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LONDON — The U.S. and U.K. on Monday accused hackers linked to the Chinese state of being behind “malicious” cyber campaigns targeting political figures, in moves expected to stoke tensions with Beijing.

The British government also alleged that China-affiliated hackers were behind an attack that saw the data of millions of voters accessed.

“I can confirm today that Chinese state-affiliated actors were responsible for two malicious cyber campaigns targeting our democratic institutions and parliamentarians,” British Deputy Prime Minister Oliver Dowden said in a speech to Parliament on Monday.

Dowden attributed a hack on the Electoral Commission, the independent agency tasked with setting standards for how U.K. elections should be run, to a China state-affiliated actor. The campaigns were said to have taken place between 2021 and 2022.

The attack was identified by the Electoral Commission in October 2022, but wasn’t disclosed until last year. Hackers accessed the names and addresses of anyone in Britain registered to vote between 2014 and 2022, the Electoral Commission said in a 2023 public notice.

A spokesperson for the Chinese Embassy in the U.K. said allegations of China being behind cyberattacks in the U.K. were “completely fabricated and malicious slanders.”

“We strongly oppose such accusations,” the Chinese Embassy spokesperson told reporters at a press briefing Monday, according to an update that was posted on its website. “China has always firmly fought all forms of cyber attacks according to law.”

‘A clear pattern’

Dowden said the U.K. believes China to be behind attempted reconnaissance on the email accounts of U.K. lawmakers in the summer of 2021. He accused the Chinese hacking group APT31 of being behind this attack.

Cybersecurity firm Mandiant, which is owned by Google, describes APT31 as a “China-nexus cyber espionage actor focused on obtaining information that can provide the Chinese government and state-owned enterprises with political, economic, and military advantages.”

Dowden added that attempts to compromise the email accounts of U.K. lawmakers were however “unsuccessful.”

“We want now to be as open as possible with the House and the British public,” Dowden said. “This is the latest in a clear pattern of hostile activity originating in China.”

Dowden said the U.K. had sanctioned two individuals residing within China, as well as an entity affiliated with APT31.

U.S. hits out at China

Separately, the U.S. Justice Department unsealed an indictment Monday accusing Chinese state-linked hackers of being behind cyber campaigns targeting U.S. businesses, government officials and politicians.

The DOJ charged seven Chinese nationals, Ni Gaobin; Weng Ming; Cheng Feng; Peng Yaowen; Sun Xiaohui; Xiong Wang; and Zhao Guangzong, with conspiracy to commit computer intrusions and conspiracy to commit wire fraud for involvement in a China-based hacking group that spent 14 years targeting U.S. and foreign critics, businesses and political officials.

These individuals operated as part of the APT31 hacking group, the DOJ said.

“The Justice Department will not tolerate efforts by the Chinese government to intimidate Americans who serve the public, silence the dissidents who are protected by American laws, or steal from American businesses,” Attorney General Merrick B. Garland said in a statement Monday.

“This case serves as a reminder of the ends to which the Chinese government is willing to go to target and intimidate its critics, including launching malicious cyber operations aimed at threatening the national security of the United States and our allies,” Garland added.

Geopolitical tensions

The announcements from the U.K. and U.S. are likely to draw the ire of Beijing.

Relations between the U.K. and China have soured over the years, particularly on the tech front, following actions from the British government designed to stem national security risks from Chinese technology companies.

“The impact of such a breach on UK-Sino relations could be profound,” Javvad Malik, lead security awareness advocate at cybersecurity firm KnowBe4, told CNBC on Monday via email.

“It’s likely to escalate tensions, leading to diplomatic strain and potentially resulting in retaliatory actions in the cyber domain or other areas of bilateral cooperation.”

Malik added that the situation “necessitates a robust response not only in terms of securing compromised systems and preventing further breaches but also in reinforcing the international legal and norms-based systems governing state behavior in cyberspace.”

“To mitigate the aftermath and prevent future incidents, it’s crucial for nations to invest in stronger cybersecurity defenses, international collaboration, and developing capabilities to deter adversaries in the cyberspace domain,” he said.

Some hawkish lawmakers have been pressuring the U.K. government to take tougher action on China.

The Inter-Parliamentary Alliance on China, a cross-border group of lawmakers seeking to reform policy on China, said Monday in a post on social media platform X that they, along with other members of Parliament, activists and dissidents, have been “subjected to harassment, impersonation, and attempted hacking from China for some time.”

“We take this opportunity to highlight that, though extremely unwelcome, our discomfort pales in comparison to Chinese dissidents who risk their lives to oppose the Chinese Communist Party. It is high time that they received greater support for their host governments,” the group said.

In 2020, for example, the U.K. government banned telecommunications equipment from Huawei in its 5G mobile network, citing spying concerns. Huawei, for its part, denies the allegations and says it wouldn’t cooperate with China to spy on Western communications.

Relations between the U.S. and China have also been under significant pressure. U.S. lawmakers recently approved a controversial bill that could lead to TikTok being blocked in the U.S. if it doesn’t break with its Chinese parent ByteDance.

If the bill becomes law, TikTok would have a little less than six months to divest from ByteDance, or be banned from apps and webhosting sites in the U.S.

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Uber to acquire Foodpanda’s Taiwan business for $950 million, creating a potential monopoly

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Uber to acquire Foodpanda's Taiwan business for 0 million, creating a potential monopoly

TAIPEI, TAIWAN – 2021/07/19: A foodpanda delivery man wearing a face mask rides past a Taiwanese flag ahead of the COVID-19 alert Level 3 restriction lift in Taipei. (Photo by Walid Berrazeg/SOPA Images/LightRocket via Getty Images)

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Uber Technologies will acquire the Taiwan business of Delivery Hero-owned Foodpanda for $950 million in cash, as Foodpanda focuses on other markets.

The deal, subject to regulatory approval, is expected to close in the first half of 2025, the firms said in a joint statement on Monday.

In a separate agreement, Delivery Hero will sell $300 million in newly issued ordinary shares to Uber.

“We need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders,” said Niklas Östberg, co-founder and CEO of Delivery Hero.

Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber, said the Taiwan market is “fiercely competitive” and the acquisition would help them grow in the market “where online food delivery platforms today still represent just a small part of the food delivery landscape.” 

Foodpanda is one of the largest online food and grocery delivery platforms in Asia with a presence in markets including Singapore, Malaysia, Thailand, The Philippines and Hong Kong. In 2016, Germany’s Delivery Hero acquired the company.

Taiwan’s food delivery market is dominated by Foodpanda and Uber Eats. Data from insights platform Measurable AI up till August revealed that Foodpanda had a 52% market share by order volume in Taiwan, while Uber Eats held the remaining 48% share.

The deal would be one of the largest international acquisitions in Taiwan, not including those in the semiconductor chip industry, according to the joint statement.

Delivery Hero said in February it had ended talks to sell its Foodpanda business in selected Southeast Asian markets. Östberg told CNBC the same month that the firm was “happy” to hold on to its Foodpanda business in Southeast Asia “forever.”

– CNBC’s Ryan Browne and Dylan Butts contributed to this report.

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Tencent posts fastest profit growth in 3 years as online ads, business services offset slower gaming

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Tencent posts fastest profit growth in 3 years as online ads, business services offset slower gaming

Tencent has faced a number of headwinds in 2022 including a Covid-induced slowdown in the Chinese economy and a tougher market for gaming.

Bobby Yip | Reuters

Tencent beat analyst estimates for revenue and profit in the first quarter, thanks to slightly better sales in the Chinese tech giants core gaming business and improved profitability at its advertising and business services division.

Here’s how Tencent did in the March quarter versus LSEG consensus estimates:

  • Revenue: 159.5 billion Chinese yuan ($22 billion) versus 158.4 billion yuan expected.
  • Profit attributable to equity holders of the company: 41.9 billion yuan versus 36.64 billion yuan anticipated.

Tencent’s adjusted net profit was up 62% year-on-year, marking the fastest growth since the March quarter of 2021, according to LSEG data. Revenue jumped 6% year-on-year.

This is a breaking news story. Please check back for more.

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Sony reports 7% drop in annual profit as PlayStation 5 sales miss trimmed target

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Sony reports 7% drop in annual profit as PlayStation 5 sales miss trimmed target

Sony said sales of its flagship PlayStation 5 console totalled 20.8 million in the fiscal year 2023 slightly lower than an already revised-down 21 million unit target.

Nikos Pekiaridis | Nurphoto | Getty Images

Sony on Tuesday reported a 7% drop in annual profits in the fiscal year 2023, dragged down by a decline in its financial services division.

The company also narrowly missed its forecast for unit sales of its flagship PlayStation 5 gaming console for the full year.

Here’s how Sony did in the March quarter versus LSEG consensus estimates:

  • Revenue: 3.5 trillion yen ($22.4 billion) versus 2.89 trillion yen expected. That represents a 14% increase year-over-year — but the first drop since Sony’s 2020 September quarter, according to LSEG data.
  • Operating profit: 229.4 billion yen versus 236.81 billion yen expected. That marks a 57% jump year-over-year.

The Japanese gaming giant reported 2023 revenue of 13 trillion, an increase of 19% year-over-year.

Sony’s operating profit for the full year, though, came in at 1.2 trillion yen, down 7% year-over-year.

Sony narrowly missed its revised down target for PlayStation 5 sales. The firm said that sales of its flagship console totalled 20.8 million in the fiscal year 2023.

That’s slightly lower than the revised 21 million unit target that Sony gave investors in February. Prior to that, the company had forecast that its PS5 console would sell 25 million units for the full year.

Sony expects even weaker sales of 18 million units of its PS5 in the year ending March 2025, a company executive said, according to Reuters.

It comes after Sony on Monday announced a management shakeup in its Sony Interactive Entertainment (SIE) gaming unit, with the division’s interim CEO Hiroki Totoki becoming chairman of the business.

Long-time Sony executives Hideaki Nishino and Hermen Hulst were appointed CEO of the Platform Business Group and Studio Business Group, respectively — two newly created divisions of SIE.

Financial unit weighs on profit

Sony said its financial services business was the primary segment driving down profit.

In 2023, operating income in the financial services unit came in at 173.6 billion yen, marking a 22.5% year-on-year drop after a firm increase in 2022.

The company also suffered from a decline in its imaging and sensing solutions (I&SS) business, which houses its imaging chips.

Sony’s I&SS business recorded operating income of 193.5 billion yen, down 9% from 2022.

Sony said it’s forecasting a drop in overall group revenue for the current fiscal year. The company expects sales will reach 12.3 trillion yen for the year ending March 2025, down 5%.

Fiscal year 2024 operating income is expected to total 1.28 trillion yen, up 5%, Sony said in its consolidated results.

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