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  • OnlyFans: ‘I started selling sexy photos online after losing my job’

    Mark

    Image caption

    Mark has resisted pressure to post explicit content on his OnlyFans page

    “It was through necessity, I needed an income. It wasn’t because I wanted to just get naked or post pictures of myself,” says Mark.

    He lost his job because of coronavirus in March and began posting semi-nude images on a subscriber-based social network.

    The 32-year-old had been working for a five-star resort company, performing in shows. But when lockdown hit, his contract was cancelled.

    “I applied for every single job I could find – all of the supermarkets, anything that was on the JobCentre website – I applied for them all.”

    He later set up an OnlyFans account on his friend’s recommendation.

    On the platform, followers pay a monthly subscription fee to access creators’ photos, videos or live streams, with the firm taking 20% commission. It isn’t just aimed at people who sell nude images, but many users do.

    Despite the “no full-frontal nudity” disclaimer in his bio, it started to pick up. Mark estimates that he’s made about £1,500 over the last four months, posting similar content on his Instagram account.

    “OnlyFans paid my rent. It’s paid for food. It’s paid for my car to keep running. It has literally paid for the necessities of living,” says Mark.

    “On the flip side of that, there is also the negativity,” he adds. He says he received “abusive” messages from friends online when he first set up his page.

    “They told me that I was selling my soul,” he says. “They had assumed that I was going to be having sex with everyone and posting videos of it. My page isn’t that at all.”

    And while Mark refuses requests to post explicit photos or videos of sexual acts, he worries that other new users might feel forced to if they’re short on cash.

    “Younger people these days post everything on social media. It’s just one step further and it means you’re making money,” he says. “I think that’s appealing to a lot of people when it’s so difficult to find a job at the minute.”

    “I’m not the only one among my friends who have lost their jobs and turned to this,” says Rebecca (not her real name). The 22-year-old from Scotland lost her job as a craftworker apprentice and moved back in with her parents in April.

    Having experimented with selling nudes online in the past, “it became apparent that I would need to take it more seriously on losing my job,” she says.

    She set up an OnlyFans account and now schedules photo shoots of “soft-core” nudes for when her mum and dad are out of the house. She’s made hundreds of pounds selling these to her subscribers, who pay £5.55 per month.

    ‘It can be dangerous’

    Rebecca enjoys that she has control over her hours and who she speaks to online. “It is a good source of income,” she says, before adding, “but it does come with risks.”

    “It’s a lot of emotional labour,” she says. “You really have to open yourself up and be vulnerable and it can be dangerous.”

    Lexi (again, not her real name), from Greater Manchester, says that the amount of unpaid labour involved is also underestimated: taking photos, getting ready, social media promotion, responding to client requests.

    The 36-year-old pole dance instructor and stripper set up her OnlyFans page after her places of work were shut during lockdown. She made about £1,000 in the first month, which she used to pay her rent and bills.

    “You’re basically working as a commission-only salesperson. If you don’t do the work, you don’t get paid.”

    She describes the emergence of these platforms into the mainstream as a “double-edged sword”.

    “It’s good that it’s removing the stigma by bringing it more into the public eye,” but customers are looking for cheaper content as more sellers sign up, she says. The market is oversaturated.

    Image copyright
    Megan Barton-Hanson

    Image caption

    Former Love Island contestant Megan Barton-Hanson has previously spoken out about trolling after posting sexual images to OnlyFans

    “If you’re going to set up a subscription site for a bit of fun – please don’t. There are people who are using it to try and survive at the moment,” she says.

    She urges people to think about starting out in the industry carefully: “Set your boundaries before you make your content. Remember that it is out there forever.”

    As well as the possibility of being harassed by customers, privacy is a concern for Mark, Rebecca and Lexi. It can be difficult to hide your identity online and content can be stolen.

    Photos or videos on such platforms may be copied and shared elsewhere, taking away sellers’ incomes, or “outing” them to friends, family or employers.

    Earlier this year, London-based OnlyFans saw a reported “leak” of users’ content from the site. It breached the platform’s policy that creators’ content on the site isn’t allowed to be shared.

    A BBC Three investigation also found evidence of the firm’s age verification process being circumvented, meaning under-18s were able to illegally sell explicit content of themselves on the site.

    At the time, OnlyFans said that if it is alerted to any underage individual who has gained “illegitimate access” to the platform, it always takes immediate steps to investigate and suspend the account.

    Jump in sign-ups

    Yet more and more people are signing up to sites like OnlyFans.

    OnlyFans told the BBC that between March and July, the number of UK creators increased by 42% to about 95,000.

    Another UK platform, AdmireMe, saw an increase of about one-third on its usual number of sign-ups after lockdown started.

    Teela Sanders, a criminology professor at the University of Leicester, says that platforms need to go further in signposting risks to new users and helping them if they receive unwanted messages or want to delete their profile entirely.

    “There certainly is a lot more that needs to be done, especially as we see new platforms popping up all of the time, which don’t necessarily have the awareness that they need to be responsible platforms,” she says.

    She expects the industry will only continue to grow as the UK heads into the worst recession seen in decades. “Online sex work was already becoming much more visible, more socially acceptable.”

    Image copyright
    Getty Images

    Image caption

    Global superstar Beyoncé has rapped about the rise of subscription-based platform OnlyFans

    An OnlyFans spokesperson said: “With a duty to help battle against illegal piracy, OnlyFans is firmly in the fight to protect user content.”

    The firm said it has a dedicated team that issues formal “takedown” notices against reported leaks and copyright violations. More than 75% of content reported as stolen has been taken down from offending websites successfully this year, the spokesperson added.

    “The safety of our content creators is a top priority,” they said.

    OnlyFans said it also had a strict “on-boarding” process and offered guidance to new users on how best to use the 18+ platform on its blog. But it said ultimately, “every creator needs to consider the pros and cons”.

    A Home Office spokesperson said that there were plans to “put a legal duty of care on online platforms, backed up by an independent regulator, to hold them to account”, as outlined in the Online Harms White paper.

    “This world-leading legislation will help us tackle harmful content online and make the UK the safest place in the world to be online.”

    The chair of the Lords Democracy and Digital Committee recently warned, however, that the government’s online protection bill might not come into effect until 2023 or 2024.

  • Apple has €13bn Irish tax bill overturned

    Sign in Apple store

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    Getty Images

    Apple has been told it will not have to pay Ireland €13bn (£11.6bn) in back taxes after winning an appeal at the European Union’s second highest court.

    It follows a record ruling by the European Commission against the US tech giant in 2016.

    The EU’s General Court said it had annulled that decision because the Commission had not proven Apple had broken competition rules.

    It is a blow for the EU which wants to crack down on alleged tax avoidance.

    However, it has the right to appeal the decision to Europe’s highest court, the European Court of Justice.

    “This case was not about how much tax we pay, but where we are required to pay it,” Apple said in a statement. “We’re proud to be the largest taxpayer in the world as we know the important role tax payments play in society.”

    • Irish EU court appeal on Apple tax ruling

    The Irish government – which had also appealed against the ruling – said it had “always been clear” Apple received no special treatment.

    “The correct amount of Irish tax was charged… in line with normal Irish taxation rules.”

    EU Competition Commissioner Margrethe Vestager, who brought the case, said she would “study the judgment and reflect on possible next steps”.

    The European Commission brought the action after claiming Ireland had allowed Apple to attribute nearly all its EU earnings to an Irish head office that existed only on paper, thereby avoiding paying tax on EU revenues,

    Image copyright
    Getty Images

    Image caption

    Margrethe Vestager has been trying to crack down on tax avoidance

    The commission said this constituted illegal aid given to Apple by the Irish state.

    However, the Irish government argued that Apple should not have to repay the taxes, deeming that its loss was worth it to make the country an attractive home for large companies.

    Ireland – which has one of the lowest corporate tax rates in the EU – is Apple’s base for Europe, the Middle East and Africa.

    In Wednesday’s ruling, the Luxembourg-based General Court sided with that position, saying there was not enough evidence to show Apple was given preferential treatment.

    Pressure to continue

    The ruling could spell bad news for EU efforts to crack down on other cases of alleged corporate tax avoidance.

    Ms Vestager has spent much of her time in office campaigning against tax schemes she argued were anti-competitive. However, last year she lost a case against Starbucks which was accused of owing €30m in back taxes to the Netherlands.

    Rulings over Ikea and Nike’s tax arrangements in that country are also due soon.

    Jason Collins, partner and head of tax at law firm Pinsent Masons, said: “Apple’s victory shows that European courts are unwilling to call beneficial tax regimes state aid, even when designed to attract foreign investment – provided they apply the rules consistently.

    “This will be a very welcome outcome for other multi-nationals who have been watching this case closely.”

    However, he said Brussels was likely to appeal and EU efforts to tackle tax avoidance would continue.

    “We expect the EU to continue applying pressure in this area,” he said.

  • Social media firms 'must do more' to tackle racism

    Match of the Day 2 pundit Jermaine Jenas says social media companies must do more following the news that Wilfried Zaha received racist abuse online.

  • Clothing and games push up UK shop prices

    Woman in mask

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    Dan Mullan

    The UK’s inflation rate rose to 0.6% in June as the coronavirus lockdown began to ease.

    The Consumer Prices Index (CPI) picked up slightly from May’s four-year low of 0.5%, the Office for National Statistics (ONS) said.

    Food and alcohol prices fell, but prices for clothing and games rose, the ONS said.

    Despite the slight increase in the rate, inflation remains below the Bank of England’s 2% target.

    Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: “The inflation rate has increased for the first time this year, but remains low by historical standards.

    “Due to the impact of the coronavirus, clothing prices have not followed the usual seasonal pattern this year, with the normal falls due to the start of the summer sales failing to materialise.

    “Prices for computer games and consoles have risen, but food prices, particularly vegetables, have fallen.”

    Inflation has fallen sharply during the coronavirus crisis as consumer demand has slumped.

    In June, men’s clothing in particular rose in price, with increases coming “across almost the full range”, the ONS said.

    Women’s clothing showed “a more mixed picture across the different products”, but with the overall effect still upward.

    Games, toys and hobbies, particularly computer games and computer games consoles, made the biggest contribution to the inflation rise, the ONS said.

    “It is possible that prices have been influenced by the coronavirus (Covid-19) lockdown changing the timing of demand and the availability of some items, particularly consoles,” the ONS added.

    What is inflation?

    Inflation is the rate at which the prices for goods and services increase.

    It’s one of the key measures of financial wellbeing because it affects what consumers can buy for their money. If there is inflation, money doesn’t go as far.

    It’s expressed as a percentage increase or decrease in prices over time. For example, if the inflation rate for the cost of a litre of petrol is 2% a year, motorists need to spend 2% more at the pump than 12 months earlier.

    And if wages don’t keep up with inflation, purchasing power and the standard of living falls.

    • What is the inflation rate?

    Since many areas of the economy were completely shut down in June, the ONS said it had to estimate or “impute” some of the data.

    Jeremy Thomson-Cook, chief economist at financial services firm Equals, said the slight increase in the inflation rate was “a positive sign”, but added that the outlook remained “messy”.

    “Food prices are falling from lockdown levels, clothing demand is out of kilter with typical seasonal patterns, demand for entertainment during lockdown provided a pronounced bump in prices, and the ONS has only been able to log 84% of the normal price quotes due to unavailability,” he said.

    “For now, however, inflation remains low, and both consumers and the Bank of England will be happy with that.”

    Paul Dales, chief UK economist at Capital Economics, said the small rise in inflation was unlikely to be sustained and that deflation was “around the corner”.

    “In fact, by July or August, CPI inflation may have fallen below zero,” he said.

    Discounting from retailers and the impact of Chancellor Rishi Sunak’s “eat out to help out” scheme would push inflation down, he said.

    Mr Dales said any bout of deflation would last just a few months, but added: “It will be a few years before the economy is strong enough to raise inflation to the 2% target.”

  • Ocado says switch to online shopping is permanent

    Ocado delivery driver

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    PAUL ELLIS/AFP VIA GETTY IMAGES

    Online grocer Ocado says the switch to internet shopping amid the coronavirus lockdown has led to a “permanent redrawing” of the retail landscape.

    Its comments came as it said sales during the first half of 2020 jumped 27% to more than £1bn.

    “The world as we know it has changed,” said chief executive Tim Steiner.

    “As a result of Covid-19, we have seen years of growth in the online grocery market condensed into a matter of months; and we won’t be going back.”

    “We are confident that accelerated growth in the online channel will continue, leading to a permanent redrawing of the landscape of the grocery industry worldwide.”

    He said Ocado was now the fastest growing grocer in the UK, thanks to a 50/50 partnership with Marks and Spencer announced last year.

    As part of the deal, which saw M&S take a half-share in Ocado’s retail business, Ocado will start delivering M&S grocery products from September, when its current deal with Waitrose expires.

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    Ocado

    The group reported a loss before tax of £40.6m in the six months to the end of May, blaming an increase in investment to handle the higher demand generated as a result of the coronavirus pandemic.

    During the period the company opened its first two customer fulfilment centres abroad, for Casino in France and Sobeys in Canada, while increasing capacity in the UK.

    • Retailers report sales jump in June

    The loss was smaller than the £147.4m posted in the same period last year, although that figure included £99m of costs incurred as a result of a major fire at its warehouse in Andover.

    But after raising £1bn through an equity and bond issue last month, Ocado said it had £2.3bn in cash on its balance sheet.

    “There is evidence to suggest many shoppers will likely continue buying their groceries online once lockdown measures have been lifted completely, but it will be difficult for Ocado to maintain the sales registered at the peak of the crisis,” said John Moore, senior investment manager at Brewin Dolphin.

    “Nevertheless, Ocado has a strong balance sheet and the Covid-19 pandemic has super-accelerated many of the trends that have led to its exceptional share price growth over the last few years, placing the company in a good position for the future.”

    A new Lidl a week

    Separately, discount grocer Lidl has revealed plans to open a shop a week until Christmas, creating 1,000 jobs.

    The 25 new stores will be opened across England, Scotland and Wales with sites in Selhurst, Harrow Weald, Coleford and Llandudno Junction opening in the coming weeks.

    By the end of 2023 it plans another 100 stores across Britain, creating 4,000 more jobs, and bringing its total number of shops to 1,000.

    “It is testament to the continued hard work of our colleagues that we are able to continue forging ahead with our expansion plans, despite the challenging circumstances that have been faced over the past months,” said Lidl GB boss Christian Härtnagel.

    Lidl – which opened its first shops in the UK in 1994 – has opened new stores throughout the pandemic in locations such as Birmingham, Torquay and across London.

  • UK’s Huawei 5G network ban ‘disappointing and wrong’

    Man walks in front of a Huawei sign

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    Getty Images

    China’s ambassador to the UK has called Britain’s decision to ban telecoms giant Huawei from its 5G network “disappointing and wrong”.

    The UK government has ordered companies to strip equipment from Huawei out of the system by 2027.

    It follows sanctions imposed by the US, which claims the Chinese firm poses a national security threat – something Huawei denies.

    US President Trump welcomed the UK decision, calling Huawei “unsafe”.

    “We convinced many countries, many countries – and I did this myself for the most part – not to use Huawei because we think it’s an unsafe security risk, it’s a big security risk,” he said.

    Mr Trump made the comments as he attempted to increase pressure on Beijing by announcing an executive order ending preferential treatment for Hong Kong in response to a new security law brought in by China.

    In response to the 5G network ban, Chinese ambassador Liu Xiaoming questioned whether the UK can provide a “fair” business environment for foreign firms.

    “Disappointing and wrong decision by the UK on Huawei,” he tweeted.

    “It has become questionable whether the UK can provide an open, fair and non-discriminatory business environment for companies from other countries.”

    Huawei’s UK communications director Ed Brewster told BBC’s Newsnight the ban had been announced “because of the pressure from the US”.

    “I think this is clear this is not about security this is about trade. This is a US campaign focused on attacking our business and attacking the technology and that is because the US is behind on the technology,” he said.

    “Today’s decision is as much driven by trade and US trade policy, US concerns around falling behind in technology. We are in a long-term … trade dispute escalation from the US around how it wants to retain technology leadership.”

    Mr Brewster also moved to distance the company from the perception that it is an arm of the Chinese state, adding: “That’s the perception but it’s incorrect. We’re a private technology company. The trust we’ve built up around the world is with our customers (and) the telecoms networks.

    “We don’t work for governments, we work for the telecoms networks.”

    Huawei has repeatedly said it would not cause harm to any country.

    Image copyright
    Reuters

    Image caption

    Donald Trump labelled Huawei a “big security risk”

    What does the ban involve?

    The UK’s mobile providers are being banned from buying new Huawei 5G equipment after 31 December, and they must also remove all the Chinese firm’s 5G kit from their networks by 2027.

    The decision came after the UK’s National Cyber Security Centre (NCSC) warned that highly restrictive US sanctions meant the security of Huawei’s equipment could not be guaranteed.

    • Why is Huawei being banned from the UK’s 5G network?
    • Trudeau rejects calls to release Huawei executive

    Announcing the ban to the House of Commons on Tuesday, Digital Secretary Oliver Dowden said it had not been an easy decision but was the right one for UK telecoms networks, national security and the UK economy.

    He said the move would delay the country’s 5G rollout by a year and the cumulative cost, when coupled with earlier restrictions announced against Huawei, would be up to £2bn.

    Media playback is unsupported on your device

    Media captionWatch: The digital secretary says providers must remove Huawei’s 5G kit by 2027

    5G technology promises faster internet speeds and the capacity to support more wireless devices, which should be a boon to everything from mobile gaming to higher-quality video streams. 5G connections are already available in dozens of UK cities and towns, but coverage can be sparse.

    The UK last reviewed Huawei’s role in its telecoms infrastructure in January, when it was decided to let the company remain a supplier but introduced a cap on its market share.

    But in May the US introduced new sanctions designed to disrupt Huawei’s ability to get its own chips manufactured.

    The Trump administration claims that Huawei provides a gateway for China to spy on and potentially attack countries that use its equipment, suggestions the company strongly rejects.

    The US has called for members of the Five Eyes alliance – which also includes the UK, Canada, Australia and New Zealand – to avoid Huawei kit.

  • Huawei: What does the ban mean for you?

    Huawei logo

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    Reuters

    The UK’s decision to ban Huawei’s 5G kits from use in mobile networks and to also stop using its equipment in full-fibre broadband networks is not without consequence for the country’s internet users.

    As the Digital Minister Oliver Dowden acknowledged, the decisions will have “consequences for every constituency in the country”.

    The Chinese firm itself has claimed customers will face bigger bills as a consequence of the billions of pounds that will be spent ripping out its kit and moving to other suppliers.

    And there could be further consequences for the wider economy if Huawei diverts its research and recruitment funds elsewhere, not to mention other Chinese companies that might now see the UK as a less friendly market.

    Will this mean my Huawei phone stops working?

    No.

    The move affects the equipment at radio masts and inside telephone exchanges that operators use rather than individual consumer devices sold by the firm.

    “It doesn’t directly affect the Huawei technology you use at home, such as smartphones, laptops and tablets,” explains the National Cyber Security Centre (NCSC).

    “All your apps should continue to work, and your phone/laptop/tablet should keep getting security updates for its normal lifetime.”

    But the new US sanctions do restrict Huawei’s ability to get its own chip designs manufactured, which in turn may slow the pace it can make improvements to its hardware. In addition, other restrictions mean new Huawei devices cannot offer Google’s services, including its Play Store and smart assistant.

    Will it affect my 5G service?

    Possibly.

    Vodafone, Three and EE had all begun rolling out 5G services reliant on Huawei’s kit nationwide, and they now face having to replace it with equipment from another vendor.

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    Getty Images

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    Mobile operators are likely to take longer to rollout 5G across the UK as a consequence of the new measures

    Vodafone and EE had previously indicated that if given less than five years to do so, their customers might face mobile coverage blackouts. But the 2027 deadline gives them more time.

    However, Mr Dowden acknowledged that a requirement to stop buying new Huawei kit by the end of this year would slow down the wider rollout of 5G by a year. And he added that when one takes into account the 2027 ban and earlier restrictions imposed on the use of the firm’s technology, the cumulative delay would be “two to three years”.

    That means 5G will remain patchy for longer than it would have done and some parts of the country will have to wait longer to get any access to the next-generation service.

    Does it mean my broadband is going to suffer too?

    Perhaps.

    In the last election, one of the government’s flagship pledges was gigabit connectivity for all by 2025.

    That involves connecting properties directly to local phone exchanges with fibre – which was already a hugely challenging task to carry out nationwide.

    As part of its recommendations, NCSC has said that Openreach and other broadband infrastructure providers should stop deploying Huawei’s “fibre access equipment” – meaning the kit in local exchanges that handles and routes data as it arrives and departs, rather than the internet routers in people’s homes.

    But there is a problem: a present Nokia is the only other supplier of some of the kit involved.

    And NCSC has warned that the risks involved in a shift to a single vendor outweigh those of continuing to use Huawei for the time being.

    The government intends to discuss the matter further with operators and hopes at least one other kit provider can be fully substituted for Huawei within two years.

    But if they struggle to identify one, then security chiefs have explicitly said that once the US sanctions fully kick in, they might be “unable to gain sufficient assurance in these products to mitigate the risks”.

    In other words, the UK might have to slow down the rollout of gigabit broadband and miss the government’s target.

    Are my bills going to go up?

    It’s too soon to say, although talk of £2bn in added costs do not bode well.

    In terms of mobile, the Telegraph has reported that the networks are hoping to offset added costs by convincing the government to make it cheaper for them to buy the airwaves necessary to provide 5G services.

    But if less money flows to the Treasury as a consequence, taxes might have to go up to compensate.

    In terms of broadband, it depends whether Openreach experiences higher costs of its own in sourcing products from new suppliers, and then feels the needs to pass those onto individual internet service providers (ISPs).

    Huawei’s UK research bases

    One consequence of shunning Huawei is that it might lead the company to rethink its research and development investments in the country.

    The firm has sponsored work at several universities including Imperial College, London, Southampton and Surrey.

    In addition, it operates research centres of its own employing a total of 400 people in:

    • Edinburgh
    • Bristol
    • Cambridge
    • Ipswich

    The company also recently gained planning permission to build a new £1bn research centre at Sawston – a large village to the south of Cambridge. It has said the development would create hundreds of further jobs.

    But one expert said the new restrictions might not mean the project will be abandoned.

    “The research centre in Cambridge has been many years in the planning, and may well be its future sourcing of important technologies within the global supply chain, so Huawei might want to keep it if it is allowed,” said Emily Taylor from the Chatham House think tank.

    Where is Huawei’s kit used in UK?

    Mobile networks can be divided into two parts: the core and the radio access network (Ran).

    The core is likened to the brain and carries out the most sensitive operations, including authenticating users’ identities and making sure calls get sent to the right radio tower to connect to another person’s phone.

    The Ran includes the base stations and antennas used to provide a link between individual mobile devices and the core. Insiders sometimes describe this as the “innovative but dumb” part of the network.

    BT’s EE mobile network features Huawei in the core of its 4G and 5G networks, but the firm is in the process of replacing it with Ericsson’s products, and has promised to do so by the end of 2023.

    Otherwise, the UK’s main mobile providers only use Huawei in the Ran, and then always as part of a mix with at least one other vendor:

    • EE to provide 2G, 4G and 5G
    • Vodafone to provide 2G, 3G, 4G and 5G
    • Three to provide 4G and 5G
    • O2 to provide 5G at a relatively small number of sites in London, where it tested the equipment before opting to go with other suppliers elsewhere

    Huawei also provides broadband equipment to BT’s Openreach division, which owns the infrastructure used by other ISPs, including Plusnet, Sky and TalkTalk.

    These days, the focus is on rolling out fibre-to-the-premises (FTTP) connections, which offer the fastest speeds and are key to delivering the government’s “gigabit for all” 2025 pledge.

    In this case, Openreach uses Huawei’s kit at what it calls the “headend” – a gateway at local telephone exchanges that converts electrical signals to and from light-based ones, and makes sure each customer’s data is sent to the appropriate ISP.

    Many people still get their internet via slower connections, which are routed via intermediary street cabinets.

    About 70,000 of these cabinets contain Huawei’s kit, and the data also passes through more of the Chinese firm’s products at local exchanges.

    Openreach does not, however, use Huawei’s equipment in its core.

    Elsewhere, CityFibre – which runs its own smaller full-fibre networks – uses some Huawei gear as a legacy of an acquisition, but intends to strip it out by mid-2021.

    Virgin Media does not use Huawei’s equipment within its broadband network.

    But it does use it to provide telephone services, both for internet-based landline calls as well as to provide mobile phone subscriptions.

    Other mobile virtual network operators (MVNOs) – including Sky Mobile and GiffGaff – also use Huawei’s gear.

    It effectively sits between each MVNO and the mobile network whose infrastructure is used, and helps calculate customer bills, among other IT services.

  • Trump says he has ended preferential treatment for Hong Kong

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    Media caption‘Their freedom has been taken away’

    US President Donald Trump has signed an order to end preferential treatment for Hong Kong, as his administration adopts an increasingly tough stance on China.

    “Hong Kong will now be treated the same as mainland China,” the president told reporters at the White House.

    Mr Trump said he had also signed bipartisan legislation to impose sanctions on Chinese officials who crack down on rights in Hong Kong.

    The ex-British colony enjoys unique freedoms not seen in mainland China.

    But many people in the territory fear a new security law imposed by Beijing will bring an end to Hong Kong’s special status, agreed under a 1984 pact between China and the UK.

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    Media captionTea, drugs and war: Hong Kong’s British history explained

    The legislation – which outlaws criticism of China’s government – is the most sweeping change to the political landscape of Hong Kong since it was handed back to China by the UK in 1997.

    What did President Trump say?

    Speaking in the Rose Garden, Mr Trump said his executive order would end preferential treatment for Hong Kong.

    “No special privileges, no special economic treatment and no export of sensitive technologies,” said the president, who first announced in May that his administration would begin paring back the territory’s special status.

    He also told reporters he had signed the Hong Kong Autonomy Act, which passed unanimously in Congress earlier this month.

    “This law gives my administration powerful new tools to hold responsible the individuals and the entities involved in extinguishing Hong Kong’s freedom,” Mr Trump told the news conference.

    The president said when asked by a journalist that he had no plans to speak to Chinese President Xi Jinping.

    He told reporters that “we hold China fully responsible for concealing the virus and unleashing it upon the world”.

    Mr Trump’s own administration is under scrutiny for its response to the coronavirus pandemic – the US has 3.4 million recorded cases, the highest in the world.

    The president’s policy address digressed into a lengthy political attack on his Democratic presidential challenger, Joe Biden, ranging from trade and immigration to policing and climate change.

    “So Joe Biden and President Obama freely allowed China to pillage our factories, plunder our communities and steal our most precious secrets,” the president said.

    Media playback is unsupported on your device

    Media captionMany Hong Kong residents are worried the new security law means the ‘one country, two systems’ principle no longer exists

    Perception is reality

    It wasn’t a matter of if, but when.

    Scrapping Hong Kong’s special status will mean companies based there now will have to evaluate what this means for them.

    Hong Kong is a re-exporting hub, which means that goods that go through Hong Kong to the US but have come from somewhere else – like China for instance – have avoided the tariffs the US has slapped on China.

    Now that Hong Kong’s special status is gone – mainland Chinese companies may look for another place to send their goods – which would see Hong Kong’s port and logistics businesses suffer.

    And how much of an impact will this have on American and multinational companies using Hong Kong as a regional hub?

    Well, as one business consultant told me – the structural reasons for why a company would use Hong Kong as a hub are still there – low tax rates, good geographic location, convertibility of currency.

    But perception is reality – and if the perception is that doing business in Hong Kong has become so much more onerous – why not decamp to China or Singapore instead.

    Hong Kong’s new security law

    What is going on with US-China relations?

    Washington-Beijing ties have become increasingly frayed in recent months.

    With Mr Trump facing an uphill battle for re-election this November, he and his Democratic challenger, Joe Biden, have accused each other of being weak on China.

    On Monday, the administration rejected China’s military build-up in the South China Sea, accusing it of bullying neighbours.

    Last Friday, Mr Trump told reporters on Air Force One that a “phase two” trade deal with China was in doubt because of its handling of coronavirus.

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    Media captionJimmy Lai: China’s security law ‘spells the death knell for Hong Kong’

    “The relationship with China has been severely damaged,” he said. “They could have stopped the plague, they could have stopped it, they didn’t stop it.”

    The US also officially withdrew last week from the World Health Organization, which Mr Trump had accused of being beholden to China.

    Last week, too, the Trump administration announced sanctions against Chinese politicians who it says are responsible for human rights violations against Muslim minorities in Xinjiang.

  • Could the US or UK be the next countries to ban TikTok?

    More than 800 million people around the world use the social media, short-video app TikTok.

    But plenty of governments across the world are concerned that the Chinese-owned app allows the Chinese government to access your data.

    For this reason, India, has already banned the use of the app in their country.

    The BBC’s Sophia Smith Galer explains why other countries might follow and how we got to the point where TikTok could soon be banned in your country.

    Video by Ameer Ahmed and Parveen Virdi

  • Oatly raises $200m from celebrity backers including Oprah and Jay-Z

    A grocery shelf of milks and milk alternatives

    Image copyright
    Getty Images

    Image caption

    Competition among milk and milk alternative brands

    Oatly, the Swedish company credited with convincing the masses of oat milk’s merit, has proven its value to the investment world as well.

    The firm on Tuesday said a group including investment giant Blackstone Group and celebrities Oprah Winfrey, Jay-Z and Natalie Portman bought a stake in the company for $200m (£160m).

    The move is a sign of growing interest in milk made with plant alternatives.

    Oatly said the money would be used to expand and build new production plants.

    Founded in the 1990s, Oatly entered the US market four years ago and the product proved so popular it created shortages.

    Oatly announced its first factory in the US in 2018 and plans to open a second this year, part of a wider effort to add plants close to its customers. The firm’s products are available at 50,000 locations across 20 countries.

    “We chose to partner with Blackstone Group because of their tremendous resources and unique reach,” said chief executive Toni Petersson. “Our new partners’ commitment to supporting us and furthering our mission is a clear indication of where the world is heading, which is in a new, more sustainable direction.”

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    Media caption“If you’re going to be ethical, you need to back it up”

    Sales of oat milk are expected to increase rapidly in coming years, as increased dairy allergies and concerns about dairy’s environmental impact push shoppers to look for alternatives.

    About 41% of US households purchased vegan milk last year, according to a report by the Good Food Institute and Plant Based Food Association.

    The $200m investment announced on Tuesday represents about a 10% stake Oatly, putting the firm’s value at about $2bn, the Wall Street Journal reported. Other investors in the group include former Starbucks chief Howard Schultz.

    Prior Oatly investors include Belgium-based Verlinvest and China Resources, a state-owned company.

    In the announcement, Jon Korngold, global head of Blackstone Growth, called Oatly “a premier global brand… with significant runway for continued growth to meet consumer demand”. Blackstone has also emphasised its interest in sustainable investments.

    • ‘Quarter of Britons’ drinking plant-based milks
    • Which vegan milks are best for the planet?

    Oatly reportedly had about $200m in sales last year and hopes to double that by 2021. It has expanded its products from milk, to ice cream and yogurt and is eyeing growth in China.

    But the company faces increased competition, as firms such as PepsiCo’s Quaker Oats and dairy giant HP Hood launch their own brands. New milk alternatives, made from products like peas, have also gained in popularity among consumers.

    In the US, dairy companies, which have lost ground to the alternatives, have also attacked plant-based rivals over the sector’s nutritional claims.