Facebook's expansion triggers political backlash

SAN FRANCISCO – Facebook's plan to spread its online social network to other websites could be detoured by regulators looking into privacy concerns that have raised the ire of federal lawmakers.

Four senators said Tuesday that Facebook needs to make it easier for its 400 million users to protect their privacy as the site opens more avenues for them to share their interests and other personal information.

The Federal Trade Commission already had been examining the privacy and data collection practices of Facebook and other social networks, the agency confirmed Tuesday.

Then last week, Facebook announced a proposed expansion that irked Sen. Charles Schumer, D-N.Y., and, he says, many Web surfers who called his office to complain.

Having built one of the Web's most popular hangouts, Facebook is trying to extend its reach through new tools called "social plug-ins." These enable Facebook's users to share their interests in such products as clothes, movies and music on other websites. For instance, you might hit a button on Levis.com indicating you like a certain style of jeans, and then recommend a movie on another site. That information about the jeans and the movie might be passed along to other people in your Facebook network, depending on your privacy settings.

Facebook says all this will help personalize the Web for people. It stresses that no personal information is being given to the dozens of websites using the new plug-ins.

Still, it means that information that hadn't been previously communicated could get broadcast to your friends and family on Facebook.

And Facebook is indeed sharing some personal information with three websites that Facebook hopes will demonstrate how online services can be more helpful when they know more about their users. The sites with greater access to Facebook's data are business review service Yelp, music service Pandora and Microsoft Corp.'s Docs.com for word processing and spreadsheets.

Facebook users who don't want to be part of the company's expansion have to go through their privacy settings and change their preferences.

Schumer thinks the onus instead should be on Facebook to get users' explicit consent, a process known as "opting in."

"They have sort of assumed all their users want their information to be given far and wide, which is a false assumption," Schumer said in an interview.

Schumer sent a letter calling for simpler privacy controls to Facebook founder Mark Zuckerberg. The concerns were echoed by Sen. Michael Bennet, D-Colo; Sen. Mark Begich, D-Alaska; and Sen. Al Franken, D-Minn.

Facebook tried to assure Schumer that its latest idea won't invade users' privacy.

"We welcome a continued dialogue with you and others because we agree that scrutiny over the handling of personal data is needed as Internet users seek a more social and interactive experience," a Facebook vice president, Elliot Schrage, wrote in a letter to Schumer.

Schumer called Facebook's response inadequate and said his staff planned to meet with the company Wednesday.

Meanwhile, the FTC indicated it will weigh into the debate at some point.

"Our plan is to develop a framework that social networks and others will use to guide their data collection, use, and sharing practices," said Jessica Rich, deputy director of the FTC's Bureau of Consumer Protection.

Schumer pledged to introduce legislation that would expand the FTC's powers over Facebook and other Internet social networks if the regulatory agency doesn't feel it has the authority to require more straightforward privacy controls.

The political pressure could undermine Facebook's ambition to create a more social, open Web that could make it easier to aim online advertising at consumers based on their presumed interests. Facebook would probably thrive in a more communal Internet because it has amassed a huge database of personal information since Zuckerberg set up its website in a Harvard dorm room six years ago.

If Facebook's plans pan out, it could change the way people think of social networking. Instead of communicating on a closed website, Facebook's users could interact with one another over the entire Web. More sharing could spawn more customized websites that look different to each person visiting, depending on their friends and preferences.

While Zuckerberg has likened his vision to an online nirvana, critics see another hole in the crumbling walls of online privacy.

Facebook is moving from being a social network about sharing with friends "to a service that is about collecting and sharing information about you with advertisers so they can more closely tailor ads to you," said Ginger McCall, staff counsel at the Washington-based Electronic Privacy Information Center.

Fake anti-virus software a growing online threat: Google

SAN FRANCISCO (AFP) – Google said Tuesday that fake software security programs rigged to infect computers are a growing online threat with hackers tricking people into installing nefarious code on machines.

An analysis of 240 million Web pages by the Internet search giant during the past 13 months revealed that fake anti-virus programs accounted for 15 percent of malicious software it detected.

"The Fake AV threat is rising in prevalence, both absolutely and relative to other forms of Web-based malware," Google said in its findings.

"Clearly, there is a definitive upward trend in the number of new Fake AV domains that we encounter each week."

Fake anti-virus (AV) peddlers rig websites to frighten visitors with pop-up messages warning that supposed scans have found dangerous malicious software on machines.

The scam goes on by selling victims programs that hackers claim will fix the purported problems but which in fact usually plant nefarious computer code on machines.

Such transactions can also leave credit card information in the hands of cyber crooks.

"Surprisingly, many users fall victim to these attacks and pay to register the Fake AV," Google said.

"To add insult to injury, Fake AVs often are bundled with other malware, which remains on a victim?s computer regardless of whether a payment is made."

Google has refined tools to filter out booby-trapped Websites and hackers have evidently responded by flitting from one domain name to another.

Tech blog says it paid $5,000 for possible iPhone prototype

(CNN) -- Apple Inc. hasn't said how much future generations of the iPhone will cost, but an editor of a technology blog said his site shelled out $5,000 to get its hands on a possible prototype.

Gizmodo Senior Editor Jesus Diaz said his blog paid "a source" $5,000 for the phone, which was shown in a video on the blog Monday.

"Paying for an exclusive has always been done in the journalism world. There are people who admit they do it and people who do not. We have done it," Diaz told CNN's Gabriela Frias in an interview on CNN en Español's "En Efectivo."

Diaz said the blog's source obtained the phone after it was left in a bar.

"An engineer was in a bar, celebrating his birthday. He drank two drinks too many and forgot the phone," Diaz said.

He said Gizmodo returned the phone to Apple after receiving a letter asking for it.

Video: Is this the new iPhone?

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"It has come to our attention that Gizmodo is currently in possession of a device that belongs to Apple," says the short letter from Apple's lawyer to the blog. "This letter constitutes a formal request that you return the device to Apple. Please let me know where to pick up the unit."

Gizmodo, which posted the letter on its site, said the letter erases any doubt that the phone is the real deal.

"Just so you know, we didn't know this was stolen when we bought it," wrote Brian Lam, the site's editorial director, in his response. "Now that we definitely know it's not some knockoff and it really is Apple's, I'm happy to see it returned to its rightful owner.

"P.S. I hope you take it easy on the kid who lost it. I don't think he loves anything more than Apple except, well, beer."

Photos of the fourth-generation iPhone prototype first appeared on the tech blog Engadget over the weekend. The site said whoever sent the photos found the phone on the floor of a bar in San Jose, California.

On Monday, Gizmodo said it had obtained the device, but wouldn't say how.

Diaz said the price Gizmodo paid for the phone was worth it, even though editors weren't able to take advantage of all its features.

"It was remotely deactivated by Apple," he said. "But the screen is better, double the resolution of past versions. The quality of the product is much better. ... It is pleasing to touch it."

The find was widely considered the real thing in the tech world.

"At this point we're pretty much certain it is this summer's new model," wrote Wired magazine. "Somebody at Apple is in big trouble."

Daring Fireball blogger John Gruber, who is known to have connections inside Apple's Cupertino, California, headquarters, said on his blog that Apple had reported a prototype stolen.

He also said Apple has a patent out for a phone with a ceramic backing. Some of the images online appeared to show just such a backing.

Gizmodo's photos of the device's internal components show they're labeled as Apple products. The blog also said a computer recognized the device as an iPhone, and the phone apparently runs the yet-to-be-released iPhone OS 4.0.

Apple has not confirmed that a new version of the iPhone exists, though analysts widely expect the fourth generation of the device will be released in the summer. Apple did not return CNN requests for comment.

Even if the new iPhone is real, it's important to keep in mind that the device is just a prototype. It's unclear how many of its features will be available on the new phone.

A quick glance at the photos shows a flatter, less curvy iPhone. The back of the phone is completely flat, unlike the current model, which is tapered to fit the curve of a palm.

The new phone's back is ceramic rather than plastic, and has an aluminum border with two volume buttons instead of just one. Unlike the current model, it has a front-facing camera. It also has a camera on the back, which is larger than the one on the back of the current 3GS model.

Microsoft debuts 'fix it' program

Microsoft has launched "Fix It" software that keeps an eye on a PC and automatically repairs common faults.

The software basically adds the automatic diagnostics system in Windows 7 to older versions of Microsoft's operating system.

The software, currently available as a trial or beta version, is intended for users of Windows XP and Vista.

The package also tries to anticipate how security updates will affect a PC before they are installed.

Bug watch

Once installed, the software gets updates about known issues with Windows or any connected devices, and regularly checks to see if a host machine has fallen victim. Once fixes become available it will tell users they are ready or attempt to apply them.

The software has onboard fixes for about 300 of the most widely encountered problems that stop Windows working as it should.

The software also maintains a list of the hardware and software on a machine so if the automatic fix does not solve a problem, it will be able to help users supply detailed information to Microsoft's support staff about what has gone wrong.

Those signing up and downloading the Fix It software can use it on several different machines.

The free software can be downloaded from Microsoft's support pages. Windows XP users wanting to use it must have Service Pack 3 for the operating system installed.

The Fix It service began in late 2008, when Microsoft began using the logo to highlight automatic fixes on its support pages that dealt with very common problems.

Anyone clicking on the logo kicked off a download that tried to fix that problem automatically.

Microsoft, like many other software firms, has built a vast database of faults and problems as technology built into Windows reports back about crashes and other bugs that machines encounter.

'Microsoft vendor exploiting workers'

WASHINGTON: Microsoft said it had opened an investigation following a report of harsh working conditions at a factory in China that makes products
for the US software giant.

The Pittsburgh-based National Labor Committee (NLC), in a report denounced conditions at a KYE Systems Corp factory in the city of Dongguan in Guangdong province.

The NLC, a private group with a stated mission to "help defend the human rights of workers in the global economy," said KYE recruits hundreds of "work study students" aged 16 and 17 years old who work 15-hour shifts, six and seven days a week.

It said that in 2007 and 2008, before the recession, "workers were at the factory 97 hours a week while working 80-and-a-half hours."

"In 2009, workers report being at the factory 83 hours a week, while working 68 hours," the NLC said.

It said workers were paid 65 cents an hour, "which falls to a take-home wage of 52 cents after deductions for factory food."

"Workers are prohibited from talking, listening to music or using the bathroom during working hours," the NLC report said, adding that "as punishment, workers who make mistakes are made to clean the bathrooms.

"The workers have no rights, as every single labor law in China is violated," the report alleged. "Microsoft's and other companies' codes of conduct have zero impact."

Microsoft said it takes the claims "seriously" and vowed to "take appropriate remedial measures in regard to any findings of vendor misconduct."

"Microsoft is committed to the fair treatment and safety of workers employed by our vendors," the Redmond, Washington-based company said in a statement to AFP.

"Microsoft has invested heavily in a vendor accountability program and robust independent third-party auditing program to ensure conformance to the Microsoft Vendor Code of Conduct."

The NLC report said the factory makes computer mice for Microsoft, as well as products for other companies, including Hewlett-Packard, Best Buy, Samsung, Foxconn, Acer, Logitech and Asus.

What IT slowdown?

The apprehension, underlying some recent forecasts, of the Indian information technology (IT) sector losing zip appears to be grossly exaggerated. Markets abroad are likely to show far greater vigour than these forecasts anticipate. And the domestic market for IT products and services would appear to be on the verge of a quantum leap to a new order of magnitude.

Indian software companies weathered the financial crisis that froze IT budgets in their traditional markets. It reflects the resilience of the sector that garners over half of its revenues from North America. The demand for global IT services will rebound with economic revival. In fact, tepid growth in Europe and North America need not mean tepid growth in these markets' demand for IT services.

On the contrary, the assurance that things are on the upswing, offered by the tepidest of growth, combined with the need to cut costs further in an environment of slow top-line growth makes slow recovery a surer booster of demand for India's IT services than an environment of rapid revenue growth around the world. US-based companies will outsource more work to Indian firms to cut costs and improve margins as their incomes struggle to rise.

Indian companies should therefore adopt new business models to offer business transformation opportunities through integrated consulting, business intelligence and knowledge services. Innovation should be their watchword.
Domestic demand for IT services will also look up, with large e-governance initiatives by the Centre and state governments: the unique identity card program, computerisation of tax departments and the central record keeping infrastructure for the new pension scheme.

A second round of upgradation in banking IT infrastructure and IT solutions for the organised retail chain will also have positive spin-offs for the sector. The gradual tapering off of growth in call revenues for the telecom sector generates demand for a variety of value added services. Broadband wireless access is about to undergo a sea change, creating the infrastructure for delivery of new, data-intensive services. The prospects for India's IT industry never looked better.