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United States

FAA is Investigating New Incident Involving a Boeing 737 Max 8 Jet in Midair (npr.org) 51

New submitter wgoodman writes: A Boeing 737 Max 8 jet experienced a rare but potentially serious problem recently known as a Dutch roll before landing safely. The Federal Aviation Administration is investigating the cause of the incident during a Southwest Airlines flight last month. Less than an hour after taking off from Phoenix on May 25th, the plane experienced an uncontrolled side-to-side yawing motion known as a Dutch roll while cruising at 32,000 feet. The pilots of Southwest flight 746 were able to regain control and the plane landed safely in Oakland, according to a preliminary report from the FAA.

[...] The Boeing 737 Max 8 jet involved in the Dutch roll incident is less than two years old. According to the FAA, a post-flight inspection revealed damage to a backup power control unit, known as a PCU. That system controls rudder movements on the plane's tail. The plane remained in Oakland until June 6th, when it flew to Everett, Wash., where one of Southwest's maintenance vendors is based. Boeing has been working to rebuild the trust of federal regulators and the flying public since a pair of Boeing 737 Max 8 jets crashed in 2018 and 2019, killing 346 people. Earlier versions of the 737 were involved in several accidents and crashes during the 1990s that were ultimately blamed on problems with the tail rudder.

Social Networks

A Growing Number of Americans Are Getting Their News From TikTok (theverge.com) 197

According to a new survey from the Pew Research Center, TikTok is the second most popular source of news for Americans after X, "though most TikTok users don't primarily think of the shortform video app as a news source," notes The Verge. The survey looked at how Facebook, Instagram, TikTok and X play a role in Americans' news diets. From the report: Among TikTok users, only 15 percent say keeping up with the news is a major reason they use the app. Still, 35 percent of those surveyed said they wouldn't have seen the news they get on TikTok elsewhere. And unlike other apps, the news users see on TikTok is just as likely to come from influencers or celebrities as it is from journalists -- and it's far more likely to come from total strangers. (Meanwhile, most Facebook and Instagram users say the news that pops up on their feeds is posted by friends, relatives, or other people they know; on X, users are more likely to see news posted by media outlets or reporters.)
Open Source

OIN Expands Linux Patent Protection Yet Again (But Not To AI) (zdnet.com) 7

Steven Vaughan-Nichols reports via ZDNet: While Linux and open-source software (OSS) are no longer constantly under intellectual property (IP) attacks, the Open Invention Network (OIN) patent consortium still stands guard over its patents. Now, OIN, the largest patent non-aggression community, has expanded its protection once again by updating its Linux System definition. Covering more than just Linux, the Linux System definition also protects adjacent open-source technologies. In the past, protection was expanded to Android, Kubernetes, and OpenStack. The OIN accomplishes this by providing a shared defensive patent pool of over 3 million patents from over 3,900 community members. OIN members include Amazon, Google, Microsoft, and essentially all Linux-based companies.

This latest update extends OIN's existing patent risk mitigation efforts to cloud-native computing and enterprise software. In the cloud computing realm, OIN has added patent coverage for projects such as Istio, Falco, Argo, Grafana, and Spire. For enterprise computing, packages such as Apache Atlas and Apache Solr -- used for data management and search at scale, respectively -- are now protected. The update also enhances patent protection for the Internet of Things (IoT), networking, and automotive technologies. OpenThread and packages such as agl-compositor and kukusa.val have been added to the Linux System definition. In the embedded systems space, OIN has supplemented its coverage of technologies like OpenEmbedded by adding the OpenAMP and Matter, the home IoT standard. OIN has included open hardware development tools such as Edalize, cocotb, Amaranth, and Migen, building upon its existing coverage of hardware design tools like Verilator and FuseSoc.

Keith Bergelt, OIN's CEO, emphasized the importance of this update, stating, "Linux and other open-source software projects continue to accelerate the pace of innovation across a growing number of industries. By design, periodic expansion of OIN's Linux System definition enables OIN to keep pace with OSS's growth." [...] Looking ahead, Bergelt said, "We made this conscious decision not to include AI. It's so dynamic. We wait until we see what AI programs have significant usage and adoption levels." This is how the OIN has always worked. The consortium takes its time to ensure it extends its protection to projects that will be around for the long haul. The OIN practices patent non-aggression in core Linux and adjacent open-source technologies by cross-licensing their Linux System patents to one another on a royalty-free basis. When OIN signees are attacked because of their patents, the OIN can spring into action.

Businesses

Amazon Says It'll Spend $230 Million On Generative AI Startups (techcrunch.com) 10

An anonymous reader quotes a report from TechCrunch: Amazon says that it will commit up to $230 million to startups building generative AI-powered applications. The investment, roughly $80 million of which will fund Amazon's second AWS Generative AI Accelerator program, aims to position AWS as an attractive cloud infrastructure choice for startups developing generative AI models to power their products, apps and services. Much of the new tranche -- including the entire portion set aside for the accelerator program -- comes in the form of compute credits for AWS infrastructure, meaning that it can't be transferred to other cloud service providers like Google Cloud and Microsoft Azure.

To sweeten the pot, Amazon is pledging that startups in this year's Generative AI Accelerator cohort will gain access to experts and tech from Nvidia, the program's presenting partner. They will also be invited to join the Nvidia Inception program, which provides companies opportunities to connect with potential investors and additional consulting resources. The Generative AI Accelerator program has also grown substantially. Last year's cohort, which had 21 startups, received only up to $300,000 in AWS compute credits, amounting to around a combined $6.3 million investment. "With this new effort, we will help startups launch and scale world-class businesses, providing the building blocks they need to unleash new AI applications that will impact all facets of how the world learns, connects, and does business," Matt Wood, VP of AI products at AWS, said in a statement.
Further reading: How Amazon Blew Alexa's Shot To Dominate AI
AI

Turkish Student Arrested For Using AI To Cheat in University Exam (reuters.com) 49

Turkish authorities have arrested a student for cheating during a university entrance exam by using a makeshift device linked to AI software to answer questions. From a report: The student was spotted behaving in a suspicious way during the exam at the weekend and was detained by police, before being formally arrested and sent to jail pending trial. Another person, who was helping the student, was also detained.
The Courts

Chemical Makers Sue Over Rule To Rid Water of 'Forever Chemicals' (thehill.com) 101

An anonymous reader quotes a report from the New York Times: Chemical and manufacturing groups sued the federal government late Monday (Warning: source paywalled; alternative source) over a landmark drinking-water standard that would require cleanup of so-called forever chemicals linked to cancer and other health risks. The industry groups said that the government was exceeding its authority under the Safe Drinking Water Act by requiring that municipal water systems all but remove six synthetic chemicals, known by the acronym PFAS, that are present in the tap water of hundreds of millions of Americans. The Environmental Protection Agency has said that the new standard, put in place in April, will prevent thousands of deaths and reduce tens of thousands of serious illnesses. The E.P.A.'s cleanup standard was also expected to prompt a wave of litigation against chemical manufacturers by water utilities nationwide trying to recoup their cleanup costs. Utilities have also challenged the stringent new standard, questioning the underlying science and citing the cost of filtering the toxic chemicals out of drinking water.

In a joint filing late Monday, the American Chemistry Council and National Association of Manufacturers said the E.P.A. rule was "arbitrary, capricious and an abuse of discretion." The petition was filed in the Court of Appeals for the District of Columbia. In a separate petition, the American Water Works Association and the Association of Metropolitan Water Agencies said the E.P.A. had "significantly underestimated the costs" of the rule. Taxpayers could ultimately foot the bill in the form of increased water rates, they said. PFAS, a vast class of chemicals also called per- and polyfluoroalkyl substances, are widespread in the environment. They are commonly found in people's blood, and a 2023 government study of private wells and public water systems detected PFAS chemicals in nearly half the tap water in the country. Exposure to PFAS has been associated with developmental delays in children, decreased fertility in women and increased risk of some cancers, according to the E.P.A. [...] The E.P.A. estimates that it would cost water utilities about $1.5 billion annually to comply with the rule, though utilities have said the costs could be twice that amount.
Further reading: Lawyers To Plastic Makers: Prepare For 'Astronomical' PFAS Lawsuits
Earth

Norway Discovers Europe's Largest Deposit of Rare Earth Metals 85

Rare Earths Norway has discovered Europe's largest proven deposit of rare earth elements in the Fen Carbonatite Complex, positioning Norway as a key player in Europe's effort to reduce reliance on China's rare earths supply. CNBC reports: Rare Earths Norway said in a June 6 statement that its Fen Carbonatite Complex in the southeast of the country boasts 8.8 million metric tons of total rare earth oxides (TREOs) with a reasonable prospect for economic extraction. Within the TREOs, which are considered vital to the global shift away from fossil fuels, the company says there is an estimated 1.5 million metric tons of magnet-related rare earths which can be used in electric vehicles and wind turbines. The discovery eclipses a massive rare earths deposit found last year in neighboring Sweden.

One of the aims of the Critical Raw Materials Act is to extract at least 10% of the European Union's annual demand for rare earths by 2030 and Rare Earths Norway says it hopes to contribute to that goal. Rare Earths Norway said the rare earths deposit in Telemark, roughly 210 kilometers (130 miles) southwest of Oslo, is likely to underscore Norway's position as an integral part of Europe's rare earth and critical raw material value chain.
Intel

Intel Is Trucking a 916,000-Pound 'Super Load' Across Ohio To Its New Fab (tomshardware.com) 51

Intel has begun ferrying around 20 "super loads" across Ohio for the construction of its new $28 billion Ohio One Campus. The extensive planning and coordination required for these shipments are expected to cause road closures and delays during the nine days of transport. Tom's Hardware reports: Intel's new campus coming to New Albany, OH, is in heavy construction, and around 20 super loads are being ferried across Ohio's roads by the Ohio Department of Transportation after arriving at a port of the Ohio River via barge. Four of these loads, including the one hitting the road now, weigh around 900,000 pounds -- that's 400 metric tons, or 76 elephants. The super loads were first planned for February but were delayed due to the immense planning workload. Large crowds are estimated to accumulate on the route, potentially slowing it even further.

Intel's 916,000-pound shipment is a "cold box," a self-standing air-processor structure that facilitates the cryogenic technology needed to fabricate semiconductors. The box is 23 feet tall, 20 feet wide, and 280 feet long, nearly the length of a football field. The immense scale of the cold box necessitates a transit process that moves at a "parade pace" of 5-10 miles per hour. Intel is taking over southern Ohio's roads for the next several weeks and months as it builds its new Ohio One Campus, a $28 billion project to create a 1,000-acre campus with two chip factories and room for more. Calling it the new "Silicon Heartland," the project will be the first leading-edge semiconductor fab in the American Midwest, and once operational, will get to work on the "Angstrom era" of Intel processes, 20A and beyond.
The Ohio Department of Transportation has shared a timetable for how long this process will take.
United States

FTC Chair Lina Khan Says Agency Pursuing 'Mob Bosses' in Big Tech (techcrunch.com) 39

The U.S. Federal Trade Commission is prioritizing enforcement actions against major technology companies that cause the most harm, FTC Chair Lina Khan said at an event. Khan emphasized the importance of targeting "mob bosses" rather than lower-level offenders to effectively address illegal behaviors in the industry. The FTC has recently launched antitrust probes into Microsoft, Open AI, and Nvidia, and has taken legal action against Meta, Amazon, Google, and Apple in recent years. TechCrunch adds: Khan said that in any given year, the FTC sees up to 3,000 merger filings reported to the agency and that around 2% of those deals get a second look by the government. "So you have 98% of deals that, for the most part, are going through," she said. "If you are a startup or a founder that is eager for an acquisition as an exit, a world in which you have five or six or seven or eight potential suitors, I would think, is a better world in which you just have one or two, right? And so, actually promoting more competition at that level to ensure that startups have you know more of a fair chance of getting a better valuation, I think would be beneficial as well."
AI

The Rise and Fall of BNN Breaking, an AI-Generated News Outlet (nytimes.com) 38

An anonymous reader quotes a report from the New York Times: The news was featured on MSN.com: "Prominent Irish broadcaster faces trial over alleged sexual misconduct." At the top of the story was a photo of Dave Fanning. But Mr. Fanning, an Irish D.J. and talk-show host famed for his discovery of the rock band U2, was not the broadcaster in question. "You wouldn't believe the amount of people who got in touch," said Mr. Fanning, who called the error "outrageous." The falsehood, visible for hours on the default homepage for anyone in Ireland who used Microsoft Edge as a browser, was the result of an artificial intelligence snafu. A fly-by-night journalism outlet called BNN Breaking had used an A.I. chatbot to paraphrase an article from another news site, according to a BNN employee. BNN added Mr. Fanning to the mix by including a photo of a "prominent Irish broadcaster." The story was then promoted by MSN, a web portal owned by Microsoft. The story was deleted from the internet a day later, but the damage to Mr. Fanning's reputation was not so easily undone, he said in a defamation lawsuit filed in Ireland against Microsoft and BNN Breaking. His is just one of many complaints against BNN, a site based in Hong Kong that published numerous falsehoods during its short time online as a result of what appeared to be generative A.I. errors.

Mr. Fanning's complaint against BNN is one of many. The site based published numerous falsehoods during its short time online.Credit...Paulo Nunes dos Santos for The New York Times BNN went dormant in April, while The New York Times was reporting this article. The company and its founder did not respond to multiple requests for comment. Microsoft had no comment on MSN's featuring the misleading story with Mr. Fanning's photo or his defamation case, but the company said it had terminated its licensing agreement with BNN. During the two years that BNN was active, it had the veneer of a legitimate news service, claiming a worldwide roster of "seasoned" journalists and 10 million monthly visitors, surpassing the The Chicago Tribune's self-reported audience. Prominent news organizations like The Washington Post, Politico and The Guardian linked to BNN's stories. Google News often surfaced them, too. A closer look, however, would have revealed that individual journalists at BNN published lengthy stories as often as multiple times a minute, writing in generic prose familiar to anyone who has tinkered with the A.I. chatbot ChatGPT. BNN's "About Us" page featured an image of four children looking at a computer, some bearing the gnarled fingers that are a telltale sign of an A.I.-generated image.
"How easily the site and its mistakes entered the ecosystem for legitimate news highlights a growing concern: A.I.-generated content is upending, and often poisoning, the online information supply," adds The Times.

"NewsGuard, a company that monitors online misinformation, identified more than 800 websites that use A.I. to produce unreliable news content. The websites, which seem to operate with little to no human supervision, often have generic names -- such as iBusiness Day and Ireland Top News -- that are modeled after actual news outlets. They crank out material in more than a dozen languages, much of which is not clearly disclosed as being artificially generated, but could easily be mistaken as being created by human writers."
Businesses

Best Buy Is Laying Off More Employees As It Reckons With Falling Sales (theverge.com) 139

According to The Verge, Best Buy conducted another round of layoffs and job restructurings to "right size" the business in response to declining sales post-pandemic. Further layoffs and changes are expected throughout the year. From the report: The layoffs appeared to have mostly targeted in-home sales roles called designers, who would go to customers' homes to help identify products that would work in their space. It's not clear how many were let go, but designers who weren't laid off have been moved into a different, largely in-store role. Also, pay scales for a similar, existing in-store "consultant" position were revamped. Best Buy confirmed the layoffs in an email to The Verge but declined to share how many people were let go or how pay was changing. "Many of our team members were moved to new areas or roles where our customers need it most," Best Buy spokesperson Ryan Furlong told The Verge. He said some employees in Best Buy's "Design and Consult workforce" -- the collection of roles with in-store workers (called consultants) and in-home field sales positions (called designers) -- will be transitioned into a new "Premium Designer role."

Best Buy has been drastically restructuring in recent months, responding to factors like falling sales after the pandemic spiked consumer electronics spending. Best Buy CEO Corie Barry told investors in February that they should expect layoffs this year, and two months ago, mass layoffs of Geek Squad employees were reported. Barry repeated similar things during the company's first quarter earnings call in May, saying that many of Best Buy's moves to "right size" its business "are being implemented throughout this year."

The Courts

Brazil Hires OpenAI To Cut Costs of Court Battles 16

Brazil's government is partnering with OpenAI to use AI for expediting the screening and analysis of thousands of lawsuits to reduce costly court losses impacting the federal budget. Reuters reports: The AI service will flag to government the need to act on lawsuits before final decisions, mapping trends and potential action areas for the solicitor general's office (AGU). AGU told Reuters that Microsoft would provide the artificial intelligence services from ChatGPT creator OpenAI through its Azure cloud-computing platform. It did not say how much Brazil will pay for the services. AGU said the AI project would not replace the work of its members and employees. "It will help them gain efficiency and accuracy, with all activities fully supervised by humans," it said.

Court-ordered debt payments have consumed a growing share of Brazil's federal budget. The government estimated it would spend 70.7 billion reais ($13.2 billion) next year on judicial decisions where it can no longer appeal. The figure does not include small-value claims, which historically amount to around 30 billion reais annually. The combined amount of over 100 billion reais represents a sharp increase from 37.3 billion reais in 2015. It is equivalent to about 1% of gross domestic product, or 15% more than the government expects to spend on unemployment insurance and wage bonuses to low-income workers next year. AGU did not provide a reason for Brazil's rising court costs.
United States

New York Launches Mobile Driver's Licenses (theverge.com) 65

New York has launched its mobile ID program, "giving residents the option to digitize their driver's license or non-driver ID," reports The Verge. From the report: Beginning today, the New York Mobile ID app is available from Apple's App Store and Google Play. The app can be used for identity verification at airports. A physical license, permit, or non-driver ID is required to activate a mobile ID; you'll need to take a photo of the front and back with your phone during the enrollment process. The news was announced during a media briefing at LaGuardia Airport on Tuesday that included New York's and Transportation Security Administration federal security director Robert Duffy, among other speakers. Their pitch is that mobile IDs "will revolutionize the way New Yorkers protect their identities and will significantly enhance the way they get through security at airports across the nation." State officials are also emphasizing that it's a voluntary option meant for convenience.

"When you offer your mobile ID to TSA or anyone else who accepts it, you are in full control of sharing that information. They can only see the information they request to see," Schroeder said. "If you only need to prove your age, you can withhold other information that a verifier doesn't need to see." The app is designed so that your phone remains in your possession at all times -- you should never freely hand a device over to law enforcement -- and shows a QR code that can be scanned to verify your identity. Any changes to your license status such as renewals or suspensions are automatically pushed to the mobile version, and the digital ID also mirrors data like whether you're an organ donor.

For now, acceptance of mobile IDs by businesses (and the police) is completely voluntary -- and there's no deadline in place for compliance -- so it's definitely too soon to start leaving your physical one at home. But bars and other small businesses can start accepting them immediately if they install the state's verifier app. The New York Mobile ID app can be used "at nearly 30 participating airports across the country including all terminals at LaGuardia and John F. Kennedy airports," according to a press release from Governor Kathy Hochul.
New York joins a small list of states that have rolled out mobile driver's licenses, including Arizona, Colorado, Delaware, Georgia, Florida, Iowa, Louisiana, Maryland, Mississippi, Missouri, and Utah.
Crime

British Duo Arrested For SMS Phishing Via Homemade Cell Tower (theregister.com) 25

British police have arrested two individuals involved in an SMS-based phishing campaign using a unique device police described as a "homemade mobile antenna," "an illegitimate telephone mast," and a "text message blaster." This first-of-its-kind device in the UK was designed to send fraudulent texts impersonating banks and other official organizations, "all while allegedly bypassing network operators' anti-SMS-based phishing, or smishing, defenses," reports The Register. From the report: Thousands of messages were sent using this setup, City of London Police claimed on Friday, with those suspected to be behind the operation misrepresenting themselves as banks "and other official organizations" in their texts. [...] Huayong Xu, 32, of Alton Road in Croydon, was arrested on May 23 and remains the only individual identified by police in this investigation at this stage. He has been charged with possession of articles for use in fraud and will appear at Inner London Crown Court on June 26. The other individual, who wasn't identified and did not have their charges disclosed by police, was arrested on May 9 in Manchester and was bailed. [...]

Without any additional information to go on, it's difficult to make any kind of assumption about what these "text message blaster" devices might be. However, one possibility, judging from the messaging from the police, is that the plod are referring to an IMSI catcher aka a Stingray, which acts as a cellphone tower to communicate with people's handhelds. But those are intended primarily for surveillance. What's more likely is that the suspected UK device is perhaps some kind of SIM bank or collection of phones programmed to spam out shedloads of SMSes at a time.

United States

Four More States Join US Monopoly Lawsuit Against Apple (yahoo.com) 150

Four more U.S. states on Tuesday joined the Justice Department's lawsuit against Apple alleging the iPhone maker is monopolizing smartphone markets, the department said in a statement. From a report: The four states are Indiana, Massachusetts, Nevada and Washington, the Justice Department said. The original lawsuit was filed in March, and 15 states and the District of Columbia joined the lawsuit at the time. The lawsuit alleges that Apple uses its market power to get more money from consumers, developers, content creators, artists, publishers, small businesses and merchants. The civil lawsuit accuses Apple of an illegal monopoly on smartphones, maintained by imposing contractual restrictions on, and withholding critical access from, developers. The Justice Department has previously said Apple charges as much as $1,599 for an iPhone and makes a larger profit than any rival. Officials also said Apple imposes hidden charges on various business partners - from software developers to credit card companies and even rivals such as Alphabet's, Google, in ways that ultimately raise prices for consumers.
Earth

Bill Gates Moves Ahead With Nuclear Project Aimed At Revolutionizing Power Generation (apnews.com) 155

schwit1 shares a report: Bill Gates and his energy company are starting construction at their Wyoming site for a next-generation nuclear power plant he believes will "revolutionize" how power is generated. Gates was in the tiny community of Kemmerer Monday to break ground on the project. The co-founder of Microsoft is chairman of TerraPower. The company applied to the Nuclear Regulatory Commission in March for a construction permit for an advanced nuclear reactor that uses sodium, not water, for cooling. If approved, it would operate as a commercial nuclear power plant.

The site is adjacent to PacifiCorp's Naughton Power Plant, which will stop burning coal in 2026 and natural gas a decade later, the utility said. Nuclear reactors operate without emitting planet-warming greenhouse gases. PacifiCorp plans to get carbon-free power from the reactor and says it is weighing how much nuclear to include in its long-range planning. The work begun Monday is aimed at having the site ready so TerraPower can build the reactor as quickly as possible if its permit is approved. Russia is at the forefront for developing sodium-cooled reactors.

The Almighty Buck

Google Shuts Down GPay App, P2P Payments In the US (9to5google.com) 22

After announcing a shut down date in February, Google's "GPay" app has officially stopped working for users in the U.S. "Starting on June 4, GPay -- as was the name of the app on Android homescreens -- automatically signed US users out," reports 9to5Google. "Attempting to login again explains how: 'The Google Pay US app is no longer available. You can still tap to pay using the Google Wallet app.'" From the report: Additionally, Google no longer offers peer-to-peer payments in the US. You can use the Google Pay website to view and transfer your balance -- money you've received or rewards -- to a bank account after June. The focus is now on Google Wallet and digitizing everything in your physical wallet. There's no equivalent finance tracking functionality. Meanwhile, "Google Pay" still exists as the name for what you're actually using when making a physical or online purchase with your phone.
Privacy

New York Times Source Code Stolen Using Exposed GitHub Token (bleepingcomputer.com) 52

The New York Times has confirmed that its internal source code was leaked on 4chan after being stolen from the company's GitHub repositories in January 2024. BleepingComputer reports: As first seen by VX-Underground, the internal data was leaked on Thursday by an anonymous user who posted a torrent to a 273GB archive containing the stolen data. "Basically all source code belonging to The New York Times Company, 270GB," reads the 4chan forum post. "There are around 5 thousand repos (out of them less than 30 are additionally encrypted I think), 3.6 million files total, uncompressed tar."

While BleepingComputer did not download the archive, the threat actor shared a text file containing a complete list of the 6,223 folders stolen from the company's GitHub repository. The folder names indicate that a wide variety of information was stolen, including IT documentation, infrastructure tools, and source code, allegedly including the viral Wordle game. A 'readme' file in the archive states that the threat actor used an exposed GitHub token to access the company's repositories and steal the data. The company said that the breach of its GitHub account did not affect its internal corporate systems and had no impact on its operations.
The Times said in a statement to BleepingComputer: "The underlying event related to yesterday's posting occurred in January 2024 when a credential to a cloud-based third-party code platform was inadvertently made available. The issue was quickly identified and we took appropriate measures in response at the time. There is no indication of unauthorized access to Times-owned systems nor impact to our operations related to this event. Our security measures include continuous monitoring for anomalous activity."
The Internet

ISPs Ask FCC For Tax On Big Tech To Fund Broadband Networks and Discounts (arstechnica.com) 47

An anonymous reader quotes a report from Ars Technica: Internet service providers are again urging the Federal Communications Commission to impose new fees on Big Tech firms and use the money to subsidize broadband network deployment and affordability programs. If approved, the request would force Big Tech firms to pay into the FCC's Universal Service Fund (USF), which in turn distributes money to broadband providers. The request was made on June 6 by USTelecom, a lobby group for AT&T, Verizon, CenturyLink/Lumen, and smaller telcos. USTelecom has made similar arguments before, but its latest request to the FCC argues that the recent death of a broadband discount program should spur the FCC to start extracting money from Big Tech.

"Through focusing on the Big Tech companies who benefit most from broadband connectivity, the Commission will fairly allocate the burden of sustaining USF," USTelecom wrote in the FCC filing last week. The USF spends about $8 billion a year. Phone companies must pay a percentage of their revenue into the fund, and telcos generally pass those fees on to consumers with a "Universal Service" line item on telephone bills. The money is directed back to the telco industry with programs like the Connect America Fund and Rural Digital Opportunity Fund, which subsidize network construction in unserved and underserved areas. The USF also funds Lifeline program discounts for people with low incomes.

FCC Chairwoman Jessica Rosenworcel hasn't stated any intention to expand USF contributions to Big Tech. Separately, she rejected calls to impose Universal Service fees on broadband, leaving phone service as the only source of USF revenue. The USTelecom filing came in response to the FCC asking for input on its latest analysis of competition in the communications marketplace. USTelecom says the USF is relevant to the proceeding because "the Universal Service Fund is critical for maintaining a competitive marketplace and an expanded contributions base is necessary to sustain the fund." No changes to the USF would be made in this proceeding, though USTelecom's comments could be addressed in the FCC's final report.

The Almighty Buck

When Paying in Cash Costs Extra: America's Reverse ATMs Convert Money into Debit Cards (yahoo.com) 272

At a New York Yankees baseball game, one fan discovered its concession stand doesn't accept cash. "An employee directed him to a kiosk that could convert his greenbacks into plastic," reports the Wall Street Journal, where the fan, "fed $200 into the reverse ATM, which subtracted a $3.50 fee and spat out a debit card with a balance of $196.50." Paying with cash used to be a way to get a discount. These days it can often cost an extra $1 to $6 — the sort of transaction fees once limited to swiping a credit card or using an out-of-network ATM. Reverse ATMs like those at Yankee Stadium are now common at cashless venues and restaurants across the country as a way to cater to those who prefer paying in cash. People who want to pay their parking tickets, tolls, taxes or phone bills in cash, meanwhile, often learn that government agencies and businesses have outsourced that option to companies that usually charge a fee.

All that can amount to a penalty on the people who prefer paying cash. Though it is more common to buy things with cards and mobile devices, cash remains the third-most popular way to pay, accounting for 16% of all payments in 2023, according to the Federal Reserve. That's down 2 percentage points from the year before, continuing a steady decline that accelerated during the pandemic. "It's unbelievable that we actually have to tell retailers, 'This is U.S. currency and it's something that should be accepted,' " said Jonathan Alexander, executive director of the Consumer Choice in Payment Coalition, a group of businesses and nonprofits lobbying for the continued acceptance of cash.

There aren't federal laws that require businesses to accept cash. States like Colorado and Rhode Island and cities like New York banned cashless retail establishments after many stores shifted to card-only transactions to reduce the spread of Covid-19, speed up transactions and cut back on theft. In 2023, lawmakers in the House of Representatives and the Senate introduced bills requiring that businesses accept cash for all in-person purchases under $500, unless they provide devices like a reverse ATM that don't charge fees. The bills haven't passed.

Cashless businesses can be a burden for older or lower-income shoppers who are less likely to have access to digital payments. They also pose challenges for younger people who haven't yet set up credit cards or bank accounts.

The article includes the story of an 18-year-old who earned cash by babysitting, then went to a hockey game and "was charged a 50-cent fee after putting $20 into a reverse ATM...to order chicken nuggets and a bottle of water." (Others who prefer cash "say paper money is anonymous, helps them keep spending under control and is better for tips," the article adds noting that roughly six in 10 Americans use cash for at least some of their purchases, according to Pew Research Center.)

The makers of one "reverse ATM" tell the Journal that whether or not someone gets charged a fee actually depends on what state they're in — and on the preferences of the venue that installed the ATM machine.

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