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      Donald Trump’s Latest Indictment May Reshape the 2024 Race

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      The former president, who faces seven criminal charges for mishandling classified documents, is expected to surrender to authorities next week.“I’m an innocent man,” Donald Trump told his supporters on Thursday night.Mandel Ngan/Agence France-Presse — Getty ImagesTrump indicted: what to expect next For the second time in two months, Donald Trump will surrender to the authorities to face legal charges, dropping another bomb into the 2024 presidential race. Within minutes, he was fund-raising on the back of the news.The indictment hasn’t yet been unsealed, but some details are known. The former president and front-runner for the Republican nomination faces seven criminal charges that he mishandled classified documents from his time in the White House and obstructed the government’s efforts to reclaim them. He is expected to turn himself in to the authorities on Tuesday.Mr. Trump himself broke the news last night, a sign his inner circle had been bracing for the indictment for weeks.On his Truth Social platform, Mr. Trump called the charges “election interference at the highest level,” adding, “I’m an innocent man.” Mr. Trump’s legal troubles keep piling up. But this indictment holds greater “legal gravity and political peril,” writes The Times’s Peter Baker. It’s not just a first in American history for a former president, but also involves the nation’s secrets.Here’s a recap of the other legal matters he faces:A federal grand jury last month ordered Mr. Trump to pay $5 million to the journalist E. Jean Carroll in a civil case that he sexually abused and then defamed her; Carroll’s legal team has sued Mr. Trump again over subsequent comments he made about her.In April, the New York authorities charged Mr. Trump with falsifying business documents in connection with hush-money payments to the porn star Stormy Daniels in the run-up to the 2016 presidential election.Mr. Trump is also under investigation in Georgia for possible election tampering in the state; a decision is expected later this summer.Mr. Trump’s Republican challengers came to his defense. Gov. Ron DeSantis of Florida, his nearest rival in the polls, accused the Biden administration of weaponizing the Justice Department to take on a political rival. And Vivek Ramaswamy, the anti-woke financier, said he would pardon Mr. Trump if elected president.Mr. Trump gained in the polls the last time he was charged. It is unclear if the public will be so supportive this time. A Yahoo-YouGov poll showed nearly two-thirds of Americans view the charges of removing classified documents and obstructing the investigation as a serious criminal matter; a similar percentage feel that he should not serve as president if convicted.So far, big-money conservative donors have stayed mum on the latest charges. Many have deserted Mr. Trump after backing him in previous election cycles.HERE’S WHAT’S HAPPENING The wildfire haze is moving on from the Northeast. Cities including New York and Philadelphia have seen air conditions improve, though the noxious smoke is spreading south and west; the F.A.A. has lifted ground stops at LaGuardia and Newark airports. But scientists confirmed that the El Niño weather phenomenon has started, portending hotter temperatures through next year.China suffers from a lack of inflation. New monthly data shows that producer prices fell 4.6 percent in May, the sharpest year-on-year drop in seven years, while consumer prices rose just 0.2 percent. Though a contrast from Western countries grappling with rapid inflation, the trend suggests China’s faltering economy may soon suffer from deflation.The White House reportedly braces for the death of its student loan forgiveness program. Biden administration officials are privately worrying that the Supreme Court may strike down its proposal, which would eliminate up to $20,000 in education debt per person for millions of Americans, according to The Wall Street Journal. The White House is preparing less legally risky alternatives to help borrowers.G.M. electric vehicles will gain access to Tesla’s charging network. The move, which follows a similar announcement by Ford, will vastly expand charger accessibility for G.M. But some in the industry fear that wider adoption of Tesla’s plugs, which are now likely to become the industry standard, will give Elon Musk’s company even greater power over the E.V. market.The bull market rally is already being testedInvestors shrugged off lousy labor market data and a new round of inflation warnings to push the S&P 500 into bull market territory on Thursday. But that enthusiasm seems to be waning on Friday morning as stock futures suggest markets will open lower.The bear market lasted 248 trading days, the longest such run since 1948. Since its October low, the S&P 500 has gained 20.04 percent, just enough to tip into a bull market. The benchmark index is still roughly 10 percent away from a record high; some market observers say, therefore, that it’s premature to call this a true bull market.Investor enthusiasm for artificial intelligence has underpinned this rally. According to Deutsche Bank analysts, the FANG+ Index — a collection of big cap tech stocks, many of which are expanding into A.I. — is up nearly 80 percent since ChatGPT debuted in November.Now to the bad news … A growing number of economists believe that next week’s Consumer Price Index report will show an uptick in core inflation. That could pressure the Fed to raise interest rates further — if not next week, in July.And there are signs of economic weakness. The Labor Department on Thursday reported 261,000 new jobless claims, the highest number since October 2021.Expect a prolonged period of economic uncertainty. That was the message from Mario Draghi, the former Italian prime minister and president of the E.C.B., in a speech on Thursday at M.I.T.The economist, who once famously vowed to do “whatever it takes” to save the euro, has a bearish view of the future. He warned that industrialized economies face a “volatile cocktail” of persistent inflation, high budget deficits, high interest rates and low potential growth as central banks grapple with a climate crisis, the reshoring of supply chains and the impact of Russia’s war in Ukraine.Crypto’s protagonists lay out their casesRegulators and crypto executives are making their cases in the court of public opinion after the S.E.C. sued Binance and Coinbase, two of the sector’s biggest exchanges, this week in an intensifying crackdown on the industry.“We’ve seen this story before,” the S.E.C. chairman Gary Gensler said on Thursday at a fintech conference, likening widespread noncompliance in crypto to the era of “hucksters” and fraud a century ago. He rejected claims that digital asset businesses cannot comply with the existing rules or do not realize that they apply: “When crypto asset market participants go on Twitter or TV and say they lacked ‘fair notice’ that their conduct could be illegal, don’t believe it.”Coinbase’s boss says that new regulations are needed. Its C.E.O., Brian Armstrong, addressed the event on Wednesday, saying the rules are opaque and need to be updated. The S.E.C. case is certainly a drag on his company: Moody’s, the ratings agency, downgraded Coinbase on Thursday to negative from stable because of the charges.Binance is regrouping. The company’s American division said on Thursday that it would no longer allow customers to trade in U.S. dollars, after banks stopped working with it. At the same time, the S.E.C. says it is trying to find “alternative means” to serve legal papers to Binance and Changpeng Zhao, the company’s C.E.O., telling a federal court that it was difficult to determine where he was.Who’s judging? The S.E.C.’s case against Coinbase in New York was assigned to District Judge Jennifer Rearden. Her nomination last year angered some Democratic lawmakers because she represented Chevron as a lawyer at Gibson, Dunn & Crutcher. She’s also handling the government’s appeal of the sale of the failed crypto broker Voyager to Binance’s U.S. arm and put the deal on hold in March. Judge Amy Berman Jackson of the Federal District Court for D.C. is presiding over the Binance case, and is best known for overseeing the criminal proceedings against two Mr. Trump advisers, Paul Manafort and Roger Stone. Next week, she will hold a hearing on an S.E.C. request to freeze Binance’s assets.“I did not comprehend that ChatGPT could fabricate cases.” — Steven Schwartz, a lawyer who has practiced in New York for 30 years. He told a federal judge that he regrets using the chatbot to write a legal brief that was found to be filled with fake judicial opinions and legal citations.Buzzphrase of the week: “spatial computing” Apple unveiled its first headset for augmented/virtual/mixed reality this week, but none of those words appears in a nine-minute video on its website about the $3,500 Vision Pro goggles. Instead, the company preferred a more obscure term: “spatial computing.”Apple is trying to put its own stamp on the category. When it comes to spatial computing, “no one knows what that is — and that provides Apple the opportunity to define it,” Marcus Collins, the author of “For the Culture: The Power Behind What We Buy, What We Do and Who We Want to Be,” told DealBook.Apple has successfully done this in the past. Before the App Store, people didn’t talk about apps; they talked about “software programs.”And the iPhone and AirPods were neither the first mobile phone nor the first earbuds, but they became runaway hits (despite being priced at a premium to the competition). Jim Posner, a communications consultant who has led teams at Twitter and Google, said that the intended audience may be investors and the media rather than consumers. “They are pitching a product to people,” he said. “For the tech press, industry analysts and investors, they’re pitching a concept.”Elsewhere, Mark Zuckerberg gave his thoughts on Apple’s Vision Pro goggles. “I was really curious to see what they’d ship,” the Meta C.E.O. told employees on Thursday, “and it’s a good sign for our own development that they don’t have any magical solutions to the laws of physics that we haven’t already explored.”THE SPEED READ DealsThe agricultural commodities giant Bunge is said to be finalizing a deal to buy Viterra, a grain trader, that could value the combined firm at $30 billion. (Reuters)UBS has secured a government backstop for losses tied to its takeover of Credit Suisse, clearing the last hurdle for combining Switzerland’s top two banks. (FT)Permira is reportedly weighing a sale or public listing for Golden Goose, a footwear brand favored by Taylor Swift, at a $2.7 billion valuation. (Bloomberg)PolicyLouisiana passed a bill that would block online services — including Instagram, TikTok and Fortnite — for children under 18 without their parents’ permission. (NYT)The Supreme Court unanimously ruled against a dog-toy maker whose product closely resembles a bottle of Jack Daniels whiskey. (NYT)Best of the restSam Altman of OpenAI, Bob Iger of Disney, Jay Monahan of the PGA Tour, Rupert Murdoch of Fox and Sundar Pichai of Alphabet are all on the guest list for this year’s Allen & Company gathering in Sun Valley, Idaho. (Variety)How Taylor Swift is a godsend for Chicago’s hotel industry. (Bloomberg)“What All the Single Ladies (and Men) Say About the Economy” (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Big Tech and the Fed

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      Some tech companies’ earnings are flagging, in what could be a positive sign for the Federal Reserve.Still big.Noah Berger/Agence France-Presse — Getty ImagesWhat tech earnings say about the economy The long-booming bottom lines of major tech companies are all of a sudden smaller than expected. That might be a good thing. Big Tech sailed through the pandemic with its profits mostly intact. The fact that some firms’ results are now flagging could be a positive sign for the Federal Reserve, which is trying to engineer a slowdown as it fights the nation’s worst bout of inflation in four decades.The big question for investors, and perhaps the Fed, is whether the profits of Apple, Alphabet, Amazon and the other tech giants, along with corporate America in general, have fallen enough.Microsoft and Alphabet, Google’s parent company, kicked off what appears to be a disappointing round of quarterly reports for the U.S.’s largest tech companies yesterday. Meta will release its results this afternoon, with Apple and Amazon rounding out Big Tech’s earnings announcements tomorrow.Microsoft’s profits, while below expectations, were still up. Sales of its signature software products, like Office, rose 13 percent. Its cloud services were up 40 percent. And LinkedIn, the professional social network Microsoft bought in 2016, grew 26 percent from a year ago, continuing to benefit from the tightest job market in decades.Alphabet’s sales rose 13 percent. In another good sign for the economy, the jump was driven by better-than-expected sales in its core Google search engine business, while results were mixed elsewhere. A jump in expenses and an exit from its Russian-related businesses caused profits to slump 14 percent.The results were positive enough for investors. Alphabet’s shares rose nearly 5 percent on the earnings news to $110. Microsoft’s shares jumped $10, or nearly 4 percent, to $262. Executives at both companies said they saw evidence of a weaker economy. “We are not immune to what is happening in the macro broadly,” Satya Nadella, Microsoft’s chief executive, said on a call with analysts. Alphabet’s chief financial officer, Ruth Porat, told analysts that a pullback in spending by some advertisers reflected “uncertainty about a number of factors.”Few are betting that the earnings reports will change the Fed’s approach. Its policymakers are meeting this week, and they are widely expected to continue raising benchmark interest rates. While central bankers “will likely acknowledge a recent weakening in economic momentum, the Fed will likely feel the need to appear resolute in battling inflation until there are clear signs that it is abating,” wrote David Kelly, the chief global strategist of J.P. Morgan Asset Management, in a note to clients earlier this week.HERE’S WHAT’S HAPPENING Kraken, the crypto exchange, is under investigation for possible sanctions violations. The Treasury Department is looking into whether Kraken illegally allowed users in Iran and elsewhere to buy and sell digital tokens. Shares of Coinbase, a larger crypto exchange, plunged yesterday after reports that the S.E.C. was investigating whether it allowed trading in unregistered securities. Cathie Wood’s Ark funds reportedly dumped Coinbase shares yesterday for the first time this year.Antitrust legislation aimed at Big Tech may be off the table for now. Chuck Schumer, the Senate majority leader, told donors at a Capitol Hill fund-raiser yesterday that the American Innovation and Choice Online Act, which he had promised to bring to a vote this summer, lacks the support needed to get it to the Senate floor, Bloomberg reported. The bill’s bipartisan backers have been pressuring Schumer to act fast, before midterm elections that could change the balance of power in Congress.One America News, once a dependable Trump promoter, is struggling to survive. The network is being dropped by major carriers and faces a wave of defamation lawsuits for its outlandish stories about the 2020 election. OAN’s most recent blow is from Verizon, which will stop carrying the network on its Fios television service this week. It is now available to only a few thousand people who subscribe to regional cable providers.Teva Pharmaceuticals reaches a tentative $4.25 billion settlement over opioids. The proposed settlement, which is with some 2,500 local governments, states and tribes, would end thousands of lawsuits against one of the largest producers of the painkillers during the height of the opioid epidemic.Florida’s largest utility secretly funded a website that attacked its critics. Florida Power & Light bankrolled and controlled The Capitolist, a news site aimed at Florida lawmakers, through intermediaries from an Alabama consulting firm, an investigation by The Miami Herald found. The site claimed to be independent, but it advocated rate hikes and legislative favors in efforts that were directed by top executives at the utility.BlackRock downshifts on E.S.G. BlackRock, the world’s largest asset manager, slashed its support for shareholder proposals on environmental and social issues this year, backing only 24 percent of such resolutions in the proxy season that ended in June, down from 43 percent in the previous period. The firm, which has long led the conscious investing movement, said this year’s proposals were “less supportable” and cited new regulatory guidance that opened the door to a broader range of policy-related proposals.The firm has criticized overly “prescriptive” resolutions. In a May memo, BlackRock signaled that Russia’s war in Ukraine was straining global energy supplies and shifting its calculations. “Many climate-related shareholder proposals sought to dictate the pace of companies’ energy transition plans despite continued consumer demand,” wrote the firm’s global head of investment stewardship, Sandy Boss. She noted that shareholders generally supported fewer environmental and social proposals this year as well, voting for 27 percent of resolutions, down from 36 percent in the previous proxy period.Opposition to E.S.G. is mounting. The environmental, social and governance investment push has been labeled “woke capitalism” by critics and is under fire from executives like Tesla’s Elon Musk, major investors like Bill Ackman and Republican politicians. In a speech yesterday, former Vice President Mike Pence, a possible 2024 hopeful, said that big government and big business were together advancing a “pernicious woke agenda.”E.S.G. supporters say critics may have a point. Andrew Behar, C.E.O. of the shareholder advocacy group As You Sow, agrees that many supposed E.S.G. investments don’t reflect true sustainability — with ever more capital directed toward the idea and many funds failing to live up to their promises. Behar argued that more corporate disclosures — which anti-E.S.G. groups oppose — would help to ensure that green investing actually works. He argues that critics also ignore a key financial incentive driving investor interest: knowing and lowering the costs of environmental issues throughout company operations, including risks from changing weather and the transition to more sustainable models. “We don’t have an E.S.G. problem,” Behar told DealBook. “We have a naming problem.”“I quit Starbucks. I had to. I just didn’t feel like that was justifiable. It’s like a small car payment.” — Fontaine Weyman, a 43-year-old songwriter from Charleston, S.C., on changing her coffee habits. Many Americans are dealing with the fastest inflation of their adult lives across a broad range of goods and services.Instagram tries to explain itself Instagram responded yesterday to criticism from some of its most popular users, including Kylie Jenner, about new features that made it more like its top rival, TikTok, the fast-growing video app owned by the Chinese company ByteDance.Adam Mosseri, Instagram’s head, said that it was experimenting with several changes, and that he knew users were unhappy. “It’s not yet good,” he said of some of the tweaks in a video post. He stressed Instagram’s commitment to photos, the app’s original focus, but said, “I’m going to be honest, I do believe that more and more of Instagram is going to become video over time.”Reels, a short-video product, is one of the six main investment priorities at Meta, which owns Facebook and Instagram, according to an internal memo last month from Chris Cox, the company’s chief product officer. Cox said that users had doubled the amount of time they spent on Reels year over year, and that Meta would prioritize boosting ads in Reels “as quickly as possible.” Last week, Instagram announced that almost all videos in the app would be posted as Reels.The changes come as Meta heads into a new phase. Mark Zuckerberg, its founder and chief executive, has cut costs, reshuffled his leadership team and made clear that low-performing employees will be let go, writes The Times’s Mike Isaac. “Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg said on a call late last month. In recent months, profit at Meta has fallen and revenue has slowed as the company has spent lavishly on augmented and virtual reality projects, and as the economic slowdown has hurt its advertising business.The high-profile complaints about Instagram’s revamp started in recent days, when Kylie Jenner, the beauty mogul with 361 million Instagram followers, shared an image on the site that read: “Make Instagram Instagram again. (stop trying to be tiktok i just want to see cute photos of my friends.) Sincerely, everyone.”“PRETTY PLEASE,” Kim Kardashian, Jenner’s half sister and the seventh-most-followed Instagram user, echoed in a later post. Yesterday, Chrissy Teigen, a model and author with 39 million followers, responded to Mosseri in a tweet, saying, “we don’t wanna make videos Adam lol.”Companies have reason to listen when social media stars speak up, writes The Times’s Kalley Huang. In 2018, after Snapchat overhauled its interface, Jenner tweeted: “sooo does anyone else not open Snapchat anymore? Or is it just me….” Within a week, Snap, the app’s parent company, had lost $1.3 billion in market value.THE SPEED READ DealsThe activist investor Elliott Management reportedly has a stake in Paypal and is pushing it to cut costs faster. (WSJ, Bloomberg)Twitter shareholders will be asked to vote on Elon Musk’s potential acquisition in September. (Bloomberg)PolicyThe Senate advanced an industrial policy bill that includes more than $52 billion in subsidies for chip makers building U.S. plants. (NYT)The short seller Carson Block is being sued over a $14 million award from the S.E.C. that raised questions about the agency’s whistle-blower program. (Bloomberg)After Apple launched a “buy now, pay later” service, the top U.S. consumer finance regulator warned Big Tech about undermining competition in the sector. (FT)A federal judge ruled that Uber doesn’t have to offer wheelchair-accessible cars in every city. (The Verge)Best of the restCredit Suisse, which reported larger second-quarter losses than expected, replaced its C.E.O. (FT)Customers are paying billions of dollars in fees for “free” checking. (Bloomberg)The default settings in Apple, Google, Amazon and Microsoft products that you should turn off right away. (NYT)This man sells mud to Major League Baseball. (NYT)“The Case of the $5,000 Springsteen Tickets” (NYT)R.I.P., Choco Taco. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Election Falsehoods Surged on Podcasts Before Capitol Riots, Researchers Find

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      A new study analyzed nearly 1,500 episodes, showing the extent to which podcasts pushed misinformation about voter fraud.Weeks before the 2020 presidential election, the conservative broadcaster Glenn Beck outlined his prediction for how Election Day would unfold: President Donald J. Trump would be winning that night, but his lead would erode as dubious mail-in ballots arrived, giving Joseph R. Biden Jr. an unlikely edge.“No one will believe the outcome because they’ve changed the way we’re electing a president this time,” he said.None of the predictions of widespread voter fraud came true. But podcasters frequently advanced the false belief that the election was illegitimate, first as a trickle before the election and then as a tsunami in the weeks leading up to the violent attack at the Capitol on Jan. 6, 2021, according to new research.Researchers at the Brookings Institution reviewed transcripts of nearly 1,500 episodes from 20 of the most popular political podcasts. Among episodes released between the election and the Jan. 6 riot, about half contained election misinformation, according to the analysis.In some weeks, 60 percent of episodes mentioned the election fraud conspiracy theories tracked by Brookings. Those included false claims that software glitches interfered with the count, that fake ballots were used, and that voting machines run by Dominion Voting Systems were rigged to help Democrats. Those kinds of theories gained currency in Republican circles and would later be leveraged to justify additional election audits across the country.Misinformation Soared After ElectionThe share of podcast episodes per week featuring election misinformation increased sharply after the election.

      Note: Among the most popular political talk show podcasts evaluated by Brookings, using a selection of keywords related to electoral fraud between Aug. 20, 2020 and Jan. 6, 2021.Source: The Brookings InstitutionThe New York TimesThe new research underscores the extent to which podcasts have spread misinformation using platforms operated by Apple, Google, Spotify and others, often with little content moderation. While social media companies have been widely criticized for their role in spreading misinformation about the election and Covid-19 vaccines, they have cracked down on both in the last year. Podcasts and the companies distributing them have been spared similar scrutiny, researchers say, in large part because podcasts are harder to analyze and review.“People just have no sense of how bad this problem is on podcasts,” said Valerie Wirtschafter, a senior data analyst at Brookings who co-wrote the report with Chris Meserole, a director of research at Brookings.Dr. Wirtschafter downloaded and transcribed more than 30,000 podcast episodes deemed “talk shows,” meaning they offered analysis and commentary rather than strictly news updates. Focusing on 1,490 episodes around the election from 20 popular shows, she created a dictionary of terms about election fraud. After transcribing the podcasts, a team of researchers searched for the keywords and manually checked each mention to determine if the speaker was supporting or denouncing the claims.In the months leading up to the election, conservative podcasters focused mostly on the fear that mail-in ballots could lead to fraud, the analysis showed.At the time, political analysts were busy warning of a “red mirage”: an early lead by Mr. Trump that could erode because mail-in ballots, which tend to get counted later, were expected to come from Democratic-leaning districts. As ballots were counted, that is precisely what happened. But podcasters used the changing fortunes to raise doubts about the election’s integrity.Election misinformation shot upward, with about 52 percent of episodes containing misinformation in the weeks after the election, up from about 6 percent of episodes before the election.The biggest offender in Brookings’s analysis was Stephen K. Bannon, Mr. Trump’s former adviser. His podcast, “Bannon’s War Room,” was flagged 115 times for episodes using voter fraud terms included in Brookings’ analysis between the election and Jan. 6.“You know why they’re going to steal this election?” Mr. Bannon asked on Nov. 3. “Because they don’t think you’re going to do anything about it.”As the Jan. 6 protest drew closer, his podcast pushed harder on those claims, including the false belief that poll workers handed out markers that would disqualify ballots.“Now we’re on, as they say, the point of attack,” Mr. Bannon said the day before the protest. “The point of attack tomorrow. It’s going to kick off. It’s going to be very dramatic.”Mr. Bannon’s show was removed from Spotify in November 2020 after he discussed beheading federal officials, but it remains available on Apple and Google.When reached for comment on Monday, Mr. Bannon said that President Biden was “an illegitimate occupant of the White House” and referenced investigations into the election that show they “are decertifying his electors.” Many legal experts have argued there is no way to decertify the election.Election Misinformation by PodcastThe podcast by Stephen K. Bannon was flagged for election misinformation more than other podcasts tracked by the Brookings Institution.

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      Episodes sharing electoral misinformation
      Note: Among the most popular political talk show podcasts evaluated by Brookings, using a selection of keywords related to electoral fraud between Aug. 20, 2020 and Jan. 6, 2021.Source: Brookings InstitutionBy The New York TimesSean Hannity, the Fox News anchor, also ranked highly in the Brookings data. His podcast and radio program, “The Sean Hannity Show,” is now the most popular radio talk show in America, reaching upward of 15 million radio listeners, according to Talk Media.“Underage people voting, people that moved voting, people that never re-registered voting, dead people voting — we have it all chronicled,” Mr. Hannity said during one episode.Key Figures in the Jan. 6 InquiryCard 1 of 10The House investigation. More

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      Apple and Google Remove ‘Navalny’ Voting App in Russia

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      The app, from the Russian opposition leader Aleksei Navalny, vanished from online stores as polls opened in the parliamentary election it was designed to sway.MOSCOW — An app designed by Russian activists to coordinate protest voting in this weekend’s elections disappeared from the Google and Apple app stores in the country on Friday, a major blow to the opposition leader Aleksei A. Navalny and allies who hoped to subvert the commanding position of President Vladimir V. Putin’s governing party.Google removed the app Friday morning after the Russian authorities issued a direct threat of criminal prosecution against the company’s staff in the country, naming specific individuals, according to a person familiar with the company’s decision. The move comes one day after a Russian lawmaker raised the prospect of retribution against employees of the two technology companies, saying they would be “punished.”The person declined to be identified for fear of angering the Russian government.On Friday Mr. Putin’s spokesman, Dmitri S. Peskov, said, “That app is illegal” when asked about it on his regular call with journalists. “Both platforms have been notified and in accordance with the law they made these decisions, as it seems,’’ he said.Apple did not respond to requests for comment about the availability of the Navalny app in its store.The app disappeared just as voting got underway in the three-day parliamentary election, in which Mr. Navalny’s team was hoping to use its app — called “Navalny” — to consolidate the opposition vote in each of Russia’s 225 electoral districts.“Removing the Navalny app from stores is a shameful act of political censorship,” an aide to Mr. Navalny, Ivan Zhdanov, said on Twitter. “Russia’s authoritarian government and propaganda will be thrilled.”A polling station in Vladivostok, in eastern Russia, on Friday as voting in the parliamentary election began.Pavel Korolyov/Agence France-Presse — Getty ImagesMaintaining open, uncensored access to their services, especially in authoritarian countries, is becoming one of the most vexing challenges for American tech companies like Apple, Google, Facebook and Twitter. In countries such as India, Myanmar and Turkey, the authorities are increasingly pressuring the companies to censor certain political speech, or ordering internet outages to block access to the web.Civil society groups have warned that forcing the companies to conform to a patchwork of laws and regulations risks creating a more fractured internet, where the products and services available to people will depend on where they are.The threat to prosecute local employees is an escalation by the Kremlin as it seeks to induce Western tech giants to fall in line with a broader internet crackdown. The country’s internet regulator, Roskomnadzor, has repeatedly demanded that the companies remove certain content, on pain of fines or restrictions on access to their products. The government says that American internet companies are meddling in Russia’s domestic affairs by allowing anti-Kremlin activists to use their platforms freely; Mr. Navalny’s movement was outlawed as extremist this summer.The Russian government had been increasingly blunt in recent days about its willingness to use threats to prevent the use of the app. “With the participation of Apple and Google, specific crimes are being committed, the scale of which may only increase in the coming days,” Vladimir Dzhabarov, a member of Russia’s upper house of Parliament, said on Thursday. “Individuals contributing to their parent companies’ evasion of responsibility on the territory of the Russian Federation will be punished.”Bailiffs visited Google’s offices earlier this week seeking to enforce court-ordered measures against the protest voting campaign, state media reported.Russian authorities have been pressuring Apple and Google for weeks to remove the Navalny team’s voting app. With Mr. Navalny’s websites blocked inside Russia, the app became a loophole allowing exiled allies of the imprisoned politician to continue to reach a wide audience. Nearly every smartphone runs Apple’s iOS or Google’s Android operating system, making their app stores the key artery for getting any product to the public.The Russian Foreign Ministry summoned the American ambassador to Moscow, John J. Sullivan, last week and announced that “American ‘digital giants’” had broken Russian law “in the context of the preparation and conduct of the elections.”“The patience of the Russian side, which for now has refrained from putting up barriers to American business in Russia, is not unlimited,” the Foreign Ministry’s spokeswoman, Maria V. Zakharova, warned on Thursday.Aleksei A. Navalny, the Russian opposition leader, at a court hearing in January.Sergey Ponomarev for The New York TimesThe “Navalny” app is central to a protest-vote strategy that the opposition leader calls “smart voting.” Elections in Russia are not free and fair, but the Kremlin still seeks the sheen of popular legitimacy by holding elections in which a stable of dull parties typically splits the opposition vote.The Navalny strategy, first deployed regionally in 2019, seeks to turn that system of “managed democracy” against Mr. Putin. The goal is to defeat as many candidates representing the governing United Russia party as possible by having all opposition-minded voters in each district pick the same challenger — whether or not they agree with their views. The “Navalny” app coordinates the process, requesting a user’s address and responding with the name of the candidate they should vote for.The Navalny team on Friday said they would seek to get the names of their “smart voting” picks out by alternate methods, such as automated responses in the messaging app Telegram. But they voiced anger at Apple and Google for apparently folding to Kremlin pressure.“This shameful day will long remain in history,” Leonid Volkov, Mr. Navalny’s longtime chief of staff, wrote on his Telegram account.Anton Troianovski More

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      Apple Says It Turned Over Data on Donald McGahn in 2018

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      The company notified Donald F. McGahn II last month that it had been subpoenaed for his account information three years ago.WASHINGTON — The Justice Department subpoenaed Apple for information in February 2018 about an account that belonged to Donald F. McGahn II, President Donald J. Trump’s White House counsel at the time, and barred the company from telling him about it, according to two people briefed on the matter.Apple told Mr. McGahn about the subpoena last month, said one of the people, who spoke on the condition of anonymity to discuss the matter. Mr. McGahn’s wife also received a similar notice from Apple, the person said.It is not clear what F.B.I. agents were investigating, whether Mr. McGahn was their specific focus or whether he was swept up in a larger net because he had communicated with someone who was under scrutiny. As the top lawyer for the 2016 Trump campaign and then the White House counsel, Mr. McGahn was in contact with numerous people who may have drawn attention either as part of the Russia investigation or a later leak inquiry.Still, the disclosure that agents had collected data of a sitting White House counsel, which they kept secret for years, is extraordinary.And it comes amid a political backlash after revelations that the Trump administration secretly seized the personal data of reporters and Democrats in Congress from phone and tech companies while investigating leaks.Democratic leaders on Capitol Hill on Sunday ratcheted up pressure on the Justice Department and former officials to provide a fuller accounting of events. They called on the head of the Justice Department’s national security division, John C. Demers, and the former deputy attorney general, Rod J. Rosenstein, to testify before Congress along with the former attorneys general Jeff Sessions and William P. Barr.A Justice Department spokesman declined to comment, as did a lawyer for Mr. McGahn. An Apple representative did not respond to a request for comment.Apple told Mr. McGahn that it had complied with the subpoena in a timely fashion but declined to tell him what it had provided the government, according to a person briefed on the matter. Under Justice Department policy, gag orders for subpoenas may be renewed for up to a year at a time, suggesting that prosecutors went to court several times to prevent Apple from notifying the McGahns earlier.In investigations, agents sometimes compile a large list of phone numbers and email addresses that were in contact with a subject, and seek to identify all those people by using subpoenas to communications companies for any account information like names, computer addresses and credit card numbers associated with them.Apple told the McGahns that it had received the subpoena on Feb. 23, 2018, according to a person briefed on the matter.Under federal law, prosecutors generally need to obtain permission from a federal judge in order to compel a company like Apple to delay notifying people that their personal information has been subpoenaed, said Paul M. Rosen, a former federal prosecutor and a partner at Crowell and Moring.“There is a lot here we don’t know, including the facts and circumstances surrounding the request for the delay and what was presented to the judge,” Mr. Rosen said. But, he added, prosecutors typically need to prove that either notifying the person “would endanger someone’s safety, risk the destruction of evidence or intimidation of witnesses, or seriously jeopardize an investigation.”The subpoena was issued by a grand jury in the Eastern District of Virginia, the other person familiar with the matter said.It is not clear why prosecutors obtained the subpoena. But several notable developments were unfolding around that time.The federal court in the Eastern District of Virginia was the center of one part of the Russia inquiry led by the special counsel, Robert S. Mueller III, that focused on Paul Manafort, a former chairman of the 2016 Trump presidential campaign.Because Mr. McGahn had been the top lawyer for the Trump campaign in 2016, it is possible that at some earlier point he had been among those in contact with someone whose account the Mueller team was scrutinizing in early 2018.Notably, Mr. Manafort had been hit with new fraud charges unsealed in the Eastern District of Virginia the day before the subpoena. Subsequent developments revealed that Mr. Mueller’s investigators were closely scrutinizing some of his communications accounts in the following days.On the other hand, the Manafort case was largely handled in the District of Columbia, where he faced separate charges. Still, the Mueller team was also working with federal prosecutors in Virginia during that period on an unregistered foreign agent case related to Turkey and a business partner of Michael T. Flynn’s, Mr. Trump’s former national security adviser who had also advised him during the 2016 campaign.It was also around that time that Mr. McGahn was involved in another matter related to the Russia investigation, one that included a leak.In late January 2018, The New York Times reported, based on confidential sourcing, that Mr. Trump had ordered Mr. McGahn the previous June to have the Justice Department remove Mr. Mueller, but Mr. McGahn had refused to do so and threatened to resign. The Washington Post confirmed that account soon after in a follow-up article.The Mueller report — and Mr. McGahn in private testimony before the House Judiciary Committee this month — described Mr. Trump’s anger at Mr. McGahn after the Times article and how he had tried to persuade Mr. McGahn to make a statement falsely denying it. Mr. Trump told aides that Mr. McGahn was a “liar” and a “leaker,” according to former Trump administration officials. In his testimony, Mr. McGahn said that he had been a source for The Post’s follow-up to clarify a nuance — to whom he had conveyed his intentions to resign — but he had not been a source for the original Times article.There are reasons to doubt that Mr. McGahn was the target of any Justice Department leak investigation stemming from that episode, however. Information about Mr. Trump’s orders to dismiss Mr. Mueller, for example, would not appear to be a classified national-security secret of the sort that it can be a crime to disclose.Yet another roughly concurrent event was a Justice Department investigation into unauthorized disclosures of information about the Russia inquiry. As part of that investigation, prosecutors sent Apple a subpoena on Feb. 6, 2018, for data on congressional staff members, their families and at least two members of Congress. Apple only recently informed those targeted because it had been prohibited from disclosing the subpoena at the time.Among those whose data was seized were two Democrats on the House Intelligence Committee: Representatives Eric Swalwell and Adam B. Schiff, both of California. Mr. Schiff, a sharp political adversary of Mr. Trump, is now the panel’s chairman. The Times first reported on that subpoena last week.Many questions remain unanswered about the events leading up to the subpoenas, including how high they were authorized in the Trump Justice Department and whether investigators anticipated or hoped that they were going to sweep in data on the politically prominent lawmakers. The subpoena sought data on 109 email addresses and phone numbers.In that case, the leak investigation appeared to have been primarily focused on Michael Bahar, then a staff member on the House Intelligence Committee. People close to Mr. Sessions and Mr. Rosenstein, the top two Justice Department officials at the time, have said that neither knew that prosecutors had sought data about the accounts of lawmakers for that investigation.It remains unclear whether agents were pursuing a theory that Mr. Bahar had leaked on his own or whether they suspected him of talking to reporters with the approval of lawmakers. Either way, it appears they were unable to prove their suspicions that he was the source of any unauthorized disclosures; the case has been closed, and no charges were brought.Speaker Nancy Pelosi on Sunday called for Mr. Barr, Mr. Sessions and Mr. Rosenstein to testify before Congress about the subpoenas. She said that what the Justice Department did under Mr. Trump went “even beyond Richard Nixon” but declined to say whether a congressional committee would compel their testimony.“Let’s hope they will want to honor the rule of law,” she said. “The Justice Department has been rogue under President Trump.”Senator Chuck Schumer of New York, the majority leader, called for anyone potentially involved in the subpoenas, including Mr. Demers, to testify before Congress. “The sins of the Trump administration just continue to pile up,” he said at a news conference in New York.“This was nothing less than a gross abuse of power, an assault on the separation of powers,” Mr. Schumer said, warning that if the men would not testify, lawmakers would subpoena them.He also called on Senate Republicans to join Democrats in voting for congressional subpoenas to compel testimony.On CBS, Senator Susan Collins, Republican of Maine, called the allegations “serious” but said only that she was backing an investigation into the matter by the Justice Department’s independent inspector general that was announced on Friday.Katie Benner More

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      How Parler, a Chosen App of Trump Fans, Became a Test of Free Speech

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      #masthead-section-label, #masthead-bar-one { display: none }The Presidential TransitionLatest UpdatesHouse Moves to Remove TrumpHow Impeachment Might WorkBiden Focuses on CrisesCabinet PicksAdvertisementContinue reading the main storySupported byContinue reading the main storyHow Parler, a Chosen App of Trump Fans, Became a Test of Free SpeechThe app has renewed a debate about who holds power over online speech after the tech giants yanked their support for it and left it fighting for survival. Parler was set to go dark on Monday.John Matze, chief executive of the alternative social networking app Parler, has said the app welcomes free speech. Credit…Fox News, via YouTubeJack Nicas and Jan. 10, 2021Updated 10:15 p.m. ETFrom the start, John Matze had positioned Parler as a “free speech” social network where people could mostly say whatever they wanted. It was a bet that had recently paid off big as millions of President Trump’s supporters, fed up with what they deemed censorship on Facebook and Twitter, flocked to Parler instead.On the app, which had become a top download on Apple’s App Store, discussions over politics had ramped up. But so had conspiracy theories that falsely said the election had been stolen from Mr. Trump, with users urging aggressive demonstrations last week when Congress met to certify the election of President-elect Joseph R. Biden Jr.Those calls for violence soon came back to haunt Mr. Matze, 27, a software engineer from Las Vegas and Parler’s chief executive. By Saturday night, Apple and Google had removed Parler from their app stores and Amazon said it would no longer host the site on its computing services, saying it had not sufficiently policed posts that incited violence and crime. As a result, Parler was set to disappear from the web on Monday.That set off a furious effort to keep Parler online. Mr. Matze said on Sunday that he was racing to save the data of Parler’s roughly 15 million users from Amazon’s computers. He was also calling company after company to find one willing to support Parler with hundreds of computer servers.“I believe Amazon, Google, Apple worked together to try and ensure they don’t have competition,” Mr. Matze said on Parler late Saturday. “They will NOT win! We are the worlds last hope for free speech and free information.” He said the app would probably shut down “for up to a week as we rebuild from scratch.”Credit…ScreenshotParler’s plight immediately drew condemnation from those on the right, who compared the big tech companies to authoritarian overlords. Representative Devin Nunes, a California Republican, told Fox News on Sunday that “Republicans have no way to communicate” and asked his followers to text him to stay in touch. Lou Dobbs, the right-wing commentator, wrote on Parler that the app had a strong antitrust case against the tech companies amid such “perilous times.”Parler has now become a test case in a renewed national debate over free speech on the internet and whether tech giants such as Facebook, Google, Apple and Amazon have too much power. That debate has intensified since Mr. Trump was barred from posting on Twitter and Facebook last week after a violent mob, urged on by the president and his social media posts, stormed the Capitol.For years, Facebook and Twitter had defended people’s ability to speak freely on their sites, while Amazon, Apple, Google and others had stayed mostly hands-off with apps like Parler. That allowed misinformation and falsehoods to flow across online networks.A screenshot of Mr. Matze’s Parler profile.Users can choose whom to follow on Parler.Credit…ScreenshotThe tech companies’ actions last week to limit such toxic content with Mr. Trump and Parler have been applauded by liberals and others. But the moves also focused attention on the power of these private enterprises to decide who stays online and who doesn’t. And the timing struck some as politically convenient, with Mr. Biden set to take office on Jan. 20 and Democrats gaining control of Congress.The tech companies’ newly proactive approach also provides grist for Mr. Trump in the waning days of his administration. Even as he faces another potential impeachment, Mr. Trump is expected to try stoking anger at Twitter, Facebook and others this week, potentially as a launchpad for competing with Silicon Valley head on when he leaves the White House. After he was barred from Twitter, Mr. Trump said in a statement that he would “look at the possibilities of building out our own platform in the near future.”Ben Wizner, a lawyer for the American Civil Liberties Union, said it was understandable that no company wanted to be associated with the “repellent speech” that encouraged the breaching of the Capitol. But he said Parler’s situation was troubling.That was because Apple’s and Google’s removal of Parler from their app stores and Amazon’s halting its web hosting went beyond what Twitter or Facebook do when they curtail a user’s account or their posts, he said. “I think we should recognize the importance of neutrality when we’re talking about the infrastructure of the internet,” he said.In earlier statements, Apple, Amazon and Google said that they had warned Parler about the violent posts on its site and that it had not done enough to consistently remove them. The companies said they required sites like Parler to systematically enforce their rules. They declined to comment further on Sunday.Tech companies pulling support for certain websites is not new. In 2018, Gab, another alternative to Facebook and Twitter that is popular among the far right, was forced offline after it lost support from other companies, including PayPal and GoDaddy, because it had hosted anti-Semitic posts by a man who shot and killed 11 people at a Pittsburgh synagogue. Gab later came back online with the help of a Seattle company, Epik, which hosts other far-right websites.Even if Parler goes dark, right-wing personalities like Mr. Nunes who have built followings on the app do not lack other communication channels. Many still have ample followings on Facebook, Twitter and YouTube, which welcome any user who doesn’t violate their rules, which prohibit threatening violence or posting hate speech.Parler was founded in 2018 by Mr. Matze and a fellow programmer, one of several social-media upstarts that aimed to capitalize on the growing anger of Mr. Trump’s supporters with Silicon Valley. But Parler had a significant advantage: money. Rebekah Mercer, one of Mr. Trump’s largest donors, helped bankroll the site. Other investors include Dan Bongino, a former Secret Service agent and Fox News pundit. It plans to eventually make money by selling ads.The app is essentially a Twitter clone. It enables people to broadcast messages — known as “parleys,” not “tweets” — to followers. Users can also comment on and “echo” — not “retweet” — other users’ posts. When signing up for a new account, people are asked to select their favorite color and are urged to choose from a list of conservative voices to follow, including Mr. Nunes, the Fox News host Sean Hannity and the actress Kirstie Alley.These “influencers” dominate the experience on the site. On Sunday, the Parler newsfeed was a stream of their angry “parleys,” railing at Big Tech and pleading with their followers to follow them elsewhere.“Please sign up for my daily newsletter today, before the tech totalitarians ban everything,” wrote Mr. Bongino, who also controls one of Facebook’s most popular pages.Messages on Parler from Mr. Matze.Parler’s list of top personalities.Parler grew slowly until early 2020, when Twitter began labeling Mr. Trump’s tweets as inaccurate and some of his supporters joined Parler in protest. After November’s election, Parler grew even more quickly as Facebook and Twitter clamped down on false claims that the vote had been rigged. So many users signed up that, at times, they overloaded the company’s systems and forced it to pause new registrations.In total, people downloaded Parler’s app more than 10 million times last year, with 80 percent in the United States, according to Sensor Tower, the app data firm.Last Wednesday, Mr. Trump encouraged his supporters to march to the Capitol to pressure lawmakers to overturn his election loss, leading to a rampage that left five people dead. The rally was planned on Facebook, Twitter and elsewhere. On Parler, people posted advice on which streets to take to avoid the police; some posted about carrying guns inside the Capitol.In an interview with The New York Times hours after the mob stormed the Capitol, Mr. Matze said, “I don’t feel responsible for any of this and neither should the platform, considering we’re a neutral town square that just adheres to the law.”But on Friday, Apple and Google told Parler that it needed to more consistently remove posts that encouraged violence. By Saturday, Apple and Google had removed Parler from their app stores, limiting its ability to reach new users on virtually all of the world’s smartphones.“There is no place on our platform for threats of violence and illegal activity,” Apple said in a statement. Google said, “We do require that apps implement robust moderation for egregious content.”Late Saturday, Amazon told Parler that it would need to find a new place to host its site. Amazon said it had sent Parler 98 examples of posts on its site that encouraged violence, but many remained online.“We cannot provide services to a customer that is unable to effectively identify and remove content that encourages or incites violence against others,” Amazon said.Amazon was scheduled to pull its support for Parler just before midnight Sunday on the West Coast. Amazon said it would preserve Parler’s data so it could move it to other computer servers.“It’s devastating,” Mr. Matze told Fox News on Sunday. “And it’s not just these three companies. Every vendor, from text message services to email providers to our lawyers, all ditched us, too, on the same day.” He said he was struggling to find another company to host Parler’s website.But Jeffrey Wernick, Parler’s chief operating officer, said in an interview that the app had heard from several companies that wanted to help. He declined to name them.“What Parler will look like a month from now, I can’t tell you,” he said. “But Parler will not be gone.”AdvertisementContinue reading the main story More

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      Your Thursday Briefing

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      #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesThe Latest Vaccine InformationU.S. Deaths Surpass 300,000F.A.Q.AdvertisementContinue reading the main storySupported byContinue reading the main storyYour Thursday BriefingCronyism and waste in Britain’s pandemic spending.Dec. 17, 2020Updated 1:08 a.m. ET(Want to get this briefing by email? Here’s the sign-up.)Good morning.We’re covering a new analysis of Britain’s slipshod pandemic spending, a move to the right for Emmanuel Macron and an upside to the climate crisis for Russia.[embedded content]Medical staff wearing personal protective equipment, or P.P.E., at a hospital in Cambridge, England, in May. Officials shelled out billions in contracts for Covid-19 tests, vaccines and P.P.E.Credit…Pool photo by Neil HallCronyism and waste in Britain’s pandemic spendingAs Britain scrambled for protective gear and other equipment, select companies — many of which had close connections to the governing Conservative Party or no previous experience — reaped billions, according to a New York Times analysis of more than 2,500 contracts.In some cases, more qualified companies lost out to those with better political connections, which were granted access to a secretive V.I.P. lane that made them about 10 times more likely to be approved for a contract.Conclusions: While there is no evidence of illegal conduct, there is ample evidence of cronyism, waste and poor due diligence, with officials ignoring or missing red flags, including histories of fraud, human rights abuses, tax evasion and other serious controversies.Christmas restrictions: Prime Minister Boris Johnson has stuck by a pledge to lift limits on gatherings from Dec. 23 to 27 despite growing calls to abandon the plan as coronavirus cases surge.Here are the latest updates and maps of the pandemic.In other developments:The U.S. is negotiating a deal with Pfizer to produce tens of millions of additional doses of its coronavirus vaccine. Vaccinations began in the U.S. on Monday.The number of severe Covid-19 cases in the Gaza Strip sharply increased, raising concerns that hospitals could soon be overwhelmed.In the first week of Britain’s vaccination program, more than 137,000 people have received shots.An international team of 10 scientists working with the World Health Organization will travel next year to China to investigate the origins of the coronavirus.President Emmanuel Macron of France has moved to the right, alienating some former supporters and current members of his own party.Credit…Thomas Coex/Agence France-Presse — Getty ImagesMacron’s pre-election slide to the rightWith an eye on France’s next presidential election in 2022, President Emmanuel Macron has tacked to the right, alienating former liberal supporters and current members of his own party.After recent terrorist attacks, Mr. Macron pushed forward bills on security and Islamist extremism that raised alarms among some French, the United Nations and human rights groups, but won favor among right-leaning voters. Marine Le Pen, the leader of the far-right National Rally, is expected to be his main challenger.Analysis: Despite his center-left origins, Mr. Macron has always been known as a shape-shifter. His slide to the right is regarded by some as a clean break from the first three years of his presidency.Related: A French court found 14 people guilty of aiding the 2015 attack on the magazine Charlie Hebdo, supplying the attackers with cash, weapons and vehicles.Gender equality: The mayor of Paris was fined nearly $110,000 for hiring too many women, under a 2012 law intended to address gender imbalance at senior levels of the country’s Civil Service.A landmark ruling on air pollutionA 9-year-old girl who died of an asthma attack in 2013 became the first person in Britain to officially have air pollution listed as a cause of death, after she was exposed to levels of nitrogen dioxide and particulate matter beyond World Health Organization guidelines.The death of the girl, Ella Adoo-Kissi-Debrah, who was Black, shed a harsh light on how pollution disproportionately affects minorities and deprived families in Britain.Legal experts said it could open a new door to lawsuits by pollution victims or their families. The girl lived near a major road in southeast London. Her mother said that if she had been told air pollution was contributing to her daughter’s ill health, she would have moved.The Coronavirus Outbreak More

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      Your Tuesday Briefing

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