Hitachi-LG Executives Plead Guilty

Three executives at Hitachi-LG Data Storage (HLDS) have agreed to plead guilty and serve prison time in the U.S. for their participation in a number of conspiracies to rig bids and fix the prices of optical disk drives sold to large computer manufacturers, the U.S. Department of Justice announced Tuesday.

Young Keun Park, Sang Hun Kim and Sik “Daniel” Hur conspired with others to suppress competition by rigging bids for optical disk drives sold to Dell and Hewlett-Packard and to fix prices for optical disk drives sold to Microsoft, the DOJ said. The conspiracies happened at various times between November 2005 and September 2009, the DOJ said.

Under a plea agreement in U.S. District Court for the Northern District of California, Park and Kim each have agreed to serve eight months in prison and Hur has agreed to serve seven months in prison. Each has also agreed to pay a US$25,000 fine.

.

Source…

DoJ Charges Clickjacking Perpetrators

The U.S. Department of Justice is charging seven individuals with 27 counts of wire fraud and other computer-related crimes, accusing the group of hijacking 4 million computers across 100 countries in a sophisticated clickjacking scam.

According to the indictment, the defendants had set up a fake Internet advertising agency, entering into agreements with online ad providers that would pay the group whenever its ads where clicked on by users. The group’s malware, which it had planted on millions of user computers, would redirect the computers’ browsers to its advertisements, thereby generating illicit revenue.

The malware worked by capturing and altering the results of a user’s search engine query. A user would search for a popular site, such as ones for Netflix, the Wall Street Journal, Amazon, Apple iTunes and the U.S. Internal Revenue Service. Whenever the user would click on the provided link, however, the browser would be redirected to another website, one that the group was paid to generate traffic for.

The malware the group used also blocked antivirus software updates, which left users vulnerable to other attacks as well, according to the DOJ.

Source…

Sprint Sues To Stop AT&T-T-Mobile merger

Sprint on Tuesday announced it has initiated a lawsuit against AT&T and Deutsche Telekom to block the two companies from merging “as a violation of Section 7 of the Clayton Act.” Section 7 of the Clayton Antitrust Act bars any person from acquiring “the whole or any part of the stock or other share capital” that would “substantially … lessen competition, or to tend to create a monopoly.” In its suit, Sprint argues that the proposed merger would violate this act because it would lead to AT&T and Verizon’s controlling 75% of the wireless market while taking in 90% of the profits.

Sprint’s antitrust suit comes less than a week after the U.S. Department of Justice filed an antitrust suit against the merger with the U.S. District Court for the District of Columbia. In its suit, the DOJ similarly argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

Read More….