AI

Sam Altman Says OpenAI Shares Anthropic's Red Lines in Pentagon Fight (axios.com) 51

An anonymous reader shares a report: OpenAI CEO Sam Altman wrote in a memo to staff that he will draw the same red lines that sparked a high-stakes fight between rival Anthropic and the Pentagon: no AI for mass surveillance or autonomous lethal weapons. If other leading firms like Google follow suit, this could massively complicate the Pentagon's efforts to replace Anthropic's Claude, which was the first model integrated into the military's most sensitive work. It would also be the first time the nation's top AI leaders have taken a collective stand about how the U.S. government can and can't use their technology.

Altman made clear he still wants to strike a deal with the Pentagon that would allow ChatGPT to be used for sensitive military contexts. Despite the show of solidarity, such a deal could see OpenAI replace Anthropic if the Pentagon follows through with its plan to declare the latter a "supply chain risk."

Crime

Four Convicted Over Spyware Affair That Shook Greece (bbc.com) 7

A Greek court has convicted four individuals linked to the marketing of Predator spyware in the wiretapping scandal that shook the country in 2022. The BBC reports: In what became known as "Greece's Watergate," surveillance software called Predator was used to target 87 people -- among them government ministers, senior military officials and journalists. The four who had marketed the software were found guilty by an Athens court of misdemeanours of violating the confidentiality of telephone communications and illegally accessing personal data and conversations.

The court sentenced the four defendants to lengthy jail sentences, suspended pending appeal. Although they each face 126 years, only eight would be typically served which is the upper limit for misdemeanors. One in three of the dozens of figures targeted had also been under legal surveillance by Greece's intelligence services (EYP). Prime Minister Kyriakos Mitsotakis, who had placed EYP directly under his supervision, called it a scandal, but no government officials have been charged in court and critics accuse the government of trying to cover up the truth.

The case dates back to the summer of 2022, when the current head of Greek Socialist party Pasok, Nikos Androulakis - then an MEP - was informed by the European Parliament's IT experts that he had received a malicious text message containing a link. Predator spyware, marketed by the Athens-based Israeli company Intellexa, can get access to a device's messages, camera, and microphone. Its use was illegal in Greece at that time but a new law passed in 2022 has since legalised state security use of surveillance software under strict conditions. Androulakis also discovered that he had been tracked for "national security reasons" by Greece's intelligence services. The scandal has since escalated into a debate over democratic accountability in Greece.

China

Chinese Official's Use of ChatGPT Revealed a Global Intimidation Opperation (cnn.com) 20

New submitter sabbede shares a report from CNN Politics: A sprawling Chinese influence operation -- accidentally revealed by a Chinese law enforcement official's use of ChatGPT -- focused on intimidating Chinese dissidents abroad, including by impersonating US immigration officials, according to a new report from ChatGPT-maker OpenAI. The Chinese law enforcement official used ChatGPT like a diary to document the alleged covert campaign of suppression, OpenAI said. In one instance, Chinese operators allegedly disguised themselves as US immigration officials to warn a US-based Chinese dissident that their public statements had supposedly broken the law, according to the ChatGPT user. In another case, they describe an effort to use forged documents from a US county court to try to get a Chinese dissident's social media account taken down. "This is what Chinese modern transnational repression looks like," Ben Nimmo, principal investigator at OpenAI, told reporters ahead of the report's release. "It's not just digital. It's not just about trolling. It's industrialized. It's about trying to hit critics of the CCP [Chinese Communist Party] with everything, everywhere, all at once."

Michael Horowitz, a former Pentagon official focused on emerging technologies, said the report from OpenAI "clearly demonstrates the way that China is actively employing AI tools to enhance information operations. US-China AI competition is continuing to intensify. This competition is not just taking place at the frontier, but in how China's government is planning and implementing the day-to-day of their surveillance and information apparatus."
IOS

iPhone and iPad Are First Consumer Devices Cleared for NATO Classified Data (macrumors.com) 27

Apple's iPhone and iPad running iOS 26 and iPadOS 26 have become the first consumer mobile devices cleared for NATO-restricted classified data. No special software or settings are required. MacRumors reports: Apple's devices are the first and only consumer mobile products that have reached this government certification level after security testing and evaluation by the German government. iPhones and iPads running iOS 26 and iPadOS 26 are now certified for use with classified data in all NATO nations.

In an announcement of the security clearance, Apple touted its security features: "Apple designs security into all of its products from the start, ensuring the most sophisticated protections are built in across hardware, software, and Apple silicon. This unique approach allows Apple users to benefit from industry-leading security protections such as best-in-class encryption, biometric authentication with Face ID, and groundbreaking features like Memory Integrity Enforcement. These same protections are now recognized as meeting stringent government and international security requirements, even for restricted data."

Government

The Government Just Made it Harder to See What Spy Tech it Buys 17

An anonymous reader shares a report: It might look like something from the early days of the internet, with its aggressively grey color scheme and rectangles nested inside rectangles, but FPDS.gov is one of the most important resources for keeping tabs on what powerful spying tools U.S. government agencies are buying. It includes everything from phone hacking technology, to masses of location data, to more Palantir installations.

Or rather, it was an incredible tool and the basis for countless of my own investigations and others. Because on Wednesday, the government shut it down. Its replacement, another site called SAM.gov with Uncle Sam branding, frankly sucks, and makes it demonstrably harder to reliably find out what agencies, including Immigration and Customs Enforcement (ICE), are spending tax payers dollars on.

"FPDS may have been a little clunky, but its simple, old-school interface made it extremely functional and robust. Every facet of government operations touches on contracting at one point, and this was the first tool that many investigative journalists and researchers would reach for to quickly find out what the government is buying and who is selling it, and how these contracts all fit together," Dave Maass, director of investigations at the Electronic Frontier Foundation, told me.
The Courts

New York Sues Valve For Enabling 'Illegal Gambling' With Loot Boxes (arstechnica.com) 79

New York state has filed a lawsuit against Valve alleging that randomized loot boxes in games like Counter-Strike 2, Team Fortress 2, and Dota 2 amount to a form of unregulated gambling, letting users "pay for the chance to win a rare virtual item of significant monetary value." From a report: While many randomized video game loot boxes have drawn attention and regulation from various government bodies in recent years, the New York suit calls out Valve's system specifically for "enabl[ing] users to sell the virtual items they have won, either through its own virtual marketplace, the Steam Community Market, or through third-party marketplaces."

The vast majority of Valve's in-game loot boxes contain skins that can only be resold for a few cents, the suit notes, while the rarest skins can be worth thousands of dollars through marketplaces on and off of Steam. That fits the statutory definition of gambling as "charging an individual for a chance to win something of value based on luck alone," according to the suit.

The Steam Wallet funds that users get through directly reselling skins "have the equivalent purchasing power on the Steam platform as cash," the suit notes. But if a user wants to convert those Steam funds to real cash, they can do so relatively easily by purchasing a Steam Deck and reselling it to any interested party, as an investigator did while preparing the lawsuit.

AI

Hacker Used Anthropic's Claude To Steal Sensitive Mexican Data (bloomberg.com) 22

A hacker exploited Anthropic's AI chatbot to carry out a series of attacks against Mexican government agencies, resulting in the theft of a huge trove of sensitive tax and voter information, according to cybersecurity researchers. From a report: The unknown Claude user wrote Spanish-language prompts for the chatbot to act as an elite hacker, finding vulnerabilities in government networks, writing computer scripts to exploit them and determining ways to automate data theft, Israeli cybersecurity startup Gambit Security said in research published Wednesday.

The activity started in December and continued for roughly a month. In all, 150 gigabytes of Mexican government data was stolen, including documents related to 195 million taxpayer records as well as voter records, government employee credentials and civil registry files, according to the researchers.

United Kingdom

New Datacentres Risk Doubling Great Britain's Electricity Use, Regulator Says (theguardian.com) 44

The amount of power being sought by new datacentre projects in Great Britain would exceed the national current peak electricity consumption, according to an industry watchdog. From a report: Ofgem said about 140 proposed datacentre schemes, driven by use of artificial intelligence, could require 50 gigawatts of electricity -- 5GW more than the country's current peak demand.

The figure was revealed in an Ofgem consultation on demand for new connections to the power grid. It pointed to a "surge in demand" for connection applications between November 2024 and June last year, with a significant number coming from datacentres. This has exceeded even the most ambitious forecasts.

Meanwhile, new renewable energy projects are not being connected to the grid at the pace they are being built to help meet the government's clean energy targets by the end of the decade. Ofgem said the work required to connect surging numbers of datacentres could mean delays for other projects that are "critical for decarbonisation and economic growth." Datacentres are the central nervous system of AI tools such as chatbots and image generators, playing a vital role in training and operating products such as ChatGPT and Gemini.

IT

'How Many AIs Does It Take To Read a PDF?' (theverge.com) 61

Despite AI's progress in building complex software, the ubiquitous PDF remains something of a grand challenge -- a format Adobe developed in the early 1990s to preserve the precise visual appearance of documents. PDFs consist of character codes, coordinates, and rendering instructions rather than logically ordered text, and even state-of-the-art models asked to extract information from them will summarize instead, confuse footnotes with body text, or outright hallucinate contents, The Verge writes.

Companies like Reducto are now tackling the problem by segmenting pages into components -- headers, tables, charts -- before routing each to specialized parsing models, an approach borrowed from computer vision techniques used in self-driving vehicles. Researchers at Hugging Face recently found roughly 1.3 billion PDFs sitting in Common Crawl alone, and the Allen Institute for AI has noted that PDFs could provide trillions of novel, high-quality training tokens from government reports, textbooks, and academic papers -- the kind of data AI developers are increasingly desperate for.
Encryption

Telegram Disputes Russia's Claim Its Encryption Was Compromised (business-standard.com) 21

Russia's domestic intelligence agency claimed Saturday that Ukraine can obtain sensitive information from troops using the Telegram app on the front line, reports Bloomberg. The fact that the claims were made through Russia's state-operated news outlet RIA Novosti signals "tightening scrutiny over a platform used by millions of Russians," Bloomberg notes, as the Kremlin continues efforts to "push people to use a new state-backed alternative." Russia's communications watchdog limited access to Telegram — a popular messaging app owned by Russian-born billionaire Pavel Durov — over a week ago for failing to comply with Russian laws requiring personal data to be stored locally. Voice and video calls were blocked via Telegram in August. The pressure is the latest move in a long-running campaign to promote what the Kremlin calls a sovereign internet that's led to blocks on YouTube, Instagram and WhatsApp... Foreign intelligence services are able to see Russia's military messages in Telegram too, Russia's Minister for digital development, Maksut Shadaev, said on Wednesday, although he added that Russia will not block access to Telegram for troops for now.

Telegram responded at the time that no breaches of the app's encryption have ever been found. "The Russian government's allegation that our encryption has been compromised is a deliberate fabrication intended to justify outlawing Telegram and forcing citizens onto a state-controlled messaging platform engineered for mass surveillance and censorship," it said in an emailed response.

United States

F-35 Software Could Be Jailbreaked Like an IPhone: Dutch Defense Minister (twz.com) 87

Lockheed Martin's F-35 combat aircraft is a supersonic stealth "strike fighter." But this week the military news site TWZ reports that the fighter's "computer brain," including "its cloud-based components, could be cracked to accept third-party software updates, just like 'jailbreaking' a cellphone, according to the Dutch State Secretary for Defense."

TWZ notes that the Dutch defense secretary made the remarks during an episode of BNR Nieuwsradio's "Boekestijn en de Wijk" podcast, according to a machine translation: Gijs Tuinman, who has been State Secretary for Defense in the Netherlands since 2024, does not appear to have offered any further details about what the jailbreaking process might entail. What, if any, cyber vulnerabilities this might indicate is also unclear. It is possible that he may have been speaking more notionally or figuratively about action that could be taken in the future, if necessary...

The ALIS/ODIN network is designed to handle much more than just software updates and logistical data. It is also the port used to upload mission data packages containing highly sensitive planning information, including details about enemy air defenses and other intelligence, onto F-35s before missions and to download intelligence and other data after a sortie. To date, Israel is the only country known to have successfully negotiated a deal giving it the right to install domestically-developed software onto its F-35Is, as well as otherwise operate its jets outside of the ALIS/ODIN network.

The comments "underscore larger issues surrounding the F-35 program, especially for foreign operators," the article points out. But at the same time F-35's have a sophisticated mission-planning data package. "So while jailbreaking F-35's onboard computers, as well as other aspects of the ALIS/ODIN network, may technically be feasible, there are immediate questions about the ability to independently recreate the critical mission planning and other support it provides. This is also just one aspect of what is necessary to keep the jets flying, let alone operationally relevant."

"TWZ previously explored many of these same issues in detail last year, amid a flurry of reports about the possibility that F-35s have some type of discreet 'kill switch' built in that U.S. authorities could use to remotely disable the jets. Rumors of this capability are not new and remain completely unsubstantiated." At that time, we stressed that a 'kill switch' would not even be necessary to hobble F-35s in foreign service. At present, the jets are heavily dependent on U.S.-centric maintenance and logistics chains that are subject to American export controls and agreements with manufacturer Lockheed Martin. Just reliably sourcing spare parts has been a huge challenge for the U.S. military itself... F-35s would be quickly grounded without this sustainment support. [A cutoff in spare parts and support"would leave jailbroken jets quickly bricked on the ground," the article notes later.] Altogether, any kind of jailbreaking of the F-35's systems would come with a serious risk of legal action by Lockheed Martin and additional friction with the U.S. government.
Thanks to long-time Slashdot reader Koreantoast for sharing the article.
Government

Pro-Gamer Consumer Movement 'Stop Killing Games' Will Launch NGOs in America and the EU (pcgamer.com) 28

The consumer movement Stop Killing Games "has come a long way in the two years since YouTuber Ross Scott got mad about Ubisoft's destruction of The Crew in 2024," writes the gaming news site PC Gamer. "The short version is, he won: 1.3 million people signed the group's petition, mandating its consideration by the European Union, and while Ubisoft CEO Yves Guillemot reminded us all that nothing is forever, his company promised to never do something like that again." (And Ubisoft has since updated The Crew 2 with an offline mode, according to Engadget.)

"But it looks like even bigger things are in store," PC Gamer wrote Thursday, "as Scott announced today that Stop Killing Games is launching two official NGOs, one in the EU and the other in the US." An NGO — that's non-governmental organization — is, very generally speaking, an organization that pursues particular goals, typically but not exclusively political, and that may be funded partially or fully by governments, but is not actually part of any government. It's a big tent: Well-known NGOs include Oxfam, Doctors Without Borders, Amnesty International, and CARE International... "If there's a lobbyist showing up again and again at the EU Commission, that might influence things," [Scott says in a video]. "This will also allow for more watchdog action. If you recall, I helped organize a multilingual site with easy to follow instructions for reporting on The Crew to consumer protection agencies. Well, maybe the NGO could set something like that up for every big shutdown where the game is destroyed in the future...."

Scott said in the video that he doesn't have details, but the two NGOs are reportedly looking at establishing a "global movement" to give Stop Killing Games a presence in other regions.

"According to Scott, these NGOs would allow for 'long-term counter lobbying' when publishers end support for certain video games," Engadget reports" "Let me start off by saying I think we're going to win this, namely the problem of publishers destroying video games that you've already paid for," Scott said in the video. According to Scott, the NGOs will work on getting the original Stop Killing Games petition codified into EU law, while also pursuing more watchdog actions, like setting up a system to report publishers for revoking access to purchased video games... According to Scott, the campaign leadership will meet with the European Commission soon, but is also working on a 500-page legal paper that reveals some of the industry's current controversial practices.
The Internet

Fury Over Discord's Age Checks Explodes After Shady Persona Test In UK (arstechnica.com) 62

Backlash intensified against Discord's age verification rollout after it briefly disclosed a UK age-verification test involving vendor Persona, contradicting earlier claims about minimal ID storage and transparency. Ars Technica explains: One of the major complaints was that Discord planned to collect more government IDs as part of its global age verification process. It shocked many that Discord would be so bold so soon after a third-party breach of a former age check partner's services recently exposed 70,000 Discord users' government IDs.

Attempting to reassure users, Discord claimed that most users wouldn't have to show ID, instead relying on video selfies using AI to estimate ages, which raised separate privacy concerns. In the future, perhaps behavioral signals would override the need for age checks for most users, Discord suggested, seemingly downplaying the risk that sensitive data would be improperly stored. Discord didn't hide that it planned to continue requesting IDs for any user appealing an incorrect age assessment, and users weren't happy, since that is exactly how the prior breach happened. Responding to critics, Discord claimed that the majority of ID data was promptly deleted. Specifically, Savannah Badalich, Discord's global head of product policy, told The Verge that IDs shared during appeals "are deleted quickly -- in most cases, immediately after age confirmation."

It's unsurprising then that backlash exploded after Discord posted, and then weirdly deleted, a disclaimer on an FAQ about Discord's age assurance policies that contradicted Discord's hyped short timeline for storing IDs. An archived version of the page shows the note shared this warning: "Important: If you're located in the UK, you may be part of an experiment where your information will be processed by an age-assurance vendor, Persona. The information you submit will be temporarily stored for up to 7 days, then deleted. For ID document verification, all details are blurred except your photo and date of birth, so only what's truly needed for age verification is used."

Critics felt that Discord was obscuring not just how long IDs may be stored, but also the entities collecting information. Discord did not provide details on what the experiment was testing or how many users were affected, and Persona was not listed as a partner on its platform. Asked for comment, Discord told Ars that only a small number of users was included in the experiment, which ran for less than one month. That test has since concluded, Discord confirmed, and Persona is no longer an active vendor partnering with Discord. Moving forward, Discord promised to "keep our users informed as vendors are added or updated." While Discord seeks to distance itself from Persona, Rick Song, Persona's CEO [...] told Ars that all the data of verified individuals involved in Discord's test has been deleted.
Ars also notes that hackers "quickly exposed a 'workaround' to avoid Persona's age checks on Discord" and "found a Persona frontend exposed to the open internet on a U.S. government authorized server."

The Rage, an independent publication that covers financial surveillance, reported: "In 2,456 publicly accessible files, the code revealed the extensive surveillance Persona software performs on its users, bundled in an interface that pairs facial recognition with financial reporting -- and a parallel implementation that appears designed to serve federal agencies." While Persona does not have any government contracts, the exposed service "appears to be powered by an OpenAI chatbot," The Rage noted.

Hackers warned "that OpenAI may have created an internal database for Persona identity checks that spans all OpenAI users via its internal watchlistdb," seemingly exploiting the "opportunity to go from comparing users against a single federal watchlist, to creating the watchlist of all users themselves."
The Courts

US Supreme Court Rejects Trump's Global Tariffs (reuters.com) 228

The U.S. Supreme Court struck down on Friday President Donald Trump's sweeping tariffs that he pursued under a law meant for use in national emergencies, rejecting one of his most contentious assertions of his authority in a ruling with major implications for the global economy. From a report: The justices, in a 6-3 ruling authored by conservative Chief Justice John Roberts, upheld a lower court's decision that the Republican president's use of this 1977 law exceeded his authority.

The court ruled that the Trump administration's interpretation that the law at issue - the International Emergency Economic Powers Act, or IEEPA - grants Trump the power he claims to impose tariffs would intrude on the powers of Congress and violate a legal principle called the "major questions" doctrine. The doctrine, embraced by the conservative justices, requires actions by the government's executive branch of "vast economic and political significance" to be clearly authorized by Congress. The court used the doctrine to stymie some of Democratic former President Joe Biden's key executive actions.

United States

Trump Directs US Government To Prepare Release of Files on Aliens and UFOs (bbc.com) 148

US President Donald Trump says he will direct US agencies, including the defence department, to "begin the process of identifying and releasing" government files on aliens and extraterrestrial life. From a report: Trump made the declaration in a post on Truth Social, after he accused Barack Obama earlier in the day of revealing classified information when the former president said "aliens are real" on a podcast last week. "He's not supposed to be doing that," Trump told reporters aboard Air Force One, adding: "He made a big mistake."

Asked if he also thinks aliens are real, Trump answered: "Well, I don't know if they're real or not." Former US President Obama told podcast host Brian Tyler Cohen that he thinks aliens are real in an interview released last Saturday. "They're real, but I haven't seen them, and they're not being kept in Area 51," Obama said. "There's no underground facility unless there's this enormous conspiracy and they hid it from the president of the United States."

Security

How Private Equity Debt Left a Leading VPN Open To Chinese Hackers (financialpost.com) 26

An anonymous reader quotes a report from Bloomberg: In early 2024, the agency that oversees cybersecurity for much of the US government issued a rare emergency order -- disconnect your Connect Secure virtual private network software immediately. Chinese spies had hacked the code and infiltrated nearly two dozen organizations. The directive applied to all civilian federal agencies, but given the product's customer base, its impact was more widely felt. The software, which is made by Ivanti Inc., was something of an industry standard across government and much of the corporate world. Clients included the US Air Force, Army, Navy and other parts of the Defense Department, the Department of State, the Federal Aviation Administration, the Federal Reserve, the National Aeronautics and Space Administration, thousands of companies and more than 2,000 banks including Wells Fargo & Co. and Deutsche Bank AG, according to federal procurement records, internal documents, interviews and the accounts of former Ivanti employees who requested anonymity because they were not authorized to disclose customer information.

Soon after sending out their order, which instructed agencies to install an Ivanti-issued fix, staffers at the Cybersecurity and Infrastructure Security Agency discovered that the threat was also inside their own house. Two sensitive CISA databases -- one containing information about personnel at chemical facilities, another assessing the vulnerabilities of critical infrastructure operators -- had been compromised via the agency's own Connect Secure software. CISA had followed all its own guidance. Ivanti's fix had failed. This was a breaking point for some American national security officials, who had long expressed concerns about Connect Secure VPNs. CISA subsequently published a letter with the Federal Bureau of Investigation and the national cybersecurity agencies of the UK, Canada, Australia and New Zealand warning customers of the "significant risk" associated with continuing to use the software. According to Laura Galante, then the top cyber official in the Office of the Director of National Intelligence, the government came to a simple conclusion about the technology. "You should not be using it," she said. "There really is no other way to put it."

That attack, along with several others that successfully targeted the Ivanti software, illustrate how private equity's push into the cybersecurity market ended up compromising the quality and safety of some critical VPN products, Bloomberg has found. Last year, Bloomberg reported that Citrix Systems Inc., another top VPN maker, experienced several major hacks after its private equity owners, Elliott Investment Management and Vista Equity Partners, cut most of the company's 70-member product security team following their acquisition of the company in 2022. Some government officials and private-sector executives are now reconsidering their approach to evaluating cybersecurity software. In addition to excising private equity-owned VPNs from their networks, some factor private equity ownership into their risk assessments of key technologies.

Government

IRS Loses 40% of IT Staff, 80% of Tech Leaders In 'Efficiency' Shakeup (theregister.com) 87

The IRS's IT division has reportedly lost 40% of its staff and nearly 80% of its tech leadership amid a federal "efficiency" overhaul, the agency's CIO revealed yesterday. The Register reports: Kaschit Pandya detailed the extent of the tech reorganization during a panel at the Association of Government Accountants yesterday, describing it as the biggest in two decades. ... The IRS lost a quarter of its workforce overall in 2025. But the tech team was clearly affected more deeply. At the start of the year, the team encompassed around 8,500 employees.

As reported by Federal News Network (FNN), Pandya said: "Last year, we lost approximately 40 percent of the IT staff and nearly 80 percent of the execs." "So clearly there was an opportunity, and I thought the opportunity that we needed to really execute was reorganizing." That included breaking up silos within the organization, he said. "Everyone was operating in their own department or area."

It is not entirely clear where all those staff have gone. According to a report by the US Treasury Inspector General for Tax Administration, the IT department had 8,504 workers as of October 2024. As of October 2025, it had 7,135. However, reports say that as part of the reorganization, 1,000 techies were detailed to work on delivering frontline services during the US tax season. According to FNN, those employees have questioned the wisdom of this move and its implementation.

Businesses

A $10 Plastic Speaker is the Most Durable Revenue Line in Indian Digital Payments (indiadispatch.com) 33

India's digital payment platforms process trillions of dollars a year through UPI, the government-built real-time payments rail that handles more than 90% of all payment transactions in the country, but one of their largest net revenue line items is not a payment product at all: it's a cheap plastic speaker that sits on a shopkeeper's counter and reads out incoming payments aloud.

The roughly 23 million soundboxes deployed across India earn about $220 million a year in rental fees, more than every explicitly UPI-linked revenue line in the ecosystem combined, according to estimates from Bernstein. Each device costs $7-12 to manufacture and earns its platform $7-10 a year in rent. A story adds: PhonePe processes about 48% of all UPI transactions in India. Its net payment processing revenue in H1 FY26 was about $83 million. Its device revenue was about $34 million. Running nearly half of India's real-time payment infrastructure earns PhonePe only 2.4 times what it makes from renting speakers to shopkeepers.
Transportation

EV Sales Boom As Ethiopia Bans Fossil-Fuel Car Imports (financialpost.com) 82

An anonymous reader quotes a report from the Financial Post: In 2024, the Ethiopian government banned the import of fossil fuel-powered vehicles and slashed tariffs on their electric equivalents. It was a policy driven less by the country's climate ambitions and more by fiscal pressures. For years, subsidizing gasoline for consumers has been a major drag on Ethiopia's budget, costing the state billions of dollars over the past decade. The country defaulted on its sovereign bonds in 2023 after rising interest rates drove up the costs of servicing its debts, and it received a $3.4 billion bailout from the International Monetary Fund the following year.

In the two years since the ban on internal combustion engine vehicles, EV adoption has grown from less than 1% to nearly 6% of all of the vehicles on the road in the country -- according to the government's own figures -- some way above the global average of 4%. "The Ethiopia story is fascinating," said Colin McKerracher, head of clean transport at BloombergNEF. "What you're seeing in places that don't make a lot of vehicles of any type, they're saying: 'Well, look, if I'm going to import the cars anyway, then I'd rather import less oil. We may as well import the one that cleans up local air quality and is cheaper to buy.'"

For decades, Ethiopia's high import tariffs on vehicles put new car ownership out of the reach of most of the country's population. Per capita gross domestic product is only about $1,000, and even by the standards of low-income countries, it has among the lowest car ownership rates. At 13 vehicles per 1,000 people, it's a fraction of the African average of 73. With few cars manufactured in the country, the vast majority are imported, and most are bought used. The government's import policy has upended the market. In parallel, tariffs for EVs were dropped to 15% for completed cars, 5% for parts and semi-assembled vehicles, and zero for "fully knocked down" -- vehicles shipped in parts and assembled locally. That has made new EVs cost-competitive with old gasoline cars.

The Courts

EPA Faces First Lawsuit Over Its Killing of Major Climate Rule (nytimes.com) 34

An anonymous reader quotes a report from the New York Times: The first shot has been fired in the legal war over the Environmental Protection Agency's rollback of its "endangerment finding," which had been the foundation for federal climate regulations. Environmental and health groups filed a lawsuit on Wednesday morning in the U.S. Court of Appeals for the District of Columbia Circuit, arguing that the E.P.A.'s move to eliminate limits on greenhouse gases from vehicles, and potentially other sources, was illegal. The suit was triggered by last week's decision by the E.P.A. to kill one of its key scientific conclusions, the endangerment finding, which says that greenhouse gases harm public health. The finding had formed the basis for climate regulations in the United States.

The lawsuit claims that the agency is rehashing arguments that the Supreme Court already considered, and rejected, in a landmark 2007 case, Massachusetts v. E.P.A. The issue is likely to end up back before the Supreme Court, which is now far more conservative. In the 2007 case, the justices ruled that the E.P.A. was required to issue a scientific determination as to whether greenhouse gases were a threat to public health under the 1970 Clean Air Act and to regulate them if they were. As a result, two years later, in 2009, the E.P.A. issued the endangerment finding, allowing the government to limit greenhouse gas emissions, which cause climate change. "With this action, E.P.A. flips its mission on its head," said Hana Vizcarra, a senior lawyer at the nonprofit Earthjustice, which is representing six groups in the lawsuit. "It abandons its core mandate to protect human health and the environment to boost polluting industries and attempts to rewrite the law in order to do so."

[...] Also on Wednesday, two other nonprofit law firms filed their own lawsuit against the E.P.A. over the endangerment finding, on behalf of 18 youth plaintiffs. That suit, by Our Children's Trust and Public Justice, argues that the E.P.A.'s move was unconstitutional. Separate legal challenges to E.P.A. rules are generally consolidated into one case at the D.C. Circuit Court, which is where disputes involving the Clean Air Act are required to be heard. But the sheer number of groups involved could make the legal battle lengthy and complicated to manage. A three-judge panel at the Circuit Court is expected to pore over several rounds of legal briefs before oral arguments begin. Those may not take place until next year.

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