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US Claims Google Pays More Than $10 Billion A Year To Maintain Its Search Dominance

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WASHINGTON — The U.S. Google has used its dominance in the internet search industry to keep competitors out and stifle innovation, the Department of Justice alleged Tuesday at the start of the largest antitrust trial in the United States in a quarter-century.

“This is a case about the future of the internet and whether Google’s search engine will ever face meaningful competition,” said Kenneth Dintzer, the main counsel for the Justice Department.

Over the next ten weeks, federal and state attorneys general will aim to show that Google rigged the market in its favor by making its search engine the default choice in various places and devices. A verdict from U.S. District Judge Amit Mehta is likely early next year. If he finds that theyviolated the law, a new trial will be held to determine what steps should be taken to rein in the Mountain View, California-based business.

Top officials from Google, Alphabet Inc. and other strong technology companies are slated to testify. Alphabet CEO Sundar Pichai, who succeeded co-founder Larry Page four years ago, is likely to be among them. Court filings also indicate that Eddy Cue, a senior Apple official, may be summoned to testify.

During the Trump administration, the Justice Department launched an antitrust action against Google, alleging that the firm leveraged its dominance in internet search to acquire an unfair advantage over competitors. Government lawyers claim that Google protects its brand through payola, paying billions of dollars per year to be the default search engine on the iPhone and web browsers such as Apple’s Safari and Mozilla’s Firefox.

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“Google pays more than $10 billion per year for these privileged positions,” claimed Dintzer.

“Google’s contracts ensure that rivals cannot match the search quality ad monetization, especially on phones,” Dintzer explained. “This wheel has been turning for more than 12 years thanks to this feedback loop.” It always works in Google’s favor.”

According to Dintzer, the more queries Google performs, the more data it accumulates – data that can be used to optimize future searches and give them an even stronger advantage over its competitors. “User data is the oxygen for a search engine,” he explained. As a result of its market domination, “Google search and ad products are better than its rivals can hope to be.” That is why, he claims, the company spends so much for its search engine to be the default option on Apple and other companies’ products.

Dintzer said that Google “began weaponizing defaults” more than 15 years ago, citing an internal Google paper that referred to their settings as an “Achilles Heel” for competing search engines such as Yahoo and MSN.

He also claimed that Google coerced Apple into making its search engine the default on their iPhones in exchange for revenue-sharing payments. “This is not a negotiation,” Dintzer declared. “This is what Google is saying: Take it or leave it.” According to the lawsuit, Apple’s anticompetitive activities stopped it from establishing its search engine.

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The U.S. Google has used its dominance in the internet search industry to keep competitors out and stifle innovation.

Dintzer claimed that they erased documents to keep them out of court proceedings and attempted to conceal others under attorney-client privilege. Dintzer stated, “They destroyed documents for years.” “They turned off history, your honor, so they could rewrite it here.”

Google replies that, although controlling over 90% of the internet search market, it confronts a wide range of competition. Google claims its competitors span from search engines like Microsoft’s Bing to websites like Amazon and Yelp, where customers may post inquiries about what to buy or where to go. “There are lots of ways users access the web other than default search engines, and people use them all the time,” said attorney John Schmidtlein, a partner at Williams & Connolly who represents the company.

According to Google, continuous improvements to its search engine explain why people almost reflexively return to it, a habit that has long rendered “Googling” synonymous with searching things on the internet. Schmidtlein, for example, stated that the changes made their search superior to main rival Bing. “At every critical juncture,” he explained, “they were beaten in the market.”

The trial starts just a few weeks after the 25th anniversary of the company’s first investment — a $100,000 cheque issued by Sun Microsystems co-founder Andy Bechtolsheim that allowed Page and Sergey Brin to set up shop in a Silicon Valley garage.

Today, Alphabet, their corporate parent, is worth $1.7 trillion and employs 182,000 people. Most of its revenue comes from $224 billion in annual ad revenues flowing through a digital services network centered on a search engine that processes billions of daily requests.

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The U.S. Google has used its dominance in the internet search industry to keep competitors out and stifle innovation.

The Justice Department’s antitrust complaint is similar to the one it brought against Microsoft in 1998. Regulators then accused Microsoft of compelling computer manufacturers who used its dominant Windows operating system to include Microsoft’s Internet Explorer — just as the internet became more popular. That bundling practice killed Netscape, the once-popular browser.

Several members of the Justice Department’s Google case team, including Dintzer, worked on the Microsoft probe as well.

Google could be hampered if the trial results in concessions that limit its influence. One possibility is that they will be obliged to stop paying Apple and other companies to be the default search engine on smartphones and desktops.

Alternatively, the legal struggle may cause the company to lose focus. That’s what happened after Microsoft’s antitrust battle with the Justice Department. Distracted by its distractions, the software behemoth struggled to adjust to the impact of internet searches and cell phones. Google used that diversion to propel itself from a startup to a formidable superpower.

SOURCE – (AP)

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Sony Is Once Again Facing A Potential Security Breach, This Time By A Ransomware Group

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Once more, Sony faces the possibility of a security breach, this time from a ransomware group alleging to have compromised PlayStation systems. On Sunday, the group LAPSUS$ proclaimed the alleged hack on their dark website. This could have significant implications for PlayStation users, although details remain scant.

According to the ransomware group, they have compromised all Sony systems and seized valuable information, including game source code and firmware. As “proof,” they have provided screen captures of what appears to be an internal login page, PowerPoint presentation, and file directory.

However, according to cybersecurity specialists, this information could be more convincing. Cyber Security Connect stated, “None of it appears to be particularly compelling information.” They suspect that LAPSUS$ may have exaggerated the scope of their breach.

Based on the limited data available, it is extremely difficult to determine the scope or integrity of the hackers’ claims. PlayStation’s online services do not appear to have been impacted so far, with no word if user data is at risk.

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Sony Is Once Again Facing A Potential Security Breach, This Time By A Ransomware Group.

Not for the first time have Sony’s systems been targeted. In 2011, the PlayStation Network was compromised, exposing the personal information of 77 million users. Sony ultimately locked down PSN for nearly a month to improve security.

In 2014, North Korea launched a devastating cyberattack against Sony Pictures in retaliation for the film The Interview. The release of terabytes of sensitive data, including scripts for upcoming films and employees’ personal and medical information. Time will tell if Sony can once again recover its systems from a significant cyberattack. However, PlayStation users may need to prepare for potential consequences.

If LAPSUS$’s claims are accurate, this breach could have comparable repercussions. There is a possibility that sensitive source code and intellectual property could be compromised. There is also the possibility of significant PlayStation Network service disruptions. As with any hack, we recommend that users alter any passwords used on any PlayStation service to avoid problems with other online accounts.

CGMagazine has sought out Sony for comment, but at the time of publication, the company has neither confirmed nor denied the breach’s scope; we will update the article if the situation changes.

SOURCE – (cgmagonline)

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Amazon Is Investing Up To $4 Billion In AI Startup Anthropic In Growing Tech Battle

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Amazon is investing up to $4 billion in artificial intelligence startup Anthropic and acquiring a minority stake in the company, the two companies announced on Monday.

The investment underscores how Big Tech companies are pouring money into AI as they race to capitalize on the opportunities that the latest iteration of the technology is set to fuel.

According to Amazon and Anthropic, the agreement is part of a larger collaboration to develop so-called foundation models, which are the basis for the generative AI systems that have garnered worldwide attention.

Foundation models, also known as large language models, are trained on vast online information pools, such as blog posts, digital books, scientific articles, and pop songs, to generate text, images, and videos that resemble human labor.

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Amazon Is Investing Up To $4 Billion In AI Startup Anthropic In Growing Tech Battle.

Under the terms of the agreement, Anthropic will use Amazon as its primary cloud computing service and train and deploy its generative AI systems using Amazon’s custom processors.

Anthropic, based in San Francisco, was founded by former employees of OpenAI, the creator of the ChatGPT AI chatbot that made a global impact with its ability to generate responses that resembled human responses.

Anthropic has released Claude, its own ChatGPT competitor. The most recent version, available in the United States and the United Kingdom, can “sophisticated dialogue, creative content generation, complex reasoning, and detailed instruction,” according to the company.

Amazon is racing to catch up to competitors such as Microsoft, which invested $1 billion in OpenAI in 2019 and another multibillion-dollar investment at the beginning of the year.

Amazon has been releasing new services to keep up with the AI arms race, such as an update to its popular assistant Alexa that enables users to have more human-like conversations and AI-generated summaries of consumer product reviews.

SOURCE – (AP)

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Photo Giant Getty Took A Leading AI Image-Maker To Court. Now It’s Also Embracing The Technology

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Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.

But suppose you’re searching for a wide-angle image of a “hot pink plastic saguaro cactus with large, protruding arms, surrounded by sand, in a landscape at dawn.” According to Getty Images, you can now request that its AI-powered image generator create one on the spot.

The Seattle-based company employs a two-pronged strategy to address the threat and opportunity of artificial intelligence to its business. First, it filed a lawsuit against a prominent provider of AI-generated images earlier this year for what it claimed was a “stunning” violation of Getty’s image collection.

But on Monday, it joined the small but expanding market of AI image creators with a new service that enables its customers to create novel images trained on Getty’s vast library of human-made photographs.

According to Getty Images CEO Craig Peters, the distinction is that this new service is “commercially viable” for business clients and “wasn’t trained on the open internet with stolen imagery.”

He compared this to some pioneers in AI-generated imagery, such as OpenAI’s DALL-E, Midjourney, and Stability AI, the creator of Stable Diffusion.

“We have issues with those services, how they were built, what they were built upon, how they respect creator rights or not, and how they actually feed into deepfakes and other things like that,” Peters said in an interview.

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Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.

In a lawsuit filed early this year in a Delaware federal court, Getty alleged that London-based Stability AI copied without permission more than 12 million photographs from its collection, along with captions and metadata, “as part of its efforts to build a competing business.”

Getty asserted in its lawsuit that it is entitled to damages of up to $150,000 per infringed work, which could reach $1.8 trillion. Stability seeks dismissal or transfer of the case but has not formally responded to the underlying allegations. Similar to the situation in the United Kingdom, a court conflict is still brewing.

Peters stated that the new service, dubbed Generative AI by Getty Images, resulted from a long-standing partnership with California-based tech company and chipmaker Nvidia, which predated the legal challenges against Stability AI. It is based on Edify, an AI model created by Picasso, a division of Nvidia’s generative AI division.

It promises “full indemnification for commercial use” and is intended to eliminate the intellectual property risks that have made businesses hesitant to use generative AI tools.

Getty contributors will also be compensated for having their images included in the training set, which will be incorporated into their royalty obligations so that the company is “actually sharing the revenue with them over time rather than paying a one-time fee or not paying that,” according to Peters.

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Anyone seeking a gorgeous photograph of a desert landscape will find various options in the Getty Images stock photography collection.

Getty will compete with rivals such as Shutterstock, which has partnered with OpenAI’s DALL-E, and software company Adobe, which has developed its own AI image-generator Firefly, for brands seeking marketing materials and other creative imagery. It is unlikely to appeal to those seeking photojournalism or editorial content, where Getty competes with news organizations such as The Associated Press.

Peters stated that the new model cannot produce politically damaging “deepfake” images because it automatically blocks requests containing images of recognizable persons and brands. As an illustration, he entered “President Joe Biden on a surfboard” as a demonstration to an AP reporter, but the tool rejected the request.

“The positive news about this generative engine is that it cannot cause the Pentagon to be attacked. “It cannot generate the pope wearing Balenciaga,” he said, referring to a widely shared fake image of Pope Francis wearing a fashionable puffer jacket generated by artificial intelligence.

Peters added that AI-generated content will not be added to Getty Images’ content libraries, reserved for “real people in real places doing real things.”

SOURCE – (AP)

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