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T-Mobile Appears To Be Quitting VMware Amid Support Rights Lawsuit With Broadcom

T-Mobile appears to be migrating its 303,000-core VMware environment to another platform while fighting Broadcom in court for the extended support it says its perpetual-license agreement guarantees. "The matter is somewhat urgent," The Register reports, because a court-ordered support arrangement expires August 3, "so T-Mobile may soon be unable to get support for its very substantial VMware estate." The Register reports: The dispute relates to a deal T-Mobile struck with VMware in August 2023, which saw the telco acquire perpetual licenses and two years of support for some software, plus the option for a further year of support. When Broadcom acquired VMware in 2023, it stopped selling perpetual licenses and standalone support deals for customers with those licenses. Broadcom also reduced the virtualization giant's product range from over 150 products to two subscription-only bundles. Broadcom now mostly sells its Cloud Foundation (VCF) private cloud suite. Customers including AT&T and Tesco tried to exercise their right to extended support, but Broadcom declined to do so. AT&T settled on confidential terms. Tesco is pursuing the matter in the courts. When customers exercise their option for extended support, Broadcom argues it can't deliver because the products covered by the contract don't exist anymore, its contracts allow it to deny support for dead products, and subscriptions are now the industry standard. T-Mobile started using VMware's products in 2008. In one hearing, the carrier's counsel described T-Mobile's VMware implementation as "the base of the entire internal network" and "the place where 1,000 applications reside." Another filing, from Broadcom, says the telco runs VMware software on over 303,000 CPU cores. Court documents allege that in 2024 Broadcom notified T-Mobile it would not renew support after the initial two-year deal expired in 2025. The two parties kept talking about possible new arrangements. T-Mobile also sought an injunction that would compel Broadcom to provide extended support. Broadcom opposed the injunction, arguing that T-Mobile deliberately waited too long to seek it. At one point T-Mobile suggested a $20 million deal for another two years of support. An affirmation filed last week by T-Mobile vice president of technology Kevin Luu says the carrier sought that arrangement "to be able to complete T-Mobile's transition away from VMware at a more deliberate pace." The court eventually granted the injunction forcing Broadcom to offer support beyond August 2025, but required T-Mobile to pay $5.28 million and post a $500,000 undertaking. Broadcom continued to provide support but also sought damages on grounds that the injunction meant it missed out on a new deal with T-Mobile. The telco has rubbished that argument in part because the two parties were still talking about a new deal. Broadcom later proposed to charge $24 million for extended support covering six products, a sum it said would cover over 20 staff needed to support T-Mobile. The carrier fired back by pointing out that it has made just two support calls in 2026, which hardly justifies such a massive staff and expense.

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Meta Loses Bid To Dismiss US States' Claims That Facebook, Instagram Addict Children

A federal judge rejected Meta's bid to dismiss claims from 29 state attorneys general alleging that Facebook and Instagram were designed to addict children while concealing the harms. The judge found significant factual disputes that must be decided at trial. They also ruled that Meta failed to comply with federal parental notice and consent requirements for children under 13, "and granted summary judgement to the states on that issue," reports Reuters. From the report: In a separate statement, California Attorney General Rob Bonta called the decision a "critical win" in holding Meta accountable for fueling a mental health crisis among American children. Gonzalez Rogers also oversees related multidistrict litigation by more than 2,600 individuals, school districts and local governments over whether social media platforms such as Facebook, Instagram, Google and YouTube, Snapchat and TikTok addict children. The states said research has shown that children's use of Facebook and Instagram could lead to depression, anxiety, insomnia, interference with education and daily life, and self-harm including suicide. Meta countered that the attorneys general had no evidence it misled consumers about its platforms' alleged addictiveness, including in congressional testimony by Chief Executive Mark Zuckerberg. The Menlo Park, California-based company said this was because "social media addiction" is not an established psychiatric condition, and therefore statements that its platforms are not addictive could not be false. Meta also said it didn't violate the children's online privacy law because it directed Facebook and Instagram to a general audience, not just children under age 13. In a 38-page decision, Gonzalez Rogers found material factual disputes over whether Meta's social media platforms are addictive, whether Meta falsely denied it designed them that way, and whether it "partially" directed the platforms at children. "The AGs present a reasonable interpretation of [Meta's] statements that Facebook and Instagram are not designed in ways that cause teens to compulsively use the platforms to their detriment," the judge wrote. "To the extent plaintiffs' evidence shows that the platforms are in fact designed to do just that, a jury could reasonably find the statements were untrue to a reasonable person," she added. A trial over California, Colorado, Kentucky and New Jersey's claims against Meta is scheduled for August 18, court records show. Further reading: Will Social Media Change After YouTube and Meta's Court Defeat?

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US Supreme Court Rules Geofence Warrants Require Constitutional Privacy Protections

The U.S. Supreme Court ruled 6-3 (PDF) in Chatrie v United States (No. 25-112) that geofence warrants sweeping up smartphone location data constitute searches under the Fourth Amendment. The Court found that individuals have a "reasonable expectation of privacy" in such data, even when the tracking covers only a brief period or records movements in public. "An individual has a reasonable expectation of privacy in records about his cell phone's location, and police intrude on that constitutionally protected interest when they demand the information -- even though for only a limited time, and from a third-party tech company," wrote Justice Elena Kagan. Longtime Slashdot reader schwit1 submitted the story. The Guardian reports: The use of geofence warrants is widespread, and gives law enforcement agencies the power to compel tech companies to hand over sensitive cell phone data from people at or near crime scenes. The warrants allow police and the FBI to collect this information from individuals within the radius of a virtual "fence" during a particular timeframe. But they are not restricted to requesting data for precise targets. The Chatrie case focuses on local police's pursuit of an armed bank robber in Richmond, Virginia. He fled with $195,000. Law enforcement tracked Okello Chatrie down through their use of geofence warrants. Chatrie had opted in to an optional Google "location history" feature that documented his location every few minutes. He was eventually sentenced to 12 years in prison, after pleading guilty. Chatrie's lawyers argued that this search was overly broad and violated his fourth amendment rights, which protects individuals from "unreasonable search and seizure." Lawyers said that police's use of geofence warrants amounted to an official "search" under the fourth amendment, and didn't meet the constitution's requirements for one. The government had argued that accessing only a short amount of cellphone location information means this tactic does not count as a fourth amendment search and accordingly, should not be afforded the same privacy protections. But the judges in the majority disagreed. The judges in the majority opinion also wrote that the government's characterization of generating location history as a voluntary choice is "meritless." They suggested that people aren't choosing to share private information with third parties and the government "just by doing the ordinary thing cellphone users do." "The point of carrying smartphones is to use what is on them," including the apps and services they provide -- many of which use location data to customize a user's experience, they said. [...] While the majority opinion noted that police conducted a fourth amendment search by accessing Chatrie's location history data, they noted that the court of appeals will weigh in on whether the "search was reasonable, meaning that each of its steps was properly described with particularity and found to be supported by probable cause." Law enforcement has said they need geofence warrants to find suspects and witnesses -- after reaching dead ends. The US government, for its part, has argued that people can't have a "reasonable expectation of privacy" when they are in public and have allowed a third party company, such as Google, to collect and analyze phone location data.

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Gamers Sue PlayStation: It's Not Clear They're Selling Licenses Rather Than Ownership of Games

The gaming news site Aftermath reports: Four gamers are suing Sony Interactive Entertainment for allegedly breaking a California law that requires digital storefronts selling games to make it clear people are buying licenses, not actually owning the games. Sony Interactive Entertainment's PlayStation store uses language like "Buy Now" and "Confirm Purchase," lawyers wrote in a complaint filed on Thursday... "In reality, consumers who 'purchase' digital games through PlayStation do not obtain ownership of those products," lawyers wrote. "Instead, PlayStation grants only a limited, revocable license to access the software, subject to multiple restrictions contained in a separate Software Product License Agreement".... [T]he PlayStation store does have a disclosure. Above the "Confirm Purchase" button, there's a note: "By selecting [Confirm Purchase], you agree to complete the purchase in accordance with the PlayStation Terms of Service before using this content. You further acknowledge that your purchase of this digital product amounts to a license subject to the Software Product License Agreement." These four gamers aren't satisfied with that; they said in the complaint that it's too small, and that "a reasonable customer completing a purchase would not necessarily notice this disclosure." "It's a proposed class action complaint, meaning the group of four gamers is asking a judge to grant them class action status."

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Google Sues Chinese Cybercrime Operation That Used Gemini AI To Send Scam Texts

An anonymous reader quotes a report from TechCrunch: Google is suing to dismantle the infrastructure behind an alleged massive AI-powered cybercrime operation. On Friday, the tech giant announced a lawsuit against an alleged Chinese cybercrime network called Outsider Enterprise, which Google says uses AI in its campaigns to send scam text messages impersonating Google and other brands to steal passwords and credit card numbers. Outsider Enterprise has financially scammed "hundreds of thousands of victims" with losses "estimated in the millions." The group deployed 9,000 fake websites, 1 million fraudulent web domains, and 2.5 million texts sent to Android users in a two-week period, according to Google. "55,000 spam texts were flagged by Android users in just two weeks this past May -- that's more than two text spam complaints a minute," Google said. Google said it uses "AI-powered tools to fight AI-powered scams", which enable the company to detect scams and alert users of suspicious calls and text messages, leading to the interception of more than 10 billion scam messages a month. The company said it has been collaborating with AT&T, T-Mobile, and Verizon to block the scam text messages and said it is coordinating with the FBI, which is taking unspecified law enforcement actions.

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Sam Bankman-Fried Loses Bid To Overturn Crypto Fraud Conviction

Sam Bankman-Fried lost his appeal to overturn his FTX fraud conviction and 25-year sentence. Reuters reports: In a unanimous decision, a three-judge panel of the Manhattan-based 2nd U.S. Circuit Court of Appeals said prosecutors' evidence against Bankman-Fried "was, conservatively stated, robust." "While he was publicly reassuring customers, investors and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments," Circuit Judge Barrington Parker wrote on behalf of the panel. Bankman-Fried's lawyers did not immediately respond to a request for comment. They may next ask all the active judges on the 2nd Circuit to hear the case, or ask the U.S. Supreme Court to take up the case. Bankman-Fried is also seeking a pardon from President Donald Trump, according to the Justice Department's Office of the Pardon Attorney. Bankman-Fried was sentenced to 25 years in prison in 2024 for "masterminding one of the largest financial frauds in American history," wrote US District Judge Lewis Kaplan. He was convicted on all charges, including wire fraud, conspiracy to commit securities fraud, commodities fraud, and money laundering.

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German Court Holds Google Liable For False AI Overview Answers

A Munich regional court has ruled (PDF) that Google can be held directly liable for false claims in AI Overviews. The case involved AI Overviews falsely linking two publishers to scams and shady business practices, with the court rejecting Google's argument that users could simply check the sources themselves. The Decoder reports: Google's AI overviews work nothing like traditional search results, the court argues. The AI rewrites and judges results "in its own words and according to its own structure," the ruling says. In the case at hand, for example, it opened with confident claims like "Yes, [company] is known for dubious business practices," then built its own structure with a summary, red flags for the alleged scam, and tips for users. The court also found that the AI overview made claims "that are not even made in the search results." None of the linked sources drew any connection between the plaintiffs and the shady companies the AI mentioned. The court called these "the defendant's own statements." Google built the AI, Google offered it to users, so Google owns what it produces, "because it alone has influence over the AI's offering and the algorithms with which the AI operates." The court also examined existing rulings from Germany's Federal Court of Justice (BGH), which gave traditional search engines and autocomplete limited liability. The BGH had argued that search engine operators were only liable as indirect infringers because they merely made third-party content findable. A proactive duty to check results would threaten how search engines work. The Munich court found that this reasoning doesn't apply to AI overviews. A regular search engine just points to outside websites. But AI overviews generate "independent, new, and substantive statements" by evaluating and combining content from various third-party sites. And only Google can check those statements, the court said, "at least by comparing the underlying third-party websites with its own statements based on them." The court also noted that the AI overview is "by no means absolutely necessary" for using the internet. Traditional search results already help users sort through information, the AI overview is just an extra feature. At the hearing, Google argued that users could check the linked sources themselves to verify if the AI summary was correct. It also said that these users knew "that information generated with AI should not be blindly trusted." The court rejected this.

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Utah Residents Sue Officials Over Kevin O'Leary Data Center Plan

Utah residents and a progressive nonprofit are suing officials over Kevin O'Leary's planned Stratos Project AI data center, arguing that the special authority overseeing it gives unelected officials too much control over land use, taxation, public health, and local governance. The lawsuit comes as O'Leary has agreed to shrink the proposed 40,000-acre project by 75% amid mounting political and community pushback. NBC News reports: The lawsuit was filed Wednesday in Utah's 3rd District Court by the Alliance for a Better Utah and the group of anonymous residents. The plaintiffs hope to challenge the constitutionality of the Military Installation Development Authority (MIDA) -- a special entity that oversees the data center's proposal -- and its approval of the project, a spokesperson for the nonprofit said. Attorney David Irvine, who is representing the plaintiffs, alleges that MIDA is exercising powers as an unelected body that "the Utah Constitution never authorized." "Under the Stratos plan, it would hold permanent, irrevocable control over public health, safety, taxation, and land use across tens of thousands of acres of Box Elder County, with no voter recourse," he said in a statement. The lawsuit alleges that allowing MIDA to oversee the data center's development "irrevocably" cuts off Box Elder County citizens' rights by not allowing sufficient public input in the project. "The Stratos Project Area Plan, and actions taken by MIDA and the Commission to enact the same, puts lawmaking power respecting questions of public health, safety, welfare, morals, taxation, zoning, land use, and the like, in relation to a significant swath of county territory in a non-elected MIDA Board," the complaint reads. In addition to MIDA and the Box Elder County Commission, the lawsuit names Utah Senate President J. Stuart Adams and state Sen. Jerry Stevenson, who also serve as MIDA board members. Irvine said Adams and Stevenson's presence on the MIDA board as active legislators "appears to violate the prohibition on holding more than one office of public trust simultaneously," and claimed this should render the data center's approval "null and void."

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Supreme Court Sides With Trump Administration On Federal Regulation of Telecom Companies

An anonymous reader quotes a report from the Associated Press: The Supreme Court sided with the Trump administration Thursday in upholding the power of federal regulators to enforce data privacy laws on telecommunications companies. The 8-1 decision (PDF) preserved one of the Federal Communications Commission's key tools, though the companies also won a concession from the Republican administration that could shift the regulatory landscape. The appeal from telecommunications giants Verizon and AT&T challenged a combined $100 million in penalties imposed after the agency determined that the companies had failed to safeguard customer location data. The companies argued that the FCC's process was unconstitutional because it gave them little opportunity to tell their side of the story in front of a jury. The administration defended the fines are an essential regulatory tool. But the government also said companies did not have to pay the penalties right away, a regulatory shift in the companies' favor. The Supreme Court agreed, affirming the FCC's power to order fines when challenges are still available. "The orders at issue did not settle the carriers' legal obligations because, stated simply, they did not create an obligation to pay," Chief Justice John Roberts wrote for the majority. [...] Other agencies use similar enforcement methods, so a sweeping victory for AT&T and Verizon could have had widespread effects, advocates said.

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Florida Sues OpenAI and CEO Sam Altman, Accusing Them of Putting Profit Over Safety

Florida's attorney general has sued (PDF) OpenAI and CEO Sam Altman, alleging the company prioritized growth and market value over user safety and failed to adequately warn about risks tied to ChatGPT. The lawsuit, the first by a U.S. state over OpenAI safety concerns, is separate from a criminal investigation the state opened into OpenAI in April. Variety reports: In the 83-page complaint filed in Florida circuit court, the state claimed OpenAI's rise was backed by "a web of deceit and the exploitation of users (including Floridians), leveraging their data and safety to boost OpenAI's market value at unacceptable costs." The state wants to hold Altman "personally liable for the harm he has caused Floridians through his reckless and willful conduct as founder and CEO of OpenAI, including his utter disregard for the risk to human life caused by his firms' conduct." [...] Throughout the complaint, filed in the state's circuit court of the 10th judicial circuit, the State of Florida claimed OpenAI's "careless introduction" of ChatGPT had led to an increase in murders and suicides. The suit alleged Florida's minors have "become addicted to a tool that feigns human compassion to collect their data with no parental oversight." It cited instances in the past year of the alleged use of ChatGPT to plan a mass shooting at Florida State University in April 2025 and the murders of two graduate students at the University of South Florida in April. "This litany of harms is driven by Defendants' insatiable quest to win the AI arms race and amass large fortunes, despite knowing the danger of ChatGPT," the state wrote in the complaint. Florida accused OpenAI of four counts of deceptive and unfair trade practices, two counts of negligence, two counts of violating product liability laws, one count of fraudulent misrepresentation and another count of causing a public nuisance. It is seeking civil penalties and court orders demanding OpenAI restrict the data it collects from minors and that it stop "continuing to misrepresent or fail to warn of the risks of ChatGPT." "People are getting hurt, parents are getting deceived and they need to pay for it by opening up their checkbooks and changing the program to ensure there are parental controls," Uthmeimer said at a press conference Monday.

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Supreme Court Lets Vermont's Meta Lawsuit Proceed, Opening Door To 50-State Legal Wave

An anonymous reader quotes a report from Fortune: The Supreme Court on Tuesday rejected a push to avoid a lawsuit alleging that Facebook and Instagram harmed young users, a decision that comes as social media companies increasingly face legal scrutiny. Parent company Meta appealed after Vermont's highest court allowed a suit filed by its attorney general in 2023 to move forward. The company is facing similar lawsuits from states across the country, accusing it of knowingly designing addictive features. Meta had argued that it can't be sued in Vermont court because neither the company nor the app design has specific ties to the state. Vermont countered that the sites' large number of teen users gives its courts jurisdiction. The Supreme Court declined to hear the appeal in a brief, unexplained order, as is typical. The procedural decision comes after court losses for Meta and YouTube in social media addiction lawsuits in California and New Mexico. [...] Meta, for its part, has said that it has already introduced dozens of tools to support teens and their families and suggested it would have worked with the states on standards for youth social media use. Vermont Attorney General Charity Clark applauded the decision, saying it affirms "that companies that choose to do business in Vermont, like Meta, can be held accountable when they harm kids."

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