Top Stories

  • Apple Inc. reduced revenue expectations for its most recent quarter as a result of poor iPhone sales in China, the first time the tech company has lowered its quarterly forecast in 16 years and an indication that a slowing Chinese economy could spark global turmoil. China is Apple’s third largest market, and the company said it expected revenue of approximately $84 billion in the quarter that ended this past weekend, down from a previous estimate of $89 billion to $93 billion. (The New York Times)
  • The U.S. Senate confirmed Democrat Geoffrey Starks to join the Federal Communications Commission and voted to approve a new five-year term for current Republican Commissioner Brendan Carr. Starks, an assistant chief for the FCC’s Enforcement Bureau, was nominated last June, and his confirmation means that the agency is now back to being fully staffed. (TechCrunch) 
  • The Federal Bureau of Investigation is looking into the theft of approximately 18,000 insurance and legal documents related to the Sept. 11, 2001, attack on the World Trade Center that were stolen by a hacker or hackers posting under the name “The Dark Overlord,” according to two people familiar with the matter. The Dark Overlord claims to have acquired emails and non-disclosure agreements sent and received from several insurance companies and law firms relating to the 9/11 attacks, and is asking interested parties to bid for them online. (Financial Times)

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The Brands That Defined 2018

Which brands won 2018, who’s on the rise, and key lessons for brands to take into the new year.

General

Tesla Reports Record Output, but Cuts Prices, and Its Shares Plunge
Neal E. Boudette, The New York Times

Tesla reported a record quarter on Wednesday, and investors responded with a sell-off. The automaker said it delivered 63,150 Model 3 sedans in the fourth quarter, 13 percent more than in the third quarter.

China lands spacecraft on the far side of the moon, a historic first
Sarah Kaplan, The Washington Post

In a first for the world, the Chinese National Space Agency successfully landed a spacecraft on the far side of the moon Thursday, a state broadcaster reported. The probe, named Chang’e 4, launched in early December — the latest in a series of missions aimed at exploring the moon and paving the way for Chinese astronauts to eventually land on the lunar surface.

Apple Woes Add to Headwinds for Stocks; Yen Surges: Markets Wrap
Yakob Peterseil, Bloomberg

U.S. equity-index futures slumped alongside stocks in Europe after Apple Inc. added to global growth concerns with a cut in its sales outlook. There were wild moves in the currency markets as the yen surged.

Intellectual Property and Antitrust

The New House Democratic Majority Will Take Antitrust Oversight Seriously
Paul Blumenthal, HuffPost

When it takes control on Thursday, the new House Democratic majority plans on serious oversight of corporate monopolies and the lax enforcement from federal antitrust agencies. It will target tech giants like Google and Facebook and health insurers Aetna, Cigna, Humana and Anthem while making sure Federal Trade Commission regulators are doing their job.

Surge in M&A activity among US local television networks
Anna Nicolaou, Financial Times

More than $13bn worth of local US television networks have changed hands in the past two years, as a loosening of Obama-era regulations on station ownership has fuelled a frenzy in dealmaking in the sector that controls how most Americans get their news.  About $8.4bn of deals were made in 2018 as of December 20, nearly double that of each of the preceding two years, according to data from BIA Advisory Services compiled for the Financial Times.

Telecom, Wireless and TV

These are the 2019 court fights that will decide the future of net neutrality
Brian Fung, The Washington Post

The battle over net neutrality is far from over. Although the Federal Communications Commission last year officially nixed the Obama-era rules governing the conduct of Internet providers such as Verizon and AT&T, the move kicked off a backlash by states, Internet activists and other supporters of the original regulations.

Tribune Media Stations Go Dark on Charter Communications Systems
Cynthia Littleton, Variety

Tribune Media stations and cabler WGN America have gone dark on Charter Communications systems in 24 markets after the sides could not come to terms on a new carriage agreement. The companies had been negotiating a new deal on and off for weeks against a Dec. 31 deadline for 33 local TV stations and WGN America.

Roku to launch subscription video channels business
Kenneth Li, Reuters

Roku Inc said on Wednesday it will begin offering premium video channels to customers for a subscription fee as it expands its free streaming video service. Premium channels from CBS Corp’s Showtime, Lionsgate-owned Starz and Noggin from Viacom Inc among others will be available to viewers of the Roku Channel, a free video service offered to owners of Roku streaming video devices.

Mobile Technology and Social Media

Canadian Court Slams Uber’s Arbitration Process
Jacquie McNish and Greg Bensinger, The Wall Street Journal

Uber Technologies Inc. lost some of its legal clout with contract drivers in Canada’s largest province after Ontario’s highest court ruled its process for arbitrating disputes were not only unlawful but “unconscionable.” A panel of three judges with the Court of Appeal for Ontario ruled Wednesday that Uber was improperly forcing its drivers in the province to resolve complaints about pay or other work issues through an international mediation process in the Netherlands.

Meal Subscription Service Freshly Hires Its New CMO From Spotify
Nat Ives, The Wall Street Journal

Mayur Gupta, vice president of growth and marketing at Spotify Technology SA, is joining the prepared-meal subscription startup Freshly as chief marketing officer, effective Jan. 7. The post had been vacant since Sharon Fox left last spring.

The 140 ‘Waymonauts’ Who Run Alphabet’s Self-Driving Car Unit
Amir Efrati, The Information

Alphabet’s Waymo self-driving car unit was the first to launch a commercial robo-taxi service, picking up and dropping off paying passengers. And its technology is considered by people in the industry to be more advanced.

Cybersecurity and Privacy

Censoring China’s Internet, for Stability and Profit
Li Yuan, The New York Times

Li Chengzhi had a lot to learn when he first got a job as a professional censor. Like many young people in China, the 24-year-old recent college graduate knew little about the 1989 Tiananmen Square crackdown.

Popular Weather App Collects Too Much User Data, Security Experts Say
Newley Purnell, The Wall Street Journal

A popular weather app built by a Chinese tech conglomerate has been collecting an unusual amount of data from smartphones around the world and attempting to subscribe some users to paid services without permission, according to a London-based security firm’s research. The free app, one of the world’s most-downloaded weather apps in Google’s Play store, is from TCL Communication Technology Holdings Ltd., of Shenzhen, China.

Hackers are taking over Chromecasts to promote PewDiePie’s channel
Julia Alexander, The Verge

Two hackers have teamed up to promote Felix “PewDiePie” Kjellberg by forcing TVs to display a message encouraging people to subscribe to his YouTube channel. The hack takes advantage of a router setting that makes smart devices, like Chromecasts and Google Homes, publicly viewable on the internet.

Artificial Intelligence Vs. the Hackers
Dina Bass, Bloomberg

Last year, Microsoft Corp.’s Azure security team detected suspicious activity in the cloud computing usage of a large retailer: One of the company’s administrators, who usually logs on from New York, was trying to gain entry from Romania. And no, the admin wasn’t on vacation.

Opinions, Editorials and Perspectives

Policy Predictions for 2019
Tal Niv, Morning Consult

Technology featured in many policy headlines in 2018. In part as a result, policy changes and proposals in 2019 will profoundly affect the environment in which developers build and ship software for years to come.

Apple’s iPhone Warning Comes Years Too Late
Shira Ovide, Bloomberg

The optimistic narrative about Apple Inc.’s iPhone business is falling apart in front of our eyes. The company on Wednesday stunningly slashed its own revenue forecast for its first fiscal quarter that ended in December.

The case for why Big Tech is violating antitrust laws
Sally Hubbard, CNN

Big Tech is behaving badly. And I’m not talking about Facebook handing over your personal data to the highest bidder or Amazon playing puppeteer in its HQ2 charade.

Russia’s anti-Western propaganda campaign is a declaration of war
Henry Miller, Washington Examiner

A U.S. Senate-commissioned analysis by a cybersecurity firm released on Dec. 17 found that Russia’s infamous troll factory, the Internet Research Agency, is conducting “modern information warfare.” Renee DiResta, the research director of the firm, described the IRA’s battle plan as a “cross-platform attack that made use of numerous features on each social network and that spanned the entire social ecosystem.”

Seizing the Opportunity to Close the Cybersecurity Skills Gap
Dave Egts, Nextgov

Albert Einstein has been quoted as saying “In the middle of difficulty lies opportunity.” By that measure, the federal government has an enormous chance to boost its workforce’s IT and cybersecurity skills.

Research Reports

Health Industry Cybersecurity Practices: Managing Threats and Protecting Patients
U.S. Department of Health and Human Services

Cyberattacks are an increasing threat across all critical infrastructure sectors. For the health sector, cyberattacks are especially concerning because these attacks can directly threaten not just the security of our systems and information but also the health and safety of American patients.

Morning Consult