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In June 2013, the world was shaken by the unprecedented disclosures made by whistleblower Edward Snowden, revealing extensive surveillance programs operated by intelligence agencies like PRISM and XKeyscore. While some view the leaks as an act of treason, it is essential to recognize the profound positive impact they have had on Western societies. The Snowden leaks served as a wake-up call, igniting a crucial debate on the balance between security and privacy, fostering necessary reforms, and empowering individuals with knowledge.
The Snowden leaks, one of the few conspiracy theories that have proven true, have been a catalyst for privacy and transparency. But is this a lasting success?
Ten years on, we must take a look at how the publications on NSA surveillance by the whistleblower changed our societies, but also take a look at where we stand today and what challenges are ahead of us.
All in all, one must conclude that the Snowden leaks have been a real catalyst for our right to privacy, particularly online. The leaks sparked interest in privacy-preserving apps such as Tor, Signal and Tutanota. All of these services might not exist today without Edward Snowden.
The leaks contributed to a surge in the adoption of encryption and privacy tools by individuals and organizations - a trend that was already ongoing back then, but interest really took off after the revelations by whistleblower Edward Snowden. People became more conscious of their online privacy and sought ways to protect their digital communications. It was like a wake-up call.
While today concern about state surveillance, particularly from Russia and China, is still a predominant, most people are more concerned about surveillance by Big Tech when choosing privacy-first apps like Tutanota, Threema, or Tor.
Cryptography expert Matthew Green writes on Twitter:
"If Snowden hadnât appeared in 2013 I wonder how much deeper in the âmandatory scanning of encrypted messagingâ applications mess we would be today. I feel like that may have bought us years."
"Ironically it also bought several years for content scanning systems to get potentially much smarter (and scarier) thanks to developments in AI/ML. I think the delay was helpful because it helps us to see how much more powerful these systems will soon be."
"I remain hopeful that some of the AI safety/ethics experts will talk more about how important the law enforcement/surveillance capabilities of these systems are and what these new content scanning laws could mean."
Green already hints at the "mess" we are in today: Chat control. Chat control is a draft law by the European Union that wants to make client-side scanning of chat and email messages mandatory throughout the EU to fight child abuse and terrorism. However, the backlash against EU client-side scanning is enormous.
We as an email service have analyzed what crimes are being investigated with telecommunication surveillance orders. The conclusion: It is not to protect the children. The stated reasons by the EU for automatic CSAM scanning are only being used to swing the public opinion in their direction.
Unfortunately, it's not just chat control. The Online Safety Bill in the UK as well as the Lawful Access to Encrypted Data Act and EARN IT bill in the USA are two more alarming examples of how democratic governments try to push surveillance and weaken encryption.
Snowden himself sees the risks as well:
"It feels like in just ten years, EU bodies have transformed from "our best hope for a sincere guarantor of global human rights" into "authoritarian cabal strenuously advocating for the planetary, machine-enforced restriction of basic human liberty."
People on Reddit are also quite pessimistic about the future outlook:
"At the end of the day, the revelations had zero impact on the lives of ordinary people. Just like before when the surveillance was secret."
However, they also acknowledge that privacy-first tools would not exist had it not been for Edward Snowden and his NSA leaks:
"I think Threema and Signal would not exist."
All in all, however, the changes in legislation were meager: Snowden and his leaks forced US intelligence agencies to admit extensive spying on US citizens. Some reforms were enacted but the whistleblower still faces potentially 30 years in prison - that's why he has been living in Russian exile for ten years now.
Before he blew the whistle, Edward Snowden was living a comfortable life with a well-paid job in Hawaii.
The Guardian asks: "Was his act of self-sacrifice worth it â did he make a difference?" The answer - in the long run at least - is not too much.
âI wish things had changed more than they have,â says Jameel Jaffer, executive director of the Knight First Amendment Institute at Columbia University in New York. âI would say that the Snowden disclosures made a huge difference to how informed public debate is about the governmentâs surveillance activities.â
Increased Awareness and Debate: Prior to the leaks, the activities of intelligence agencies operated largely in secrecy, evading public scrutiny and lacking adequate oversight. Snowden's revelations prompted governments to reevaluate their surveillance practices and implement reforms. The resulting legal changes and increased oversight mechanisms aimed to strike a balance between national security and the protection of civil liberties, particularly in the US and Europe. For the first time, the power of surveillance became obvious to everyone and people felt threatened by this. Thus, the leaks catalyzed important debates and measures to enhance accountability within intelligence agencies. However, changes did not go far enough, and today, governments are moving into the opposite direction again.
Safeguarding Democracy and Human Rights: In a democratic society, the right to privacy is fundamental. The Snowden leaks forced citizens and governments alike to reevaluate the erosion of civil liberties in the name of security. By shedding light on questionable practices, Snowden reminded us of the importance of protecting individual freedoms and the democratic principles upon which Western societies are built. The leaks became a catalyst for challenging the erosion of privacy rights and reinforcing the value of human rights in an increasingly connected world.
Technological Advancement and Encryption: Snowden's revelations shed light on the vulnerabilities of digital communication and the need for improved security measures. In response, the tech industry invested in developing stronger encryption protocols and privacy-enhancing technologies. This has resulted in increased protection for individuals, making it harder for governments and malicious actors to gain unauthorized access to personal data. The leaks spurred innovation, making privacy and security a priority in the design of new digital tools. Many companies like Facebook & Google tried to present themselves as the new defenders of privacy. However, people by now - and also thanks to the Snowden leaks - understand that only proper end-to-end encryption can protect their data and, thus, choose services like Signal and Tutanota.
International Relations: The Snowden leaks strained diplomatic relationships between the United States and its allies. Many countries, especially European nations, expressed outrage at the extent of surveillance activities targeting their citizens. This led to tensions and negotiations regarding intelligence sharing agreements and data privacy protections. These tensions in the tech sector are going on to this day, leading to huge fines for Facebook and other tech giants because of violations of the European GDPR
Whistleblower Protection: Snowden's bold act exposed the challenges faced by whistleblowers who seek to expose government misconduct. His case brought attention to the need for better protection for those who take risks to bring crucial information to the public's attention. The leaks have influenced ongoing discussions around whistleblower protection, encouraging legal reforms that recognize the vital role of whistleblowers in upholding accountability and transparency.
While the Snowden leaks were undoubtedly controversial, their impact on Western societies cannot be ignored. The disclosures initiated vital conversations about privacy, transparency, and government accountability. They led to tangible changes, including legal reforms, increased oversight, and technological advancements that prioritize individual privacy. Edward Snowden's actions forced us to question the status quo and strive for a society that values both security and civil liberties.
THe Electronic Frontier Foundation (EFF) says:
"Now, ten years after those pivotal revelations, what has changed? Some things are undoubtedly better â under the intense scrutiny of public attention, some of the National Security Agencyâs most egregiously illegal programs and authorities have shuttered or been forced to end. The Intelligence Community has started affirmatively releasing at least some important information, although EFF and others have still had to fight some long Freedom of Information Act (FOIA) battles. Outside of government, companies and organizations have worked to close many of the security holes that the NSA abused, most prominently by encrypting the web.
"But itâs not enoughânot even close. Thereâs still much work to be done to rein in our overzealous national security state, break political gridlock, and end the extreme secrecy that insulates some of the governmentâs most invasive tactics."
But the EFF concludes that "in 2021 alone, the FBI conducted up to 3.4 million warrantless searches of Section 702 data to find Americansâ communications". This illegal mass surveillance must end, and the EFF is fighting. You can join them.
Taken together, the changes brought to our societies by the Snowden leaks have been very positive, however, not long lasting. Today it is even more important for us to fight for our right to privacy!
In June 2013, the world was shaken by the unprecedented disclosures made by whistleblower Edward Snowden, revealing extensive surveillance programs operated by intelligence agencies. On June 6, 2013, an article in the Guardian was the first publication in a series of many others based on leaked information by whistleblower Edward Snowden, which revealed a worldwide unrestricted spying program of the USA, done by the secret services NSA and FBI. This article revealed the fact that the NSA was collecting data on telephone conversations of millions of US residents.
After that, the Washington Post followed up by revealing the Prism eavesdropping program. According to the report, the NSA and the FBI directly tapped into central computers and thus the customer data of Internet companies such as Apple, AOL, Google, Facebook, Microsoft, Yahoo and Skype. They gained access to videos, photos, emails, documents and contact data, for example, and were thus able to create extensive profiles of users.
In a video statement published a few days later, whistleblower Edward Snowden described the spying capabilities of the USA as significantly greater than anyone could have imagined: "If I wanted to look into your emails or your wife's phone, all I'd have to do is pull up the intercepted data." Any authorized intelligence officer could get "emails, passwords, call data, credit card information" of wanted persons on a grand scale without judicial authorization. | Tech Giants |
Bug Bounty Program: Spot A Bug In OpenAI's ChatGPT And Earn Up To Rs 16 Lakh
Bug bounty programmes allow individuals to report various types security exploits, vulnerabilities, and process errors.
OpenAI, the creator of ChatGPT, is ready to offer up to $20,000 (about Rs 16.4 lakh) to any user for report a bug in the artificial intelligent system.
The Bug Bounty programme by OpenAI aims to enhance the security and reliability of its AI systems by excluding any incorrect or malicious content, according to its statement. It is unclear what the company will do with users' data.
What Is OpenAI's Bug Bounty Programme?
Bug bounty programmes allow individuals to report various types security exploits, vulnerabilities, and process errors to a company in exchange for rewards. The researchers were invited to assess specific aspects of ChatGPT's features and the system's method for exchanging data with external applications in the OpenAI framework.
It will offer $200 to $20,000 based on the severity of the bugs found.
Is OpenAI First One To Do This?
It’s not the first time that a company started a bug bounty programme. Tech giants including Facebook Inc., Apple Inc., and WhatsApp have encouraged ethical hackers to report the bugs in their software systems. OpenAI expect this will help it build a better security system and reliable artificial intelligence.
Why Is OpenAI Doing It?
OpenAI launched the bug bounty programme shortly after ChatGPT was banned in Italy due to a suspected privacy violation. This event has led regulators in other European countries to increase their scrutiny of generative AI services. OpenAI sees it as a necessary measure to enhance the security and dependability of its artificial intelligence systems in light of the growing adoption of AI across industries. | Tech Giants |
As fears of a potential recession grow, FOX Business provides a roundup of the companies that have either laid employees off or halted or slowed hiring. Big TechOn Thursday, Snap Inc. said it would "substantially slow" its rate of hiring to "effectively pause" its headcount growth after reporting its weakest-ever quarterly sales growth as a public company. Ticker Security Last Change Change % SNAP SNAP INC. 9.95 -6.42 -39.22% In a memo to employees earlier this month, Alphabet CEO Sundar Pichai said Google would slow its hiring for the remainder of 2022. A Google spokesperson told FOX Business Wednesday that most new offers would be paused for two weeks to enable teams to prioritize their roles and hiring plans for the rest of the year. Ticker Security Last Change Change % GOOGL ALPHABET INC. 107.90 -6.44 -5.63% Meanwhile, Microsoft laid off a "small number" of employees as part of a "strategic alignment" and Apple is reportedly slowing its hiring and spending growth in 2023. Ticker Security Last Change Change % MSFT MICROSOFT CORP. 260.36 -4.48 -1.69%AAPL APPLE INC. 154.09 -1.26 -0.81% In June, Reuters reported that Intel Corporation would freeze hiring for at least two weeks in its unit responsible for PC desktop and laptop chips.Ticker Security Last Change Change % INTC INTEL CORP. 39.20 -1.41 -3.47%META META PLATFORMS INC. 169.27 -13.90 -7.59%TWTR TWITTER INC. 39.98 +0.41 +1.02% In May, Meta Platforms said it would halt or slow down hiring for most mid-to-senior level positions, citing both global and domestic headwinds. Meta has also reportedly told managers to "move to exit" any employees who are "coasting" and "failing" the company. Twitter also paused most hiring in May ahead of the closing of Elon Musk's $44 billion acquisition of the social media giant. In July, a Twitter spokesperson told FOX Business that it made the "difficult decision to restructure and reduce" its talent acquisition team to align with its revised business needs.HOW HOUSING IS FUELING SEARING-HOT INFLATIONMedia and FitnessOn Wednesday, Vimeo said it would be slashing its workforce by 6%, citing "challenging market conditions and uncertainty" ahead. Ticker Security Last Change Change % VMEO VIMEO 5.98 -0.45 -7.00% In June, Spotify said it would slow down hiring by 25% amid "increasing uncertainty regarding the global economy." Ticker Security Last Change Change % SPOT SPOTIFY TECHNOLOGY SA 111.59 -4.02 -3.48% In May, Netflix laid off around 150 employees who were mostly based in the U.S. The move came after it reported its first subscriber loss in over a decade. Ticker Security Last Change Change % NFLX NETFLIX INC. 220.44 -3.44 -1.54% A month later, the streaming behemoth let go of another 300 people across its U.S. and Canada, Latin America, Asia-Pacific, Europe, Middle East and Africa regions. Ticker Security Last Change Change % PTON PELOTON INTERACTIVE INC. 9.77 -1.49 -13.23% In February, Peloton cut 2,800 jobs as part of a global restructuring. The fitness giant's instructors were spared from the move. AutomakersFord Motor is reportedly planning to cut 8,000 jobs as the automaker looks to invest more money into electric vehicles. Ticker Security Last Change Change % F FORD MOTOR CO. 12.85 -0.15 -1.15% EV maker Rivian confirmed last week that it would be taking "major" cost-cutting measures and that it would be as "thoughtful as possible" in considering any workforce reductions. The announcement follows reports the maker of delivery vans for Amazon was planning to lay off about 5% of its workforce. Ticker Security Last Change Change % RIVN RIVIAN AUTOMOTIVE INC. 32.48 -1.65 -4.83%AMZN AMAZON.COM INC. 122.42 -2.21 -1.77% In June, Tesla laid off 200 employees after closing its San Mateo, California office. Ticker Security Last Change Change % TSLA TESLA INC. 816.73 +1.61 +0.20% The move came after Elon Musk's company reportedly paused hiring. Musk previously said he has a "super bad feeling" about the economy and that he planned to cut 10% of Tesla's salaried staff. JOBLESS CLAIMS RISE TO HIGHEST LEVEL IN 8 MONTHSRide-hailingThe Wall Street Journal reported on Wednesday that Lyft is shuttering its rental business, cutting 60 workers and reducing its global operations team by trimming regions from 13 to 9. Ticker Security Last Change Change % UBER UBER TECHNOLOGIES INC. 23.30 -0.93 -3.84%LYFT LYFT INC. 13.54 -0.63 -4.45% Lyft's move comes after Uber CEO Dara Khosrowshahi said in May that the ride-hailing giant would "treat hiring as a privilege and be deliberate about when and where we add headcount."Real EstateRedfin cut 8% of its workforce in June after demand for homes in May fell nearly 20% short of the company's projections.Ticker Security Last Change Change % RDFN REDFIN CORP. 9.30 -0.51 -5.20% At the time, the real estate brokerage warned that the housing industry could face years of fewer home sales amid rising mortgage rates. Ticker Security Last Change Change % COMP COMPASS INC. 3.67 -0.17 -4.43% In addition, real estate broker Compass reportedly said it would cut 450 jobs "due to the clear signals of slowing economic growth" but noted that agents would not be impacted. It also said it would pause hiring expansion and mergers and acquisitions until the end of 2022.RetailA 7-Eleven spokesperson confirmed to FOX Business on Thursday that the convenience store chain made the difficult decision to cut approximately 880 jobs in its Irving, Texas and Enon, Ohio support centers and field support operations. Ticker Security Last Change Change % SVNDY SEVEN & I HOLDINGS CO. LTD. 19.57 +0.14 +0.72% The move comes just over a year after the company acquired competitor Speedway for $21 billion.Ticker Security Last Change Change % VSCO VICTORIA'S SECRET & CO. 33.28 +0.95 +2.94% Earlier this month, Victoria's Secret laid off 160 management executives from its home office in Ohio. At the time, the lingerie, clothing, and beauty retailer said the layoffs constitute roughly 5% of its corporate population in Ohio and would save $40 million annually in salaries.Ticker Security Last Change Change % GME GAMESTOP CORP. 35.81 -118.19 -76.74% GameStop fired chief financial officer Michael Recupero and reportedly laid off an undisclosed number of employees. CLICK HERE TO READ MORE ON FOX BUSINESSCryptocurrency exchangesIn June, crypto exchanges Coinbase and Gemini laid off employees after warning of a possible recession and "crypto winter". Coinbase laid off 18% of its global workforce, or approximately 1,100 employees, while Gemini laid off roughly 10%. Ticker Security Last Change Change % COIN COINBASE GLOBAL INC. 70.82 -3.16 -4.27% Other crypto firms that have reportedly laid off employees include Blockchain.com, BlockFi and Crypto.com.BanksIn June, JPMorgan Chase laid off hundreds of employees in its mortgage business and reassigned hundreds more to different divisions, citing "cyclical changes in the mortgage market." Ticker Security Last Change Change % JPM JPMORGAN CHASE & CO. 114.76 -0.56 -0.49%GS THE GOLDMAN SACHS GROUP INC. 323.93 -2.61 -0.80% Meanwhile, Goldman Sachs said this week that it has slowed hiring and is reducing certain professional fees amid a "challenging operating environment." The investment bank is also considering reinstating annual performance reviews for employees. | Tech Giants |
(Bloomberg) -- Amazon.com Inc. reported quarterly profit that topped estimates on its cost cuts and surprisingly strong sales in the cloud-computing division, a sign the retailer’s business is weathering an uncertain economy. The shares gained about 8% in extended trading.
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First-quarter revenue increased 9.4% to $127.4 billion, the Seattle-based company said Thursday in a statement, above expectations for $124.7 billion. Operating income was $4.8 billion. Analysts, on average, projected $3 billion.
The world’s largest online retailer and cloud-computing provider has been working for more than a year to streamline its businesses to adjust to slowing sales growth in online shopping and its Amazon Web Services division. The company is cutting 27,000 jobs, the largest such cull in its history, with the latest round of layoffs announced Wednesday landing mostly on employees of AWS, its cloud unit.
Sales in the cloud unit rose 16% to $21.4 billion, more than Wall Street projected, although it was the fifth straight quarter that AWS year-over-year sales growth declined. Some analysts have speculated that a slowdown in corporate technology spending could push the cloud unit’s growth rates to single digits later this year.
Amazon’s results suggested the company’s efforts to reduce costs are starting to bear fruit. Operating expenses increased 8.7% in the quarter, the slowest pace in at least a decade. The company’s North America segment was profitable on an operating basis for the first time since late 2021.
The Seattle-based company projected sales of $127 billion to $133 billion in the current period ending in June and operating profit of $2 billion to $5.5 billion. Both were in line with estimates.
Amazon’s positive results follow similar good news this week from fellow big tech companies Alphabet Inc., Microsoft Corp. and Meta Platforms Inc. Microsoft, like Amazon, reported sustained sales for its public cloud business while Alphabet’s Google Cloud produced a profit for the first time. Meta’s digital advertising business rebounded, returning the company to sales growth after three straight quarters of declines. Amazon reported a 21% increase in its advertising sales to $9.51 billion.
The shares rose to a high of $123 in extended trading after closing at $109.82 in New York. The stock has gained 31% so far in 2023, part of a broad rebound among battered technology firms.
(Updates with cloud unit sales in the fourth paragraph.)
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329 episodes TechCheck is home to the boldest ideas and most influential names in the tech industry. The bi-coastal program dives deep into stocks focused on new technologies and trends while highlighting the latest news out of iconic companies, FAANG heavyweights, social media darlings, streaming giants, red-hot disruptors and more. Every weekday, TechCheck offers investors compelling, in-depth reporting, analysis and news-making interviews from the most notable and disruptive founders and CEOs in the tech industry that will chart the future of the global economy. The daily podcast is hosted by CNBC’s Jon Fortt and Carl Quintanilla on the East Coast and Deirdre Bosa on the West Coast and features CNBC’s Senior Media & Entertainment Reporter Julia Boorstin from Los Angeles. TechCheck is home to the boldest ideas and most influential names in the tech industry. The bi-coastal program dives deep into stocks focused on new technologies and trends while highlighting the latest news out of iconic companies, FAANG heavyweights, social media darlings, streaming giants, red-hot disruptors and more. Every weekday, TechCheck offers investors compelling, in-depth reporting, analysis and news-making interviews from the most notable and disruptive founders and CEOs in the tech industry that will chart the future of the global economy. The daily podcast is hosted by CNBC’s Jon Fortt and Carl Quintanilla on the East Coast and Deirdre Bosa on the West Coast and features CNBC’s Senior Media & Entertainment Reporter Julia Boorstin from Los Angeles. JUN 27, 2022 Tech Companies React to Overturn of Roe v. Wade, Snowflake CEO Frank Slootman on User Conference & FalconX CEO Raghu Yarlagadda on Latest Funding Round 6/27/22 Tech Companies React to Overturn of Roe v. Wade, Snowflake CEO Frank Slootman on User Conference & FalconX CEO Raghu Yarlagadda on Latest Funding Round 6/27/22 We start today’s show with New Street Advisors Group Founder and CEO Delano Saporu sharing his outlook for Meta, Coinbase and more, and Citi Co-Head of U.S. Software Equity Research Tyler Radke joins with his top picks amid the volatility. Then, our Julia Boorstin reports on the reaction of tech companies to the Supreme Court overturning Roe v. Wade, and Snowflake CEO Frank Slootman offers his main takeaways from the cloud computing firm’s recent global user conference. Later, FalconX CEO Raghu Yarlagadda discusses the crypto trading platform doubling its valuation with a $150 million funding round. JUN 24, 2022 The Supreme Court Overturns Roe v. Wade 6/24/22 The Supreme Court Overturns Roe v. Wade 6/24/22 We spend today’s show bringing you CNBC’s breaking coverage of the Supreme Court overturning Roe v. Wade, with live reporting from Chief General News Anchor Shepard Smith and insight on the implications of the ruling moving forward. JUN 21, 2022 Snap CEO Evan Spiegel on Outlook, ProShares Launches First Bitcoin Short ETF & Gong CEO Amit Bendov on Tech Revenue Guidance 06/21/22Bitcoin Short ETF & Gong CEO Amit Bendov on Tech Revenue Guidance 06/ Snap CEO Evan Spiegel on Outlook, ProShares Launches First Bitcoin Short ETF & Gong CEO Amit Bendov on Tech Revenue Guidance 06/21/22Bitcoin Short ETF & Gong CEO Amit Bendov on Tech Revenue Guidance 06/ Our anchors begin today’s show with Snap CEO Evan Spiegel after the social media platform started testing a paid subscription model last week to try boosting revenue. Then, CNBC’s Kate Rooney reports on the recent crash in crypto prices, and ProShares Global Investment Strategist Simeon Hyman joins after launching the first Bitcoin short ETF. Next, CNBC’s Frank Holland looks at how currency values are impacting growth for cloud and enterprise tech, and revenue forecasting firm Gong Co-Founder and CEO Amit Bendov offers his thoughts on sales guidance amid the ongoing volatility. Later, Verge Editor-in-Chief Nilay Patel previews the news site’s Netflix series, “The Future Of,” before the show premieres tonight. Customer Reviews My daily tech update This show provides insightful technology news and how it affects technology comes. The group also have very helpful interviews. Great content Very good start, love that Carl has his own show now. Glad they talk little about Bitcoin, there are plenty of those podcasts. One small peeve.. the sound effects. Please chill with the constant sound effects. Good start Solid start but needs podcast 2.0 tags so people can send donations when they like.That Jack Mallers Guest was genius.Also needs more Bitcoin content by people who don’t sound like boomers when attempting to talk. Top Podcasts In Technology You Might Also Like | Tech Giants |
Whether by choice or necessity, many workers will change jobs in the months ahead.Some companies, particularly tech giants, have been announcing deep cuts to their workforces as they face ongoing challenges due to rising interest rates and inflation.Most recently, Google said that it will lay off 12,000 people, Amazon announced a fresh wave of job cuts affecting over 18,000 people, and Microsoft said it plans to lay off 10,000 workers amid fears of an oncoming recession.At the same time, government data shows the U.S. labor market is still strong, with a record low unemployment rate of 3.5%.Many industries continue to do very well, according to Barbara Safani, president of Career Solvers in New York. The tech layoffs don't "necessarily reflect on the broader job market," she said.And the Federal Reserve has demonstrated it can raise rates without jeopardizing the robust labor market so far, Randy Frederick, managing director of trading and derivatives for Charles Schwab, recently told CNBC."If you can engineer a decline in inflation without crushing the jobs market, that's the 'Goldilocks' soft landing." 96% of workers will look for new job in 2023In general, "the first quarter of the year is always a good time to look because fiscal budgets have been replenished," Safani said. Overall, a whopping 96% of workers are looking for a new job in 2023, largely in search of better pay, according to a recent report by jobs site Monster.com. "This is phenomenally high," even compared with the numbers at the height of the "Great Resignation," said Vicki Salemi, career expert at Monster.Nearly half, or 40%, of job seekers said they need a higher income due to inflation and rising expenses, Monster found. Others said they have no room to grow in their current role or that they are in a toxic workplace.More from Personal Finance:Paid biweekly? Here are your 2 three-paycheck months in 2023 If you want higher pay, your chances may be better now Workers still quitting at high ratesJob-switching is widely considered the best way to improve your career prospects and pay. In fact, the difference in wage growth for job switchers relative to those who stay in their current role is at a record high.The latest data shows job switchers have seen 7.7% wage growth as of November, while workers who have stayed in their jobs have seen 5.5%, according to Daniel Zhao, lead economist at Glassdoor, citing data from the Atlanta Federal Reserve.Key considerations when looking for a new jobFor those kicking off a job search, Safani advises clients to consider how all aspects of a new position measure up."Really look at it holistically," she said. "You may be getting paid more, but it's important to vet that opportunity." Other factors to consider include opportunities for advancement, flexibility and a healthy work-life balance."Do your research," Salemi advised. "Find out what the benefits are, find out what the culture is like.""Workers can have both — a higher salary and a positive, healthy work environment."Subscribe to CNBC on YouTube. | Tech Giants |
Big Tech’s Disappointing Earnings Erase $200 Billion in Value
The so-called Magnificent Seven technology companies that have powered this year’s US stock rally are posting disappointing earnings, wiping $200 billion off their market value and threatening to push the S&P 500 into a correction.
(Bloomberg) -- The so-called Magnificent Seven technology companies that have powered this year’s US stock rally are posting disappointing earnings, wiping $200 billion off their market value and threatening to push the S&P 500 into a correction.
Google owner Alphabet Inc., Tesla Inc. and Facebook parent Meta Platforms Inc. have all slumped since reporting, with Microsoft Corp. the only bright spot. Amazon.com Inc. publishes results after the close Thursday, and the options market is implying a one-day move for the stock of 8.1% in either direction — putting about $100 billion in market value in play.
The remaining two — Apple Inc. and Nvidia Corp. — are due to report next month.
The seven companies have been the story of the year in the stock market, with a frenzy of interest around artificial intelligence fueling gains for many of them. The optimism is waning because of higher interest rates and war in the Middle East — the S&P 500 has fallen 8.8% from its 2023 peak, putting it within reach of the 10% drop that’s defined as a correction in a bull market.
Yet there’s still plenty of euphoria left. The tech-heavy Nasdaq 100 Index, dominated by the Magnificent Seven, remains up 31% for year, meaning there’s plenty of room for the market to fall.
Read more: Alphabet 10% Plunge Follows Tesla in Stern Warning on Valuation
Meta’s results are going to weigh on the market when trading opens Thursday. The stock fell 2.4% in premarket trading after the social media giant dashed investors’ hopes for a long-term advertising recovery, saying it was at the whim of an uncertain economic environment.
This comes on the heels of Alphabet erasing almost $180 billion in market value on Wednesday after the company’s cloud unit reported a smaller-than-expected profit. The loss was the biggest single-session market value wipeout for the search giant. Earlier in the month, Tesla’s value shrank by $72 billion in one day after its results.
For now, the only glimmer of hope among the big seven is Microsoft. The Windows software maker rallied to add about $75 billion in market value on Wednesday, after the software giant reported first-quarter results that beat expectations.
Alphabet and Microsoft, which both trail Amazon in cloud infrastructure, have been racing to build up their AI offerings as a way to make their platforms more enticing to customers. Their diverging sets of results raise the bar for cloud computing leader Amazon when it reports earnings on Thursday.
--With assistance from Tom Contiliano.
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Facebook co-founder and chief executive, Mark Zuckerberg, speaks at an Oculus developers conference ... [+] while wearing a virtual reality headset in San Jose, California on October 6, 2016. Facebook unveiled new hardware for its Oculus division as part of a stepped-up effort to integrate virtual reality with the leading social network. The new offerings aim to get an array of virtual reality gear to consumers in the coming months, including a new "Touch" controller and compatible computer to help spur Facebook's push. / AFP / Glenn CHAPMAN (Photo credit should read GLENN CHAPMAN/AFP via Getty Images) AFP via Getty Images Mark Zuckerberg’s ambitions for the “metaverse,” the buzzy brand he has assigned to the idea of a digital world buttressed by virtual reality and dominated by Facebook parent Meta, have already run afoul of government regulators. On Wednesday, the Federal Trade Commission filed an antitrust lawsuit against Meta, seeking to block its acquisition of a virtual reality firm called Within, which makes the popular fitness app Supernatural. “One need look no further than the rebranding of the company from Facebook to Meta in 2021 to understand its vision and its priorities for the future,” the complaint reads, adding that the buyout would bring Meta “one step closer to its ultimate goal of owning the entire ‘Metaverse.’” “But instead of choosing to compete on the merits through its own VR dedicated fitness app, Meta has resorted to proposing this unlawful acquisition.” The terms of the deal were undisclosed. The lawsuit highlights an uncomfortable truth for Meta as it pursues its conquests of virtual worlds: the hurdles are adding up. Zuckerberg may have gavage fed the term "metaverse" into popular usage, (it was first coined in the 1992 novel sci-fi Snow Crash), but despite Meta's head start, the company faces dangers from all angles: regulators, competitors, moderation problems, and a weary ecosystem of potential partners put off by years of Facebook-related baggage. Meanwhile, the company on Wednesday faced its first-ever decline in revenue — a stark blow because Facebook’s juggernaut advertising machine fuels its metaverse ambitions. Facebook parent Meta declined to answer specific questions about challenges it faces while carrying out its metaverse vision, instead commenting only on the FTC lawsuit. “The FTC's case is based on ideology and speculation, not evidence,” company spokesperson Christopher Sgro said. “The idea that this acquisition would lead to anticompetitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible.” Meta has good reason to be confident about its metaverse. It made an early bet on VR with its $2 billion acquisition of Oculus in 2014, then a fledgling platform. The company has also poured serious investment into its metaverse projects. Last year, Reality Labs, ground zero for Facebook's metaverse efforts, lost more than $10 billion. But the money and time may not necessarily translate to success. Other tech giants have already tried: Alphabet’s foray with Google Glass ended in implosion, while Microsoft’s efforts with its Hololens goggles have so far been met with a lukewarm reception. To start, Meta has to contend with its poor track record in content moderation. For years, Facebook has been dogged with its inability to police harassment, extremism, violence and suicide on its social network. Some of those issues are already bleeding into the metaverse. Earlier this year, BuzzFeed News created a private test world in Meta's Horizon World app that ran afoul of the company's policies on hate speech. Meta's moderators ignored it even after it was reported as violative. Children are also already flocking to Horizon Worlds, and experts are worried predators will follow. As Meta works to establish its metaverse as the next big platform, Zuckerberg has identified Apple as a key foe. For years, a rivalry has been bubbling between the two companies. As Facebook limped from one privacy scandal to the next, Apple CEO Tim Cook criticized the social network’s advertising business, and Meta’s revenue has been torpedoed by the iPhone’s new guardrails for data tracking in apps. Zuckerberg has also taken potshots, deriding Apple’s high price tags for consumer devices.
Zuckerberg reportedly thinks the two companies are primed for an even bigger battle, with monumental stakes: the future of the internet itself. “Apple is going to be a competitor,” Zuckerberg said during a company all-hands meeting earlier this month, according to the Verge. “It’s not just [that] they have a device that has some more features than us. It’s a very deep, philosophical competition about what direction the internet should go in.”
Apple has mostly been mum about its plans for virtual and augmented reality — and it doesn’t use the word “metaverse” — but the company is rumored to soon be releasing a mixed reality headset. The device would be the company’s first entrance into a major new hardware category since the Apple Watch in 2015, and would be a major initiative as the tech industry attempts to settle a frontier beyond smartphones. Apple and Facebook, in Zuckerberg’s eyes, have visions for virtual/augmented reality that are diametrically opposed. Facebook intends to work with several different companies to power its efforts, he told employees, while Apple will make everything itself — an approach the company has taken with all of its other products. Last month, Meta helped launch the Metaverse Standards Forum, a coalition of companies that aims to develop open standards and interoperability in the metaverse. High-profile members include Microsoft, Epic, and Nvidia. But one glaring, but obvious, absentee is Apple. It’s also notable that whenever Facebook has tried big projects that require buy-in from several different partners, like with its Libra cryptocurrency initiative, its efforts to build its own phone, or connectivity projects like Internet.org, those efforts have eventually fizzled out.
But while Zuckerberg touts the openness of Facebook’s metaverse, Apple’s approach is open as well in the one way that matters most: its relationship with app developers, said Bob O’Donnell, principal analyst for the research firm Technalysis. “Meta has a good amount of developer support, but nothing like what Apple has done,” he said. Meta will also be at a deficit when it comes to its reputation with privacy, O’Donnell said. “Apple starts with a clear advantage, and Meta starts with a clear disadvantage.”
Apple didn’t respond to a request for comment. Apple is also more adept at selling hardware. Jaron Lanier, a pioneer in the field of virtual reality, said he would like Meta’s business model in the metaverse to focus on selling devices and other goods, instead of relying on an advertising model that could be used for “influence peddling.” The model has its limitations, as illustrated by Wednesday’s revenue decline, so the metaverse could be an opportunity to experiment with something different. “But Meta is really just stuck in ideology,” he said. (Lanier currently works for Microsoft, but said he doesn’t speak on behalf of the company.) Still, Meta has faced challenges when it comes to selling hardware. Earlier this week, the company said it’s raising the price of its Meta Quest 2 from starting at $300 to $400, a sign that it can’t continue to subsidize its device business like it has up until now. And Apple, likely to be Meta’s most formidable competitor, hasn’t even released a product yet. | Tech Giants |
Thomas Barwick | DigitalVision | Getty ImagesBig-name tech firms like Amazon, Google, Meta and Microsoft are undergoing mass layoffs, but job prospects for applicants in the broader tech ecosystem are poised to be among the best of any industry in 2023, according to a new ranking.Eight of the top 10 "best jobs" in the U.S. this year are technology roles, according to Indeed, which conducts an annual list of the top roles for job seekers.Those tech jobs, per Indeed's rankings, are full-stack developers, at No. 1; data engineers (No. 2); cloud engineers (No. 3); senior product managers (No. 5); back-end developers (No. 6); site reliability engineers (No. 7); machine learning engineers (No. 8); and product designers (No. 10).More from Personal Finance:Despite layoff announcements, it's still a good time to get a jobGoogle bonus delay has a windfall lesson for workersWhat to know about filing for unemployment as layoffs risePsychiatric nurses and psychiatric mental health nurse practitioners were the two nontech jobs in the top 10, ranking at No. 4 and No. 9, respectively.Almost half, 44%, of the top 25 were tech jobs.The possibilities in tech extend beyond the traditional technology giants to areas like retail, finance, professional services, travel and tourism — all of which need technologists to build firms' online presence and business, said Scott Dobroski, Indeed's career trends expert."The tech skill set is very much in demand by companies everywhere," Dobroski said. "Because every company today is a tech company."Indeed's ranking is based on "opportunity" for job seekers, meaning roles had to be fast growing. For example, there were 1,398 positions available for full-stack developers out of every million listings advertised on Indeed, the highest share among other jobs. (A full-stack developer builds the front and back ends of a website.)All jobs on the list pay annual salaries that are above the national average. At least 10% of their advertised positions offer remote or hybrid work — an increasingly important metric for American workers, Indeed said.Tech giants announce mass layoffsAmazon CEO Andy JassyDavid Paul Morris | Bloomberg | Getty ImagesThat broad technology roles are poised to be hot in 2023 may seem counterintuitive, at a time when traditional tech giants have announced mass job cuts in recent weeks.Google announced plans Friday to lay off 12,000 people, the biggest reduction in the company's 25-year history. Microsoft said last week it would let go of 10,000 employees through March 31. Amazon said earlier this month it would cut more than 18,000 jobs, the largest in its history. Meta said in November it would cut more than 11,000 roles, 13% of its staff.In some cases, layoffs are an unwinding of overzealous hiring early in the Covid pandemic, and not necessarily a harbinger of broad economic malaise. Meta CEO Mark Zuckerberg and Amazon CEO Andy Jassy alluded to this overextension when explaining the rationale for their respective layoff plans.Company officials are also bracing for a possible U.S. downturn. The Federal Reserve is raising interest rates, hoping higher borrowing costs for consumers and businesses will slow demand across the economy and beat back high inflation.However, labor market indicators don't suggest a recession is imminent, economists said — and, broadly, it's a good time to get a job.Job openings (a barometer of employer demand for workers) and the rate of voluntary departures by workers (a barometer of confidence in being able to find a new job) are near historic highs despite cooling somewhat in recent months. Wage growth is still strong — especially for people switching jobs — and the unemployment rate is around its lowest in five decades.Tech skills are in 'high demand'Tech skills are in "high demand across the economy," Julia Pollak, chief economist at ZipRecruiter, wrote in November. Government agencies, aerospace companies, health systems and retailers are among the employers that "frequently" cite shortages of software engineers, cybersecurity professionals, data analysts and web designers, Pollak said."Had tech companies continued growing at the breakneck 2020-2021 pace, they would have monopolized U.S. tech talent and made it impossible for employers in non-tech industries to hire tech talent," she said. "Now, other industries may stand a chance."Aside from good news for existing tech workers, high demand for technical skills is also a "big sign" of where opportunities exist for those starting or switching careers, Indeed said.Employers are willing to find candidates with skill sets in "nontraditional ways" in the current hot job market, Dobroski said.For example, workers can often acquire some basic tech skills via software engineering boot camps, online courses, or certificate programs that last several weeks or a few months, he said.Currently employed workers, especially those at large companies, may be able to leverage mentorship opportunities and new learning programs in the workplace to acquire different skills or pursue different career paths in-house, Dobroski said.Workers should also consider where their current skills may be able to transfer to another discipline, Dobroski added. Human resources roles, some of which factored among the top 25 best jobs in 2023, may be able to leverage skills from sales and marketing backgrounds, for example, he said. | Tech Giants |
Google’s handling of user data has long been a subject of concern for data privacy enthusiasts. While the tech giant has undergone a comparatively low number of data breaches in recent history, its hold over the Android platform allows them to harvest an unprecedented amount of data. Now, Google is taking more steps to ensure the collection of user data across non-mobile devices as well. Recently, a netizen found that Google has changed their domain structures to include all their services under one parent domain. This means that any permissions given by the user for one google service, such as Google Maps, extend to all Google services under the domain. To understand why this is a serious privacy concern for users, we must first look at how domains work. There are two types of web directory management systems: subdomains and subdirectories. Sign up for your weekly dose of what's up in emerging technology. Subdomains are treated as children of the parent domain, but they exist outside the main domain within a disparate partition. Subdirectories, on the other hand, are treated as part of the main domain as they are nothing but a page under the domain. For instance, Google was previously using a subdomain for Google Maps, as seen by its URL ‘maps.google.com’. Now, they have switched to using a subdirectory, with the URL changing to ‘google.com/maps’. This means that the permission pop-up that appears when a website is trying to access the user’s camera, mic, or location, only needs to be accepted once across Google’s vast range of services. Then, Google can use these permissions for all their services without having to ask the users again. As shown below, the user’s mic can be accessed from the Google search page, with camera permissions being granted from Google Meet. Location access can be granted through Google Maps, and this is likely to allow the search engine to track the user’s location even if they have not specifically given permission for it, or other applications. This skirts the line of legality when it comes to prominent data protection regulations like the GDPR and the American Data Privacy and Protection Act. The GDPR states that the provider’s privacy policy clearly mentions an explanation that the company must request consent for camera and mic access. Moreover, the company must also provide an explanation of their purposes for requesting camera access. India’s new privacy policy, on the other hand, has no legal purview regarding company’s usage of location data. Google’s Privacy Policy does not provide any clarity on these subjects. In addition to this, location data is considered to be personal data under GDPR, with a huge chunk of the regulation being applicable to it. In the Google Chrome Privacy Policy, Google has a section on how it determines users locations and what it uses it for. However, while they specify that they won’t allow a site to access users’ locations without permission, they also state that they send data to Google Location Services to determine the user’s location. This data consists of information on nearby Wi-Fi routers, cell IDs of cell towers close to the user, and the user’s IP address. Any user wishing to use Google Maps for a short stretch of navigation will now be asked to give permission to Google to access their location. Upon providing this permission, Google can access this data at any time due to their new domain structure, allowing them to geo-track the user any time they have a Google website open. Along with Apple’s covert implementation of user tracking, this shows a disturbing trend in the tech sector, where companies are tracking users by operating in grey areas of regulations. Read: Square the Circle: Apple’s Privacy Play Lands It in Trouble… Again The more sinister side of it, however, is the fact that these changes were made without any notification to users, creating another treasure trove of unsupervised surveillance data for tech giants to monetise using advertising. | Tech Giants |
- France is trying to convince Elon Musk to build Tesla's next Gigafactory in the country, Jean-Noel Barrot, the nation's digital minister told CNBC on Wednesday.
- "We have also invested in an ... entire sector of electric batteries, so we will try to convince him that France is the best possible place in Europe to establish the next Tesla factory," Barrot said.
- Barrot nevertheless said Musk's Twitter could face a ban in the EU, if it does not comply with the upcoming Digital Services Act.
PARIS — France is trying to convince Elon Musk to build Tesla's next Gigafactory in the country, the nation's digital minister told CNBC on Wednesday, in the most explicit comments yet that Paris wants the billionaire's investment.
The courtship comes just as the minister threatened the Musk-owned Twitter with a ban, if it does not comply with upcoming European Union regulation.
"It will be great to have a Tesla factory in France, there has been a lot of effort and energy to make sure this is possible and this can happen," Jean-Noel Barrot told CNBC's Charlotte Reed at the Viva Tech conference in Paris.
"We have also invested in an ... entire sector of electric batteries so we will try to convince him that France is the best possible place in Europe to establish the next Tesla factory," Barrot said.
Musk is expected to speak in Paris on Friday at the Viva Tech summit — one of France's flagship technology conferences, where the government will have a large presence. Musk has been on the hunt for a new Gigafactory location, in addition to the company's major car manufacturing plants already present in the U.S., Germany and China.
Barrot praised Musk as a "great inventor, probably one of the greatest of the beginning of this century."
Barrot's attempt to woo Tesla sharply contrasted his fiery words for the billionaire in relation to Twitter.
The minister last month said the social media app would be banned in the EU, if it did not follow the bloc's upcoming Digital Services Act that goes into effect in August. The law will force tech giants, including Twitter, to police illegal content and disinformation on their platforms more aggressively, or risk potential multibillion-dollar fines.
"There will be huge scrutiny by the EU commission … on the actions Twitter is going to take to meet these new obligations. If Twitter fails to comply with these obligations , Twitter will face sanctions of up to 6% of global sales ... In case those failures to comply are not ... corrected, they will face an obligation to leave the EU"
"In the past couple of weeks, what we've seen is not reassuring as to the ability of Twitter to comply with these new rules," Barrot added without specifying what aspects of Twitter policy are not reassuring. | Tech Giants |
The logo of Amazon is seen at the company logistics centre in Boves, France, August 8, 2018. REUTERS/Pascal Rossignol/File PhotoRegister now for FREE unlimited access to Reuters.comJune 21 (Reuters) - Amazon.com Inc (AMZN.O) on Tuesday named Doug Herrington as the head of its consumer business, tasking the 17-year veteran of the online retail giant with leading a bigger push into groceries.Having joined the company from the now defunct online grocer Webvan, Herrington launched AmazonFresh in 2007 and has led the company's North American consumer unit for more than seven years.Amazon, which has shut its bookstores and some other physical retail outlets in the United States, has been focusing on its grocery business amid tough competition from U.S. supermarkets including Walmart Inc (WMT.N) and Kroger (KR.N).Register now for FREE unlimited access to Reuters.comThe company also named John Felton, an 18-year Amazon veteran, as the head of its operations division that focuses on fulfillment and supply chains, as it looks to optimize transfers between its facilities and trim expenses.Amazon in April reported it had excess warehouse and transportation capacity, which cost it about $2 billion in the first quarter. read more Earlier this month, the company announced the departure of Dave Clark, the executive who shaped Amazon into a global delivery behemoth. read more Clark is set to join logistics technology startup Flexport as chief executive in September. read more Amazon shares were up nearly 3% on Tuesday amid a rise in the broader market, led by megacap growth and tech stocks.Register now for FREE unlimited access to Reuters.comReporting by Akash Sriram and Nivedita Balu in Bengaluru; Editing by Aditya Soni and Vinay DwivediOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
Google (GOOGL) suffered one of its biggest setbacks on Wednesday when a top European court fined it 4.125 billion euros ($4.13 billion) for using its Android mobile operating system to thwart rivals, offering a precedent for other regulators to ratchet up pressure. The unit of US tech giant Alphabet had challenged an earlier ruling, but the decision was broadly upheld by the Europe’s second-highest court in Wednesday’s ruling and the fine was reduced only modestly from 4.34 billion euros ($4.34 billion). It is a record fine for an antitrust violation. The European Commission has imposed a total of 8.25 billion euros in antitrust fines on the world’s most popular internet search engine in three investigations stretching back more than a decade. This is the second court defeat for Google which lost its challenge to a 2.42 billion euro ($2.42 billion) fine last year, the first of a trio of cases. “The General Court largely confirms the Commission’s decision that Google imposed unlawful restrictions on manufacturers of Android mobile devices and mobile network operators in order to consolidate the dominant position of its search engine,” the court said. “In order better to reflect the gravity and duration of the infringement, the General Court considers it appropriate however to impose a fine of 4.125 billion euros on Google, its reasoning differing in certain respects from that of the Commission,” judges said. Google, which can appeal on matters of law to the EU Court of Justice, Europe’s highest, voiced its disappointment. “We are disappointed that the Court did not annul the decision in full. Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world,” a spokesperson said. The ruling is a boost for EU antitrust chief Margrethe Vestager following setbacks in cases involving other tech giants such as Intel (INTC) and Qualcomm (QCOM) this year. Vestager has made her crackdown against Big Tech a hallmark of her job, a move which has encouraged regulators in the United States and elsewhere to follow suit. She is currently investigating Google’s digital advertising business, its Jedi Blue ad deal with Meta, Apple’s (AAPL) App Store rules, Meta’s marketplace and data use and Amazon’s (AMZN) online selling and market practices. The Court agreed with the Commission’s assessment that iPhone maker Apple was not in the same market and therefore could not be a competitive constraint against Android. The court backing could strengthen the EU antitrust watchdog in its investigations into Apple’s business practices in the music streaming market where the regulator says the company dominates. FairSearch, whose 2013 complaint triggered the EU case, said the judgment will further strengthen Vestager’s landmark tech rules aimed at curbing US tech giants which will go into force next year. “This victory will embolden the Commission in enforcing its new regulation reigning in Big Tech, the Digital Markets Act,” its lawyer Thomas Vinje said. The Commission in its 2018 decision said Google used Android to cement its dominance in general internet search via payments to large manufacturers and mobile network operators and restrictions. Google said it acted like countless other businesses and that such payments and agreements help keep Android a free operating system, criticizing the EU decision as out of step with the economic reality of mobile software platforms. | Tech Giants |
Generative AI has led to an increase in websites producing low-quality or fake content - and major brands' advertising budgets may be funding them.
The Internet is awash with not only low-quality content, but content that is misleading, misinformation, or completely false.
The availability of generative artificial intelligence (AI) tools such as OpenAI’s ChatGPT and Google’s Bard, meanwhile, has meant AI-generated news and information has added to this tidal wave of content over the past year.
A new analysis from NewsGuard, a company that gives trust ratings to online news outlets, has found the proliferation of this poor quality, AI-generated content is being supported financially thanks to the advertising budgets of major global brands, including tech giants and banks.
The adverts appear to be generated programmatically, so the brands aren’t necessarily choosing to advertise on the websites that NewsGuard dubs "unreliable AI-generated news and information websites (UAINs)".
According to NewsGuard, most of the ads are placed by Google, and they fail to protect the companies’ brand safety - as many legitimate companies don’t want to be seen to be advertising on sites that host fake news, misinformation, or just low-quality content.
NewsGuard, which says it provides "transparent tools to counter misinformation on behalf of readers, brands, and democracies," defines UAINs as websites that operate with little or no human oversight, and publish articles that are written largely or entirely by bots.
Their analysts have added 217 sites to its UAIN site tracker, many of which appear to be entirely financed by programmatic advertising.
Incentivised to publish low-quality content
Because the websites can make money from programmatic advertising, they are incentivised to publish often. One UAIN the company identified - world-today-news.com - published around 8,600 articles in the week of June 9 to June 15 this year. That’s an average of around 1,200 articles a day.
The New York Times, by comparison, publishes around 150 articles a day, with a large staff headcount.
NewsGuard hasn’t named the big brands that are advertising on these low-quality websites, as they do not expect the brands to know their ads are ending up on those sites.
They did say the brands include six major banks and financial-services firms, four luxury department stores, three leading brands in sports apparel, three appliance manufacturers, two of the world’s biggest consumer technology companies, two global e-commerce companies, two US broadband providers, three streaming services, a Silicon Valley digital platform, and a major European supermarket chain.
Many brands and advertising agencies have "exclusion lists" that stop their ads from being shown on unwelcome websites, but according to NewsGuard, these lists aren’t always kept up to date.
In its report, the company behind the Internet trust tool says it contacted Google multiple times asking for comment about its monetisation of the UIAN sites.
Google asked for more context over email, and upon receiving the additional content as of June 25, Google has not replied again.
Google’s ad policies are supposed to prohibit sites from placing Google-served ads on pages that include “spammy automatically-generated content,” which can be AI-generated content that doesn’t produce anything original or of “sufficient value”.
A previous report from NewsGuard this year highlighted how AI chatbots were being used to publish a new wave of fake news and misinformation online.
In their latest research, conducted over May and June this year, analysts found 393 programmatic ads from 141 major brands that appeared on 55 of the 217 UAIN sites.
The analysts were browsing the sites from the US, Germany, France, and Italy.
All of the ads identified appeared on pages that had error messages generated by AI chatbots, which say things such as: "Sorry, as an AI language model, I am not able to access external links or websites on my own".
More than 90 per cent of these ads were served by Google Ads, a platform that brings in billions in revenue for Google each year. | Tech Giants |
- A new unit within the U.K.'s Competition and Markets Authority will be given powers to fine Big Tech firms up to 10% of their global revenues for breaches of competition rules.
- The powers are being granted under the Digital Markets, Competition and Consumers bill, which takes aim at tech companies with annual revenues of at least £25 billion ($31.2 billion) globally, or £1 billion in the U.K.
- The CMA has been at the center of some major Big Tech crackdowns lately.
The U.K. government on Tuesday published a draft bill that would give a newly created division within the independent competition regulator powers to levy huge fines against Big Tech firms for competition abuses, and investigate and block acquisitions with greater speed.
The draft Digital Markets, Competition and Consumers bill will take aim at tech companies with annual revenues of at least £25 billion ($31.2 billion) globally, or £1 billion in the U.K., according to a statement.
The bill will empower the Digital Markets Unit – a new regulatory body within the Competition and Markets Authority that was created in 2020 with a mandate to promote competition and innovation in digital markets – with enhanced enforcement powers regarding Big Tech mergers and acquisitions.
That includes changes to the thresholds for mergers and fines that mean the CMA "can conduct faster and more flexible competition investigations, which identify and stop unlawful anticompetitive conduct more quickly," the CMA said in a separate statement.
The new law, which is set to be unveiled in Parliament on Tuesday, will also give the CMA the ability to impose fines of at least 10% of firms' global annual revenues on firms that breach the rules. The law hasn't yet been approved by lawmakers but is widely expected to receive cross-party support.
The CMA has been at the center of some major Big Tech crackdowns lately. The watchdog has held up Microsoft's $69 billion acquisition of video game publisher Activision Blizzard with an in-depth competition investigation. It previously ordered Facebook to divest the U.S. GIF-making platform Giphy.
Katherine Kirrage, digital competition partner at Osborne Clarke, said it's rare that a competition regulator fines a company the maximum 10% level – but it's the risk to their reputation they should worry about.
"In practice, the maximum 10% threshold is rarely reached in the competition law field and a key point will be understanding how the CMA will calculate consumer law fines," Kirrage said in emailed comments to CNBC.
"If it takes a similar approach of starting with turnover only in the market where the infringement has happened, this takes the focus away from total group turnover and tends to make the eventual fine much lower than the 10% maximum. That said, fines in the millions are common in the competition world."
She added, "Also, it is inherent in the logic of creating these strong sanction powers that they should have a significant deterrent effect on others. The adverse PR impact of a big fine that catches the headlines shouldn't be underestimated – our experience is that businesses worry at least as much about the reputational risk of an infringement as they do about the fines."
The law is intended to crack the dominance of tech giants like Amazon, Microsoft and Apple when it comes to online markets. These companies have faced accusations of limiting competition through a number of ways, including restricting the use of software to certain platforms and using data on their customers to boost their businesses.
On Monday, one particular competition case concerning Apple was dealt a setback when a judge mostly sided with the company in a legal battle with U.S. video game maker Epic Games.
Epic, which had its popular Fortnite game removed from the App Store after introducing a direct payment option that broke Apple's rules, accuses the Cupertino tech giant of harming competition in app distribution and payment processes. | Tech Giants |
MoneyWatch July 19, 2022 / 4:28 PM / MoneyWatch TechWatch: Tech companies upping layoffs TechWatch: Tech companies upping layoffs 03:38 Apple plans to slow hiring and spending in some of its divisions next year as the iPhone maker faces a possible economic slowdown, according to a report in Bloomberg.The news makes Apple the latest technology company to slow hiring plans as tech stocks take a dive. Shares of Apple fell more than 2% after the report on Monday, before regaining its losses on Tuesday as stocks recovered. Apple did not respond to a request for comment from CBS News. The news makes Apple the latest large tech company to pare its spending amid an uncertain market outlook. Last week, Google told workers it would slow hiring for the rest of the year, according to Gizmodo. "Like all companies, we're not immune to economic headwinds," Sundar Pichai, CEO of parent company Alphabet, said in a memo, noting that "we'll be slowing the pace of hiring for the rest of the year, while still supporting our most important opportunities." Microsoft also implemented a small round of layoffs, cutting less than 1% of its 180,000-strong payroll, according to CBNC. While the cuts are small, they're "indicative of a larger rollback or slowdown in tech hiring across the sector," said CBS News tech reporter Dan Patterson.Twitter last week cut 30% of its talent acquisition team. Netflix is laying off workers as it tries to shore up slowing subscriber growth. Smaller tech companies, including Vimeo, TikTok and the NFT platform OpenSea, continue to announce job cuts. The slowdown is a sign that fast-growing and high-spending technology companies, which boomed during the last two years as Americans moved large portions of their lives online, are tightening their belts for a potential downturn. "Technology companies are also cutting workforces as inflation and recession concerns deepen," Andrew Challenger, vice president of outplacement firm Challenger, Gray and Christmas, said in a June report. "Some firms are offering voluntary severance or, as is the case with companies like Meta and Tesla, creating environments where workers may want to quit," he noted. Meta, Facebook's parent, has encouraged team leaders to cut workers they consider low performers, The Information reported, while Tesla CEO Elon Musk has said that corporate workers who aren't in the office at least 40 hours a week will be fired. To be sure, the job market remains tight, with about 1.8 open jobs for every unemployed worker, and payrolls in the tech sector are growing by more than 20,000 a month, according to the Labor Department. Hiring remains strong despite Fed interest rate hikes 04:24 But technology is seen as a bellwether for broader economic trends, since the sector is among the most sensitive to recession worries. Investors in tech need a relatively high risk tolerance, as many startups fail, and those that eventually turn a profit can take years to do so. When the economy is expanding, these investors are often willing to forgo profitability for growth, but that calculus changes when the economy looks less rosy.Such an outlook would affect other tech-adjacent industries, including advertising."Tech giants, ad agencies, and brands are all preparing for an industrywide downturn—but how severe it will be is unclear," Insider Intelligence, a marketing analytics company, wrote on Monday, noting that 1 in 5 marketers has cut spending this year and marketing companies are also announcing layoffs. Thanks for reading CBS NEWS. Create your free account or log in for more features. Please enter email address to continue Please enter valid email address to continue | Tech Giants |
Unexpected allies Apple and Google have joined forces to address Bluetooth tracker stalking, proposing a new industry standard that would enable people to be alerted when an unfamiliar tracker is following them.
The two tech giants announced their collaboration on Tuesday, with the companies submitting a new draft industry specification(opens in a new tab) to standards development organisation Internet Engineering Task Force(opens in a new tab). If implemented, the new specification would allow Bluetooth location tracking devices to work with unauthorised tracking detection tools across both iOS and Android.
So if a malicious person slipped an AirTag into an Android user's bag, their target would still be alerted to it though their phone's unauthorised tracking alerts. Currently, Android users concerned they're secretly being tracked via AirTag need to download a dedicated Apple app that can detect these devices.
This detection would also work with other Bluetooth trackers and other operating systems. While Google doesn't currently have a smart tracker, leaks in January indicated one may be in development.
Bluetooth tracker manufacturers such as Samsung, Tile, and Pebblebee have expressed support for Apple and Google's proposal, according to the statement released by the two companies. The new standards were developed with feedback from such companies, as well as safety and advocacy groups such as The National Network to End Domestic Violence and the Center for Democracy and Technology.
"Bluetooth trackers have created tremendous user benefits but also bring the potential of unwanted tracking, which requires industry-wide action to solve," said Google’s vice president of Engineering for Android Dave Burke in the statement.(opens in a new tab)
"This new industry specification builds upon the AirTag protections, and through collaboration with Google, results in a critical step forward to help combat unwanted tracking across iOS and Android," said Ron Huang, Apple's vice president of Sensing and Connectivity(opens in a new tab).
The Internet Engineering Task Force will accept feedback on Apple and Google's submission for three months, with the proposal expected to be implemented by the end of the year. | Tech Giants |
As San Francisco commercial occupancy reached an all-time low in the last couple years amid the pandemic, a new reality has set in for Silicon Valley.
Major tech players are looking to sell their expansive corporate campuses in the area, or reconsidering new developments.
Intel Corporation — the cloud computing, data center and semiconductor chip manufacturer — is aiming to sell its 505,000-square-foot office at 101-141 Innovation Drive, The Post can confirm.
While a listing price is not publicly available, the building is valued at $193 million, according to The Real Deal.
“As a hybrid-first company, we are continuing to assess and optimize our space utilization to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions,” Addy Burr, with Intel Corporate Communication, told The Post in a statement.
“As such, we will consolidate Intel’s San Jose Innovation Campus with our Santa Clara Mission Campus.”
Comprising four buildings, Intel, in return, is offering a leaseback for approximately 12 to 24 months.
Meanwhile, Analog Devices — specializing in data conversion and signal processing — is also seeking a buyer for its 320,000-square-foot campus in Milpitas, located 15 minutes from the Intel building.
The company is also not publicly disclosing the asking price — however, it’s valued at $32 million, according to TRD.
Made up of five separate buildings, they were built in the 1980s.
The Post has reached out to Analog Devices for comment.
While vacancy rates have contributed to the clearing out of Silicon Valley, the recent events that have transpired with Silicon Valley Bank have continued to shake the industry.
Approximately 21% of SVB’s commercial loans were for office properties.
Investors are still assessing the bank’s takeover by federal regulators, which left its $2.6 billion commercial loan portfolio in a brief limbo.
Luxury condo prices in the heart of downtown San Francisco have plummeted as well, as drug abuse and crime have spiraled out control — and as many techies continue to work remotely.
The median sale price of a two-bedroom condo, for example, has fallen nearly 20% since 2021, while sale prices in surrounding areas have slipped only 7%.
Meanwhile, Google recently announced that it, too, was reconsidering the timeline for its Downtown West project in San Jose that was in the works.
The plan is now expected to take years and could set the precedent for other Downtown plans, where a slew of business shutdowns from the pandemic created the remote work trend.
Last month, Google cut more than 6% of its workforce, which equates to 12,000 jobs.
The company joined other tech giants, including Microsoft and Amazon, that have handed out pink slips during a major slump within the tech sector.
Overall, the office vacancy rate increased from 18.6% to 19% quarter-over-quarter, and the market had 17.2 million square feet of vacant space available.
The end of 2022 marked the 12th consecutive quarter in which the overall vacancy rate has risen, increasing by 9% since the first quarter of 2020, according to a report by Cushman & Wakefield. | Tech Giants |
Apple has set the date for its latest iPhone's debut. The new device, which is expected to be called the iPhone 14 and include an always-on display, will be unveiled on Sept 7 at 10 a.m. PT. The tech giant has also invited press to its headquarters in California for the event, though it's likely to be streamed online as well.As is typical, Apple didn't say much in its invitation about its upcoming iPhone event. The invitation had an Apple logo set against a seeming night's sky, suggesting potential camera improvements or last year's rumored satellite emergency calling. It includes the teaser words, "Far out."In addition to the iPhone 14, Apple's may also use the event to unveil the Apple Watch Series 8, which will reportedly look similar to last year's model, but have more health features such as a fever sensor, as well as improved durability.The new features for both devices may help them stand out from Samsung and other device makers during what is expected to be heightened competition this year. People have already begun cutting back on tech purchases, leading to surprisingly low sales reports from chipmaker Intel, as well as sudden ad business shortfalls for Google parent Alphabet and Facebook parent Meta. And they're not alone.Our collective confidence in the economy has fallen through the floor, thanks to the ongoing coronavirus pandemic mixed with continual inflation and a looming recession. One survey from the University of Michigan finding consumer sentiment is at its lowest point in at least 70 years.That means Apple will have to fight even harder to win over new iPhone owners. Samsung, for its part, made Apple's job a little easier by announcing its flagship Galaxy Z Fold 4 and Galaxy Z Flip 4 at their standard prices of $1,800 and $1,000 respectively earlier this month. It also raised the price of its Galaxy Watch 5 and Galaxy Buds 2 Pro by $30 apiece. Apple so far isn't acting worried. Over the past couple years, Apple's notched its biggest revenue and profits each holiday shopping season, largely on the popularity of 2021's iPhone 13 and 2020's iPhone 12. Apple CEO Tim Cook has previously cited the advanced cameras, long battery life and well-regarded software as reasons people continue choosing iPhones. But he also said 5G, the super-fast wireless technology Apple began using two years ago, is likely to push even more people to upgrade."5G has been an accelerant," he said when speaking to investors on a conference call last month. He added that although the technology is spreading through some places, like China, the EU and US, other parts of the world haven't begun using it as much. And so as 5G expands, he said, "I think there's reason to be optimistic."While the iPhone will be a key product we see at Apple's event this year, and likely what most people focus their attention on, the company's expected to have other devices to show off. Those include new Mac computers with upgraded chips and new iPads. | Tech Giants |
The Galaxy S24 series isn’t too far away, with reports claiming that Samsung wants to launch the iPhone 15 rival even earlier than expected in 2024. We already know plenty of details about the upcoming handset, but the most interesting report might have just dropped.
Like other tech giants, Samsung wants to make the most of generative AI features, and the Galaxy S24 phones should run their own generative AI solution similar to ChatGPT.
Interestingly, Samsung might offer buyers generative AI features that work offline as well as with a connection to the internet. It’s unclear whose AI Samsung might be using or whether it’s been developing its own language model to take on ChatGPT, Google, Meta, and even Apple’s rumored Apple GPT.
Google’s Pixel 8 event had a big AI focus, with Google demoing the early stages of personal AI experiences on Pixel phones. Google is integrating Bard with various apps, and the Pixel 8 gave us an Assistant app with features from Bard. The Pixel devices running Google’s suite of apps are the natural home for Google’s AI.
While Samsung uses Google’s version of Android, it’s unlikely it’ll want to rely on Google’s AI for the Galaxy S24 series and other handsets. Of course, Google would love its Bard and AI search products to run on non-Pixel devices in the years to come.
If Sam Mobile’s information is accurate, Samsung will make a big deal about the AI capabilities of the Galaxy S24, S24 Plus, and S24 Ultra next year.
Again, it’s unclear which language model will power these Galaxy S AI experiences. But the Galaxy S24 series will reportedly deliver features “lifted straight from ChatGPT and Google Bard.” For example, users might be able to generate content with prompted consisting of just a few keywords.
The blog says that Samsung has designed some of the upcoming AI features. Like text-to-image generative AI. Of course, Samsung is the company whose Galaxy flagship phones take fake photos of the moon. Developing generative AI features for images seems like the obvious route here.
The report also says that speech-to-text functionality will see improvements on the Galaxy S24 phones. And, remember Bixby? Samsung’s assistant will reportedly behave more like a generative AI chatbot, offering human-like interactions.
Sam Mobile speculates that Galaxy S24 phones will be faster than the Pixel 8 models thanks to new chips. The S24 series will run on Snapdragon 8 Gen 3 and Exynos 2400 processors.
What’s more important here is the claim that some of Samsung’s generative AI features will run offline. That means the processing will occur on the phone rather than the cloud. And that’s potentially great news for user privacy.
While these are just rumors, I’ll remind you that most Galaxy S leaks turn out to be accurate since Samsung is terrible at keeping things under wraps. Also, like Apple, Samsung can’t afford to miss the AI train.
We should learn more details about Samsung’s ChatGPT rival as we get closer to January. Rumors say Samsung will unveil the Galaxy S24 series on January 18th. | Tech Giants |
Apple prides itself on the security and privacy features iPhone users enjoy. So would you switch from Safari to Chrome on iOS? Google thinks it can convince you to do just that. Can Google convince iOS users to switch from Safari to Chrome? getty Let's face it, there really is no love lost between Apple and Google. This is hardly news, let alone surprising in any way, shape, or form. However, when Google comes out fighting with a statement that there's 'no place like Chrome' for getting things done, and done securely, on your iPhone, my ears perk up a little. This isn't anything to do with the Chrome security update this week, that didn't touch Android users after all, let alone iOS ones. So, what is Google on about? The first clue comes on the same Chrome releases blog where those security updates are announced. Alongside the pure security vulnerability patching stuff, Google also announces various feature Beta releases. On Thursday, June 23, it stated that the 'Chrome Beta 104 for iOS update' had been released and the same day, Nasim Sedaghat, a Google Chrome product manager, posted an official Chrome on iOS product update making that no place like Chrome claim. There's some uncertainty currently if this will be in an update to Chrome 103 or the currently in Beta 104, but a Macworld article says the former and it will be available “in the coming days.” MORE FROM FORBESThis New Hack Swipes iPhone & Android Screens Without Touching ThemBy Davey Winder
Google's enhanced safe browsing comes to iOS
Two of the five features mentioned in this update for the Chrome web browser on the iPhone and iPad were security-specific and sat at the top of the list to emphasize, one assumes, the importance they hold. Firstly, stronger protection from both phishing and malware by way of bringing Google's enhanced safe browsing function to iOS. "When you type your credentials into a website," Sedaghat wrote, "Chrome can warn you if your username and password have been compromised in a third-party data breach." It will then prompt you to change those credentials everywhere you use them, assuming you are ignoring the prudent security advice of not sharing passwords between sites and services. The second security-related feature also involves passwords, in the form of the Google Password Manager for iOS. This can be set up to securely store and autofill passwords for any site or app on your iPhone, he said. Google has a mountain to climb to persuade iPhone users to switch to Chrome
To be honest, with Safari already pre-installed on my iPhone and working in conjunction with other iOS features to ensure my browsing isn't being tracked and my privacy is protected, I'm not sure why I'd change to Chrome. With iOS 16 just around the corner and bringing Apple Passkeys to the party, plus a new feature to do away with CAPTCHA's I think Google may have trouble persuading me, or most iPhone users, to jump ship. MORE FROM FORBESGoogle Confirms New Critical Chrome Security Issue For Windows, Mac & Linux UsersBy Davey WinderFollow me on Twitter or LinkedIn. Check out my website or some of my other work here. | Tech Giants |
Across the tech world this year, layoffs have been rampant. After a surge of hiring during the pandemic, tech giants like Meta, Salesforce and Twitter are cutting back. Industry trackers tally more than 180,000 layoffs in 2022 alone. More layoffs are expected in the coming weeks and months, creating concern about diversity in tech, the stability of foreign workers and the future of the industry as a whole.We at the PBS NewsHour are looking to hear from you. Your responses will be shared with PBS NewsHour staff, and we may use them on PBS NewsHour's broadcast, online and social media platforms. A producer or reporter from our team may be in touch with you. | Tech Giants |
Large data centers contain thousands of servers that all need to be kept cool to run.Photo: Gorodenkoff (Shutterstock)Last Monday, Sacramento reached a scalding high of 113 degrees Fahrenheit, smashing the previous daily record of 108. The same day, a Twitter data center located in the California state capital failed, according to a report from CNN that cites a leaked internal company email.“On September 5th, Twitter experienced the loss of its Sacramento (SMF) datacenter region due to extreme weather. The unprecedented event resulted in the total shutdown of physical equipment in SMF,” Carrie Fernandez, the social media company’s vice president of engineering, wrote in an internal message to Twitter engineers on Friday, according to CNN.The server center outage hasn’t impacted site users, instead it just made Twitter more vulnerable, by taking its back-up data storage offline. But the failure highlights an increasingly worrying vulnerability of tech companies’ in the climate change era. Servers need to stay cool to run properly, but maintaining their temperatures is a costly challenge, especially when they’re located in places like California’s Central Valley.Other tech giants have also recently experienced similar outages. During a heatwave in the United Kingdom earlier this year, both Oracle and Google servers went down. And large scale crypto mining operations in Texas had to reduce operations in July to account for heatwaves and a stressed power grid.Last week’s heatwave was one of the most extreme ever for the West. It brought triple-digit temperatures to almost all of California, and shattered nearly 1,000 heat records. The intense weather taxed the electric grid, and the state only narrowly avoided blackouts (mostly thanks to text blasts that got people to reduce their energy usage). G/O Media may get a commissionBut while the electricity stayed on, Twitter’s servers didn’t. The outage put Twitter in a “non-redundant state,” Fernandez wrote in the staff memo, as reported by CNN. The company has data centers in multiple locations around the country including Atlanta, Georgia and Portland, Oregon, according to the news outlet. Those centers store duplicate data by design, to avoid data loss and total site outages. But as of Friday, Fernandez warned, “if we lose one of those remaining data centers, we many not be able to serve traffic to all of Twitter’s users.”In his whistleblower complaint, Peiter “Mudge” Zatko specifically referenced the vulnerability and “insufficient data center redundancy,” of Twitter’s system. From CNN: “Even a temporary but overlapping outage of a small number of data centers would likely result in the service [Twitter] going offline for weeks, months, or permanently,” according to Zatko’s whistleblower disclosure. (Twitter has criticized Zatko and broadly defended itself against the allegations, saying the disclosure paints a “false narrative” of the company.)Since the Sacramento failure occurred on Monday and the staff memo was sent on Friday, there’ve been at least five days of server disruption. It’s unclear if the data center has been brought back online in the interim, or if the the outage is ongoing.Twitter declined to respond to any of Gizmodo’s questions regarding their data centers. Instead, in an email to Gizmodo, a company spokesperson wrote, “There have been no disruptions impacting the ability for people to access and use Twitter at this time. Our teams remain equipped with the tools and resources they need to ship updates and will continue working to provide a seamless Twitter experience.” | Tech Giants |
(Bloomberg) -- Two decades ago, when Google was emerging as an Internet powerhouse, company officials were developing strategies to combat rivals, and eventually landed on a plan to make its search engine the default tool for as many browsers as possible.
Most Read from Bloomberg
In July 2003, Google Chief Economist Hal Varian warned senior executives in an email that Microsoft Corp.’s plan to include web search in its Windows operating system “poses a serious threat,” according to evidence presented Tuesday by the US Justice Department in a high-stakes antitrust trial in Washington. Varian said the company should consider ways of retaining users as it develops new product ideas.
“Up until now we have mostly evaluated those ideas on the basis of technological merit, value to user, and revenue potential,” Varian said in a memo to company executives. While providing a superior product should remain the top consideration, “we should also consider entry barriers, switching costs, and intellectual property when prioritizing products,” he said.
The US Justice Department, which began its case by calling Varian to testify, said Alphabet Inc.’s Google now maintains a monopoly in online search by paying more than $10 billion a year to tech rivals, smartphone makers and wireless providers in exchange for being set as the preselected option or default on mobile phones and web browsers.
“This case is about the future of the internet and whether Google’s search engine will ever face meaningful competition,” Kenneth Dintzer, a government lawyer, said in his opening statement at the start of the trial Tuesday. “The evidence will show they demanded default exclusivity to block rivals.” Google controls 89% of the search market, he said.
Sign of Dominance
For years, Google employees tracked the company’s share in the search market by four internal metrics as well as data offered by third-party data analytics firms like Comscore Inc. In a sign of how dominant it has become in the past decade, Google executives decided in 2014 to stop publishing the monthly reports because the company no longer needed the data, Varian said Tuesday.
The trial before US District Judge Amit Mehta is the first pitting the federal government against a US technology company in more than two decades. The trial is expected to last 10 weeks. If Mehta decides Google illegally matained its monopoly, the Justice Department may seek remedies in a second phase to break off Alphabet’s search business from other products, like Android and Google Maps, which would mark the biggest forced breakup of a US company since AT&T was dismantled in 1984.
Read More: What’s at Stake in Google Trial on Antitrust Charges
Google argues the company has won market share because it has the best search engine, not because of a lack of competition.
Consumers use Google “because it delivers value to them, not because they have to,” John Schmidtlein, a partner at Williams & Connolly LLP who is representing the company, said during his opening statements. “Users today have more search options and ways to access information online than ever before.”
But in 2007, Google executives were focused on boosting market share by expanding their presence on web home pages, according to an email presented at trial. The email summarized a meeting that included Varian and Sundar Pichai, who was then leading product development and is now Google’s chief executive officer.
On the witness stand, Varian acknowledged the benefits of being the default search engine in any browser.
“In general, having the default is useful,” the chief economist said. “It’s valuable to Yahoo. It’s valuable to Microsoft. It’s valuable to Google.”
Christopher Barton, a former Google employee who helped negotiate the company’s agreements with smartphone makers related to Android, is expected to take the stand Wednesday morning. Varian will then resume his testimony after that.
Read More: Google’s Ties With Apple Under Spotlight in Antitrust Trial
The case is: US v. Google, 20-cv-3010, US District Court, District of Columbia.
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©2023 Bloomberg L.P. | Tech Giants |
Well folks, the AI “revolution” is upon us, and it already seems to be getting out slightly out of hand. Big corporations, spurred by the specter of easy profits, have begun to roll out new tools and products that use artificial intelligence to enhance user experience. Search engines, Hollywood, and media industries all seem to want to jump onboard. Still, this totally unregulated field also has the potential to be hugely disruptive to existing industries, our way of life, art, judicial systems, even your brain. Here are some of the warning signs that the robot revolution could get very, very messy.
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ChatGPT Passes a Coding Exam
ChatGPT Passes a Coding Exam
ChatGPT is apparently smart enough to get hired by Google. NBC recently reported that the tech giant had tested ChatGPT for its coding prowess in the same way that new coder recruits typically are and that it passed with flying colors. “Amazingly ChatGPT gets hired at L3 [level 3] when interviewed for a coding position,” an internal note, divulged by the news outlet, reads. PC Magazine notes that such a position comes with an average annual salary of $183k. Others have similarly tested the chatbot and come away concerned for human coders’ job security.
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A Judge Uses ChatGPT in a Legal Case
A Judge Uses ChatGPT in a Legal Case
Automating our justice system sounds like one of the worst ideas I’ve ever heard. Still, folks are out here saying it. In a recent disturbing development, a judge in Columbia decided to use ChatGPT to render a judicial decision concerning an autistic child’s medical insurance. Judge Juan Manuel Padilla Garcia apparently thought it would be a good idea to use the chatbot to save time during the proceedings. “The arguments for this decision will be determined in line with the use of artificial intelligence (AI),” Garcia wrote in his decision. “What we are really looking for is to optimize the time spent drafting judgments after corroborating the information provided by AI.” Let’s not make this a thing, k?
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Using AI to Write Screenplays
Using AI to Write Screenplays
Multiple new programs and services are now advertising that AI can be used to write screenplays and automate the filmmaking process. For instance, the AI startup Deepmind recently announced the launch of a tool called Dramatron, what it calls a “co-writing” tool. According to its website, Dramatron is supposed to help screenwriters by using “hierarchical story generation for consistency across the generated text. Starting from a log line, Dramatron interactively generates character descriptions, plot points, location descriptions and dialogue...”
Ugh. This offends me on so many different levels that I can’t really even begin to unpack them. I mean, why even write the script at all? Just have a robot write the script and maybe the robot can also watch the finished movie, too, since there’s no point in human endeavor anymore. Suffice it to say, I hope these programs get terminally infected with some sort of malware.
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Using AI to Replace Voice Actors
Using AI to Replace Voice Actors
A recent story from Motherboard shows that the entertainment industry is also trying to automate voice acting. The outlet reports that voice over actors are being asked to sign away the rights to their own voices so that AI programs can be used to create “synthetic” versions of their voices. The outlet reports these new “contractual obligations are just one of the many concerns actors have about the rise of voice-generating artificial intelligence, which they say threaten to push entire segments of the industry out of work.”
Again, why? What is the point of doing this? The benefits of the technology seem minimal to me. Is it that a company can save money by generating huge swaths of bargain-bin voice acting? Let’s just leave that for robots to listen to.
6 / 10
Using AI to Replace Journalists
Using AI to Replace Journalists
What’s more dystopian than a computer program delivering your news for you, news you might have written yourself in a past job? Controversy exploded last month when it came to light that big time tech publication CNET had been quietly publishing droves of financial explainers using their own in-house AI program. Not only were the articles filled with factual inaccuracies, but some had the whiff of plagiarism as well. Maybe it’s not a super smart idea to automate an industry that relies on factual accuracy? Just a thought.
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Enter: the Stock Market
Enter: the Stock Market
Of course, like any flashy new bauble that smells of money, AI is now exciting Wall Street. The Morning Brief writes that the “stock market hype machine” has now descended upon anything with “AI” affixed to its name, meaning that any company whose product can claim marginal relevance to automation is now primed to have a big NASDAQ glowup. As the Brief notes, it’s basically web3 all over again.
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Using AI to Spy on People
Using AI to Spy on People
You know what’s a really horrifying thought? Pairing surveillance systems with artificial intelligence to create super smart spying apparatuses. Yeah, that doesn’t sound very good. Unfortunately, Wired recently reported that, in Russia, AI is being integrated into massive networks of security cameras to create cities where “there is no place to hide.” Charming! Can’t wait for the U.S. edition.
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Introducing: the AI Arms Race
Introducing: the AI Arms Race
The AI “arms race” commences. Silicon Valley is looking to capitalize on AI’s big moment, and every tech Goliath worth its salt is feverishly looking to churn out a new product to keep pace with ChatGPT’s 100 million users. Microsoft kicked things off nicely earlier this month with its integration of ChatGPT into Bing, with Microsoft CEO Satya Nadella proclaiming, “The race starts today.” The OG tech giant says it wants to use the chatbot to “empower people to unlock the joy of discovery,” whatever that means. Not to be outdone, Google announced that it would be launching its own AI search integration, dubbed “Bard” (Google’s tool already made a mistake upon launch, costing the company a stock slump). In China, meanwhile, the tech giants Alibaba (basically the Chinese version of Amazon) and Baidu (Chinese Google) recently announced that they would also be pursuing their own respective AI tools.
Do the people actually want an AI “revolution”? It’s not totally clear but whether they want it or not, it’s pretty clear that the tech industry is going to give it to them. The robots are coming. Prep accordingly!
10 / 10 | Tech Giants |
Chatbots aren't new. They've existed in some form since as far back as the 1960s. But there's something special about ChatGPT, the conversational chatbot that's captivated investors, tech giants and the public since its November debut. The internet already abounds with ideas for how to put ChatGPT's human-like dialogue to use, from creating custom chatbots to help fight traffic tickets to creating workout and diet plans.The bigger question, however, is whether ChatGPT (or more accurately, the tech that powers it) will have the same sweeping influence as other breakthrough technologies of our generation, like the iPhone, Google search and Amazon Alexa. It'll likely be years before we have an answer to that question. But in 2023, artificial intelligence experts expect to see a wave of new products, apps and services powered by the tech behind ChatGPT. It could change the way we interact with customer service chatbots, voice-enabled virtual assistants like Alexa or Siri, search engines and even your email inbox."I would say, within six months or so, we're going to see a huge step-up in the conversational capabilities of chatbots and voice assistants," said Oren Etzioni, adviser and board member of the Allen Institute for Artificial Intelligence. ChatGPT's potential impact on the way we work is already dominating headlines in 2023. Greg Brockman, president and co-founder of OpenAI, said in a Jan. 10 tweet that a professional paid version of ChatGPT with faster performance is in the works. Microsoft, an investor in ChatGPT's creator OpenAI, is reportedly looking to incorporate the tech into Bing, Outlook, Word and PowerPoint, according to reports from The Information. The New York City Department of Education has blocked access to ChatGPT on school devices over "concerns about negative impacts on student learning." And OpenAI is discussing a tender offer that would value the company at about $29 billion, potentially making it one of the most valuable US startups, according to The Wall Street Journal. "There's a hype cycle to things, and obviously this has captured the imagination right now," said Michael Chui, a partner at the McKinsey Global Institute. "But behind a hype cycle often [are] advancements that eventually get embedded into real use cases in business. And that has already begun."ChatGPT: What it is and how it worksChatGPT is a free chatbot that's available online as a research preview, which OpenAI says will allow the system to learn from real-world use. You can ask ChatGPT straightforward queries like "Show me healthy dinner ideas" or "What's the best way to answer the 'tell me about yourself' question in a job interview?" But ChatGPT can also do things like write poems, songs and essays. You can ask it to compose a holiday greeting card, organize your to-do list and even draft a resignation letter.The AI is trained on large volumes of data from the internet written by humans, including conversations. But ChatGPT isn't connected to the internet, so it sometimes produces incorrect answers and has limited knowledge. ChatGPT's surprisingly humanlike prose and confidence when answering questions have made it an overnight hit. The software crossed 1 million users in its first five days, Brockman said on Twitter in early December. "They do things that many of us would react [with] 'Oh those are the kinds of things that we expect people to do,'" said Chui in reference to ChatGPT and other programs that use similar AI methods to generate artwork, like OpenAI's Dall-E.Better chatbots and more helpful office tools There are plenty of one-off examples of how ChatGPT is already being used to help with everyday tasks like creating grocery lists and bedtime stories, as my colleague David Lumb wrote in December. What's less clear is how and if the tech powering ChatGPT will play a broader role in the apps and services we use every day. The chatbot industry is one of the biggest areas experts are predicting will see an impact, particularly when it comes to customer service agents. Ada, a company that offers AI-powered customer service tools to businesses like Meta, Square and Verizon, already uses GPT-3, a version of the language model that powers ChatGPT. On Dec. 20, Ada announced that it will deepen the use of OpenAI's technology in its products. In the future, everyday voicebots like Alexa and Siri may benefit from the technology, too."You don't need to run ChatGPT just to say 'Set my alarm for 5 p.m.,'" said Etzioni. "But the future of these voice assistants is definitely to have much more powerful conversational abilities."Forget Clippy. Microsoft may be working on a much better office assistant, according to The Information. Microsoft Another promising role for ChatGPT is as a next-generation office assistant. Experts see potential in the technology for everything from helping to write code, draft emails and assemble job descriptions. Companies like Jasper and Unbounce already offer AI-powered copywriting tools that use GPT-3 for generating taglines, social media copy, emails and product descriptions. Microsoft reportedly wants to incorporate the AI model behind ChatGPT into Outlook so that it can fetch accurate search results from your inbox even if you don't type the correct keywords, according to The Information. The company has also reportedly discussed using OpenAI's software to create chatbots inside Word and Outlook that could write content after being fed a prompt, the report says.Microsoft has also been exploring how AI can speed up the code writing process with a product called Github Copilot, which can suggest individual lines of code and whole functions using an AI model from Open AI called OpenAI Codex."I think in the domain of code, ChatGPT will also be potentially a game changer," said Yoon Kim, a professor at the Massachusetts Institute of Technology. Asking a chatbot to fix a coding error would be much easier than Googling a question and searching for similar answers, which Kim says is typically the process most coders go through when encountering an issue. More conversational search resultsChatGPT's ability to surface information in a conversational way has sparked comparisons to search, leading some to question whether similar tools will eventually supplant Google. Even after spending just a few minutes using ChatGPT, it's easy to understand why. Similar to a search engine, ChatGPT can answer questions like "How do I get rid of fruit flies?" and "Which family is most powerful in Game of Thrones?" Instead of serving up a selection of article snippets and links, ChatGPT provides a simple answer, complete with steps as shown below.ChatGPT can provide conversational answers to questions, but its knowledge is limited to the data it's been trained on. Screenshot via Lisa Eadicicco/CNET ChatGPT may accomplish some similar tasks as a search engine, but it's much more limited in its current form since it can't crawl the web for answers. So if you ask it a question like "What are the best movies on Netflix right now?" you'll get an answer like the one below. ChatGPT's knowledge is limited. Screenshot via Lisa Eadicicco/CNET But that doesn't mean tech giants aren't thinking about how to incorporate it into search engines. Microsoft is preparing to launch a version of Bing that uses the AI behind ChatGPT to help deliver more conversational answers to some search queries, reports The Information. The feature could arrive before the end of March. Since ChatGPT can't browse the web, it would likely be used to improve the way search results are presented to users, according to the report. You.com, a search engine that launched in 2021, also began offering a ChatGPT-like chatbot on its website in late 2022. Google management issued a "code red" in response to ChatGPT's release, according to The New York Times. Teams within the company have been reassigned to work on AI tools between now and the company's expected conference in May, says the report. Google also has its own language model called LaMDA, which made headlines this summer when former engineer Blake Lemoine publicly voiced concerns about the technology achieving sentience. (In a statement to The Washington Post, Google said there was no evidence to support Lemoine's claims.) ChatGPT's colloquial nature is also similar to the approach Google has taken with its search engine and voice assistant. What started as a list of blue links has evolved into a tapestry of information panels, snippets and image carousels meant to answer questions directly before users even tap a link. It's easy to see how serving up conversational answers to queries just like ChatGPT does would make Google's search results even more efficient. As the Google Assistant has become more conversational, it's learned new tasks over the past four years, like the ability to wait on hold and book restaurant reservations on your behalf.But it'll likely be a long time before a chatbot like ChatGPT can provide results that are as accurate and trustworthy as Google's. What we're more likely to see is some type of hybrid system that combines traditional search results with the conversational presentation of ChatGPT, according to Kim, the MIT professor."It can craft a fluid natural language answer using the results from the search engine, but also display the sources that it used to craft the answer," said Kim. That sounds similar to the Bing features Microsoft is said to be working on. Concerns about ChatGPT's limitations and accuracy But for all the potential that ChatGPT holds, there are almost just as many concerns, the biggest of which centers on the fact that ChatGPT isn't always correct. OpenAI has been upfront about ChatGPT's shortcomings, saying on its website that ChatGPT sometimes "writes plausible-sounding but incorrect or nonsensical answers." OpenAI also cautions that ChatGPT has limited knowledge of events after 2021 and should not be used for advice. Stack Overflow, the question and answer site for programmers, temporarily banned answers written by ChatGPT and GPT because the rate of getting a correct answer was too low. "Eventually the hard questions are going to come up," said Jennifer King, privacy and data policy fellow at Stanford's Institute for Human-Centered Artificial Intelligence. "And some of those hard questions are going to be around, how are you able to tell when it's telling the truth?" There's also the issue of people using the technology in nefarious ways. The New York City Department of Education restricted access to ChatGPT on school devices amid concerns over cheating. OpenAI's technology is already being used by hackers to develop malicious tools, according to security software provider Check Point Research. "I guess it's a question of how risky companies see a tool like this, and whether they think that that risk can be constrained," King said when asked about how quickly companies will incorporate tools like ChatGPT into their products.ChatGPT may be good at crafting answers, but its rapid rise has only resulted in more questions. What will happen when the research preview is over? How will OpenAI and other companies that use the technology address the concerns mentioned above? Is this an iPhone moment for conversational AI? The answers will come in time -- and sooner rather than later. "We are already seeing a number of new apps," said Etzioni. "But really within six months as opposed to five years or three years, we're going to see a lot more." | Tech Giants |
The European Commission has officially confirmed which tech companies, and which of their services, count as “gatekeepers” under its strict new Digital Markets Act (DMA). The companies listed all appeared on a provisional list released in early July, and mostly consist of American tech giants. There’s Alphabet, Amazon, Apple, Meta, and Microsoft from the US, plus ByteDance from China. 22 core platform services provided by gatekeepers must now comply with the DMA’s obligations by March 6th, 2024.
Broadly, the DMA is the EU’s attempt to rein in the market power of Big Tech by opening up entrenched platforms and curbing ecosystem lock-in and anti-competitive behavior, making them compete on the merits of their products and services alone. Major messaging apps will have an obligation to make themselves interoperable with competitors, for example, while operating systems will need to be designed to offer third-party app stores and allow developers to offer alternative in-app payment options.
Here’s the full list of core platform services, as announced by the European Commission today:
- Social Networks: TikTok, Facebook, Instagram, LinkedIn
- N-IICS (aka messaging services): WhatsApp, Messenger
- Intermediation: Google Maps, Google Play, Google Shopping, Amazon Marketplace, Apple’s App Store, Meta Marketplace
- Video Sharing: YouTube
- Advertising services: Google, Amazon, Meta
- Web Browsers: Chrome, Safari
- Search: Google Search
- Operating Systems: Android, iOS, Windows
Samsung, which appeared on the previous list, successfully argued that it does not meet the threshold for being a gatekeeper with its internet browser.
Likewise Microsoft’s Bing search engine, Edge browser, and advertising service are not on the list, but the Commission says it’s opening market investigations to assess whether they meet the bar for regulation. The same is true of Apple’s iMessage service. The Commission has said these investigation will take no more than five months, but could result in Apple being forced to make iMessage interoperable with competing services upon request. It’s also investigating whether iPadOS should be designated as a gatekeeper in an investigation set to last no longer than a year.
The exact rules companies will have to obey depend on which of their services the commission has deemed to hit its bar for regulation (it calls these “core platform services”). Meta’s Instagram and Facebook are set to be regulated as online social networking services, for example, while Google Search will be regulated as a search engine and Microsoft’s Windows will be regulated as an operating system.
The DMA uses several criteria to determine whether a company and its service should be designated as a gatekeeper, including whether a company has an annual turnover of over €7.5 billion (around $8 billion) in Europe and a market cap of over €75 billion (around $80.5 billion), and whether a service has over 45 million monthly active users in the EU.
Meanwhile the likes of Google Search (and Bing, if it ends up being included) will have to give their users a choice of other search engines, while operating system providers will need to offer the ability to uninstall pre-installed apps and change system defaults like virtual assistants and web browsers. Gatekeepers will be banned from self-preferencing their own products and services compared to other companies on their platforms. The commission has put out a pretty extensive FAQ listing all the obligations.
If designated gatekeepers don’t comply with the DMA’s rules, the Commission can impose fines of up to 10 percent of a company’s total worldwide turnover, or as much as 20 percent for repeat offenders. The Commission can even impose structural remedies, like forcing a gatekeeper to sell part of its business.
Although today’s announcement is a significant step towards implementing the DMA, the process is far from over. The FT previously noted that the commission is bracing itself for legal challenges over the rules, similar to what we’ve seen with Amazon and German retailer Zalando challenging the EU over their designations as “very large online platforms” under the Digital Services Act (DSA). | Tech Giants |
FILE – In this Feb. 14, 2019, file photo, people stand in the lobby for Amazon offices in New York. Amazon shareholders on Wednesday, May 25, 2022 voted down a proposal calling for an independent audit of working conditions at the e-commerce behemoth’s warehouses. (AP Photo/Mark Lennihan, File) Amazon will begin delivering orders in a California city by drone later this year, the company announced Monday. The trial in Lockeford, Calif., will be the first time a company uses drones for deliveries in the U.S. Amazon is planning to use the project to test out the service and receive feedback. Residents of the city, roughly 40 miles south of Sacramento, will be able to sign up for free drone delivery. “Lockeford residents will soon have access to one of the world’s leading delivery innovations,” said California State Assemblyman Heath Flora, whose district includes Lockeford. “It’s exciting that Amazon will be listening to the feedback of the San Joaquin County community to inform the future development of this technology.” The Federal Aviation Administration gave Amazon approval to fly drones in 2020. Amazon’s press release on the pilot program touts the initiative as way to address the challenge of how to get items “to customers quickly, cost-effectively, and—most importantly—safely, in less than an hour?” Amazon already offers its many of its Prime customers same day delivery on over 3 million items in the marketplace. Tags Amazon California drones | Tech Giants |
The EU has issued a warning to Elon Musk to comply with sweeping new laws on fake news and Russian propaganda, after X, formerly known as Twitter, was found to have the highest ratio of disinformation posts of all large social media platforms.
Facebook was the second worst offender, according to the first ever report recording posts that will be deemed illegal across the EU under the Digital Services Act (DSA), which came into force in August.
However, Facebook and other tech giants, including Google, TikTok and Microsoft, have signed up to the code of practice the EU drew up to ensure they could get ready in time to operate within the confines of the new laws.
Twitter left the code of practice but it is obliged under the new law to comply with the rules or face a ban across the EU.
“Mr Musk knows he is not off the hook by leaving the code of practice,” said the European commissioner Věra Jourová, who is responsible for the implementation of the new anti-disinformation code.
“There are obligations under the hard law. So my message for Twitter/X is you have to comply. We will be watching what you do.”
The 200-page report is an account of the work the large platforms have done in the first six months of 2023 to prepare for compliance with the new law and lifts the lid on the behind-the-scenes efforts made by Facebook and others to crack down on Russian propaganda, hate speech and other disinformation.
“The Russian state has engaged in the war of ideas to pollute our information space with half truth and lies to create a false image that democracy is no better than autocracy,” said Jourová.
YouTube, owned by Google, told the EU it had removed more than “400 channels involved in coordinated influence operations linked to the Russian-state sponsored Internet Research Agency”.
Google also removed advertising from almost 300 sites linked to “state-funded propaganda sites” .
Meta, the report says, expanded its fact-checking to 26 partners covering 22 languages in the EU, now also including Czech and Slovak.
The EU is particularly concerned about continued Russian propaganda in social media before key elections in Slovakia on Sunday and in Poland on 15 October.
TikTok, which was recently fined €345m (£300m) for breaching data protection rules concerning children, is also working to comply with the DSA.
Its factchecks cover Russian, Ukrainian and 17 other languages and a new partnership with the Reuters news agency.
The report said that through this network it checked 832 videos related to the war in Ukraine of which 211 were removed.
Microsoft, another participant in the code of practice, told the EU it had either promoted information or downgraded questionable information in relation to 800,000 search queries about the war in Ukraine.
Jourová said the report was evidence that Russia was engaged in a “war of ideas” and that Kremlin disinformation was still very prevalent across the large platforms.
She said the Kremlin had chosen Slovakia more than Poland as “fertile soil” for division and interference with democracy.
She said one of her main messages to the large platforms was to be aware of elections, including those for the European parliament next year, and the “risk of disinformation”.
She said the Kremlin propaganda was “a multimillion-euro weapon of mass manipulation aimed both internally at the Russians as well as Europeans and the rest of the world. And we must address this. The very large platforms must address this risk.”
The war in Ukraine was the most frequent topic for propaganda but the platforms also reported hate speech in relation to migration, LBGTQ+ communities and the climate crisis.
“I think it is one of the advantages of disinformation, is that they are so predictable,” said Jourová, , making it easier for factcheckers to find.
On Twitter, she said “disinformation actors were found to have significantly more followers than their non-disinformation counterparts and tend to have joined the platform more recently than non-disinformation users”. | Tech Giants |
People stand in front of a sign of Alibaba Group during the World Artificial Intelligence Conference, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 1, 2022. REUTERS/Aly SongSHANGHAI, Oct 10 (Reuters) - Shares in Chinese tech giants Alibaba Group (9988.HK) and Tencent (0700.HK) as well as in chipmakers slumped on Monday, following the latest U.S. crackdown on China's chipmaking industry to slow Beijing's technological and military advances.The Biden administration published a sweeping set of export controls on Friday, including a measure to cut China off from certain semiconductor chips made anywhere in the world with U.S. equipment.The rules include blocking shipments of a broad array of chips for use in Chinese supercomputing systems that nations around the world rely on to develop nuclear weapons and other military technologies.Register now for FREE unlimited access to Reuters.comSome industry experts say the ban could also hit commercial data centers at Chinese tech giants.Shares in Alibaba and Tencent dropped 3.3% and 1.7%, respectively, by 0258 GMT on Monday.An index measuring China's semiconductor firms (.CSIH30184) tumbled nearly 6%, and Shanghai's tech-focused board STAR Market (.STAR50) declined 3.6%.The raft of measures could amount to the biggest shift in U.S. policy toward shipping technology to China since the 1990s. If effective, they could hobble China's chip manufacturing industry by forcing American and foreign companies that use U.S. technology to cut off support for some of China's leading factories and chip designers.China's Semiconductor Manufacturing International Corp (SMIC) (0981.HK) dropped 3.8%, NAURA Technology Group Co (002371.SZ) sank 10% by the daily limit, and Hua Hong Semiconductor Ltd (1347.HK) plunged 9.5%.Citi analysts said in a note that the U.S. restrictions could make development of China's advanced chip technologies even more challenging."(But) they should increase Chinese semiconductor companies’ propensity to purchase domestic equipment, especially for mature technology nodes, due to supply-chain security," the note said.Register now for FREE unlimited access to Reuters.comReporting by Jason Xue and Josh Horwitz; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
Seven companies, mostly made up of American tech giants, have notified the European Commission that they meet the criteria to be classified as "gatekeepers" under the Digital Markets Act (DMA). Alphabet, Amazon, Apple, TikTok owner ByteDance, Meta, Microsoft and Samsung have declared that they meet the thresholds the EU set when it passed the new law. According to Reuters, Booking.com also expects to meet gatekeeper status by the end of the year and will notify authorities by then.
Gatekeepers are companies with an annual turnover in Europe of at least €7.5 billion (US$8.16 billion) in the last three financial years or those with a fair market value of at least €75 billion (US$81.6 billion) in the last financial year in at least three member states of the EU. They must also have served more than 45 million monthly active end users and more than 10,000 yearly active business users in the EU over the last three years. These criteria were designed to include the biggest players in the field, since as the law's name indicates, it's meant to cover large online platforms that act as "gatekeepers" in digital markets.
Under the DMA, gatekeepers will be prohibited from favoring their own services over their rivals' and from locking users into their ecosystem. They must allow third parties to interoperate with their own services. They must also allow business users to promote their products/services and "conclude contracts with their customers outside the gatekeepers' platform." In Google's and Apple's case, that means they can't prevent developers from using a different payment systems other than their own. The companies can't prohibit users from removing pre-installed apps or from sideloading apps from outside sources, as well. That will mean huge changes for Apple, in particular, whose ecosystem has been designed as a "walled garden" for the longest time. In December last year, Bloomberg reported that Apple was preparing to allow third-party app stores and sideloading with the release of iOS 17.
All gatekeepers will have to comply with all aspects of the DMA in 2024. For now, European authorities will be reviewing the submissions and will be designating the gatekeepers for specific platform services by September 6th.
7 companies have notified the 🇪🇺 Commission that they meet the #Gatekeepers thresholds under the Digital Markets Act (#DMA):— Thierry Breton (@ThierryBreton) July 4, 2023
Alphabet
Amazon
Apple
ByteDance
Meta
Microsoft
Samsung
🔜 Following our review process, official designation will be announced no later than 6 September pic.twitter.com/1qr5Scly0S | Tech Giants |
- Google parent Alphabet's market capitalization topped $1.5 trillion at Tuesday's closing bell.
- It's the first time since May 2022 that the tech giant has traded at that valuation.
- Alphabet, Apple, Microsoft, and Amazon are the four trillion-dollar US-listed companies.
Google parent Alphabet's market capitalization hit $1.5 trillion for the first time in a year Tuesday, with the tech stock's AI-fueled rally lifting it back into an exclusive club.
Shares jumped nearly 3% to trade at just under $120 at the closing bell, lifting the Mountain-View, California-based company's total valuation to $1.521 trillion.
It's the first time since May 2022 that Alphabet has been worth that much, according to data from CompaniesMarketCap.
The stock has rallied 35% so far this year after a dismal 2022 where it shed nearly two-fifths of its total value.
Alphabet has jumped 10% since it announced its artificial intelligence tool Bard on February 8 – even though a gaffe made by the chatbot in a promotional video wiped out $100 billion in market cap in a single day.
Techs have started 2023 on a tear with the rise of ChatGPT encouraging investors to pile into AI-adjacent stocks, with Nasdaq Composite up 18% year-to-date.
The sector has also benefited from traders' expectation that the Federal Reserve will soon pause its war on inflation. Fixed interest rates mean high-growth companies can borrow money at a set rate, boosting the future cash flows that make up a core part of their valuations.
Alphabet is one of three $1.5 trillion US-listed companies, alongside fellow Big Tech giants Apple and Microsoft. Amazon is the only other firm with a $1 trillion market capitalization, per CompaniesMarketCap data. | Tech Giants |
If you live in Russia, there’s no avoiding Yandex. The tech giant—often referred to as “Russia’s Google”—is part of daily life for millions of people. It dominates online search, ride-hailing, and music streaming, while its maps, payment, email, and scores of other services are popular. But as with all tech giants, there’s a downside of Yandex being everywhere: It can gobble up huge amounts of data.In January, Yandex suffered the unthinkable. It became the latest in a short list of high-profile firms to have its source code leaked. An anonymous user of the hacking site BreachForums publicly shared a downloadable 45-gigabyte cache of Yandex’s code. The trove, which is said to have come from a disgruntled employee, doesn’t include any user data but provides an unparalleled view into the operation of its apps and services. Yandex’s search engine, maps, AI voice assistant, taxi service, email app, and cloud services were all laid bare.The leak also included code from two of Yandex’s key systems: its web analytics service, which captures details about how people browse, and its powerful behavioral analytics tool, which helps run its ad service that makes millions of dollars. This kind of advertising system underpins much of the modern web’s economy, with Google, Facebook, and thousands of advertisers relying on similar technologies. But the systems are largely black holes.Now, an in-depth analysis of the source code belonging to these two services, by Kaileigh McCrea, a privacy engineer at cybersecurity firm Confiant, is shedding light on how the systems work. Yandex’s technologies collect huge volumes of data about people, and this can be used to reveal their interests when it is “matched and analyzed” with all of the information the company holds, Confiant’s findings say.McCrea says the Yandex code shows how the company creates household profiles for people who live together and predicts people's specific interests. From a privacy perspective, she says, what she found is “deeply unsettling.” “There are a lot of creepy layers to this onion,” she says. The findings also reveal that Yandex has one technology in place to share some limited information with Rostelecom, the Russian-government-backed telecoms company.Yandex’s chief privacy officer, Ivan Cherevko, in detailed written answers to WIRED’s questions, says the “fragments of code” are outdated, are different from the versions currently used, and that some of the source code was “never actually used” in its operations. “Yandex uses user data only to create new services and improve existing ones,” and it “never sells user data or discloses data to third parties without user consent,” he says.However, the analysis comes as Russia’s tech giant is going through significant changes. Following Russia’s full-scale invasion of Ukraine in February 2022, Yandex is splitting its parent company, based in the Netherlands, from its Russian operations. Analysts believe the move could see Yandex in Russia become more closely connected to the Kremlin, with data being put at risk.“They have been trying to maintain this image of a more independent and Western-oriented company that from time to time protested some repressive laws and orders, helping attract foreign investments and business deals,” says Natalia Krapiva, tech-legal counsel at digital rights nonprofit Access Now. “But in practice, Yandex has been losing its independence and caving in to the Russian government demands. The future of the company is uncertain, but it’s likely that the Russia-based part of the company will lose the remaining shreds of independence.”Data HarvestingThe Yandex leak is huge. The 45 GB of source code covers almost all of Yandex’s major services, offering a glimpse into the work of its thousands of software engineers. The code appears to date from around July 2022, according to timestamps included within the data, and it mostly uses popular programming languages. It is written in English and Russian, but also includes racist slurs. (When it was leaked in January, Yandex said this was “deeply offensive and completely unacceptable,” and it detailed some ways that parts of the code broke its own company policies.)McCrea manually inspected two parts of the code: Yandex Metrica and Crypta. Metrica is the firm’s equivalent of Google Analytics, software that places code on participating websites and in apps, through AppMetrica, that can track visitors, including down to every mouse movement. Last year, AppMetrica, which is embedded in more than 40,000 apps in 50 countries, caused national security concerns with US lawmakers after the Financial Times reported the scale of data it was sending back to Russia.This data, McCrea says, is pulled into Crypta. The tool analyzes people’s online behavior to ultimately show them ads for things they’re interested in. More than 300 “factors” are analyzed, according to the company’s website, and machine learning algorithms group people based on their interests. “Every app or service that Yandex has, which is supposed to be over 90, is funneling data into Crypta for these advertising segments in one form or another,” McCrea says.Some data collected by Yandex is handed over when people use its services, such as sharing their location to show where they are on a map. Other information is gathered automatically. Broadly, the company can gather information about someone’s device, location, search history, home location, work location, music listening and movie viewing history, email data, and more.The source code shows AppMetrica collecting data on people’s precise location, including their altitude, direction, and the speed they may be traveling. McCrea questions how useful this is for advertising. It also grabs the names of the Wi-Fi networks people are connecting to. This is fed into Crypta, with the Wi-Fi network name being linked to a person’s overall Yandex ID, the researcher says. At times, its systems attempt to link multiple different IDs together.“The amount of data that Yandex has through the Metrica is so huge, it's just impossible to even imagine it,” says Grigory Bakunov, a former Yandex engineer and deputy CTO who left the company in 2019. “It's enough to build any grouping, or segmentation of the audience.” The segments created by Crypta appear to be highly specific and show how powerful data about our online lives is when it is aggregated. There are advertising segments for people who use Yandex’s Alice smart speaker, “film lovers” can be grouped by their favorite genre, there are laptop users, people who “searched Radisson on maps,” and mobile gamers who show a long-term interest.McCrea says some categories stand out more than others. She says a “smokers” segment appears to track people who purchase smoking-related items, like e-cigarettes. While “summer residents” may indicate people who have holiday homes and uses location data to determine this. There is also a “travelers” section that can use location data to track whether they have traveled from their normal location to another—it includes international and domestic fields. One part of the code looked to pull data from the Mail app and included fields about “boarding passes” and “hotels.”Some of this information “doesn’t sound that unusual” for online advertising, McCrea says. But the big question for her is whether creating personalized adverting is a good enough reason to collect “this invasive level of information.” Behavioral advertising has long followed people around the web, with companies hoovering up people’s data in creepy ways. Regulators have failed to get a grip on the issue, while others have suggested it should be banned. “When you think about what else you could do, if you can make that kind of calculation, it's kind of creepy, especially in Russia,” McCrea says. She suggests it is not implausible to create segments for military-aged men who are looking to leave Russia.Yandex’s Cherevko says that grouping users by interests is an “industry standard practice” and that it isn’t possible for advertisers to identify specific people. Cherevko says the collection of information allows people to be shown specific ads: “gardening products to a segment of users who are interested in summer houses and car equipment to those who visit gas stations.” Crypta analyzes a person’s online behavior, Cherevko says, and “calculates the probability” they belong to a specific group.“For Crypta, each user is represented as a set of identifiers, and the system cannot associate them with a natural person in the real world,” Cherevko claims. “This kind of set is probabilistic only.” He adds that Crypta doesn’t have access to people’s emails and says the Mail data in the code about boarding passes and hotels was an “experiment.” Crypta “received only de-identified information about the category from Mail,” and the method has not been used since 2019, Cherevko says. He adds that Yandex deletes “user geolocation” collected by AppMetrica after 14 days.While the leaked source code offers a detailed view of how Yandex’s systems may operate, it is not the full picture. Artur Hachuyan, a data scientist and AI researcher in Russia who started his own firm doing analytics similar to Crypta, says he did not find any pretrained machine learning models when he inspected the code or references to data sources or external databases of Yandex’s partners. It’s also not clear, for instance, which parts of the code were not used.McCrea’s analysis says Yandex assigns people household IDs. Details in the code, the researcher says, include the number of people in a household, the gender of people, and if they are any elderly people or children. People’s location data is used to group them into households, and they can be included if their IP addresses have “intersected,” Cherevko says. The groupings are used for advertising, he says. “If we assume that there are elderly people in the household, then we can invite advertisers to show them residential complexes with an accessible environment.”The code also shows how Yandex can combine data from multiple services. McCrea says in one complex process, an adult’s search data may be pulled from the Yandex search tool, AppMetrica, and the company’s taxi app to predict whether they have children in their household. Some of the code categorizes whether children may be over or under 13. (Yandex’s Cherevko says people can order taxis with children’s seats, which is a sign they may be “interested in specific content that might be interesting for someone with a child.”)One element within the Crypta code indicates just how all of this data can be pulled together. A user interface exists that acts as a profile about someone: It shows marital status, their predicted income, whether they have children, and three interests—which include broad topics such as appliances, food, clothes, and rest. Cherevko says this is an “internal Yandex tool” where employees can see how Crypta’s algorithms classify them, and they can only access their own information. “We have not encountered any incidents related to access abuse,” he says.Government InfluenceYandex is going through a breakup. In November 2022, the company’s Netherlands-based parent organization, Yandex NV, announced it will separate itself from the Russian business, following Russia’s invasion of Ukraine. Internationally, the company, which will change its name, is planning to develop self-driving technologies and cloud computing, while divesting itself from search, advertising, and other services in Russia. Various Russian businessmen have been linked to the potential sale. (At the end of July, Yandex NV said it plans to propose its restructuring to shareholders later this year.)While the uncoupling is being worked out, Russia has been trying to consolidate its control of the internet and increasing censorship. A slew of new laws requires more companies and government services in the country to use home-grown tech. For instance, this week, Finland and Norway’s data regulators blocked Yandex’s international taxi app from sending data back to Russia due to a new law, which comes into force in September, that will allow the Federal Security Service (FSB) access to taxi data.These nationalization efforts coupled with the planned ownership change at Yandex are creating concerns that the Kremlin may soon be able to use data gathered by the company. Stanislav Shakirov, the CTO of Russian digital rights group Roskomsvoboda and founder of tech development organization Privacy Accelerator, says historically Yandex has tried to resist government demands for data and has proved better than other firms. (In June, it was fined 2 million rubles ($24,000) for not handing data to Russian security services.) However, Shakirov says he thinks things are changing. “I am inclined to believe that Yandex will be attempted to be nationalized and, as a consequence, management and policy will change,” Shakirov says. “And as a consequence, user data will be under much greater threat than it is now.”Bakunov, the former Yandex engineer, who reviewed some of McCrea’s findings at WIRED’s request, says he is scared by the potential for the misuse of data going forward. He says it looks like Russia is a “new generation” of a “failed state,” highlighting how it may use technology. “Yandex here is the big part of these technologies,” he says. “When we built this company, many years ago, nobody thought that.” The company’s head of privacy, Cherevko, says that within the restructuring process, “control of the company will remain in the hands of management.” And its management makes decisions based on its “core principles.”But the leaked code shows, in one small instance, that Yandex may already share limited information with one Russian government-linked company. Within Crypta are five “matchers” that sync fingerprinting events with telecoms firms—including the state-backed Rostelecom. McCrea says this indicates that the fingerprinting events could be accessible to parts of the Russian state. “The shocking thing is that it exists,” McCrea says. “There's nothing terribly shocking within it.” (Cherevko says the tool is used for improving the quality of advertising, helping it to improve its accuracy, and also identifying scammers attempting to conduct fraud.)Overall, McCrea says that whatever happens with the company, there are lessons about collecting too much data and what can happen to it over time when circumstances change. “Nothing stays harmless forever,” she says. | Tech Giants |
Only a third of people in the world's poorest countries can connect to the internet, the U.N. telecoms agency said Sunday, but low-flying satellites could bring hope to millions, especially in remote corners of Africa.
Tech giants including Microsoft have pledged to help populations hobbled by poor internet services to "leapfrog" into an era of online connectivity, with satellites set to play a key role as rival firms send thousands of new generation transmitters into low level orbit.
At the moment just 36% of the 1.25 billion people in the world's 46 poorest countries can plug into the internet, the International Telecommunication Union said. By comparison, more than 90 percent have access in the European Union.
The ITU condemned the "staggering international connectivity gap" that it said had widened over the past decade.
The divide has been a key complaint at a U.N. summit of Least Developed Countries in Doha, where UN Secretary-General Antonio Guterres told their leaders that "you are being left behind in the digital revolution."
The digital dearth is particularly acute in some African countries, including the Democratic Republic of Congo, where barely a quarter of the population of nearly 100 million can connect.
While internet access is easy in major DRC cities such as Kinshasa, huge rural zones and swathes of territory battled over by rival rebel groups for more than two decades are digital deserts.
The launch of thousands of Low-Earth Orbit satellites could bring speedy change and boost African hopes, tech experts promised at the Doha summit.
'Leapfrog other nations'
Satellite coverage will play a key role in Microsoft's vow to bring internet access to 100 million Africans by 2025, which was outlined ahead of the summit.
Microsoft announced a first phase for five million Africans in December and last week added a commitment to cover another 20 million people.
The initial five million will be served by Viasat, one of the companies sending constellations of satellites into space to compete with land-based fibre broadband.
Elon Musk's Space X and Starlink are also putting thousands of satellites into an orbit between 400 and 700 kilometers (250 to 430 miles) above Earth.
Microsoft president Brad Smith told AFP that when he first saw the 20 million figure proposed by his team last year, he asked "is this real?", but that he was now convinced it is possible.
"The technology costs have come down substantially and will continue to drop," he said. "That is part of what makes it possible to move this fast to reach this size of population.
"Countries in Africa have the opportunity to leapfrog other nations when it comes to the regulatory structure for something like wireless communications," he added.
"We can reach many more people than we could with fixed line technologies five or 10 or 15 years ago."
Bandwidth bonanza
Richer countries have already largely allocated the available bandwidth for telecoms and television.
"In Africa the spectrum isn't being used and so it is available and the governments are moving faster to bring this connectivity to more people," Smith said.
Microsoft is working with Africa telecoms specialist Liquid Intelligent Technologies to provide internet for the second segment of 20 million people.
Providing internet and digital skills training for thousands of Africans was part of an effort to provide a private-sector alternative to "foreign aid", Smith said, declaring that "we are bullish on what we believe digital technology can do for development."
But the Microsoft president acknowledged that the private sector is "woefully under-developed and under-invested" in many LDC economies.
Liquid Intelligent says it has 100,000 kilometers (62,000 miles) of land fibre across Africa but is building a major satellite footprint.
"In hard-to-reach areas," said Nic Rudnick, its deputy chief executive, "satellite is often the only technology or the most reliable technology for fast broadband that always works." | Tech Giants |
New rules in the European Union’s Digital Services Act (DSA) are set to come into force tomorrow, while the UK’s Online Safety Bill (OSB) remains mired in parliamentary proceedings, reigniting the regulation debate among tech companies and industry experts.
The OSB, which aims to enhance online safety and security for users within the UK, is still navigating its way through parliament, and is currently in its final reading in the House of Lords.
It was first introduced in parliament in March 2022; the DSA was approved just a month later.
Under the DSA, major players like Meta, Apple and Google must now adhere to regulations that restrict certain user-targeting practices and improve the transparency of internal data.
Lengthy delays to the OSB and its controversial rules, especially surrounding end-to-end encrypted messages, have riled up tech companies. Discontent is still simmering.
Andy Yen, chief executive of Proton, an end-to-end encrypted email service, told City A.M. he is “deeply concerned” about the current state of the OSB.
“Frankly, lawmakers seem unwilling or unable to understand the concerns that almost the entire technology industry, as well as numerous other groups, have about the threats to end-to-end encryption, and by extension the threats to privacy and business in the UK,” he said.
Under the new laws, authorities could force communication providers like Proton and WhatsApp to scan online messages sent in the UK in order to detect criminal activity.
Yen warned that his company may have to “take a long hard look at its future in the UK”, as it refuses to compromise on users’ privacy.
Will Cathcart, head of WhatsApp at Meta has also previously chimed in: “No one, including WhatsApp, should have the power to read your personal messages.”
“People want their messages to remain private and secure. WhatsApp will not weaken the security we provide,” he added.
A government spokesperson said: “We are unambiguously pro-innovation and pro-privacy, however we have made clear that companies should only implement end-to-end encryption if they can simultaneously prevent abhorrent child sexual abuse on their platforms.
“The Online Safety Bill does not give Ofcom or the government any powers to monitor users’ private messages. As a last resort, and only when stringent privacy safeguards have been met, the Online Safety Bill will enable Ofcom to direct companies to either use, or make best efforts to develop or source, technology to identify and remove illegal child sexual abuse content.”
Cumbersome regulation?
While both the EU and UK online acts put the onus on digital platforms to curb harmful content, the OSB is more “prescribed” when it comes to protecting minors, according to Ben Dunham, a digital media and technology lawyer at Osborne Clarke.
Some industry experts have suggested that the significantly more detailed and cumbersome regulation in the UK could undermine the country’s ambitions to become a tech superpower.
Ed Ratcliffe, head of public affairs at TechUK, took this view, telling City A.M. that while his organisation supports the legislation’s objectives, a number of last-minute additions to the bill have yet to undergo in-depth review.
He said a combination of “vague obligations” and the potential for severe sanctions could deter investment and innovation while placing a “significant burden” on small businesses trying to grow.
The UK “cannot ignore” online safety issues in its quest to become a tech superpower, said Antony O’Loughlin, director head of litigation and general counsel at Setfords.
But he argues the OSB must strike a balance between this and the “commercial viability” of the UK’s tech sector under the new regulations.
Out of sight, out of mind
It’s not just about the stringent rules either. During the long wait for the bill to be approved, tech companies may simply be forgetting about it, Jo McLean, managing associate at City-based law firm Addleshaw Goddard pointed out.
McLean said the delay is impacting how companies prioritise which regime to base their governance structures and processes on.
“The tech giants have had since last October when the DSA was finalised to plan and prepare for implementation,” explained McLean, but “while the OSB remains up in the air it is not the priority”.
However McLean added that, in the long run, the delay is unlikely to “significantly hinder” the UK’s tech superpower dream. | Tech Giants |
What's happening Samsung Unpacked will livestream on Aug. 10, likely detailing the company's next line of foldable phones. Why it matters Samsung will be reaching its fourth generation of foldable phones, which started with the Galaxy Z Fold in 2019. What's next As the foldable phone space grows, both the rumored Z Fold 4 and Z Flip 4 could reveal features that we'll see in foldable phones from other companies in the next year, such as rumored devices from Motorola and Google. Samsung's August 2022 Unpacked event is coming next week on Wednesday, Aug. 10, and it looks like it will heavily feature upcoming models of the Galaxy Z Fold and the Z Flip. The rumored Galaxy Z Fold 4 and Z Flip 4 would be successors to the $1,800 Z Fold 3 and the $1,000 Z Flip 3, and Samsung's own promotional art for the event showcasing a Z Flip phone seems to tease new foldable phones that are on the way.In addition to folding phones, Samsung might also provide a look at the future of its Galaxy Watch line, as Samsung continues its collaboration with Google on the newest version of the Wear OS operating system. This version of Wear OS -- which will eventually incorporate features from Google's Fitbit -- is currently on last year's Galaxy Watch 4. Now that it's been a year since that watch debuted, Samsung might have a new Galaxy Watch 5 ready for 2022 alongside new details about Wear OS. Some announcements revealed by Samsung could even end up in Google's own Pixel Watch later this year.Samsung Unpacked will take place as a livestream starting at 6 a.m. PT (9 a.m. ET) on Aug. 10, with the company planning to broadcast on Samsung's YouTube channel, Samsung.com and Samsung's Newsroom. As the event gets closer, we'll embed the livestream into this post.CNET will also hold live coverage including a pre- and post-show, spotlighting the latest reveals in Samsung's Galaxy lineup. That live event will stream on CNET's YouTube channel, and will be accompanied by reporting from CNET staff.Samsung's next Unpacked event comes as phones including the latest Qualcomm Snapdragon 8 Plus Gen 1 chip hit the market, including the OnePlus 10T, the Asus Zenfone 9 and the RedMagic 7S Pro. It's also arriving about a month before Apple is expected to reveal its 2022 iPhone lineup, expected to coincide with the iPhone 14 and the public release of iOS 16. | Tech Giants |
Associated Press/Elaine Thompson Second grade students help kindergarteners on programming during their weekly computer science lesson at Marshall Elementary School in Marysville, Wash. Tech industry group NetChoice on Wednesday sued California over a kids’ online safety law, arguing the measure that aims to ramp up privacy protections for minors online would “hobble” free speech. NetChoice, which names tech giants Google and Meta among its members, said in a complaint the California Age Appropriate Design Code would “harm” rather than protect minors and pressure online businesses to “over-moderate content” in attempts to avoid penalties for the law in a way that will restrict information for users of all ages. The complaint also alleges the law’s requirement to verify the ages of users will “frustrate anonymous and casual browsing” and “magnify privacy concerns.” The lawsuit is the latest effort from the tech group against state laws, passed in lieu of Congress, taking action to create federal regulation in the tech space. NetChoice is also part of lawsuits against Republican-backed laws in Texas and Florida that seek to keep companies from removing users or content over political ideology, which they say impedes companies’ ability to moderate content in line with their policies. Wednesday’s complaint targets the kids’ safety law California Gov. Gavin Newsom (D) signed in September. The law puts limits on the type of data tech companies collect on minors and calls for companies to set the highest default privacy settings for young users. The Hill reached out to California Attorney General Rob Bonta (D) for comment. NetChoice slammed the law at the time of its signing, indicating legal action could follow. But the law has been cheered by children’s online safety advocates that have been pushing for lawmakers to take action to update online safety and privacy laws for minors as younger generations increasingly use online technologies. Tags Big tech California Gavin Newsom Google Lawsuit Meta NetChoice online privacy Rob Bonta | Tech Giants |
Apple on Wednesday announced it plans to introduce an enhanced security setting called Lockdown Mode in iOS 16, iPadOS 16, and macOS Ventura to safeguard high-risk users against "highly targeted cyberattacks."
The "extreme, optional protection" feature, now available for preview in beta versions of its upcoming software, is designed to counter a surge in threats posed by private companies developing state-sponsored surveillanceware such as Pegasus, DevilsTongue, Predator, and Hermit. Lockdown Mode, when enabled, "hardens device defenses and strictly limits certain functionalities, sharply reducing the attack surface that potentially could be exploited by highly targeted mercenary spyware," Apple said in a statement. This includes blocking most message attachment types other than images and disabling link previews in Messages; rendering inoperative just-in-time (JIT) JavaScript compilation; removing support for shared albums in Photos; and preventing incoming FaceTime calls from unknown numbers.
Other restrictions cut off wired connections with a computer or accessory when an iPhone is locked and, most importantly, prohibit configuration profiles — a feature that's been abused to sideload apps bypassing the App Store — from being installed. The tech giant also noted that it plans to incorporate additional countermeasures to Lockdown Mode over time, while simultaneously inviting feedback from the security research community to identify "qualifying findings" that will be eligible for up to $2 million in bug bounties.
It's worth noting that the feature will not be switched on by default, but can be accessed by heading to Settings > Privacy & Security > Lockdown Mode.
The announcement arrives a month after Apple debuted a new Rapid Security Response feature in iOS 16 and macOS Ventura that aims to deploy security fixes without the need for a full operating system version update.
Google and Meta offer analogous software features known as Advanced Account Protection and Facebook Protect that are meant to secure the accounts of individuals who are at an "elevated risk of targeted online attacks" from takeover attempts. But it won't be surprising if Google follows suit with a similar feature on Android. Found this article interesting? Follow THN on Facebook, Twitter and LinkedIn to read more exclusive content we post. | Tech Giants |
The logo of Meta Platforms is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. REUTERS/Arnd WiegmannRegister now for FREE unlimited access to Reuters.comJune 21 (Reuters) - Meta (META.O), Microsoft (MSFT.O) and other tech giants racing to build the emerging metaverse concept have formed a group to foster development of industry standards that would make the companies' nascent digital worlds compatible with each other.Participants in the Metaverse Standards Forum include many of the biggest companies working in the space, from chip makers to gaming companies, as well as established standards-setting bodies like the World Wide Web Consortium (W3C), the group said in an statement announcing its creation on Tuesday.Conspicuously missing from the member list for now however is Apple (AAPL.O), which analysts expect to become a dominant player in the metaverse race once it introduces a mixed reality headset this year or next. read more Register now for FREE unlimited access to Reuters.comGaming companies Roblox and Niantic also were not included among the forum's participants, nor were emerging crypto-based metaverse platforms like The Sandbox or Decentraland.Apple has not yet publicly acknowledged plans for a headset, although it has reportedly given its board a sneak peek of the product, according to Bloomberg. It did not immediately respond to a request for comment about the new metaverse forum.Introducing such a device would put Apple in direct competition with Meta, which has staked its future on the growth of the metaverse and invested heavily in hardware to make its vision of interconnected virtual worlds a reality.Meta, known as Facebook until it changed its name as part of its metaverse pivot last year, has disclosed plans for a mixed-reality headset code-named "Cambria" to be released this year.Apple has been heavily involved in creating web standards such as HTML5 in the past. For three-dimensional content in the metaverse, Apple worked with Pixar on the "USDZ" file format and with Adobe to ensure it supported the format.Neil Trevett, an executive at chip maker Nvidia who is chairing the Metaverse Standards Forum, said in a statement to Reuters that any company is welcome to join the group, including participants from the crypto world.The forum aims to facilitate communication between a variety of standards organizations and companies to bring about "real-world interoperability" in the metaverse, he said, without addressing how Apple's absence would affect that goal.Register now for FREE unlimited access to Reuters.comReporting by Katie Paul; additional reporting by Stephen Nellis; Editing by Lincoln Feast.Our Standards: The Thomson Reuters Trust Principles. | Tech Giants |
Social media companies in the United States are bracing themselves to battle an onslaught of new state and federal legislation and legal challenges with far-reaching regulatory implications this year.
The majority of US state legislatures have introduced or passed bills attempting to reform how social media giants moderate their content and increase security measures for American users.
Elsewhere on the legal front, the supreme court will hear no fewer than four high-profile cases against tech giants, ranging from liability in terrorist attacks to alleged censorship of conservative viewpoints on their platforms.
State and federal lawsuits, two of which were announced this month, also take aim at how social media apps and their highly effective algorithms negatively affect the mental health of American teenagers.
On 6 January, Seattle public schools and Kent school district filed a lawsuit against TikTok, Instagram, Facebook, YouTube and Snapchat, alleging they promote “harmful content to youth, such as pro-anorexia and eating disorder content”. In a statement, Seattle public schools said: “We cannot ignore the mental health needs of our students and the role that social media companies play.”
Only a couple of weeks later, Utah’s Republican governor Spencer Cox announced the state plans to file a similar lawsuit, claiming the yet-to-be filed complaint will be aimed at protecting youth.
The concerns cited by public officials about the affects of social media on teenagers are not unfounded. Last year, Facebook data scientist turned whistleblower Frances Haugen leaked internal documents to the Wall Street Journal, showing teens who used Instagram experience harm as a result of “social comparison, social pressure, and negative interactions with other people”.
In 2019, the company now called Meta – the parent company of Facebook and Instagram – obtained clear market research data demonstrating Instagram use caused 40% of American teenagers to feel they had to create a perfect image, to think they were unattractive and didn’t have enough money, the leaked documents showed. One in five teens in Meta’s market research said that Instagram made them feel worse about themselves; teenagers reported the social media app exacerbated their existing mental health issues.
Meta’s CEO, Mark Zuckerberg, responded to the Wall Street Journal’s report about the leaked documents and Haugen’s congressional testimony by calling it a “mischaracterization of the research into how Instagram affects young people”. He pointed to a Facebook Newsroom response, penned by its vice-president and head of research, Pratiti RayChoudhury, which said: “It is simply not accurate that this research demonstrates Instagram is ‘toxic’ for teen girls. The research actually demonstrated that many teens we heard from feel that using Instagram helps them when they are struggling with the kinds of hard moments and issues teenagers have always faced.”
While the pressure is mounting for public officials to legally address the harms social media cause in children, states have been waging a legislative war against social media platforms for content moderation for the past two years. Politico reported 34 states introduced or passed more than 100 bills primarily attempting to ban censorship or restrict hate speech. As legislative sessions kick off this year, that number is expected to increase.
A California law just went into effect this January, requiring social media companies to share their hate speech, extremism and disinformation policies in their terms of services.
“Californians deserve to know how these platforms are impacting our public discourse, and this action brings much-needed transparency and accountability to the policies that shape the social media content we consume every day,” said the California governor, Gavin Newsom, after he signed the bill last fall.
Starting next year, tech companies will also have to provide data about how those policies are enforced in biannual reports to the California attorney general, Rob Bonta.
Legislation passed by conservative lawmakers in Texas and Florida argues that social media platforms are censoring rightwing political speech. Appellate courts struck down Florida’s law, arguing it violated the first amendment, but upheld the legislation in Texas with one judge saying it “chills censorship”. The supreme court narrowly ruled to temporarily block the Texas law last May.
This week, the supreme court asked the US solicitor general, Elizabeth Prelogar, to weigh in on whether states can stop social media companies from eliminating some forms of political rhetoric on their platforms. Because the supreme court has asked for Prelogar’s opinion on the stalled cases, it’s anticipated that their ruling will be delayed until their next session in October 2023.
In late February, the supreme court will hear arguments in two controversial cases – Gonzalez v Google and Twitter v Taamneh – both of which raise questions about whether or not social media platforms are liable for spreading Islamic State content that ultimately resulted in the 2015 Paris attacks and the 2017 Turkish nightclub attack. Google has argued publicly that ruling against the company in this case would undermine Section 230 of the Communications Decency Act, harming “free expression online” and making the internet less safe from spam and offensive content.
Taking effect this month, the federal government banned TikTok from all of its government-issued devices unless employees are using the app for law enforcement or national security purposes. The ban came on the heels of the public concerns of the FBI director, Christopher Wray, about China using TikTok to infiltrate American users’ cellphones, collect personal data and peddle influence. More than 20 states have followed suit, requiring TikTok to be permanently removed from state-issued devices, the Associated Press reported.
Like state officials’ concerns about the harms of social media with youth, federal and state governments’ heightened anxiety about TikTok’s security implications aren’t entirely baseless.
ByteDance, TikTok’s parent company, confirmed in December two China-based and two US-based employees tasked with investigating press leaks had improperly accessed the personal data of a BuzzFeed and a Financial Times reporter, CNN reported. ByteDance fired all four employees and TikTok’s CEO, Shou Chew, called the breach “unacceptable” and a misuse of the employees’ authority.
For some lawmakers, like the Florida senator Marco Rubio, banning TikTok on government-issued devices doesn’t go far enough.
“This isn’t about creative videos – this is about an app that is collecting data on tens of millions of American children and adults every day,” Rubio wrote in a statement on his website. “We know it’s used to manipulate feeds and influence elections. We know it answers to the People’s Republic of China. There is no more time to waste on meaningless negotiations with a CCP-puppet company. It is time to ban Beijing-controlled TikTok for good.”
ByteDance has argued its data is held in the US and Singapore, not China, and the Chinese government has never asked the company to provide them with data. | Tech Giants |
European lawmakers are looking to introduce a law that would require electronic devices to use a common charger. EU lawmakers have proposed USB Type-C as the common standard.gelmold | iStock | Getty ImagesEuropean lawmakers on Tuesday approved a new law that would require electronic devices to use a common charger.The European Parliament approved the rule which, if passed, will mean all mobile phones, tablets and cameras sold in the European Union must be equipped with a USB Type-C charging port by the end of 2024.That would affect companies like Apple and others that currently don't use USB Type-C. Apple's iPhone uses its proprietary Lightning charger. In theory, Apple would need to include the common charging type if it were to sell its iPhones in the EU.Apple's newer iPads and MacBooks are already equipped with USB-C ports.Apple was not immediately available for comment when contacted by CNBC.The charging rules, which have been more than 10 years in the making, are currently going through the EU legislative process so have not yet come into effect.The European Commission, the EU's executive arm, agreed on the legislation in June. Now the European Parliament has given it the green light. It is now up to the European Council, which is made up of representatives of governments of EU countries, to give it a final approval before it becomes law.EU lawmakers argue the rules will reduce wastage as consumers do not need to buy a new charger every time they purchase a device. The EU said that this will reduce production and the disposal of new chargers.If the law is passed, in theory, consumers would be able to use a Samsung USB Type-C charger to charge their compatible iPhone."This future-proof law allows for the development of innovative charging solutions in the future, and it will benefit everyone — from frustrated consumers to our vulnerable environment," Alex Agius Saliba, a member of European Parliament, said in a press release. | Tech Giants |
Google Seeks Suppliers To Move Some Pixel Production To India
Company following Apple in diversifying assembly beyond China. Google in talks with potential partners Lava, Dixon, Foxconn.
(Bloomberg) -- Alphabet Inc.’s Google is scouting for suppliers in India to assemble its Pixel smartphones as it borrows from Apple Inc.’s playbook to diversify beyond China.
Google has initiated early conversations with companies including homegrown Lava International Ltd. and Dixon Technologies India Ltd. as well as Foxconn Technology Group’s Indian unit Bharat FIH, people familiar with the matter said, asking not to be named as the matter is private.
Google would be the latest global technology player to move production to India. The potential partners it’s talking to have won Prime Minister Narendra Modi’s so-called production-linked financial incentives, which have boosted local manufacturing. Apple has used the program to widen its supplier base in India and tripled iPhone output to more than $7 billion in the fiscal year through March 2023.
Modi has been pitching India as an alternative manufacturing hub, as more companies are becoming wary of the risks of depending on China after its harsh Covid lockdowns and a trade war between Washington and Beijing. Modi is scheduled to visit the US this week where his delegation is expected to hold talks on topics including a removal of tech trade barriers between the two countries.
Last month, India’s Technology Minister Ashwini Vaishnaw met with Google Chief Executive Officer Sundar Pichai at the company’s headquarters in Mountain View, California, for a conversation that revolved around Modi’s local manufacturing drive and India’s state-backed technology push.
Key Google executives who visited India this month for the partnership talks included Ana Corrales, operating chief of its consumer hardware arm, and Maggie Wei, a senior director of global sustaining product operations, the people said.
Representatives for Lava, Dixon, Google and Foxconn didn’t respond to requests for comment.
Google built about 9 million Pixel smartphones last year, according to Counterpoint Research, and the discussions in India underscore its plans to move production beyond China and Vietnam. The Pixel is among the most sophisticated smartphones, and Google uses its flagship hardware product to showcase what its Android operating system and apps are capable of when optimized.
India is a key growth market for Google’s services but the company has largely watched from the sidelines as cheaper Chinese phones have dominated the region. Local assembly could help drive up Pixel sales, and if the phone effort is successful, Google could also move production of other hardware such as speakers to India, the people said.
Still, there is no certainty Google’s talks will result in a deal and the company could opt not to build the Pixel in India, the people said.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P. | Tech Giants |
BRUSSELS, June 27 (Reuters) - EU countries and EU lawmakers on Tuesday agreed on rules that govern how Big Tech and other companies use European consumer and corporate data, with safeguards against non-EU governments gaining illegal access.
The European Commission proposed the Data Act last year to cover data generated in smart gadgets, machinery and consumer products, part of a raft of legislation aimed at curbing the power of U.S. tech giants.
EU concerns about data transfers have grown following revelations by former U.S. intelligence contractor Edward Snowden in 2013 of mass U.S. surveillance.
The agreement was reached after seven hours of talks.
"Tonight's agreement on the Data Act is a milestone in reshaping the digital space...we are on the way of a thriving EU data economy that is innovative and open — on our conditions," EU industry chief Thierry Breton said in a tweet.
The new legislation gives both individuals and businesses more control over their data generated through smart objects, machines and devices, allowing them to copy or transfer data easily from across different services.
It also gives consumers and companies a say on what can be done with the data generated by their connected products.
The Act makes it easier to switch to other providers of data processing services, introduces safeguards against unlawful data transfer by cloud service providers and provides for the development of interoperability standards for data to be reused between sectors.
Manufacturers watered down an attempt to force them to share data with third parties to provide aftermarket or other data-driven services. Siemens (SIEGn.DE) and SAP (SAPG.DE) had voiced fears about trade secret-related data leaks.
Such data sharing requests can be rejected under exceptional circumstances where operators could face "serious and irreparable economic losses" undermining their economic viability under the new law.
Lawmaker Damian Boeselager said this created a loophole for some companies.
"I find this deeply concerning. But at least a national authority can review and annul such a unilateral decision by the operator in a timely manner," he said.
Lobbying group The Information Technology Industry Council (ITI) criticised the wide scope of the Act.
"We have ongoing concerns regarding the Act's broad and ambiguous approach to data sharing, including on the expansion of the products and services originally in scope and the safeguards for trade secrets protection, as well as the rules impacting international transfers of non-personal data," its director general for Europe, Guido Lobrano, said.
Our Standards: The Thomson Reuters Trust Principles. | Tech Giants |
By Chris VallanceTechnology reporterImage source, AirtonomyImage caption, A simulated drone inspecting a wind turbineMicrosoft has launched a platform to train the artificial intelligence (AI) systems of autonomous aircraft.Project AirSim is, in effect, a flight simulator for drones, which companies can use to train and develop software controlling them.It makes it possible for test flights in places that would be too risky in reality, such as near power lines.And it means, Microsoft says, that millions of flights can be simulated in seconds.For example, companies can virtually see how the vehicle flies in rain, or how strong winds might affect its battery life.In a statement announcing the launch, Microsoft's Gurdeep Pall said that it showed "the power of the industrial metaverse - the virtual worlds where businesses will build, test and hone solutions, and then bring them into the real world".The firm envisages the tech being used to train the AI systems which fly autonomous air vehicles from air taxis to delivery drones.Turning 40The Seattle software giant has a long history in virtual flight - this November its Flight Simulator game will celebrate its 40th anniversary.Image source, MicrosoftImage caption, The simulated flight of a drone near a phone mast above SeattleProject AirSim's history is more recent, growing out of an open-source project of the same name that was used by a number of researchers.Microsoft has announced that it will retire that project. The new proprietary platform, the company says, contains more out-of-the box features, and requires less technical knowledge to use.The project runs on Microsoft's cloud computing platform Azure. US firm Airtonomy was given early access to the platform. Airtonomy uses drones to inspect infrastructure, such as wind turbines and power lines. Chief executive Josh Riedy told the BBC that previously a "crew of three individuals repelled down those blades - the towers are at a height of 80m (262 ft), so not only was it a nearly a day-long job for three individuals, safety is certainly a consideration".Now the drones fly autonomously and can be controlled by only one person on the ground. "They simply need to know how to put batteries in a drone, and push a button," he said. The flight routines that enable this are developed in the virtual environment of Project AirSim, and Mr Riedy says a big advantage is the "simulated environment allows us to make mistakes" when working with critical infrastructure.It also allows developers to imagine "what if" scenarios that would be unsafe to test in real life - such as what happens if a drone's vision is obscured.Microsoft hopes that it could also be used by civil aviation regulators to test systems - seeing how the drone performs in extremely heavy rain, or copes with a loss of positioning data. Image source, MicrosoftImage caption, Four simulated drones fly through forest settings in AirSimAs well as libraries of digital environments, developers will also have to access already trained AI "building blocks" which the firm hopes will reduce the expertise needed to develop systems.Ashish Kapoor, creator of the original open-source AirSim, said in a statement that he hoped data gathered on the new platform would help put "many more vehicles in the sky, helping to monitor farms, inspect critical infrastructure and transport goods and people to the remotest of places". | Tech Giants |
HONG KONG, Oct 1 (Reuters) - Tencent is resetting its M&A strategy to put more focus on buying majority stakes mainly in overseas gaming companies, as the tech giant eyes global expansion to offset slowing growth at home in China, people with direct knowledge of the matter said.Tencent Holding Ltd (0700.HK) has for years invested in hundreds of up-and-coming businesses, mainly in the onshore market. It has typically acquired minority stakes and stayed invested as a passive financial investor.However, it is now aggressively seeking to own majority or even controlling stakes in overseas targets, notably in gaming assets in Europe, the four people with direct knowledge of the matter told Reuters.Register now for FREE unlimited access to Reuters.comThe shift comes as the world's number one gaming firm by revenue is counting on global markets for its future growth, which requires a strong portfolio of chart-topping games, the sources aid.Tencent's new strategy indicates how China's tech titans are looking to emerge from the regulatory shadows after two years of crackdown and uncertainty that weighed on their sales at home and triggered a massive selloff in their stocks.Apart from the core gaming sector, Tencent is also looking to snap up global assets, in particular in Europe, related to the so-called metaverse, said one of the sources and another source with direct knowledge of the matter.The people declined to be identified as the information was private.Tencent told Reuters the company had been investing abroad for a long time - "long before any new regulations" in China. It looks for "innovative companies with talented management teams" and gives them room to grow independently, the company added, without elaborating.Tencent's pursuit for bigger stakes in gaming firms comes as other tech giants such as Microsoft , Sony (6758.T) and Amazon are snapping up gaming assets and related intellectual properties, said three of the sources.Tencent's chief strategy officer, James Mitchell, said on a post-earnings call in August the company would remain active in acquiring new game studios overseas."In terms of the game business, our strategy is ... to focus on developing our capabilities especially in the international market," he said. "We will continue to be very active in terms of acquiring new game studios outside China."PURSUIT OF BIGGER STAKESTencent's growing focus on overseas assets and markets is in sharp contrast to its much slower dealmaking pace at home since the regulatory clampdowns intensified, and the divestment of a clutch of domestic portfolio companies.From 2015 to 2020, the owner of China's number one messaging app WeChat 150 investments at home totalling $75 billion, compared to 102 deals worth $33 billion in overseas markets, according to Refinitiv data.Tencent in August reported its first ever quarterly top-line fall, partially hurt by a lack of game approvals in China and regulations that limit playing time. Revenue from online games decreased both at home and abroad by 1%.Its Hong Kong-listed shares have sunk some 60% in the last two years.Against that backdrop, Tencent has barely made investments in China this year versus 27 deals worth $3 billion offshore, Refinitiv data show. It has been reducing its portfolio partly to placate regulators and also to book some hefty profits, sources have told Reuters."We believe Tencent will continue to make reasonable investments to acquire quality gaming content and talents and deepen partnerships with top-tier studios worldwide in order to step up its investments and presence in overseas markets," said Citi analysts in a report in early September.Tencent's pursuit of bigger stakes in its existing gaming portfolio or new targets would give the company a bigger say in such firms' businesses and also help it secure the intellectual property rights of popular games, said the four sources.Also, with Beijing strictly restricting game approvals at home and still suspending approvals for games of foreign IPs, Tencent is forced to move towards gaining control of foreign game companies and their IPs, said the four sources.Tencent in September raised its stake in Ubisoft (UBIP.PA) in a deal that made the Chinese firm the single biggest shareholder of the top French games developer, with a stake of 11% which can be further increased to as much as 17%.REGIONAL HUBThe Ubisoft deal comes just after deep-pocketed Tencent in June acquired Copenhagen-based Sybo Games, the developer of hit mobile game Subway Surfer, and in August took a 16.25% stake in Japan's "Elden Ring" developer FromSoftware.Last year, Tencent said it would take over British videogame developer Sumo in a $1.3 billion deal - one of its largest foreign transactions since the regulatory crackdown in late 2020.In Europe, except for its purchase of majority stake in "Clash of Clans" mobile game maker Supercell for $8.6 billion in 2016, Tencent has for years mostly cut minority deals including its purchase of 9% of British gaming firm Frontier Developments.Elsewhere, Tencent also seeks to increase its investment in and make deeper forays into Southeast Asia as it sees the region - home to 650 million people - as having potential to replicate the success of China's internet boom, said two of the sources.China's largest social network firm already has a regional hub for Southeast Asia in Singapore that houses its international game publishing business.Since last year, the company has repeatedly emphasized that it is aiming to have half of its gaming revenue coming from outside China, from about 25% now. In doing so, it in December launched a new publishing brand called Level Infinite in Singapore.Register now for FREE unlimited access to Reuters.comReporting by Julie Zhu and Josh Ye; Editing by Sumeet Chatterjee and Kim CoghillOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
Netflix and Microsoft have partnered up to help fund a cheaper ad-supported tier for the streaming service. Microsoft will become Netflix's "global advertising technology and sales partner," according to a Wednesday announcement. The company announced in April that it was considering an ad-supported tier to help increase its subscription count. Netflix announced the new tier option after reported losses in the first quarter of 2022. "Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering," Netflix COO Greg Peters wrote in a blog post. "More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members." AMAZON GAVE RING DOORBELL SURVEILLANCE TO POLICE WITHOUT NOTIFYING OWNERS We’re thrilled Netflix has selected Microsoft as its advertising technology and sales partner. We want publishers to have more long-term viable ad monetization platforms, so more people can access the content they love wherever they are. https://t.co/QmPszxJTOf— Satya Nadella (@satyanadella) July 13, 2022 Microsoft affirmed the partnership. "This is a big day for Netflix and Microsoft," wrote Mikhail Parakhin, Microsoft's president of web experiences. "We're excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers." The companies have not provided additional details about what their partnership entails. CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER Netflix reported losing 2 million subscriptions in its first quarter, the first loss reported in a decade. This led to additional speculation that the company would consider creating an ad-supported tier like its competitors, a decision that the company confirmed in June. The company has been interviewing potential partners, including Google and Comcast, for the last few months as it prepares to launch the new tier. The company is also exploring livestreaming and additional actions to stop password-sharing. It also decided to lay off hundreds of workers on June 23, as it struggles to compete with other streaming services, including HBO Max, Disney+, and Peacock. | Tech Giants |
Retail giant Amazon is cranking up the warehouse robotics arms race once more, unveiling on Wednesday new machines that can navigate the company’s huge warehouses entirely on their own, as well as a machine that’ll stack packages on shelves without human assistance.One of the new robots, called Proteus, is Amazon’s first totally autonomous warehouse machine, the company says. Like earlier Amazon robots, it’s disk-shaped, about seven inches tall, and designed to slide under a shelf full of merchandise, lift it up, and carry it to a workstation where workers pack items for shipment. But earlier versions could only operate in isolated areas of Amazon’s warehouses, which human workers are not allowed to enter. That’s because they lacked the ability to detect and avoid people.But the Proteus features an array of cameras and other sensors. It can automatically spot humans in its path, and move to avoid them or come to a complete stop. This means it can be safely deployed almost anywhere in the warehouse.“You are able to have people coexist and collaborate with the robots,” said Lian Jye Su, research director for AI and robotics at ABI Research.Another robot, called Cardinal, is designed to pick up incoming items and stack them on the proper shelves. It’s a daunting task. “They come in various size and shapes,” said Su. “They have very different texture and very different packaging. It’s very difficult to pick up these items in the right manner.” Cardinal uses video cameras and artificial intelligence to tackle the problem.In addition, Amazon announced a new system that can instantly scan incoming packages, eliminating the need for workers to aim handheld scanners at each package’s bar code. The company also revealed a new automated system for lifting bins of merchandise from storage shelves, then transporting the items to workstations for shipment.Cardinal (above) is designed to pick up incoming items and stack them on the proper shelves.AmazonThe new systems are rolling out 10 years after Amazon kicked off the warehouse robotics boom by acquiring Kiva Systems of North Reading and transforming it into Amazon Robotics, which is still based locally. Since then, a host of warehouse robot makers have taken root in Greater Boston, including Vecna Robotics, Locus Robotics, Symbotic, and 6 River Systems, as well as Boston Dynamics with its recent package-handling robot.Hiawatha Bray can be reached at [email protected]. Follow him on Twitter @GlobeTechLab. | Tech Giants |
On the surface, Microsoft's Intelligent Cloud surpassed Wall Street's expectations while Alphabet's cloud unit disappointed. But for investors, the focus remains on how artificial intelligence is driving growth within those businesses.
On the company's earnings call Alphabet CEO Sundar Pichai said the company is seeing "a lot of interest in AI" for the cloud segment, but revenue growth for the business area continued to slow down sequentially in Q3.
Meanwhile, at Microsoft, cloud revenue grew sequentially with management attributing 3 percentage points of growth directly to AI.
"Some of the improvements, we're making in Azure and even in Microsoft 365 gross margins, even in the core of the commercial cloud, it speaks to the pace at which we are delivering AI revenue with the increasing cost expense and capital investment ahead with the demand we see," Microsoft CFO Amy Hood told investors on an earnings call.
Both Microsoft and Google attributed increased capital expenditures to AI, but it was Microsoft's ability to directly attribute revenue to AI that excited Wall Street analysts.
"The trend is now your friend," wrote Evercore ISI's Kirk Materne. "AI-Powered Azure acceleration highlights strong [fiscal first quarter] and the AI story only gets stronger in [the calendar year] 2024."
Microsoft shares rose more than 4% on Wednesday morning while Alphabet declined more than 8%.
The stock reactions are another example of how the AI narrative has shifted over the course of 2023.
Announcements about AI integrations became the craze in the early part of the year, highlighted by Microsoft's splashy $10 billion investment in OpenAI. Eventually, Nvidia's (NVDA) talk of overwhelming demand for its AI-powered chips convinced investors that the technology could be a rising tide that lifts all of tech.
But since AI drove such a rally in stocks during June that macro strategists boosted their overall outlook on the S&P 500, investors are paying more attention to which companies are actually best positioned in AI.
And for executives, managing the mentions of the technology that many think could change every aspect of our lives has become a fine art.
If investors leave the call ecstatic about AI, they might come back disappointed next quarter when expectations are tempered and AI projections are pushed out into future years (see AMD shares falling 7% after earnings last quarter).
But a lack of explanation about how AI investment is contributing to revenues, won’t cut it either.
The first question to Pichai on Alphabet's earnings call asked about search, a key battle ground for Google in the AI arms race. Morgan Stanley analyst asked Pichai for examples of "return on capital to Search when it comes to AI."
Pichai didn't provide specific numbers.
"We see AI as a foundational platform shift and are excited about the opportunities across our business," Pichai said. "It starts with search, and I've been pretty pleased with how the user feedback has been."
For now, Wall Street analysts aren't declaring any clearcut cut losers from AI among the tech giants, and many still like the long-term trajectory for how Alphabet could leverage AI moving forward.
Jefferies analyst Brent Thill wrote in a research note that he and the Street may have "embedded too much AI benefit" into Alphabet estimates. But he notes the Alphabet's increased spending indicates the management team likely has visibility into future cash flows that investors aren't aware of yet.
"While interest in generative AI is high, the industry's challenge in ramping AI infrastructure may be a factor in slowing recognized revs," Thill wrote in a research note Wednesday morning. "We expect better AI impact in '24."
Josh Schafer is a reporter for Yahoo Finance. | Tech Giants |
Google is planning to use artificial intelligence to help companies create ads, according to a report from CNBC. Internal documents viewed by the outlet suggest that Google wants to use its new PaLM 2 AI language model to help advertisers generate assets that they can use in their ads.
This tracks with a report from the Financial Times in April, which similarly stated that Google could soon create ads by putting together images, video, and text supplied by the advertiser. That’s not the only way Google could use its AI language model, however. CNBC reports that Google is also looking into ways to leverage its AI model to provide video ideas to YouTubers. It could also integrate an AI chatbot within the Play Store, Gmail, and Maps to provide customer support.
Other tech giants, like the Facebook owner Meta, are looking to make AI toolsets available to advertisers as well. Last week, Meta launched the AI Sandbox, which acts as the company’s “testing playground” for the early versions of AI-powered advertising tools. The company is currently working on tools for background generation, image outcropping, and text generation that helps advertisers create “different messages for certain audiences.”
Meanwhile, a report from The Information indicates that Amazon is working on a way to generate photos and videos for companies looking to create advertising campaigns on the platform. The company is also rumored to be building a conversational AI search tool that’s supposed to answer questions from customers, help them compare products, and more.
Google held its annual I/O event last week, where it took the wraps off of PaLM 2 and a flood of other AI features powered by the model. In addition to rolling out AI-generated summaries in Search, Google is also working on an AI notebook that’s trained on your documents as well as a way for Play Store to build out their listings with generative AI. | Tech Giants |
(Bloomberg) -- Google is rolling out new artificial intelligence tools to help marketers create advertisements, seeking to expand its use of AI in products and capitalize on the growing demand from business for the emerging technology.
The company said advertisers would soon be able to run ads on its popular search engine that are created using generative AI, software that can spin up text and images from a simple prompt. Marketers also will be able to draw on text from their product landing pages to create ads, and use Google’s tools to automatically generate slogans and product descriptions that are more relevant to customer search queries, the company said.
Advertisers will also be able to use AI-powered chat products for text and images as they create their ads. On the newly introduced Product Studio, Google merchants can find product images with the help of generative AI “without the added cost of new photo shoots,” the Alphabet Inc. company said Tuesday in a blog post. Merchants will be able to improve the quality of low-resolution images, remove unwanted backgrounds, or add elements into a product image, like tropical plants in the background.
“Because of the pace of change in AI we think this is very much the ground floor of something really exciting,” Jerry Dischler, a Google vice president who supervises advertising products, said in an interview.
As tech giants such as Google and Microsoft Corp. race to weave generative AI into their products, some experts have expressed concern that the tools will be used to supercharge the torrent of misinformation circulating online. Google’s policies bar advertisers from misrepresenting the products and services they provide, and the company said the AI tools contain guardrails to prevent abuse. Ads created using generative AI will be subject to the company’s existing controls, but will not receive extra scrutiny, the company said.
©2023 Bloomberg L.P. | Tech Giants |
The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew KellyRegister now for FREE unlimited access to Reuters.comMILAN, Aug 1 (Reuters) - France, Italy and Spain are stepping up pressure on the European Commission to come up with legislation that ensures Big Tech firms partly finance telecoms infrastructure in the bloc, a document showed on Monday.This was the first time the three governments have expressed their joint position on the issue.EU regulators said in May they were analysing the question of whether tech giants Alphabet's (GOOGL.O) Google, Meta and Netflix (NFLX.O) should shoulder some of the costs of upgrading telecoms networks. read more Register now for FREE unlimited access to Reuters.comIn a joint paper, a copy of which was seen by Reuters, the three governments said the six largest content providers accounted for 55% of internet traffic."This generates specific costs for European telecom operators in terms of capacity, at a time they are already hugely investing in the most costly parts of the networks with 5G and Fiber-To-The-Home," the document said.It urged that European telecom networks and large online content providers pay fair shares of network costs."We call for a legislative proposal ... ensuring all market players contribute to digital infrastructure costs," the document said.Two Italian government officials confirmed details of the joint document. One of them said Rome's government was set to give informal support in its caretaking capacity ahead of a general election in September.The French and Spanish governments did immediately respond to a request for comment.According to a study released by telecoms lobbying group ETNO earlier this year, an annual contribution of 20 billion euros to network costs by the tech giants could give a 72-billion-euro boost to the EU economy.However, digital rights activists have warned making Big Tech pay for networks could threaten EU net neutrality rules, which they feared could be watered down in a deal with online giants to help fund telecoms network. read more Any legislative proposal should "ensure fairness between users in accordance with the net neutrality rules, which is a core principle we absolutely need to preserve," the joint document said.Register now for FREE unlimited access to Reuters.comReporting by Elvira Pollina in Milan and Giuseppe Fonte in Rome; Editing by Valentina Za and Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
A logo of Google is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. REUTERS/Benoit Tessier/File PhotoRegister now for FREE unlimited access to Reuters.comBRUSSELS, June 27 (Reuters) - Google was hit with an antitrust complaint on Monday after a Danish online job-search rival took its grievance to EU regulators, alleging the Alphabet unit had unfairly favoured its own job search service.The complaint could accelerate EU antitrust chief Margrethe Vestager's scrutiny of the service, Google for Jobs, three years after it first came under her microscope. Since then the EU has taken no specific action relating to the online job-search sector.The European Commission and Google did not immediately respond to requests for comment sent out of office hours.Register now for FREE unlimited access to Reuters.comGoogle, which has been fined more than 8 billion euros ($8.4 billion) by Vestager in recent years for various anti-competitive practices, has previously said it made changes in Europe after complaints from online job-search rivals.Launched in Europe in 2018, Google for Jobs triggered criticism from 23 online job-search websites in 2019. They said they had lost market share after the online search giant had allegedly used its market power to push its new service.Google's service links to postings aggregated from many employers, allowing candidates to filter, save and get alerts about openings, though they must go elsewhere to apply. Google places a large widget for the tool at the top of results for ordinary web searches.Jobindex, one of the 23 critics three years ago, said Google had skewed what had been a highly competitive Danish market towards itself via anticompetitive means.Jobindex founder and CEO Kaare Danielsen said his company had built up the largest jobs database in Denmark by the time Google for Jobs had entered the local market last year."Nevertheless, in the short time following the introduction of Google for Jobs in Denmark, Jobindex lost 20% of search traffic to Google's inferior service," Danielsen told Reuters."By putting its own inferior service at the top of results pages, Google in effect hides some of the most relevant job offerings from job seekers. Recruiters in turn may no longer reach all job seekers, unless they use Google's job service," he said."This does not just stifle competition amongst recruitment services but directly impairs labour markets, which are central to any economy," Danielsen said, urging the Commission to order Google to stop the alleged anti-competitive practices, fine the company and impose periodic payments to ensure compliance.Jobindex said it had seen examples of free-riding, with some of its own job ads copied without its permission and marketed through Google for Jobs on behalf of Jobindex's business partners. It also cited privacy risks to job applicants and its clients.($1 = 0.9475 euros)Register now for FREE unlimited access to Reuters.comReporting by Foo Yun Chee; Editing by David Holmes and Bradley PerrettOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
In an earnings call, Meta CEO Mark Zuckerberg said that AI recommended content from accounts users don’t follow would make up 30% of Instagram and Facebook feeds in 2023.Image: Lionel Bonaventure / AFP (Getty Images)Despite the surge of public backlash over Instagram’s recent changes, fueled by internet powerhouses Kylie Jenner and Kim Kardashian, Meta CEO Mark Zuckerberg is unmoved. He said the photo-sharing app, if it can still be called that, will show twice as much AI-recommended content by the end of next year in the interest of, you guessed it, money.In an earnings call on Wednesday, one day after Instagram head honcho Adam Mosseri posted a Reel to try to quell the online backlash from the app’s users, Zuckerberg explained that social feeds across the company’s apps would shift from being driven “primarily by people and accounts you follow” to increasingly also being driven by content recommended by AI, even if you don’t follow the users who created the content. Specifically, the Meta CEO said that he expects AI-recommended content from people you don’t follow to make up about 30% or more of users’ Facebook and Instagram feeds by the end of 2023. Your feeds are currently made up of about 15% AI-promoted content, according to Meta.“Social content from people you know is going to remain an important part of the experience and some of our most differentiated content, but increasingly we’ll also be able to supplement that with other interesting content from across our networks,” Zuckerberg stated, according to a transcript of the earnings call. The clearest example of this shift on Instagram is the sudden abundance of Reels—which many have criticized for being random, not catered to their interests, or reposted from TikTok—in user feeds. However, Zuckerberg said that the AI recommended content spectrum is much broader, encompassing “texts, images, links, group content, and more.” In other words, although you might be annoyed by the random Reels all over your feed, it’s only the beginning.G/O Media may get a commission30% offCanon Pixma MG3620A college essentialPart of Amazon’s Off to College Essentials, this Canon Pixma uses wi-fi to print from your phone, laptop, or tablet“Building a recommendation system across all these types of content is something we’re uniquely focused on,” the Meta chief said. The reasons why Meta is insisting on shaking things up on its platforms and building a so-called “discovery engine” are like a Reel on repeat by this point. For one, it’s terrified of TikTok, which has ridden its recommendation system to global success. In response, Meta has tried to do one of the things it’s best at: copying features. Users are resistant, though, as the “Make Instagram Instagram Again” movement backed Jenner and Kardashian shows. Secondly, there’s the money problem. On Wednesday, Meta reported its first ever revenue decline in its decade as a public company, losing 1% in revenue and 36% in profit year-over-year. In addition to these financial hits, Meta is also suffering from the same reduced demand in digital advertising affecting peers including Google, Twitter, and Snap. Meta affirmed on Wednesday that it expects the weak demand for advertising to continue in the current quarter. Faced with this outlook, Meta is obviously looking for another golden goose egg. It believes it has found it, according to Zuckerberg, in AI-recommended content. Zuckerberg said that in the last quarter, Meta had seen a more than 30% increase in the time that users spent engaging with Reels on Instagram and Facebook. These increases were driven largely by advances in the company’s AI recommendation models.“As our AI finds additional content that people find interesting, that increases engagement and the quality of our feeds. Since we’re already efficient at monetizing most of these formats, this should increase our business opportunity over that period as well,” he said. | Tech Giants |
BERKELEY, Calif. -- The number of applications for visas used in the technology industry soared for a second straight year, raising “serious concerns” that some are manipulating the system to gain an unfair advantage, authorities said Friday.
There were 780,884 applications for H-1B visas in this year's computer-generated lottery, up 61% from 483,927 last year, U.S. Citizenship and Immigration Services said in a message to “stakeholders.” Last year's haul was up 57% from 308,613 applications the year before.
Each year, up to 85,000 people are selected for H-1B visas, a mainstay for technology giants such as Amazon.com Inc., Google parent Alphabet Inc., Facebook parent Meta Platforms Inc. and International Business Machines Corp.
Last year, the government began requiring workers who won the lottery to sign affidavits stating they didn't try to game the system by working with others to file multiple bids under different company names, even if there was no underlying employment offer. By winning at least once, they could market their services to technology companies that wanted to fill positions but didn't have visas, effectively becoming labor contractors.
“The large number of eligible registrations for beneficiaries with multiple eligible registrations — much larger than in previous years — has raised serious concerns that some may have tried to gain an unfair advantage by working together to submit multiple registrations on behalf of the same beneficiary. This may have unfairly increased their chances of selection,” the agency wrote.
The agency said it has “undertaken extensive fraud investigations” based on lottery submissions from the last two years, denied some petitions and is “in the process” of referring some cases to federal prosecutors for possible crimes.
The number of registrations tied to people who applied more than once rose to 408,891 this year from 165,180 last year and 90,143 the year before.
"We remain committed to deterring and preventing abuse of the registration process, and to ensuring only those who follow the law are eligible to file an H-1B cap petition," the agency said.
H-1B visas, which are used by software engineers and others in the tech industry, have been a lightning rod in the immigration debate, with critics saying they are used to undercut U.S. citizens and legal permanent residents.
But technology companies say they are critical for hard-to-fill positions even as they have had to lay off workers in other areas. As the number of applications have soared in the last two years, major technology companies have seen winning lottery submissions dwindle. | Tech Giants |
Musk Wants To Build Own ChatGPT AI To Rival Microsoft And Google
Musk confirmed that he has plans to create a “third option” in the AI race between Microsoft Corp.-backed OpenAI and Alphabet Inc.’s Google and DeepMind.
(Bloomberg) -- Elon Musk wants to create a rival to artificial intelligence phenom ChatGPT. In an interview with Tucker Carlson on Monday, Musk confirmed that he has plans to create a “third option” in the AI race between Microsoft Corp.-backed OpenAI and Alphabet Inc.’s Google and DeepMind.
The Tesla Inc. chief and owner of Twitter confirmed he intends to get involved in the AI race sparked by OpenAI’s intelligent chatbot. Seeing Microsoft and Google as “the two heavyweights” leading the pack presently, Musk offered that he would “create a third option.” He did not volunteer details on the advanced AI system he would seek to create.
In March, Musk incorporated a new artificial intelligence company called X.AI in the state of Nevada, according to state filings. That same month, he also signed an open letter, along with hundreds of other tech luminaries, urging a six-month pause in the development and training of advanced AI models. Musk has been a vocal critic of other AI companies, including OpenAI, which he played a role in founding.
Elon Musk Wants to Pause AI? It’s Too Late for That: Parmy Olson
The new AI company could be part of his plans to build an everything app called X. Musk has merged Twitter into a company named X Corp., and in another recent interview urged listeners to “stay tuned” for more on that front. He also confirmed an earlier report about slashing the valuation of Twitter since his takeover last year.
“We just revalued the company at less than half the acquisition price,” he told Carlson. Musk took Twitter private in a $44 billion deal and The Information recently said he’d offered Twitter employees new equity grants valuing the company at $20 billion.
During Monday’s interview, Musk expressed concern about the control and influence that Microsoft has over OpenAI, and the startup’s transition away from being a nonprofit operation.
He also said he was worried that chatbots had become too politically correct, and that his AI company would focus on truth and trying to “understand the nature of the universe.”
Read more: Musk Incorporates X.AI, Suggesting Plans for OpenAI Rival
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P. | Tech Giants |
Alphabet CEO Pichai Set To Testify In Google Play Trial
Alphabet Inc. Chief Executive Officer Sundar Pichai is set to be called by Epic Games Inc. to testify in an antitrust trial over Google Play policies that could threaten billions of dollars in revenue generated by the app marketplace.
(Bloomberg) -- Alphabet Inc. Chief Executive Officer Sundar Pichai is set to be called by Epic Games Inc. to testify in an antitrust trial over Google Play policies that could threaten billions of dollars in revenue generated by the app marketplace.
Pichai and Epic’s CEO Tim Sweeney have been listed as witnesses in a trial scheduled to start Nov. 6 in San Francisco federal court over whether Google Play policies are unlawful and thwart competition, according to court filings. The high-stakes fight kicked off after Epic sued Alphabet’s Google in 2020 claiming that its app store’s distribution, payment and fee policies are unlawful.
Why App Store Fees Are Drawing Fire Worldwide: QuickTake
The dispute is part of a sprawling antitrust fight that also includes complaints filed by attorneys general of almost three dozen states, consumers and Match Group Inc., all of whom accuse Google of acting like a monopolist.
Pichai is also scheduled to testify in coming weeks in the ongoing Washington trial in a suit brought by the US Justice Department accusing Alphabet of maintaining a monopoly in web search.
Last month, Alphabet tentatively settled claims in complaints brought by consumers and state attorneys general that Google Play abuses its control over Android mobile applications. Terms of the deal weren’t disclosed in court filings. The settlement, if finalized, would narrow the sweeping antitrust fight, leaving Google to defend against Epic and Match’s claims that it used monopoly power to crush rivals in the Android app distribution market.
Pichai is expected to be questioned at the witness stand for an hour by Epic’s lawyers on topics including Android business practices and Google’s agreements with wireless carriers and mobile device makers, Thursday’s court filings show. Google’s lawyers may separately call Pichai to the witness stand for 30 minutes to defend its app marketplace policies.
Epic and Google’s attorneys plan to call Sweeney to the witness stand for 90 minutes each. His testimony will cover Epic’s Games Store business and the game maker’s experience with Google Play and Android.
The case is In Re Google Play Store Antitrust Litigation, 21-md-02981, US District Court, Northern District of California (San Francisco).
(Updates with details on Google tentative settlement with states, consumers. An earlier version of the story corrected the spelling of Google’s app marketplace.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P. | Tech Giants |
Artificial intelligence is a top investment priority for business leaders.
More than two-thirds of US CEOs rank investment in generative AI as a primary priority for their company, according to a new KPMG survey of 400 US chief executives.
"This is not hype," KPMG US chair Paul Knopp told Yahoo Finance Live (video above). "It will be disruptive, and CEOs are paying close attention."
The AI boom, sparked by OpenAI's release of ChatGPT late last year, has quickly taken over corporate America. In the last week alone, Amazon (AMZN) announced a $4 billion investment in AI startup Anthropic; Meta (META) began rolling out new generative AI tools for advertisers; and Zoom (ZM) unveiled AI products to compete with tech giants Microsoft (MSFT), which owns OpenAI, and Google (GOOG, GOOGL).
Goldman Sachs predicts AI investments will accelerate rapidly and amount to around $200 billion globally by 2025. Over the long term, Goldman sees AI-related investments peaking as high as 4% of US GDP.
Jefferies senior analyst Brent Thill recently told Yahoo Finance Live he sees Microsoft, Amazon, and Google as the winners as corporate spending shifts to AI, although he cautioned it’s far from a "zero-sum game."
While excitement around AI is clear, and businesses are making it a top priority, it may take some time for those investments to pay off.
KPMG’s survey found that 62% of CEOs expect to see a return on their AI investments within three to five years, while 23% expect returns in just one to three years.
"AI investments are still at a fairly nascent stage at the moment, and today’s investments are largely around ideation," Knopp added. "We are going to see increasing use cases of generative AI in many different industries. … It will be disruptive, and you see that reflected in our survey of CEOs." | Tech Giants |
M&A deals involving large tech companies may get harder as US regulators ramp up scrutiny.
If regulators increase scrutiny, it could deter other large tech companies from buying startups.
Experts say if late-stage startups have fewer exit options, it makes it harder to keep innovating.
US regulators are cracking down on Big Tech's bids to swoop up startups — and that could have huge implications for the broader tech M&A scene.
The US Department of Justice is planning to block Adobe's $20 billion proposed purchase of the design software startup Figma, according to Bloomberg. That reported challenge also comes on the heels of the US Federal Trade Commission's scrutiny of Microsoft's $69 billion deal to buy Activision Blizzard. And it's not just US regulators casting a critical eye upon these deals: UK and European Union officials are also cracking down on Big Tech M&A.
If regulators seek to block acquisitions more aggressively, that could further dull the appetite for other large corporations to seek out such purchases — and thereby make it harder for smaller companies to see viable exit options. That in turn makes it hard to attract talent, keep growing, and could ultimately have ripple effects on innovation in the tech ecosystem, lawyers, analysts, and investors told Insider.
"There's been a lot of political pressure building up on just big tech in general," said RBC analyst Rishi Jaluria. "It's just going to take a longer time for deals to close."
Preparing for tougher M&A battles
Large companies are already bracing for more challenges to potential deals. Stephen Amdur, a tech m&a lawyer at law firm Pillsbury Winthrop Shaw Pittman told Insider that he is advising clients, mainly buyers, to build in stronger protections in order to safeguard them in case the deal falls apart.
For example, Adobe faces a $1 billion fee if its acquisition of Figma doesn't go through. Although buyers may want lower fees and looser commitments due to the regulatory environment, sellers will be less inclined to agree to a deal like that, Amdur said.
"A busted deal is very disruptive on a target company," he said.
Yet acquirers may be disinclined to agree to such hefty breakup fees in their offers, said Zach DeWitt, a partner at Wing Venture Capital.
A longer process also means more uncertainty for all the employees of that startup. One of the perks of joining a startup is getting stock options in the company, which they can convert into shares — and eventually cash — when a company goes public or gets acquired.
But with a dormant IPO market and more uncertainty around M&A, there may be less incentive to work at a startup, which could eventually make it harder for such companies to recruit and retain talent, Jaluria said.
More challenges to proposed tech M&A deals may also mean that the pool of potential acquirers shrinks. If large corporations are deterred from strategic M&A, startups may turn more to private equity and other buyout firms for an exit, said Andrew Sherman, a partner at the law firm Brown Rudnick.
That's not necessarily a good thing for those startups, he added: "That's going to affect the terms and valuations, as well as the growth possibilities down the road."
Fostering innovation rather than hindering it
Some lawyers and tech analysts also make the argument that acquisitions by tech giants can actually offer startups more resources to grow.
"The classic criticism is that large companies are buying small companies so that they can shelve the technology and eliminate a competitor," Sherman said. "I don't think that's as true as the myth would portend."
Microsoft's purchase of LinkedIn in 2016 is a prime example of this, according to Jaluria.
"LinkedIn was mainly an HR tool when they got bought and now has become a big sales tool that a lot of salespeople use. It's become a great marketing tool," Jaluria said. "I would argue LinkedIn is a better company today and doing better under the Microsoft ownership than it would've done on its own."
Others argue that M&A is actually one of the critical factors driving tech innovation. IPOs and acquisitions usually result in payouts to investors, founders, and employees, DeWitt of Wing Venture Capital said. Those people then invest in more startups.
"It's part of the flywheel, those liquidity events," he said. "I'm a bit concerned at what the DOJ is saying."
Of course, there are cases where a large tech company seeks to buy out a smaller, more innovative competitor because it is scared of getting displaced.
That will be the key issue should the DOJ challenge Adobe's purchase of Figma, said Michael Carrier, a Rutgers Law School professor and antitrust expert.
"If this is viewed as a 'horizontal' merger, courts are more likely to uphold a government challenge because the merger removes a company from the market," he said. "If it's a 'vertical' merger where the firms don't compete, it's more likely to be upheld."
Figma and Adobe say they don't directly compete now but have had rival products in the past. Adobe has publicly said that its XD product, which competed with Figma, has flopped.
Ultimately, preserving innovation should be regulators' priority, lawyers and analysts told Insider.
"There has to be the hope and dream of selling to a larger tech company some day," Sherman said. By making that more challenging, he added, "you're creating a ripple effect through the ecosystem that will quash innovation."
Read the original article on Business Insider | Tech Giants |
A screen grab shows the Microsoft Teams application's error page after Microsoft said that it was investigating an outage where users were unable to access the app or leverage any features on the app, July 21, 2022. Microsoft Teams/Handout via REUTERS Register now for FREE unlimited access to Reuters.comJuly 21 (Reuters) - Microsoft Corp's (MSFT.O) messaging application MS Teams was down for thousands of users on Thursday, according to an outage tracking website, and the company said it was investigating the disruption.The Redmond, Washington-based company pinpointed the disruption "on a recent deployment that contained a broken connection to an internal storage service", but did not disclose the number of users affected by the outage.MS Teams forms an integral part of daily operations for businesses as workers use the service to communicate internally, message each other, make calls and organize their workflow.Register now for FREE unlimited access to Reuters.comThere were more than 4,800 incidents of people who reported issues with Microsoft Teams on Wednesday, said Downdetector.com, which tracks outages by collating status reports from sources including user-submitted errors on its platform.More than 1,457 users are currently affected, Downdetector said. The web monitoring firm also showed there were more than 150 incidents of people reporting issues with Microsoft Office 365.Microsoft tweeted it has identified downstream impact to multiple Microsoft 365 services with Teams integration, such as Microsoft Word, Office Online and SharePoint Online."We've taken action to reroute a portion of traffic to provide some relief within the environment," it said.Microsoft in its earnings call in January had said that Teams surpassed 270 million monthly active users, as demand for remote business-oriented teleconferencing and messaging tools soared and became a key fixture for organizations during the COVID-19 pandemic as people worked from homes.Other big technology companies have also been hit by outages in the past year, with a near six-hour disruption at Meta Platforms (META.O) keeping WhatsApp, Instagram and Messenger out of reach for billions of users last October. read more Register now for FREE unlimited access to Reuters.comReporting by Akriti Sharma in Bengaluru; Additional reporting by Shivam Patel and Anirudh Saligrama, Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
Ominous clouds on China’s tech horizons
Chinese companies as varied as Tencent, Huawei, Baidu, Alibaba, and Xiaomi not only dominate China’s internet, e-commerce, telecommunications, and smart device industries but have become major players on the global stage. With the pandemic now ebbing in China, there is hope in some quarters that its tech industry will lead the nation in a swift recovery.
But not so fast.
Like the mythical ouroboros or ancient dragon that in a circular depiction eats itself tail-first, the state-enterprise model that is central to China’s 40 years of economic growth is at risk of self-destruction.
While Chinese tech companies should be credited for hard work and smart strategies, their decades-long success is largely a function of their unique governance model. Whereas most Western business and government policy makers view China’s companies as independent, multi-billion-dollar enterprise, they fail to appreciate that what they see is only the nose of a multi-trillion-dollar beast. As we describe in our just-released book, “Enterprise China,” Chinese companies are part of an entire ecosystem of companies tied together by the largest entity on the planet (by employment — the second-largest by revenues): the Chinese State.
Although Beijing no doubt plays a prominent role, the central government is only part of the state picture, capturing 45 percent of total state revenues in 2021. Often overlooked are the powerful provincial and municipal governments, which took in 55 percent of all fiscal revenues ($1.74 trillion in total) in 2021. As an example of the weight that municipalities can bring to the party, consider the city of Shanghai’s $1.5 billion fund to “nurture” tech companies, which includes taking equity positions in start-ups.
Enterprise China consists of the roughly 150,000 state-owned enterprises. Collectively, these bring in over $9.8 trillion in revenue, and constitute 61 percent of all Chinese firms on the Fortune Global 500 list. Their economic production is about the same as the nominal GDP of Germany and larger than the economies of India and France.
But the observant reader might note that many of the companies we listed at the beginning of this article — such as Alibaba — are not technically state-owned. While not state-owned, the state nonetheless often has small ownership holding, through which they gain owner’s rights. Over the last eight years, Beijing has been actively acquiring minor — often limited to 1 percent — shares, through “special management shares,” of Chinese tech giants like Alibaba, Tencent and ByteDance. However, even when the state owns none of the entity’s shares that does not mean that the company is independent and free of state influence.
One unique mechanism of influence is that all Chinese companies with more than 50 employees must have a Communist Party representative on site. This oversight does little to foster experimentation, the lifeblood of innovation. The fact that most of Huawei’s impressive advances in 5G have come from its tech centers outside China underscores the challenge of innovating inside China.
The willingness and ability of the Chinese state to exercise influence over private technology companies is illustrated through two high-profile cases. The first is Alibaba. In 2020, Alibaba’s market capitalization peaked at $665 billion. Its founder, Jack Ma, had an estimated net worth of $50 billion. As part of Alibaba’s ecosystem, Ma developed ANT Financial, which was set for an IPO that would have brought in $35 billion. This would have made it the largest IPO in history, valuing ANT at $315 billion, more than Société Générale, Deutsche Bank, Credit Suisse, Barclays, ING, Santander, and Goldman Sachs combined.
Then Ma made fateful comments about the government stifling innovation and needing to reform the country’s financial system. He was called in for questioning and subsequently disappeared for many months; the IPO was halted, Alibaba fined, and its share price plummeted by two-thirds.
A similar disappearing act is playing out today with tech king-pin Bao Fan, the founder and chairman of investment bank China Renaissance. Boa was behind the start-ups and public listings of many of China’s most successful tech companies. Then, he too went “missing,” as reported by his company. Chinese media reported that he was summoned for questioning by investigators looking into the behavior of one of his senior executives. He hasn’t been seen since.
Perhaps Boa was too slow in reading the tea leaves. Others, including Colin Huang, chairman of e-commerce company Pinduoduo, and Zhang Yiming, founder of TikTok, got out early, both separately announcing in 2021 that they would be stepping down to “try new things.”
China’s crackdown has sent shivers through its tech companies, resulting in an estimated decline of $1.2 trillion in market cap. The message is clear: Even though the state may not own you, it will play a central role in your strategic decisions … and in the tradeoff between political exigence and economic benefit, politics will prevail.
Two decades of research has well documented that the organizational culture changes and the new leadership capabilities required to successfully transform a company from imitation and expropriation to creation and innovation are staggering. To be clear, the question goes not
to the intelligence of Chinese businessmen or their innate ability to innovate. This is not in doubt. The question goes to the culture and systems needed to bring out, foster, and support the transfer of that intelligence and creativity into market-ready innovations.
Under the Enterprise China model, the state and business co-exist in a symbiotic partnership. Xi Jinping’s crackdowns on tech companies has shifted the balance strongly in favor of the state and risks choking the engine of the country’s long term economic ambitions. As a consequence, China’s much-anticipated return after the pandemic slump will likely be short-lived at best.
Those preoccupied with Chinese state interference in elections should take note. When the state oversteps its bounds, the story rarely ends well. Such will certainly be the case for Chinese technology companies.
Dr. Allen J. Morrison is a Professor of Global Management at Thunderbird School of Global Management at Arizona State University and former professor and associate dean at the Ivey Business School at Western University. He has authored over 60 articles and case studies, and 13 books. He has also served on the board of directors of a NASDAQ-listed Chinese technology company.
Dr. J. StewartBlack is the chief strategy officer at Squire Patton Boggs and adjunct professor of Global Leadership at INSEAD. He is also a keynote speaker, consultant, researcher, and author of 20 books. He has published many articles for executives in Harvard Business Review, Sloan Management Review, and Business Horizons.
They are co-authors of the new book “Enterprise China: Adopting a Competitive Strategy for Business Success”
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. | Tech Giants |
(Bloomberg) -- Federal Trade Commission Chair Lina Khan stopped short of explicitly calling for a breakup of Amazon.com Inc., but said that her agency would ask a judge to halt the company’s “illegal conduct” if its antitrust suit succeeds.
Most Read from Bloomberg
In her first public comments after the FTC filed a lawsuit accusing Amazon of monopolizing online marketplace services, Khan said businesses that want to sell their goods online were effectively forced to pay Amazon’s rates, including for advertising and logistics services.
“At the very least, any relief would require that the company halt those tactics,” Khan said at Bloomberg’s Washington office on Tuesday. “But as I noted, effective relief also needs to be restoring competition to this market, which we’ll be asking the judge to do as well.”
The complaint, filed on Tuesday, doesn’t ask for specific remedies, but mentions “structural relief,” which in antitrust lingo often means divesting an asset or breaking up a business. Amazon says it will defend itself against the lawsuit, and that what the FTC seeks will lead to higher prices and hurt businesses that rely on Amazon to get their goods to shoppers.
“This case is about the competition that has been lost because of Amazon’s monopolization and unlawful tactics,” Khan said.
FTC’s Khan Says Amazon Suit Would Restore Competition (Video)
The Amazon case is a career-defining moment for Khan, the youngest ever FTC chair whose blockbuster 2017 law review article about the e-commerce giant catapulted her to celebrity status in the world of antitrust. Before joining the FTC, Khan worked on a congressional subcommittee investigating the four major US tech giants, which culminated in a 2020 report finding evidence of market consolidation. The lawsuit is part of an effort by antitrust enforcers to crack down on the biggest tech platforms, coming after monopolization suits filed against Alphabet Inc.’s Google and Meta Platforms Inc.
As FTC chair, Khan has sought to more aggressively police mergers, particularly those by the biggest technology companies, as well as anticompetitive conduct by the largest US companies. But the agency’s results have been mixed as it suffered two court defeats so far this year.
In a complaint filed in federal court in Seattle, the FTC and 17 states accused Amazon of engaging in conduct to exclude rivals in online marketplace services and stifle competition. The company is also accused of illegally forcing merchants who sell on its online marketplace to use its logistics service and imposing policies that lead to artificially high prices for consumers.
Most Read from Bloomberg Businessweek
©2023 Bloomberg L.P. | Tech Giants |
Amazon, Google To Expand India Investments After Modi Visit
Amazon.com Inc. and Alphabet Inc.’s Google are committing to ramp up investments in India.
(Bloomberg) -- Amazon.com Inc. and Alphabet Inc.’s Google are committing to ramp up investments in India as the tech giants seek to spur growth in a key market.
The move follows a meeting held by US President Joe Biden and Indian Prime Minister Narendra Modi held with top technology executives, including of Amazon and Google, at the White House Friday.
Amazon announced it will invest an additional $15 billion in India by 2030. That includes plans by its AWS division to put $12.7 billion into cloud infrastructure in the South Asian nation to meet rising customer demand.
Google will open a global financial-technology center in Gujarat International Finance Tech-City, more commonly known as GIFT City in Modi’s home state, Alphabet Chief Executive Officer Sundar Pichai said.
“It’ll cement India’s fin-tech leadership,” he said, referring to Indian innovations such as Unified Payments Interface that allows people to use their smartphones as a tool for commerce, and Aadhaar. “We’re going to build on that foundation and take it globally,” Pichai said.
UPI is India’s state-backed peer-to-peer payments solution and several companies including Google use it to offer services in the country. Aadhaar is a biometric ID built by the state for citizens, which is used for payments and various other services.
Google will also bring its artificial intelligence chatbot Bard to more Indian languages, Pichai said.
Google has previously said it is developing an AI model that can handle more than 100 Indian languages across speech and text, a drive that would widen internet access beyond the country’s urban English-speaking minority.
“Google’s decision to establish its global fintech operations center in GIFT City is a testament to India’s growing prominence in the fintech landscape,” said Tapan Ray, chief executive officer of GIFT City, “We look forward to hosting Google”
India remains a high priority market for most big US internet firms such as Meta Platforms Inc., Amazon, Google and Twitter, but one where they’ve all had to face regulatory headaches.
A slew of economic deals were announced during Modi’s visit to the US, including Micron Technology Inc. to invest more than $800 million toward a $2.75 billion semiconductor assembly and testing facility in India.
(Updates with comment in 9th paragraph)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P. | Tech Giants |
Death to royalties — AV1's Alliance for Open Media wants more royalty-free standards. Enlarge / The Alliance for Open Media logo.Alliance for Open Media Google can do basically whatever it wants regarding video and web standards. YouTube is the world's most popular video site. Chrome is the world's most popular browser. Android is the world's most popular operating system. Anything Google wants to roll out can immediately have a sizable user base of clients, servers, and content. From there, it's just a matter of getting a few partners to tag along. This is how Google's next-generation AV1 video codec is being rolled out, and next, Google is setting its sights on HDR and 3D audio standards.
Protocol's Janko Roettgers has a report on "Project Caviar," Google's plan to take on Dolby and create royalty-free alternatives to its HDR standard (Dolby Vision) and its 3D audio standard (Dolby Atmos). Dolby's old media business model relies on royalty fees from hardware manufacturers and support from content creators. The company's technology is deeply embedded in movie theaters and Blu-rays, and more modern streaming companies like Apple are big backers of Dolby technology. That all costs money, though, and Protocol's report says $50 streaming sticks end up having around $2 of that price tag go to Dolby.
Surround sound has been a movie feature forever with various numbers of front, back, and side speakers, but Dolby Atmos adds height into the equation. If you take a 5.1 or 7.1 speaker setup—that's three front speakers, two back, a subwoofer, and for 7.1, two side speakers—Dolby Atmos adds four overhead speakers into the mix, allowing sound to pan overhead of the viewer. Atmos is supported by Apple, Netflix, HBO Max, and Disney+. Google is tackling Dolby via the "Alliance for Open Media" standards group, which counts Amazon, Apple, Arm, Google, Intel, Meta, Microsoft, Mozilla, Netflix, Nvidia, and Samsung in its "founding members" group. This is the same group behind the AV1 standard, which grew out of Google's purchase of On2 and the open sourcing of its video codec.
Neither Dolby Vision nor Atmos competitors require new codec development. Google's strategy is mostly about standardizing a way to ship audio and video data that doesn't involve paying Dolby and branding it well enough to compete. To start, the group already has specs for an "Immersive Audio Container" published on the web, which describes itself as a "codec-agnostic audio bitstream format to deliver three-dimensional sound fields that can be used for multichannel sound playback." For HDR, the group wants to adopt the HDR10+ standard, which was originally cooked up by Samsung but lacks content.
It's not yet known what consumer-facing brand these standards will be for. That's a big deal, since the name "Dolby" still holds a lot of sway with home theater enthusiasts, and that means streaming apps can market the Dolby brand as a premium add-on, creating demand for the standards. Few companies have enough sway over the media space to push a new standard, but Google is one of them. As we've already seen with AV1, pushing support into YouTube, Android, Chrome, and any hardware manufacturers seeking to license access to YouTube is a powerful cudgel. | Tech Giants |
After years of tantalizing hints that a passwordless future is just around the corner, you're probably still not feeling any closer to that digital unshackling. Ten years into working on the issue, though, the FIDO Alliance, an industry association that specifically works on secure authentication, thinks it has finally identified the missing piece of the puzzle. On Thursday, the organization published a white paper that lays out FIDO's vision for solving the usability issues that have dogged passwordless features and, seemingly, kept them from achieving broad adoption. FIDO's members collaborated to produce the paper, and they span chipmakers like Intel and Qualcomm, prominent platform developers like Amazon and Meta, financial institutions like American Express and Bank of America, and the developers of all major operating systems—Google, Microsoft, and Apple. The paper is conceptual, not technical, but after years of investment to integrate what are known as the FIDO2 and WebAuthn passwordless standards into Windows, Android, iOS, and more, everything is now riding on the success of this next step.“The key to being successful for FIDO is being readily available—we need to be as ubiquitous as passwords,” says Andrew Shikiar, executive director of the FIDO Alliance. “Passwords are part of the DNA of the web itself, and we’re trying supplant that. Not using a password should be easier than using a password.”In practice, though, even the most seamless passwordless schemes are not quite there. Part of the challenge simply lies with the enormous inertia passwords have built up. Passwords are difficult to use and manage, which drives people to take shortcuts like reusing them across accounts and creates security issues at every turn. Ultimately, though, they’re the devil you know. Educating consumers about passwordless alternatives and getting them comfortable with the change has proven difficult.Beyond just acclimating people, though, FIDO is looking to get to the heart of what still makes passwordless schemes tough to navigate. And the group has concluded that it all comes down to the procedure for switching or adding devices. If the process for setting up a new phone, say, is too complicated, and there’s no simple way to log into all of your apps and accounts—or if you have to fall back to passwords to reestablish your ownership of those accounts—then most users will conclude that it’s too much of a hassle to change the status quo.The passwordless FIDO standard already relies on a device’s biometric scanners (or a master PIN you select) to authenticate you locally without any of your data traveling over the internet to a web server for validation. The main concept that FIDO believes will ultimately solve the new device issue is for operating systems to implement a “FIDO credential” manager, which is somewhat similar to a built-in password manager. Instead of literally storing passwords, this mechanism will store cryptographic keys that can sync between devices and are guarded by your device’s biometric or passcode lock. At Apple’s Worldwide Developer Conference last summer, the company announced its own version of what FIDO is describing, an iCloud feature known as “Passkeys in iCloud Keychain,” which Apple says is its “contribution to a post-password world.”“Passkeys are WebAuthn credentials with the amazing security that the standard provides, combined with the usability of being backed up, synced, and working on all of your devices,” Garrett Davidson, an engineer for Apple’s app authentication experience team explained at the conference in June. “We’re storing them in iCloud Keychain. Just like everything else in your iCloud Keychain, they’re end-to-end encrypted, so not even Apple can read them … And they’re very easy to use. In most cases, it just takes a single tap or click to sign in.”If you lost your old iPhone, for example, and you’re unboxing a new one, the transfer process can happen simply through whatever setup flow Apple offers at the time. If you lost your iPhone and decide to switch to Android, or are moving between any other two digital ecosystems, the process may not be quite as smooth. But FIDO’s white paper also includes another component, a proposed addition to its specification that would allow one of your existing devices, like your laptop, to act as a hardware token itself, similar to stand-alone Bluetooth authentication dongles, and provide physical authentication over Bluetooth. The idea is that this would still be virtually phish-proof since Bluetooth is a proximity-based protocol and can be a useful tool as needed in developing different versions of truly passwordless schemes that don’t have to retain a backup password.Christiaan Brand, a product manager at Google who focuses on identity and security and collaborates on FIDO projects, says that the passkey-style plan follows logically from the smartphone or multi-device image of a passwordless future.“This grand vision of ‘Let’s move beyond the password,’ we’ve always had this end state in mind to be honest, it just took until everyone had mobile phones in their pockets,” Brand says. Google joined FIDO just months after its formation in 2013. “Hopefully for the users it will be a small behavioral change, but the technology is a giant leap forward.”To FIDO, the biggest priority is a paradigm shift in account security that will make phishing a thing of the past. Attackers have become masters at tricking users into unintentionally handing over their passwords, and even two-factor authentication codes or approval prompts can be exploited. Such scams facilitate criminal profit, but they have also played a role in espionage and destructive cyberattacks that have shaped geopolitics and global events.Even if FIDO has finally found the magic formula, passwords won’t disappear overnight for a host of reasons. The most important is that not all people own a smartphone at all, much less multiple devices that can backstop each other if one is lost or stolen. And it will take years of turnover before everyone around the world has access to newer devices and operating system versions that support FIDO’s passwordless push. In the meantime, tech companies will need to maintain both passwordless and password-based login schemes. In its new white paper and elsewhere, FIDO is working to support this transition, but as with any other tech migration (ahem, Windows XP), the road will inevitably prove arduous.Additionally, while FIDO’s proposal is a major security improvement over passwords in many ways, it isn’t infallible. Its success will depend on the security of each operating system’s implementation. You’re already likely all too familiar with the nightmare of being forced to trust the authentication scheme of each website and service you have an account with, but no alternative is perfect. FIDO’s vision will simply create a different, if potentially better and more sensible, set of weaknesses and points of failure. As FIDO itself notes, its plan for mainstream adoption of passwordless authentication is meant as a general-purpose solution and may not always fit the most extreme security requirements.And after all that, the tech industry will still need to turn FIDO’s white paper into actual features that are easy to use and that convert people into passwordless believers. “Schemes like Passkey could work and be more secure than passwords as they stand now,” says Johns Hopkins cryptographer Matthew Green. “But if the user interface for inter-device transfers sucks on some devices, it will suck for all of them, which would continue to discourage use.”After almost a decade of work, people looking for relief from passwords are left to hope that at this point FIDO is too big to fail. When asked if this is really it, if the death knell for passwords is truly, finally tolling, Google’s Brand turns serious, but he doesn’t hesitate to answer: “I feel like everything is coalescing,” he says. “This should be durable.”More Great WIRED Stories📩 The latest on tech, science, and more: Get our newsletters!Driving while baked? Inside the high-tech quest to find outHorizon Forbidden West is a worthy sequelNorth Korea hacked him. He took down its internetHow to set up your desk ergonomicallyWeb3 threatens to segregate our online lives👁️ Explore AI like never before with our new database✨ Optimize your home life with our Gear team’s best picks, from robot vacuums to affordable mattresses to smart speakers | Tech Giants |
Apple Inc’s stock market value ended a trading session above $3 trillion for the first time on Friday, lifted by signs of improving inflation and bets that the iPhone maker will successfully expand into new markets.
Shares of the world’s most valuable company jumped 2.3 percent to $193.97, giving it a market capitalisation of $3.05 trillion, Refinitiv data showed.
Apple’s market value briefly peaked above $3 trillion for the first time on January 3, 2022, in intraday trading before closing the session just below that mark.
The latest gains in Apple shares – 49 percent so far in 2023 – come as technology stocks rebound on bets that the United States Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence.
The expectations around interest rates were based on a report on Friday that showed an inflation index that the central bank closely monitors had tumbled last month to its lowest level since April 2021, pulled down by lower petrol prices and slower-rising food costs.
The inflation index showed that prices rose 3.8 percent in May from 12 months earlier, down sharply from a 4.4 percent year-over-year surge in April.
At the same time, consumers barely increased their spending last month, leading to predictions of a slowing economy and a slowdown in rate increases by the Fed.
Apple’s most recent quarterly report in May showed revenue and profits fell but still beat analysts’ expectations. Along with a steady track record of stock buybacks, the financial results reinforced its reputation as a safe investment at a time of global economic uncertainty.
“It’s a testament to one of the greatest publicly traded companies that’s ever existed. It continues to grow and diversify its revenue streams, has shareholder-friendly management, buys back shares, throws off a dividend and has a fortress balance sheet with strong and defendable cash flows,” said Art Hogan, chief market strategist at B Riley Wealth.
Apple’s $3 trillion milestone follows the June 5 launch of a pricey augmented-reality headset, its riskiest bet since the introduction of the iPhone more than a decade ago.
The stock has climbed about 7 percent since then, compared with the S&P 500’s 4 percent rise.
Currently, four other US companies have a valuation of more than $1 trillion: Alphabet Inc, Microsoft, Amazon.com Inc and Nvidia Corp. | Tech Giants |
If you haven’t noticed, the internet is frequently on fire. Overseas cyberattacks are hitting public services like healthcare at home. Data breaches are the new school “snow days.” Small towns and local governments are largely unable to fend off ransomware attacks on their own. Nation-state hackers are undermining human rights and the security and privacy of millions by hacking into phones using undisclosed security flaws. And the emerging world of web3 balances precariously on the fragile foundations of Web 2.0’s problematic past.
But it’s not all doom and gloom. This year, TechCrunch is taking on some of the biggest security and privacy problems head-on at Disrupt 2023 with the sharpest minds and pros in the industry. And there is a lot to talk about.
The debut Security Stage is the one-stop shop for all things security and privacy at TechCrunch Disrupt 2023. By drawing on firsthand reporting from TechCrunch’s security desk this past year, we’re exploring the most pressing and important issues facing tech giants, startups and billions of citizens around the world with the people who know the challenges best.
How do we protect our most valuable information from hostile states without establishing U.S. data laws at home? What can early companies do today to protect users’ data from overreaching surveillance? How do we know to trust the security of the phones in our pockets? Can governments keep cyberspace safe and protect our information without compromising its values or violating human rights? Will web3 be the future financial powerhouse without fixing the problems from yesteryear? Just how on fire are we?
We’ll hear from founders trying to solve the problems and how governments are reacting and responding to the growing threats like spyware, cyberattacks on public services, and election integrity. And we’ll hear from frontline defenders and seasoned professionals with a collective firehose of experience and insight to help today’s emerging companies prepare for the challenges ahead. In previous years we’ve heard from U.S. government agencies like CISA and the NSA, federal lawmakers working to protect Americans’ data, top security executives, and human rights defenders.
Early Bird passes are now on sale. Book your pass today and save $800 before prices go up May 12. | Tech Giants |
"The major online platforms are breaking up with news," reports the New York Times: Campbell Brown, Facebook's top news executive, said this month that she was leaving the company. Twitter, now known as X, removed headlines from the platform days later. The head of Instagram's Threads app, an X competitor, reiterated that his social network would not amplify news. Even Google — the strongest partner to news organizations over the past 10 years — has become less dependable, making publishers more wary of their reliance on the search giant. The company has laid off news employees in two recent team reorganizations, and some publishers say traffic from Google has tapered off... Some executives of the largest tech companies, like Adam Mosseri at Instagram, have said in no uncertain terms that hosting news on their sites can often be more trouble than it is worth because it generates polarized debates...
Publishers seem resigned to the idea that traffic from the big tech companies will not return to what it once was. Even in the long-fractious relationship between publishers and tech platforms, the latest rift stands out — and the consequences for the news industry are stark. Many news companies have struggled to survive after the tech companies threw the industry's business model into upheaval more than a decade ago. One lifeline was the traffic — and, by extension, advertising — that came from sites like Facebook and Twitter. Now that traffic is disappearing. Top news sites got about 11.5% of their web traffic in the United States from social networks in September 2020, according to Similarweb, a data and analytics company. By September this year, it was down to 6.5%...
The sharp decline in referral traffic from social media platforms over the past two years has hit all news publishers, including The New York Times. The Wall Street Journal noticed a decline starting about 18 months ago, according to a recording of a September staff meeting obtained by the Times. "We are at the mercy of social algorithms and tech giants for much of our distribution," Emma Tucker, the Journal's editor-in-chief, told the newsroom in the meeting...
Google cut some members of its news partnership team in September, and this week it laid off as many as 45 workers from its Google News team, the Alphabet Workers Union said. (The Information, a tech news website, reported the Google News layoffs earlier.) "We've made some internal changes to streamline our organization," Jenn Crider, a Google spokesperson, said in a statement... Jaffer Zaidi [Google's vice president of global news partnerships], wrote in an internal memo reviewed by the Times that the team would be adopting more artificial intelligence. "We had to make some difficult decisions to better position our team for what lies ahead," he wrote...
Privately, a number of publishers have discussed what a post-Google traffic future may look like and how to better prepare if Google's AI products become more popular and further bury links to news publications.
Publishers seem resigned to the idea that traffic from the big tech companies will not return to what it once was. Even in the long-fractious relationship between publishers and tech platforms, the latest rift stands out — and the consequences for the news industry are stark. Many news companies have struggled to survive after the tech companies threw the industry's business model into upheaval more than a decade ago. One lifeline was the traffic — and, by extension, advertising — that came from sites like Facebook and Twitter. Now that traffic is disappearing. Top news sites got about 11.5% of their web traffic in the United States from social networks in September 2020, according to Similarweb, a data and analytics company. By September this year, it was down to 6.5%...
The sharp decline in referral traffic from social media platforms over the past two years has hit all news publishers, including The New York Times. The Wall Street Journal noticed a decline starting about 18 months ago, according to a recording of a September staff meeting obtained by the Times. "We are at the mercy of social algorithms and tech giants for much of our distribution," Emma Tucker, the Journal's editor-in-chief, told the newsroom in the meeting...
Google cut some members of its news partnership team in September, and this week it laid off as many as 45 workers from its Google News team, the Alphabet Workers Union said. (The Information, a tech news website, reported the Google News layoffs earlier.) "We've made some internal changes to streamline our organization," Jenn Crider, a Google spokesperson, said in a statement... Jaffer Zaidi [Google's vice president of global news partnerships], wrote in an internal memo reviewed by the Times that the team would be adopting more artificial intelligence. "We had to make some difficult decisions to better position our team for what lies ahead," he wrote...
Privately, a number of publishers have discussed what a post-Google traffic future may look like and how to better prepare if Google's AI products become more popular and further bury links to news publications. | Tech Giants |
Senate Majority Leader Charles Schumer (D-N.Y.) is facing renewed pressure from advocacy groups to prioritize antitrust bills targeting tech giants this Congress.
More than 20 organizations led by Demand Progress, an advocacy group aimed at advancing competition in the tech sector, sent a letter to Schumer on Monday pressing him to prioritize two key antitrust bills.
Both measures passed the House and Senate Judiciary committees with bipartisan support but did not become law.
The proposals target the nation’s four largest tech companies, Meta, Apple, Alphabet and Amazon. They faced fierce pushback from the companies and industry groups that represent the companies, which spent millions of dollars to oppose the bills.
None of the four companies responded to a request for comment from a Hill reporter on Monday.
The industry also fought the proposals with aggressive advertisement campaigns arguing the proposals would dismantle services consumers enjoy and lead to security concerns.
Supporters of the bills said those allegations misrepresented the bills and were scare tactics.
“Americans across party lines support government action to rein in Big Tech’s monopoly abuses, and securing the passage of these bills will advance President Biden’s vision for a competitive tech sector and demonstrate the seriousness of Congress on these issues. We hope your leadership prioritizes this in the months ahead,” the organizations wrote, according to a copy of the letter exclusively shared with The Hill.
One bill the groups are pushing for would prevent companies from “self-preferencing” their own products and services over those of their rivals. For example, the bill would ban Amazon from placing its products higher in search results.
The other proposal is a bill aimed at improving competition in the market for smartphone applications. The measure, which largely targets Google parent company Alphabet and Apple, aims to restrict the companies from imposing certain rules, such as collecting fees from in-app payments.
In the letter, the groups also highlighted Biden’s support for boosting competition in the tech sector. The president wrote an op-ed in The Wall Street Journal last month pushing for sweeping reform for tech giants, including a call to “bring more competition back to the tech sector” but stopped short of backing specific proposals.
Other signatories of the letter include Public Knowledge, Athena, the Center for Digital Democracy and the Open Markets Institute. | Tech Giants |
The rise of artificial intelligence is entrenching more economic and political power in the hands of Big Tech companies, according to researchers at New York University (NYU) who argue AI must undergo more scrutiny and regulation.
AI Now, a research institute at NYU, released a new report detailing how major tech companies wield significant control over AI, arguing such influence must be addressed now before the situation gets too out of hand.
"This report is written with this task in mind: we are drawing from our experiences inside and outside government to outline an agenda for how we — as a group of individuals, communities, and institutions deeply concerned about the impact of AI unfolding around us — can meaningfully confront the core problem that AI presents, and one of the most difficult challenges of our time: the concentration of economic and political power in the hands of the tech industry — Big Tech in particular," the document states.
The authors add that AI development has been "foundationally reliant" on resources controlled by Big Tech, including data and computer power. Plus, they write, Big Tech companies have gained geopolitical importance by playing a central role in the U.S.-China race for AI supremacy, thereby conflating "the continued dominance of Big Tech as synonymous with U.S. economic prowess, and [ensuring] the continued accrual of resources and political capital to these companies."
The report also argues that Big Tech has shaped much of the narrative surrounding AI, such as the idea that AI needs "unrestricted innovation," that AI development goes hand in hand with societal progress, and that regulation stifles such progress.
According to Sarah Myers West, managing director of AI Now and co-author of the report, reform is necessary to fix a broken system that's moving in a potentially dangerous situation with unrestricted AI development.
"AI as we know it today has fundamental dependencies on resources that are consolidated among a handful of big tech firms, including massive amounts of data and computational power," West told Fox News Digital. "Because of this, any meaningful reform of AI will need to tackle Big Tech's advantage in the market through strong competition and privacy regulations. This is crucial as AI systems are already being integrated into infrastructures around us — regulators need to learn from the past decade of tech-enabled crises and move swiftly towards action."
A key theme throughout the report is that the public, not the tech industry, should define the future of AI, and that regulation is a key vehicle to make that happen.
"It's time for regulators, and the public, to ensure that there is nothing about artificial intelligence (and the industry that powers it) that we need to accept as given," AI Now writes. "This watershed moment must also swiftly give way to action: to galvanize the considerable energy that has already accumulated over several years towards developing meaningful checks on the trajectory of AI technologies. This must start with confronting the concentration of power in the tech industry."
AI Now presents several recommendations to discourage further consolidation of power under Big Tech. One is ensuring these companies collect no more data than is necessary — a practice known as data minimization — since they normally hold the most data and have the computing power to best utilize it.
Another proposal is to reform and better enforce antitrust laws to encourage competition not just between Big Tech giants but also between smaller tech companies.
The report also suggests various regulations for ChatGPT, BARD, and other "large-scale general purpose AI models."
The argument that AI must undergo stricter regulation was echoed this week by none other than Twitter CEO and tech billionaire Elon Musk, who told Fox News host Tucker Carlson in a wide-ranging interview that AI is too potentially dangerous to be left unregulated.
"I think we should be cautious with AI, and I think there should be some government oversight because it is a danger to the public," said Musk. "AI is more dangerous than, say, mismanaged aircraft design or production maintenance or bad car production … it has the potential, however small one may regard that probability, but it is non-trivial, it has the potential of civilization destruction."
However, other experts counter that emerging AI tech could make society wealthier and more productive if regulators stay out of the way — and that there's a national security component to consider as well.
"I completely sympathize with those who are afraid of it. And I share their fears," economist Peter St. Onge of the Heritage Foundation told Fox News Digital earlier this week. "Fundamentally, the most important question to me in AI is: 'Who is going to get there first?' And the most likely candidates are Silicon Valley and the Chinese version of Silicon Valley, which has deep Chinese government influence."
St. Onge said that when it comes down to the international AI race, he would prefer an outcome where U.S. "tech bros" are the authority of AI rather than the ruling Chinese Communist Party.
He also told Fox News Digital that regulations tend to kill jobs and effectively "attack" existing producers and companies.
"Tech is a river that makes us rich," said St. Onge. "The problem is everybody needs to get out of the way. We need to have a respect for the fundamental economic freedoms that we always had." | Tech Giants |
Google is following the Facebook playbook and threatening to cut off access to news in Canada unless lawmakers agree to gut legislation aimed at making tech companies pay publishers for their content.
This week, the tech giant began temporarily limiting access to news results in tests affecting around 4% of randomly selected users in Canada. Google’s self-imposed partial news blackout will last for five weeks and impact both web Search and the Discover feature on Android devices, according to CBC. A Google spokesperson confirmed those tests in a an email sent to Gizmodo.
“We’re briefly testing potential product responses to Bill C-18 that impact a very small percentage of Canadian users,” the spokesperson said. “We run thousands of tests each year to assess any potential changes to Search.”
The abrasive move comes in direct response to an online news bill called C-18 currently being debated by members of the Canadian parliament.
Introduced last spring, that bill would require Google, Facebook, and other internet companies to pay news publishers when they reproduce their content. Modeled after similar Australian legislation, the bill would open companies like Google up to binding arbitration if they refuse to pay publishers. Supporters of the effort, like Canadian Heritage Minister Pablo Rodriguez, say it would provide fair compensation to a news industry currently “in crisis.” Google, on the other hand, says the bill amounts to a “link tax.”
“We’ve been fully transparent about our concern that C-18 is overly broad and, if unchanged, could impact products Canadians use and rely on every day,” the Google spokesperson added. “We remain committed to supporting a sustainable future for news in Canada and offering solutions that fix Bill C-18.”
Google Canada Vice President Vice President and Country Managing Director Sabrina Geremia expanded on the company’s position in a blog post last year, claiming the bill could fundamentally alter the way Canadians access the internet.
“The ability to link freely between websites is fundamental to how the internet works,” Google Canada Vice President Vice President and Country Managing Director Sabrina Geremia said following news of the bill last year. “Canadians expect that when they search for information, they will have access to ALL the content the internet has to offer. Requiring payment for links risks limiting Canadians’ access to the information they depend on.”
The legislation could end up costing Google, a trillion dollar company, millions. A price estimate report released last fall by Canada’s Office of the Parliamentary Budget Officer estimated Google and Facebook would wind up paying around CA$329.2 (or roughly $242.99 USD) to news publishers per year. Those funds, according to the report, would cover around 30% of publishers’ overall editorial costs. Google’s search revenues raked in $42.60 billion in the fourth quarter alone last year.
Still, Canadian lawmakers don’t seem to be ready to back down just yet. In a statement sent to The Wall Street Journal, a spokesperson for Rodriguez said Canadian lawmakers were committed to pressuring Google to provide greater transparency and accountability.
Meta flexed its muscle last year and warned Canadian officials it could stop the sharing of news links in Canada (as it did in Australia a year prior) if C-18 passed as currently written. In a blog post, Meta said the bill “misrepresents the relationship between platforms and news publishers,” and inaccurately assumes Meta unfairly benefits off the backs of poorly paid news hounds. Moreover, the company said posts to news articles make up less than 3% of what users see in their Facebook feeds. With more than 2 billion daily active users worldwide though, that 3% figure can still account for mountains of news.
All this political jockeying from Google and Meta was really made possible by Meta, then known as Facebook, calling Australia’s bluff in 2021 over disagreements with similar legislation forcing tech firms to pay news publishers. Facebook held firm and ended up pulling the plug on news sharing in the country leaving an estimated 17 million users scrambling to figure out what just happened. Australian Treasurer Josh Frydenberg accused the company of “endangered public safety” during that time by limiting news access amid a pandemic. Facebook eventually reversed course after striking a more favorable agreement with the Canadian government
It’s still somewhat unclear how far Google’s willing to take its fight in Canada. Like Meta, Google previously threatened to cut Australian off from search but never ended up following through. Canadian officials, for now at least, seem willing to press on with the fight. In a statement, Rodriguez, Canada’s Heritage Minister said he was “disappointed” by Google’s decision to follow Facebook’s lead but said Canadians “won’t be intimidated.”
“All we’re asking the tech giants to do is compensate journalists when they use their work,” a spokesperson for Rodriguez told The Wall Street Journal. “Tech giants need to be more transparent and accountable to Canadians.” | Tech Giants |
The Pirate Party UK, a political party known for advocating digital rights and civil liberties in the digital age, has been at the forefront of the debate surrounding the Online Safety Bill. Drawing on the legacy of the Clipper Chip, an encryption controversy from the past, they actively engage in discussions to protect the rights of internet users in the United Kingdom. With concerns about the bill's potential impact on privacy, encryption, and freedom of expression, the party aims to strike a balance between enhancing online safety and safeguarding digital freedoms.
The Online Safety Bill:
The Online Safety Bill, currently in the final stages of the legislative process in the UK Parliament, seeks to regulate various aspects of online content, from harmful materials to illegal activities. While the intention to create a safer online environment is commendable, there are significant concerns about the bill's scope and potential consequences for individual rights.
Pirate Party UK's Concerns:
Impact on Privacy:
One of the most significant concerns voiced by the Pirate Party UK is the potential infringement on individuals' privacy rights. The bill's provisions give authorities the power to access private communications by requiring tech companies to scan chat messages for content related to child abuse or terrorism. This could lead to mass surveillance and undermine the fundamental right to private conversations.
Encryption Threat:
Drawing on the legacy of the Clipper Chip, the Pirate Party UK believes that weakening encryption or introducing backdoors, as exemplified by the infamous Clipper chip, would have far-reaching consequences for online security. They argue that strong encryption is essential for protecting sensitive data and personal communications from malicious actors. As the saying goes, "a back door for the good people is a back door for all."
Lack of Oversight:
The bill's lack of robust oversight mechanisms is another point of contention for the Pirate Party UK. While there have been calls for judicial oversight to ensure that scanning obligations adhere to human rights standards, the government's current stance falls short of providing sufficient checks and balances.
International Impact:
The Pirate Party UK emphasizes that the consequences of the Online Safety Bill extend beyond the UK's borders. If passed, the bill could set a dangerous precedent for other countries to follow, potentially leading to a global erosion of online privacy and security standards.
International Implications and Concerns:
The implications of the Online Safety Bill extend far beyond the United Kingdom, sparking concerns about how American tech giants like Facebook and Twitter will respond. It's well-known that tech mogul Elon Musk, renowned for his outspoken views, may not easily comply with what some view as a controversial law.
In particular, WhatsApp, a subsidiary of Facebook, has expressed strong reservations about the bill. In April, the platform went as far as threatening to exit the UK altogether if the Online Safety Bill's encryption provisions became law. "We won't lower the security of WhatsApp," affirmed the firm's chief, Will Cathcart, in an interview with The Guardian.
The relationship between international tech giants, national legislation, and digital privacy is becoming increasingly complex. As multinational corporations navigate the intricate web of global regulations, the Pirate Party UK's concerns about the potential for the bill to set a precedent in other countries become all the more relevant. It remains to be seen how these American tech giants, with their significant user bases, will navigate the evolving landscape of online safety and privacy in the United Kingdom.
Existing Legislation: RIPA and Key Disclosure:
In the United Kingdom, the Regulation of Investigatory Powers Act 2000 (RIPA) has long been in place. Under RIPA, Part III, individuals can be required to decrypt information and provide encryption keys to government representatives without the need for a court order. Failure to comply with such requests can result in penalties, including imprisonment. This provision has been applied in various cases, raising concerns about its broad reach.
The intersection of RIPA with the proposed Online Safety Bill is a point of contention. Critics argue that the Online Safety Bill, with its potential for increased surveillance and data monitoring, may further amplify the concerns surrounding the existing key disclosure laws. Balancing the need for law enforcement access with individual privacy rights remains a key challenge in the evolving landscape of digital legislation.
The Legacy of the Clipper Chip:
The Clipper Chip, introduced in 1993, was a chipset promoted by the United States National Security Agency (NSA) as an encryption device with a built-in backdoor. This backdoor was intended to allow government access to encrypted communications. However, it was widely criticized for its vulnerabilities, including the potential for exploitation by malicious actors. The Clipper Chip serves as a historical reminder of the risks associated with backdoors in encryption, and the Pirate Party UK urges caution in repeating such mistakes.
Pirate Party UK's Proposed Changes:
In their commitment to safeguarding digital freedoms, the Pirate Party UK has proposed several changes and safeguards they believe should be incorporated into the Online Safety Bill:
Online Safety Bill Changes:
Enhanced Privacy Protections:
PPUK advocates for clear and comprehensive privacy protections within the Online Safety Bill. They propose that any measures aimed at monitoring or scanning online communications must be strictly limited to cases where there is clear evidence of criminal activity, and these actions should be subject to judicial oversight. This approach would balance the need for online safety with individual privacy rights.
Preservation of Encryption:
Building upon the lessons learned from the Clipper Chip, the Pirate Party UK strongly opposes any provisions in the Online Safety Bill that would weaken encryption or introduce backdoors. They recommend that the bill explicitly state that it will not compromise the integrity of end-to-end encryption, thereby ensuring that user data remains secure from unauthorized access.
Robust Oversight Mechanisms:
PPUK believes that the Online Safety Bill should establish strong oversight mechanisms to ensure accountability and transparency. This includes judicial review of scanning obligations and the involvement of independent experts to assess the technological feasibility and potential risks of any surveillance measures.
International Collaboration:
To address global challenges related to online safety, the Pirate Party UK encourages international collaboration and information sharing among governments, tech companies, and civil society in the context of the Online Safety Bill. This approach would promote a coordinated response to online threats while respecting the principles of sovereignty and individual rights.
Promotion of Digital Literacy:
Alongside regulatory measures in the Online Safety Bill, PPUK advocates for initiatives aimed at promoting digital literacy and online education. They believe that empowering users with the knowledge and tools to navigate the digital world safely is a fundamental component of any effective online safety strategy.
RIPA Changes:
Reform of Key Disclosure Provisions:
The Pirate Party UK also proposes reforms to the Regulation of Investigatory Powers Act 2000 (RIPA). Specifically, they suggest revisiting the provisions related to key disclosure. The party advocates for clearer guidelines and limitations on when and how government representatives can compel individuals to decrypt information or provide encryption keys under RIPA. This reform aims to strike a better balance between law enforcement needs and individual privacy rights in the digital age.
By proposing these changes, the Pirate Party UK aims to ensure that both the Online Safety Bill and RIPA strike a balance between enhancing online safety and protecting the digital rights and freedoms of individuals. They continue to engage in constructive dialogue with policymakers and stakeholders to advocate for a more privacy-conscious and rights-respecting approach to online regulation. | Tech Giants |
Apple logo is seen in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration/File PhotoRegister now for FREE unlimited access to Reuters.comJuly 21 (Reuters) - Wall Street is bracing for the slowest global revenue growth in the history of the social media sector, as intensifying competition from TikTok and Apple in advertising threaten to compound economic woes in the second quarter.The dour expectations come after a blowout 2021, when social media ad sales in the United States grew 36% to reach $58 billion as brands increased marketing budgets to recover from the pandemic and reach customers online.But social media platforms have since warned investors and employees that the tide is turning as inflation lingers around 40-year highs, an environment where brands spend less on advertising.Register now for FREE unlimited access to Reuters.comMeta Platforms (META.O) Chief Executive Mark Zuckerberg told employees last month the company was slashing hiring plans and that "this might be one of the worst downturns that we've seen in recent history." read more Snap Inc (SNAP.N), which owns Snapchat and is due to report earnings after the close, earlier said it expected to miss its own quarterly revenue forecast due to deteriorating economic conditions. read more Global social media ad sales are now expected to grow by 11%, the slowest pace on record, according to media intelligence firm MAGNA, which downgraded the growth forecast from 18%.Analysts had expected some degree of slowing growth after 2021. However, growing competition from viral short-form video app TikTok and Apple has created a "perfect storm" and "investors are rightfully wary" about digital ad growth this year, wrote Barclays analysts in a research note this month.Apple had already upended the digital ad industry when it introduced new iPhone privacy controls last year that hurt the ability for companies like Meta and Snap to target and measure ads on their apps.Apple's own advertising business, which mostly consists of developers paying to promote their app on the App Store, is expected to grow 36% this year to $6.9 billion, Barclays wrote, adding that Apple and TikTok together will take 34% of every new ad dollar that is spent outside China this year.Lior Eldan, chief operating officer of mobile app marketing agency Moburst, which has worked with brands like Uber and Reddit, said clients are now spending about two to three times more on Apple ads, in part because the effectiveness of ads on other platforms has been degraded by Apple's privacy changes."We've seen dramatic increases in budgets on Apple search ads following the privacy changes," he said.While still much smaller than behemoths like Facebook and YouTube, TikTok is poised to grow over 200% to become a $12 billion business, Barclays wrote.TikTok remains important for many clients' advertising strategies, said Yvonne Williams, vice president of media at ad agency Code3, which has worked with brands like Gap and Dior.Alphabet's Google, which reports second-quarter earnings on Tuesday, is the company most likely to be shielded from negative effects, because Google Search is "mission critical" for many advertisers, analysts from RBC Capital Markets said in a note on Tuesday.Meta, Snap and Pinterest are more exposed to the Apple privacy changes and competition from TikTok, Barclays said.Register now for FREE unlimited access to Reuters.comReporting by Sheila Dang in Dallas; additional reporting by Katie Paul; Editing by Stephen CoatesOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
Google, Microsoft, Meta and Amazon launched a public effort Monday to scrap the leap second, an occasional extra tick that keeps clocks in sync with the Earth's actual rotation. US and French timekeeping authorities concur.Since 1972, the world's timekeeping authorities have added a leap second 27 times to the global clock known as the International Atomic Time (TAI). Instead of 23:59:59 changing to 0:0:0 at midnight, an extra 23:59:60 is tucked in. That causes a lot of indigestion for computers, which rely on a network of precise timekeeping servers to schedule events and to record the exact sequence of activities like adding data to a database.The temporal tweak causes more problems -- like internet outages -- than benefits, they say. And dealing with leap seconds ultimately is futile, the group argues, since the Earth's rotational speed hasn't actually changed much historically."We are predicting that if we just stick to the TAI without leap second observation, we should be good for at least 2,000 years," research scientist Ahmad Byagowi of Facebook parent company Meta said via email. "Perhaps at that point we might need to consider a correction.*The tech giants and two key agencies agree that it's time to ditch the leap second. Those are the US National Institute of Standards and Technology (NIST) and its French equivalent, the Bureau International de Poids et Mesures (BIPM).This governmental support is critical, given that ultimately it is governments and scientists -- not technology companies -- that are in charge of the world's global clock system. The leap second change triggered a massive Reddit outage in 2012, as well as related problems at Mozilla, LinkedIn, Yelp and airline booking service Amadeus. In 2017, a leap second glitch at Cloudflare knocked a fraction of the network infrastructure company's customers' servers offline. Cloudflare's software, comparing two clocks, calculated that time had gone backward but couldn't properly handle that result.Computers are really good at counting. But humans introduce irregularities like leap seconds that can throw a wrench in the works. One of the most infamous was the Y2K bug, when human-authored databases recorded only the last two digits of the year and messed up math when 1999 became 2000. A related problem is coming in 2038 when a 32-bit number that some computers use to count the seconds from Jan. 1, 1970, is no longer large enough.And earlier this year, some websites choked when web browsers hit version 100 because they were programmed to deal with only two-digit version numbers.To ease the problems with computer clocks that don't like 61-second minutes, Google pioneered the idea of the "leap smear" that makes in the leap second's changes in many tiny steps over the course of a day.Adding a leap second causes problems with computers. And at some point, we'd have to subtract one too — something that's never happened — and that would likely uncover new problems."It could have a devastating effect on the software relying on timers or schedulers," Byagowi and Meta engineer Oleg Obleukhov said in a blog post Monday. | Tech Giants |
Microsoft is restricting access to its facial recognition tools, citing societal and racial risks that the artificial intelligence systems could pose.The tech corporation released a 27-page Responsible AI Standard on Tuesday that details the company's goals toward equitable and trustworthy AI. To align with the standard, Microsoft is limiting access to facial recognition tools in Azure Face API, Computer Vision and Video Indexer."We recognize that for AI systems to be trustworthy, they need to be appropriate solutions to the problems they are designed to solve," wrote Natasha Crampton, chief responsible AI officer at Microsoft, in a blog post. She added the company would retire its Azure services that infer "emotional states and identity attributes such as gender, age, smile, facial hair, hair, and makeup." More to come. | Tech Giants |
In August 2021, Apple announced a plan to scan photos that users stored in iCloud for child sexual abuse material (CSAM). The tool was meant to be privacy-preserving and allow the company to flag potentially problematic and abusive content without revealing anything else. But the initiative was controversial, and it soon drew widespread criticism from privacy and security researchers and digital rights groups who were concerned that the surveillance capability itself could be abused to undermine the privacy and security of iCloud users around the world. At the beginning of September 2021, Apple said it would pause the rollout of the feature to “collect input and make improvements before releasing these critically important child safety features.” In other words, a launch was still coming. Now the company says that in response to the feedback and guidance it received, the CSAM-detection tool for iCloud photos is dead.Instead, Apple told WIRED this week, it is focusing its anti-CSAM efforts and investments on its “Communication Safety” features, which the company initially announced in August 2021 and launched last December. Parents and caregivers can opt into the protections through family iCloud accounts. The features work in Siri, Apple’s Spotlight search, and Safari Search to warn if someone is looking at or searching for child sexual abuse materials and provide resources on the spot to report the content and seek help. Additionally, the core of the protection is Communication Safety for Messages, which caregivers can set up to provide a warning and resources to children if they receive or attempt to send photos that contain nudity. The goal is to stop child exploitation before it happens or becomes entrenched and reduce the creation of new CSAM.“After extensive consultation with experts to gather feedback on child protection initiatives we proposed last year, we are deepening our investment in the Communication Safety feature that we first made available in December 2021,” the company told WIRED in a statement. “We have further decided to not move forward with our previously proposed CSAM detection tool for iCloud Photos. Children can be protected without companies combing through personal data, and we will continue working with governments, child advocates, and other companies to help protect young people, preserve their right to privacy, and make the internet a safer place for children and for us all.”Apple’s CSAM update comes alongside its announcement today that the company is vastly expanding its end-to-end encryption offerings for iCloud, including adding the protection for backups and photos stored on the cloud service. Child safety experts and technologists working to combat CSAM have often opposed broader deployment of end-to-end encryption because it renders user data inaccessible to tech companies, making it more difficult for them to scan and flag CSAM. Law enforcement agencies around the world have similarly cited the dire problem of child sexual abuse in opposing the use and expansion of end-to-end encryption, though many of these agencies have historically been hostile toward end-to-end encryption in general because it can make some investigations more challenging. Research has consistently shown, though, that end-to-end encryption is a vital safety tool for protecting human rights and that the downsides of its implementation do not outweigh the benefits.Communication Safety for Messages is opt-in and analyzes image attachments users send and receive on their devices to determine whether a photo contains nudity. The feature is designed so Apple never gets access to the messages, the end-to-end encryption that Messages offers is never broken, and Apple doesn’t even learn that a device has detected nudity.The company told WIRED that while it is not ready to announce a specific timeline for expanding its Communication Safety features, the company is working on adding the ability to detect nudity in videos sent through Messages when the protection is enabled. The company also plans to expand the offering beyond Messages to its other communication applications. Ultimately, the goal is to make it possible for third-party developers to incorporate the Communication Safety tools into their own applications. The more the features can proliferate, Apple says, the more likely it is that children will get the information and support they need before they are exploited. “Potential child exploitation can be interrupted before it happens by providing opt-in tools for parents to help protect their children from unsafe communications,” the company said in its statement. “Apple is dedicated to developing innovative privacy-preserving solutions to combat Child Sexual Abuse Material and protect children, while addressing the unique privacy needs of personal communications and data storage.”Similar to other companies that have grappled publicly with how to address CSAM—including Meta—Apple told WIRED that it plans to continue working with child safety experts to make it as easy as possible for its users to report exploitative content and situations to advocacy organizations and law enforcement.Countering CSAM is a complicated and nuanced endeavor with extremely high stakes for kids around the world, and it’s still unknown how much traction Apple’s bet on proactive intervention will get. But tech giants are walking a fine line as they work to balance CSAM detection and user privacy. | Tech Giants |
Amazon has launched a cost-cutting review of its businesses, according to the WSJ. The review will focus on scaling back the company's unprofitable business. Amazon's device unit, which includes Alexa, has had operating losses of $5 billion a year in recent years. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. Looks like no one is safe in this economy, including Amazon's Alexa. Amazon is joining other tech giants like Meta, Twitter, and Microsoft and taking a long, hard look at its least profitable businesses, the Wall Street Journal reported Thursday. Amazon's stock has already plunged 45% this year compared to last year. Under its cost-cutting review, which will be led by CEO Andy Jassy, the company will be laser-focused on scaling down its least profitable businesses. Amazon has already told employees in certain unprofitable divisions to look for jobs elsewhere in the company, the WSJ reported. One of the areas the company is scrutinizing its Alexa business. According to internal documents reviewed by the WSJ, Amazon's device unit — which includes Alexa — has had operating losses of more than $5 billion a year in recent years. The device business currently has more than 10,000 employees and has received major influxes of investment, the WSJ noted. Alexa was somewhat of a pet project for Jeff Bezos, Amazon's founder and CEO, until July 2021. He continued to pour money into developing Alexa even as it remained unpopular, people familiar with the matter told the WSJ. Still, an Amazon spokesperson told the WSJ that customer interactions with Alexa have increased more than 30% over the past year. Right now, the voice assistant is particularly popular with customers for online shopping, playing music on demand, and controlling lighting, thermostats, or other features in their smarthomes. The company is tossing around ideas to add new capabilities to Alexa. Amazon is "as optimistic about Alexa's future today as we've ever been, and it remains an important business and area of investment for Amazon," the spokesperson said to the WSJ. Amazon didn't immediately respond to a request for comment. | Tech Giants |
For the past ten years, the biggest companies in the tech industry have effectively been allowed to mark their own homework. They’ve protected their power through extensive lobbying while hiding behind the infamous tech industry adage, “Move fast and break things.” Food and beverage companies, the automotive industry, and financial services are all subject to regulation and accountability measures in order to ensure high degrees of ethics, fairness, and transparency. Tech companies, on the other hand, have often argued that any legislation will limit their ability to act effectively, turn profits, and do what they became powerful for. Currently, there’s a slate of bills and legislation around the world that finally aim to curtail these powers, like the UK’s long-awaited Online Safety Bill. That bill will pass in 2023, but its limitations mean that it won’t be effective.The Online Safety Bill has been in the works for several years, and effectively places the duty of care for monitoring illegal content onto platforms themselves. It could potentially also impose an obligation on platforms to restrict content that is technically legal but could be considered harmful, which would set a dangerous precedent for free speech and the protection of marginalized groups.In 2020 and 2021, YouGov and BT (along with the charity I run, Glitch) found that 1.8 million people surveyed said they’d suffered threatening behavior online in the past year. Twenty-three percent of those surveyed were members of the LGBTQIA community, and 25 percent of those surveyed said that they had experienced racist abuse online. In 2023, legislation aimed at tackling some of these harms will come into effect in the UK, but it won’t go far enough. Campaigners, think tanks, and experts in this area have raised numerous concerns around the effectiveness of the Online Safety Bill as it currently stands. The think tank Demos emphasizes that the bill doesn’t specifically name minoritized groups—such as women and the LGBTQIA community—even though these communities tend to be disproportionately affected by online abuse.The Carnegie UK Trust noted that while the term “significant harm” is used in the bill, there are no specific processes to define what this is or how platforms would have to measure it. Academics and other groups have raised the alarm over the bill’s proposal to drop the previous Section 11 requirement that Ofcom should “encourage the development and use of technologies and systems for regulating access to [electronic] material.” Other groups have raised concerns about the removal of clauses around education and future proofing—making this legislation reactive and ineffective, as it won’t be able to account for harms that may be caused by platforms that haven’t gained prominence yet.Platforms have to change, and other countries have passed legislation trying to make this possible. Already, we’ve seen Germany enact NetzDG in 2017, the first country in Europe to take a stance against hate speech on social networks—platforms with more than 2 million users have a seven-day window to remove illegal content or face a maximum fine of up to 50 million euros. In 2021, EU lawmakers set out a package of rules on Big Tech giants through the Digital Markets Act, which stops platforms from giving their own products preferential treatment, and, in 2022, we’ve seen progress with the EU AI Act, which involved extensive consultation with civil society organizations to adequately address concerns around marginalized groups and technology, a working arrangement that campaigners in the UK have been calling for. In Nigeria, the federal government issued a new internet code of practice as an attempt to address misinformation and cyberbullying, which involved specific clauses to protect children from harmful content.In 2023, the UK will pass legislation aimed at tackling similar harms, finally making progress on a regulatory body for tech companies. Unfortunately, the Online Safety Bill won’t contain the adequate measures to actually protect vulnerable people online, and more will need to be done. | Tech Giants |
By Shelley PhelpsBBC NewsMedia caption, Teenagers said they had come across bullying left in social media commentsA group of young Welsh people are calling for social media platforms to improve processes for reporting harmful content.TikTok and Meta bosses faced questions from students at Pontypridd High School in Rhondda Cynon Taf. Platforms said they listen to feedback from users and encourage them to make use of safety features. The event was organised by Alex Davies-Jones MP as the UK government's online safety bill goes through Parliament."There's barely a day that goes by that I don't experience something negative", said 17-year-old Caitlin. "I personally think social media's pretty dangerous." Image caption, Caitlin received abuse online after posting about Manchester United's Mason Greenwood"Scrolling through TikTok yesterday and there's many challenges aimed at young girls to eat roughly 300-400 calories in a day….[and] it could trigger many eating disorders."Many of Caitlin's attempts to report harmful content have been unsuccessful. "I think the reporting process should be looked into a bit more, since it takes so long for things to be taken down, by the time they are taken down, the harm's already been made." TikTok said it strictly removes content that promotes disordered eating.Caitlin had to deal with online abuse after posting about Manchester United Footballer Mason Greenwood being arrested on suspicion of rape. He has denied the claim.'I feel like we're being pushed back' "I spoke about the whole Mason Greenwood situation and I got told I need to get beat up about it. ""I feel like because of social media women's voices are being heard less, I feel like we're being pushed back a bit." "It's kind of like a war on us in a way. It's like we can't really speak without having harm wanted against us".Image caption, Seventeen-year-old Isabelle said she sees a lot of body positive content on social mediaOthers highlighted positive aspects of social media, such as keeping in touch with friends and self-love campaigns. "There's a lot of body positive things that go around now that never used to," said 17-year-old Isabelle. Pupils working on a project to improve online safety were given the chance to quiz tech giants at a virtual event. Image caption, Megan Thomas from Meta, Facebook's parent company, and TikTok's Alexandra Evans spoke to the pupils about harmful content"Young people feel it is very difficult to report and remove upsetting content. How can you make this process easier?" asked 13-year-old Brooke. TikTok's head of safety public policy in Europe, Alexandra Evans, said she thinks the platforms reporting mechanisms are "intuitive" but welcomes feedback from users on how they are struggling.Blocking functionsShe also highlighted blocking functions: "For example, if you don't like the word 'hate' or 'loser', whatever it may be, you can set a list of words that you will always get filtered from your comments."Megan Thomas, public policy associate manager at Meta, which owns Facebook and Instagram, said the company has recently developed new features "designed to help prevent people from having to experience any kind of harmful content on our platforms in the first place."Image caption, The UK government says its Online Safety Bill will "deliver major improvements to the safety of women and girls"Poppi, 13, wanted to know how many offensive posts are taken down each day, and what consequences are in place for repeat offenders. Both representatives said they did not know the daily figure, but pointed to quarterly reports. "There's a spectrum of harm, there's a spectrum of behaviours and we try to be really specific in our responses", said TikTok's Ms Evans. "But also when it comes to those egregious cases, when it comes to those absolute zero-tolerance behaviours, we are all working together to make sure that we are responding and stamping out that kind of activity across all of our platforms."New online safety laws are being introduced by the UK government, but Labour MP for Pontypridd and shadow technology minister Alex Davies-Jones warned of "loopholes" in the legislation,A UK government spokesperson said: "Our pioneering Online Safety Bill will already deliver major improvements to the safety of women and girls from criminalising cyber flashing to protecting young girls from harmful content."They added that failure to act by social media companies could result in heavy fines. | Tech Giants |
The Facts Inside Our Reporter’s Notebook As Congress and the courts delve deeper into federally sanctioned censorship by Big Tech, a troubling revolving door has emerged between the U.S. intelligence community and the Big Tech giants on the front lines of one of the fiercest battles over free speech in modern American history.
A Just the News review of LinkedIn employment histories of senior Big Tech executives found that at least 200 former workers of the Central Intelligence Agency, Federal Bureau of Investigation, National Security Agency, National Security Council and Homeland Security Department have landed Silicon Valley jobs, many within content moderation units regulating supposed "disinformation" and disproportionately okthrottling news and opinion deviating from approved, left-tilting norms.
These individuals range from Aaron Berman, who spent a decade and a half as a CIA analyst before joining Facebook parent Meta as product policy manager for disinformation, to James Baker, the former FBI general counsel recently fired by Elon Musk as Twitter's chief lawyer over a spat about prior review of "Twitter Files" releases exposing past censorship by the platform. Baker was one of the key FBI figures involved in obtaining a FISA warrant based on the now-debunked Steele dossier to surveil onetime Trump campaign adviser Carter Page.
The spooks-to-Silicon-Valley pipeline has sent an army of federal agents, intel analysts and even psychological operations experts once trained with taxpayer money to fight foreign enemies or capture big criminals into higher-paying private sector jobs where those same skills now target Americans' opinions in the name of fighting "disinformation."
None of the former intel world employees contacted by Just the News returned phone or email requests for comment. But in videos posted online, some acknowledged they are part of a new vanguard of Big Tech censors operating in a world where there is little consensus about what should be done and what is legal.
"There is very little agreement whether we should be leaving more content up or taking more content down," Berman said in a video posted on Meta's site. "With any particular rule or issue that we're looking at where something has come up, where the rules are not 100 percent clear, we're not going to make everybody happy."
Berman, whose LinkedIn biography boasts he used to prepare the presidential daily brief at the CIA, acknowledged there is some discomfort in the power he now wields in his new role in Big Tech to decide the difference between "harmful content" and free speech.
"It's a balance," he said in the video. "I think it should make me uncomfortable, and all of us who do this work."
Some of the federal intel veterans are less inhibited about expressing biases. For example, Nick Rossmann, former CIA analyst and current senior manager of Trust & Safety at Google, overtly supported defeated 2016 presidential candidate Hillary Clinton, said Donald Trump's son-in-law Jared Kushner should be strangled and declared, "Anti-vaxxers are like Nazis."
During the COVID-19 outbreak, Rossmann even seemed to wish death on elderly Trump voters, tweeting, "I hope they cough on their grandparents, who voted for Trump, & get to rot." Jacqueline Lopour, another Hillary Clinton supporter and former CIA analyst — she served for 10 years in the agency — is currently Google Senior Manager, Intel Collection, Trust & Safety. In that capacity, she manages "Intel operations spanning multiple threat verticals, including violent extremism, cyber threats, misinformation, hate speech, spam, fraud, security and privacy, and more," according to her LinkedIn bio.
In a 2017 Canadian Broadcasting Company interview, Lopour invoked her CIA experience to uncritically vouch for the agency's assessment that Russia meddled in U.S. politics to tip the 2016 election in favor of Donald Trump, saying, "They [Russia] deliberately released the DNC information to @wikileaks ... with the specific motivation of helping Trump get elected."
Further LinkedIn profile checks revealed several other key members of Big Tech teams who served in either the Department of Defense, CIA, FBI, NSA, or DHS. The growing pipeline of intelligence and law enforcement officials was previously documented in detail by an anonymous Twitter account posted by the user @NameRedacted247 in a 30-part Twitter thread. Former President Donald Trump weighed in on the issue with a video message, touting his proposal to end the revolving door between the Deep State" and the "tech tyrants" by imposing "a 7-year cooling off period, before any employee of these powerful agencies is allowed to take a job at a major platform."
Recent reporting "shows the FBI and other rogue agencies have been systematically colluding with former national security officials placed in high positions at Twitter and very likely other companies to advance their censorship regime," said Trump.
"This anti-American effort," he went on, has been "working to silence dissenting opinions on COVID and crucial issues in public health and on the [2020] election." The suppression of dissenting doctors and health experts "had nothing to do with science" or "saving lives," he alleged. "This was about government working with powerful corporations to seize power over you, the American people."
Trump called on the new Congress to immediately hold hearings and begin issuing subpoenas "to investigate the role of the FBI and other federal agencies in censoring lawful speech."
Former high-ranking Trump administration national security aide Kash Patel told the John Solomon Reports podcast recently that any elected officials colluding with Big Tech for censorship purposes need to be held accountable.
"We need to be talking about suspensions, and a complete barring of these individuals from all committees and other such matters," said Patel, who served as senior counsel for the House Intelligence Committee under the chairmanship of Rep. Devin Nunes. "Since the Republicans have the majority in the House, they can do that with [former House Intelligence Committee Chairman] Adam Schiff."
Twitter currently employs at least 10 former FBI agents, according to LinkedIn profile checks performed by Just The News.
Just the News reached out to several former members of the intelligence community now employed by Big Tech for comment but has received no replies.
Just the News also reached out to Facebook, Google, and Twitter, along with the FBI, NSA, and DOD, but only received a brief response from the CIA which read, "CIA's intelligence mission is foreign focused, and the Agency at all times abides by US laws, regulations, and executive orders that prohibit unlawful collection related to US persons.” The FBI field office in Washington, D.C. refused to comment directly, while the NSA recommended reaching out and questioning each Big Tech firm individually.
You can follow Nick on Twitter @NGivasDC | Tech Giants |
Topline
Despite a brutal sell-off so far this year in the tech sector, Wall Street analysts remain cautiously optimistic about Big Tech stocks ahead of upcoming second-quarter earnings this week, with the majority of experts predicting that companies like Apple, Microsoft and Alphabet can continue to post strong profits in the long-run. Big tech earnings should hold up despite ongoing recession fears, analysts predict. Seth Wenig/Associated Press Key Facts Though tech stocks have been hard-hit this year (with the Nasdaq down 25%) amid surging inflation, rising interest rates and ongoing recession fears, a majority of Wall Street analysts still maintain buy ratings on Apple, Alphabet, Meta, Microsoft and Amazon ahead of key earnings results this week. Three firms reiterated buy ratings on several big names Monday: Deutsche Bank predicted solid results from Apple, Bank of America expects Facebook-parent Meta to see ad revenue take a smaller hit than expected and Oppenheimer predicts “robust” growth in Amazon’s AWS cloud services business. Analysts note that while the tech sector is already slowing down hiring across the board amid the more challenging economic environment, after a big sell-off earlier this year, valuations are now looking much more attractive. Netflix and Tesla saw their stocks rally last week after ‘better than feared’ results, while Snap delivered “another train wreck quarter that highlights a digital ad slowdown, Apple iOS privacy headwinds, and TikTok competition further heating up,” according to Wedbush analyst Dan Ives. While there’s been some “good and bad news” in the tech sector, “there are some encouraging signs” and investors can now buy shares in some of the biggest companies at a more attractive entry point, says Lindsey Bell, chief markets & money strategist for Ally. Among the more than 250 combined analysts covering the five big tech companies reporting earnings this week—Apple, Alphabet, Meta, Microsoft and Amazon—less than five have sell ratings—a sign of just how bullish Wall Street is on some of America’s most valuable tech companies. What To Watch For:
Alphabet and Microsoft kick off Big Tech earnings on Tuesday. Meta reports Wednesday, while Apple and Amazon round out the list on Thursday.
Crucial Quote:
“Investors should be selective when picking stocks within the tech sector,” says David Trainer, CEO of New Constructs. “The strongest types of stocks are the ones where cash flows are strong and valuations underestimate the company's ability to generate cash flows in the future.” He especially likes Google-parent Alphabet, which is trading at a “much cheaper” valuation than its peers and should continue to outperform thanks to its ability to keep innovating. Trainer is “not as confident” about Facebook-parent Meta, however, questioning the company’s “ability to sustain profits,” especially as it struggles to retain users amid increased competition from the likes of TikTok. His firm also remains bullish and “big fans” of Apple, though the stock is still somewhat expensive, he adds.
Key Background:
All of the Big Tech stocks have seen big losses so far this year, though they have recovered somewhat in recent months. Meta has suffered the greatest losses, with its market value falling by roughly half as Facebook’s ad business continues to struggle. Amazon and Alphabet are both down roughly 25%, Microsoft more than 20% and Apple 15%. Further Reading:
Netflix Stock Surges After Earnings—But Analysts Divided About Whether Growth Can Recover (Forbes)
New China Covid-19 Lockdowns Would Threaten U.S. Economic Recovery (Just Ask Tesla) (Forbes)
Tesla Shares Rally Despite Slowdown In Profits, Impact From China Shutdown (Forbes)
Dow Jumps 700 Points, Analysts ‘Cautiously Optimistic’ After More Solid Earnings (Forbes)
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Microsoft has beaten Wall Street expectations, posting better than expected revenues as its cloud computing and office software business grew amid increasing demand for artificial intelligence (AI).
Revenue rose to $56.2bn (£43.56bn) in the fourth quarter, the three months up to the end of June - up 8% on the same period a year ago. It is greater than the 7% expected by analysts.
The company chairman and chief executive, Satya Nadella, said Microsoft was "focused on leading the new AI platform shift", as tech giants compete to develop AI products and companies seek to quickly adopt AI.
"Organisations are asking not only how - but how fast - they can apply this next generation of AI to address the biggest opportunities and challenges they face - safely and responsibly," Mr Nadella said.
Investors and tech developers have been seeking to get a foothold in the burgeoning AI boom.
Microsoft is one of the main competitors in the AI race. It invested in OpenAI, the maker of generative AI chatbot, ChatGPT.
It has also invested in its own products.
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In February it revealed a new Bing search engine powered by chatbot technology, gaining against rival Google.
The following month it announced an AI "copilot for work" that can write emails and allow users to catch up on skipped meetings.
Read more:
Artificial intelligence 'doesn't have capability to take over', Microsoft boss says
Amazon and Microsoft's dominance in cloud services market 'concerning', says Ofcom
It is incorporating the ChatGPT-style assistant to all of its Office apps, including Word, Teams, and Outlook.
Microsoft's AI platform, Azure, was behind the growth in cloud computing at the tech company.
Azure and other cloud services revenue grew 26% compared to a year before.
Despite the positive results, shares fell slightly as capital expenditure rose from $7.8bn (£6bn) the year before to $10.7bn (£8.29bn) to its building new data centres.
The stock price reached a record high last week as a $30 (£23.25) monthly subscription for generative AI features in its software was announced. | Tech Giants |
The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike SegarRegister now for FREE unlimited access to Reuters.comJuly 28 (Reuters) - Apple Inc (AAPL.O) on Thursday reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending.Shares rose 3.2% after hours following the release of the results.Apple said sales and profit for the quarter ended June 25 were $83.0 billion and $1.20 per share, above estimates of $82.8 billion and $1.16 per share, according to Refinitiv data.Register now for FREE unlimited access to Reuters.comApple is expected to give a forecast for the current fiscal fourth quarter during an investor call, but Chief Financial Officer Luca Maestri told Reuters there had been no slowdown in demand for iPhones.The slumping economy is hurting sales of advertising, accessories and home products, though, Maestri said."Fortunately, we have a very broad portfolio, so we know we're going to be able to navigate that," he added. Parts shortages will continue to limit Mac and iPad sales, Maestri said, though the impact has been easing.Investors are watching Apple closely as economic indicators turn negative. In the past, the iPhone maker's loyal and relatively affluent customer base has helped it weather dips better than other consumer brands.While sales of iPhones and iPads topped expectations, revenue from services, Mac computers and accessories missed Wall Street targets and sales in the crucial China market fell 1%.The rising U.S. dollar has hit many companies such as Apple that generate substantial foreign revenue and are getting less cash back when they convert it. Apple said currency fluctuations would slash sales by 6% in the current quarter.The most recent economic woes include supply chain disruptions from COVID-19 lockdowns in China that have hit production of some Apple products such as iPads and Macs. Apple, like many of its tech industry peers, is reportedly slowing hiring and cutting costs given the tough economic climate. read more Apple shares closed Thursday down about 11% so far this year, slightly less than the broader S&P 500 (.SPX) index and also less than other consumer hardware makers such as Sonos Inc (SONO.O) and Samsung Electronics Co (005930.KS).It will be a key test of whether Apple's years-long effort to diversify its business beyond the iPhone has paid off.Apple said iPhone sales were $40.7 billion, up about 3% from a year earlier and well ahead of the overall global smartphone market, which fell 9% during the just-ended quarter, according to Canalys data.Growth in the company's services business, which has provided a boost to sales and profits in recent years, was 12%, below the previous year's 33% rate and resulting in $19.6 billion in revenue, below estimates of $19.7 billion.Apple said it now has 860 million paying subscribers on either its paid services or to paid software in its App Store, up from the previous quarter's 825 million.Apple had told investors to expect a hit of between $4 billion and $8 billion from supply chain disruptions, though it did not give an overall revenue forecast from which to subtract those numbers. Analysts believed the disruptions hardest hit sales of Macs and iPads whose assembly locations were clustered near regions of China that went into COVID lockdowns."Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment," Maestri said in a statement.Sales of iPads and Macs were $7.2 billion and $7.4 billion, compared with estimates of $6.9 billion and $8.7 billion. Mac sales represented a 10% contraction, after record sales since 2020, first from a work-from-home boost and then from Apple's new proprietary processor chips.In its most recent fiscal year, nearly a fifth of Apple's sales came from its Greater China region after two years of struggling sales there. But now Apple is confronting slow overall economic growth in China, where its fiscal third-quarter sales were $14.6 billion, down 1%.Register now for FREE unlimited access to Reuters.comReporting by Stephen Nellis, Nivedita Balu and Paresh Dave; Editing by Peter Henderson and Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles. | Tech Giants |
Amazon began a far-reaching round of corporate layoffs this week. Leaked messages show managers under pressure to shed staff through performance-improvement plans. Other tech companies have wielded "quiet layoffs" to reduce head count in recent months. Amazon has been pressuring managers to identify low-performing workers to push out of the company using performance-improvement plans, according to a series of leaked Slack messages obtained by Insider.The orders came ahead of the largest corporate layoffs in Amazon's history this week. Thousands of jobs are being eliminated. The messages were between managers from numerous divisions, including Amazon Web Services, Pricing, and Compliance. The communications reveal a company where stack ranking — the practice of pitting employees' performance against each other and trying to force out the lowest-ranked workers — is a common topic of conversation among managers. And they suggest that Amazon is using performance-improvement plans, or PIPs, to further drive head-count reduction before the end of the year. The company did not respond to a request for comment.Three weeks ago, a senior AWS manager told other managers that there is "a very strong push on URA," referring to "unregretted attrition," a target for the number of departing employees that Amazon isn't sad to lose. "Unregretted attrition" includes employees Amazon considers low-performing who are pressured out via notorious performance-management programs.The senior AWS manager noted his group would need at least two employees to leave to comply with URA targets. He also wrote that "there is solid rumors now on a hiring pause coming soon," and advised other managers to hurry up and hire who they needed before that went into effect."Please close your hiring and stack rank your team members asap," the manager continued. "I know it may sound like a mixed msg but we need to hire fast and also identify 3-4 employees we think aren't suited for our growth ambitions."'Get back to me before 10 am tomorrow'Other messages showed a similar sense of urgency."I'd like each of you to identify your lowest performer please and get back to me before 10 am tomorrow," one compliance manager wrote in a Slack channel for other managers in late September. The manager noted none of the team's employees were currently on a PIP or identified as "least effective," the lowest rating in Amazon's performance-rating system. That was concerning, the manager wrote, because the team should have four employees on PIPs that could lead to the termination of their employment, according to messages reviewed by Insider.Managers on the pricing team were instructed at the end of October to notify an executive how many people they expected to leave before the end of the year who could count as "unregretted attrition." When some managers said they had no expected attrition, or that the attrition would occur after the end of 2022, the director replied, "This is concerning as it means we'll end the year over budget."'Urgent Senior Leadership request'A manager on a retail team based in Europe recently messaged other managers with an "urgent Senior Leadership request," the contents of which suggest that some teams have been scrambling to bump up their URA numbers."I am sorry to open the day with this message, but I need some help," the manager wrote, then "urgently" asked for data on unregretted attrition, including "attritions in your org in 2022, that were URA as per you/your managers, but were not considered as URA when they resigned."As fears of a recession have prompted tech giants to tighten their belts, some companies have turned to so-called "quiet layoffs" to reduce head count by increasing the number of workers on some form of PIP. Employees who fail such plans are usually asked to leave. Meta, Facebook's parent company, asked managers to identify a certain percentage of workers as underperforming, putting them on track to be potentially managed out. Meta laid off about 11,000 employees in early November. Amazon has also been attempting to slash staff in the wake of disappointing third-quarter earnings and what its HR chief called "an unusual macroeconomic environment." It introduced a companywide hiring freeze in early November. This week, it began the largest corporate layoffs in its history, starting by slashing employees from the Devices division and offering buyouts to recruiters. All told, Amazon reportedly wants to cut 10,000 employees. Amazon employees have long railed against the company's performance-management process. Amazon sets a 6% target for unregretted attrition, Insider has previously reported. Employees labeled "least effective" are placed in a performance-management program called Focus. Amazon expects roughly one-third of the employees on Focus to end up leaving the company. Amazon instructs managers not to tell their employees if they are on Focus, generating complaints that the process is opaque.Work at Amazon? Got a tip? Contact reporter Katherine Long via phone or the encrypted messaging app Signal (+1-206-375-9280) or email ([email protected]) | Tech Giants |
BRUSSELS — The European Union on Monday approved a new deal allowing companies to freely transfer data between the EU and the United States, potentially ending three years of legal limbo for tech giants such as Facebook and Google.
The European Commission formally recognized the U.S. as a country with sufficient protection for Europeans’ personal data, adopting a so-called adequacy decision under its landmark privacy law, the General Data Protection Regulation.
The deal, known as EU-U.S. Data Privacy Framework, clears the way for lucrative transatlantic data exchanges after the EU's top court in 2020 struck down the governments’ previous data agreement, known as Privacy Shield, over concerns that U.S. intelligence agencies had too much leeway to snoop on Europeans’ personal data.
The stakes for success are high: According to the White House, transatlantic data flows underpin $7.1 trillion in economic activities, and thousands of companies do business on both continents.
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“Today we take an important step to provide trust to citizens that their data is safe, to deepen our economic ties between the EU and the U.S., and at the same time to reaffirm our shared values,” said Commission President Ursula von der Leyen.
Monday’s decision marks the end of long-running, complex negotiations that reached the White House. To pave the way for the deal, U.S. President Joe Biden in October 2022 issued an executive order to restrict U.S. intelligence agencies like the National Security Agency (NSA) from accessing Europeans’ digital information and create better, more independent redress for Europeans.
The U.S. Department of Justice announced last week it has finalized its commitment under the Executive Order. A new Data Protection Review Court will allow European residents to bring claims against U.S. agencies if they believe their data was not gathered in a “necessary” and “proportionate” way for national security.
The agreement, however, doesn’t necessarily end the longtime drama. Max Schrems, the privacy activist who filed lawsuits that led to the downing of the two previous data pacts, said he would likely challenge the new deal in court by the end of August. He expects his complaint to come to the European Court of Justice in early 2024.
The European Court of Justice annulled two previous agreements — Privacy Shield and a 2000 deal called Safe Harbor — over fears of U.S. intelligence agencies' snooping, exposed by Edward Snowden and others.
Schrems said the new deal didn’t give Europeans adequate protections, even with the changes in U.S. data policy. “We would need changes in U.S. surveillance law to make this work — and we simply don't have it,” Schrems said. “There are even parts that are worse than before so for example, purposes for mass surveillance now [include] climate change and international health crisis.”
Officials, however, were optimistic that this time the deal would hold up to the court’s scrutiny.
“This new framework is substantially different than the EU-U.S. Privacy Shield,” said Justice Commissioner Didier Reynders on Monday. “When deciding whether and to what extent U.S. intelligence agencies should access data, they will be required to balance the same factors as those required by the case law of the EU Court of Justice.”
Tech companies widely welcomed the deal, especially Meta, which hopes to keep Europeans’ data flowing to its American servers after the Irish privacy regulator in May invalidated its last legal resort to do so via standard contractual clauses.
“We welcome the new Data Privacy Framework, which will safeguard the goods [and] services relied on by people and businesses on both sides of the Atlantic,” said Nick Clegg, Meta’s president for global affairs.
The U.S. company previously warned that if a new data-transfer agreement was not reached before mid-October, it would have to shut down services like Facebook and Instagram in Europe. Meta is currently fighting the Irish data regulator’s decision in court in Ireland.
The European Data Protection Board (EDPB)— a pan-European network of privacy watchdogs — said the new agreement showed “substantial improvements” compared with previous pacts, but still lacked some safeguards. The European Parliament has opposed the new pact, arguing it still allowed some bulk-collection of personal data and included insufficient protections for Europeans’ privacy. (The EDPB and European Parliament’s opinions are nonbinding and can’t derail the agreement.)
A majority of EU countries also gave their formal backing last week, with 24 unknown capitals in favor and three abstaining, according to a record of the vote.
The European Commission will review the EU-U.S. Data Privacy Framework within a year and then every four years to check if the new U.S. privacy safeguards for Europeans are effective.
"There has been significant reform to U.S. law and practices when it comes to surveillance safeguards,” said Joe Jones, director of research and insights for the International Association of Privacy Professionals. “This is not a reheating of the framework that was struck down in Schrems II. But the question is: Is it good enough?"
Alfred Ng contributed reporting from New York.
This article has been updated. | Tech Giants |
The Connectivity Standards Alliance has released the final Matter 1.0 standard and announced that the certification program is now open. An official Matter launch event is scheduled for November 3rd, but the first Matter devices could show up any day now. Companies can start selling Matter devices or upgrading existing ones as soon as they’re certified. When the idea of Matter was first floated in 2019, there were a lot of people (myself included) who thought it would never happen. Apple, Google, Amazon, and Samsung sitting at a table together and coming up with a plan to fix the fractured smart home? Fierce competitors in the manufacturing space, such as lock makers Yale and Schlage and light makers Philips Hue and GE Lighting, developing a universal standard that would make their products work together in any ecosystem? It sounded like a pipe dream. And as the delays piled up, it sometimes felt like Matter would never arrive. The CSA has announced the official release of the Matter 1.0 specification. Image: CSABut today, Matter certification labs are up and running, the SDK is complete, and companies can start manufacturing, upgrading, and getting the official Matter stamp of approval for their devices. While the specification has only just been finalized, several companies were working on Matter-compatible products as part of an early access program, which means we could start to see Matter devices any day now. “We had a strong group of companies that participated in our testing process,” Michelle Mindala-Freeman of the CSA told The Verge. “These will be among the first products to be branded and available as Matter.”The Matter launch event scheduled for November 3rd will likely have some of these early products on show. The invitation indicates there will be a demo area where companies can showcase their Matter-certified products.The CSA is hosting a Matter launch event in November. Image: CSAA universal connectivity standard, Matter is designed to make smart home devices simpler. By giving your door lock and light bulb a way to talk directly to each other, either over Wi-Fi or a newer protocol called Thread, Matter should make the smart home faster and more responsive. It should also enable an easier setup process, with compatible devices automatically showing up on your smartphone to allow you to connect them. Plus, with a common language that’s local to your home and doesn’t rely on the cloud, your devices can be controlled by more than one smart home ecosystem or voice assistant.This isn’t a quick fix, however, as the initial Matter spec only covers a limited number of device categories. The CSA has said it is developing specifications for more devices — including popular categories such as security cameras and robot vacuums. But at launch, the compatible devices will be limited to smart light bulbs and fixtures, smart plugs and switches, smart thermostats and other HVAC controls, smart shades, smart sensors, connected locks, and media devices including TVs. Google announced that all its Nest smart speakers and displays will be upgraded to be Matter controllers. Some, including the Nest Hub Max, Nest Hub (2nd gen), and its Nest Wifi routers will also be Thread border routers. Image: GoogleThe first rollout also includes Matter controllers and bridges, which are devices such as the Google Nest Hub Max and Amazon Echo smart speaker that can act as both a conduit for devices to talk to each other and as an interface for you to control your devices using voice or a touchscreen interface.Smartphone apps such as the Google Home app and the Apple Home app will also be Matter controllers. Bridges can also be Matter certified to bring their connected products into the Matter ecosystem. For example, Signify, owner of Philips Hue, has said its smart lighting control bridge will be upgraded to Matter, allowing its lights to be controlled by any Matter controller without the lights being updated. Amazon’s fourth-gen Echo speaker will be a Thread border router, and the company has said most of its existing smart speakers and displays will be upgraded to Matter controllers. Image: AmazonThe CSA also says Matter is designed to be secure using technology that ensures devices have to confirm who they are and where they are from before being allowed on the network. In terms of privacy, Matter operates entirely locally over IP, but it doesn't rely on an internet connection to run. However, it is designed to talk to the cloud easily. Those conversations are controlled by the ecosystem app or device app you use and, in turn, governed by their individual privacy policies. So, it will still be important to only use devices and services from companies you trust with your data. There has been a lot of confusion and questions about how Matter devices will work in our homes. With the release of Matter and the opening of the certification program, it looks like we will soon find out. | Tech Giants |
The lawsuit against Meta and OnlyFans’ parent company will move onto the next stage: discovery, where documentation of the allegations against the tech giants will theoretically be brought to light. Image: Gizmodo / Shutterstock (Shutterstock)A federal judge denied Meta and OnlyFans’ motions to dismiss a class action lawsuit against the company on Wednesday. The case, filed in California federal court, alleges that Meta executives accepted bribes in exchange for preferentially allowing OnlyFans’ creators and their links to remain on its platforms while blacklisting the subscription video site’s competitors. OffEnglish Both OnlyFans’ parent company, Fenix Internet, and Meta filed motions to dismiss the suit, claiming there was no credible evidence against them. Presiding Judge William Alsup disagreed, however, writing, “Plaintiffs’ claims are plausible. To the extent defendants argue that plaintiffs’ factual allegations are unreliable, that will be tested in discovery.”In the denial, the judge cited a whistleblower report alleging widespread bribery at Meta, which the social media giant received six months before the suit was filed, and an email purporting to show wire transfers between OnlyFans and Meta executives. Both were first reported by Gizmodo. Judge Alsup also disagreed with the basis of Meta’s dismissal request, which cited Section 230 of the Communications Decency Act that protects internet providers from being treated as publishers, the First Amendment, and a thin legal precedent that companies aren’t liable for their employee’s actions. “Meta defendants argue they are not liable for the acts of their employees who allegedly participated in the anticompetitive conduct. This order disagrees. It is premature to conclude that those accepting bribes were involved in a frolic of their own so as to immunize Meta itself,” wrote the judge.G/O Media may get a commissionOnlyFans declined to comment. Meta did not immediately respond to a request for comment. Details of the Meta-OnlyFans Bribery SuitThree Meta employees: Nick Clegg, Nicola Mendelsohn, and Cristian Perrella were “inadvertently” named in the class action lawsuit brought by three adult entertainers against Meta (including subsidiaries Facebook and Instagram), Fenix Internet, and other related parties. In the suit, the plaintiffs claim that Meta accepted money in exchange for blacklisting adult entertainers posting on its platforms independently or affiliated with any site other than OnlyFans, while exempting OnlyFans creators from porn-banning moderation algorithms.Specifically, the plaintiffs allege that Meta employees demoted or deleted their accounts and posts on Instagram and Facebook, and also internally listed them as “dangerous individuals or organizations”—a designation generally reserved for removing “terrorist content.” The point to a period of time in 2018 when 100 accounts that drove traffic to OnlyFans competitors were taken down. As evidence of their claims, the plaintiffs filed, among other things, an email they say documents wire transfer payments from Fenix International to trust accounts listed under Meta executives’ names. And six month prior to the lawsuit, Facebook received a whistleblower complaint alerting the company to activities very similar to those described in the court filings against Meta and OnlyFans. “Certain employees are taking bribes to protect OnlyFans on the platform. This has been going on for months if not years,” the whistleblower report stated.Meta initially made vague statements redirecting blame for the allegations and downplaying the company’s responsibility but later issued a firm denial. Responding to the whistleblower complaint, Meta spokesperson told Gizmodo in late October, “These claims are false, there is not a shred of evidence to back them up, and reporting out these claims that lack any evidence is irresponsible.” | Tech Giants |
Meta is in a "very deep, philosophical competition" with Apple over the future of technology and the metaverse, the social network's CEO Mark Zuckerberg told employees in an internal meeting last month, reported by The Verge.
It's no secret Meta and Apple have been competitors for several years, with the rivalry ramping up in recent years over privacy and the different approaches to user tracking. The competition is expected to heat up as both companies take seemingly different approaches to the "metaverse" and AR/VR. While Meta has begun its journey into the "metaverse," revealing its vision for the future of the internet and releasing accompanying VR headsets, Apple has yet to make a big entrance into the AR/VR space.
That is all set to change, however, as Apple is nearing the launch of its first AR/VR headset for early next year. Responding to a question from an employee over how Apple's launch of an AR/VR headset could impact Meta's plan, Zuckerberg responded by saying it's "pretty clear that Apple is going to be a competitor for us." Zuckerberg continued, saying the competition will go beyond simply offering the best AR/VR hardware and will also play out "philosophically." I think it's pretty clear that Apple is going to be a competitor for us, not just as a product but philosophically. We're approaching this in an open way and trying to build a more open ecosystem. We're trying to make more stuff interoperable with Android. We're trying to develop the metaverse in a way where you can bring your virtual goods from one world to another. We created the Metaverse Open Standards Group with a bunch of other folks that you just mentioned, and Apple didn't join.
This is a competition of "ideas," Zuckerberg went on to claim in the June 30 meeting. Apple believes in "doing everything themselves and tightly integrating that to build a better consumer experience," he said. On the other hand, Meta sees the need for a "larger ecosystem to exist."
Zuckerberg admits, however, that it's unclear whether a "closed ecosystem," which he claims Apple to have, or an open ecosystem from Meta, would be better suited for the metaverse. One of the things I think is interesting is that it's not really clear upfront whether an open or closed ecosystem is going to be better. If you look back to PCs, Windows was clearly the one that had a lot more scale and became the default and norm that people used. And Mac did fine, but I think PC and Windows were, I think, the premier ecosystem in that environment.
On mobile, I would say it's more the other way. There's more Android devices than there are iOS devices, but I think in developed countries and places like the US or Western Europe in kind of the high end, [and] a lot of the culture-setters and developers, I do think that skews quite a bit more towards iPhone and iOS. So I'd say on mobile, Apple has really carved out quite a good position for themselves, and that's why they're the most valuable company in the world, or maybe one of the couple most valuable companies in the world.
Zuckerberg said that Meta's north star should be, and is, whether it will be able to get over a billion people into the metaverse, shopping and spending hundreds of dollars in digital commerce. Our north star is can we get a billion people into the metaverse doing hundreds of dollars a piece in digital commerce by the end of the decade? If we do that, we'll build a business that is as big as our current ad business within this decade. I think that's a really exciting thing. I think a big part of how you do that is by pushing the open metaverse forward, which is what we're going to do.
Wrapping up his response to the question, Zuckerberg summed up Meta's competition with Apple as going beyond simply the metaverse but also the future of the internet as a whole. So yeah, Apple is going to be a competitor. I think that that's pretty clear, but it's actually a very deep competitor. It's not just [that] they have a device that has some more features than us. It's a very deep, philosophical competition about what direction the internet should go in. And I am proud of the investments that we're making to help push forward the open metaverse on this and hopefully make the next version of computing a bit more open.
You can learn more about Apple's AR/VR plans by visiting our comprehensive roundup.
Popular StoriesTitanium Apple Watch 'Pro' Could Signal the End of Apple Watch EditionThe larger Apple Watch Series 8 model expected to arrive later this year is rumored to feature a titanium casing, raising questions about the future of the Apple Watch Edition.
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In the latest edition of his "Power On" newsletter, Gurman said that this year's high-end Apple Watch model will be "a good bit bigger" than the current Apple Watch...AirPods Pro Now 1,000 Days Old: What to Expect From Next ModelThe AirPods Pro launched 1,000 days ago today and are the oldest current-generation Apple device still on sale.
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Sales tax holidays provide a limited-time opportunity to purchase select Apple products online or in store without paying sales tax. Eligible products and price... | Tech Giants |
Sky News host Cory Bernardi says “incredibly” Twitter employees built “blacklists” and limited the visibility of certain topics with zero rationale other than “oh I don’t like it”. “It conclusively shows how the deep state and the big tech giants are doing everything they can to deceive you, to promote false narratives and to control what you see, and what you hear and what you eventually think,” Mr Bernardi said. “It also explains why the lefties in power were so aghast at Musk buying the social media giant. It explains why Biden and his disgraceful cabal of crooked deep state operatives are quote ‘keeping a close eye on Twitter’. “The deep state is real, and they hate you and it’s time more of us hated them right back.” | Tech Giants |
Meta Platforms CEO Mark Zuckerberg told CNBC's Jim Cramer on Wednesday that the metaverse could be a considerable part of the social network operator's business in the second half of the decade."We hope to basically get to around a billion people in the metaverse doing hundreds of dollars of commerce, each buying digital goods, digital content, different things to express themselves, so whether that's clothing for their avatar or different digital goods for their virtual home or things to decorate their virtual conference room, utilities to be able to be more productive in virtual and augmented reality and across the metaverse overall," he said.Investors have cut the company's market capitalization in half this year as growth has slowed and the number of its daily active users declined sequentially for the first time between the last two quarters. Zuckerberg has been increasingly directing the company toward what he views as the next generation of content, a virtual world where people can buy and sell digital goods for avatars who can communicate with one another. The company's ticker symbol changed from FB, a relic of its history as a pure social media provider, to META earlier this month.But the company's investment in augmented reality and virtual reality dates back to 2014, when it paid $2 billion for headset maker Oculus VR. Shipments of headsets have failed to outnumber shipments of PCs or smartphones. Zuckerberg expressed optimism about the performance of its current-generation Meta Quest 2, which starts at $299."Quest 2 has been a hit," Zuckerberg told the "Mad Money" host."I've been really happy with how that's gone. It has exceeded my expectations. But I still think it's going to take a while for it to get to the scale of several hundreds of millions or even billions of people in the metaverse, just because things take some time to get there. So that's the north star. I think we will get there. But, you know, the other services that we run are at a somewhat larger scale already today."Experiences in the metaverse can be more immersive than text, photos or videos, which are pervasive on Meta's Facebook and Instagram, and so it will be a big theme for Meta over the next decade, Zuckerberg said.Zuckerberg met with Cramer in the metaverse. The Facebook co-founder said such experiences can foster a sense of being together, even if people are physically on the other side of the country. He said it's possible to make eye contact, which isn't guaranteed on video calls, and use spatial audio that allow for quiet side conversations.The technology "basically adds up to making it deliver this realistic sense of presence," he said.Bringing that to customers over the next several years will require Meta to release a stack of hardware, software and experiences."We are at this point, you know, a company that can afford to make some big long-term research investments, and this is a big focus," he said.He expects the economy around the metaverse to be massive, he said.Meta Platforms had 3.64 billion monthly active people across its family of applications in the first quarter, up 6% year over year. WhatsApp reached 2 billion users in 2020, and it's also an area where Zuckerberg sees the potential for growth."You know, our playbook over time has been build services, try to serve as many people as possible — you know, get our services to a billion, two billion, three billion people, and then we basically scale the monetization after that," Zuckerberg said. "And we've done that with Facebook and Instagram. WhatsApp is really going to be the next chapter, with business messaging and commerce being a big thing there."AI making recommendations, similar to TikTokIn addition to its metaverse spending, Meta is investing heavily in the development of artificial intelligence, which can bolster advertising — the source of around 97% of revenue — and the company's existing applications, Zuckerberg said."We're basically shifting from having most of the content that you see in Facebook and Instagram come from your friend or follow graph, to now, you know, over time, having more and more of that content just come from AI recommendations," Zuckerberg said. "And as the AI recommendations get better, you get access to, you know, not just the content from the people who you follow but the whole universe of content that's out there."It's a concept that TikTok, owned by China's ByteDance, used to propel itself to a billion monthly active users. Meta sought to respond to the rapid growth with the introduction of its Reels feature of Instagram in 2020. Reels makes up over one-fifth of the time people spend on Instagram, Zuckerberg told analysts on Meta's first-quarter earnings call in April. Now he expects AI enhancements to make Reels more compelling to Instagram's users."Our AI system can choose based on what it knows about you and what you personally are going to be interested in and learn about, what you want to see," he said. "So as we get better at that, you know, our engineers are shipping improvements to the models every week. We check something and, you know, relevance goes up by a few percent. And then we repeat and do that the next week. And, you know, this is just a huge part of what I've always focused on in running this company, is getting the velocity to be very quick, so we can keep on making fast improvements to this."Meta is also investing in hardware for AI, alongside other large technology companies, such as Alphabet and Microsoft."We just brought online the AI research supercluster, which, you know, we believe is going to be the fastest AI supercomputer when it's fully built out later this year, so that our researchers can build new and bigger models to both make the ranking and recommendations across our social media services and ads better."The company will slow its investment in AI in the event of a recession, Zuckerberg said.Comments on Sandberg's departureZuckerberg addressed questions around the departure of Sheryl Sandberg, the company's operating chief. Sandberg built up Facebook's advertising business, making its 2012 initial public offering possible. The Wall Street Journal reported that she left after Meta began a review of her use of company resources for wedding planning. A Meta spokesperson told the newspaper that internal investigations of Sandberg didn't have anything to do with her choice to step down."I don't think any of the stuff that's been reported contributed to her leaving the company," Zuckerberg said. "Of course, you'd have to ask her about that. But what I can say is that I have nothing but gratitude for the amazing work that she's done at the company. She's going to stay on our board. She's a key person. She's a close friend."— CNBC's Jonathan Vanian contributed to this report.Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.DisclaimerQuestions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? [email protected] | Tech Giants |
WASHINGTON, Sept 26 (Reuters) - The U.S. Federal Trade Commission filed a long awaited antitrust lawsuit against Amazon.com on Tuesday, and asked the court to consider forcing the online retailer to sell assets as the government pressed on with its fight to rein in Big Tech's domination of the internet.
The FTC said that Amazon restricts retailers on its marketplace from discounting, which stifled competition, and forced sellers to use its 'fulfillment service,' a reference to its nationwide network of delivery vans and warehouses, which some critics say should be hived off from Amazon's web business.
The lawsuit had been expected after years of complaints that Amazon.com (AMZN.O) and other tech giants abused their dominance of search, social media and online retailing to become gate keepers on the most lucrative aspects of the internet.
The FTC said that it was asking the court to issue a permanent injunction ordering Amazon.com to stop its unlawful conduct. The lawsuit was filed in federal court in Seattle, where Amazon is based.
"Left unchecked, Amazon will continue its illegal course of conduct to maintain its monopoly power," the FTC said in its complaint which asked the court "to put an end to Amazon's illegal course of conduct, pry loose Amazon's monopolistic control, deny Amazon the fruits of its unlawful practices, and restore the lost promise of competition."
The FTC complaint asked for the court to consider "any preliminary or permanent equitable relief, including but not limited to structural relief, necessary to restore fair competition."
Structural relief in antitrust jargon generally means a company sells an asset, such as a part of its business.
Amazon said that the FTC lawsuit was wrongheaded and would hurt consumers by leading to higher prices and slower deliveries.
"The practices the FTC is challenging have helped to spur competition and innovation across the retail industry, and have produced greater selection, lower prices, and faster delivery speeds for Amazon customers and greater opportunity for the many businesses that sell in Amazon’s store," said David Zapolsky, Amazon's general counsel.
Amazon shares were down 3.3%, although some investors saw upside.
"Either way, the shareholders win. If FTC loses its status quo, if company breaks up, the sum of the parts is greater than the whole as the AWS (cloud) business will command a very high multiple. Analysts will figure this out soon, but for now it's 'shoot first, ask questions later,'" said Thomas Hayes, chairman at Great Hill Capital.
The FTC said that Amazon, founded in 1994 and worth more than $1 trillion, punished sellers that sought to offer prices that were lower than Amazon's by making it difficult for consumers to find the seller on Amazon's platform.
Other allegations include that Amazon gave preference to its own products on its platforms over competitors also on the platform.
'MONOPOLY POWER'
FTC Chair Lina Khan said that Amazon had used illegal tactics to fend off companies that would have risen to challenge its monopoly.
"Amazon is now exploiting that monopoly power to harm its customers, both the tens of millions of families that shop on Amazon's platform and the hundreds of thousands of sellers that use Amazon to reach them," she said.
Khan, while a law student, wrote about Amazon.com's dominance in online retailing for "The Yale Law Journal" and was on the staff of the House committee that wrote a report issued in 2020 that advocated reining in four tech giants: Amazon.com, Apple (AAPL.O), Google and Facebook.
Amazon's critics welcomed the lawsuit.
"No corporation has ever centralized this much power across so many crucial sectors. Left unchecked, Amazon’s power to dictate and control threatens the rule of law and our ability to maintain open, democratically governed markets," said Stacy Mitchell of the Institute for Local Self-Reliance, which has pushed for the government to act against Amazon.
The need to take action against Big Tech has been one of the few ideas that Democrats and Republicans have agreed on. During the Trump administration which ended in 2021, the Justice Department and FTC opened probes into Google, Facebook, Apple and Amazon.
The Justice Department has sued Google twice - once under Republican Donald Trump regarding its search business and a second time on advertising technology since Democratic President Joe Biden took office. The FTC sued Facebook during the Trump administration and Biden's FTC has pressed forward with the lawsuit.
Reporting by Diane Bartz, Additional reporting by David Shepardson and Samrhitha A, Editing by Chris Sanders, Matthew Lewis, Nick Zieminski
Our Standards: The Thomson Reuters Trust Principles. | Tech Giants |
A landmark antitrust lawsuit against Google begins today, with the California-based company accused of using illegal means to keep its monopoly power.
The historic legal battle against federal government lawyers - which comes just a week after Google's 25th birthday - is set to be the biggest in almost two decades, the outcome of which could have repercussions for the rest of the tech industry.
The last comparable antitrust lawsuit was filed against Microsoft in 1998.
"Back then, Google claimed Microsoft's practices were anti-competitive, and yet, now, Google deploys the same playbook to sustain its own monopolies," the US Department of Justice claims in its lawsuit.
It is alleged Google protects its franchise by shelling out billions of dollars annually to be the default search engine on the iPhone and on web browsers such as Apple's Safari and Mozilla's Firefox.
Google is also accused of rigging the market in its favour by requiring its search engine to be bundled with its Android software for smartphones if the device manufacturers want full access to the Android app store.
Google has denied any wrongdoing and claims it faces a wide range of competition despite commanding about 90% of the internet search market.
It argues its rivals range from search engines such as Microsoft's Bing to websites like Amazon and Yelp, where consumers can post questions about what to buy or where to go.
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Top executives at Google and its corporate parent Alphabet Inc, as well as those from other powerful technology companies, are expected to give evidence during the court case.
Among them is likely to be Alphabet chief Sundar Pichai.
Court documents also suggest that Eddy Cue, a high-ranking Apple executive, might be called as a witness.
The lawsuit was brought by former president Donald Trump's justice department, and President Joe Biden's administration has pressed on with it.
US District Judge Amit Mehta is not expected to issue a ruling until early next year.
If he decides Google broke the law, another trial will decide what steps should be taken to rein in one of the tech world's most powerful companies. | Tech Giants |
YouTube wants in on the short-form video game that TikTok dominates, but it's Meta that has key advertising advantages. With more than one billion monthly active users, TikTok’s explosion in popularity over the last two years forced other social media players to play catch-up, but that pivot is costing YouTube a quarter-billion dollars. A new report from the media analysts at MoffettNathanson shows that briefer videos cannibalize viewership (and creation) of longer ones, which means sacrificing commercials . MoffettNathanson now expects YouTube will miss out on $275 million in previously estimated ad revenue this quarter.
The researchers previously expected YouTube’s ad revenue to grow 9 percent this quarter to $7.49 billion. However, as usage trends toward its harder-to-monetize Shorts feature, MoffettNathanson now forecasts YouTube’s overall ad revenue to grow just 5 percent. As short-form becomes the form for social video, what was once the only cell-phone game in town also faces stiff competition from Meta’s Instagram and Facebook, both of which boast a solid track record of successfully monetizing new features. Released worldwide last July, Shorts differ from normal YouTube content in that videos are limited to 60 seconds, presented vertically, and play for users in an endlessly scrolling format. (You know, kind of like TikTok.) Instagram Reels and Facebook’s short-form video features are similar.
While YouTube is experiencing a real “Skip Ads” moment, analysts were pleasantly surprised on Wednesday when the platform reported that more than 1.5 billion people watch Shorts every month. (TikTok hasn’t updated its user count since the fall, but recent third-party estimates place it as high as 1.6 billion.)
With MoffettNathanson estimating YouTube total monthly active users at 2.9 billion, Shorts has an impressive 50 percent penetration — giving YouTube the lead over its competitors’ TikTok copycats. Snap Spotlight reaches an estimated 30 percent of its 612 million monthly active users and Instagram Reels access 43 percent of the app’s 154.9 million U.S. user reach.
Still: YouTube might have better penetration compared to Instagram, but MoffettNathanson believes Instagram users spend more time on the app’s short-form videos. “With an average view likely lasting only a few seconds, we estimate that this viewership accounts for only a small fraction of the over 1 billion hours consumed on YouTube daily,” the report reads.
YouTube and Meta are now forced to think as much about viewership as they are about penetration. TikTok’s popularity shows that users love short-form videos; if YouTube can’t offer them, it risks losing its dominant position in the social video space.
Meta and Alphabet executives both warned in recent earnings reports that going short will cost their companies. YouTube’s recent decision to prominently place Shorts right next to the Home button on its app is part of the reason why analysts are expecting the short-form hit to come for Alphabet this quarter. Compared to Instagram Stories, Facebook Reels serve just one-tenth the number of ads. TikTok videos come with a third of the number of ads as Instagram Stories. And on YouTube Shorts? Ads are “seemingly nonexistent,” MoffettNathanson wrote, as YouTube appears “to be just testing advertising solutions at the moment.”
This isn’t the first time big social media players have been forced to pivot. When Snapchat’s 2013 Stories feature quickly surpassed the popularity of its original messaging function, Instagram made its own copycat in 2016. Facebook introduced its version the following year. They needed to introduce the features in order to compete, but Meta had to scale user engagement before it could more fully monetize them.
“The pain Meta and YouTube are experiencing today largely mirrors the pain the former experienced several years ago as it transitioned to Stories. It took time for advertisers and advertising demand to adjust, but those few quarters of turbulence have since paid many returns,” MoffettNathanson wrote.
Even for short-form leader TikTok, analysts note that monetization is in the early stages. Advertising on the platform requires brands to create ads that differ from those they use on existing platforms, thanks to TikTok’s novel format. Still, MoffettNathanson notes that TikTok shows three times the number of ads as Reels.
Analysts expect short-form ad-load to ramp up over time on YouTube, Facebook, and Instagram. But they note that Meta has a key advantage: Meta Ads Manager allows advertisers to turn their existing News Feed or Stories ads into a Reels ad at the click of a button. Your move, YouTube. Sign Up: Stay on top of the latest breaking film and TV news! Sign up for our Email Newsletters here. | Tech Giants |
DOJ Google Antitrust Case Wraps With Apple Deal On Center Stage
Google pays as much as $10 billion per year to ensure that users access the internet through its search engine — payments that have blocked startups and fellow tech giants Apple Inc. and Microsoft Corp. from competing, according to the US Justice Department.
(Bloomberg) -- Google pays as much as $10 billion per year to ensure that users access the internet through its search engine — payments that have blocked startups and fellow tech giants Apple Inc. and Microsoft Corp. from competing, according to the US Justice Department.
This week, federal enforcers will rest their antitrust case against Alphabet Inc.’s search engine, the biggest tech monopoly case since Microsoft in the 1990s. The move marks the halfway point in the 10-week trial, after which Google gets to present a defense against the allegations and perhaps explain why it pays rivals to use the search technology it argues is simply superior.
Judge Amit Mehta isn’t expected to issue a decision until next year, though any resolution to the case is expected to drag out for years with appeals and a possible second trial to establish a remedy if the Justice Department wins.
High-profile tech executives from Microsoft’s Chief Executive Officer Satya Nadella to Apple’s top dealmaker Eddy Cue have taken the stand as the Justice Department has sought to prove Google illegally maintains its monopoly over online search and the rich advertising stream that accompanies it. Google’s own CEO, Sundar Pichai, is expected to testify in the coming weeks.
Over the past five weeks, Mehta has heard dozens of analogies about the search giant and its place in modern life for consumers and the companies trying to reach them. Google is a door or a gateway. It’s the only ferry to the island. It’s a card catalog to the infinite library that is the internet.
The Justice Department alleges the company has used its prime position to extract more and more money from advertisers – often by making opaque changes to the rules that control the ad auctions in which companies participate.
‘Toughest Hurdles’
The government has done “a solid job” laying out its case, said Bloomberg Intelligence analyst Jennifer Rie, who has been monitoring the trial. “One of the toughest hurdles for Google, once it starts its case-in-chief, is reconciling why it pays so much,” she said.
Google is set to begin its defense on Oct. 26. Companies like Apple and Samsung Electronics Co. use its search engine because it is the best and consumers can easily switch if they want, Google says.
Mehta has so far heard from 29 witnesses, including 11 Google employees and four former ones. Many of the current executives responded haltingly to the government’s questions, quibbling over wording and terminology, before turning effusive with their own lawyers, prepared with illustrated presentations on how search or search advertising work.
Read More: Google Search Is Like ‘Cigarettes or Drugs,’ Executive Said
In one of the more revealing internal documents, a senior Google finance executive likened its search advertising business to selling drugs since the company can simply ignore users and focus on ways to generate more money from advertising. And Pichai, years before he became CEO, questioned the wisdom of requiring Apple to exclusively use Google’s search engine in its Safari browser.
A nine-year Google veteran turned Booking Holdings Inc. executive called the search engine “a benevolent dictatorship” that imposes costly changes on advertisers by fiat. Sridhar Ramaswamy, who spent 15 years at Google helping build out its search advertising products, testified that the company’s focus on ads weakens the consumer experience and leads to “many unintended side effects that have large social consequences” related to privacy.
The Justice Department alleges that Google’s prominent position on a browser or mobile phone discourages people from switching to alternatives. In 2007, Google’s Chief Economist Hal Varian called the default home page a “powerful strategic weapon in the search battle,” according to documents introduced in the case. In 2014, Google determined that Android users “rarely stray away from pre-loaded apps.”
Google’s deals lock up between one-third and one-half of all search traffic in the US, according to the DOJ’s expert Michael Whinston. The company has deals with major smartphone manufacturers such as Samsung and wireless carriers AT&T Inc. and Verizon Communications Inc.
Apple Partnership
Mehta himself acknowledged “the heart of the case,” rests on one default deal in particular: Google’s 21-year partnership with Apple.
When the deal was first signed in 2002, it allowed Apple to use Google to power its Safari search for free. Over time the agreement evolved into a revenue-share where Google pays Apple a percentage of advertising sales. The Justice Department cited estimates that put the figure Google pays Apple at between $4 billion and $7 billion a year, though exact figures aren’t public.
Google and Apple say the agreement is “highly confidential” and details have dribbled out slowly because the judge allowed much of the testimony in the first two weeks to take place behind closed doors.
Testimony from Apple executives – John Giannandrea, the AI and machine learning head who defected from Google in 2018, and Cue, who negotiated the most recent version of the deal – defended the agreement because the company believes Google’s search engine offers the best results. The agreement also requires that Apple “support and defend” the deal in the face of regulatory challenges, Cue testified.
The Justice Department alleges the agreement prevents Apple from competing head-on with Google in search, even though the companies are each other’s biggest rival for mobile phones.
Even well-funded rivals like Microsoft have proved unsuccessful in dislodging Google. Beginning in 2013, Apple used Microsoft’s Bing for some of its newer features like the voice assistant Siri and Spotlight, which helps users find apps and files on devices. The company eventually switched to Google for those in 2017.
Microsoft’s Nadella testified that he has tried to persuade Apple to move away from Google as its default search engine every year since he became CEO in 2014, and the company was willing to lose billions on a deal. An agreement between Microsoft and Apple would have been “game-changing,” a senior Microsoft executive who formerly worked at Yandex Inc. said, since it would give Bing enough mobile traffic to significantly improve its results.
Earlier: Microsoft Was Willing to Drop Bing Name to Nab Apple Search Deal
Apple’s executives researched a potential shift. Cue set his devices to Bing for a few weeks in 2015 to personally test the difference, but said he didn’t think it provided good results. Giannandrea said he did the same in 2018 and found it “mostly” worked fine except for on more obscure searches. Apple later undertook a comparison study of the two search engines, concluding that Google provided better results everywhere except for desktop English-language searches, where Bing’s results tied with Google’s.
Privacy focused search engine DuckDuckGo’s talks with Apple likewise fizzled. The companies discussed in 2018 and 2019 making DuckDuckGo the default search engine for Safari’s private browsing mode, where it doesn’t track websites that a user visits or keep a history of what a person has accessed. Although executives with Safari were interested, Giannandrea nixed the idea.
Ramaswamy, who unsuccessfully sought to to build a subscription-based search engine alternative to Google called Neeva, testified that despite his connections to Apple insiders, he couldn’t even get the company to respond to a request to add the search engine to its list of options in Safari.
Google’s “payments effectively make the ecosystem exceptionally resistant to change,” he said. The complicated contracts “basically freeze even the executive staff of most of these companies into not wanting to touch it.”
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Tech Giants Play Too Big A Role In US Indo-Pacific Trade Talks, Critics Say
Technology giants are drawing protests as they aggressively try to shape a new US trade deal with Australia, South Korea and other members of the Indo-Pacific region that account for 40% of global economic output.
(Bloomberg) -- Technology giants are drawing protests as they aggressively try to shape a new US trade deal with Australia, South Korea and other members of the Indo-Pacific region that account for 40% of global economic output.
Activists, alarmed by the involvement of corporations in drafting the Indo-Pacific Economic Framework, have started a campaign to limit their role in writing the digital chapter of the new trade pact. Some are worried that the companies will use the agreement as a back-door way to head off domestic regulation and enforcement of antitrust laws.
They are stepping up that campaign as the trade negotiators convene for their fourth round of negotiations in Busan, South Korea this week. The framework “will become a key platform for expanding trade in the Indo-Pacific region and ensuring stable supply chains,” said South Korean trade minister Chang-Yang Lee at the start of the talks, which attracted about 650 people from around the world.
When talks were held in Australia in November, Alphabet Inc.’s Google and IBM Corp. co-hosted an invitation-only reception for negotiators. In the Singapore round in May, which was supposed to be mostly closed to outside stakeholders, sessions began late one morning because of a breakfast hosted by the tech industry. Elsewhere in the bustling conference center, a “war room” was run by the US Chamber of Commerce.
“Just like in past international trade agreements, Big Tech companies are swooping in to make sure they get carve outs,” said Maria Langholz, communications director with the left-leaning advocacy group Demand Progress. The firms, she said, want to “continue to enrich themselves through their anticompetitive behavior.”
The tech giants have been active in conversations with government officials: 34 of the 40 stakeholders who gave presentations in Singapore represented corporations or their groups, most of which had ties to tech, according to people familiar with the matter who requested anonymity to discuss confidential talks.
“We have very publicly advocated for the Indo-Pacific Economic Framework to include strong digital trade provisions that ensure digital technologies are widely accessible, and that support privacy, security, and trust in cross-border data flows” said Google spokesman José Castañeda.
A US Trade Representative’s office spokesperson said the US recognizes that it is costly for groups to fly out to the foreign locations where the talks are held, so USTR holds regular listening sessions about the trade talks in Washington. The spokesperson denied that the Singapore session started late because of the breakfast, saying other meetings ran long.
IBM didn’t respond to a request for comment.
Senator Elizabeth Warren, a Massachusetts Democrat, told Bloomberg News that she has “concerns that the industry is trying to use IPEF as an end run around facing meaningful regulation here or in other countries.”
Trade Representative
Although trade policy has typically been dominated by corporations, US Trade Representative Katherine Tai has argued that it’s time to disentangle trade from the interests of big business, and particularly tech.
Sam Michel, a spokesman for Tai, said the final agreement will make the interests of workers a priority.
“As with all trade negotiations, USTR seeks input from a broad range of stakeholders and consults closely with members of Congress,” Michel said. “Their input guides the development of IPEF text, including the digital trade chapter. We are confident that the final IPEF agreement will align with President Biden and Ambassador Tai’s vision for a worker-centered trade policy.”
A USTR spokesperson added that Tai has been receptive to the feedback, and has talked to Warren about the issue several times.
The companies say robust digital rules will protect industries beyond tech. They’ve been pushing for IPEF to include provisions identical to digital trade sections of the US-Mexico-Canada Agreement. Some technology lobbyists privately say they are pushing for “USMCA plus” or “USMCA minus.” They argue those provisions support typical trade priorities, such as protecting American companies.
“This not about helping the largest firms or benefiting technology companies, but rather ensuring a regulatory environment among key trading partners that empowers a wide variety of businesses as most rely on digital services and tools to compete globally,” said Jonathan McHale, the vice president of digital trade for the Computer and Communications Industry Association, a trade group that counts Amazon.com Inc., Google, and Meta Platforms Inc. as members.
TPP Replacement
The Indo-Pacific Economic Framework is envisioned as a way to curb China’s trade influence in Asia. It’s a replacement for the Trans-Pacific Partnership, which the US withdrew from under President Donald Trump. President Joe Biden did not rejoin a successor agreement. The framework has 14 members: the US, Australia, Brunei, India, Fiji, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
Negotiations have been underway for about six months and the fourth round is scheduled for July 9-15 in Busan, South Korea.
The anxiety centers mainly on IPEF’s digital trade chapter. An initial version of the chapter proposed by the US would have effectively stymied any efforts by the countries to regulate the tech companies, according to people familiar with the initial proposal.
Echoing language in the US pact with Mexico and Canada, the US proposal included provisions that would effectively prevent member countries from passing legislation that disproportionately affected the tech industry, including on topics such as market dominance and privacy.
The pressure campaign by the left has escalated in recent months. Warren in May released a report showing American trade officials solicited the advice of lobbyists for Amazon, Google and other tech giants to help craft IPEF. Demand Progress parked a truck outside of a trade meeting in Detroit, calling on Tai and Commerce Secretary Gina Raimondo to “stop helping big tech.”
Tai has acknowledged the concerns from progressives. “We need to be very, very mindful of how we expand this conversation around digital economy and digital trade to a set of stakeholders beyond just the biggest companies,” Tai said at a June 12 conference.
(Updates with quote from South Korean trade minister in third paragraph.)
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A GrabFood delivery rider in Singapore.Bryan van der Beek | Bloomberg | Getty ImagesSoutheast Asian tech giants Grab and Gojek said they are "supportive" of recommendations made by an advisory committee to expand gig worker protection in Singapore starting in 2024.In Singapore, platform or gig workers, often ride-hailing or food delivery drivers, have thus far been considered self-employed. As a result, they do not receive employer contributions to the Central Provident Fund, the national pension savings scheme.As of 2020, the city-state's Ministry of Manpower estimated that such workers made up about 3% of the resident workforce, or 79,000 people.While the recommendations, accepted by the government Wednesday, said these workers should not be classified as employees, they stipulated platforms that exert a significant level of management control over gig workers must provide them with certain basic protections including CPF contributions and injury compensation starting in 2024.Under the CPF measure, both platform workers and platform companies such as Grab, Gojek, Foodpanda and Deliveroo will need to make contributions at the same rate as employees and employers. This applies if the worker is younger than 30-years-old in the first year of implementation, while it is on a voluntary basis for those aged 30 and above.Read more about tech and crypto from CNBC ProFor example, employees aged 55 and below who are Singapore citizens and permanent residents are required to contribute 20% of their salary to CPF while their employers contribute 17%.Increased CPF contributions over five years are expected to be phased in, unless major economic disruption warrants a longer timeline.Platform companies are also required to provide the same scope and level of work injury compensation as employees are entitled to.Concerns about rising costs and competitionA Grab spokesperson said current macroeconomic conditions such as inflation "coupled with the potential high operational and implementation costs" requires gradual implementation of the recommendations.The spokesperson also said that with the challenge of being one of the first platforms to implement work injury compensation and income loss insurance, it would "require a trial of the concept involving a smaller group of workers across platforms.""We will be guided by these considerations to ensure minimum impact on our partners' earnings and consumer prices," the Grab spokesperson said in emailed comments.Gojek told CNBC that they, too, are "supportive" of this review and said the recommendations will build on their existing driver benefits program."Practically however, CPF contributions will mean less take-home earnings for our driver-partners. Implementing these recommendations will also impact costs to platforms and consumers, and driver-partners may experience lower demand for rides," a Gojek spokesperson told CNBC via email. Gojek also cited rising costs being one of the challenges.Grab said the measures should be applied to all industry players for the sake of fairness."Grab is of the view that street-hail taxi and third-party logistics companies should also be covered under the set of recommendations as they similarly tap on gig workers with the same workplace protection needs for their business requirements," the Grab spokesperson said."Excluding them will result in an unlevel playing field and may lead to price and market distortion. It may also encourage other industry players to innovate and fit their business models to the exclusion guideline which may then render the recommendations ineffective."— CNBC's JP Ong contributed to this report. | Tech Giants |
The Government Has a Plan To Get Tech Companies To Take Cybersecurity Seriously
A key federal agency hopes to encourage tech vendors to up their security game by taking its case to their customers.
LAS VEGAS — The Biden administration has a strategy for pressuring tech companies to step up their cybersecurity game and make more security features free and automatic: encourage their customers to demand those improvements.
“If we can generate enough customer demand, we can start to change [vendors’] practices,” Jack Cable, a senior technical adviser at the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA), told The Messenger during an interview at the Black Hat cyber conference.
CISA has embarked on a campaign to prod tech vendors to make their products “secure by default” (meaning that they’re well-designed, with minimal bugs) and “secure by default” (meaning that vital security features don’t cost extra and don’t have to be turned on). The effort reflects the Biden administration’s conviction that protecting America from hackers requires shifting the security burden onto the vendors whose products are so often compromised.
But many major tech firms, including Amazon and Google, have resisted some of CISA’s recommendations. Microsoft only recently adopted one of CISA’s main suggestions after a Chinese cyberattack exposed shortcomings in its systems.
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Cable said that CISA is being careful in how it promotes its recommendations. “We're not going to publicly shame companies for not taking the right steps. We don't view that as our role,” he said. “We want to paint what good [security] looks like, and we want to help give customers what they need to evaluate products based on that.”
The success of this campaign will help determine the future of U.S. cybersecurity, as tech vendors either make it easier to operate safely online or continue charging extra for basic features and forcing users to jump through hoops to turn them on.
To encourage customers to prod their vendors for better security, CISA is producing guidance documents that lay out the questions that customers should be asking. One such document is aimed at K-12 schools, which have faced serious cyberattacks due to security lapses at education technology vendors.
“It's about getting the word out... when we're talking to small businesses or state and local governments, making sure that they understand that it's within their power to put pressure on their vendors to ask them to do better,” Cable said.
Of course, if CISA wants customers to make purchasing decisions based on security, the agency will need to push vendors to disclose that information more transparently. As part of that effort, CISA is developing a new guidance document that will help vendors figure out how to publicly demonstrate their security posture.
Cable said CISA has seen “great engagement” in its private meetings with vendors about improving their security, but it’s unclear how many companies have committed to making changes.
On the education technology front, Cable said “we've done some work to secure commitments from K-12 vendors and have some announcements pending on that.”
CISA is also working with the FCC and the National Institute of Standards and Technology to inform their work on a government-backed cybersecurity label for internet of things devices, with the goal of incorporating CISA’s security recommendations into the criteria necessary to be certified to use the label.
In addition to encouraging customers to demand better cybersecurity, CISA is also making its case directly to vendors. Cable emphasized that these meetings are aimed at the executives who make decisions, not the technologists who in many cases have spent years pushing for these changes from the inside. In fact, he said, one of CISA’s goals is to give those technologists government backing when they make their case to their supervisors that it’s time for changes.
Many of those changes, Cable noted, only require a willingness to implement them, not the invention of complicated new technologies. “For a lot of what we talk about... solutions have been around for a while,” he said. “This isn't, at its core, a technical problem. It's a business problem.”
CISA wants to understand “the business aspects that might be getting in the way” and “see how we can influence that to be on the better side of security,” Cable said.
For example, some companies want to eliminate old and insecure features but face pressure from customers to keep them. Cable said CISA wants to “steer the national conversation” toward “accepting that we’re not going to be able to use every feature we've always had” and “making sure that security wins in those discussions.”
CISA has seen “an incredible amount of interest” from companies that want to meet its recommendations, Cable said. Now the agency has to stay on guard against “empty promises.”
“We want to see companies actually show their work and say, ‘Okay, these are the specific, publicly demonstrable ways in which we're doing that.’”
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Facebook may stop removing false or misleading COVID-19 posts and label or demote them instead, it said Tuesday. The Meta-owned social network is considering the move as it seeks advice from its independent oversight board on whether to modify its COVID-19 misinformation policy.Facebook expanded its harmful misinformation policy in early 2020 as the virus spread across the globe, allowing for posts that could lead to an "imminent risk of physical harm" to be removed worldwide, rather than only being taken down at the advice of local partners and experts. This was designed to combat misinformation about the pandemic, such as false claims about the effectiveness of masks, social distancing and the transmissibility of the virus.In late 2020, as first doses of vaccines began rolling out, Facebook updated its policy to also remove vaccine misinformation. To date, more than 25 million pieces of content have been removed since the beginning of the pandemic, according to Meta.But now, amidst rapidly shifting pandemic trends and declining stocks for the company in the year so far, Meta is looking into revising its policy, beginning with input from its oversight board."The policies in our Community Standards seek to protect free expression while preventing this dangerous content. But resolving the inherent tensions between free expression and safety isn't easy, especially when confronted with unprecedented and fast-moving challenges, as we have been in the pandemic," the company said.Facebook's content moderation guidelines have long been a contentious topic, with the company being accused both of enabling hate speech to optimize profit and limiting free speech in recent years.Meta's independent oversight board comprises legal advisers from various think tanks, professors from universities across the globe, journalists and human rights advocates. In this case, Meta requested an advisory opinion from the oversight board, meaning recommendations they provide to the company are non-binding. | Tech Giants |
A small Nebraska company is helping law enforcement around the world spy on users of Google, Facebook and other tech giants. A secretly recorded presentation to police reveals how deeply embedded in the U.S. surveillance machine PenLink has become. PenLink works closely with U.S. government agencies in tapping phones and in collecting data from interceptions of social media giants like Facebook, Google Snapchat and WhatsApp. (Photo by Muhammed Selim Korkutata/Anadolu Agency/Getty Images)Getty Images PenLink might be the most pervasive wiretapper you’ve never heard of. The Lincoln, Nebraska-based company is often the first choice of law enforcement looking to keep tabs on the communications of criminal suspects. It’s probably best known, if it’s known at all, for its work helping convict Scott Peterson, who murdered his wife Laci and their unborn son in a case that fomented a tabloid frenzy in the early 2000s. Nowadays the company has been helping cops keep tabs on suspected wrongdoing by users of Google, Facebook and WhatsApp – whatever web tool that law enforcement requests. With $20 million revenue every year from U.S. government customers such as the Drug Enforcement Administration, the FBI, Immigration Customs Enforcement (ICE) and almost every other law enforcement agency in the federal directory, PenLink enjoys a steady stream of income. That doesn’t include its sales to local and state police, where it also does significant business but for which there are no available revenue figures. Forbes viewed contracts across the U.S., including towns and cities in California, Florida, Illinois, Hawaii, North Carolina and Nevada. “PenLink is proud to support law enforcement across the U.S. and internationally in their effort to fight wrongdoing,” the company said. “We do not publicly discuss how our solution is being utilized by our customers.” Sometimes it takes a spy to get transparency from a surveillance company. Jack Poulson, founder of technology watchdog Tech Inquiry, went incognito at the National Sheriffs’ Association’s winter conference in Washington. He recorded a longtime PenLink employee showing off what the company could do for law enforcement and discussing the scale of its operations. Not only does the recording lift the lid on how deeply involved PenLink is in wiretapping operations across the U.S., it also reveals in granular detail just how tech providers such as Apple, Facebook and Google provide information to police when they’re confronted with a valid warrant or subpoena. Scott Tuma, a 15-year PenLink veteran, told attendees at the conference that the business got off the ground in 1987 when a law enforcement agency had an abundance of call records that it needed help organizing. It was in 1998 that the company deployed its first wiretap system. “We’ve got those, generally, scattered all over the U.S. and all over the world,” Tuma said. Though he didn’t describe that tool in detail, the company calls it Lincoln. Today, it’s social media rather than phones that’s proving to be fertile ground for PenLink and its law enforcement customers. Tuma described working with one Justice Department gang investigator in California, saying he was running as many as 50 social media “intercepts.” PenLink’s trade is in collecting and organizing that information for police as it streams in from the likes of Facebook and Google. Jennifer Stisa Granick, surveillance and cybersecurity counsel for the American Civil Liberties Union, believes the PenLink claims show how government might be overreaching when it comes to American privacy laws. (Photographer: Jim McAuley/Bloomberg)© 2021 Bloomberg Finance LP The PenLink rep said that tech companies can be ordered to provide near-live tracking of suspects free of charge. One downside is that the social-media feeds don’t come in real time, like phone taps. There’s a delay – 15 minutes in the case of Facebook and its offshoot, Instagram. Snapchat, however, won’t give cops data much more than four times a day, he said. In some “exigent circumstances,” however, Tuma said he’d seen companies providing intercepts in near real time.
Making matters trickier for the police, to get the intercept data from Facebook, they have to log in to a portal and download the files. If an investigator doesn’t log in every hour during an intercept, they get locked out. “This is how big of a pain in the ass Facebook is,” Tuma said. PenLink automates the process, however, so if law enforcement officers have to take a break or their working day ends, they’ll still have the intercept response when they return. A spokesperson for Meta, Facebook’s owner, said: “Meta complies with valid legal processes submitted by law enforcement and only produces requested information directly to the requesting law enforcement official, including ensuring the type of legal process used permits the disclosure of the information.” Jennifer Granick, surveillance and cybersecurity counsel at the American Civil Liberties Union, reviewed the comments made by Tuma. She raised concerns about the amount of information the government was collecting via PenLink. “The law requires police to minimize intercepted data, as well as give notice and show necessity,” she said. “It’s hard to imagine that wiretapping 50 social media accounts is regularly necessary, and I question whether the police are then going back to all the people who comment on Facebook posts or are members of groups to tell them that they’ve been eavesdropped upon.”
She suggested that Tuma’s claim that a “simple subpoena” to Facebook could yield granular information – such as when and where a photo was uploaded, or when a credit-card transaction took place on Facebook Marketplace – may be an overreach of the law.
There’s a lot of nuance involving where government actions might stray over the line, said Randy Milch, a New York University law professor and former general counsel at telecoms giant Verizon Communications. “While I’m sympathetic to the idea that the government is going to ask for more than it needs, simply saying ‘too much data must mean an overreach’ is the kind of arbitrary rule that isn’t workable,” he told Forbes. “The government doesn't know the amount of the data it’s seeking” before the fact. Milch noted that the Stored Communications Act explicitly allows for subpoenas to collect records including names, addresses, means and source of payment, as well as information on session times and durations.
‘Google’s the best’
In his Washington talk, Tuma gushed over Google’s location-tracking data. Google “can get me within three feet of a precise location,” he said. “I cannot tell you how many cold cases I’ve helped work on where this is five, six, seven years old and people need to put [the suspect] at a hit-and-run or it was a sexual assault that took place.” If people are carrying their phones and have Gmail accounts, he said, law enforcement “can get really lucky. And it happens a lot.” Facebook, by comparison, will get a target within 60 to 90 feet, Tuma said, while Snapchat has started providing more accurate location information within 15 feet.
Snapchat didn’t respond to requests for comment. Tuma also described having a lot of success in asking Google for search histories. “Multiple homicide investigations, I’ve seen it: ‘How to dispose of a human body,’ ‘best place to dump a body.’ Swear to God, that’s what they search for. It’s in their Google history. They cleared their browser and their cookies and things, they think it’s gone. Google’s the best.” A Google spokesperson said the company tries to balance privacy concerns with the needs of police. “As with all law enforcement requests, we have a rigorous process that is designed to protect the privacy of our users while supporting the important work of law enforcement,” the spokesperson said.
Tuma described Apple’s iCloud warrants as “phenomenal.” “If you did something bad, I bet you I could find it on that backup,” he said. (Apple didn’t respond to requests for comment.) It was also possible, Tuma said, to look at WhatsApp messages, despite the platform’s assurances of tight security. Users who back up messages effectively remove the protection provided by the app’s end-to-end encryption. Tuma said he was working on a case in New York where he was sitting on “about a thousand recordings from WhatsApp.” The Facebook-owned app may not be so susceptible to near real-time interception, however, as backups can only be done as frequently as once a day. Metadata, however, showing how a WhatsApp account was used and which numbers were contacting one another and when, can be tracked with a surveillance technology known as a pen-register. PenLink provides that tool as a service.
All messages on WhatsApp are end-to-end encrypted, said a company spokesperson, and it’s transparent about how it works with law enforcement. “We know that people want their messaging services to be reliable and safe – and that requires WhatsApp to have limited data,” the spokesperson said. “We carefully review, validate and respond to law enforcement requests based on applicable law and in accordance with our terms of service, and are clear about this on our website and in regular transparency reports. This work has helped us lead the industry in delivering private communications while keeping people safe, and has led to arrests in criminal cases.” They pointed to a release last year of a feature that allows users to encrypt their backups in the iCloud or Google Drive, while noting that when they respond to a law enforcement request, they don’t provide the data to any private company like PenLink, but directly to law enforcement.
Going dark or swimming in data?
In recent years, the FBI and various police agencies have raised concerns about end-to-end encryption from Google or Facebook cutting off valuable data sources. But Tuma said that Silicon Valley’s heavyweights aren’t likely to start hiding information from police because it would mean doing the same to advertisers. “I always call B.S. on it for this reason right here: Google’s ad revenue in 2020 was $182 billion,” Tuma said. Granick of the ACLU said that such claims showed that the FBI, contrary to what the bureau claimed, wasn’t losing sight of suspects because of encrypted apps like WhatsApp. “The fact that backups and other data are not encrypted creates a treasure trove for police,” Granick said. “Far from going dark, they are swimming in data.” It’s noteworthy that Signal, an encrypted communications app that’s become hugely popular in recent years, does not have a feature that allows users to back up their data to the cloud.
Indeed, the amount of data being sent by the likes of Google and Facebook to police can be astonishing. Forbes recently reviewed a search warrant in which the police were sent 27,000 pages of information on a Facebook account of a man accused of giving illegal tours of the Grand Canyon. Tuma said he’d seen even bigger returns, the largest being around 340,000.
Though its headcount is small – less than 100 employees, according to LinkedIn – PenLink’s ability to tap a wide range of telecoms and internet businesses at scale has made the company very attractive to police over the last two decades. Over the last month alone, the DEA ordered nearly $2 million in licenses and the FBI $750,000.
Through a Freedom of Information Act request, Forbes obtained information on a $16.5 million PenLink contract with ICE that was signed in 2017 and continued to 2021. It details a need for the company’s suite of telecommunications analysis and intercept software applications, including what it called its PLX tool. The contract requires PenLink, at a minimum, to help wiretap a large number of providers, including AT&T, Iridium Satellite, Sprint, Verizon, T-Mobile, Cricket, Cablevision, Comcast, Time Warner, Cox, Skype, Vonage, Virgin Mobile and what the government calls “social media and advertising websites” such as Facebook and WhatsApp.
PenLink’s work wouldn’t be possible without the compliance of tech providers, who, according to Granick, “are storing too much data for too long, and then turning too much over to investigators. Social media companies are able to filter by date, type of data, and even sender and recipient. Terabytes of data are almost never going to be responsive to probable cause, which is what the Fourth Amendment requires.” | Tech Giants |
Amazon will launch some early deals as soon as June 21 Amazon's highly-anticipated two-day shopping bonanza for Prime members will kick off on July 12. The eCommerce behemoth announced its Prime Day dates Thursday, well after telling investors in April that the event, a key driver of sales for the company, would kick off in July.This year, the company is touting there will be more sellers and some of its lowest prices for certain products in an effort to incentive consumers to sign up. However, this is the first Prime Day event since the company increased its Prime fees for the first time since 2018. AMAZON PRIME DAY 2022 IS COMING THIS SUMMER. WHAT WE KNOWHere's what you need to know: The 48-hour event will start at 3 a.m. EST on July 12 and will run through July 13 in 20 countries. This will be the first time Prime Day will kick off in Poland and Sweden as well. Even though Prime Day kicks off in July, the company announced some early deals will start as soon as June 21. This includes 55% off select Amazon devices and up to 50% off Fire TV in addition to other deals from brands like De'Longhi, Dove and SodaStream, according to Amazon. INFLATION HITS AMAZON: PRICE OF PRIME MEMBERSHIPS GOING UPDuring the actual two-day event, some featured brands offering deals include Beats, Casper, ELEMIS, Levi’s, iRobot and SharkNinja. The company also said that it will have the "lowest prices ever" on select products from brands like Sony, Bose and GE. More top national brands and more third-party sellers are selling goods this year than in 2021, which includes many small and medium-sized businesses. Ticker Security Last Change Change % AMZN AMAZON.COM INC. 103.85 -3.82 -3.55% This year, Amazon members can earn credit to put toward their Prime Day purchases and receive custom product recommendations. Members can subscribe to receive deal alert notifications related to recent Amazon searches or recently viewed items, according to Amazon. During the actual Prime Day event, members will get push notifications on any available deals, according to Amazon. CLICK HERE TO READ MORE ON FOX BUSINESSMembers can also ask Alexa to notify them of certain deals and even when Prime Day starts. Those who are not members can sign up ahead of the event; however, unless you have a free trial waiting, it will cost you more this year.Amazon's annual memberships increased from $119 to $139 and monthly Prime memberships rose from $12.99 to $14.99, which equates to about $180 each year. | Tech Giants |
A tease of what’s to come in the new Google Home app. Image: GoogleGoogle has decided this is the week it’s overloading us with new stuff. Mere days before another major event where it will announce the Pixel 7 smartphone and Pixel Watch for Android users, the company announced a heap of updates to its smart home ecosystem.OffEnglishThe Google Home app is getting a much-needed revamp, including new menu structures and an easier way for users to bookmark oft-used smart home gadgets. Built-in support for Matter is also on the docket, as it’s the smart home unifier we’ve been waiting for across platforms. And starting today, you can choose from two more Google devices in the smart home: the second-generation wired version of the Nest Doorbell and the new Wi-Fi 6E-compatible Nest Wifi Pro.Two new Nest devices The new wired Nest Doorbell. Image: GoogleFirst, let’s get these new devices out of the way. Google has finally released the wired Nest Doorbell it said it would make last year. This version is the successor to 2018’s Nest Hello, the company’s first wired doorbell. It’s an alternative for folks who didn’t like last year’s battery-powered Nest Doorbell’s limitations on 24/7 recording.The second-gen Nest Doorbell is a wired doorbell installation. If you’re planning on upgrading, it can go right on top of where the old Nest Hello used to live. The device boasts more computing power than its predecessor, twice the memory, and HDR recording. It also has a built-in machine learning chip for on-device facial recognition. Like the rest of the Nest security camera family, the wired Nest Doorbell will utilize Activity Zones that can recognize familiar faces with a Nest Aware subscription. Nest Aware costs $6/month for 30 days of video history, though you’ll have to pay $12/month for Nest Aware Plus to access the wired doorbell’s ten days of 24/7 video recording capabilities. If you don’t pay for Nest Aware, you’ll max out at three hours of event history, with clips up to five minutes long.We’ll hopefully get a chance to test the wired Nest Doorbell against last year’s release and the first-gen Nest Hello. The device is available in the U.S. and Canada for $180. It comes in four colors: Snow, Ash, Linen, and Ivy, which looks like a green-black. The Nest Wifi Pro in a selection of colors. Image: GoogleIt’s been circulating in the rumor mill, and now it’s a real thing: Google has also announced the Nest Wifi Pro. Though this is the third-generation Nest Wifi device, this is the first time Google offers a wifi router with a 6GHz band. The Nest WiFi Pro is compatible with Wi-Fi 6E and offers combined max speeds of up to 5.4 Gpbs. There are two 1GB ports built into each router node for hardwiring to your network and devices elsewhere in the home. A two-pack costs $300 and will cover up to 4,400 square feet, while a three-pack costs $400 and reaches up to 6,600 square feet. You can buy additional nodes at $200/piece to increase capacity as needed.Like its previous wifi routers, the Nest Wifi Pro uses machine learning to prioritize “critical activities,” including streaming video and video chat. You can also use the Google Home app on your smartphone to configure the router, including setting up parental controls or pausing wifi on a nefarious user in the household. The Nest Wifi Pro comes in four colors, so you don’t have to hide it in the corner of your room. The colors are Fog, Linen, Snow, and Lemongrass, which has a green-hinged hue that looks akin to the teased promotional colorways of the upcoming Pixel 7 smartphone. You can pre-order the router now, though it doesn’t officially launch until Oct. 27. Matter on the horizon Matter, the next smart home standard that’s supposed to help unify the fragmented, disparate connected ecosystems that currently exist, is expected to go live sometime this winter. In preparation, Google has announced the Nest WiFi Pro can serve as a Thread border router. Thread is one of the underlying technologies of Matter, and you’ll be able to bring in a Nest WiFi Pro to act as a smart home hub of sorts. Additionally, devices like the Nest Hub Max, Nest Hub 2nd-gen, and last-gen Nest Wifi already have Thread built-in and can operate as Matter controllers.Google will also leverage its Fast Pair connection capabilities within the Google Home app to simplify how Matter-enabled devices get online. Fast Pair is built into the smartphones Android users already wield. The capability will essentially scan for devices that haven’t yet been added to the network, then guide you through the setup process. Since Fast Pair is built into Google Play services as an update, anyone running Android 8 and up should have access to this Bluetooth LE-based feature. Google Home gets a makeoverThe Google Home app on Android and iOS will be overhauled in the coming months. The company promises fewer taps to get what you want and more customization options throughout. Google wants the Home app to be “the single best place for you to set up.”A look at how Favorites will be laid out in the new Google Home app revamp. Screenshot: GoogleThe Google Home app will adopt a new Favorites panel, which lets you personalize your smart home controls so that only the most vital devices, actions, and automations sprout up first. Favorites will let you pin Nest cameras in your home for quicker viewing of the live feed—no additional clicks required. Nest security camera users can attest that the current implementation makes you tap around too much before you can see what’s happening.Spaces are another way you’ll interact with the new Google Home app. Spaces allow you to group devices by categories, like lights and cameras or other remote-controlled network devices. The idea is to let you think of gadgets outside their “rooms.” For instance, if you’ve got a children’s play area adjacent to an open room, you could set that up as a “space” and designate only smart home devices that directly affect the lighting of that particular zone. The idea is to give you more granular control over niche smart home situations without requiring you to tap around too much in the Home app.Google will launch a script editor within the Home app for heavy-duty automation heads early next year. This is a first for Google and will make the Home app slightly more robust than its current implementation. Until now, if you wanted real tinkering over your Google-led smart home, you had to get a third-party app like Samsung SmartThings or Homey. As for folks who don’t know where to start down the automation path, Household Routines are coming to the Google Home app to help suggest starter actions based on what you already have installed in your smart home. It’s about time Google revamped the Google Home app, though it’ll be a while before we can tell how much more organized or effective the makeover is. The new app will be available as a Public Preview, akin to how you can test-drive Android before it’s available for everyone else. Remember to request an invite to the program if you’re interested.A look at the different ways you can customize Spaces in the new Google Home app. Image: GoogleLastly, Google is bringing home controls back to the web. In a few weeks, the company will start to roll out a new “camera experience” to view your Nest security footage on home.google.com. You won’t have to grab a smartphone or command a display to see why your cameras are buzzing. Previously, you could only control legacy Nest devices through the browser, so it’s good to see the web version finally includes the latest generation of connected Google devices. Google will continue to support legacy Nest devices like its first-gen security cameras. However, it recommends upgrading if you want access to new features, like the new Nest Camera’s on-device facial recognition capabilities. As for the standalone Nest app, it will remain in “maintenance mode,” though Google plans to move its capabilities directly into the Google Home app. | Tech Giants |
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