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UK Plans to Probe Apple, Google’s Mobile Browser Dominance

08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)
08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)
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UK Plans to Probe Apple, Google’s Mobile Browser Dominance

08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)
08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)

Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc and Google's mobile browsers, as well as the iPhone maker's restrictions on cloud gaming through its app store.

The Competition and Markets Authority (CMA) said on Friday it was also taking enforcement action against Alphabet Inc's Google over its app store payment practices.

It said the two tech giants had an "effective duopoly" on mobile ecosystems that gave them a stranglehold on operating systems, app stores and web browsers on mobile devices.

"When it comes to how people use mobile phones, Apple and Google hold all the cards," CMA Chief Executive Andrea Coscelli said following the publication of a report on mobile ecosystems.

"As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice."

It said 97% of all mobile web browsing in Britain last year was powered by either Apple's or Google's browser engine, and in addition Apple banned alternatives to its own browser on iPhone.

The CMA said it was concerned this severely limited the potential for rival browsers to differentiate themselves from Apple's Safari, for example on features such as speed and functionality.

Apple said in a statement it had "created a safe and trusted experience users love and a great business opportunity for developers" through its ecosystem.

"We respectfully disagree with a number of conclusions reached in the report, which discount our investments in innovation, privacy and user performance - all of which contribute to why users love iPhone and iPad and create a level playing field for small developers to compete on a trusted platform," a spokesperson said.

"We will continue to engage constructively with the CMA to explain how our approach promotes competition and choice, while ensuring consumers’ privacy and security are always protected."

Google said smartphones using its Android operating system offered people and businesses more choice than any other mobile platform, and its Google Play app store has been the launchpad for millions of apps.

"We regularly review how we can best support developers and have reacted quickly to CMA feedback in the past," a Google spokesperson said.

"We will review the report and continue to engage with the CMA."

The regulator said it was also worried about Apple blocking the emergence of cloud gaming services, which allow high-quality games to be streamed rather than individually downloaded.

"By preventing this sector from growing, Apple risks causing mobile users to miss out on the full benefits of cloud gaming," it said.

The CMA said its proposed investigation would further assess its concerns and could result in legally binding orders requiring changes to be made to Apple's and Google's practices.

The consultation on the proposed the market investigation reference will close on 22 July.

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North Korean Charged in Cyberattacks on US Hospitals, NASA and Military Bases

A man who allegedly carried out cybercrimes for a North Korean military intelligence agency has been indicted in a conspiracy to hack hospitals and health care providers in several US states. - The AP
A man who allegedly carried out cybercrimes for a North Korean military intelligence agency has been indicted in a conspiracy to hack hospitals and health care providers in several US states. - The AP
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North Korean Charged in Cyberattacks on US Hospitals, NASA and Military Bases

A man who allegedly carried out cybercrimes for a North Korean military intelligence agency has been indicted in a conspiracy to hack hospitals and health care providers in several US states. - The AP
A man who allegedly carried out cybercrimes for a North Korean military intelligence agency has been indicted in a conspiracy to hack hospitals and health care providers in several US states. - The AP

A North Korean military intelligence operative has been indicted in a conspiracy to hack into American health care providers, NASA, US military bases and international entities, stealing sensitive information and installing ransomware to fund more attacks, federal prosecutors announced Thursday.

The indictment of Rim Jong Hyok by a grand jury in Kansas City, Kansas, accuses him of laundering the money through a Chinese bank and then using it to buy computer servers and fund more cyberattacks on defense, technology and government entities around the world.

The hacks on American hospitals and other health care providers disrupted the treatment of patients, officials said. He's accused of targeting 17 entities across 11 US states, including NASA and US military bases, as well as defense and energy companies in China, Taiwan and South Korea, according to The AP.

For more than three months, Rim and other members of the Andariel Unit of North Korea's Reconnaissance General Bureau had access to NASA’s computer system, extracting over 17 gigabytes of unclassified data, the indictment says. They also reached inside computer systems for defense companies in Michigan and California, as well as Randolph Air Force base in Texas and Robins Air Force base in Georgia, authorities say.

The malware enabled the state-sponsored Andariel group to send stolen information to North Korean military intelligence, furthering the country’s military and nuclear aspirations, federal prosecutors said. They've gone after details of fighter aircraft, missile defense systems, satellite communications and radar systems, a senior FBI official said.

“While North Korea uses these types of cyber crimes to circumvent international sanctions and fund its political and military ambitions, the impact of these wanton acts have a direct impact on the citizens of Kansas,” said Stephen A. Cyrus, an FBI agent based in Kansas City.

Online court records do not list an attorney for Rim, who has lived in North Korea and worked at the military intelligence agency’s offices in both Pyongyang and Sinuiju, according to court records. A reward of up to $10 million has been offered for information that could lead to him or other foreign government operatives who target critical US infrastructure.

The Justice Department has prosecuted multiple cases related to North Korean hacking, often alleging a profit-driven motive that sets the nation's cybercriminals apart from hackers in Russia and China. In 2021, for instance, the department charged three North Korean computer programmers in a broad range of hacks including a destructive attack targeting an American movie studio and the attempted theft and extortion of more than $1.3 billion from banks and companies around the world.

In this case, the FBI was alerted by a Kansas medical center that was hit in May 2021. Hackers had encrypted its files and servers, blocking access to patient files, laboratory test results and computers needed to operate hospital equipment. A Colorado health care provider was affected by the same Maui ransomware variant.

A ransom note sent to the Kansas hospital demanded Bitcoin payments valued then at about $100,000, to be sent to a cryptocurrency address.

“Otherwise all of your files will be posted in the Internet which may lead you to loss of reputation and cause the troubles for your business,” the note reads. “Please do not waste your time! You have 48 hours only! After that the Main server will double your price.”

Federal investigators said they traced blockchains to follow the money: An unnamed co-conspirator transferred the Bitcoin to a virtual currency address belonging to two Hong Kong residents before it was converted into Chinese currency and transferred to a Chinese bank. The money was then accessed from an ATM in China next to the Sino-Korean Friendship Bridge connecting China and North Korea, according to court records.

In 2022, the Justice Department said the FBI seized approximately $500,000 in ransom payments from the money laundering accounts, including the entire ransom payment from the hospital.

An arrest of Rim is unlikely, so the biggest outcome of the indictment is that it may lead to sanctions that could cripple the ability of North Korea to collect ransoms this way, which could in turn remove the motivation to conduct cyber attacks on entities like hospitals in the future, according to Allan Liska, an analyst with the cybersecurity firm Recorded Future.

“Now, unfortunately, that will force them to do more cryptocurrency theft. So it’s not going to stop their activity. But the hope is that we won’t have hospitals disrupted by ransomware attacks because they’ll know that they can’t get paid,” Liska said.

He also noted that a Chinese entity was among the victims and questioned what the country, which is an ally of North Korea, thinks of being targeted.

“China can’t be too thrilled about that,” he said.