Genetics, Protests, Immigration: How Data Rules Them All
Plus the new Broadband (BEAD) rules explained and how the PRC is running circles around Silicone Valley
“Anne Wojcicki, the co-founder and former CEO of 23andMe is poised to regain control of the DNA-testing company after a nonprofit she controls topped a prior bid.”
The company filed for bankruptcy in March, and the bankruptcy court's decision to allow the auction of user data sparked outrage, congressional investigations, and lawsuits from 27 states and the District of Columbia. It is unclear whether these lawsuits are now moot, as the data will remain under Wojcicki’s control, albeit in a different entity. Nonprofit ownership may also alter the contours of the lawsuit. However, the case may turn on individual state laws. Virginia, one of the leading states in the lawsuit, for example, requires explicit consent for the transfer of genetic data.
A company’s control of user data after service has ended is problematic. For example, with social media platforms, users license their content to the social media company in perpetuity. Some “Terms & Conditions” (like Meta’s) have so many “exceptions” that in reality, they have broad discretion whether to keep the data or not after a user cancels service. Others (TikTok) explicitly say they have the right to your content and data forever. As companies rise and fall, merge, and restructure, this will likely be a hot area for future regulation and litigation. If anyone has expertise in this area—terms and conditions, perpetual contracts, or data management during Mergers and Acquisitions—I’d love to chat and collaborate!
More rules for rural broadband
BEAD was an ambitious Biden Administration program set to benefit millions of people, but it was a victim of self-imposed project-killing red tape. Four years later, as states have finally satisfied the rules enough to make a bid for the money, the rules change, creating a new, different set of hurdles for states to jump through. Last week, I posted a link to a John Stewart podcast that discusses the red tape snafu that has stymied the program for the last administration. Below is a post from the NCSL on the new Trump Administration rules, critiques, and how states are reacting.
New Rules for BEAD Change the Broadband Game
The June 9 release of new rules for the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program intended to bridge the digital divide and bring broadband access to underserved Americans, particularly in rural areas, brought a range of reactions, from support to scorn. No longer is fiber the preferred delivery method, in favor of a tech-neutral model which opens the door to satellite-delivered services. Critics say the satellite models deliver slower service than fiber but others point to its affordability and wider access.
NCSL State Legislatures News: States Are Banking on BEAD Funds to Fill Broadband Gaps
NCSL: Broadband Policy Toolkit
Stateline: Trump’s broadband program overhaul favors Musk tech, strips low-cost plans
Route Fifty: Feds unveil ‘critical reforms’ to BEAD program
Uncontrollable ads
Meta is suing Hong Kong-based Joy Timeline HK Ltd., “that ran ads on its services to promote an app that lets people create nonconsensual, sexualized images of others using AI technology.” Meta filed the lawsuit in Hong Kong, highlighting the globalized and sprawling nature of the ad market. Ad purchases on online platforms are automated and extremely fast, often subject only to automated oversight or user-generated flags, after the ad is aired. It may be technically infeasible to shut out a single buyer, or it may be that Meta just doesn’t want to. It is a unique feature of the ad-buying ecosystem that the only way Meta can prevent a customer from buying ad space on its platform is through an international lawsuit, rather than simply refusing them service outright.
Apple and Google continue to host PRC-linked VPNs on their app store.
“TTP’s April 1 report found that more than 20 of the top 100 free VPNs in the U.S. Apple App Store in 2024 showed evidence of Chinese ownership. None of these apps clearly disclosed their Chinese ties, and some obscured their origins behind layers of shell companies. Several of the apps were linked to Qihoo 360, a Chinese cybersecurity firm that has been sanctioned by the U.S. over its ties to China’s People’s Liberation Army, TTP found.”
Why does this matter? Well, PRC companies are required by law to share their data with the state, as well as being subject to all sorts of other intrusive CCP protocols. If a user intentionally routes their data to servers in China, then that data falls under PRC jurisdiction—whether they know they are intentionally routing it there or not.
As trade wars and export controls continue between the U.S. and the PRC, Chinese engineers are resorting to analog methods to circumvent AI and semiconductor export restrictions by smuggling data out on hard drives in personal luggage.
Chinese engineers transport hard drives with AI training data to Malaysia to bypass U.S. chip restrictions.
Chinese firms are shifting AI development to Southeast Asia, exploiting data centers with advanced U.S. chips.
The U.S. is considering measures to prevent Chinese access to AI chips via overseas locations such as Malaysia.
From around the country
Last year, there were $42 billion in class action settlements, and the ubiquity of technology is making them more prevalent. This story highlights ways you can keep up with which ones you are eligible for.
Walmart and Amazon are considering creating their own stablecoin, a move that would reduce transaction fees and increase the speed of closing payments, essentially bypassing most of the traditional banking infrastructure.
“Disney and Universal sue AI image creator Midjourney, alleging copyright infringement”
A class action lawsuit and an FTC right-to-repair lawsuit against John Deere are moving forward. This case may have a ripple effect far beyond the farm equipment market, as wins will bolster the right-to-repair movement and hinder “predatory updates” that force consumers to constantly buy new products.
“Minnesota Passes Groundbreaking Mental Health Warning Label Bill for Social Media Platforms”
The Center for Security and Emerging Technology published a new report on U.S. space technology. “This report explores the U.S. advanced space technologies industry and highlights challenges and opportunities the state of the industry presents for national security.”
Technology & protests
There is a lot to write about the protests, particularly the ones in Los Angeles, and the role technology has played. I’ll leave a few stories and quotes I found particularly useful this past week:
The Chatbot Disinfo Inflaming the LA Protests. A Wired podcast discussing the chatbots spreading lies about the protest
Fake Images and Conspiracy Theories Swirl Around L.A. Protests. A great piece on the posts and conspiracy theories recycled from the 2020 BLM protests:
“X posted a Community Note pointing out that the photograph [of a pallet of bricks] had nothing to do with the protests, but it still was seen more than 800,000 times. It was also widely reposted, including by several seemingly inauthentic accounts in Chinese.”
Los Angeles Protests Amplified by Influencers and Online Creators.
“[Influencers] don’t have a boss, so they can say they’re independent [reporters], but they’re following the exact same incentive structures as the conservative establishment media,” Mr. Callaghan [a journalist] said in an interview. “Click bait, key frames that don’t reflect the reality of the situation, doing whatever they can to absorb the audience that otherwise would be watching the same programming on Fox News.”
The protests in LA are, at their core, about immigration. The city with one of the largest undocumented communities is using grassroots apps from activists to evade ICE raids. According to open-source reports, these apps appear to be effective; however, their security protocols are unclear. Stepping away from the domestic cat-and-mouse game, the national intelligence community is concerned that foreign actors can exploit the data, as it essentially provides a map of where law enforcement officers are deployed. I haven’t used these apps myself, but conceptually, it doesn’t seem too different from Waze or Google Maps, which tell you where speed traps are located.
Data transfer obviously goes the other way as well. Federal Medicaid data has been sent to DHS that contains individual recipients’ immigration status, a policy that is certain to scare an entire class of people from receiving medical care in the future.
I’ll wrap up and leave you with a clip from a presidential primary debate 45 years ago. George H. W. Bush, one of the smartest and most qualified men to have ever served in the office, hits the nail directly on the head. And, I truly believe, speaks for more Americans today than it may seem—in tone and in content.