Month: September 2024

AI not a US election gamechanger yet

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Washington — When the U.S. announced the seizure of 32 internet domains tied to Russian efforts to ply American voters with disinformation ahead of November’s presidential election, prosecutors were quick to note the use of artificial intelligence, or AI.

The Russian operation, known as Doppelganger, drove internet and social media users to the fake news using a variety of methods, the charging documents said, including advertisements that were “in some cases created using artificial intelligence.”

AI tools were also used to “generate content, including images and videos, for use in negative advertisements about U.S. politicians,” the indictment added.

And Russia is far from alone in turning to AI in the hopes of swaying U.S. voters.

“The primary actors we’ve seen for election use of this are Iran and Russia, although as various private companies have noticed, China also has used artificial intelligence for spreading divisive narratives in the United States,” according to a senior intelligence official, who spoke on the condition of anonymity in order to discuss sensitive information.

“What we’ve seen is artificial intelligence is used by foreign actors to make their content more quickly and convincingly tailor their synthetic content in both audio and video forms,” the official added. 

But other U.S. officials say the use of AI to spread misinformation and disinformation in the lead-up to the U.S. election has so far failed to live up to some of the more dire warnings about how deepfakes and other AI-generated material could shake-up the American political landscape.

“Generative AI is not going to fundamentally introduce new threats to this election cycle,” according to Cait Conley, senior adviser to the director of the Cybersecurity and Infrastructure Security Agency, the U.S. agency charged with overseeing election security.

“What we’re seeing is consistent with what we expected to see,” Conley told VOA.

AI “is exacerbating existing threats, in both the cyber domain and the foreign malign influence operation-disinformation campaigns,” she said. But little of what has been put out to this point has shocked officials at CISA or the myriad state and local governments who run elections across the country.

“This threat vector is not new to them,” Conley said. “And they have taken the measures to ensure they’re prepared to respond effectively.” 

As an example, Conley pointed to the rash of robocalls that targeted New Hampshire citizens ahead of the state’s first in the nation primary in January, using fake audio of U.S. President Joe Biden to tell people to stay home and “save your vote.”

New Hampshire’s attorney general quickly went public, calling the robocalls an apparent attempt to suppress votes and telling voters the incident was under investigation.

This past May, prosecutors indicted a Louisiana political consultant in connection with the scheme.

More recently, the alleged use of AI prompted a celebrity endorsement in the U.S. presidential race by pop star Taylor Swift.

“Recently I was made aware that AI of ‘me’ falsely endorsing Donald Trump’s presidential run was posted to his site,” Swift wrote in an Instagram social media post late Tuesday. 

“It brought me to the conclusion that I need to be very transparent about my actual plans for this election as a voter,” she wrote, adding, “I will be casting my vote for Kamala Harris and Tim Walz.”

But experts and analysts say for all the attention AI is getting, the use of such technology in attacks and other influence operations has been limited.

“There’s not a tremendous amount of it in the wild that’s particularly successful right now, at least to my knowledge,” said Katie Gray, a senior partner at In-Q-Tel, the CIA’s technology-focused, not-for-profit strategic investment firm.

“Most attackers are not using the most sophisticated methods to penetrate systems,” she said on September 4 at a cybersecurity summit in Washington.

Others suggest that at least for the moment, the fears surrounding AI have outpaced its usefulness by malicious actors.

‘We jump to the doomsday science fiction,” said Clint Watts, a former FBI special agent and counterterror consultant who heads up the Microsoft Threat Analysis Center (MTAC).

“But instead, what we’re seeing is the number one challenge to all of this right now is access, just getting to the [AI] tools and accessing them,” he said, speaking like Gray at the cybersecurity summit.

Over the past 14 months, MTAC has logged hundreds of instances of AI use by China, Russia and Iran, Watts said. And analysts found that Moscow and Tehran, in particular, have struggled to get access to a fully AI toolbox.

The Russians “need to use their own tools from the start, rather than Western tools, because they’re afraid they’ll get knocked off those systems,” Watts said.

Iran is even further behind.

“They’ve tried different tools,” Watts said. “They just can’t get access to most of them for the most part.”

U.S. adversaries also appear to be having difficulties with the underlying requirements to make AI effective.

“To do scaled AI operations is not cheap,” Watts said. “Some of the infrastructure and the resources of it [AI], the models, the data it needs to be trained [on] – very challenging at the moment.”

And Watts said until the products generated by AI get better, attempted deepfakes will likely have trouble resonating with the targeted audiences.

“Audiences have been remarkably brilliant about detecting deepfakes in crowds. The more you watch somebody, the more you realize a fake isn’t quite right,” according to Watts. “The Russian actors that we’ve seen, all of them have tried deepfakes and they’ve moved back to bread and butter, small video manipulations.”
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US inflation reaches 3-year low as Federal Reserve prepares to cut interest rates 

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Washington — The post-pandemic spike in U.S. inflation eased further last month as year-over-year price increases reached a three-year low, clearing the way for the Federal Reserve to cut interest rates next week.

Wednesday’s report from the Labor Department showed that consumer prices rose 2.5% in August from a year earlier. It was the fifth straight annual drop and the smallest such increase since February 2021. From July to August, prices rose just 0.2%.

Excluding volatile food and energy costs, so-called core prices rose 3.2% in August from 12 months earlier, the same as in July. On a month-to-month basis, core prices rose 0.3% last month, a pickup from July’s 0.2% increase. Economists closely watch core prices, which typically provide a better read of future inflation trends.

For months, cooling inflation has provided gradual relief to America’s consumers, who were stung by the price surges that erupted three years ago, particularly for food, gas, rent and other necessities. Inflation peaked in mid-2022 at 9.1%, the highest rate in four decades.

Fed officials have signaled that they’re increasingly confident that inflation is falling back to their 2% target and are now shifting their focus to supporting the job market, which is steadily cooling. As a result, the policymakers are poised to begin cutting their key rate from its 23-year high in hopes of bolstering growth and hiring.

A modest quarter-point cut is widely expected next week. Over time, a series of rate cuts should reduce the cost of borrowing across the economy, including for mortgages, auto loans and credit cards.

The latest inflation figures could inject themselves into the presidential race in its final weeks. Former President Donald Trump has heaped blame on Vice President Kamala Harris for the jump in inflation, which erupted in early 2021 as global supply chains seized up, causing severe shortages of parts and labor. Harris has proposed subsidies for home buyers and builders in an effort to ease housing costs and backs a federal ban on price-gouging for groceries. Trump has said he would boost energy production to try to reduce overall inflation.

A key reason why inflation eased again in August was that gas prices tumbled by about 10 cents a gallon last month, according to the Energy Inflation Administration, to a national average of about $3.29.

Economists also expect the government’s measures of grocery prices and rents to rise more slowly. Though food prices are roughly 20% more expensive than before the pandemic, they have barely budged over the past year.

Another potential driver of slower inflation is that the cost of new apartment leases has started to cool as a stream of newly built apartments have been completed.

According to the real estate brokerage Redfin, the median rent for a new lease rose just 0.9% in August from a year earlier, to $1,645 a month. But the government’s measure includes all rents, including those for people who have been in their apartments for months or years. It takes time for the slowdown in new rents to show up in the government’s data. In July, rental costs rose 5.1% from a year ago, according to the government’s consumer price index.

Americans’ paychecks are also growing more slowly — an average of about 3.5% annually, still a solid pace — which reduces inflationary pressures. Two years ago, wage growth was topping 5%, a level that can force businesses to sharply raise prices to cover their higher labor costs.

In a high-profile speech last month, Fed Chair Jerome Powell noted that inflation was coming under control and suggested that the job market was unlikely to be a source of inflationary pressure.

Consumers have propelled the economy for the past three years. But they are increasingly turning to debt to maintain their spending and credit card, and auto delinquencies are rising, raising concerns that they may have to rein in their spending soon. Reduced consumer spending could lead more employers to freeze their hiring or even cut jobs.
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European business confidence in China is at an all-time low, report says 

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HONG KONG — China must reprioritize economic growth and reforms and boost investor confidence by leveling the playing field for all companies in the country, a European business group said Wednesday. 

With “business confidence now at an all-time low” over lagging domestic demand and overcapacity in certain industries, the annual European Business in China Position Paper called on China to open its economy and allow a more free market to determine resource allocation. It also recommended introducing policies to boost domestic demand. 

Profit margins in China are at or below the global average for two-thirds of the companies surveyed earlier in the year, according to the paper published Wednesday by the European Chamber of Commerce in China. 

In August, China filed a complaint with the World Trade Organization over European Union tariffs on electric vehicles made in China. It also launched anti-dumping and subsidies investigations of European dairy products, brandy and pork exports. The tit-for-tat actions have raised fears that a trade war may break out. 

Many European businesses are deciding that the returns on investments in the world’s second-largest economy are not worth the risks, due to issues including China’s economic slowdown and a politicized business environment. 

“For some European headquarters and shareholders, the risks of investing in China are beginning to outright the returns, a trend that will only intensify if key business concerns are left unaddressed,” Jens Eskelund, president of China’s European Union Chamber of Commerce, said in a message at the beginning of the paper. 

The European Chamber’s paper proposes over 1,000 recommendations for China to resolve challenges and problems faced by European businesses operating in the country and boost investor confidence. Among them are calls for China to refrain from punishing companies for the actions of their home governments. Others include ensuring that policy packages for attracting foreign investment are followed by implementation, and refraining from “erratic policy shifts.” 

The report also recommended that the EU proactively engage with China and keep its responses “measured and proportionate” when disagreements arise. 
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China takes lead in critical technology research after ‘switching places’ with US

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SINGAPORE — An Australian think tank that tracks tech competitiveness says China is now the world leader in research on almost 90% of critical technologies. In a newly released report, the research group adds there is also a high risk of Beijing securing a monopoly on defense-related tech, including drones, satellites and collaborative robots — those that can work safely alongside humans.

Analysts say the huge leap forward for China is the result of heavy state investment over the past two decades. They add that despite the progress, Beijing is still dependent on other countries for key tech components and lacks self-sufficiency.

The report from the government-funded Australian Strategic Policy Institute, or ASPI, released last Thursday, says China led the way in research into 57 out of 64 advanced technologies in the five years from 2019-2023.

ASPI’s Critical Technology Tracker ranks countries’ innovation capabilities based on the number of appearances in the top 10% of research papers. It focuses on crucial technologies from a range of fields including artificial intelligence, biotechnology, cyber and defense.

The report found that “China and the United States have effectively switched places as the overwhelming leader in research in just two decades.”

China led in only three of the 64 technologies between 2003 and 2007 but has shot up in the rankings, replacing the U.S., which is now a frontrunner in just seven critical technologies.

Josh Kennedy-White is a technology strategist based in Singapore. He says China’s huge leap is a “direct result of its aggressive, state-driven research and development investments over the past two decades.”

He adds that the shift toward China is “particularly stark in fields like artificial intelligence, quantum computing and advanced aircraft engines, where China has transitioned from a laggard to a leader in a relatively short period.”

ASPI also determines the risk of countries holding a monopoly on the research of critical technologies. They currently classify 24 technologies as “high risk” of being monopolized — all by Beijing.

Ten technologies are newly classified as “high risk” this year, with many of them linked to the defense industry.

“The potential monopoly risk in 24 technology areas, especially those in defense-related fields like radars and drones, is concerning in the current and future geopolitical context,” Tobias Feakin, founder of consultancy firm Protostar Strategy, told VOA.

Chinese President Xi Jinping has sought to boost his country’s advanced manufacturing capabilities with the ambitious “Made in China 2025” initiative.

The policy, launched in 2015, aims to strengthen Beijing’s self-reliance in critical sectors and make China a global tech powerhouse.

Xi, according to Feakin, views advanced technologies as “strategic priorities for China’s development, national security and global competitiveness.”

He adds that technologies are seen as a “central component of China’s long-term economic and geopolitical goals.”

Beijing’s ambitions are being closely watched in Washington, with the Biden administration working to limit China’s access to advanced technology.

Last week, the U.S. introduced new export controls on critical technology to China, including chip-making equipment and quantum computers and components.

That announcement came shortly after U.S. national security adviser Jake Sullivan made his first ever visit to Beijing. He met with Xi and Chinese Foreign Minister Wang Yi.

Sullivan told reporters that Washington “will continue to take necessary action to prevent advanced U.S. technologies from being used to undermine national security.”

The continued efforts to curb China’s chip industry mean that Beijing must look further afield for advanced technology.

“Even though it leads in areas like artificial intelligence and 5G, China still depends on Taiwan, the U.S. and South Korea to produce high-end semiconductors”, Kennedy-White told VOA.

Describing this as China’s Achilles’ heel, Kennedy-White says the lack of self-sufficiency in the semiconductor industry could “stunt Beijing’s progress in artificial intelligence, quantum computing and military applications.”

As China continues its dominance in critical technology research, questions have been raised over exactly how the country is making these breakthroughs.

Last October, officials from the Five Eyes intelligence alliance (Australia, Canada, New Zealand, the United Kingdom and the United States) issued a joint statement accusing China of stealing intellectual property. U.S. FBI director Christopher Wray described it as an “unprecedented threat.”

Kennedy-White, managing director of Singapore-based venture catalyst firm DivisionX Global, agrees with this assessment. He says China’s jump up the ASPI rankings is “not entirely organic.”

“There is a correlation between China’s rise in certain technologies and allegations of intellectual property theft,” he added.

ASPI also recommends ways for other countries to close the gap on China. It advises the AUKUS alliance of Australia, the U.K. and the U.S. to join forces with Japan and South Korea to try to catch up.

The report also highlights the emergence of India as a “key center” of global research innovation and excellence.

The South Asian nation now ranks in the top five countries for 45 out of the 64 technologies that are tracked by ASPI. It’s a huge gain compared with 2003-2007, when India sat in the top five for only four technologies.

Feakin says countries across the Asia-Pacific “will benefit from leveraging India’s growing technology expertise and influence.”

It will also provide a counterbalance to “overdependence on China’s technology supply chain,” he added.
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Google, Apple lose court fights against EU, owe billions in fines, taxes

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LONDON — Google lost its last bid to overturn a European Union antitrust penalty, after the bloc’s top court ruled against it Tuesday in a case that came with a whopping fine and helped jumpstart an era of intensifying scrutiny for Big Tech companies.

The European Union’s top court rejected Google’s appeal against the $2.7 billion penalty from the European Commission, the 27-nation bloc’s top antitrust enforcer, for violating antitrust rules with its comparison shopping service.

Also Tuesday, Apple lost its challenge against an order to repay $14.34 billion in back taxes to Ireland, after the European Court of Justice issued a separate decision siding with the commission in a case targeting unlawful state aid for global corporations.

Both companies have now exhausted their appeals in the cases that date to the previous decade. Together, the court decisions are a victory for European Commissioner Margrethe Vestager, who is expected to step down next month after 10 years as the commission’s top official overseeing competition.

Experts said the rulings illustrate how watchdogs have been emboldened in the years since the cases were first opened.

One of the takeaways from the Apple decision “is the sense that, again, the EU authorities and courts are prepared to flex their [collective] muscles to bring Big Tech to heel where necessary,” Alex Haffner, a competition partner at law firm Fladgate, said by email.

The shopping fine was one of three huge antitrust penalties for Google from the commission, which punished the Silicon Valley giant in 2017 for unfairly directing visitors to its own Google Shopping service over competitors.

“We are disappointed with the decision of the Court, which relates to a very specific set of facts,” Google said in a brief statement.

The company said it made changes to comply with the commission’s decision requiring it to treat competitors equally. It started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services.

“Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services,” Google said.

European consumer group BEUC hailed the court’s decision, saying it shows how the bloc’s competition law “remains highly relevant” in digital markets.

“It is a good outcome for all European consumers at the end of the day,” Director General Agustín Reyna said in an interview. “It means that many smaller companies or rivals will be able to go to different comparison shopping sites. They don’t need to depend on Google to reach out to customers.”

Google is still appealing its two other EU antitrust cases: a 2018 fine of $4.55 billion involving its Android operating system and a 2019 penalty of $1.64 billion over its AdSense advertising platform.

Despite the amounts of money involved, the adverse rulings will leave a small financial dent in one of the world’s richest and most profitable companies. The combined bill of $17 billion facing Apple and Alphabet, Google’s parent company, represents 0.3% of their combined market value of $5.2 trillion.

Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into Big Tech companies and drew up a new law to prevent them from cornering online markets, known as the Digital Markets Act.

Google is also now facing pressure over its lucrative digital advertising business from the EU and Britain, which are carrying out separate investigations, and the United States, where the Department of Justice is taking the company to federal court over its alleged dominance in ad tech.

Apple failed in its last bid to avoid repaying its Irish taxes Tuesday after the Court of Justice upheld a lower court ruling against the company, in the dispute that dates back to 2016.

The case drew outrage from Apple, with CEO Tim Cook calling it “total political crap.”
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Zimbabwe rolls out hefty fines for poor telecommunications services

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Harare, Zimbabwe — Zimbabwe’s government has introduced hefty fines of up to $5,000 for poor service in the country’s telecommunications industry.

In a statement Tuesday, Zimbabwe’s ICT Minister Tatenda Mavetera said the government will levy fines of between $200 and $5,000 per infringement for telecommunications companies and internet providers who fail to give reliable service.

Willard Shoko, an independent high-speed internet consultant, said the new fines could result in a solid telecom industry that can compete in the entire southern African region.

“The motive behind that is to improve internet for the end user. But I think they should also consider improving the infrastructure sharing and also collaboration to improve internet, not only for the region but also for Zimbabwe, because this is the foundation of the digital economy,” Shoko said. “I think they should also think about how the internet can be improved and the partnership that can help improve the internet.”

Fungai Mandiveyi, media and corporate affairs executive at Econet Wireless, Zimbabwe’s biggest telecommunications company, said the new regulations will be easier to comply with than those that existed before.

“The new provisions introduce a new model of penalties, unlike the blanket penalty that existed in the previous statutory instrument,” Mandiveyi said. “The new penalties are now linked to specific quality of service breaches, that have also been clearly spelled out. There is now more clarity in what constitutes a service breach, and what penalty goes with a specific breach of the quality of service.”

However, Christopher Musodza, an independent digital policy consultant, said the pressure to maintain internet service during Zimbabwe’s frequent power outages may present challenges for telecom companies.

“For the telecoms provider, it’s going to be tough,” he said. “The economy is not performing as anyone would want. We have got issues to do with long hours of load shedding, so service providers have to power their base stations for long hours to ensure that they meet the key performance indicators. So, imagine running generators for most of the day to ensure that you avoid a fine. (I’m) not sure what will cost more; trying to keep up with these economic factors or just paying the fine.”

Zimbabweans have long complained about poor and expensive telecommunication service. Shoko said that is the reason they are welcoming the government’s decision this month to approve Starlink’s license to operate in Zimbabwe.

The U.S.-based satellite company, owned by Elon Musk, has established a presence in several other African countries, including Botswana, Kenya, Mozambique, Nigeria, Rwanda, and Zambia.

“They can now easily get internet anywhere in Zimbabwe at an affordable price, thereby bridging the digital divide. That’s one major thing for the end user,” Shoko said of Starlink’s presence.

“For the local ISPs [internet service providers], there is massive opportunity that Zimbabwe can take advantage of — investment in ground infrastructure,” he added. “Currently in Africa, Nigeria has only two ground stations that are servicing the whole of Africa. If the Zimbabwe government and local ISPs can work together with Starlink to provide ground stations in Zimbabwe, this will allow local ISPs to provide internet to Starlink, and provide better latencies in the region. So this will improve Starlink internet for local Zimbabweans, as well as the region.”
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African nations boost gold reserves amid economic uncertainty

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Nairobi, Kenya — Central banks in Africa are turning to gold to protect themselves from economic and geopolitical instability and to diversify their financial portfolios.

In September 2023, the price of gold per ounce was $1,900. A year later, it is selling for $2,500. According to the World Gold Council, an international trade association for the gold industry, demand for the metal is expected to increase in the next 10 months despite the soaring prices.

Some experts, such as Carlos Lopes, a professor at the Nelson Mandela School of Public Governance in South Africa, attribute the African central banks’ gold rush to the need to protect their local currencies.

“In the last few years, because of inflation and all these movements for stimulation packages and the rest, the returns are extremely low,” Lopes said. “On the other hand, gold is going up in terms of price because these big banks are also going after gold as a protection. So, it is a very good investment to go to gold.”

It helps that African gold production has grown by 60% since 2010, according to the World Gold Council, higher than a global increase of 26%.

In 2022, Zimbabwe launched a gold-backed currency to curb inflation and volatility in foreign exchange rates.

Ghana and Uganda have been buying gold from artisanal miners to bolster their shrinking foreign currency reserves.

Ghana, Africa’s largest gold producer, plans to buy oil from other countries and pay them in gold to ease pressure on local currency and lower high fuel prices.

Some economists say gold cannot solve the economic problems of some African countries.

According to the World Gold Council, countries should hold onto gold for its long-term value, performance during crises and its role as an effective portfolio diversifier.

Bright Oppong Afum, a senior lecturer at the University of Mines and Technology in Ghana, said some African countries want to use gold to reduce their reliance on the global financial system.

“If sanctions are laid on you, an African country, we know the devastating effects that it will have,” he said. “The African countries are developing, or they are young, and they do not want to receive some harsh sanctions that will negatively or strongly impact the economics. And because of that, they are strategically reducing their dependencies on these external countries.”

Afum said that although some Africans know and understand the value of gold, many trade away the metal to satisfy their daily needs.

“So, they just find a mere buyer who will … exploit them,” he said.

The African Continental Free Trade Area introduced the Pan-African Payment and Settlement System, enabling countries to trade in local currencies. Experts say some continental payment systems, if implemented, can ease the economic pressures some countries are grappling with.

That, in turn, might make them less dependent on gold.
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First doses of mpox vaccine from US arrive in DR Congo

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KINSHASA, Democratic Republic of Congo — Authorities in the Democratic Republic of Congo said that 50,000 doses of mpox vaccine from the United States arrived in the country on Tuesday, a week after the first batch arrived from the European Union.

Adults in Equateur, South Kivu and Sankuru, the three most-affected provinces, will be vaccinated first, starting on October 2, said Cris Kacita Osako, coordinator of the DRC’s Monkeypox Response Committee.

Last week, the first batch of mpox vaccines arrived in the capital, Kinshasa, the center of the outbreak. The 100,000 doses of the JYNNEOS vaccine, manufactured by the Danish company Bavarian Nordic, were donated by the EU through HERA, the bloc’s agency for health emergencies. Another 100,000 were delivered over the weekend.

The 50,000 doses from the U.S. will be of the same JYNNEOS vaccine.

The 250,000 doses are just a fraction of the 3 million doses authorities have said are needed to end the mpox outbreaks in the DRC, the epicenter of the global health emergency. EU countries pledged to donate more than 500,000 others, but the timeline for their delivery remained unclear.

Since the start of 2024, there have been 5,549 confirmed mpox cases across the continent, with 643 associated deaths, representing a sharp escalation in infections and fatalities compared with previous years. The cases in the DRC constituted 91% of the total number. Most mpox infections in the DRC and Burundi, the second-most-affected country, are in children under age 15.

Last week, the Africa Centers for Disease Control and Prevention and the World Health Organization launched a continentwide response plan to the outbreak of mpox, three weeks after the World Health Organization declared outbreaks in 12 African countries a global emergency.

The DRC issued an emergency approval of the vaccine, which has already been used in Europe and the United States in adults. For the moment, the rollout will be reserved for adults, with priority groups being those who have been in close contact with infected people and sex workers, Africa CDC Director-General Dr. Jean Kaseya told reporters last week.

The European Medicines Agency is examining additional data to be able to administer it to children ranging in age from 12 to 17, which could happen at the end of the month, HERA Director-General Laurent Muschel said.

The next batch of mpox vaccines will come from Japan and could arrive as early as this weekend, Kacita Osako told the AP, without specifying how many doses.
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Google loses final EU court appeal against $2.7 billion fine in antitrust shopping case  

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London — Google lost its final legal challenge on Tuesday against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. 

The European Union’s Court of Justice upheld a lower court’s decision, rejecting the company’s appeal against the $2.7 billion penalty from the European Commission, the 27-nation bloc’s top antitrust enforcer. 

“By today’s judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court,” the court said in a press release summarizing its decision. 

The commission’s punished the Silicon Valley giant in 2017 for unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-dollar fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. 

“We are disappointed with the decision of the Court, which relates to a very specific set of facts,” Google said in a brief statement. 

The company said it made changes in 2017 to comply with the commission’s decision requiring it to treat competitors equally. It started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. 

“Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services,” Google said. 

At the same time, the company appealed the decision to the courts. But the EU General Court, the tribunal’s lower section, rejected its challenge in 2021 and the Court of Justice’s adviser later recommended rejecting the appeal. 

European consumer group BEUC hailed the court’s decision, saying it shows how the bloc’s competition law “remains highly relevant” in digital markets. 

“Google harmed millions of European consumers by ensuring that rival comparison shopping services were virtually invisible,” director general Agustín Reyna said. “Google’s illegal practices prevented consumers from accessing potentially cheaper prices and useful product information from rival comparison shopping services on all sorts of products, from clothes to washing machines.” 
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Australia plans age limit to ban children from social media

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SYDNEY — Australia will ban children from using social media with a minimum age limit as high as 16, the prime minister said Tuesday, vowing to get kids off their devices and “onto the footy fields.”

Federal legislation to keep children off social media will be introduced this year, Anthony Albanese said, describing the impact of the sites on young people as a “scourge.”

The minimum age for children to log into sites such as Facebook, Instagram, and TikTok has not been decided but is expected to be between 14 and 16 years, Albanese said.

The prime minister said his own preference would be a block on users aged below 16.

Age verification trials are being held over the coming months, the center-left leader said, though analysts said they doubted it was technically possible to enforce an online age limit.

“I want to see kids off their devices and onto the footy fields and the swimming pools and the tennis courts,” Albanese said.

“We want them to have real experiences with real people because we know that social media is causing social harm,” he told national broadcaster ABC.

“This is a scourge. We know that there is mental health consequences for what many of the young people have had to deal with,” he said.

Australia’s conservative opposition leader Peter Dutton said he would support an age limit.

“Every day of delay leaves young kids vulnerable to the harms of social media and the time for relying on tech companies to enforce age limits,” he said.

‘Easy to circumvent’

But it is not clear that the technology exists to reliably enforce such bans, said the University of Melbourne’s associate professor in computing and information technology, Toby Murray.

“We already know that present age verification methods are unreliable, too easy to circumvent, or risk user privacy,” he said. 

Analysts warned that an age limit may not in any case help troubled children.

It “threatens to create serious harm by excluding young people from meaningful, healthy participation in the digital world,” said Daniel Angus, who leads the digital media research centre at Queensland University of Technology.

“There is logic in establishing boundaries that limit young people’s access,” said Samantha Schulz, senior sociologist of education at the University of Adelaide.

“However, young people are not the problem and regulating youth misses the more urgent task of regulating irresponsible social media platforms. Social media is an unavoidable part of young people’s lives.”

The prime minister said parents expected a response to online bullying and harmful material present on social media.

“These social media companies think they’re above everyone,” he told a radio interviewer.

“Well, they have a social responsibility and at the moment, they’re not exercising it. And we’re determined to make sure that they do,” he said.

Australia has been at the forefront of global efforts to regulate social media platforms, with its online safety watchdog bumping heads notably with Elon Musk’s X over the content it carries.

 
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Apple embraces AI craze with newly unleashed iPhone 16 lineup

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CUPERTINO, California — Apple on Monday charged into the artificial intelligence craze with a new iPhone lineup that marks the company’s latest attempt to latch onto a technology trend and transform it into a cultural phenomenon. 

The four different iPhone 16 models will all come equipped with special chips needed to power a suite of AI tools that Apple hopes will make its marquee product even more indispensable and reverse a recent sales slump. 

Apple’s AI features are designed to turn its often-blundering virtual assistant Siri into a smarter and more versatile sidekick, automate a wide range of tedious tasks, and pull off other crowd-pleasing tricks such as creating customized emojis within seconds. 

After receiving a standing ovation for Monday’s event, Apple CEO Tim Cook promised the AI package would unleash “innovations that will make a true difference in people’s lives.” 

But the breakthroughs won’t begin as soon as the new iPhones — ranging in price from $800 to $1,200 — hit the stores on September 20. 

Most of Apple’s AI functions will roll out as part of a free software update to iOS 18, the operating system that will power the iPhone 16 rolling out from October through December. U.S. English will be the featured language at launch, but an update enabling other languages will come out next year, according to Apple. 

It’s all part of a new approach that Apple previewed at a developers conference three months ago to create more anticipation for a next generation of iPhones amid a rare sales slump for the well-known devices. 

Since Apple’s June conference, competitors such as Samsung and Google have made greater strides in AI — a technology widely expected to trigger the most dramatic changes in computing since the first iPhone came out 17 years ago. 

Just as Apple elevated fledgling smartphones into a must-have technology in 21st-century society, the Cupertino, California, company is betting it can do something similar with its tardy arrival to artificial intelligence. 

‘Apple Intelligence’ 

To set itself apart from the early leaders in AI, the technology being baked into the iPhone 16 is being promoted as “Apple Intelligence.” Despite the unique branding, Apple’s new approach mimics many of the features already available in the Samsung Galaxy S24 released in January and the Google Pixel 9 that came out last month. 

“Apple could have waited another year for further development, but initial take up of AI- powered devices from the likes of Samsung has been encouraging, and Apple is keen to capitalize on this market,” said PP Foresight analyst Paolo Pescatore. 

As it treads into new territory, Apple is trying to preserve its longtime commitment to privacy by tailoring its AI so that most of its technological tricks can be processed on the device itself instead of relying on giant banks of computers located in remote data centers. When a task needs to connect to a data center, Apple promises it will be done in a tightly controlled way that ensures that no personal data is stored remotely. 

While corralling the personal information shared through Apple’s AI tools inherently reduces the chances that the data will be exploited or misused against a user’s wishes, it doesn’t guarantee iron-clad security. A device could still be stolen, for instance, or hacked through digital chicanery. 

For users seeking to access even more AI tools than being offered by the iPhone, Apple is teaming up with OpenAI to give users the option of farming out more complicated tasks to the popular ChatGPT chatbot. 

Although Apple is releasing a free version of its operating system to propel its on-device AI features, the chip needed to run the technology is only available on the iPhone 16 lineup and the high-end iPhone 15 models that came out a year ago. 

That means most consumers who are interested in taking advantage of Apple’s approach to AI will have to buy one of the iPhone 16 models – a twist that investors are counting on will fuel a surge in demand heading into the holiday season. 

The anticipated sales boom is the main reason Apple’s stock price has climbed by more than 10%, including a slight uptick Monday after the shares initially slipped following the showcase for the latest iPhones. 

Besides its latest iPhones, Apple also introduced a new version of its smartwatch that will include a feature to help detect sleep apnea as well the next generation of its wireless headphones, the AirPods Pro, that will be able to function as a hearing aid with an upcoming software update.
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China’s Xi, Spain’s Sanchez seek to ease EU-China trade disputes 

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beijing — Chinese President Xi Jinping on Monday urged visiting Spanish Prime Minister Pedro Sanchez to play a “constructive role” in improving strained ties between Bejing and the European Union. 

Sanchez for his part said he hoped the EU could avoid a trade war with China, even as Brussels weighs imposing tariffs on China-manufactured electric vehicles.

In their meeting, Xi also talked up deepening commercial ties between China and Spain in sectors such as artificial intelligence, digital economy, new energy and other high-tech fields.

The Chinese leader said Beijing wanted to work with Brussels to further develop a China-EU relationship where the two maintain their independence and autonomy but also succeed together and bring benefit to the world, a Chinese readout said. 

“It is hoped Spain will continue to play a constructive role in this regard,” Xi added. 

Sanchez responded: “Spain wants to work constructively so that relations between the two are closer, richer and more balanced.” 

Beijing in June said that frictions with the EU over its plans to impose tariffs of up to 36.3% on its electric vehicles (EVs) could trigger a trade conflict, days after China announced a retaliatory anti-dumping probe into European pork imports. 

China in August then raised the stakes by opening an investigation into the bloc’s dairy subsidies. 

Prior to meeting Xi, Sanchez said at business events that Spain would work for a negotiated consensus to the EV dispute within the World Trade Organization and that a “trade war would benefit no one,” a government source said.  

Spain in 2023 exported $1.5 billion worth of the pork products that China will investigate, Chinese customs data showed, dwarfing the outbound shipments from the Netherlands and Denmark, which rank second and third. 

Spain also sold just under $50 million worth of targeted dairy products to China last year. 

But in a promising sign for Spain’s pork producers, a separate source with direct access to Xi’s meeting with Sanchez said the two leaders had “found harmony and understanding,” when asked about possible curbs on Spain’s outbound pork shipments. 

“The meeting went extremely well,” the source said, adding that both defended their positions while seeking agreements. 

Fair trade 

“We want to build bridges together to defend a trade order that’s fair,” Sanchez told China’s second-ranking official, Premier Li Qiang, before meeting Xi.  

Spain had a trade deficit of 17.27 billion euros ($19.07 billion) in the first half of this year, according to government statistics.  

Sanchez will also want reassurance that China will not strike back at Brussels by raising its own tariffs on imported large-engined gasoline-powered vehicles, as state Chinese media have suggested it might.  

Spain could also be impacted by the Chinese EV tariffs. Last week SEAT-CUPRA’s CEO said that an electric vehicle made in China and designed in Spain by CUPRA, which is owned by Germany’s Volkswagen, would be “wiped out” if the European Commission followed through with planned import tariffs on Chinese-made vehicles.  

Sanchez on Tuesday is expected to meet representatives of SAIC Motor, one of the Chinese automakers most affected by the EU tariffs, and sign a Memorandum of Understanding with greentech company Envision, which is building an EV battery plant in Spain. 

“In this increasingly geopolitical and economic context, as you have pointed out, we must work together to resolve differences through negotiation,” Sanchez told Xi. 

In an advisory vote in July, Spain, France and Italy supported the European Commission’s proposal to adopt additional duties on Chinese-made EVs on top of the bloc’s standard 10% tariff.  

But Beijing has been urging the EU’s member states to reject the curbs at a final vote on it in October.  

The tariffs would be implemented in addition to the EU’s standard 10% import tariff unless a qualified majority of 15 EU members representing 65% of the EU population vote against them.
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Black creatives band together to navigate fashion industry barriers

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A lack of opportunities has resulted in underrepresentation of Black designers, stylists and other creatives in the fashion industry. It’s also created a new wave of Black entrepreneurs who are passing on lessons of the business. Tina Trinh reports. (Camera and Produced by: Tina Trinh)
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Google faces new antitrust trial after ruling declaring search engine a monopoly

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ALEXANDRIA, Va. — One month after a judge declared Google’s search engine an illegal monopoly, the tech giant faces another antitrust lawsuit that threatens to break up the company, this time over its advertising technology.

The Justice Department and a coalition of states contend that Google built and maintains a monopoly over the technology that matches online publishers to advertisers. Dominance over the software on both the buy side and the sell side of the transaction enables Google to keep as much as 36 cents on the dollar when it brokers sales between publishers and advertisers, the government contends in court papers.

Google says the government’s case is based on an internet of yesteryear, when desktop computers ruled and internet users carefully typed precise World Wide Web addresses into URL fields. Advertisers now are more likely to turn to social media companies like TikTok or streaming TV services like Peacock to reach audiences.

In recent years, Google Networks, the division of the Mountain View, California-based tech giant that includes such services as AdSense and Google Ad Manager that are at the heart of the case, actually have seen declining revenue, from $31.7 billion in 2021 to $31.3 billion in 2023, according to the company’s annual reports.

The trial over the alleged ad tech monopoly begins Monday in Alexandria, Virginia. It initially was going to be a jury trial, but Google maneuvered to force a bench trial, writing a check to the federal government for more than $2 million to moot the only claim brought by the government that required a jury.

The case will now be decided by U.S. District Judge Leonie Brinkema, who was appointed to the bench by former President Bill Clinton and is best known for high-profile terrorism trials including Sept. 11 defendant Zacarias Moussaoui. Brinkema, though, also has experience with highly technical civil trials, working in a courthouse that sees an outsize number of patent infringement cases.

The Virginia case comes on the heels of a major defeat for Google over its search engine. which generates the majority of the company’s $307 billion in annual revenue. A judge in the District of Columbia declared the search engine a monopoly, maintained in part by tens of billions of dollars Google pays each year to companies like Apple to lock in Google as the default search engine presented to consumers when they buy iPhones and other gadgets.

In that case, the judge has not yet imposed any remedies. The government hasn’t offered its proposed sanctions, though there could be close scrutiny over whether Google should be allowed to continue to make exclusivity deals that ensure its search engine is consumers’ default option.

Peter Cohan, a professor of management practice at Babson College, said the Virginia case could potentially be more harmful to Google because the obvious remedy would be requiring it to sell off parts of its ad tech business that generate billions of dollars in annual revenue.

“Divestitures are definitely a possible remedy for this second case,” Cohan said “It could be potentially more significant than initially meets the eye.”

In the Virginia trial, the government’s witnesses are expected to include executives from newspaper publishers including The New York Times Co. and Gannett, and online news sites that the government contends have faced particular harm from Google’s practices.

“Google extracted extraordinary fees at the expense of the website publishers who make the open internet vibrant and valuable,” government lawyers wrote in court papers. “As publishers generate less money from selling their advertising inventory, publishers are pushed to put more ads on their websites, to put more content behind costly paywalls, or to cease business altogether.”

Google disputes that it charges excessive fees compared to its competitors. The company also asserts the integration of its technology on the buy side, sell side and in the middle assures ads and web pages load quickly and enhance security. And it says customers have options to work with outside ad exchanges.

Google says the government’s case is improperly focused on display ads and banner ads that load on web pages accessed through a desktop computer and fails to take into account consumers’ migration to mobile apps and the boom in ads placed on social media sites over the last 15 years.

The government’s case “focuses on a limited type of advertising viewed on a narrow subset of websites when user attention migrated elsewhere years ago,” Google’s lawyers write in a pretrial filing. “The last year users spent more time accessing websites on the ‘open web,’ rather than on social media, videos, or apps, was 2012.”

The trial, which is expected to last several weeks, is taking place in a courthouse that rigidly adheres to traditional practices, including a resistance to technology in the courtroom. Cellphones are banned from the courthouse, to the chagrin of a tech press corps accustomed at the District of Columbia trial to tweeting out live updates as they happen.

Even the lawyers, and there are many on both sides, are limited in their technology. At a pretrial hearing Wednesday, Google’s lawyers made a plea to be allowed more than the two computers each side is permitted to have in the courtroom during trial. Brinkema rejected it.

“This is an old-fashioned courtroom,” she said.
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Bomb blast hits Pakistan polio team amid national immunization drive 

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Islamabad — Authorities in northwestern Pakistan said Monday that a roadside bomb explosion injured at least 10 people, including anti-polio vaccinators and police personnel escorting them.  

 

The bombing in the South Waziristan district near the border with Afghanistan targeted a convoy carrying polio workers and their guards on the opening day of a nationwide immunization campaign.  

 

Area security and hospital officials reported that three health workers and six security personnel were among the victims. No group immediately claimed responsibility for the violence in a region where security forces are fighting militants linked to the outlawed Pakistani Taliban.  

 

Last week, Pakistan reported its 17th wild poliovirus case of the year from Islamabad, saying it paralyzed a child and marked the first infection in 16 years in the national capital.  

 

Pakistani health officials said in the lead-up to Monday’s polio campaign that it is designed to vaccinate more than 33 million children under five in 115 districts nationwide. 

 

Muhammad Anwarul Haq, coordinator of the National Emergency Operations Center for Polio Eradication, stated that the immunization drive would primarily focus on districts where “the virus has been detected and the risk of continued transmission and spread is really high.” 

 

Haq encouraged all parents and caregivers to ensure their children get vaccinated, lamenting that “parents have not always welcomed and opened their doors to the vaccinators when they visit their homes.” 

 

Pakistan and Afghanistan, which reported nine paralytic polio cases so far in 2024, are the only two remaining polio-endemic countries globally. Polio immunization campaigns have long faced multiple challenges in both countries, such as security and vaccine boycotts, dealing setbacks to the goal of eradicating the virus from the world.
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India isolates ‘suspected mpox case’

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New Delhi — India reported Sunday that it had put a “suspected mpox case” into isolation, assuring that the world’s most populous nation had “robust measures” in place, the health ministry said in a statement.

There have been no confirmed cases of mpox in India, a country of 1.4 billion people.

“A young male patient, who recently traveled from a country currently experiencing mpox transmission, has been identified as a suspect case of mpox,” the health ministry said in a statement.

“The patient has been isolated in a designated hospital and is currently stable,” it said, adding the samples “are being tested to confirm the presence of mpox.”

It gave no further details of where he may have contracted the disease.

“There is no cause of any undue concern,” the statement added.

“The country is fully prepared to deal with such (an) isolated travel related case and has robust measures in place to manage and mitigate any potential risk.”

Mpox’s resurgence and the detection in the Democratic Republic of Congo of a new strain, dubbed Clade 1b, prompted the World Health Organization to declare its highest international alert level on August 14.  

Mpox has also been detected in Asia and Europe.
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China plans to allow wholly foreign-owned hospitals in some areas

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Beijing — China said Sunday it would allow the establishment of wholly foreign-owned hospitals in nine areas of the country including the capital, as Beijing tries to attract more foreign investment to boost its flagging economy.

In a document on the official website of China’s commerce ministry, it said the new policy was a pilot project designed to implement a pledge the ruling Communist Party’s Central Committee led by President Xi Jinping made at its July plenum meeting held roughly every five years.

“In order to … introduce foreign investment to promote the high-quality development of China’s medical-related fields, and better meet the medical and health needs of the people, it is planned to carry out pilot work of expanding opening-up in the medical field,” according to the document.

The project will allow the establishment of such hospitals in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and Hainan — all relatively wealthy cities or provinces in eastern or southern China.

The new policy excludes hospitals practicing traditional Chinese medicine and “mergers and acquisitions of public hospitals,” the document read, adding that the specific conditions, requirements and procedures for setting up such foreign-owned hospitals would be detailed soon.

The policy also allows companies with foreign investors to engage in the development and application of gene and human stem cell technologies for treatment and diagnosis in the pilot free-trade zones of Beijing, Shanghai, Guangdong, and Hainan.

This includes registration, marketing and production of products that can be bought nationwide, according to the document.

The removal of restrictions on foreign investment in these fields comes as the world’s second-largest economy faces growing headwinds with flagging foreign business sentiment, one of the issues threatening growth.
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Greece to tax cruise ships to protect popular islands from overtourism

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Athens — Greece plans to impose a 20-euro ($22) levy on cruise ship visitors to the islands of Santorini and Mykonos during the peak summer season, in a bid to avert overtourism, Prime Minister Kyriakos Mitsotakis said Sunday. 

Greece relies heavily on tourism, the main driver of the country’s economy which is still recovering from a decadelong crisis that wiped out a fourth of its output. 

But some of its most popular destinations, including Santorini, an idyllic island of quaint villages and pristine beaches with 20,000 permanent residents, risk being ruined by mass tourism. 

Speaking at a news conference a day after outlining his main economic policies for 2025, Mitsotakis clarified that excessive tourism was only a problem in a few destinations. 

“Greece does not have a structural overtourism problem… Some of its destinations have a significant issue during certain weeks or months of the year, which we need to deal with,” he said. 

“Cruise shipping has burdened Santorini and Mykonos, and this is why we are proceeding with interventions,” he added, announcing the levy. 

Greek tourism revenues stood at about 20 billion euros ($22 billion) in 2023 on the back of nearly 31 million tourist arrivals. 

In Santorini, protesters have called for curbs on tourism, as in other popular holiday destinations in Europe, including Venice and Barcelona. 

Part of the revenues from the cruise shipping tax will be returned to local communities to be invested in infrastructure, Mitsotakis said. 

The government also plans to regulate the number of cruise ships that arrive simultaneously at certain destinations, while rules to protect the environment and tackle water shortages must also be imposed on islands, he said. 

Greece also wants to increase a tax on short-term rentals and ban new licenses for such rentals in central Athens to increase the housing stock for permanent residents, Mitsotakis said Saturday. 

The government will provide more details on some of the measures Monday.
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As Volkswagen weighs its first closure of a German auto plant, workers aren’t the only ones worried 

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FRANKFURT, Germany — Volkswagen is considering closing some factories in its home country for the first time in the German automaker’s 87-year history, saying it otherwise won’t meet the cost-cutting goals it needs to remain competitive.

CEO Oliver Blume also told employees Wednesday that the company must end a three-decade-old job protection pledge that would have prohibited layoffs through 2029.

The statements have stirred outrage among worker representatives and concern among German politicians.

Here are some things to know about the difficulties at one of the world’s best-known auto brands:

What is Volkswagen proposing and why?

Management says the company’s core brand that carries the company’s name needs to achieve 10 billion euros in cost savings by 2026. It recently became clear the Volkswagen Passenger Car division was not on track to do that after relying on retirements and voluntary buyouts to reduce the workforce in Germany.

With Europe’s car market smaller than before the coronavirus pandemic, Volkswagen says it now has more factory capacity than it needs — and carrying underused assembly lines is expensive.

Chief Financial Officer Arno Antlitz explained it like this to 25,000 workers who gathered at the company’s Wolfsburg home base: Europeans are buying around 2 million cars per year fewer than they did before the pandemic in 2019, when sales reached 15.7 million.

Since Volkswagen has roughly a quarter of the European market, that means “we are short of 500,000 cars, the equivalent of around two plants,” Antlitz told the workers.

“And that has nothing to do with our products or poor sales performance. The market simply is no longer there,” he said.

Does Volkswagen make money?

The Volkswagen Group, whose 10 brands include SEAT, Skoda, CUPRA and commercial vehicles, turned an operating profit of 10.1 billion euros ($11.2 billion) in the first half of this year, down 11% from last year’s first-half figure.

Higher costs outweighed a modest 1.6% increase in sales, which reached 158.8 billion euros but were held down by sluggish demand. Blume called it “a solid performance” in a “demanding environment.” Volkswagen’s luxury brands, which include Porsche, Audi and Lamborghini, are selling better than VW models.

So why is Volkswagen struggling?

The discussion about reducing costs focuses on the core brand and its workers in Germany. Volkswagen’s passenger car division recorded a 68% earnings drop in the second quarter, and its profit margin was a bare 0.9%, down from 4% in the first quarter.

One reason is the division took the bulk of the 1 billion euros that went to job buyouts and other restructuring costs. But growing costs, including for higher wages, and sluggish sales of the company’s line of electric vehicles are a deeper problem. On top of that, new, competitively priced competitors from China are increasing their share of the European market.

Volkswagen must sell more electric cars to meet ever-lower European Union emission limits that take effect starting next year. Yet the company is seeing lower profit margins from those vehicles due to high battery costs and weaker demand for EVs in Europe due to the withdrawal of consumer subsidies and the slow rollout of public charging stations.

Meanwhile, VW’s electric vehicles also face stiff competition in China from models made by local companies.

The world’s automakers are in a battle for the future, spending billions to pivot to lower-emission electric cars in a race to come up with vehicles that are competitive on price and have enough range to persuade buyers to switch. China has dozens of carmakers making electric cars more cheaply than their European equivalents. Increasingly, those cars are being sold in Europe.

Profits have also declined at Germany’s BMW and Mercedes-Benz thanks to the same pressures.

Why are VW’s proposed factory and job cuts a big deal in Germany?

Volkswagen has 10 assembly and parts plants in Germany, where 120,000 of its 684,000 workers worldwide are based. As Europe’s largest carmaker, the company is a symbol of the country’s consumer prosperity and economic growth after World War II.

It has never closed a German factory before. VW last closed a plant in 1988 in Westmoreland, Pennsylvania; its Audi division is in discussions about closing an underutilized plant in Belgium.

Far-right parties fueled by popular disenchantment with German Chancellor Olaf Scholz’s quarreling, three-party coalition government scored major gains in Sept. 1 elections in Thueringia and Saxony states, located in the former communist East Germany. Nationwide polls show the government’s approval rating at a low point. Plant closings are the last thing the Scholz government needs.

The chancellor spoke with VW management and workers after the possible plant closings became known but was careful to stress that the decision is a matter for the company and its workers.

Why hasn’t Volkswagen already made the cost cuts management wants?

Employee representatives have a lot of clout at Volkswagen. They hold half the seats on the board of directors. The state government, which is a part-owner of the company, also has two board seats — together with the employee representatives a majority — and 20% of the voting rights at the company. Lower Saxony Gov. Stephan Weil has said the company needs to address its costs but should avoid plant closings.

That means management will have to negotiate — a process that will take months.

What does the employee side say?

Managers at the employee assembly faced several minutes of boos, whistles and tooting horns before they could start their presentation on the potential explanation. “We are Volkswagen, you are not,” workers chanted.

Daniela Cavallo, who chairs the company works council representing employees, said the council “won’t go along with plant closings.” Reducing labor costs won’t turn around Volkswagen’s financial situation, she argued.

“Volkswagen’s problem is upper management isn’t doing its job,” Cavallo said. “There are many other areas where the company is responsible… We have to have competitive products; we don’t have the entry-level models in electric cars.”
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