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Birmingham's $125M 'Oracle Disaster' Blamed on Poor IT Project Management

It was "a catastrophic IT failure," writes Computer Weekly. It was nearly two years ago that Birmingham City Council, the largest local authority in Europe, "declared itself in financial distress" — effectively declaring bankruptcy — after the costs on an Oracle project costs ballooned from $25 million to around $125.5 million. But Computer Weekly's investigation finds signs that the program board and its manager wanted to go live in April of 2022 "regardless of the state of the build, the level of testing undertaken and challenges faced by those working on the programme." One manager's notes "reveal concerns that the program manager and steering committee could not be swayed, which meant the system went live despite having known flaws." Computer Weekly has seen notes from a manager at BCC highlighting a number of discrepancies in the Birmingham City Council report to cabinet published in June 2023, 14 months after the Oracle system went into production. The report stated that some critical elements of the Oracle system were not functioning adequately, impacting day-to-day operations. The manager's comments reveal that this flaw in the implementation of the Oracle software was known before the system went live in April 2022... An insider at Birmingham City Council who has been closely involved in the project told Computer Weekly it went live "despite all the warnings telling them it wouldn't work".... Since going live, the Oracle system effectively scrambled financial data, which meant the council had no clear picture of its overall finances. The insider said that by January 2023, Birmingham City Council could not produce an accurate account of its spending and budget for the next financial year: "There's no way that we could do our year-end accounts because the system didn't work." A June 2023 report to cabinet "stated that due to issues with the council's bank reconciliation system, a significant number of transactions had to be manually allocated to accounts rather than automatically via the Oracle system," according to the article. But Computer Weekly has seen a 2019 presentation slide deck showing the council was already aware that Oracle's out-of-the-box bank reconciliation system "did not handle mixed debtor/non-debtor bank files. The workaround suggested was either a lot of manual intervention or a platform as a service (PaaS) offering from Evosys, the Oracle implementation partner contracted by BCC to build the new IT system." The article ultimately concludes that "project management failures over a number of years contributed to the IT failure."

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UK Law Will Let Regulators Fine Big Tech Without Court Approval

Emma Roth reports via The Verge: The UK could subject big tech companies to hefty fines if they don't comply with new rules meant to promote competition in digital markets. On Thursday, lawmakers passed the Digital Markets, Competition and Consumer Bill (DMCC) through Parliament, which will let regulators enforce rules without the help of the courts. The DMCC also addresses consumer protection issues by banning fake reviews, forcing companies to be more transparent about their subscription contracts, regulating secondary ticket sales, and getting rid of hidden fees. It will also force certain companies to report mergers to the UK's Competition and Markets Authority (CMA). The European Union enacted a similar law, called the Digital Markets Act (DMA). Only the companies the CMA designates as having Strategic Market Status (SMS) have to comply. These SMS companies are described as having "substantial and entrenched market power" and "a position of strategic significance" in the UK. They must have a global revenue of more than 25 billion euros or UK revenue of more than 1 billion euros. The law will also give the CMA the authority to determine whether a company has broken a law, require compliance, and issue a fine -- all without going through the court system. The CMA can fine companies up to 10 percent of the total value of a business's global revenue for violating the new rules.

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EU Sets Benchmark For Rest of the World With Landmark AI Laws

An anonymous reader quotes a report from Reuters: Europe's landmark rules on artificial intelligence will enter into force next month after EU countries endorsed on Tuesday a political deal reached in December, setting a potential global benchmark for a technology used in business and everyday life. The European Union's AI Act is more comprehensive than the United States' light-touch voluntary compliance approach while China's approach aims to maintain social stability and state control. The vote by EU countries came two months after EU lawmakers backed the AI legislation drafted by the European Commission in 2021 after making a number of key changes. [...] The AI Act imposes strict transparency obligations on high-risk AI systems while such requirements for general-purpose AI models will be lighter. It restricts governments' use of real-time biometric surveillance in public spaces to cases of certain crimes, prevention of terrorist attacks and searches for people suspected of the most serious crimes. The new legislation will have an impact beyond the 27-country bloc, said Patrick van Eecke at law firm Cooley. "The Act will have global reach. Companies outside the EU who use EU customer data in their AI platforms will need to comply. Other countries and regions are likely to use the AI Act as a blueprint, just as they did with the GDPR," he said, referring to EU privacy rules. While the new legislation will apply in 2026, bans on the use of artificial intelligence in social scoring, predictive policing and untargeted scraping of facial images from the internet or CCTV footage will kick in in six months once the new regulation enters into force. Obligations for general purpose AI models will apply after 12 months and rules for AI systems embedded into regulated products in 36 months. Fines for violations range from $8.2 million or 1.5% of turnover to 35 million euros or 7% of global turnover depending on the type of violations.

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EU Opens Child Safety Probes of Facebook and Instagram, Citing Addictive Design Concerns

An anonymous reader quotes a report from TechCrunch: Facebook and Instagram are under formal investigation in the European Union over child protection concerns, the Commission announced Thursday. The proceedings follow a raft of requests for information to parent entity Meta since the bloc's online governance regime, the Digital Services Act (DSA), started applying last August. The development could be significant as the formal proceedings unlock additional investigatory powers for EU enforcers, such as the ability to conduct office inspections or apply interim measures. Penalties for any confirmed breaches of the DSA could reach up to 6% of Meta's global annual turnover. Meta's two social networks are designated as very large online platforms (VLOPs) under the DSA. This means the company faces an extra set of rules -- overseen by the EU directly -- requiring it to assess and mitigate systemic risks on Facebook and Instagram, including in areas like minors' mental health. In a briefing with journalists, senior Commission officials said they suspect Meta of failing to properly assess and mitigate risks affecting children. They particularly highlighted concerns about addictive design on its social networks, and what they referred to as a "rabbit hole effect," where a minor watching one video may be pushed to view more similar content as a result of the platforms' algorithmic content recommendation engines. Commission officials gave examples of depression content, or content that promotes an unhealthy body image, as types of content that could have negative impacts on minors' mental health. They are also concerned that the age assurance methods Meta uses may be too easy for kids to circumvent. "One of the underlying questions of all of these grievances is how can we be sure who accesses the service and how effective are the age gates -- particularly for avoiding that underage users access the service," said a senior Commission official briefing press today on background. "This is part of our investigation now to check the effectiveness of the measures that Meta has put in place in this regard as well." In all, the EU suspects Meta of infringing DSA Articles 28, 34, and 35. The Commission will now carry out an in-depth investigation of the two platforms' approach to child protection.

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Microsoft entre Xbox et Activision-Blizzard

Quelques mois après avoir finalisé le gros rachat d’Activision-Blizzard-King (ABK), Microsoft décide de fermer quatre studios Bethesda, son gros achat précédent. Est-ce le signe d’un changement de stratégie concernant le jeu vidéo ?

The EU Will Force Apple To Open Up iPadOS

As reported by Bloomberg (paywalled), Apple's iPadOS will need to abide by EU's DMA rules, as it is now designated as a gatekeeper alongside the Safari web browser, iOS operating system and the App Store. "Apple now has six months to ensure full compliance of iPadOS with the DMA obligations," reads the EU's blog post about the change. Engadget reports: What does Apple have to do to ensure iPadOS compliance? According to the DMA, gatekeepers are prohibited from favoring their own services over rivals and from locking users into the ecosystem. The software must also allow third parties to interoperate with internal services, which is why third-party app stores are becoming a thing on iPhones in Europe. The iPad, presumably, will soon follow suit. In other words, the DMA is lobbing some serious stink bombs into Apple's walled garden. In a statement published by Forbes, Apple said it "will continue to constructively engage with the European Commission" to ensure its designated services comply with the DMA, including iPadOS. "iPadOS constitutes an important gateway on which many companies rely to reach their customers," wrote Margrethe Vestager, Executive Vice-President in charge of competition policy at the European Commission. "Today's decision will ensure that fairness and contestability are preserved also on this platform."

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EU Opens Probe of TikTok Lite, Citing Concerns About Addictive Design

The European Union has opened a second formal investigation into TikTok under its Digital Services Act (DSA), an online governance and content moderation framework. The investigation centers around TikTok Lite's "Task and Reward" feature that may harm mental health, especially among minors, by promoting addictive behavior. TechCrunch reports: The Commission also said it's minded to impose interim measures that could force the company to suspend access to the TikTok Lite app in the EU while it investigates concerns the app poses mental health risks to users. Although the EU has given TikTok until April 24 to argue against the measure -- meaning the app remains accessible for now. Penalties for confirmed violations of the DSA can reach up to 6% of global annual turnover. So ByeDance, TikTok's parent, could face hefty fines if EU enforcers do end up deciding it has broken the law. The EU's first TikTok probe covers multiple issues including the protection of minors, advertising transparency, data access for researchers, and the risk management of addictive design and harmful content. Hence it said the latest investigation will specifically focus on TikTok Lite, a version of the video sharing platform which launched earlier this month in France and Spain and includes a mechanism that allows users to earn points for doing things like watching or liking videos. Points earned through TikTok Lite can be exchanged for things like Amazon gift vouchers or TikTok's own digital currency for gifting to creators. The Commission is worried this so-called "task and reward" feature could negatively impact the mental health of young users by "stimulating addictive behavior." The EU wrote that the second probe will focus on TikTok's compliance with the DSA obligation to conduct and submit a risk assessment report prior to the launch of the "Task and Reward Lite" program, with a particular focus on negative effects on mental health, including minors' mental health. It also said it will look into measures taken by TikTok to mitigate those risks. In a press release announcing the action, the EU said ByeDance failed to produce a risk assessment about the feature which it had asked to see last week -- when it gave the company 24 hours to produce the document. Since it failed to submit the risk assessment paperwork on April 18 the Commission wrote that it suspects a "prima facie infringement of the DSA."

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