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Hi everyone, itâs Tae on the Bloomberg Opinion team. Internet infrastructure needs an overhaul, but first⦠Todayâs top tech news: - Apple will likely [slash iPhone 13 production targets]( due to chip shortages
- [Google countersued Epic Games]( for circumventing its billing system with Fortnite
- An ex-Apple employee accused the CEO of [illegally intimidating workers]( Fixing the internet It has been a rough couple of months for the internet. In June, Fastly Inc.âs content-delivery [network failure]( forced some of the worldâs biggest e-commerce and media websites offline. Later, there were massive data breaches at [T-Mobile US Inc.]( and Amazon.com Inc.âs [Twitch]( streaming service. And last week, Facebook Inc.âs main social network, Instagram and WhatsApp [were down]( for about six hours. Then on Friday, it [happened again](âalbeit more briefly. All the incidents had a common corporate response. It goes something like this: We are sorry, it was an unintentional configuration error, weâll do better next time! After Facebookâs outage, the engineering director at security software firm Cloudflare Inc. called it a reminder about the fragile nature of internet, where millions of interconnected systems are dependent on each other to make it work. There was a time in the early days of the web when these excuses would be acceptable. But the internet, and many of these companies, now constitute the backbone of the modern economy. Billions of consumers and millions of [small businesses rely on Facebook](âs communication tools for daily living. If the web is held together by rubber bands and toothpicks, itâs clear that the U.S. needs to take urgent action to mitigate those vulnerabilities. What can be done? First, we should hold companies accountable for when they donât implement proper safeguards and security policies. The sheer frequency of the problems shows the industry, in aggregate, doesnât take the issue seriously. Companies donât prioritize the problem or invest enough to fix it. Thatâs why itâs important to make negligence much more painful by raising the size of financial penalties and increasing the liabilities for management teams. T-Mobile is one of the most egregious examples. According to the Wall Street Journal, the self-proclaimed hacker [said]( he was able to get inside the wireless carrierâs systems through an unprotected router, resulting in devastating consequences. The company revealed in August that personal data for nearly 50 million accounts were compromisedâincluding some Social Security numbers and driverâs licenses. Incredibly, this last incident is T-Mobileâs [fifth data breach]( over roughly the last three years. Another possible fix would be to increase governmental oversight. With Facebook and Fastly saying their outages were based on simple employee errors, I shudder to consider the level of damage a rogue employee or a state-sponsored actor could cause. Similar to how the Federal Reserveâs bank examiners aim to prevent systemic risk by working on-site at financial institutions, a new team of regulators should get authority to inspect key technology companiesâ redundancy and security plans. At a minimum, we need to do whatever it takes to reduce future human network configuration errors. Yes, the Biden administration has acknowledged the [importance of the countryâs internet vulnerabilities]( on national security and economy security grounds. But thus far, the White House has not done much to closely regulate the private sector other than to develop voluntary standards. Governments need to be more forceful. We canât keep letting companies off the hook. Thereâs much to be done to prevent the worst-case scenario from becoming a reality. â[Tae Kim](mailto:tkim426@bloomberg.net)
If you read one thing Apple faces an increasingly difficult balancing act in China. Last month, the countryâs top court effectively granted people the right to sue for alleged abuse of market power. President Xi Jinpingâs crackdown on big tech [complicates a lucrative and longstanding relationship]( with the worldâs second-largest economy. What else you need to know Three in four Canadians said Chinaâs Huawei should be banned from [supplying the country with 5G network infrastructure](. Lucid said its debut sedan will be the first production car with lidar, a laser system that can [enable autonomous driving](. Apple is set to revamp the MacBook Pro for the first time in five years. The unveiling will [take place on Oct. 18](. St. Petersburg, Florida, will vie to be the next tech hub, according to star investor Cathie Wood. âMany people think of Florida and St. Pete as a retirement home, and [itâs anything but that](,â she said. Follow Us More from Bloomberg Dig gadgets or video games? [Sign up for Power On]( to get Apple scoops, consumer tech news and more in your inbox on Sundays. [Sign up for Game On]( to go deep inside the video game business, delivered on Fridays. Why not try both?  Like Fully Charged? | [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Fully Charged newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox.
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