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Google Antitrust Trial Focused on Android App Store Payments to Be Handed Off to Jury to Decide

(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)
(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)
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Google Antitrust Trial Focused on Android App Store Payments to Be Handed Off to Jury to Decide

(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)
(FILES) This illustration photograph taken on October 30, 2023 in Mulhouse, eastern France, shows figurines next to a screen displaying a logo of Google, a US multinational technology company. (Photo by SEBASTIEN BOZON / AFP)

A federal court jury is poised to begin its deliberations in an antitrust trial focused on whether Google's efforts to profit from its app store for Android smartphones have been illegally gouging consumers and stifling innovation.
Before the nine-person jury in San Francisco starts weighing the evidence Monday, the lawyers on the opposing sides of the trial will present their closing arguments in a three-year-old case filed by Epic Games, the maker of the popular Fortnite video game, The Associated Press said.
The four-week trial included testimony from both Google CEO Sundar Pichai, who sometimes seemed like a professor explaining complex topics while standing behind a lectern because of a health issue, and Epic CEO Tim Sweeney, who painted himself as a video game lover on a mission to take down a greedy tech titan.
Epic alleged that Google has been exploiting its wealth and control of the Android software that powers most of the world's smartphones to protect a lucrative payment system within its Play Store for distributing Android apps. Just as Apple does for its iPhone app store, Google collects a 15-30% commission from digital transactions completed within apps — a setup that generates billions of dollars annually in profit.
Google has staunchly defended the commissions as a way to help recoup the huge investments it has poured into building into the Android software that it has been giving away since 2007 to manufacturers to compete against the iPhone and pointed to rival Android app stores such as the one that Samsung installs on its popular smartphones as evidence of a free market.
Epic, though, presented evidence asserting the notion that Google welcomes competition as a pretense, citing the hundreds of billions of dollars it has doled out to companies such as game maker Activision Blizzard to discourage them from opening rival app stores.
The jury's verdict in the case will likely hinge on how the smartphone app market is defined. While Epic has been contending Google's Play Store is a de facto monopoly that drives up prices for consumers and discourages app makers from creating new products, Google drew a picture of a broad and fiercely competitive market that includes Apple's iPhone app store in addition to the Android alternatives to its Play Store.
Google's insistence that it competes against Apple in the distribution of apps despite the company's reliance on incompatible mobile operating systems cast a spotlight on the two companies' cozy relationship in online search — the subject of another major antitrust trial in Washington that will be decided by a federal judge after hearing final arguments in May.
The Washington trial centers on US Justice Department allegations that Google has been abusing its dominance of the online search market, partly by paying billions of dollars to be the automatic place to field queries placed on personal computers and mobile devices, including the iPhone.
Evidence presented in both the San Francisco and Washington revealed Google paid $26.3 billion in 2021 for its search to be the default choice on a variety of web browsers and smartphones, with the bulk of the money going to Apple. Without providing a precise dollar amount, Pichai confirmed Google shared 36% of its revenue from searches in the Safari browser with Apple in 2021.
Epic's lawsuit against Google's Android app store mirror another case that the video game maker brought against Apple and its iPhone app store. The Apple lawsuit resulted in a monthlong trial in 2021 amid the pandemic, with Epic losing on all its key claims.
But the Apple trial was decided by a federal judge as opposed to a jury that will hand down the verdict in the Google case.

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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.