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     Jul 14, 2012


<IT WORLD>
Google caught in the cookie jar
By Martin J Young

HUA HIN, Thailand - Google and the US Federal Trade Commission (FTC) are close to an agreement that may see the search giant landed with the largest fine yet levied by the commission. The company could be ordered to pay US$22.5 million in connection with accusations that it bypassed security settings in the Safari web browser in order to gather data on its users.

The figure itself is a drop in the ocean compared with Google's cash holdings, but it is a step in the right direction by the FTC, which is stepping up its approach to online privacy violations. According to a Wall Street Journal report citing sources familiar with the matter, a settlement is imminent.

Google was accused in February of manipulating code to bypass

 

the blocking of tracking cookies by Apple's browser (see Web police show their power , February 25, 2012. At the time, Google said the situation was unintentional and that its ad cookies did not gather personal data or harm consumers.

An emailed statement from the search company said "We do set the highest standards of privacy and security for our users. The FTC is focused on a 2009 help center page ... we have now changed that page and taken steps to remove the ad cookies, which collected no personal information, from Apple's browsers."

The action spurned an FTC investigation into whether Google had violated a 20-year agreement in which it established not to misrepresent its privacy practices to consumers. Similar consent decrees with the FTC governing privacy and data security violations had also been agreed with Facebook, Twitter and MySpace.

The latest impending levy adds to the list of charges and accusations that are mounting up against Google and its ever increasing stranglehold on the World Wide Web and those that use it.

Security
Microsoft's monthly software security fix day, "Patch Tuesday", rolled by this week with the usual slew of repairs to Windows and Internet Explorer. A zero day Windows vulnerability that has been exploited for weeks was finally patched; the flaw in XML Core Services (MSXML) had been used to target high-value victims, such as those in the aerospace and defense industries.

A total of 16 patches were applied to Windows, Office and IE9, the company's latest web browser. Three of them were rated critical and the rest important. IE9 had been touted as Microsoft's most secure browser, but already the company is applying the digital band-aids to prevent malicious code entering the browser when users are directed to fraudulent websites.

Microsoft officially confirmed that its next generation Windows 8 operating system will roll out to manufacturers in the first week of August and reach the shelves in late October. It also mentioned strong sales of Windows 7 and stated that 630 million licenses had been sold to date. Those who buy a computer running Windows 7 at the moment will have the option to upgrade to 8 for just $14.95.

Yahoo was on the wrong end of a major security breech this week when hackers infiltrated its system and gained access to more than 453,000 user log-in credentials. Using powerful database commands on search boxes in poorly secured web applications, the hackers tricked the server into dumping large amounts of sensitive data.

The information was posted on a hacker website and those responsible stated "We hope that the parties responsible for managing the security of this [Yahoo!] subdomain will take this as a wake-up call, and not as a threat. There have been many security holes exploited in webservers belonging to Yahoo! Inc that have caused far greater damage than our disclosure. Please do not take them lightly."

Hardware
Apple will start selling the newest version of its market dominating tablet computer, the iPad, in China as of July 20. The device went on sale in the United States and a number of other countries in March. The delay in China may have been due to a recently settled trademark dispute that resulted in the company paying out $60 million. (See Nexus in eye of patent storm, July 7, 2012)

Chinese consumers can't get enough of the company's gadgets, even though they often cost several times more than the average monthly wage for many. The new iPad's launch in the People's Republic is likely to generate more hype than it should, so Apple need to keep on its toes to prevent a repeat of a sales fiasco earlier this year.

When Apple's flagship Beijing store was scheduled to open to sell the iPhone 4S, frustrated aficionados who waited overnight in sub-zero temperatures pelted it with eggs after being told that the shop didn't actually have any new smart-phones and wouldn't really be opening yet.

Telecoms
Myanmar, which has been a closed door nation for several decades, has started the process of reforming its Internet and telecommunications services in order to offer international standards and cheap prices. Communications are currently considered a major obstacle to development in the country, where mobile phones cost hundreds of dollars and are available only to an estimated 4% of the population.

This week officials said the state-owned telephone operator Myanmar Posts and Telecommunications and Internet provider Yatanarpon Teleport plan to form joint ventures involving "local and overseas companies that have experience in international telecommunication services". If successful, the initiative could result in an increase of mobile penetration to 50% by 2015.

International firms have been eagerly eyeing Myanmar following recent reforms and the easing of sanctions. Analysts have called it one of the last untapped telecoms markets in the region.

Martin J Young is an Asia Times Online correspondent based in Thailand.

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)





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(24 hours to 11:59pm ET, Jul 12, 2012)

 
 


 

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