters,” she said. The online sector consists “primarily” of small-business people and individual consumers, many of whom are “socializing in person now,” doing fewer Zoom calls, “and that's where we are starting to see some of the challenges,” she said. Zoom had expected the “slowdown” toward the end of the year, but it “just happened a little bit more quickly than we expected,” she said. The stock closed down 17% Tuesday at $289.50.

A judge sought to push along discovery in DOJ and states' antitrust case against Google. At a livestreamed status conference Tuesday, Judge Amit Mehta of U.S. District Court in Washington directed parties to file a joint statement by 2 p.m. Friday on where things stand on parties’ disagreement over the scope of a DOJ deposition notice about market share. Google attorney John Schmidtlein and DOJ Civil Division trial attorney Kenneth Dintzer said they’re meeting Wednesday. Mehta ordered Google to provide “dates certain” by close-of-business Friday for a deposition witness to appear on states’ request about how Google analyzes session logs showing consumers’ journey through the search engine. Mehta also sought updates by then on Google disputes with Yelp and Microsoft about the scope of Google’s document requests. Google complained Microsoft production remains sluggish, in a Tuesday filing. Microsoft objected to using “Bing” and other Google-requested search strings for the document production. Mehta said they don’t “strike me as out of bounds.” He urged Google to look harder at adjusting proximity connectors, which measure how closely words appear in a document, as a possible way to reduce burdens on Microsoft. Parties should reach agreement on technology-assisted review to increase efficiencies, he said. Mehta wants to see Microsoft’s pace increase through September, with a goal of finishing by mid-October. The judge last month set Sept. 30 for Apple to produce about 1.5 million documents DOJ requested (see 2108190041). Mehta said he won’t order Google to turn over to DOJ certain information, including privileged logs and materials produced for past investigations. The jurist said the request was too broad and maybe not entirely relevant. Mehta resolved another disagreement over sharing Google documents about employees’ self-assessments and performance reviews. DOJ asked the court to reject Google’s request to limit distribution of such documents to eight people because it didn’t account for IT professionals, experts and others. Mehta said such tight protections could apply to entire documents, but snippets relevant to deposition could be more widely shared. The next three status hearings are Sept. 28 at 11 a.m., Oct. 29 at 3 p.m. and Nov. 30 at 11 a.m., Mehta said.

An app developer’s May 17 complaint alleging Apple violations of the 1890 Sherman Antitrust Act by monopolizing the distribution of apps through the App Store was assigned Monday to U.S. District Judge Saundra Brown Armstrong in Oakland, the third judge to handle the case after the first two recused themselves. Thomas Reilly said he spent $150,000 developing Konverti, a currency exchange app for the remaining petty cash travelers have when returning home from foreign destinations. Konverti was approved and placed in the App Store in June 2017 “and abruptly removed weeks later without clear cause given,” said Reilly’s complaint. “Apple’s anti-competitive conduct forecloses all potential competitors from entering” the app distribution market, facing “no constraints” on its monopoly power, it said. Apple didn’t comment Monday.

The Copyright Office’s electronic copyright system is mostly back online after a scheduled Aug. 12 “technical upgrade” rendered it unavailable to the public, the CO emailed Friday. “We are experiencing a few technical issues that we are working diligently to resolve.” System users who haven’t logged in during the past 90 days may “experience account reactivation issues,” the CO said.

An Illinois court denied Clearview AI’s motion to dismiss a privacy lawsuit alleging the company’s facial recognition technology violated people’s privacy. The American Civil Liberties Union and others said the company violated the Illinois Biometric Information Privacy Act (BIPA) (see 2005280032). “This case touches on matters of significant public interest,” Illinois Circuit Court in Cook County Judge Pamela McLean Meyerson wrote Friday. The complaint can’t be dismissed on jurisdictional grounds because Clearview targeted Illinois customers, the judge said. She disagreed with Clearview that BIPA doesn’t apply to face-prints. Clearview’s dormant Commerce Clause argument -- that BIPA can’t be applied because it would control the company’s conduct outside Illinois -- “would reward reckless disregard of the law in blind deference to technology,” she said. The judge disagreed that BIPA violates the First Amendment, saying BIPA restrictions on Clearview’s free speech “are no greater than what’s essential to further Illinois’ interest in protecting its citizens’ privacy and security.” The judge said Friday’s decision doesn’t mean the court found Clearview liable for violating BIPA but that the court has jurisdiction and the complaint “states a cause of action for which relief may be granted.” ACLU praised the ruling. “Without regulations like BIPA, companies like Clearview could end privacy as we know it,” said Vera Eidelman, staff attorney-ACLU Speech, Privacy and Technology Project. “This ruling protects our clients’ rights, and sends a strong message to lawmakers across the country that they can protect privacy without running afoul of the First Amendment.” Clearview AI didn't comment by our deadline.

President Joe Biden’s engagement with industry leaders to develop cybersecurity solutions is encouraging, Information Technology Industry Council CEO Jason Oxman said Wednesday, after Biden met with several tech and other CEOs. Among CEOs in attendance were Amazon's Andy Jassy, Apple's Tim Cook, Google's Sundar Pichai, IBM's Arvind Krishna and Microsoft's Satya Nadella. “A strong partnership between the Biden Administration and the world’s leading innovators is key to both keeping U.S. networks secure and resilient, and to expanding the cybersecurity workforce,” said Oxman. CEOs from several of the Bank Policy Institute’s member companies attended the meeting hosted by the White House and the National Security Council, said BPI.

The ransomware threat “continues to rise,” and the average ransom demand in 2021's first half grew 518% from a year earlier, said Palo Alto Networks CEO Nikesh Arora on an earnings call Monday for fiscal Q4 ended July 31. “Ransomware readiness” is one of Palo Alto’s “key engagements,” he said. It did 39 readiness “assessments” in the quarter and has 300 more in the “pipeline,” he said. Quarterly billings of $1.87 billion were up 24% year over year, "well ahead of our guided 22% to 23% growth," said Chief Financial Officer Dipak Golechha. Revenue growth of 28% "was above the high end of our guidance range," he said. "Growth was driven by strong demand across all geographies and major product areas." The stock closed 18.6% higher Tuesday at $441.87.

DOJ and the Departments of Commerce and Homeland Security are among 10 agencies planning to expand facial recognition technology use through fiscal 2023, GAO reported Tuesday. Expansion plans include new face-scanning systems, pilot testing and upgrading existing systems, GAO said. DHS’ Customs and Border Protection is collaborating with the Transportation Security Administration on efforts to “automate the identity verification process at airports for travelers,” GAO said. It surveyed 24 agencies, 18 of which reported using face-scanning technology in fiscal 2020.

The Department of Homeland Security “needs to provide details” about coordination between entities “responsible for cybersecurity and those responsible for enterprise risk management,” the GAO said in recommendations released Monday. GAO cited July 2019 recommendations for DHS to “document a process for coordination between its cybersecurity risk management and enterprise risk management functions.” The department concurred with the recommendation and had estimated completion by July 31, 2020. To consider the recommendation “fully implemented,” DHS will need to follow Monday’s recommendation, GAO said.

The National Institute of Standards and Technology delayed a comment deadline on the development of AI risk management guidance, from Thursday (see 2107290065) to Sept. 15, the agency said Thursday. “The framework is being developed through a consensus-driven, open, transparent, and collaborative process that will include workshops and other opportunities to provide input,” NIST said. An initial virtual worship is set for Oct. 19-21.