Policy – Page 7

Trump has “a little problem” with Apple’s plan to ship iPhones from India

Apple, india, IPhone, Policy, syndication, tariffs, Trump / Kelly Newman / May 15, 2025

Analysts estimate it would cost tens of billions of dollars and take years for Apple to increase iPhone manufacturing in the US, where it at present makes only a very limited number of products.

US Commerce Secretary Howard Lutnick said last month that Cook had told him the US would need “robotic arms” to replicate the “scale and precision” of iPhone manufacturing in China.

“He’s going to build it here,” Lutnick told CNBC. “And Americans are going to be the technicians who drive those factories. They’re not going to be the ones screwing it in.”

Lutnick added that his previous comments that an “army of millions and millions of human beings screwing in little screws to make iPhones—that kind of thing is going to come to America” had been taken out of context.

“Americans are going to work in factories just like this on great, high-paying jobs,” he added.

For Narendra Modi’s government, the shift by some Apple suppliers into India is the highest-profile success of a drive to boost local manufacturing and attract companies seeking to diversify away from China.

Mobile phones are now one of India’s top exports, with the country selling more than $7 billion worth of them to the US in the 2024-25 financial year, up from $4.7 billion the previous year. The majority of these were iPhones, which Apple’s suppliers Foxconn and Tata Electronics make at plants in southern India’s Tamil Nadu and Karnataka states.

Modi and Trump are ideologically aligned and personally friendly, but India’s high tariffs are a point of friction and Washington has threatened to hit it with a 26 percent tariff.

India and the US—its biggest trading partner—are negotiating a bilateral trade agreement, the first tranche of which they say they will be agreed by autumn.

“India’s one of the highest-tariff nations in the world, it’s very hard to sell into India,” Trump also said in Qatar on Thursday. “They’ve offered us a deal where basically they’re willing to literally charge us no tariff… they’re the highest and now they’re saying no tariff.”

Trump has “a little problem” with Apple’s plan to ship iPhones from India Read More »

Meta is making users who opted out of AI training opt out again, watchdog says

AI, AI training, Artificial Intelligence, facebook, Instagram, Meta, Online Privacy, Policy / Kelly Newman / May 14, 2025

Noyb has requested a response from Meta by May 21, but it seems unlikely that Meta will quickly cave in this fight.

In a blog post, Meta said that AI training on EU users was critical to building AI tools for Europeans that are informed by “everything from dialects and colloquialisms, to hyper-local knowledge and the distinct ways different countries use humor and sarcasm on our products.”

Meta argued that its AI training efforts in the EU are far more transparent than efforts from competitors Google and OpenAI, which, Meta noted, “have already used data from European users to train their AI models,” supposedly without taking the steps Meta has to inform users.

Also echoing a common refrain in the AI industry, another Meta blog warned that efforts to further delay Meta’s AI training in the EU could lead to “major setbacks,” pushing the EU behind rivals in the AI race.

“Without a reform and simplification of the European regulatory system, Europe threatens to fall further and further behind in the global AI race and lose ground compared to the USA and China,” Meta warned.

Noyb discredits this argument and noted that it can pursue injunctions in various jurisdictions to block Meta’s plan. The group said it’s currently evaluating options to seek injunctive relief and potentially even pursue a class action worth possibly “billions in damages” to ensure that 400 million monthly active EU users’ data rights are shielded from Meta’s perceived grab.

A Meta spokesperson reiterated to Ars that the company’s plan “follows extensive and ongoing engagement with the Irish Data Protection Commission,” while reiterating Meta’s statements in blogs that its AI training approach “reflects consensus among” EU Data Protection Authorities (DPAs).

But while Meta claims that EU regulators have greenlit its AI training plans, Noyb argues that national DPAs have “largely stayed silent on the legality of AI training without consent,” and Meta seems to have “simply moved ahead anyways.”

“This fight is essentially about whether to ask people for consent or simply take their data without it,” Schrems said, adding, “Meta’s absurd claims that stealing everyone’s personal data is necessary for AI training is laughable. Other AI providers do not use social network data—and generate even better models than Meta.”

Meta is making users who opted out of AI training opt out again, watchdog says Read More »

GOP sneaks decade-long AI regulation ban into spending bill

AI, AI regulation, Biz & IT, Donald Trump, GOP, house republicans, machine learning, Policy, republicans, trump administration, US government, White House / 9u50fv / May 13, 2025

The reconciliation bill primarily focuses on cuts to Medicaid access and increased health care fees for millions of Americans. The AI provision appears as an addition to these broader health care changes, potentially limiting debate on the technology’s policy implications.

The move is already inspiring backlash. On Monday, tech safety groups and at least one Democrat criticized the proposal, reports The Hill. Rep. Jan Schakowsky (D-Ill.), the ranking member on the Commerce, Manufacturing and Trade Subcommittee, called the proposal a “giant gift to Big Tech,” while nonprofit groups like the Tech Oversight Project and Consumer Reports warned it would leave consumers unprotected from AI harms like deepfakes and bias.

Big Tech’s White House connections

President Trump has already reversed several Biden-era executive orders on AI safety and risk mitigation. The push to prevent state-level AI regulation represents an escalation in the administration’s industry-friendly approach to AI policy.

Perhaps it’s no surprise, as the AI industry has cultivated close ties with the Trump administration since before the president took office. For example, Tesla CEO Elon Musk serves in the Department of Government Efficiency (DOGE), while entrepreneur David Sacks acts as “AI czar,” and venture capitalist Marc Andreessen reportedly advises the administration. OpenAI CEO Sam Altman appeared with Trump in an AI datacenter development plan announcement in January.

By limiting states’ authority over AI regulation, the provision could prevent state governments from using federal funds to develop AI oversight programs or support initiatives that diverge from the administration’s deregulatory stance. This restriction would extend beyond enforcement to potentially affect how states design and fund their own AI governance frameworks.

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US and China pause tariffs for 90 days as Trump claims “historic trade win”

Policy, trade war / Shannon Garcia / May 12, 2025

The deal announced today “did not address what would happen to low-value ‘de minimis’ ecommerce packages shipped from China to the US,” Reuters wrote. The US imposed 120 percent tariffs on those packages.

Treasury Secretary Scott Bessent said today that both governments want to avoid a severing of their economies but that the US still plans to impose tariffs on specific items that the White House wants to be produced in the US. Bessent said that “neither side wants a generalized decoupling. The US is going to do a strategic decoupling in terms of the items that we discovered during COVID were of national security interests, whether it’s semiconductors, medicine, steel, so we still have generalized tariffs on some of those, but both sides agree we do not want a generalized decoupling.”

The S&P 500 index was up about 2.6 percent today as of this writing, while the tech-focused NASDAQ Composite index had risen about 3.5 percent. Neither index has recovered to its record high after months of turmoil caused by Trump’s tariffs.

Reuters quoted Zhiwei Zhang, chief economist at Pinpoint Asset Management in Hong Kong, as saying that the 90-day deal was better than he expected. “I thought tariffs would be cut to somewhere around 50 percent,” Zhang said. “Obviously, this is very positive news for economies in both countries and for the global economy and makes investors much less concerned about the damage to global supply chains in the short term.”

In April, Trump raised tariffs on China while pausing tariff hikes on other countries for 90 days. Trump struck a trade deal with the UK last week, and talks with other countries are continuing.

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Industry groups are not happy about the imminent demise of Energy Star

Energy Star, EPA, Policy, syndication / Mike M. / May 10, 2025

One of Bush’s “points of light”

Energy Star was first established under President George H.W. Bush’s administration in 1992, the year of the Earth Summit in Rio, where nations around the world first joined in a framework convention to address climate change.

That international treaty, at Bush’s urging, relied on voluntary action rather than targets and timetables for reducing greenhouse gas emissions. Back at home, the Energy Star program, too, was a way to encourage, but not force, energy savings.

“It was kind of one of his thousand points of light,” Nadel said. “He didn’t want to do serious things about climate change, but a voluntary program to provide information and let consumers decide fit very nicely into his mindset.”

At first focused just on personal computers, monitors and printers, Energy Star expanded over the years to cover more than 50 home appliances, from heating and air conditioning systems to refrigerators, washers and dryers and lighting. Beginning in 1995, Energy Star certification expanded to include homes and commercial buildings.

A Republican-controlled Congress wrote Energy Star into law in a sprawling 2005 energy bill that President George W. Bush signed. It is not clear that the Trump administration can eliminate the Energy Star program, which is administered by both EPA and the Department of Energy, without a new act of Congress.

In a report to mark the 30th anniversary of Energy Star in 2022, the Biden administration estimated the program had achieved 4 billion metric tons of greenhouse gas reductions by helping consumers make energy-efficient choices. Nadel said the impact in the marketplace is visible, as companies increase the number of product choices that meet Energy Star standards whenever a new standard is adopted by EPA through a public notice and comment process.

The nonprofit Alliance to Save Energy has estimated that the Energy Star program costs the government about $32 million per year, while saving families more than $40 billion in annual energy costs.

Eliminating the program, Nadel said, “is million-wise and billion foolish.”

“It will not serve the American people”

Word of Energy Star’s potential demise began to circulate weeks ago. On March 20, a wide array of manufacturers and industry associations signed on to a letter to Zeldin, urging him to maintain the Energy Star program.

Industry groups are not happy about the imminent demise of Energy Star Read More »

Trump kills broadband grants, calls digital equity program “racist and illegal”

digital equity act, Policy, Trump / Shannon Garcia / May 10, 2025

President Donald Trump said he is killing a broadband grant program that was authorized by Congress, claiming that the Digital Equity Act of 2021 is racist and unconstitutional.

“I have spoken with my wonderful Secretary of Commerce, Howard Lutnick, and we agree that the Biden/Harris so-called ‘Digital Equity Act’ is totally UNCONSTITUTIONAL. No more woke handouts based on race! The Digital Equity Program is a RACIST and ILLEGAL $2.5 BILLION DOLLAR giveaway. I am ending this IMMEDIATELY, and saving Taxpayers BILLIONS OF DOLLARS!” Trump wrote in a Truth Social post yesterday.

The Digital Equity Act provided $2.75 billion for three grant programs. As a National Telecommunications and Information Administration webpage says, the grants “aim to ensure that all people and communities have the skills, technology, and capacity needed to reap the full benefits of our digital economy.”

The digital equity law, approved as part of the Infrastructure Investment and Jobs Act, allows for grants benefitting a wide range of Americans who lack reliable and affordable Internet access. The law covers low-income households, people who are at least 60 years old, people incarcerated in state or local prisons and jails, veterans, people with disabilities, people with language barriers, people who live in rural areas, and people who are members of a racial or ethnic minority group.

“President Trump’s move to end the Digital Equity Act is blatantly unconstitutional,” consumer advocacy group Public Knowledge said. While Trump is “labeling efforts to address racial inequity as discriminatory themselves,” his action “will also severely impact his voter base of white Americans who live in rural areas in red states, including veterans and the elderly,” the group said.

Some states already received funding last year. If Trump cancels grants that haven’t yet been distributed, it will likely result in lawsuits against the administration.

The law allows funding to be used in a variety of ways, including “to make available equipment, instrumentation, networking capability, hardware and software, or digital network technology for broadband services to covered populations at low or no cost,” and “to construct, upgrade, expend, or operate new or existing public access computing centers for covered populations through community anchor institutions.” It can also cover training programs for using technology and workforce development programs.

Trump kills broadband grants, calls digital equity program “racist and illegal” Read More »

DOGE software engineer’s computer infected by info-stealing malware

Biz & IT, CISA, credentials, cybersecurity and infrastructure security agency, department of government efficiency, kyle schutt, passwords, Policy, Security / DJ Henderson / May 10, 2025

Login credentials belonging to an employee at both the Cybersecurity and Infrastructure Security Agency and the Department of Government Efficiency have appeared in multiple public leaks from info-stealer malware, a strong indication that devices belonging to him have been hacked in recent years.

Kyle Schutt is a 30-something-year-old software engineer who, according to Dropsite News, gained access in February to a “core financial management system” belonging to the Federal Emergency Management Agency. As an employee of DOGE, Schutt accessed FEMA’s proprietary software for managing both disaster and non-disaster funding grants. Under his role at CISA, he likely is privy to sensitive information regarding the security of civilian federal government networks and critical infrastructure throughout the US.

A steady stream of published credentials

According to journalist Micah Lee, user names and passwords for logging in to various accounts belonging to Schutt have been published at least four times since 2023 in logs from stealer malware. Stealer malware typically infects devices through trojanized apps, phishing, or software exploits. Besides pilfering login credentials, stealers can also log all keystrokes and capture or record screen output. The data is then sent to the attacker and, occasionally after that, can make its way into public credential dumps.

“I have no way of knowing exactly when Schutt’s computer was hacked, or how many times,” Lee wrote. “I don’t know nearly enough about the origins of these stealer log datasets. He might have gotten hacked years ago and the stealer log datasets were just published recently. But he also might have gotten hacked within the last few months.”

Lee went on to say that credentials belonging to a Gmail account known to belong to Schutt have appeared in 51 data breaches and five pastes tracked by breach notification service Have I Been Pwned. Among the breaches that supplied the credentials is one from 2013 that pilfered password data for 3 million Adobe account holders, one in a 2016 breach that stole credentials for 164 million LinkedIn users, a 2020 breach affecting 167 million users of Gravatar, and a breach last year of the conservative news site The Post Millennial.

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Celsius founder Alex Mashinsky sentenced to 12 years for “unbank yourself” scam

Alex Mashinsky, Celsius Network, Cryptocurrency, cryptocurrency fraud, Policy, securities fraud / DJ Henderson / May 9, 2025

As the case dragged on, Mashinsky and his family appeared unremorseful, victims said, even while facing threats of violence and significant public shaming. Some victims accused Mashinsky of lying to their faces and pushing them to continue depositing funds even when the end was near and he knew that the money would be lost.

In victim statements sent to US District Judge John Koeltl, customers accused Mashinsky of weaponizing his family-man brand to scam many naïve investors out of their life savings. Some suicides were reported, victims said, and elderly victims were among the most vulnerable, with many becoming homeless after retirement funds were drained. Among the victims was Rien Vanmarcke, who confessed to feeling haunted by guilt after convincing his aging mother to invest in Celsius and losing the majority of their savings.

And “Mashinsky’s cruelty didn’t end with the collapse,” Vanmarcke wrote. “His family mocked victims with ‘unbankrupt yourself’ merchandise funded by stolen savings, while flaunting luxury lifestyles online.”

Other victims also described feeling palpable shame, even if they felt their road to recovery wasn’t as bad as others. One victim, Daniel Frishberg, was still in high school when he lost 70 percent of his crypto to Mashinsky’s false promises.

“I am lucky that I am young and have plenty of time to make back the money I lost due to naively trusting Mr. Mashinsky—many are not as fortunate,” Frishberg wrote.

Celsius founder Alex Mashinsky sentenced to 12 years for “unbank yourself” scam Read More »

Report: DOGE supercharges mass-layoff software, renames it to sound less dystopian

department of government efficiency, doge, elon musk, layoffs, Policy, trump administration / Beth Washington / May 8, 2025

“It is not clear how AutoRIF has been modified or whether AI is involved in the RIF mandate (through AutoRIF or independently),” Kunkler wrote. “However, fears of AI-driven mass-firings of federal workers are not unfounded. Elon Musk and the Trump Administration have made no secret of their affection for the dodgy technology and their intentions to use it to make budget cuts. And, in fact, they have already tried adding AI to workforce decisions.”

Automating layoffs can perpetuate bias, increase worker surveillance, and erode transparency to the point where workers don’t know why they were let go, Kunkler said. For government employees, such imperfect systems risk triggering confusion over worker rights or obscuring illegal firings.

“There is often no insight into how the tool works, what data it is being fed, or how it is weighing different data in its analysis,” Kunkler said. “The logic behind a given decision is not accessible to the worker and, in the government context, it is near impossible to know how or whether the tool is adhering to the statutory and regulatory requirements a federal employment tool would need to follow.”

The situation gets even starker when you imagine mistakes on a mass scale. Don Moynihan, a public policy professor at the University of Michigan, told Reuters that “if you automate bad assumptions into a process, then the scale of the error becomes far greater than an individual could undertake.”

“It won’t necessarily help them to make better decisions, and it won’t make those decisions more popular,” Moynihan said.

The only way to shield workers from potentially illegal firings, Kunkler suggested, is to support unions defending worker rights while pushing lawmakers to intervene. Calling on Congress to ban the use of shadowy tools relying on unknown data points to gut federal agencies “without requiring rigorous external testing and auditing, robust notices and disclosure, and human decision review,” Kunkler said rolling out DOGE’s new tool without more transparency should be widely condemned as unacceptable.

“We must protect federal workers from these harmful tools,” Kunkler said, adding, “If the government cannot or will not effectively mitigate the risks of using automated decision-making technology, it should not use it at all.”

Report: DOGE supercharges mass-layoff software, renames it to sound less dystopian Read More »

Apple: “Hundreds of millions to billions” lost without App Store commissions

App Store, appeal, Apple, epic, fortnite, in-app payments, Policy / Shannon Garcia / May 8, 2025

Many horses, including Spotify and Amazon’s Kindle Store, have already left the barn. But Apple is moving quickly to shut the external payments door opened by last week’s ruling that the company willfully failed to comply with court orders regarding anticompetitive behavior.

In an emergency motion filing late Wednesday (PDF), Apple described US District Judge Yvonne Gonzalez Rogers’ “extraordinary Order” as including an injunction that “permanently precludes Apple from exercising control over core aspects of its business operations, including charging for use of its property and protecting the integrity of its platform and in-app purchase mechanism.” A certificate (PDF) accompanying the emergency filing states that the order “fundamentally changes Apple’s business and creates destabilizing effects” for App Store customers.

The restrictions, “which will cost Apple substantial sums annually,” are not based on the company’s conduct, Apple claims, but “were imposed to punish Apple for purported non-compliance” with the 2021 injunction. In her ruling (PDF), Gonzalez Rogers described Apple as conducting an “obvious cover-up” and said that Apple “at every turn chose the most anticompetitive option.”

Apple had already altered its App Review Guidelines to comply with Gonzalez Rogers’ ruling. Under the updated rules, developers have been able to include buttons, links, and calls to action to consider purchasing subscriptions and in-app payments through external sites and vendors. Apps like Spotify and Amazon’s Kindle have already placed buttons and had their updates approved by Apple, and vendors like Stripe have been providing guidance on taking payments without Apple’s commission. Before this, under a 2021 injunction at issue in recent filings, Apple charged a 12 to 27 percent commission on external payments, with significant filing and auditing requirements.

Apple: “Hundreds of millions to billions” lost without App Store commissions Read More »

Trump admin to roll back Biden’s AI chip restrictions

AI, AI regulation, Biden adminstration, Biz & IT, Donald Trump, GPUs, Joe Biden, machine learning, NVIDIA, Policy, trump administration / Kelly Newman / May 8, 2025

The changing face of chip export controls

The Biden-era chip restriction framework, which we covered in January, established a three-tiered system for regulating AI chip exports. The first tier included 17 countries, plus Taiwan, that could receive unlimited advanced chips. A second tier of roughly 120 countries faced caps on the number of chips they could import. The administration entirely blocked the third tier, which included China, Russia, Iran, and North Korea, from accessing the chips.

Commerce Department officials now say they “didn’t like the tiered system” and considered it “unenforceable,” according to Reuters. While no timeline exists for the new rule, the spokeswoman indicated that officials are still debating the best approach to replace it. The Biden rule was set to take effect on May 15.

Reports suggest the Trump administration might discard the tiered approach in favor of a global licensing system with government-to-government agreements. This could involve direct negotiations with nations like the United Arab Emirates or Saudi Arabia rather than applying broad regional restrictions. However, the Commerce Department spokeswoman indicated that debate about the new approach is still underway, and no timetable has been established for the final rule.

Trump admin to roll back Biden’s AI chip restrictions Read More »

Elon Musk is responsible for “killing the world’s poorest children,” says Bill Gates

Policy / 9u50fv / May 8, 2025

Billionaire philanthropist Bill Gates ratcheted up his feud with Elon Musk, accusing the world’s richest man of “killing the world’s poorest children” through what he said were misguided cuts to US development assistance.

Gates, who is announcing a plan to accelerate his philanthropic giving over the next 20 years and close down the Gates Foundation altogether in 2045, said in an interview that the Tesla chief had acted through ignorance.

In February, Musk’s so-called Department of Government Efficiency (Doge) in effect shut down the US Agency for International Development, the main conduit for US aid, saying it was “time for it to die.”

The co-founder of Microsoft, and once the world’s richest man himself, said the abruptness of the cuts had left life-saving food and medicines expiring in warehouses and could cause the resurgence of diseases such as measles, HIV, and polio.

“The picture of the world’s richest man killing the world’s poorest children is not a pretty one,” he told the Financial Times.

Gates said Musk had canceled grants to a hospital in Gaza Province, Mozambique, that prevents women transmitting HIV to their babies, in the mistaken belief that the US was supplying condoms to Hamas in Gaza in the Middle East. “I’d love for him to go in and meet the children that have now been infected with HIV because he cut that money,” he said.

Gates, 69, on Thursday announced plans to spend virtually his entire fortune over the next 20 years, during which time he estimates his foundation will spend more than $200 billion on global health, development, and education against $100 billion over the previous 25 years. The Gates Foundation will close its doors in 2045, decades earlier than previously envisaged.

Elon Musk is responsible for “killing the world’s poorest children,” says Bill Gates Read More »