/features

  • The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies - Bloomberg
    https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-compa

    The attack by Chinese spies reached almost 30 U.S. companies, including Amazon and Apple, by compromising America’s technology supply chain, according to extensive interviews with government and corporate sources.

    […]

    There are two ways for spies to alter the guts of computer equipment. One, known as interdiction, consists of manipulating devices as they’re in transit from manufacturer to customer. This approach is favored by U.S. spy agencies, according to documents leaked by former National Security Agency contractor Edward Snowden. The other method involves seeding changes from the very beginning.

    One country in particular has an advantage executing this kind of attack: China, which by some estimates makes 75 percent of the world’s mobile phones and 90 percent of its PCs.

    #espionnage #Chine #États-Unis #informatique

  • A Maritime Revolution Is Coming, and No One’s in the Wheelhouse - Bloomberg
    https://www.bloomberg.com/news/features/2018-05-28/boat-drones-propel-one-of-china-s-hottest-startups


    A technician inspects an Oceanalpha drone on a pond before a test in Zhuhai, China.
    Photographer: Qilai Shen/Bloomberg

    In the vast, freezing Ross Sea, China’s “Snow Dragon” icebreaker needed to find a safe anchorage before it could begin its mission to set up China’s fifth Antarctic research station. The solution was to deploy one of Zhang Yunfei’s freezer-tested boat drones to map the ocean floor. 

    For Zhang, it was the latest in a string of government contracts — from surveying Tibetan lakes to testing river pollution — that have helped him turn a university project into China’s largest unmanned surface vessel company, one that has fired the interest of some of China’s biggest venture capitalists. In a pending round of funding, Oceanalpha Co. Ltd. may be valued at $780 million — about 40 times revenue — despite never having turned a profit.
    […]
    The big prize is cargo. Zhang has a new partnership with Wuhan University of Technology, China’s Classification Society and Zhuhai municipal government that will use artificial intelligence to direct autonomous container vessels.

    There will be a huge revolution in the maritime industry within three years,” Zhang said. “Cargo ships will be autonomous before cars.

    The project, called #Cloudrift — a reference to the Chinese legend of the monkey king, who could summon a cloud on which he traveled — is racing against rivals to build an unmanned cargo ship this year. Norway has created a test area for pilotless vessels in the Trondheim Fjord in a joint effort by the Norwegian University of Science Technology and companies including Rolls Royce.


    Oceanalpha’s drone with the “Snow Dragon” icebreaker in Antarctica.
    Source: Oceanalpha

  • YouTube’s Plan to Clean Up the Mess That Made It Rich
    https://www.bloomberg.com/news/features/2018-04-26/youtube-may-be-a-horror-show-but-no-one-can-stop-watching

    Extremist propaganda, dangerous hoaxes, videos of tasered rats—the company is having its worst year ever. Except financially. Susan Wojcicki, the chief executive officer of YouTube, was in a meeting on the second floor of her company’s headquarters in San Bruno, Calif., when she heard the first gunshot. It came from outside ; more followed. Some of her employees ran for the exits ; others barricaded themselves in conference rooms. Those eating lunch on the outdoor patio hid under the tables. (...)

    #Google #YouTube #algorithme #manipulation #bénéfices #marketing

  • 2014 :
    #Goldman_Sachs menacé d’un recours collectif pour #discrimination sexuelle
    https://www.lesechos.fr/24/10/2014/lesechos.fr/0203886416662_goldman-sachs-menace-d-un-recours-collectif-pour-discriminati

    Le juge devrait donner sa décision sur la légitimité d’un recours collectif d’ici la fin de l’année. S’il l’autorise, cela sera beaucoup plus dommageable pour Goldman Sachs.

    2018 : la décision du juge est favorable

    Wall Street’s Biggest Gender Lawsuit Is 13 Years in the Making - Bloomberg
    https://www.bloomberg.com/news/features/2018-05-03/wall-street-s-biggest-gender-lawsuit-is-13-years-in-the-making

    A federal judge in New York had ruled that she and three other women who claim there’s systematic gender discrimination at Goldman can now represent as many as 2,300 other current and former employees.

    #wall_street

  • Ad Scammers Need Suckers, and Facebook Helps Find Them - Bloomberg
    https://www.bloomberg.com/news/features/2018-03-27/ad-scammers-need-suckers-and-facebook-helps-find-them

    They’d come to mingle with thousands of affiliate marketers—middlemen who buy online ad space in bulk, run their campaigns, and earn commissions for each sale they generate. Affiliates promote some legitimate businesses, such as Amazon.com Inc. and EBay Inc., but they’re also behind many of the shady and misleading ads that pollute Facebook, Instagram, Twitter, and the rest of the internet.
    Robert Gryn says users of his tracking software place about $400 million worth of ads a year on Facebook.
    Photographer: Angie Smith for Bloomberg Businessweek

    The top affiliates—virtually all of them young men—assemble a few times a year to learn the latest schemes and trade tips about gaming the rules set by social networks and search platforms. They think of themselves as kin to the surfers-slash-bank-robbers of the 1991 movie Point Break, just more materialistic, jetting from nightclub to Lamborghini race while staying a step ahead of the authorities. One San Diego crew took in $179 million before getting busted last year by the Federal Trade Commission for violating three laws governing online conduct.

    It was hard to believe that Facebook would cozy up to disreputable advertisers in mid-2017 as it was under intense scrutiny from lawmakers and the media over revelations that Russian trolls had used the platform to influence the 2016 presidential election. Officially, the Berlin conference was for aboveboard marketing, but the attendees I spoke to dropped that pretense after the mildest questioning. Some even walked around wearing hats that said “farmin’,” promoting a service that sells fake Facebook accounts.

    Granted anonymity, affiliates were happy to detail their tricks. They told me that Facebook had revolutionized scamming. The company built tools with its trove of user data that made it the go-to platform for big brands. Affiliates hijacked them. Facebook’s targeting algorithm is so powerful, they said, they don’t need to identify suckers themselves—Facebook does it automatically. And they boasted that Russia’s dezinformatsiya agents were using tactics their community had pioneered.

    Tiens, un exemple encore de pratiques qui commencent avec le commerce et migrent vers la surveillance politique.

    The basic process isn’t complicated. For example: A maker of bogus diet pills wants to sell them for $100 a month and doesn’t care how it’s done. The pill vendor approaches a broker, called an affiliate network, and offers to pay a $60 commission per sign-up. The network spreads the word to affiliates, who design ads and pay to place them on Facebook and other places in hopes of earning the commissions. The affiliate takes a risk, paying to run ads without knowing if they’ll work, but if even a small percentage of the people who see them become buyers, the profits can be huge.

    Affiliates once had to guess what kind of person might fall for their unsophisticated cons, targeting ads by age, geography, or interests. Now Facebook does that work for them. The social network tracks who clicks on the ad and who buys the pills, then starts targeting others whom its algorithm thinks are likely to buy. Affiliates describe watching their ad campaigns lose money for a few days as Facebook gathers data through trial and error, then seeing the sales take off exponentially. “They go out and find the morons for me,” I was told by an affiliate who sells deceptively priced skin-care creams with fake endorsements from Chelsea Clinton.

    Gryn found the affiliates at a moment when they were discovering social media. They’d begun applying tricks on Facebook that had been invented by email spammers, who’d in turn borrowed the tactics of fax spammers in the 1980s and ’90s. New forms of media have always been hijacked by misleading advertising: 19th century American newspapers were funded in part by dishonest patent medicine ads. Within days of Abraham Lincoln’s inauguration, the makers of Bellingham’s Onguent were placing ads claiming the president had used their product to grow his trendy whiskers.

    #Facebook #Publicité #Arnaques

  • How Facebook Helps Shady Advertisers Pollute the Internet | Zeke Faux, Bloomberg, 27/03/2018
    https://www.bloomberg.com/news/features/2018-03-27/ad-scammers-need-suckers-and-facebook-helps-find-them

    It was a Davos for digital hucksters. One day last June, scammers from around the world gathered for a conference at a renovated 19th century train station in Berlin. All the most popular hustles were there: miracle diet pills, instant muscle builders, brain boosters, male enhancers. The “You Won an iPhone” companies had display booths, and the “Your Computer May Be Infected” folks sent salesmen. Russia was represented by the promoters of a black-mask face peel, and Canada made a showing with bot-infested dating sites.

    They’d come to mingle with thousands of affiliate marketers—middlemen who buy online ad space in bulk, run their campaigns, and earn commissions for each sale they generate. Affiliates promote some legitimate businesses, such as Amazon.com Inc. and EBay Inc., but they’re also behind many of the shady and misleading ads that pollute Facebook, Instagram, Twitter, and the rest of the internet.

    The top affiliates—virtually all of them young men—assemble a few times a year to learn the latest schemes and trade tips about gaming the rules set by social networks and search platforms. They think of themselves as kin to the surfers-slash-bank-robbers of the 1991 movie Point Break, just more materialistic, jetting from nightclub to Lamborghini race while staying a step ahead of the authorities. One San Diego crew took in $179 million before getting busted last year by the Federal Trade Commission for violating three laws governing online conduct.

    #Facebook #publicité

  • Hyperdrive (“The Cartographic Arms Dealers”) - Bloomberg
    https://www.bloomberg.com/news/features/2018-02-21/nobody-wants-to-let-google-win-the-war-for-maps-all-over-again

    self-driving maps are far more demanding than older digital ones, prompting huge investments across Detroit, Silicon Valley and China. “An autonomous vehicle wants that to be as precise, accurate and up-to-date as possible,” said Bryan Salesky, who leads Argo AI LLC, a year-old startup backed by a $1 billion investment by Ford. The “off-the-shelf solution doesn’t quite exist.”

    #autopilote #cartographie

  • Facebook Really Wants You to Come Back
    https://www.bloomberg.com/news/features/2018-01-31/facebook-really-wants-you-to-come-back

    The social network is getting aggressive with people who don’t log in often, working to keep up its engagement numbers. It’s been about a year since Rishi Gorantala deleted the Facebook app from his phone, and the company has only gotten more aggressive in its emails to win him back. The social network started out by alerting him every few days about friends that had posted photos or made comments—each time inviting him to click a link and view the activity on Facebook. He rarely did. Then, (...)

    #Facebook #algorithme #manipulation #domination #publicité #marketing

    ##publicité

  • Venezuelan #Pirates Rule the Most Lawless Market on Earth - Bloomberg
    https://www.bloomberg.com/news/features/2018-01-30/venezuelan-pirates-rule-the-most-lawless-market-on-earth

    #Venezuela and the island of Trinidad are separated by only 10 miles of water and bound together by the most lawless market on Earth today. Playing out at sea and on the coasts, it is a roiling arbitrage—of food, diapers, weapons, drugs, and women—between the desperate and the profit-minded. Government is absent, bandits are everywhere, and participating can cost you your life. But not participating can also mean death, because the official economy of Venezuela is in a state of collapse, and the people are starving.

    #Golfe_de_Paria #Trinidad
    #Bocas_del_Dragón #Boca_del_Serpiente
    #piraterie

    • But the fishing industry withered under Chávez, and then under Nicolás Maduro, who succeeded him as president in 2013. The warehouse in Güiria burned down and was never rebuilt; the ship repair facilities were shuttered after a few years in government hands. Venezuelan ships not seized by the government were quickly reflagged in Nicaragua, Panama, and Ecuador, and much of the government fleet now lies in port, awaiting repairs and scarce spare parts. From 554,000 tons of fish caught in 1997, the year before Chávez started his revolution, the catch in 2015 had fallen almost 60 percent, to 226,600 tons, according to the Caracas-based Foundation for Sustainable and Responsible Tuna Fisheries.

      #pêche #Venezuela #nationalisation (qui a possiblement tout pété)

  • How Duterte Turned Facebook Into a Weapon—With Help From Facebook - Bloomberg
    https://www.bloomberg.com/news/features/2017-12-07/how-rodrigo-duterte-turned-facebook-into-a-weapon-with-a-little-help-from

    Since being elected in May 2016, Duterte has turned Facebook into a weapon. The same Facebook personalities who fought dirty to see Duterte win were brought inside the Malacañang Palace. From there they are methodically taking down opponents, including a prominent senator and human-rights activist who became the target of vicious online attacks and was ultimately jailed on a drug charge.

    And then, as Ressa began probing the government’s use of social media and writing stories critical of the new president, the force of Facebook was turned against her.

    #Philippines #médias #facebook #politique

  • How to Launder $1 Billion of Iranian Oil - Bloomberg
    https://www.bloomberg.com/news/features/2017-12-08/how-to-launder-1-billion-of-iranian-oil

    It wasn’t until he appeared in court on Nov. 29 that the full story surfaced. The FBI had removed him from jail to protect him from threats, keeping him under guard at an undisclosed location. By then, Zarrab had secretly pleaded guilty to all the charges against him and agreed to help the U.S. government. As part of his deal, prosecutors offered him and his family witness protection.

    Over more than a week on the witness stand, Zarrab spun a stunning tale of corruption and double-dealing that reached the highest levels of the Turkish government, all the way up to President Recep Tayyip Erdogan. The case has further soured Washington and Ankara’s already strained relationship, revealing how America’s longtime ally may have helped Iran undermine sanctions even as Turkey received millions of dollars in U.S. aid. Nine people have been charged, including Turkey’s former economy minister and past chief executive officer of Halkbank, a major Turkish bank owned by the government. Of them, only one—a senior Halkbank executive named Mehmet Hakan Atilla, Zarrab’s former co-defendant—is on trial. The others have all avoided U.S. arrest.

    In court, Zarrab laid out how he paid tens of millions of dollars in bribes to Turkish government officials and banking executives to win their assistance—and cover—for the money laundering operation. He dropped a bombshell on his second day of testimony, when he implicated Erdogan as part of the scheme, saying he was told Turkey’s president gave orders that two Turkish banks be included in the plot.

    #Turquie #Iran

  • Uber Pushed the Limits of the Law. Now Comes the Reckoning - Bloomberg
    https://www.bloomberg.com/news/features/2017-10-11/uber-pushed-the-limits-of-the-law-now-comes-the-reckoning

    The ride-hailing company faces at least five U.S. probes, two more than previously reported, and the new CEO will need to dig the company out of trouble.

    Illustration: Maria Nguyen
    By Eric Newcomer
    October 11, 2017, 10:11 AM GMT+2

    Shortly after taking over Uber Technologies Inc. in September, Dara Khosrowshahi told employees to brace for a painful six months. U.S. officials are looking into possible bribes, illicit software, questionable pricing schemes and theft of a competitor’s intellectual property. The very attributes that, for years, set the company on a rocket-ship trajectory—a tendency to ignore rules, to compete with a mix of ferocity and paranoia—have unleashed forces that are now dragging Uber back down to earth.

    Uber faces at least five criminal probes from the Justice Department—two more than previously reported. Bloomberg has learned that authorities are asking questions about whether Uber violated price-transparency laws, and officials are separately looking into the company’s role in the alleged theft of schematics and other documents outlining Alphabet Inc.’s autonomous-driving technology. Uber is also defending itself against dozens of civil suits, including one brought by Alphabet that’s scheduled to go to trial in December.

    “There are real political risks for playing the bad guy”
    Some governments, sensing weakness, are moving toward possible bans of the ride-hailing app. London, one of Uber’s most profitable cities, took steps to outlaw the service, citing “a lack of corporate responsibility” and specifically, company software known as Greyball, which is the subject of yet another U.S. probe. (Uber said it didn’t use the program to target officials in London, as it had elsewhere, and will continue to operate there while it appeals a ban.) Brazil is weighing legislation that could make the service illegal—or at least treat it more like a taxi company, which is nearly as offensive in the eyes of Uber.

    Interviews with more than a dozen current and former employees, including several senior executives, describe a widely held view inside the company of the law as something to be tested. Travis Kalanick, the co-founder and former CEO, set up a legal department with that mandate early in his tenure. The approach created a spirit of rule-breaking that has now swamped the company in litigation and federal inquisition, said the people, who asked not to be identified discussing sensitive matters.

    Kalanick took pride in his skills as a micromanager. When he was dissatisfied with performance in one of the hundreds of cities where Uber operates, Kalanick would dive in by texting local managers to up their game, set extraordinary growth targets or attack the competition. His interventions sometimes put the company at greater legal risk, a group of major investors claimed when they ousted him as CEO in June. Khosrowshahi has been on an apology tour on behalf of his predecessor since starting. Spokespeople for Kalanick, Uber and the Justice Department declined to comment.

    Kalanick also defined Uber’s culture by hiring deputies who were, in many instances, either willing to push legal boundaries or look the other way. Chief Security Officer Joe Sullivan, who previously held the same title at Facebook, runs a unit where Uber devised some of the most controversial weapons in its arsenal. Uber’s own board is now looking at Sullivan’s team, with the help of an outside law firm.

    Salle Yoo, the longtime legal chief who will soon leave the company, encouraged her staff to embrace Kalanick’s unique corporate temperament. “I tell my team, ‘We’re not here to solve legal problems. We’re here to solve business problems. Legal is our tool,’” Yoo said on a podcast early this year. “I am going to be supportive of innovation.”

    From Uber’s inception, the app drew the ire of officials. After a couple years of constant sparring with authorities, Kalanick recognized he needed help and hired Yoo as the first general counsel in 2012. Yoo, an avid tennis player, had spent 13 years at the corporate law firm Davis Wright Tremaine and rose to become partner. One of her first tasks at Uber, according to colleagues, was to help Kalanick answer a crucial question: Should the company ignore taxi regulations?

    Around that time, a pair of upstarts in San Francisco, Lyft Inc. and Sidecar, had begun allowing regular people to make money by driving strangers in their cars, but Uber was still exclusively for professionally licensed drivers, primarily behind the wheel of black cars. Kalanick railed against the model publicly, arguing that these new hometown rivals were breaking the law. But no one was shutting them down. Kalanick, a fiercely competitive entrepreneur, asked Yoo to help draft a legal framework to get on the road.

    By January 2013, Kalanick’s view of the law changed. “Uber will roll out ridesharing on its existing platform in any market where the regulators have tacitly approved doing so,” Kalanick wrote in a since-deleted blog post outlining the company’s position. Uber faced some regulatory blowback but was able to expand rapidly, armed with the CEO’s permission to operate where rules weren’t being actively enforced. Venture capitalists rewarded Uber with a $17 billion valuation in 2014. Meanwhile, other ride-hailing startups at home and around the world were raising hundreds of millions apiece. Kalanick was determined to clobber them.

    One way to get more drivers working for Uber was to have employees “slog.” This was corporate speak for booking a car on a competitor’s app and trying to convince the driver to switch to Uber. It became common practice all over the world, five people familiar with the process said.

    Staff eventually found a more efficient way to undermine its competitors: software. A breakthrough came in 2015 from Uber’s office in Sydney. A program called Surfcam, two people familiar with the project said, scraped data published online by competitors to figure out how many drivers were on their systems in real-time and where they were. The tool was primarily used on Grab, the main competitor in Southeast Asia. Surfcam, which hasn’t been previously reported, was named after the popular webcams in Australia and elsewhere that are pointed at beaches to help surfers monitor swells and identify the best times to ride them.

    Surfcam raised alarms with at least one member of Uber’s legal team, who questioned whether it could be legally operated in Singapore because it may run afoul of Grab’s terms of service or the country’s strict computer-crime laws, a person familiar with the matter said. Its creator, who had been working out of Singapore after leaving Sydney, eventually moved to Uber’s European headquarters in Amsterdam. He’s still employed by the company.

    “This is the first time as a lawyer that I’ve been asked to be innovative.”
    Staff at home base in San Francisco had created a similar piece of software called Hell. It was a tongue-in-cheek reference to the Heaven program, which allows employees to see where Uber drivers are in a city at a given moment. With Hell, Uber scraped Lyft data for a view of where its rival’s drivers were. The legal team decided the law was unclear on such tactics and approved Hell in the U.S., a program first reported by technology website the Information.

    Now as federal authorities investigate the program, they may need to get creative in how to prosecute the company. “You look at what categories of law you can work with,” said Yochai Benkler, co-director of Harvard University’s Berkman Klein Center for Internet and Society. “None of this fits comfortably into any explicit prohibitions.”

    Uber’s lawyers had a hard time keeping track of all the programs in use around the world that, in hindsight, carried significant risks. They signed off on Greyball, a tool that could tag select customers and show them a different version of the app. Workers used Greyball to obscure the actual locations of Uber drivers from customers who might inflict harm on them. They also aimed the software at Lyft employees to thwart any slog attempts.

    The company realized it could apply the same approach with law enforcement to help Uber drivers avoid tickets. Greyball, which was first covered by the New York Times, was deployed widely in and outside the U.S. without much legal oversight. Katherine Tassi, a former attorney at Uber, was listed as Greyball supervisor on an internal document early this year, months after decamping for Snap Inc. in 2016. Greyball is under review by the Justice Department. In another case, Uber settled with the Federal Trade Commission in August over privacy concerns with a tool called God View.

    Uber is the world’s most valuable technology startup, but it hardly fits the conventional definition of a tech company. Thousands of employees are scattered around the world helping tailor Uber’s service for each city. The company tries to apply a Silicon Valley touch to the old-fashioned business of taxis and black cars, while inserting itself firmly into gray areas of the law, said Benkler.

    “There are real political risks for playing the bad guy, and it looks like they overplayed their hand in ways that were stupid or ultimately counterproductive,” he said. “Maybe they’ll bounce back and survive it, but they’ve given competitors an opening.”

    Kalanick indicated from the beginning that what he wanted to achieve with Yoo was legally ambitious. In her first performance review, Kalanick told her that she needed to be more “innovative.” She stewed over the feedback and unloaded on her husband that night over a game of tennis, she recalled in the podcast on Legal Talk Network. “I was fuming. I said to my husband, who is also a lawyer: ‘Look, I have such a myriad of legal issues that have not been dealt with. I have constant regulatory pressures, and I’m trying to grow a team at the rate of growth of this company.’”

    By the end of the match, Yoo said she felt liberated. “This is the first time as a lawyer that I’ve been asked to be innovative. What I’m hearing from this is I actually don’t have to do things like any other legal department. I don’t have to go to best practices. I have to go to what is best for my company, what is best for my legal department. And I should view this as, actually, freedom to do things the way I think things should be done, rather than the way other people do it.”

    Prosecutors may not agree with Yoo’s assumptions about how things should be done. Even when Yoo had differences of opinion with Kalanick, she at times failed to challenge him or his deputies, or to raise objections to the board.

    After a woman in Delhi was raped by an Uber driver, the woman sued the company. Yoo was doing her best to try to manage the fallout by asking law firm Khaitan & Co. to help assess a settlement. Meanwhile, Kalanick stepped in to help craft the company’s response, privately entertaining bizarre conspiracy theories that the incident had been staged by Indian rival Ola, people familiar with the interactions have said. Eric Alexander, an Uber executive in Asia, somehow got a copy of the victim’s medical report in 2015. Kalanick and Yoo were aware but didn’t take action against him, the people said. Yoo didn’t respond to requests for comment.

    The mishandling of the medical document led to a second lawsuit from the woman this year. The Justice Department is now carrying out a criminal bribery probe at Uber, which includes questions about how Alexander obtained the report, two people said. Alexander declined to comment through a spokesman.

    In 2015, Kalanick hired Sullivan, the former chief security officer at Facebook. Sullivan started his career as a federal prosecutor in computer hacking and intellectual property law. He’s been a quiet fixture of Silicon Valley for more than a decade, with stints at PayPal and EBay Inc. before joining Facebook in 2008.

    It appears Sullivan was the keeper of some of Uber’s darkest secrets. He oversees a team formerly known as Competitive Intelligence. COIN, as it was referred to internally, was the caretaker of Hell and other opposition research, a sort of corporate spy agency. A few months after joining Uber, Sullivan shut down Hell, though other data-scraping programs continued. Another Sullivan division was called the Strategic Services Group. The SSG has hired contractors to surveil competitors and conducts extensive vetting on potential hires, two people said.

    Last year, Uber hired private investigators to monitor at least one employee, three people said. They watched China strategy chief Liu Zhen, whose cousin Jean Liu is president of local ride-hailing startup Didi Chuxing, as the companies were negotiating a sale. Liu Zhen couldn’t be reached for comment.

    Sullivan wasn’t just security chief at Uber. Unknown to the outside world, he also took the title of deputy general counsel, four people said. The designation could allow him to assert attorney-client privilege on his communications with colleagues and make his e-mails more difficult for a prosecutor to subpoena.

    Sullivan’s work is largely a mystery to the company’s board. Bloomberg learned the board recently hired a law firm to question security staff and investigate activities under Sullivan’s watch, including COIN. Sullivan declined to comment. COIN now goes by a different but similarly obscure name: Marketplace Analytics.

    As Uber became a global powerhouse, the balance between innovation and compliance took on more importance. An Uber attorney asked Kalanick during a company-wide meeting in late 2015 whether employees always needed to follow local ride-hailing laws, according to three people who attended the meeting. Kalanick repeated an old mantra, saying it depended on whether the law was being enforced.

    A few hours later, Yoo sent Kalanick an email recommending “a stronger, clearer message of compliance,” according to two people who saw the message. The company needed to adhere to the law no matter what, because Uber would need to demonstrate a culture of legal compliance if it ever had to defend itself in a criminal investigation, she argued in the email.

    Kalanick continued to encourage experimentation. In June 2016, Uber changed the way it calculated fares. It told customers it would estimate prices before booking but provided few details.

    Using one tool, called Cascade, the company set fares for drivers using a longstanding formula of mileage, time and demand. Another tool called Firehouse let Uber charge passengers a fixed, upfront rate, relying partly on computer-generated assumptions of what people traveling on a particular route would be willing to pay.

    Drivers began to notice a discrepancy, and Uber was slow to fully explain what was going on. In the background, employees were using Firehouse to run large-scale experiments offering discounts to some passengers but not to others.

    “Lawyers don’t realize that once they let the client cross that line, they are prisoners of each other from that point on”
    While Uber’s lawyers eventually looked at the pricing software, many of the early experiments were run without direct supervision. As with Greyball and other programs, attorneys failed to ensure Firehouse was used within the parameters approved in legal review. Some cities require commercial fares to be calculated based on time and distance, and federal law prohibits price discrimination. Uber was sued in New York over pricing inconsistencies in May, and the case is seeking class-action status. The Justice Department has also opened a criminal probe into questions about pricing, two people familiar with the inquiry said.

    As the summer of 2016 dragged on, Yoo became more critical of Kalanick, said three former employees. Kalanick wanted to purchase a startup called Otto to accelerate the company’s ambitions in self-driving cars. In the process, Otto co-founder Anthony Levandowski told the company he had files from his former employer, Alphabet, the people said. Yoo expressed reservations about the deal, although accounts vary on whether those were conveyed to Kalanick. He wanted to move forward anyway. Yoo and her team then determined that Uber should hire cyber-forensics firm Stroz Friedberg in an attempt to wall off any potentially misbegotten information.

    Alphabet’s Waymo sued Uber this February, claiming it benefited from stolen trade secrets. Uber’s board wasn’t aware of the Stroz report’s findings or that Levandowski allegedly had Alphabet files before the acquisition, according to testimony from Bill Gurley, a venture capitalist and former board member, as part of the Waymo litigation. The judge in that case referred the matter to U.S. Attorneys. The Justice Department is now looking into Uber’s role as part of a criminal probe, two people said.

    As scandal swirled, Kalanick started preaching the virtues of following the law. Uber distributed a video to employees on March 31 in which Kalanick discussed the importance of compliance. A few weeks later, Kalanick spoke about the same topic at an all-hands meeting.

    Despite their quarrels and mounting legal pressure, Kalanick told employees in May that he was promoting Yoo to chief legal officer. Kalanick’s true intention was to sideline her from daily decisions overseen by a general counsel, two employees who worked closely with them said. Kalanick wrote in a staff email that he planned to bring in Yoo’s replacement to “lead day to day direction and operation of the legal and regulatory teams.” This would leave Yoo to focus on equal-pay, workforce-diversity and culture initiatives, he wrote.

    Before Kalanick could find a new general counsel, he resigned under pressure from investors. Yoo told colleagues last month that she would leave, too, after helping Khosrowshahi find her replacement. He’s currently interviewing candidates. Yoo said she welcomed a break from the constant pressures of the job. “The idea of having dinner without my phone on the table or a day that stays unplugged certainly sounded appealing,” she wrote in an email to her team.

    The next legal chief won’t be able to easily shed the weight of Uber’s past. “Lawyers don’t realize that once they let the client cross that line, they are prisoners of each other from that point on,” said Marianne Jennings, professor of legal and ethical studies in business at Arizona State University. “It’s like chalk. There’s a chalk line: It’s white; it’s bright; you can see it. But once you cross over it a few times, it gets dusted up and spread around. So it’s not clear anymore, and it just keeps moving. By the time you realize what’s happening, if you say anything, you’re complicit. So the questions start coming to you: ‘How did you let this go?’”

    #Uber #USA #Recht

  • How Snapchat Has Kept Itself Free of Fake News
    https://www.bloomberg.com/news/features/2017-10-26/how-snapchat-has-kept-itself-free-of-fake-news

    Being less friendly to advertisers also insulates the service from viral hoaxes and propaganda.

    Putting human eyes on user-generated content isn’t cheap, of course, but Snap has managed to do it on a reasonable budget, thanks to design decisions that limit the spread of propaganda.

    #accountability #quandOnVeutOnPeut

  • #Nestlé Makes Billions Bottling Water It Pays Nearly Nothing For - Bloomberg
    https://www.bloomberg.com/news/features/2017-09-21/nestl-makes-billions-bottling-water-it-pays-nearly-nothing-for

    Nestlé has come to dominate a controversial industry, spring by spring, often going into economically depressed municipalities with the promise of jobs and new infrastructure in exchange for tax breaks and access to a resource that’s scarce for millions. Where Nestlé encounters grass-roots resistance against its industrial-strength guzzling, it deploys lawyers; where it’s welcome, it can push the limits of that hospitality, sometimes with the acquiescence of state and local governments that are too cash-strapped or inept to say no. There are the usual costs of doing business, including transportation, infrastructure, and salaries. But Nestlé pays little for the product it bottles—sometimes a municipal rate and other times just a nominal extraction fee. In Michigan, it’s $200.

    #eau #fiscalité

  • Nobody Knows What Lies Beneath New York City - Bloomberg
    https://www.bloomberg.com/news/features/2017-08-10/nobody-knows-what-lies-beneath-new-york-city

    Before a single raindrop fell, Alan Leidner knew the waters could rise and throw the city into darkness. On this point, the maps were as clear as a crystal ball. All you had to do was look.

    #cartographie #cartographie_souterraine —> bonne idée !

  • Where the Arctic Oil Industry Is Booming - Bloomberg
    https://www.bloomberg.com/news/features/2017-05-03/where-the-arctic-oil-industry-is-booming


    The town of Hammerfest, Norway, is the hub for Arctic oil drilling.
    Photographer: Mark Edward Harris/Getty Images

    With the oil industry barely recovering from its most brutal slump in decades, you might expect the Arctic Ocean to be the last place explorers would hunt for new discoveries.

    The Barents Sea off Norway’s northern tip is different.

    Norwegian authorities expect companies including Lundin Petroleum AB and OMV AG to drill a record 15 wells in the Barents this year.