Quantum Communications Breakthrough Could Improve Online Security

Summary

WSJ Tech News Briefing: Quantum Communications Breakthrough Could Improve Online Security

Episode Release Date: April 24, 2025
Host: Katie Dayton
Publisher: The Wall Street Journal

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1. European Union Imposes Massive Fines on Apple and Meta

In this episode, host Katie Dayton delves into the European Union's recent decision to levy hundreds of millions of dollars in fines against tech giants Apple and Meta. These penalties are rooted in the EU's stringent Digital Markets Act (DMA), a regulation aimed at fostering competition and preventing monopolistic practices within the digital marketplace.

Understanding the Digital Markets Act

Kim McCrail, a WSJ reporter based in Brussels, provides an in-depth analysis of the DMA's objectives. She explains, “The EU saw a situation where there are a very small number of very large tech companies... The idea, broadly speaking, is to try to level the playing field and make it easier for smaller companies, up and coming companies to get into that market” (03:09).

Apple and Meta's Violations

The episode outlines the specific infractions committed by both companies under the DMA:

• Meta: Accused of combining user data across its platforms to deliver personalized advertising without offering users the option to opt out. McCrail states, “In Meta's case, the focus is on whether users have the ability to... opt out of that level of personalized advertising” (03:14).

• Apple: Criticized for restricting app developers from directing users to alternative purchase methods outside of the App Store, effectively limiting competition and potentially leading to higher prices. McCrail elaborates, “The argument against Apple in this case was that they restrict the way developers can communicate with users” (04:16).

Company Responses and Implications for US-EU Trade Relations

Both companies have announced their intent to appeal the fines. Apple contends that the EU's decision “unfairly targets the company” and compromises user privacy and security (04:18). Meta equates the fines to “a multi-billion dollar tariff,” highlighting the broader tensions in ongoing US-EU trade negotiations (04:18).

McCrail further discusses the potential ripple effects of these fines on international trade relations: “President Trump has spoken in the past about viewing EU antitrust fines regulations as the equivalent to non-tariff barriers and things that the US could consider targeting with tariffs of its own” (05:49). This scenario underscores the delicate balance between regulatory enforcement and maintaining healthy trade dialogues.

Impact on Other Tech Companies

The enforcement of the DMA against Apple and Meta serves as a precedent for other large tech firms operating within Europe. McCrail notes, “There is the possibility beyond that if they don't comply within about two months, the commission has the power to follow up with further fines” (05:54). This ongoing scrutiny is likely to prompt other companies to reevaluate their compliance strategies to avoid similar repercussions.

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2. Quantum Communications Breakthrough Enhances Online Security

Shifting focus from regulatory challenges, the podcast highlights a significant advancement in quantum communications, which promises to revolutionize data security.

What is Quantum Communication?

Aylin Woodward, a WSJ reporter specializing in quantum technologies, breaks down the fundamentals of quantum messaging. She contrasts classical information, which uses fixed bits (0s and 1s), with quantum information that utilizes qubits capable of representing multiple states simultaneously. “Quantum communications as opposed to the more traditional ones, you can make them much more secure” (08:36).

Enhanced Security Through Quantum Cryptography

Woodward explains the superiority of quantum encryption over traditional methods: “Quantum cryptography... generates a key that isn't based on any math and therefore is virtually uncrackable” (08:36). This method safeguards data against the formidable computational power of advancing quantum computers, which threaten to break current encryption algorithms.

Experimental Breakthrough

The podcast details a groundbreaking experiment conducted by researchers at Toshiba Europe Limited. By leveraging standard computers and existing fiber optic infrastructure, they successfully transmitted quantum information over 158 miles—a record distance for coherent quantum communication outside laboratory settings. Notably, this achievement was accomplished without relying on the costly superconducting detectors typically required for such transmissions.

Woodward elaborates, “They could use it at room temperature or slightly below room temperature. And that’s a big step towards making it a little bit more widespread because it's cheaper” (09:29). This innovation significantly reduces the barriers to implementing quantum communication technology on a national scale.

Real-World Implications

The potential applications of this breakthrough are vast, particularly in enhancing the security of sensitive information. Woodward envisions a future where a quantum Internet ensures that critical data—such as health records and financial information—are transmitted with unparalleled security. “It ultimately means that your information could be more secure and that type of security can be bought for far less money” (11:43).

This advancement not only promises to protect against cyber eavesdropping but also paves the way for more affordable and widespread adoption of secure communication technologies, thereby fostering greater trust and reliability in digital interactions.

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Conclusion

The episode of WSJ Tech News Briefing offers a comprehensive exploration of two pivotal developments in the tech landscape: the EU's regulatory clampdown on major American tech firms and a promising leap forward in quantum communications. These discussions provide listeners with a nuanced understanding of the complexities shaping the future of technology and international trade.

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Notable Quotes:

• Kim McCrail on DMA: “The idea, broadly speaking, is to try to level the playing field and make it easier for smaller companies, up and coming companies to get into that market.” (03:09)

• Aylin Woodward on Quantum Security: “Quantum cryptography... generates a key that isn't based on any math and therefore is virtually uncrackable.” (08:36)

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Produced by: Julie Chang
Deputy Editor: Chris Sinsley
Host: Katie Dayton

Transcript

[Elastic Representative]

Why do over 50% of the Fortune 500 use elastic? Because Elastic has done the hard work of making it easier for companies to do generative AI. Right. Elastic's search AI helps them make insightful and impactful decisions at speed across search, observability and security. Elastic has the power to take your data into the future. Explore the possibilities of AI with your data at Explore Elastic Code Elastic, the.

[Katie Dayton]

Search AI company Hey TMB listeners. Our recent series Chatbot Confidential dug into some of the privacy risks that come with using chatbots powered by generative AI. What questions do you have about bots like ChatGPT or Claude and your privacy, like what kind of data they collect or how long companies hold onto it? Record a voice memo and send it to tmbsj.com or leave us a voicemail at 2124. That's 212-416-2236. We might answer your question in an upcoming episode. Now onto the show. Welcome to Tech News briefing. It's Thursday, April 24th. I'm Katie Dayton for the Wall Street Journal. The European Union slapped fines on Apple and Meta worth hundreds of millions of dollars yesterday. The move comes in the middle of an already frosty trading climate between the eu. You might have heard something about tariffs. We dig into what the orders mean for international trade, the two companies at the heart of the matter, and other tech giants looking on. Then we're going Quantum. Scientists say they use ordinary computers and fiber optic cables to send quantum information across a record breaking 158 miles. What does that even mean? Stay with us to find out. But first, like we told you last night, Apple and Meta say they'll appeal the European Union's decision to slap them with multi million dollar fines and force them to change their business operations there. The companies are by now used to dealing with slaps on the wrist from regulators, but as trade negotiations heat up, the cases have ended up in the political spotlight. Kim McRail, a WSJ reporter based in Brussels, has been following the story. So Kim, these fines are tied to the EU's Digital Markets Act. What is that regulation designed to do?

[Kim McCrail]

The broadest way of speaking about that regulation, the broadest way to think about it, is that the EU saw a situation where there are a very small number of very large tech companies. Many of them happen to be American, but the view is when you have a small number of tech companies that have a lot of access to data, a lot of access to users and a lot of power in the digital market that that sit might not be Such a great situation for having smaller rivals be able to compete. So the idea, broadly speaking, is to try to level the playing field and make it easier for smaller companies, up and coming companies to get into that market.

[Katie Dayton]

And how does the EU say Apple and Meta fell foul of these laws?

[Kim McCrail]

These two cases deal with very different aspects of the Digital Markets Act. So the Digital Markets act covers quite a lot. And in Meta's case, the focus is on whether or not users have the ability to be able to say, I don't want you to take my data and combine it with other products that you might offer. So in Meta's case, there is data combination that goes on to provide personalized advertising. And the Commission said that they had to offer basically an equivalent product that's also allowed users to opt out of that level of personalized advertising. For the Apple case, the question is whether Apple is allowing app developers to freely direct users to other ways to make purchases. If you want to you, let's say, purchase a subscription to an app or purchase a digital product of some other kind, the question is whether you're able to see an advertisement about that opportunity to buy something else and take advantage of what might be a lower price or just an alternative way of getting it. And so the argument against Apple in this case was that they restrict the way developers can communicate with users.

[Katie Dayton]

And how have they responded?

[Kim McCrail]

They both said they would appeal. In Apple's case, they said the Commission, in their view the decision unfairly targets the company. And they said it's one of a number of decisions that they say are bad for the privacy and security of users, bad for products, and force the company to give away their technology for free. Meta again also said it would appeal and it said it was being forced by the EU to change its business model in a way that's actually the equivalent of a multi billion dollar tariff. And you can see them actually using the language of tariffs, which is interesting in the context of global trade talks right now.

[Katie Dayton]

Right, we've got the EU going after two of America's biggest companies right in the middle of what is already an incredibly tense time for trade. What kind of impact do you think this will have on those negotiations between the US and the eu?

[Kim McCrail]

It's a really interesting thing to be watching right now. We've reported last week that the EU actually delayed its plans to make this announcement, had previously planned to announce it roughly a week ago. And that happened during a time of the EU really just starting to try to get going on trade talks. The European Commission has said that they do the decisions when they're ready and that this was the time it took for them to be ready. But at the same time, you know, we know there's a lot of political sensitivity around these issues. We know that President Trump has spoken in the past about viewing EU antitrust fines regulations as the equivalent to non tariff barriers and things that the US could consider targeting with tariffs of its own.

[Katie Dayton]

Are other tech companies that operate in Europe paying attention to these cases?

[Kim McCrail]

Although the fines are a small portion of these companies overall revenue, they do come with substantial orders to change how they do their business. There is also the possibility beyond that if they don't comply within about two months, the commission has the power to follow up with further fines. So it's not just a one time thing. I would think that seeing that there was follow through and that cases were actually completed and fines issued would be something that other companies regulated by this law would be paying attention to and thinking about.

[Katie Dayton]

That was WSJ reporter Kim McCrail. Coming up, why a new breakthrough in quantum communication may help you sleep easier at night. That's after the break.

[Elastic Representative]

Why do over 50% of the Fortune 500 use elastic? Because Elastic has done the hard work of making it easier for companies to do generative AI. Right. Elastic Search AI helps them make insightful and impactful decisions at speed across search, observability and security. Elastic has the power to take your data into the future. Explore the possibilities of AI with your data. At Explore Elastic Co Elastic, the Search AI company.

[Katie Dayton]

Scientists working in the field of quantum communication announced a breakthrough yesterday. They say they validated a new method of sending quantum information down miles of fiber optic cables, avoiding the need for expensive cooling technology. WSJ reporter Ilan Woodward has been deep in the quantum world this week and is here to explain what all that means to us non science scientists. So Aylin, let's start with the big question. What is a quantum message?

[Aylin Woodward]

Great question. So when you think about typical things that are sent on the typical Internet, they tend to be sent in the form of classical info. So classical info, the units are called bits and they have a fixed value. They're either going to be a one or a zero. Think the matrix. And by contrast, when you send quantum information, that information isn't sent in those classical bits. It's sent in the quantum version of them known as qubits. And rather than being a fixed value, those qubits can store multiple values at once. Which means basically that when you send quantum information. So quantum communications as opposed to the more traditional ones, you can make them much more secure.

[Katie Dayton]

Explain that a bit more. How is quantum communication more secure Today?

[Aylin Woodward]

Our data is protected by encryption keys. And these encryption keys are based on algorithms, like mathematical formulas that with enough computing power, can be broken by a quantum computer. And these quantum computers are getting better and more powerful. So eventually it's possible that encryption keys could be broken. But if you were to encrypt something quantumly. So quantum cryptography, it basically generates a key that isn't based on any math and therefore is virtually uncrackable. So we're Talking about a 500 digit string of random values that you can't reverse engineer that.

[Katie Dayton]

You have some fantastic diagrams in your article Breaking this down and the link is in the show Notes, but for listeners. Can you explain just what happened in the experiment that you wrote about?

[Aylin Woodward]

This particular work was executed by researchers at Toshiba Europe limited And it's part of their efforts to make quantum communications possible at a national scale level, network in sort of real world conditions. Essentially what happened was a group of researchers took ordinary computers, so not quantum computers, ordinary computers, and they basically plugged into an existing telecommunications network at a national scale. So they went over to Germany, they selected three commercial data centers in three German cities, and they plugged in their computers and they sent quantum information along existing fiber optic cables. This broke a distance record for this type of coherent quantum communication that hadn't been done before outside of a laboratory setting. Typically, what happens in order to send a piece of information quantumly, you need these very expensive superconducting detectors that are able to detect a single photon of light which incorporates quantum information. And these superconducting detectors must be cryogenically cooled, usually with liquid helium, to ridiculously cold temperatures. And that cooling mechanism is expensive and bulky. And so rather than using those types of specialized equipment, they took something that was a little bit cheaper, a little bit more practical, that didn't have to be cooled quite so much. They could use it at room temperature or slightly below room temperature. And that's a big step towards making a breakthrough of having it be a little bit more widespread because it's cheaper. And quantum communications are critical to securing information. The ability to send info in this manner means that your health records, your financial records, are far more impervious to sort of cyber eavesdropping than they would be if sent otherwise.

[Katie Dayton]

I'd love to dive a little bit more into those real world implications. Can you take us through how this might affect everybody's daily lives if this becomes a mainstream piece of technology.

[Aylin Woodward]

The ultimate goal here, and this is a step towards that goal, is that the setup of a quantum Internet. So as opposed to the more traditional regular Internet that we think of today, a quantum Internet would secure information, give us secure communications. And while you in your living room wouldn't really maybe be plugged into the quantum Internet, you could rest easier at night knowing, for example, your hospital or your banking corporation had invested money in enabling these types of secure data transmissions and communications that involve your data. So it ultimately means that your information could be more secure and that type of security can be bought for far less money.

[Katie Dayton]

That was our reporter Aylin Woodward. And that's it for Tech News Briefing. Today's show was produced by Julie Chang with deputy editor Chris Sinsley. I'm Katie Dayton for the Wall Street Journal. We'll be back this afternoon with TMB Tech Minute. Thanks for listening.

[Elastic Representative]

Why do over 50% of the Fortune 500 use Elastic? Because Elastic has done the hard work of making it easier for companies to do generative AI. Right. Elastic's search AI helps them make insightful and impactful decisions at speed across search, observability and security. Elastic has the power to take your data into the future. Explore the possibilities of AI with your data at Explore Elastic Co Elastic for Search AI company.