Ticketmaster knows it has a bot problem, but it wants Congress to fix it

In November, millions of Taylor Swift fans logged on to Ticketmaster hoping to scoop up tickets to arguably the most-anticipated tour of 2023. When the time came, the site crashed, rendering verified users unable to purchase admission to the singer’s first slate of shows in five years. In the immediate aftermath, Ticketmaster parent company Live Nation explained that while 1.5 million people had signed up as legit customers, over 14 million hit the site when tickets went on sale — many of which were bots. 

Live Nation president and CFO Joe Berchtold told the Senate Judiciary Comittee on Tuesday that the company “learned valuable lessons” from the Swift debacle. “In hindsight there are several things we could have done better – including staggering the sales over a longer period of time and doing a better job setting fan expectations for getting tickets,” he said. 

Berchtold told Senators that Ticketmaster experienced three times more bot traffic that day than it ever had before, and that a cyberattack on the company’s verified fan password servers exacerbated the problem. He explained that despite investing over $1 billion in ticketing systems since the Live Nation/Ticketmaster merger, mostly to combat fraud and scalping, the company has a massive bot problem that it can’t get a handle on. 

“We also need to recognize how industrial scalpers breaking the law using bots and cyberattacks to try to unfairly gain tickets contributes to an awful consumer experience,” Berchtold said. What he called “industrialized scalping” led to the Taylor Swift fiasco, he explained, but the executive wants Congress to act to prevent similar incidents from happening in the future. 

Berchtold called for Congress to expand the scope of the BOTS Act to “increase enforcement.” Signed into law in 2016, the legislation makes it illegal to bypass a website’s security or tech features as a means of purchasing tickets. It also makes it illegal to resell tickets obtained via those methods. Specifically, Berchtold called for banning the use of fraudulent URLs and stopping the resale of tickets before their general on-sale date. 

UNITED STATES - JANUARY 24: Sen. Marsha Blackburn, R-Tenn., speaks during the Senate Judiciary Committee hearing titled Thats the Ticket: Promoting Competition and Protecting Consumers in Live Entertainment, in Hart Building on Tuesday, January 24, 2023. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Sen. Marsha Blackburn during Tuesday’s hearing
Tom Williams via Getty Images

The law leaves enforcement with the FTC and states, a topic Republican Senator Marsha Blackburn discussed with Berchtold in some of the most pointed questioning of the session. “You told me yesterday you block about 90 percent of the bot attacks that you get, and that’s a failing grade,” she said. “There ought to be people you can get some good advice from because our critical infrastructure in this country gets bot attacks every single day. They have figured it out, but you guys haven’t?”

Blackburn admitted that the FTC has only taken action on the law once, and that the lack of widespread action was “unacceptable.” She pledged to do something about the lack of enforcement through the dealings of the Senate Commerce Committee, where she is also a member. 

“The FTC has the authority, but you have a responsibility to consumers,” she continued. “I agree they are not exercising it, but how many times have you called the FTC and said ‘we need your help?'”

Berchtold explained that Live Nation had only contacted the FTC once about suspected bot activity — in late 2019 and early 2020. He said that was the only time they had necessary information to work with the commission in order to get a prosecution. “These are not bots that are trying to break into our system, they are trying to impersonate people… putting true fans at a disadvantage,” Berchtold told Blackburn when asked why Live Nation has such a hard time recognizing bots.

In regards to the BOTS Act, Democratic Senator Richard Blumenthal told Berchtold there are already legal options available to the company to go after scalpers using bots to procure tickets.

“You have unlimited power to go to court,” Blumenthal said. “Your approach seems to be that everyone else is responsible here — not us.” 

TikTok will be banned on most US federal government devices

TikTok will be outlawed on almost all devices issued by the federal government after lawmakers passed a $1.7 trillion spending bill. Officials crammed the No TikTok on Government Devices Act, which the Senate unanimously approved in mid-December, into the mammoth 4,155-page omnibus bill. The spending package was fast tracked in order to avoid a partial government shutdown. It will fund the government through September.

The Senate voted 68-29 to pass the bill on December 22nd. The House approved it on Friday with a vote of 225-201. On the same day, President Joe Biden signed a stopgap bill that funded the government for another week in order to avert a shutdown until the omnibus bill landed on his desk. Today, President Biden signed the bill into law.

The legislation requires the Biden administration to establish rules to remove TikTok from government devices by mid-February. The bill carved out exceptions for elected officials, congressional staff, law enforcement agents and other officials. However, the House of Representatives separately banned TikTok on devices it owns and manages.

Earlier this month, FBI Director Chris Wray warned that China could use the app (which is owned by Beijing-based company ByteDance) to collect data on users. Some attempts have been made, including in the last few weeks, to prohibit TikTok in the US entirely. Several states have banned TikTok from government devices, including Georgia, South Dakota, Maryland and Texas. Indiana has sued TikTok over alleged security and child safety issues.

TikTok has attempted to soothe US lawmakers’ concerns that the app could be used for spying purposes. Since June, it has been directing all traffic from the country to Oracle servers based domestically. TikTok and ByteDance said they’d delete US user data from their own servers in the US and Singapore. In August, Oracle began a review of TikTok’s algorithms and content moderation systems.

As Congress was voting on the bill, news broke that ByteDance fired four employees (two in the US and two in China) who accessed the TikTok data of US journalists. The workers were allegedly trying to find the sources of leaks to the reporters.

The omnibus bill includes other tech-related provisions, including more funding for federal antitrust officials. In addition, the package incorporates the Computers for Veterans and Students Act. This requires the government to hand over certain surplus computers to nonprofits. The systems will be repaired and/or refurbished, then distributed to schools, homeschooled students, veterans, seniors and others in need.

There’s also another $1.8 billion in new funding to implement the CHIPS and Science Act, which aims to boost domestic production of semiconductors. The omnibus bill earmarks $25.4 billion for NASA — 5.6 percent more than the agency received in fiscal year 2022, but less than the $26 billion the White House asked for. The National Science Foundation will get $9.9 billion, an increase of 12 percent. The National Institute of Standards and Technology and National Oceanic and Atmospheric Administration will receive increases of 32 percent (up to $1.6 billion) and 17.5 percent ($761 million), respectively.

New York’s governor signs watered-down right-to-repair bill

Almost seven months after the state legislature overwhelmingly passed a right-to-repair bill, New York governor Kathy Hochul has signed it into law. But Hochul only greenlit the bill after the legislature agreed to some changes. Hochul wrote in a memo that the legislation, as it was originally drafted, “included technical issues that could put safety and security at risk, as well as heighten the risk of injury from physical repair projects.” The governor said the modifications addressed these issues, but critics say the amendments will weaken the law’s effectiveness.

“This legislation would enhance consumer options in the repair markets by granting them greater access to the parts, tools and documents needed for repairs,” Hochul wrote. “Encouraging consumers to maximize the lifespan of their devices through repairs is a laudable goal to save money and reduce electronic waste.”

The changes strip out the bill’s requirement for “original equipment manufacturers [or OEMs] to provide to the public any passwords, security codes or materials to override security features.” OEMs will also be able to bundle “assemblies of parts” instead of just the specific component actually needed for a DIY repair if “the risk of improper installation heightens the risk of injury.” 

The rules will only apply to devices that are originally built and used or sold in New York for the first time after July 1st. There’s also an exemption for “digital products that are the subject of business-to-business or business-to-government sales and that otherwise are not offered for sale by retailers.”

As Ars Technica reported earlier this month, representatives for Microsoft and Apple pressed Hochul’s office for changes. So did industry association TechNet, which represents many notable tech companies, including Amazon, Google, Dell, HP and Engadget parent Yahoo.

As a result, the bill’s revised language excludes enterprise electronics, such as those that schools, hospitals, universities and data centers rely on, as iFixit CEO Kyle Wiens wrote in a blog post. Home appliances, motor vehicles, medical devices and off-road equipment were previously exempted.

“Such changes could limit the benefits for school computers and most products currently in use,” Public Interest Research Groups (PIRG), a collective of consumer rights organizations, said in a statement to Engadget. “Even more troubling, the bill now excludes certain smartphone circuit boards from parts the manufacturers are required to sell, and requires repair shops to post unwieldy warranty language.”

“We knew it was going to be difficult to face down the biggest and wealthiest companies in the world,” PIRG right to repair director Nathan Proctor said. “But, though trimmed down, a new Right to Repair law was signed. Now our work remains to strengthen this law and pass others until people have what they need to fix their stuff.”

As The Verge notes, repair technician and right-to-repair advocate Louis Rossmann said the changes have watered down the law to the point where it’s “functionally useless.” Rossmann, who spent seven years trying to get the bill passed, called Hochul’s assertion that the changes were necessary to include protections from physical harm and security risks “bullshit,” citing a Federal Trade Commission report on the issue.

The right-to-repair movement has picked up steam over the last couple of years. Ahead of expected legislation coming into force, companies such as Google, Apple, Samsung and Valve started providing repair manuals and selling parts for some of their products.

Last year, President Joe Biden signed an executive order that aimed at bolstering competition in the US, including in the tech industry. Among other measures, it called on the FTC to ban “anticompetitive restrictions on using independent repair shops or doing DIY repairs of your own devices and equipment.”

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Congress attempts to ban TikTok on government devices as part of $1.7 trillion spending bill

After obtaining Senate approval last week, the No TikTok on Government Devices Act could become law thanks to the $1.7 trillion spending bill federal lawmakers unveiled early Tuesday morning. In addition to allocating more funding for Ukraine and earmarking $40 billion for natural disaster recovery efforts across the US, the sprawling 4,155-page bill includes provisions that would prohibit the use of TikTok on government-owned phones and other devices.

While some Republican lawmakers are pushing for a country-wide ban on TikTok, the spending bill stops short of prohibiting all government use of TikTok. If passed, the legislation would order the General Services Administration and Office of Management and Budget to create guidelines for staff at executive agencies to remove TikTok from government-owned devices by mid-February. The draft legislation allows congressional staff and elected officials to continue using the app. It also carves out some exceptions for law enforcement agents and officials.

“We’re disappointed that Congress has moved to ban TikTok on government devices — a political gesture that will do nothing to advance national security interests — rather than encouraging the Administration to conclude its national security review,” TikTok spokesperson Brooke Oberwetter told Engadget.

“The agreement under review by [The Committee on Foreign Investment in the United States] will meaningfully address any security concerns that have been raised at both the federal and state level. These plans have been developed under the oversight of our country’s top national security agencies — plans that we are well underway in implementing — to further secure our platform in the United States, and we will continue to brief lawmakers on them.”

The proposed ban comes after at least 11 states, including Georgia and South Dakota, prohibited TikTok on government-owned devices. Political concerns over TikTok hit a high earlier this month after FBI Director Chris Wray said China could use the app to collect user data. TikTok has tried to address those concerns. As of June, the app began routing all domestic traffic through Oracle servers in the US. At the same time, TikTok and parent company ByteDance pledged to delete US user data from their own data servers in the US and Singapore.

US Senate approves bill to ban TikTok on government devices

The No TikTok on Government Devices Act that was introduced by Senator Josh Hawley (R-Missouri) has just crossed a major milestone. Members of the US Senate have unanimously voted to approve the bill, which will ban the TikTok app on all government-owned phones and other devices. Its approval emphasizes authorities’ concerns that the app’s China-based parent company ByteDance could share information gathered from US users with the Chinese government. Just last month, FBI Director Chris Wray warned lawmakers that the Chinese government could use TikTok to launch “influence operations” or to “technically compromise” millions of devices.

While the bill aims to prohibit the installation of TikTok on government devices, it carves out exceptions for “law enforcement activities, national security interests and activities, and security researchers,” according to Bloomberg. Hawley called the app a “Trojan Horse for the Chinese Communist Party” and said it has no place on government devices until it completely cuts ties with China. Meanwhile, TikTok spokesperson Brooke Oberwetter told Bloomberg that Hawley “has moved forward with… a proposal which does nothing to advance US national security interests.” Oberwetter added: “We hope that rather than continuing down that road, he will urge the administration to move forward on an agreement that would actually address his concerns.”

Just a few days ago, Senator Marco Rubio (R-FL) and Rep. Mike Gallagher (R-WI) filed a separate bill that aims to ban TikTok in the US completely. Unlike Hawley’s bill, theirs also targets all social media companies in or influenced by China, Russia, Cuba, Iran, North Korea and Venezuela. Rubio criticized the administration for having “yet to take a single meaningful action to protect American users from the threat of TikTok.”

Individual states, including Maryland and South Dakota, have already prohibited the installation of TikTok on government devices. As for Hawley’s bill, the US House will still have to approve it before it can become a law. 

Congress introduces bill to ban TikTok over spying fears

American politicians aren’t just restricting access to TikTok — they now hope to ban it outright. Members of the House and Senate have introduced matching bills that would block transactions from any social media company in or influenced by China, Russia, Cuba, Iran, North Korea or Venezuela. The ANTI-SOCIAL CCP Act (Averting the National Threat of Internet Surveillance, Oppressive Censorship and Influence, and Algorithmic Learning by the Chinese Communist Party) is meant to shut down access to TikTok and other apps that could theoretically funnel American user data to oppressive governments, censor news or otherwise manipulate the public.

The rationale echoes what US political leaders have argued for years. While TikTok has taken efforts to distance its international operations from those in China, such as by storing US data domestically, critics have argued that parent company ByteDance is ultimately at the mercy of the Chinese government. TikTok could potentially profile government workers and otherwise surveil Americans, according to the often-repeated claims.

Republican bill co-sponsors Sen. Marco Rubio and Rep. Mike Gallagher tried to draw links between some ByteDance leadership and the Chinese Communist Party in an opinion piece in The Washington Post this November. At the time, 23 directors had previously worked for state-backed media, and “at least” 15 employees still did. The bill is also sponsored by House Democrat Raja Krishnamoorthi.

In a statement, a TikTok spokesperson said it was “troubling” that members of Congress were putting forward legislation to ban the app rather than waiting for a national security review to wind down. The bills will “do nothing to advance” national security, according to the company. The firm added that it would “continue to brief” Congress on plans developed under the watch of security officials. The social network has consistently denied plans to track American users or otherwise deliberately assist Chinese surveillance efforts in the country.

TikTok already faces some legal action. The states of Maryland and South Dakota have banned TikTok on government devices over security concerns. Indiana, meanwhile, sued TikTok for allegedly deceiving users about China’s data access and child safety violations. That lawsuit would fine TikTok and demand changes to the service’s info handling and marketing claims.

Whether or not the bills become legislation isn’t certain. President Biden revoked former President Trump’s orders to ban TikTok downloads, and instead required a fresh national security review. He’s not expected to override his own order. And while the bill sponsors characterize the measure as bipartisan, it’s not clear the call for a TikTok ban has enough support to clinch the necessary votes and reach Biden’s desk. To some degree, the ANTI-SOCIAL CCP Act is more a signal of intent than a practical attempt to block TikTok.

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