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By Eric Auchard BARCELONA (Reuters) - Facebook Inc founder Mark Zuckerberg was on hostile turf on Monday as spoke to executives at the world's biggest annual gathering of the mobile industry, renewing attempts to win their backing to help reach billions of users with no Internet access. Speaking at the Mobile World Congress in Barcelona, Zuckerberg sought to make peace with the telecoms industry, often some of his company's biggest critics, calling them "the folks who are here leading the charge to bring the Internet to the world." It was a turnabout from last year when Zuckerberg made waves at the event by showing up shortly after buying free communications service WhatsApp for $19.2 billion. His comments come amid an increasingly rancorous debate in which telecom and cable firms complain Silicon Valley giants such as Facebook and Google Inc that offer Web services are freeloading on the big investments they make in mobile and fixed-line networks. more...


By Jonathan Stempel NEW YORK (Reuters) - IBM Corp was sued on Monday by a shareholder that said it committed securities fraud by failing to write down a money-losing semiconductor unit before agreeing to pay another company $1.5 billion to take that unit off its hands. The lawsuit filed in Manhattan federal court arose from IBM's announcement last Oct. 20 that it would sell the unit to GlobalFoundries Inc, and take a related $4.7 billion pre-tax charge. Warren Buffett's Berkshire Hathaway Inc is among IBM's largest shareholders. According to the complaint, IBM inflated its stock price before selling the semiconductor unit by carrying the unit's property, plant and equipment assets on its books at $2.4 billion, when it should have known the assets were worthless. more...


By Jeff Mason WASHINGTON (Reuters) - President Barack Obama on Monday sharply criticized China's plans for new rules on U.S. tech companies, urging Beijing to change the policy if it wants to do business with the United States and saying he had raised it with President Xi Jinping. In an interview with Reuters, Obama said he was concerned about Beijing's plans for a far-reaching counterterrorism law that would require technology firms to hand over encryption keys, the passcodes that help protect data, and install security "backdoors" in their systems to give Chinese authorities surveillance access. "This is something that I’ve raised directly with President Xi," Obama said. "We have made it very clear to them that this is something they are going to have to change if they are to do business with the United States." The Chinese government sees the rules as crucial to protect state and business secrets. more...


The Obama administration is waiting for China to respond to concerns raised about planned new rules pushing Chinese banks to purchase high-tech products from domestic vendors, a senior State Department official said on Monday. U.S. business groups have complained about the regulations, and senior officials, including Secretary of State John Kerry, have written to their Chinese counterparts about them. "We have put forward our position and we ... have to see now what actions they take, but they have certainly registered that we have put forward our concerns," Catherine Novelli, under secretary of state for economic growth, energy, and the environment, told reporters at a round table discussion. Draft Chinese government regulations would force technology vendors to meet stringent security tests before they can sell to China's banks. more...


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