Is The EU Going After Qualcomm

Qualcomm faces an antitrust investigation in Europe, even as it seeks to end a probe of its alleged monopoly practices in China.

Reuters reported that Qualcomm is looking for an amicable resolution of an investigation conducted by China’s National Development and Reform Commission (NDRC) over suspicions that it holds a monopoly in the Chinese telecoms market.

The investigation involves allegations that Qualcomm’s China subsidiary has been overcharging and exploiting its position in the wireless communications sector.

The antitrust probe of Qualcomm has been ongoing since last November, when the firm revealed that it was under investigation by the NDRC, though at the time it said the NDRC had not revealed the substance of the investigation.

In February, the NDRC declared it had received complaints against Qualcomm from the China Communications Industry Association, regarding its market position and patent fees it charged Chinese mobile phone manufacturers.

While the NDRC has ruled that Qualcomm does hold a monopoly in China, it has yet to decide whether the company has abused its position in the market.

Under China’s 2008 anti-monopoly laws, Qualcomm could face high fines, potentially topping $1bn.

In a statement to Reuters, Qualcomm said that it is seeking an amicable conclusion to the investigation. “Qualcomm executives discussed with NDRC officials several topics in an effort to reach a comprehensive resolution. We are continuing to cooperate with NDRC and cannot comment further,” the firm said.

Given that the NDRC is targeting at least another 30 foreign firms with antitrust investigations, including Microsoft and Volkswagen, critics have suggested that the monopoly law is being used to unfairly target overseas firms so that China can protect its native businesses.

Even if the China case is settled Qualcomm is now facing the prospect of a monopoly probe in Europe. Reuters has also reported the company could face a European Commission antitrust investigation following a complaint made four years ago by British software defined modem company Icera, a subsidiary of Nvidia.

Icera alleged that Qualcomm had engaged in anti-competitive behaviour by discouraging customers from doing businesses with Icera through patent related incentives and exclusionary pricing of chipsets.

While it was thought that the allegations had dropped from the European Commission’s agenda, the issue has resurfaced. It could even be fast-tracked following a similar monopoly case and subsequent fine made against Intel, which cost the company €1.1bn.

As yet, no official investigation has been opened by the European Comission. Qualcomm was contacted for a statement on both antitrust investigations, but the company has not yet responded.

Patents and their subsequent enforcement tend to play a major part in the technology industry as companies vie for market shares or state their supremacy. Qualcomm is no different, with the company having snapped up 2,400 patents from HP, including one for the now-defunct Palm technology, earlier this year.

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Bitcoin Use Growing

Bitcoin is gaing greater acceptance at U.S. online merchants including Overstock.com and Expedia, as customers use a digital currency that just a few years ago was virtually unknown but is now showing some staying power.

Though sales paid for in bitcoin so far at vendors interviewed for this article have been a fraction of one percent, they expect that as acceptance grows, the online currency will one day be as ubiquitous as the internet.

“Bitcoin isn’t going anywhere; it’s here to stay,” said Michael Gulmann, vice president of global products at Expedia Inc. in Seattle, the largest online travel agent. “We want to be there from the beginning.” Expedia started accepting bitcoin payments for hotel bookings on July 11.

Until recently a niche alternative currency touted by a fervent group of followers, bitcoin has evolved into a software-based payment online system. Bitcoins are stored in a wallet with a unique identification number and companies like Coinbase and Blockchain can hold the currency for the user.

When buying an item from a merchant’s website, a customer simply clicks on the bitcoin option and a pop-in window appears where he can type in his wallet ID number.

Still, broad-based adoption of bitcoin is at least five years away because most consumers still prefer to use credit cards, analysts said.

“Bitcoin is a new way of making payments, but it’s not solving a problem that’s broken,” said George Peabody, payments consultant at Glenbrook Partners in Menlo Park, California. “Retail payments aren’t broken.”

There are also worries about bitcoin’s volatility: its price in U.S. dollars changes every day.

That risk is borne by the consumer and the bitcoin payment processor, such as Coinbase or Bitpay, not the retailer. The vendor doesn’t hold the bitcoin and is paid in U.S. dollars. As soon as a customer pays in bitcoin, the digital currency goes to the payment processor and the processor immediately pays the merchant, for a fee of less than 1 percent.

“We don’t have to deal with the actual holding of the bitcoin: it’s the payment processor that takes the currency risk for us,” said Bernie Han, chief operating officer at Dish Network Corp, in Englewood, Colorado. “That’s what makes it appealing for us and I guess for other merchants as well.”

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Can A Linux Cert Payoff?

The Linux Foundation has announced an online certification programme for entry-level system admininstration and advanced Linux software engineering professionals to help expand the global pool of Linux sysadmin and developer talent.

The foundation indicated that it established the certification programme because there’s increasing demand for staff in the IT industry, saying, “Demand for experienced Linux professionals continues to grow, with this year’s Linux Jobs Report showing that managers are prioritizing Linux hires and paying more for this talent.

“Because Linux runs today’s global technology infrastructure, companies around the world are looking for more Linux professionals, yet most hiring managers say that finding Linux talent is difficult.”

Linux Foundation executive director Jim Zemlin said, “Our mission is to address the demand for Linux that the industry is currently experiencing. We are making our training [programme] and Linux certification more accessible to users worldwide, since talent isn’t confined to one geography or one distribution.

“Our new Certification [Programme] will enable employers to easily identify Linux talent when hiring and uncover the best of the best. We think Linux professionals worldwide will want to proudly showcase their skills through these certifications and that these certificates will become a hallmark of quality throughout our industry.”

In an innovative departure from other Linux certification testing offered by a number of Linux distribution vendors and training firms, the foundation said, “The new Certification [Programme] exams and designations for Linux Foundation Certified System Administrator (LFCS) and Linux Foundation Certified Engineer (LFCE) will demonstrate that users are technically competent through a groundbreaking, performance-based exam that is available online, from anywhere and at any time.”

The exams are customised somewhat to accommodate technical differences that exist between three major Linux distributions that are characteristic of those usually encountered by Linux professionals working in the IT industry. Exam takers can choose between CentOS, openSUSE or Ubuntu, a derivative of Debian.

“The Linux Foundation’s certification [programme] will open new doors for Linux professionals who need a way to demonstrate their know-how and put them ahead of the rest,” said Ubuntu founder Mark Shuttleworth.

Those who want to look into acquiring the LFCS and LFCE certifications can visit the The Linux Foundation website where it offers the exams, as well as training to prepare for them. The exams are priced at $300, but apparently they are on special introductory offer for $50.

The Linux Foundation is a nonprofit organization dedicated to accelerating the growth of Linux and collaborative development. It is supported by a diverse roster of almost all of the largest IT companies in the world except Microsoft.

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Is Windows ‘Threshold’ Enroute?

Microsoft will unveil a preview of “Threshold,” the current code name for Windows 8′s successor, as soon as next month, according to an online report on Monday.

ZDNet’s Mary Jo Foley, citing unnamed sources, said that Microsoft will deliver a “technical preview” of Threshold late in September or early in October. Previously, Foley had reported that Microsoft would offer a preview of some kind this fall.

Threshold may be officially named “Windows 9″ by Microsoft — the company has said nothing about either the code name or labeled the next iteration of its desktop and tablet OS — although there are arguments for dumping a numerical title because of the possible association with Windows 8, which has widely been pegged as a failure.

“Technical Preview” is a moniker that Microsoft has used in the past for its Office suite. For both Office 2013 and Office 2010, Microsoft used the term to describe an invitation-only sneak peek. Both application suites were later released as public betas prior to their official launch.

Windows, however, has used a different nomenclature. For 2012′s Windows 8, Microsoft called the early looks ”Developer Preview,””Consumer Preview” and “Release Preview,” all open to everyone. The first was analogous to an alpha, the second to a beta, and the third to a done-but-not-approved release candidate.

Windows 7, however, had used the more traditional “Beta” to describe the first public preview in early 2009. The previous fall, when Microsoft unveiled Windows 7, the firm had seeded an invite-only “pre-alpha” version, also dubbed a Developer Preview, of the OS to programmers and some influential bloggers.

Within hours, the Windows 7 Developer Preview leaked to file-sharing websites. Microsoft may have changed its practices for Windows 8, letting anyone download the first preview, because of the inevitably of leaks.

In an update to her blog of earlier today, Foley added that the “Technical Preview” nameplate notwithstanding, Microsoft would allow anyone to download Threshold/Windows 9 when it becomes available in the next few weeks.

If Microsoft does ship a preview soon and sets its sights on a second-quarter 2015 final release, it will have significantly accelerated the tempo from past practice. With Windows 7 and Windows 8, Microsoft offered its first previews 12 and 13 months, respectively, and the public beta 8 or 9 months, before launching the operating system.

Eight or nine months from September would be May or June 2015; that, however, assumes that the Technical Preview is of beta quality. The name itself hints at something less.

Microsoft appears eager to put Windows 8 behind it. It has stopped beating the drum about the OS and recently announced that it would not issue any additional major updates. Instead, the firm said last week, it will include improvements or new features in small packets using the same Windows Update mechanism that regularly serves security patches.

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Apple Changes Policy In China

Apple Inc has started the processing of keeping the personal data of some Chinese users on servers in mainland China, marking the first time the tech giant is storing user data on Chinese soil.

The storage of user data in China represents a departure from the policies of some technology companies, notably Google Inc, which has long refused to build data centers in China due to censorship and privacy concerns.

Apple said the move was part of an effort to improve the speed and reliability of its iCloud service, which lets users store pictures, e-mail and other data. Positioning data centers as close to customers as possible means faster service.

The data will be kept on servers provided by China Telecom Corp Ltd, the country’s third-largest wireless carrier, Apple said in a statement.

“Apple takes user security and privacy very seriously,” it said. “We have added China Telecom to our list of data center providers to increase bandwidth and improve performance for our customers in mainland china. All data stored with our providers is encrypted. China Telecom does not have access to the content.”

A source with knowledge of the situation said the encryption keys for Apple’s data on China Telecom servers would be stored offshore and not made available to China Telecom.

Apple has said it has devised encryption systems for services such as iMessage that even Apple itself cannot unlock. But some experts expressed scepticism that Apple would be able to withhold user data in the event of a government request.

“If they’re making out that the data is protected and secure that’s a little disingenuous because if they want to operate a business here, that’d have to comply with demands from the authorities,” said Jeremy Goldkorn, director of Danwei.com, a research firm focused on Chinese media, internet and consumers.

“On the other hand if they don’t store Chinese user data on a Chinese server they’re basically risking a crackdown from the authorities.”

Goldkorn added that data stored in the United States is subject to similar U.S. regulations where the government can use court orders to demand private data.

A spokesman for China Telecom declined to comment.

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Applied Materials Makes A Profit

Chip-equipment maker Applied Materials has surprised most of the cocaine nose jobs of Wall Street with a better-than-expected third-quarter profit. It appears that contract manufacturers are spending more on technology used to make smartphone and memory chips.

The company also forecast current-quarter adjusted profit largely above analysts’ average estimate. Chief Executive Gary Dickerson said that demand for DRAM chips is expected to grow in the current quarter.

Applied Materials, which also provides equipment to make flat panel displays and solar cells, forecast an adjusted profit of 25-29 cents per share for the fourth quarter. Wall Street was expecting a profit of 26 cents per share.

Applied Materials expects revenue growth of about 10 to 17 percent, implying revenue of $2.19 billion to $2.33 billion for the quarter. Analysts on average were expecting $2.28 billion. Applied Materials’ net income rose to $301 millionin the third quarter ended July 27, from $168 milliona year earlier. Revenue rose 14.7 percent to $2.27 billion.

Revenue in the company’s silicon systems business, which brings in about two-thirds of total sales, rose 16 percent to $1.48 billion.

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The FCC Extends Deadline

U.S. Federal Communications Commission has said it would accept public comments on its proposed new “net neutrality” rules through Sept. 15, giving the American public extra time to voice their opinions and concerns on how they think Internet traffic should be regulated.

The FCC has received more than 1 million comments already on new rules for how Internet services providers should be allowed to manage web traffic on their networks.

The FCC had set a deadline of July 15 for the initial comments and then September 10 for replies to those initial comments. However, the surge in submissions overwhelmed the FCC’s website and the agency had delayed the first deadline by three business days.

“To ensure that members of the public have as much time as was initially anticipated to reply to initial comments in these proceedings, the Bureau today is extending the reply comment deadline by three business days,” the FCC said on Friday, delaying the final deadline for comments to September 15.

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Is Epic Turla Exploiting Windows XP?

Kaspersky Lab has discovered an espionage network that successfully attacked government institutions, intelligence agencies and European companies.

The firm has dubbed the spy operation Epic Turla, and said that it is in no doubt about its capabilities.

“Over the last 10 months, Kaspersky Lab researchers have analyzed a massive cyber-espionage operation which we call ‘Epic Turla’,” it said.

“The attackers behind Epic Turla have infected several hundred computers in more than 45 countries, including government institutions, embassies, military, education, research and pharmaceutical companies.”

Kaspersky said that Epic Turla used two zero-day exploits that affected Adobe and Microsoft software, along with some backdoor and social engineering tricks.

In particular, Kaspersky said a vulnerability in Windows XP and Windows 2003 – CVE-2013-5065 – termed a “privilege escalation vulnerability” is being used. “The CVE-2013-5065 exploit allows the backdoor to achieve administrator privileges on the system and run unrestricted. This exploit only works on unpatched Microsoft Windows XP systems.”

The use of this Windows XP flaw underlines the risk that the unsupported Windows XP OS poses. Kaspersky went on to explain that, once inside, attackers install their own rootkits and other malware tools and begin their surveillance.

“Once the attackers obtain the necessary credentials without the victim noticing, they deploy the rootkit and other extreme persistence mechanisms,” it said. “The attacks are still ongoing as of July 2014, actively targeting users in Europe and the Middle East.”

The attacks are just the latest in a long line of incidents that businesses need to be aware of as cyber attacks continue at an alarming rate.

In June the security firm Crowdstrike alerted the industry to Putter Panda, a cute-sounding but nasty piece of malware. That firm pointed an accusatory finger at China and charged it with espionage on the US and Europe.

Crowdstrike CEO George Kurtz said at the time, “China’s decade-long economic espionage campaign is massive and unrelenting. Through widespread espionage campaigns, Chinese threat actors are targeting companies and governments in every part of the globe.” Chinese authorities disputed this.

The report comes in the same week Hold Security reported uncovering a huge trove of 1.2 billion web passwords and login details that have been gathered by Russian cyber criminals.

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Is Snapdragon A Security Flaw?

Security researcher Dan Rosenberg has told a Black Hat conference how it is possible to permanently unlock the bootloader on Android phones – provided they use a Qualcomm Snapdragon chip.

Rosenberg said that the flaw is in ARM’s TrustZone technology, which runs a trusted operating system and another for normal apps. This is supposed to improve device security, but in Qualcomm’s implementation, they cocked it up. It means that if a hacker gets access to the trusted operation part of the chip, it can run whatever application he or she likes.

This affects all known Android devices with a Qualcomm Snapdragon SoC, including the Nexus 5, the HTC One, and Samsung’s Galaxy Note 3, as well as the Moto X. The Samsung Galaxy S5 and the HTC One M8 have already been patched.

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OpenSSL Gets Updated

OPENSSL, the web security layer at the center of the Heartbleed vulnerability, has been issued with a further nine critical patches.

While none are as serious as Heartbleed, patching is recommended for all users according to an advisory released today. The vulnerabilities stem from various security research teams around the web including Google, Logmein and Codenomicom, based on their reports during June and July of this year.

Among the more interesting fixes involves a flaw in the ClientHello message process. If a ClientHello message is badly fragmented, it is vulnerable to a man-in-the-middle attack which could be used to force the server to downgrade itself to the TLS 1.0 protocol, a fifteen year old and therefore pre-Heartbleed patch variant.

Other reports include memory leaks caused by denial of service attacks (DoS) and conversely, crashes caused by an attempt to free up the same portions of memory twice.

OpenSSL now has two full time coders as a result of investment by a consortium of Internet industry companies to form the Core Infrastructure Initiative, a not-for-profit group administered by the Linux Foundation. The Initiative was set up in the wake of Heartbleed, as the industry vowed to ensure such a large hole would never be left unplugged again.

While OpenSSL is used by a large number of encrypted sites, there are a number of forks of the project including LibreSSL and the recently launched Google BoringSSL.

Google recently announced that it would be lowering the page rankings of unencrypted pages in its search results as an added security measure.

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