Yazılar

US Supports Musk’s Argument in Lawsuit Against OpenAI

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U.S. antitrust regulators have weighed in on Elon Musk’s lawsuit seeking to block OpenAI’s transition into a public company, reinforcing his claims that OpenAI and Microsoft engaged in anticompetitive practices. Although the Federal Trade Commission (FTC) and the Department of Justice (DOJ) did not express a direct opinion on the lawsuit, they provided legal analysis that backs Musk’s argument ahead of a crucial hearing in Oakland, California.

Musk, who co-founded OpenAI and owns AI startup xAI, alleges that OpenAI violated antitrust laws by requiring investors to avoid funding rival artificial intelligence companies and by sharing board members with Microsoft, which is also named in the lawsuit. The lawsuit asserts that these actions harmed competition in the AI market.

In response, OpenAI dismissed the lawsuit, claiming that Musk’s allegations lack evidence and are merely harassment. The company also argued that the claims regarding board member affiliations were irrelevant, as two former Microsoft-affiliated board members—Reid Hoffman and Deannah Templeton—are no longer associated with OpenAI.

However, the FTC and DOJ emphasized that even former board members could still possess sensitive competitive information, which could have implications for antitrust law violations. The authorities also stated that a group investor boycott, as Musk alleges, could be illegal even if the organizer was not a direct investor, reinforcing Musk’s claims of anticompetitive conduct.

The FTC is currently investigating partnerships in AI, including the collaboration between OpenAI and Microsoft, to determine if there have been violations of antitrust or consumer protection laws.

Texas Sues Allstate for Collecting Driver Data Without Consent

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The state of Texas has filed a lawsuit against Allstate, accusing the insurer of illegally tracking drivers through their cell phones without their consent. Texas Attorney General Ken Paxton claims that Allstate created “the world’s largest driving behavior database” by paying mobile app developers millions of dollars to secretly incorporate tracking software into apps. The lawsuit, filed in a Texas state court near Houston, alleges that Allstate used the data to justify raising car insurance premiums, denying coverage, and selling the data to other insurers.

The tracking software, developed by Allstate’s data analytics unit Arity, was integrated into widely used apps such as Fuel Rewards, GasBuddy, Life360, and the Allstate-owned Routely starting in 2015. The complaint further asserts that Allstate has also purchased location data directly from vehicle manufacturers, including Toyota, Lexus, Mazda, and Stellantis, to track the movements of policyholders more accurately.

The lawsuit alleges that Allstate’s actions violated Texas laws on data privacy, data brokers, and unfair and deceptive practices by insurers. Texas is seeking restitution, civil fines up to $10,000 per violation, and the destruction of illegally collected data. The state also contends that Allstate profited from this practice by increasing premiums and denying coverage based on the collected data.

This lawsuit follows a similar case filed last August against General Motors, accusing the company of collecting driver data from over 14 million vehicles and selling it to insurers and other businesses without drivers’ consent.

 

US Judge Finds Israel’s NSO Group Liable for Hacking in WhatsApp Lawsuit

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A U.S. judge has ruled in favor of Meta Platforms’ WhatsApp in a lawsuit against Israel’s NSO Group, finding the company liable for exploiting a vulnerability in WhatsApp’s messaging app to install spyware, enabling unauthorized surveillance. U.S. District Judge Phyllis Hamilton of Oakland, California, granted WhatsApp’s motion and found NSO liable for hacking and breach of contract. The case will now proceed to trial, but only to determine the amount of damages.

WhatsApp’s head, Will Cathcart, hailed the ruling as a victory for privacy, stating that spyware companies could no longer hide behind immunity or avoid accountability for unlawful actions. A spokesperson for WhatsApp expressed their gratitude for the decision, reaffirming the company’s commitment to protecting users’ private communications.

Cybersecurity experts, including John Scott-Railton from Citizen Lab, welcomed the ruling as a landmark decision with significant consequences for the spyware industry. He noted that the ruling clarifies that NSO Group is responsible for violating numerous laws, as the company could no longer evade accountability for its actions.

WhatsApp sued NSO in 2019, accusing it of using a vulnerability to access WhatsApp’s servers and install Pegasus spyware on users’ devices. The lawsuit claimed the intrusion enabled the surveillance of 1,400 individuals, including journalists, human rights activists, and dissidents. NSO had defended itself by arguing that its technology was intended to help law enforcement and intelligence agencies combat crime and terrorism.

Despite this defense, NSO failed in its attempt to secure “conduct-based immunity,” which protects foreign officials acting in their official capacity. The 9th U.S. Circuit Court of Appeals upheld the decision in 2021, and the U.S. Supreme Court declined to hear NSO’s appeal, allowing the lawsuit to move forward.