Business Updates: Journalists at The Atlantic Unionize
French regulators said the settlement was the first time a government authority had taken aim at Google’s online advertising infrastructure.,
Apple once again took aim at the vast digital-advertising industry on Monday and unveiled a number of changes to protect iPhones users’ privacy and strengthen its position as a gatekeeper between consumers and the rest of the digital industry.
Apple said that new iPhone software scheduled for this fall, called iOS 15, would add a so-called app privacy report that tells people what data apps are collecting about them. The report will display when an app has gained access to sensitive parts of the device, such as the photo album, contacts list or microphone. Google announced a similar feature for Android devices last month.
Apple also said its Mail app would now better protect the identities of users from people who send them emails and would block the ability of marketers to track whether a person opens an email.
Apple also showed off a new service that hides users’ internet traffic from internet providers, much like the virtual private network, or V.P.N., services sold by a number of other companies.
The technology routes a user’s internet traffic through computer servers designed to conceal the user’s identity and location. Such technology has been used to get around government firewalls that censor the internet, such as in China, and it’s unclear how Apple’s service would work there. The service would be available to people who pay extra for Apple’s iCloud data storage.
Apple’s privacy push has put the company at odds with some big rivals, most notably Facebook, that rely on collecting data about people to better target ads. Despite protests from some corners of Silicon Valley, Monday’s announcements show that Apple has doubled down on privacy features.
Yet the company’s public branding on privacy is also undermined by its business in China, where it is putting its Chinese customers’ data at risk and aiding the government’s censorship operation to placate authorities there, The New York Times reported last month.
On Monday, Apple also announced new features designed to make the iPhone the only item someone needs to carry with them when leaving home. Apple has already allowed people to pay for items in stores and get through subway turnstiles with iPhones. Now it is trying to move government identification cards onto the devices. Apple said people could soon scan their driver’s licenses to use digital versions of the IDs, which will be accepted in some participating states and airport security checkpoints in the United States.
Apple is also trying to replace physical keys. The company said it was making it easier to use digital keys to unlock doors at homes, offices and hotels. Hyatt Hotels plans to use the technology at more than 1,000 properties beginning in the fall, Apple said.
Apple is also greatly expanding FaceTime, its videoconferencing service. For more than a decade, FaceTime was an app exclusive to Apple users. But it soon will be opened to web browsers, which will also allow non-Apple devices like Android phones to participate in FaceTime calls.
Apple is adding a host of features that FaceTime callers can use together in a group session. A group on a video call will be able to listen to music or stream movies together. They can also use some apps together — like a delivery app to take turns adding food to an order before meeting up.
The new mobile operating system will also add a text-recognition ability to the iPhone camera, allowing a photo of handwritten text to be automatically transcribed into typed text or a photo of a billboard with a phone number to enable you to dial that phone number.
The Justice Department said on Monday that it had recovered much of the ransom paid to hackers last month who shut down the computer systems of Colonial Pipeline, a critical pipeline operator.
Colonial had paid a ransom worth roughly $4.4 million in Bitcoin to the Russian hacking group DarkSide after it used ransomware, a form of malicious software, to hold up the company’s business networks in May. That payment cleared the way for Colonial to resume pumping fuel through its pipeline, which stretches from Texas to New Jersey and accounts for nearly half of all transport fuels that flow up the East Coast.
The seizure on Monday marked a first-of-its-kind effort by a new Justice Department task force to hijack a cybercriminal group’s profits through a hack of its Bitcoin wallet. The Justice Department said that it had seized 63.7 Bitcoins, currently valued at about $2.3 million. (The value of a Bitcoin has dropped over the past month.)
“Earlier today, the Department of Justice has found and recaptured the majority of the ransom Colonial paid to the DarkSide network,” the deputy attorney general, Lisa O. Monaco, said at a news conference Monday.
“Using technology to hold businesses, and even whole cities, hostage for profit is decidedly a 21st-century challenge, but the old adage, ‘follow the money,’ still applies,” Ms. Monaco said.
Officials said that they identified a virtual currency account, often referred to as a “wallet,” that DarkSide had use to collect payment from one of its ransomware victims, and that a magistrate judge in the Northern District of California had granted a warrant to seize funds from the wallet earlier in the day.
The New York Times had earlier reported that Colonial Payment’s ransom payout — as well as that of a German company, Brenntag — had been removed from DarkSide’s Bitcoin wallet, though it was not clear who had orchestrated the move.
Colonial shut down its pipeline in response to the cyberattack, which included hackers threatening to release the company’s data to the public, setting off panic buying and a fuel shortage that sent gas prices soaring and forced airlines to make extra fuel stops.
Weeks after DarkSide attacked Colonial, hackers associated with a Russian hacking group called Revil, used ransomware in an attempt to extort money from JBS, the world’s largest meat processor. The attack forced JBS to shutter nine U.S. beef plants and disrupted poultry and pork plants. Cybersecurity researchers said that DarkSide is an offshoot of Revil.
The back-to-back attacks showed that hackers who once focused on stealing corporate secrets have begun to disrupt critical infrastructure. And the episodes raised questions about whether U.S. corporations could protect themselves against cyberthreats.
The White House held emergency meetings to address the attack, which led the Biden administration to make a series of announcements related to cyberattacks and ransomware.
The Atlantic intends to voluntarily recognize a newly formed union of editorial workers, the magazine’s editor in chief, Jeffrey Goldberg, said Monday.
Staff members announced on Monday morning that they were forming a union affiliated with the NewsGuild, which also represents employees at The New York Times and many other outlets. The union will cover about 85 employees, including writers, editor, fact checkers and producers.
The Atlantic Union said in a statement posted on Twitter that although the magazine was thriving, “the American press — its freedoms, its stability and its future — is at a precarious moment.”
“We believe that we are stronger collectively than individually, and that the future of journalism is brighter when its workers are united,” the statement said.
Mr. Goldberg said in a note to staff on Monday that the company had received the request to recognize the union that morning.
“I’m writing to let you know that we have decided to work with the organizers of this effort on an agreement to voluntarily recognize the Atlantic editorial bargaining unit,” Mr. Goldberg wrote in the email. “We look forward to meeting together to chart a path forward.”
The Atlantic Union is the latest in a recent spate of organizing efforts across digital media. Journalists at Insider and tech workers at The New York Times announced in April that they had formed unions with the NewsGuild. The New York Times leadership has said it will not voluntarily recognize the tech workers’ union, pushing the matter to a formal vote with the National Labor Relations Board.
A group of investors, including the Blackstone Group and the Carlyle Group, agreed to buy the medical supplies provider Medline Industries for more than $30 billion, the company announced on Saturday. It’s the biggest leveraged buyout since the 2008 financial crisis — and a sign that private equity firms are ready to open their wallets for more (and bigger) deals.
Buyout firms that take over companies using lots of debt are now sitting on $1.6 trillion in so-called dry powder, according to Preqin, or capital committed by investors to private equity funds that’s not yet spent. These firms have also continued fund-raising at a healthy pace.
That has filled private equity’s war chests with cash that managers are increasingly under pressure to spend — or risk the ire of investors who don’t want their money just sitting around. Some of those investors have also wanted to invest directly in deals alongside the private equity firms, in hopes of capturing some of the same investment returns that the buyout firms enjoy.
That has led to a revival of strategies used before the financial crisis. Beyond the growing size of leveraged buyouts, private equity shops are teaming up to buy targets, a practice that had fallen out of favor (and ran into concerns about potential antitrust violations). That said, the Medline deal isn’t exactly like the club deals of before: It involves less debt than previous buyouts, and the private equity buyers are keeping the current management.
Medline, which is based in Northfield, Ill., makes a wide variety of medical supplies for hospitals and other health care centers. The company, which collected $17.5 billion in revenue last year, has been privately held for decades and will continue to count its founding Mills family as its largest shareholder after the leveraged buyout.
Finance leaders from the Group of 7 countries unveiled a broad agreement on Saturday that aims to stop large multinational companies from seeking out tax havens and force them to pay more of their income to governments.
The agreement aims for a new global minimum tax rate of at least 15 percent that companies would have to pay regardless of where they locate their headquarters.
Some of the largest multinational companies — technology giants like Amazon, Facebook and Google as well as other big global businesses — may also have to pay taxes to countries based on where their goods or services are sold, regardless of whether they have a physical presence in that nation.
To prevent individual countries from imposing dozens of digital taxes around the world, the agreement would apply a new tax to large businesses with a profit margin of at least 10 percent. The tax would be applied to at least 20 percent of profit exceeding that 10 percent margin “for the largest and most profitable multinational enterprises.”
Huge sums of money are at stake. A report this month from the EU Tax Observatory estimated that a 15 percent minimum tax would yield an additional 48 billion euros, or $58 billion, a year. The Biden administration projected in its budget last month that the new global minimum tax system could help bring in $500 billion in tax revenue over a decade to the United States.
Treasury Secretary Janet Yellen, who traveled on Friday to the G7 meeting in London to win support for the landmark tax agreement, defended the plan on Sunday. “I honestly don’t think there’s going to be a significant impact on corporate investment,” she said.
Next month, the Group of 7 countries must sell the concept to finance ministers from the broader Group of 20 nations that are meeting in Italy. If that is successful, officials hope that a final deal can be signed by Group of 20 leaders when they reconvene in October.
Stocks were mixed on Monday, with the S&P 500 ticking down less than 0.1 percent and the Nasdaq composite gaining 0.5 percent.
Biogen shares rose 40 percent after the Food and Drug Administration approved an Alzheimer’s drug manufactured by the company. Biogen is expected to reap billions of dollars from the drug.
A measure of investor confidence in the eurozone for June, published by Sentix, jumped to its highest reading since March 2018. Economists at Pantheon Macroeconomics noted that most of the increase was because of an improving assessment of the current situation of the region’s economy, pointing out that future expectations dipped slightly.
European indexes were mostly higher. The Stoxx Europe 600 rose 0.2 percent. Asian indexes were mixed. The Hang Seng in Hong Kong fell 0.5 percent and the Nikkei 225 in Japan rose 0.3 percent.
Over the weekend, finance leaders from the Group of 7 countries agreed to back a new global minimum tax rate of at least 15 percent that companies would have to pay regardless of where they were based. The tax is expected to affect some large technology companies. The technology-composite Nasdaq was slightly lower at the start of trading.
The 10-year yield on U.S. Treasury notes rose to 1.57 percent, reversing some of Friday’s decline, when the yield dropped seven basis points, or 0.07 percent, after May’s jobs report by the Labor Department showed less hiring than analysts expected. On Friday, investors pulled back on expectations about how soon the Federal Reserve might consider reducing its monetary stimulus.
On Sunday, Treasury Secretary Janet L. Yellen said “a slightly higher interest rate environment” would “actually be a plus for society’s point of view and the Fed’s point of view,” Bloomberg reported.
Oil prices fell. Futures on West Texas Intermediate, the U.S. crude benchmark, declined 0.5 percent to $69.23 a barrel.
Jeff Bezos announced on Monday that he would be on board when his rocket company, Blue Origin, conducts its first human spaceflight next month. He said his brother Mark Bezos would join him on the flight. Blue Origin is also auctioning off a passenger seat on the New Shepard space capsule, which is set to take off on July 20. Bidding has reached almost $3 million with nearly 6,000 participants from 143 countries, the company said. “Ever since I was five years old, I’ve dreamed of traveling to space,” Mr. Bezos said on Instagram, calling the trip, “The greatest adventure, with my best friend.”
Bre Starr, a 34-year-old pizza delivery driver who has been out of work for more than a year, will be among the first to lose her jobless benefits in the next few weeks. That’s because Ms. Starr lives in Iowa, where the governor has decided to withdraw from all federal pandemic-related jobless assistance on June 12.
Iowa is one of 25 states, all led by Republicans, that have recently decided to halt some or all emergency benefits months ahead of schedule. With a U.S. Labor Department report on Friday showing that job growth fell below expectations for the second month in a row, Republicans stepped up their argument that pandemic jobless relief is hindering the recovery, The New York Times’s Patricia Cohen and Sydney Ember report.
The assistance, renewed in March and funded through Sept. 6, doesn’t cost the states anything. But business owners and managers have argued that the income, which enabled people to pay rent and stock refrigerators when much of the economy shut down, is now dissuading them from applying for jobs.
“I’m a Type 1 diabetic, so it’s really important for me to stay safe from getting Covid,” Ms. Starr said, explaining that she was more prone to infection. “I know that for myself and other people who are high risk, we cannot risk going back into the work force until everything is good again.”
Most economists say there is no clear, single explanation yet for the difficulty that some employers are having in hiring. Government relief may play a role in some cases, but so could a lack of child care, continuing fears about infection, paltry wages, difficult working conditions and normal delays associated with reopening a mammoth economy.
The particular complaints that government benefits are sapping the desire to work have, nonetheless, struck a chord among Republican political leaders.
At least 12,000 people descended on Miami on Friday and Saturday, flocking to the largest Bitcoin conference in the world and the first major in-person business conference since the pandemic began.
Bitcoin 2021, an occasional gathering of digital currency enthusiasts run by a magazine named after the cryptocurrency, heralded the receding of the pandemic, with comfortingly familiar and mundane elements of a business conference: the branded plastic sunglasses, brightly colored sponsor booths, lanyards and panels.
The exuberance of being in person, indoors, in a crowd for the first time in more than a year was electric, reports Erin Griffith for The New York Times. Everyone hugged, no one masked. The money zipped between digital wallets. The conference swag included neon fanny packs, festival bracelets and a Lamborghini car. The jargon — stablecoin, peer-to-peer, private key — flowed. So did the liquor.
It was another sign that the often absurd world of digital currencies was inching its way toward mainstream acceptance, or at least mainstream curiosity. Since late last year, Bitcoin has been on a wild ride, setting price records. Even a plunge from a high of $64,000 in April to $36,000 now did not dampen spirits. They’re BTD — buying the dip. Wall Street bankers, institutional investors and Senator Cynthia Lummis, a Republican from Wyoming, all came to Miami.
There was a reason we were in Miami and not New York, San Francisco or Los Angeles. The city has gone full crypto.
Bitcoin A.T.M.s sprinkled the Wynwood neighborhood. A cryptocurrency exchange called FTX recently bought the naming rights to the Miami Heat’s arena. Miami’s mayor, Francis Suarez, announced this year that the city would accept tax payments in cryptocurrency, let its employees collect salaries with it and explore holding some on its balance sheet.
Onstage, Tyler and Cameron Winklevoss, entrepreneurs and cryptocurrency billionaires, preached to the choir. Cameron Winklevoss wore a T-shirt with a picture of the Federal Reserve building captioned “Rage Against the Machine,” a reference to how cryptocurrency was not controlled by a central government or bank.
Later, Jack Dorsey, chief executive of Twitter and the payments company Square, offered his own endorsement. “If I were not at Square or Twitter, I would be working on Bitcoin,” he said.
On Saturday, the conference played a video of Nayib Bukele, the president of El Salvador, announcing a bill to make Bitcoin legal tender in the country. The audience leapt to a roaring standing ovation.
Today in the On Tech newsletter, Shira Ovide shares what you need to know about the dispute between some developers and Apple, where the tech giant and the unhappy app makers both have a point, and her suggestions for reaching app peace.