What to watch for as Twitter whistleblower testifies to Congress

The allegations by Twitter’s former security chief, detailed in an explosive complaint obtained by The Washington Post, have shocked the social media company and prompted swift scrutiny among lawmakers on Capitol Hill.

But the biggest risk factor for Twitter may be how Zatko’s allegations, which he is expected to discuss in more detail while testifying under a congressional subpoena, could deepen the company’s legal woes.

Here’s what to keep in mind as lawmakers question the former Twitter executive:

Will Twitter draw the ire of the Federal Trade Commission?

“Among the most serious charges in the report [by Zatko] is that Twitter violated the terms of an 11-year settlement with the Federal Trade Commission by falsely claiming it had a strong security plan,” my colleagues. Joseph Menn, Elizabeth Dwoskin AND Zakrzewski the cat reported last month.

Zatko’s testimony this week could shape how regulators respond to his complaint against Twitter, which has been repeatedly criticized by the FTC for security lapses. The agency is already looking into the allegations, two people familiar with the preliminary investigation told The Post.

But it remains to be seen whether regulators will impose a new fine or pursue structural changes from the company for the alleged security lapses. The FTC has issued some of the largest penalties in its history against tech companies for privacy violations, including against Twitter.

Twitter has rejected Zatko’s accusations, with a spokeswoman Rebecca Hahn saying they are “filled with inaccuracies” and that Zatko “now appears to be opportunistically seeking to cause harm to Twitter, its customers and shareholders.”

Twitter agreed to pay the FTC $150 million in May to settle charges it fraudulently collected and used users’ email addresses to serve them digital ads, marking one of the largest settlements ever. the intimacy of agency in history. (The FTC hit Facebook with a record $5 billion fine in 2019 for alleged data privacy violations.)

The issue is top of mind for lawmakers. Chairman of the Senate Judiciary Dick Durbin (D-Ill.), whose panel will hear testimony from Zatko this week:

Zatko’s testimony may provide new ammunition for Elon Muskwho is locked in a contentious courtroom battle to back out of his $44 billion deal to buy Twitter and whose legal team won an early battle allowing them to add whistleblower claims in this case.

At the heart of Musk’s argument is his claim that Twitter has grossly underestimated the number of spam and bot accounts on its platform, and his legal team has used allegations in Zatko’s complaint that the company gave prioritizing user growth over spam reduction.

“Executives would earn up to $10 million in individual bonuses tied to daily user growth, the complaint alleges, and nothing explicitly for cutting spam,” my colleagues reported.

Hahn, the Twitter spokeswoman, said the company removes more than a million spam accounts every day, adding up to more than 300 million a year, and that it “stands by” its filings on the matter with federal regulators. and its approach to war. blocked.

Musk on Friday also claimed that he is under no obligation to complete his acquisition of Twitter because of a newly disclosed $7.75 million payment the company made to Zatko. Musk’s legal team argued that it violated a clause in their agreement that prohibited the company from making such payments that were not “in the ordinary course of business consistent with past practice.”

National security vulnerabilities under the microscope

In his complaint, Zatko also alleged that the Indian government had forced Twitter to put one of its agents on its payroll, giving them access to user data during a politically tumultuous period in the country. The allegation, which came just weeks after a former Twitter employee was convicted of spying for Saudi Arabia, raised national security concerns on Capitol Hill.

A host of senior lawmakers, including leaders on the Senate Judiciary Committee and the Senate Intelligence Committee, have vowed to investigate the claims.

Rep. Elise Stefanik (N.Y.), the third-ranking House Republican, vowed in an email to GOP lawmakers last month that they would “conduct a full and prompt investigation into these allegations against Twitter,” including allegations of employees working for foreign interests, according to a copy. reviewed by The Technology 202.

The senior senator is working to change the way the federal government buys software

The legislation is being drafted by the Chairman of the National Security and Governmental Affairs Committee of the Senate Gary Peters (D-Mich.) would require federal agencies to switch from buying software licenses for a set number of employees to “unlimited” licenses, Bloomberg News Leah Nylen AND In the bass report.

“In addition to requiring every agency to move to unlimited software licenses where possible, the legislation also proposes the administration make plans to adopt governmentwide licenses for popular software as a move to further reduce costs and use its purchasing power to promote interoperability. seamless transfer of data and information between systems,” Nylen and Bass write. “The law also requires agencies to identify restrictions in software licenses on how the programs can be used and to find ways to minimize such restrictions.”

Such a change would change the way companies like Microsoft and Oracle sell software to the federal government. The bill is still being finalized, a Peters aide told Bloomberg News, and his office would not comment on when Peters would introduce it.

SpaceX is appealing the FCC’s decision to deny nearly $900 million in subsidies

In its appeal, SpaceX criticized the Federal Communications Commission’s decision to block it from receiving more than $885 million in broadband subsidies, calling the action “flawed” and “grossly unfair,” Reuters said. . Roulette Joey reports. When the Chairman of the FCC Jessica Rosenworcel announced the decision last month, it said the Starlink technology has “real promise” but cannot meet the FCC’s requirements.

The decision is “flawed both in law and policy,” SpaceX’s senior director of satellite policy said David Goldman argued in the file. “It fails legally because it contradicts the record — including the proven capabilities of SpaceX and Starlink — it contradicts the Commission’s stated rules for the program, and it relies on unsupported conjecture and off-the-record information apparently co-opted from somewhere in the Internet. “, Goldman wrote. The FCC declined to comment to Reuters.

Snapchat sees a reversal of fortunes amid falling stock and layoffs

Snapchat grew quietly for years. However, an economic downturn, changes in advertising markets and the rise of TikTok have thrown the company for a loop, Shall we pray? AND Naomi Nix report. The company last month laid off 20 percent of its workforce and its shares have lost nearly three-quarters of their value since January.

“No longer the youngest powerhouse in the world of social media, Snap faces a new challenge as it enters its second decade: how to build a mature and profitable business around an app that remains loved by teenagers but largely ignored by seniors with disposable income. ”, write Will and Naomi. “A company known for an upbeat culture and quirky product initiatives that prided itself on being the anti-Facebook is now scaling back its ambitions and squeezing employees as it struggles to capitalize on those new babies amid threats to the model of its revenue from Apple and TikTok,” they write.

Billy McFarland, who organized the infamous Fyre Festival, is out of prison after serving nearly four years on fraud charges — and he’s considering entering the tech industry, the New York Times reported. journalism Sara Ashley O’Brien:

Technology columnist Christopher Mims:

entrepreneur Evan Stewart:

SEC to set up new office for crypto filings (Reuters)

Netflix to acquire three exclusive Ubisoft games, including Assassin’s Creed (Shannon Liao)

This robot catches grandma before she falls (Pranshu Verma)

Two dozen tech founders living in one mansion. What could go wrong? (vox)

• Mozilla has hired Charles Torres as its chief legal officer. Torres previously worked on Flashbots.

• Christel Schaldemosea member of the European Parliament who is the rapporteur for the Digital Services Act, discusses DSA at an event organized by the German Marshall Fund and the Columbia School of International and Public Affairs at noon today.
• Whistleblower on Twitter Peter “Mudge” Zatko testifies before the Senate Judiciary Committee on Tuesday at 10:00 a.m
• FCC Commissioner Geoffrey Starks speaks at a Consumer Technology Association event Tuesday at 4 p.m
• Current and former executives at social media companies testify before the Senate Homeland Security Committee on Wednesday at 10 a.m.
• A panel of the Senate Judiciary Committee holds a hearing on protecting Americans’ personal information from foreign adversaries on Wednesday at 3:30 p.m.
• FCC Chair Jessica Rosenworcel speaks at the US Chamber of Commerce’s Global Aerospace Summit on Wednesday.
• The Information Technology and Innovation Foundation and the XR Association host the Augmented and Virtual Reality Policy Conference on Wednesday.

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