X has filed a lawsuit against media watchdog group Media Matters over the latter's research that showed ads on the social network appearing next to antisemitic content. The company's owner, Elon Musk, promised to file a "thermonuclear lawsuit" against the organization late last week following an advertiser exodus. In its complaint, X said Media Matters "knowingly and maliciously manufactured side-by-side images depicting advertisers' posts on X Corp.'s social media platform beside Neo-Nazi and white national fringe content." It added that the group portrayed the "manufactured images" as if they represented the typical user's experience in the platform. "Media Matters designed both these images and the resulting media strategy to drive advertisers from the platform and destroy X Corp," the company wrote. 

As TechCrunch notes, though, Media Matters didn't exactly "manufacture" the images it used with its research. Based on X's own investigation as it detailed in its lawsuit, the organization used an account older than 30 days to bypass the website's ad filters to follow a set of users known to produce "extreme, fringe content" along with the biggest advertisers on the platform. The group then allegedly kept on scrolling and refreshing its feed to generate "between 13 to 15 times more advertisements per hour than viewed by the average X user." X said the watchdog didn't provide any context regarding the "forced, inauthentic nature" of the advertisements it saw. It also didn't say why these accounts that are known to produce "extreme, fringe content" were monetized.

In a response to Media Matters' research, X CEO Linda Yaccarino said "not a single authentic user on X saw IBM's, Comcast's, or Oracle's ads next to the content in Media Matters' article." She added that "only two users saw Apple's ad next to the content, at least one of which was Media Matters." But Media Matters head Angelo Carusone retweeted several posts from seemingly authentic users showing ads for searches and tags such as "killjews" and "HeilHitler." We reached out to the organization about the lawsuit, and a spokesperson told Engadget: "This is a frivolous lawsuit meant to bully X's critics into silence. Media Matters stands behind its reporting and looks forward to winning in court."

Aside from X's lawsuit, Media Matters also has to grapple with an investigation by Ken Paxton, the Attorney General of Texas. Paxton said his office is looking into Media Matters, which he called "a radical anti-free speech" organization, for potential fraudulent activity. He said he's investigating the watchdog to "ensure that the public has not been deceived by the schemes of radical left-wing organizations who would like nothing more than to limit freedom by reducing participation in the public square."

The media watchdog had published its findings after X owner Elon Musk responded to a tweet that said Jews pushed "hatred against whites that they claim to want people to stop using against them." Musk wrote: "You have said the actual truth." Several big-name advertisers had pulled their campaigns from the platform following the incidents, including IBM, Apple, Disney, Paramount and Comcast. Meanwhile, Lionsgate specifically cited Elon's tweet as the reason for pulling its ads. 

Apple has joined Meta and TikTok owner ByteDance in contesting their platforms’ definitions as part of the EU’s Digital Markets Act (DMA). The legislation allows regulators to designate dominant companies’ services or platforms as “gatekeepers,” or big and powerful enough to act as a bottleneck between businesses and customers, which it can then fine for prohibited behavior. It currently targets 22 gatekeeper services run by six Big Tech companies (Apple, Microsoft, Alphabet’s Google, Meta, Amazon and ByteDance’s TikTok). The law encourages consumer-friendly competition, preventing businesses from imposing unfair conditions on customers.

The EU Court of Justice (via Reuters) posted on X Friday about Apple’s formal objection, announcing that the iPhone maker had joined Meta and ByteDance in contesting its decisions. Although the complaint details aren’t public, Bloomberg News reported last week that Apple would challenge the App Store’s gatekeeper designation. The company said this week it would soon support RCS on iPhone, potentially removing one of the EU’s bones to pick with iMessage consumer lock-in. 

Microsoft and Google have reportedly accepted their DMA designations, while Meta and ByteDance contested theirs. Meta specifically questioned Messenger and Marketplace’s gatekeeper labels, seeking to clarify why they were included. (Meta didn’t challenge Facebook, Instagram and WhatsApp’s inclusion.) The company argued Marketplace is a consumer-to-consumer service and Messenger is a chat feature on Facebook, not an online intermediary.

Meanwhile, ByteDance argues that TikTok is a challenger in the social market rather than an established gatekeeper. It claimed designating its platform as such would only serve to protect more established companies.

Like the Digital Services Act (DSA), the DMA has significant teeth. Companies failing to comply can face fines of up to 10 percent of their global turnover, up to 20 percent for repeat offenders and periodic fines of up to five percent of their average daily turnover. Other penalties, including the divestiture of parts of a business, could also be included following market investigations.

A hacking group deployed a surprising tactic after infiltrating a financial software company’s network. They reported the breach to the US Securities and Exchange Commission (SEC).

DataBreaches.net initially reported on the incident, which was conducted by ALPHV / BlackCat, a group known for infiltrating entities as diverse as MGM Resorts and Reddit. The hackers reportedly breached the servers of fintech company MeridianLink on November 7, stealing company data without encrypting it. However, when the business neglected to negotiate directly, the hackers increased the pressure by filing a report with the SEC.

They did so citing a new rule the SEC passed this summer, which requires companies falling victim to “material cybersecurity incidents” to report them to the agency within four business days.

However, the four-day requirement may not have taken effect yet. At least one official form claims the rule kicked in 90 days after the date of publication in the Federal Register (they appear to have been published on August 4, making that alleged effective date November 2) or December 18. But the Federal Register document says, “With respect to compliance with the incident disclosure requirements in Item 1.05 of Form 8–K and in Form 6–K [the part referring to the four-day requirement], all registrants other than smaller reporting companies must begin complying on December 18, 2023.” Adding to the confusion, Reuters reported in October that the rule takes effect on December 15.

Engadget reached out to the SEC to clarify whether the rule is active yet. We’ll update this article if we hear back.

MeridianLink told BleepingComputer that it quickly worked to contain the threat. “Based on our investigation to date, we have identified no evidence of unauthorized access to our production platforms, and the incident has caused minimal business interruption,” the company wrote. The company says it’s still trying to determine if any consumer personal information was breached, promising to notify affected parties if it was.

Whether the SEC has any teeth (or desire) to do anything about MeridianLink’s failure to report the incident in four business days, the rule could, ironically, serve as a new tool for cyber attackers. Rather than contacting customers or making calls to tighten the grip and pressure companies to comply with their demands, perhaps they can now simply rat them out to Uncle Sam.

Workers at Sega of America are accusing the video game company of "bad faith bargaining with workers" for its plan to lay off dozens of temporary workers. The publisher known for franchises that include Sonic the Hedgehog and Yakuza is now facing an unfair labor practice complaint filed by the Communications Workers of America (CWA). In April, 200 people in various departments across the company overwhelmingly voted in favor of unionization and formed the Allied Employees Guild Improving Sega (AEGIS-CWA) under the CWA. Now, Sega allegedly intends to lay off 80 of those unionized workers.

In its complaint, the CWA explained that it's been in bargaining with Sega since September. On November 6, Sega apparently presented the organization with a proposal to phase out of all its temporary employees by taking their work offshore to the company's offices in Europe and Japan by February 2024. Those temporary employees make up 40 percent of the union's bargaining unit and mostly work in quality assurance and localization, which the group describes as "critical to Sega's success."

The afternoon after their meeting, the CWA said Sega presented its proposal to the affected employees through captive audience meetings. "We believe this is a clear case of bad faith bargaining," the CWA wrote in its complaint, since Sega dealt directly with the union members and "violated status quo" by telling them they're losing their jobs. 

"Sega will not be allowed to get away with this unlawful behavior," Elise Willacker, Senior QA Tester Temp, said in a statement. "We call on the company to make all temporary employees permanent and return to the bargaining table in good faith. There is no other just alternative." As Kotaku notes, the organization's complaint is now in the hands of the National Labor Relations Board, but it may take a while to resolve and may not prevent the layoffs from taking place. 

The hype surrounding emerging technologies like generative AI creates a wild west, of sorts, for bad actors seeking to capitalize on consumer confusion. To that end, Google is suing some scammers who allegedly tricked people into downloading an “unpublished” version of its Bard AI software. Instead of a helpful chatbot, this Bard was reportedly stuffed with malware.

The lawsuit was filed today in California and it alleges that individuals based in Vietnam have been setting up social media pages and running ads encouraging users to download a version of Bard, but this version doesn’t deliver helpful answers on how to cook risotto or whatever. This Bard, once downloaded by some rube, worms its way into the system and steals passwords and social media credentials. The lawsuit notes that these scammers have specifically used Facebook as their preferred distribution method.

Google’s official blog post on the matter notes that it sent over 300 takedown requests before opting for the lawsuit. The suit doesn’t seek financial compensation, but rather an order to stop the alleged fraudsters from setting up similar domains, particularly with US-based domain registrars. The company says that this outcome will “serve as a deterrent and provide a clear mechanism for preventing similar scams in the future.”

The lawsuit goes on to highlight how emerging technologies are ripe for this kind of anti-consumer weaponization. In this case, the alleged scammers said that Bard is a paid service that required a download. In reality, it’s a free web service.

Apple will pay $25 million in backpay and civil penalties to settle allegations that it favored visa holders and discriminated against US citizens and permanent residents during its hiring process, the Department of Justice said in a statement on Thursday. This is the largest amount that the DOJ has collected under the anti-discrimination provision of the Immigration and Nationality Act.

At the heart of the issue is a federal program administered by the Department of Labor and the Department of Homeland Security called the Permanent Labor Certification Program (PERM). PERM allows US employers to file for foreign workers on visas to become permanent US residents. As part of the PERM process, employers are required to prominently advertise open positions so that anyone can apply to them regardless of citizenship status.

The DOJ said that Apple violated these rules by not advertising PERM positions on their recruiting website, and also made it harder for people to apply by requiring mailed-in paper applications, something that it did not do for regular, non-PERM positions. As a result, a DOJ investigation found that Apple received few or no applications for these positions from US citizens or permanent residents who do not require work visas.

As part of the settlement, Apple will pay $6.75 million in civil penalties and set up a $18.25 million fund to pay back eligible discrimination victims, the DOJ's statement said. 

Apple disagreed with the DOJ’s characterization. “Apple proudly employs more than 90,000 people in the United States and continues to invest nationwide, creating millions of jobs,” a company spokesperson told CNBC. “When we realized we had unintentionally not been following the DOJ standard, we agreed to a settlement addressing their concerns. We have implemented a robust remediation plan to comply with the requirements of various government agencies as we continue to hire American workers and grow in the US”

A group of Google employees has published an open letter on Medium calling out an alleged double standard in the company related to freedom of expression surrounding the Israel-Palestine war. The essay condemns “hate, abuse and retaliation” within the company against Muslim, Arab and Palestinian workers. The employees who penned the letter, which doesn’t include specific names out of fear of retaliation, demand that CEO Sundar Pichai, Google Cloud CEO Thomas Kurian and other senior leaders publicly condemn “the ongoing genocide in the strongest possible terms.” In addition, they urge the company to cancel Project Nimbus, a $1.2 billion deal to supply AI and other advanced tech to the Israeli military.

“We are Muslim, Palestinian, and Arab Google employees joined by anti-Zionist Jewish colleagues,” the letter opens. “We cannot remain silent in the face of the hate, abuse, and retaliation that we are being subjected to in the workplace in this moment.”

The letter cites specific examples of emotionally charged and inappropriate workplace behavior. These include unnamed Googlers accusing Palestinians of supporting terrorism, committing “slander against the Prophet Muhammad,” and publicly calling Palestinians “animals” on official Google work platforms. The group describes leadership as “standing idly by” in the latter two cases, and it says Google managers have called employees “sick” and “a lost cause” for expressing empathy toward Gaza residents.

The employees say Google managers have publicly asked Arab and Muslim people in the company if they support Hamas as a response to their concern for Palestinian families. “There are even coordinated efforts to stalk the public lives of workers sympathetic to Palestine and to report them both to Google and law enforcement for ‘supporting terrorism,’” the letter reads.

ASSOCIATED PRESS

Other examples cited include “heartfelt appeals” to donate to a charity for Gaza citizens being “met with multiple comments dehumanizing Gazans as being ‘animals,’ disregarding their plight and calling upon Googlers to boycott relief work for civilians due to the fact that Palestinian schools and hospitals were being used for ‘terrorism.’” The letter also accuses Google managers of using their rank to “question, report, and attempt to get fired Muslim, Arab, and Palestinian Googlers who express sympathy with the plight of the besieged Palestinian people.” It describes one manager endorsing “surveillance of Google employees on social media,” and then openly harassing them on Google work platforms.

“You have to be very, very, very careful, because any sort of criticism toward the Israeli state can be easily taken as antisemitism,” Sarmad Gilani, a Google software engineer who took part in the letter, said in an interview with The New York Times. “It feels like I have to condemn Hamas 10 times before saying one tiny, tiny thing criticizing Israel.”

Engadget contacted Google for a comment but didn’t immediately receive a response. We will update this article if we hear back.

The tensions inflamed in the last month by the Israel-Palestine war have resurfaced resentments about Google’s involvement in Project Nimbus. In 2021, Google and Amazon workers penned a similar open letter calling on their companies to pull out of the deal, which they said would enable surveillance of and unlawful data collection on Palestinians. Today’s letter echoes that sentiment. “We demand that Google stop providing material support to this genocide by canceling its Project Nimbus contract and immediately cease doing business with the Israeli apartheid government and military,” it reads.

Google has ended its agreement with real estate developer Landlease for its San Francisco Bay Project, effectively scrapping its plans to build a campus with thousands of homes for employees and locals. The company announced the project in 2019, promising the "development of at least 15,000 new homes at all income levels" on at least $750 million worth of land it owns. Around 4,000 of those homes were supposed to be affordable housing, which would've been a welcome presence in the region with one of the highest costs of living in the country. 

The San Francisco Bay Project is a collective name for Google's planned developments in San Jose (Downtown West), Sunnyvale (Moffett Park) and Mountain View (Middlefield Park and North Bayshore). San Jose, in particular, approved the massive project in 2021, and it would've seen the construction of 4,000 homes, office space for approximately 20,000 employees, 300 hotel rooms and 10 parks. As part of the deal, Google had agreed to set aside $200 million in funding for displaced local businesses and job readiness programs. 

Earlier this year, however, Google put the Downtown West facility construction on hold after demolition had already started to make way for construction that was scheduled to begin in 2026. The company told Engadget at the time that it was still figuring out "how to best move forward" with the San Jose campus in a way that would cater to its "future needs." Workplaces have changed tremendously over the past few years, after all, mostly due to the COVID-19 pandemic — Google, for instance, adopted a hybrid work schedule that allowed employees to work from home for a couple of days a week. Earlier this year, Google parent Alphabet also laid off 12,000 workers after going on a hiring spree during a period of growth. 

In Lendlease's announcement (PDF), it said that the companies have decided to end their agreement after Google did a comprehensive review of its real estate investments. They've apparently determined that the "existing agreements are no longer mutually beneficial given current market conditions. Based on what a company spokesperson told CNBC, though, Google hasn't entirely killed its housing projects. "As we've shared before, we've been optimizing our real estate investments in the Bay Area, and part of that work is looking at a variety of options to move our development projects forward and deliver on our housing commitment," Alexa Arena, a senior director of development at Google, told the news organziation. San Jose Mayor Matt Mahan also told CNBC that this development "doesn't change Google's commitment to San Jose or their timeline" and that it gives the company more flexibility to choose the "best possible developers" for the project. 

Uber and Lyft have agreed to pay a combined $328 million in settlements following a wage theft investigation by the New York attorney general’s office. According to New York AG Letitia James, the companies’ policies “systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits.” They’ll both now have to pay settlement funds to more than 100,000 current and former drivers in New York, and offer both minimum hourly pay rates and paid sick leave.

In the two settlements, Uber has to pay $290 million, while Lyft must pay $38 million. The AG’s office found both Uber and Lyft shortchanged drivers by deducting sales taxes from drivers’ commissions that should have been paid by riders between 2014 and 2017. They also did not offer paid sick leave. As a result of the settlement, drivers outside of New York City will be guaranteed an earnings floor of $26 per hour (NYC drivers already have minimum rates under Taxi & Limousine Commission regulations), and will earn one hour of sick pay for every 30 hours worked. This will be capped at 56 hours per year.

NYC drivers will get $17 per hour for sick leave, while drivers outside of the city will get $26 per hour. Both rates will be adjusted annually for inflation. Drivers can put in a claim for their share of the settlement on the New York Attorney General’s website. The companies will also be required to update their apps to improve the process for putting in sick leave requests and provide support for pay-related questions, plus earnings statements for drivers which explain their compensation in detail.

New York has been cracking down on app-based service providers in recent years amid a push by the Biden administration to see gig workers classified as employees. A California court, however, slapped down one such bill in March, allowing companies to continue classifying their drivers as contractors. But NY has made progress recently in securing more protections. In September, Uber, GrubHub and DoorDash were told they must pay their delivery workers a minimum wage.

Disney is buying the rest of Hulu from Comcast, the company has announced. It will acquire the 33 percent of Hulu Comcast still controls and expects to pay NBC Universal approximately $8.61 billion for the deal, though the final amount will be determined after an appraisal that will be wrapping up sometime next year. As The New York Times notes, the companies had agreed back in 2019 that Comcast could force Disney to buy its stake by next year and Disney could require Comcast to sell. The cable TV and media company chose to speed up negotiations with Disney instead of waiting until 2024. 

"The acquisition of Comcast’s stake in Hulu at fair market value will further Disney's streaming objectives," Disney said in its announcement. Earlier this year, the company revealed that it will launch a "one-app experience" that combines Disney+ and Hulu content by the end of 2023. While it didn't outright say at the time that it had plans to buy out Comcast, that was a pretty big clue that a full Hulu takeover was in the cards. Hulu's standalone app won't be going away anytime soon, but its offerings will also be available on Disney+ when the new experience launches. 

Disney CEO Bob Iger said when he announced the combined streaming app that it's "a logical progression" of the company's direct-to-consumer offerings "that will provide greater opportunities for advertisers, while giving bundle subscribers access to more robust and streamlined content..." As for Comcast, it already has its own streaming service — Peacock — and has been making its shows like The Voice available to its members.