Silicon Valley Tech News Roundup – March 27th

With the new law, the EU wants to control the dominance of Big Tech companies – 3/25

EU member states negotiators have agreed on the Digital Markets Act (DMA), a new set of rules that will control the dominance of Big Tech companies. The act is the most significant regulatory move from the EU. With it, the EU wants to prevent what it considers “anti-trust” behavior from Big Tech companies.

Under the new act, some of the proposed measures would include Apple opening its App Store to third-party payment options. iPhone users would be able to uninstall Safari and other applications that users cannot delete at the moment. Google would have to offer alternatives to its search engine options, Chrome, and Google Maps for smartphone users on the Android operating system.

Margrethe Vestager, the EU Commissioner for Competition, said: “What we want is simple: fair markets…in digital… Large gatekeeper platforms have prevented businesses and consumers from the benefit of competitive digital markets.”

The law applies to companies with at least 45 million monthly users, are valued at €75 billion, and have annual sales of €7.5 billion. European Parliament and ministers from all 27 member states now have to vote on the deal.

An ex-Microsoft manager claims Microsoft spent millions on bribes – 3/25

On Friday, former Microsoft manager Yasser Elabd published an essay on whistleblower platform Lioness. Elabd claims Microsoft spent millions on bribes in Africa and Mid-East. Furthermore, once he alerted the company leadership about the illegal practices, Elabd claims Microsoft fired him.

Elabd worked for Microsoft between 1998 and 2018, and he had insight into the so-called “business investment fund”. The purpose of the fund, according to Elabd, was to “cement long-term deals” in Mid-East and Africa. Elabd examined several independent audits and discovered the company would set up large sales for the entities in the region. The discount would be baked in, and the difference between the discounted fee and the full freight cost skimmed. The deal makers then divided it among themselves.

Elabd gave examples of such practices. He claims Qatar’s Ministry of Education paid $5.9 million for seven years for Microsoft Windows and Office licenses. The licenses went unused, and the agency employees did not have access to computers. Another example is a complaint by a Nigerian official who claimed the government paid $5.5 million for licenses for “hardware they did not possess”.

In a statement to the Verge, Becky Lenaburg, deputy general counsel for compliance and ethics and Vice President at Microsoft, said: “We are committed to doing business in a responsible way and always encourage anyone to report anything they see that may violate the law, our policies, or our ethical standards… We believe we’ve previously investigated these allegations, which are many years old, and addressed them. We cooperated with government agencies to resolve any concerns.”

Elabd claims his investigation got him terminated. He also states he brought the allegations to the Department of Justice, which refused to take his case. The Securities and Exchange Commission (SEC) dropped the case this month due to a lack of resources.

US government charged four Russians for cyber attacks – 3/25

United States government charged four Russian government employees for cyberattacks on the energy sector. The individuals have links to the Russian security service, the FSB.

The government charged two separate groups. One group hacked into the system of a petrochemical plant in Saudi Arabia between May and September 2017 and installed malware. The attack resulted in two emergency shutdowns. The same group tried to hack into similar plants in the United States between February and July 2018 but was unsuccessful.

The second group of hackers is connected to the FSB and its Military Unit 71330 (also known as “Center 16”). The indictment alleges the accused targeted companies and organizations in the energy sector between 2012 and 2017. The targets included nuclear power plants, utility and power transmission companies, and oil and gas companies.

Lisa Monaco, US Deputy Attorney General, said in a statement: “Russian state-sponsored hackers pose a serious and persistent threat to critical infrastructure both in the United States and around the world… Although the criminal charges unsealed today reflect past activity, they make crystal clear the urgent ongoing need for American businesses to harden their defenses and remain vigilant.”

Uber receives a new 30-month-license to operate in London – 3/26

In a statement released on Saturday, Uber confirmed it received a new 30-month-license for operating in London.

The spokesperson for Transport for London (TfL) confirmed the news for Reuters: “Uber has been granted a London private hire vehicle operator’s license for a period of two and a half years.”

Transport for London revoked Uber’s license twice. The company first lost its license for London in 2017 and then for the second time in 2019. After a legal appeal, the court restored the license a year later. The company claims it added new safety measures to ensure better safety for its passengers.

In 2021, Uber agreed to a deal with GMB Union, which allows the union to represent 70.000 drivers. UK Supreme Court ruled the company has to treat drivers as workers rather than self-employed. Drivers will receive a minimum wage, benefits, holiday pay, and pensions. Likewise, Uber confirmed they aim to become a fully electric platform by 2025.