Britain’s National Security Council allowing Huawei to provide some non-core technology for the U.K.'s 5G network is a security risk, blogged American Enterprise Institute visiting fellow Shane Tews Wednesday. She noted the foreign, defense, home and international development secretaries voted no. “Huawei is using its ability to provide cheaper (subsidized) telecommunications equipment to integrate itself into the UK and European countries,” Tews said. Tews said China took advantage of British insecurity after other nations pulled investments because of Brexit. “They hold parties for political leaders and send large donations to charities such as Prince Charles’ ‘Prince’s Trust,’” she said: Prime Minister Theresa May “sent UK Finance Minister Philip Hammond to China this past week to discuss British-China economic and financial cooperation and to search for more contracts for British companies to be part of China’s Belt and Road Initiative.” The company didn’t comment.
Sixty-five percent of consumers canvassed in seven countries worry how connected devices collect data, reported the Internet Society and Consumers International Wednesday. Fifty-five percent of people in the U.S., Canada, Japan, Australia, France and the U.K. don’t trust their connected devices to protect their privacy, and 53 percent don’t trust connected devices to handle information responsibly. Nearly 70 percent said they own connected devices, such as smart meters, fitness monitors, connected toys, home assistants or gaming consoles. Testing by multiple consumer organizations found various products are rushed to market “with little consideration for basic security and privacy protections,” said ISOC, while 77 percent of consumers said privacy and security are important considerations in their buying decisions. Twenty-eight percent of consumers that don’t own a connected device haven’t bought one because of such concerns: “consumers see this broadly as much of a barrier as cost,” said the group. It underscores the need for IoT manufacturers to build devices with security and privacy in mind, said ISOC CEO Andrew Sullivan. Eighty-eight percent believe regulators should ensure IoT privacy and security standards, 81 percent chose manufacturers, 80 percent assigned retailers; and 60 percent laid the responsibility for security and privacy with consumers.
Companies are now required to use an international standard for “testing the effectiveness” of device data encryption, the National Institute of Standards and Technology said Tuesday. NIST updated its federal information processing standard, recognizing international standard ISO-19790. The international standard should “streamline” the process for bringing devices to market “because it reduces redundancy for companies trying to sell products internationally,” the agency said. It wanted to minimize the timeline because there’s “a limited time window before a product becomes obsolete,” NIST computer scientist Mike Cooper said.
The U.S.-Mexico-Canada Agreement on free trade “would strengthen U.S. technological and trade leadership, and advance U.S. firms’ ability to grow platforms and services that enable engagement with the Internet and the digital economy,” wrote CTA, the Information Technology Industry Council, Internet Association and nine other tech groups Sunday to House Ways and Means and Senate Finance Committee leadership, urging USMCA approval. “As Congress considers the many important provisions in the USMCA, we urge lawmakers to take into account the significance of the digital trade rules on the U.S. economy and vote to adopt,” they said. “Passing the USMCA quickly is a critical opportunity to shape global trade rules.” When the North American Free Trade Agreement was implemented 25 years ago, “there were no digital provisions,” they said. “Today, the U.S. tech industry is facing a number of challenges from foreign governments seeking to displace U.S. technology leadership. American companies are especially under threat from discriminatory policies, market-distorting industrial policies, and inadequate intellectual property protection and enforcement in China.”
Samsung was the sole top-four smartphone maker to lose market share in India in Q1, as Vivo’s share jumped 108 percent on shipments of 4.5 million, reported Canalys Friday. Vivo’s stake grew to 15 percent behind Samsung at 24.4 percent (down 1.8 percent) and leader Xiaomi at 31.4 percent (up 0.9 percent). Analyst Rushabh Doshi attributed Vivo’s growth to “expensive bets” on marketing rights for cricket: It paid six times the previous amount to retain title sponsorship of the Indian Premier League, touted as the world’s richest league. The company also hired a popular Bollywood actor as brand ambassador, he said.
Apple said it’s recalling AC wall plug adapters designed for use in Hong Kong, Singapore and the U.K. The three-prong wall plug adapters could break and create a shock risk if exposed metal parts are touched, said the company Thursday. The affected adapters shipped with Mac and certain iOS devices between 2003 and 2010 and were included in the company’s World Travel Adapter Kit. Apple is aware of six incidents worldwide, it said. Customers who bought the adapters should stop using them and visit the Apple website for product exchange details. Customers can go to an authorized Apple service provider, make an appointment at an Apple retail store or contact Apple Support online. The recall doesn't affect Apple USB power adapters.
Qualcomm Technologies said it's providing technology for China Unicom’s 5G launch in collaboration with device makers nubia, OnePlus, Oppo, Vivo, Xiaomi and ZTE. The companies are scheduled to “showcase readiness for the rollout of 5G devices and networks in China via live 5G demonstrations” at the China Unicom Partner Conference this week in Shanghai, the Qualcomm subsidiary said. “In a span of few weeks, we have witnessed 5G launches in the U.S., South Korea, announcement of an imminent deployment in Europe -- and we are now observing the dawn of 5G in China.”
The U.S.-Mexico-Canada Agreement (USMCA) on trade “is likely to have a significant, positive impact on the many U.S. industries that rely on cross-border data flows and digitally enabled trade,” said an International Trade Commission report to Congress Thursday. Tech groups hope this hastens USMCA congressional approval. The U.S. telecom industry would gain increased access to “networks and interconnection provisions” if USMCA became law, said the report. The agreement’s “digital trade-facilitating provisions” and “explicit data flow protections” would also boost e-commerce, it said. U.S. e-commerce firms are likely to benefit from protection against data flow restrictions and forced localization, said ITC. “Up to now, firms have largely been able to transfer data freely between the countries,” it said. “However, no current policies protect this free flow of data from future policies that might restrict it. The commitments in USMCA address this regulatory uncertainty by providing assurance to firms that current conditions will be maintained.” Updating the North American Free Trade Agreement “was much needed and the USMCA is a welcomed step forward in modernizing trade among strong U.S. trading partners and enabling digital trade,” said Computer & Communications Industry Association CEO Ed Black. This is “an important step in the congressional approval process of USMCA,” said Jordan Haas, Internet Association director-trade policy. IA urges "swift action" in Congress to approve it. Other tech groups said similar.
Google will give European Android users new screens that allow them to download search apps and browsers, it said Thursday. The move follows last year's European Commission decision to fine the search engine $5.1 billion for antitrust violations (see 1807180003) for: (1) Forcing manufacturers to pre-install Google Search and Chrome browser apps as a condition for licensing its app store. (2) Paying large device makers and mobile operators to ensure they exclusively pre-install the search app on their smartphones; and (3) Preventing manufacturers that wanted to pre-install Google apps from selling smart mobile devices running on alternative versions of Android not approved by Google. The new screens will be displayed the first time someone opens Google Play after getting an update, blogged Product Management Director Paul Gennai. Two screens will surface, one for search apps and another for browsers, each containing five apps, including any already installed. Those not already installed will be included based on their popularity, shown in random order and vary by country, he said. Users will be able to tap as many apps as they want, and if an additional search app or browser is installed, they'll see a screen with instructions on how to set it up. Users who download a search app will be asked if they want to change Chrome's default search engine. The screens, the result of EC feedback, will roll out "over the next few weeks" and will apply to existing and new Android phones, Gennai said. The screen choice "does nothing to correct the central problem that Google apps will remain the default on all Android devices," said Thomas Vinje, counsel to FairSearch, the primary complainant in the Android case. Few users will move away from Android devices with Google apps and search pre-installed due to convenience and years of abusive product placement that built Google's brands, emailed Initiative for a Competitive Online Marketplace Chairman Michael Weber. "Competition and consumer choice will not be restored before Google and Android are really separated, and all the third party deals tying in Google end."
Apple’s top executives committed “securities fraud” when they made “materially false” statements during the holiday quarter about the robustness of iPhone sales in China, alleged a complaint (in Pacer) Tuesday in U.S. District Court in Oakland, seeking class-action status. CEO Tim Cook and Chief Financial Officer Luca Maestri misled investors by standing by their optimistic iPhone forecasts when they “knew and failed to disclose” that the U.S.-China trade war “had negatively impacted demand for iPhones and Apple’s pricing power in greater China,” alleged the Roseville (California) Employees’ Retirement System, which bought 512 shares of Apple stock Nov. 18 for $175.83 a share. Cook and Maestri also hid from investors the high rate at which Apple customers “were replacing their batteries in older iPhones rather than purchasing new iPhones,” and that it was “negatively impacting” iPhone sales growth, said the complaint. Apple’s decision to stop disclosing iPhone unit sales was designed to “mask” the declining shipments, it said. When Apple “shocked the market” Jan. 2 by finally disclosing it would miss its quarterly revenue target by up to $9 billion on the poor state of iPhone sales, especially in China, it sent the stock tumbling to a 52-week low of $142 the next trading day (see 1901030036), it said. Apple shares closed 2 percent higher Wednesday at $203.13. The “misrepresentations” alleged in the complaint “would tend to induce a reasonable investor to misjudge the value of Apple common stock,” rising to the level of fraud, it said. Apple didn’t comment Wednesday.