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Paul Merrell

Epic Games accuses Google of bullying and bribing to block competition to its Android app store | The North State Journal - 0 views

  • oogle on Monday confronted the second major U.S. antitrust trial in two months to cast the internet powerhouse as a brazen bully that uses its immense wealth and people’s dependence on one of its main products to stifle competition at consumers’ expense. The trial that opened in a San Francisco federal court targets the Google Play Store that distributes apps for the company’s Android software that powers virtually all the world’s smartphones that aren’t made by Apple. The case, stemming from a lawsuit filed by video game maker Epic Games, alleges Google has created an illegal monopoly on Android apps primarily so it can boost its profits through commissions ranging from 15% to 30% on purchases made within an app. “The result of what Google is doing is higher prices, lower quality and less choice for everybody,” Epic attorney Gary Bornstein said Monday during a 45-minute opening statement before the 10-person jury that will decide the case.
Paul Merrell

Mass. health officials worked with Google to covertly install COVID 'spyware' into 1M phones, lawsuit claims | Fox Business - 1 views

  • The Massachusetts Department of Public Health (DPH) is facing a class-action lawsuit for allegedly using Google technology to covertly install tracking apps on over one million Android phones as part of the state government’s efforts to slow the spread of COVID-19 through contact tracing. In a lawsuit filed Tuesday, the New Civil Liberties Alliance (NCLA), a nonpartisan civil rights firm, accused the Bay State’s health department of "brazen disregard for civil liberties" by installing "spyware that deliberately tracks and records movement and personal contacts onto over a million mobile devices without their owners’ permission and awareness." The class-action suit claims DPH is in violation of both the Massachusetts and U.S. Constitutions.
Paul Merrell

Senate to mark up antitrust bills targeting Apple, Google and Amazon - 1 views

  • The Senate Judiciary Committee is set to deliberate on the American Innovation and Choice Online Act, which some experts consider to have the most realistic chance of becoming law out of broad slate of reforms, while creating major change in the industry. The committee schedule also lists a markup of the Open App Markets Act, another bipartisan competition bill.Both bills would prevent certain dominant tech platforms from favoring their own products or services over others that rely on their marketplaces to do business. But the Open App Markets Act’s impact would primarily be limited to those that run app stores, like Apple and Google, while the American Innovation and Choice Online Act would be more expansive, potentially preventing a company like Amazon from giving its own private label products a better ranking in its search than a third-party competitor.Apple and Google could similarly be barred from unfairly ranking their own apps above competitors’ in their mobile app stores, and for Google, the same principle would apply to its general search engine as well
Paul Merrell

'Major Win': Judge Says Suit to Break Up Facebook Empire Can Proceed - 0 views

  • A federal judge ruled Tuesday that the Federal Trade Commission's revised antitrust lawsuit against Meta Platforms, the parent company of Facebook, can move forward—a potentially significant blow to the social media empire, which sought to have the case dismissed.In an amended complaint filed last August, the FTC provided additional data and stronger details to back up its allegations that Facebook has maintained a monopoly on social networking services for the past decade by "illegally acquiring innovative competitors and burying successful app developers."U.S. District Judge James Boasberg—who in June dismissed the FTC's first antitrust complaint against Facebook, calling it "legally insufficient"—wrote in Tuesday's ruling that the evidence in the agency's second filing is "far more robust and detailed than before."
Paul Merrell

Google Sued By 36 States, DC Over Alleged Antitrust Violations | ZeroHedge - 0 views

  • Google on Wednesday was hit by a lawsuit from a group of state attorneys over alleged violation of antitrust laws by its Android app store.
  • Attorneys general for 36 states and the District of Columbia sued the Big Tech company in a 144-page complaint filed in a Northern California federal court. The group alleges that Google’s Play store for Android apps violates antitrust laws.The complaint centers on the control Google is able to exert on its Play store, allowing it to collect commissions of up to 30 percent on digital transactions within apps installed on Android-powered smartphones. Those devices represent more than 80 percent of the worldwide smartphone market.Led by Utah, North Carolina, Tennessee, New York, Arizona, Colorado, Iowa, and Nebraska, it marks the fourth major antitrust lawsuit filed by U.S. government agencies against the company since October 2020.Other lawsuits filed against Google include a complaint filed by a bipartisan coalition of states, and one filed by the Department of Justice. It echoes allegations made against the company by mobile game maker Epic Games in August 2020. That case is awaiting trial.The complaint contends that Google has deployed various tactics and set up anticompetitive barriers to ensure it distributes more than 90 percent of the apps on Android devices—a market share that the attorneys general argue represents an illegal monopoly. It also alleges Google has been abusing that power to reap billions of dollars in profit at the expense of consumers, who wind up paying higher prices to subsidize the commissions, and the makers of apps who have less money and incentive to innovate.
Paul Merrell

Facebook's Marketplace Faces Antitrust Probes in EU, U.K. - WSJ - 1 views

  • The European Union and the U.K. opened formal antitrust investigations into Facebook Inc.’s FB -0.86% classified-ads service Marketplace, ramping up regulatory scrutiny for the company in Europe. Both the European Commission—the EU’s top antitrust enforcer—and the U.K.’s Competition and Markets Authority said Friday they are investigating whether Facebook repurposes data it gathers from advertisers who buy ads in order to give illegal advantages to its own services, including its Marketplace online flea market. The U.K. added that it is also investigating whether Facebook uses advertiser data to give similar advantages to its online-dating service. The two competition watchdogs said they would coordinate their investigations.
  • Separately on Friday, Germany’s competition regulator announced that it is opening an investigation into Google’s News Showcase, in which the tech company pays to license certain content from news publishers. That probe, which is based on new powers Germany had granted the regulator, will look among other things at whether Google is imposing unfair conditions on publishers and how it selects participants, the Federal Cartel Office said.
  • The three newly opened cases are part of a new wave of antitrust enforcement in Europe. The European Commission filed formal charges last month against Apple Inc. for allegedly abusing its control over the distribution of music-streaming apps, including Spotify Technology SA . In November, it filed formal charges against Amazon.com Inc. for allegedly using nonpublic data it gathers from third-party sellers to unfairly compete against them. Both companies denied wrongdoing. At the same time, the U.K.’s CMA has opened investigations into Google’s announcement that it will retire third-party cookies, a technology advertisers use to track web users, and whether Apple imposes anticompetitive conditions on some app developers, including the use of Apple’s in-app payment system, which is also the subject of a lawsuit in the U.S. In the EU, the European Commission has been investigating Facebook for more than a year on multiple fronts. Facebook and the Commission have squabbled over access to internal documents as part of those investigations.
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  • New York State Attorney General Letitia James outlined in December a sweeping antitrust suit against Facebook by the Federal Trade Commission and a bipartisan group of 46 state attorneys general, targeting the company’s tactics against competitors. Photo: Saul Loeb/AFP via Getty Images (Video from 12/9/20)
Paul Merrell

Facebook agrees to $650M settlement to end Illinois privacy lawsuit | AppleInsider - 0 views

  • A judge has approved a settlement valued at $650 million from Facebook to end a privacy lawsuit, one which alleged the social network used facial recognition technology on user photos stored on its iPhone app without permission. The lawsuit, which started in April 2015, alleged Facebook did not gain consent from users to use its facial tagging features on their photographs. Originally filed by Chicago attorney Jay Edelson on behalf of plaintiff Carlo Licata, the complaint claimed the consent-less tagging was not allowed under privacy laws in Illinois. The case originated in Cook County Circuit Court before moving to Chicago federal court then California, reports the Chicago Tribune. On reaching California, the lawsuit attained class-action status. The class in question constitutes approximately 6.9 million Facebook users in Illinois that Facebook created and stored a face template for after June 7, 2011. Close to 1.6 million claim forms were filed ahead of the November 23 deadline for joining, making up roughly 22% of potential class members. Facebook went against the Illinois Biometric Information Privacy Act, the complaint alleged, which is among the toughest privacy laws in the United States. Part of the act requires companies to gain permission from users before being able to start using biometric systems with their data, which includes facial recognition systems.
Paul Merrell

How Silicon Valley, in a Show of Monopolistic Force, Destroyed Parler - Glenn Greenwald - 1 views

  • As Silicon Valley censorship radically escalated over the past several months — banning pre-election reporting by The New York Post about the Biden family, denouncing and deleting multiple posts from the U.S. President and then terminating his access altogether, mass-removal of right-wing accounts — so many people migrated to Parler that it was catapulted to the number one spot on the list of most-downloaded apps on the Apple Play Store, the sole and exclusive means which iPhone users have to download apps. “Overall, the app was the 10th most downloaded social media app in 2020 with 8.1 million new installs,” reported TechCrunch.It looked as if Parler had proven critics of Silicon Valley monopolistic power wrong. Their success showed that it was possible after all to create a new social media platform to compete with Facebook, Instagram and Twitter. And they did so by doing exactly what Silicon Valley defenders long insisted should be done: if you don’t like the rules imposed by tech giants, go create your own platform with different rules.
  • But today, if you want to download, sign up for, or use Parler, you will be unable to do so. That is because three Silicon Valley monopolies — Amazon, Google and Apple — abruptly united to remove Parler from the internet, exactly at the moment when it became the most-downloaded app in the country. If one were looking for evidence to demonstrate that these tech behemoths are, in fact, monopolies that engage in anti-competitive behavior in violation of antitrust laws, and will obliterate any attempt to compete with them in the marketplace, it would be difficult to imagine anything more compelling than how they just used their unconstrained power to utterly destroy a rising competitor.
Paul Merrell

Google, Facebook made secret deal to divvy up market, Texas alleges - POLITICO - 1 views

  • Google and Facebook, the No. 1 and No. 2 players in online advertising, made a secret illegal pact in 2018 to divide up the market for ads on websites and apps, according to an antitrust suit filed Wednesday against the search giant. The suit — filed by Texas and eight other states — alleges that the companies colluded to fix prices and divvy up the market for mobile advertising between them.
  • The allegation that Google teamed up with Facebook to suppress competition mirrors a major claim in a separate antitrust suit the Justice Department filed against the company in October: that Google teamed up with Apple to help ensure the continued dominance of its search engine. Such allegations provide some of the strongest ammunition yet to advocates who argue that the U.S. major tech companies have gotten too big and are using their power — sometimes in conjunction with each other — to control markets.Many of the details about the Google-Facebook agreement, including its specific language, are redacted from the complaint. But the states say it “fixes prices and allocates markets between Google and Facebook as competing bidders in the auctions for publishers’ web display and in-app advertising inventory.”
  • The complaint alleges that the agreement was prompted by Facebook’s move in 2017 to use “header bidding” — a technology popular with website publishers that helped them increase the money they made from advertising. While Facebook sells ads on its own platform, it also operates a network to let advertisers offer ads on third-party apps and mobile websites.
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  • Google was concerned about the move to header bidding, the complaint alleges, because it posed an “existential threat” to its own advertising exchange and limited the ability of the search giant to use information from its ad-buying and selling tools to its advantage. Those tools let Google cherry pick the highest value advertising spots and ads, according to the complaint.Within months of Facebook’s announcement, Google approached it to open negotiations, the complaint alleged, and the two companies eventually cut a deal: Facebook would cut back on the use of header bidding and use Google’s ad server. In exchange, the complaint alleges that Google gave Facebook advantages in its auctions.
Paul Merrell

Canadians sue Facebook over use of personal info | Toronto.com - 1 views

  • Two Facebook users are seeking damages on behalf of hundreds of thousands of Canadians whose personal data may have been improperly used for political purposes. The proposed class-action lawsuit filed by Calgary residents Saul Benary and Karma Holoboff asks the Federal Court to order the social-media giant to bolster its security practices to better protect sensitive information and comply with federal privacy law. It also seeks $1,000 for each of the approximately 622,000 Canadians whose information was shared with others through a digital app.
Paul Merrell

ByteDance Caves To Trump, Agrees To Sell 100% Of TikTok To Microsoft | Zero Hedge - 0 views

  • hina’s ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to save a deal with the White House, after President Donald Trump said on Friday he had decided to ban the popular short-video app, two people familiar with the matter said on Saturday. ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House had rejected. Under the new proposed deal, ByteDance would exit completely and Microsoft Corp would take over TikTok in the United States, the sources said. Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added. The White House did not respond to a request for comment on whether Trump would accept ByteDance’s concession. ByteDance in Beijing did not respond to a request for comment. Under ByteDance’s new proposal, Microsoft will be in charge of protecting all U.S. user data, the sources said. The plan allows for another U.S. company other than Microsoft to take over TikTok in the United States, the sources added.
  • Bytedance has apparently gotten the "tap on the shoulder" from the CCP bigwigs who apparently aren't super thrilled about the optics of a mighty Chinese conglomerate kowtowing to the Trump Administration. Earlier today, it appeared that President Trump's late-night threat about banning TikTok had motivated ByteDance and Microsoft to speed up their talks. But as the New York afternoon wore on, a Dow Jones headline proclaimed that Microsoft and ByteDance had decided to abruptly stop negotiations.
Paul Merrell

Microsoft emerges as leading suitor for TikTok's U.S. business, as Trump plans to order its divestiture from Chinese parent | The Seattle Times - 0 views

  • Microsoft is the leading suitor to potentially take over short-form video app TikTok as the Trump administration considers sidelining its Chinese parent company, according to a person familiar with the talks, the latest sign of the administration’s increasingly strident stance on China and its tech companies.President Donald Trump is considering signing an order forcing China’s ByteDance to sell off the U.S. portion of TikTok over national security concerns, according to people familiar with the talks, who spoke on the condition of anonymity because they were not authorized to discuss it publicly. One of the individuals confirmed Microsoft was in the lead to acquire the popular platform’s U.S. service.While the order was originally expected to be signed Friday, it could still fall through, the people warned. The president was also considering other approaches, including designating TikTok under an executive order that allows the president to exclude national security threats from U.S. networks.
  • If Microsoft does acquire TikTok, it would make it a major rival to Facebook, Google’s YouTube and other tech giants overnight, dramatically reshaping the U.S. social media landscape.
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    It's the old "offer you can't refuse ploy." If the sale to Microsoft goes through, watch that company screw up Tik-tok.
Paul Merrell

Google's web app plans collide with Apple's iPhone, Safari rules - CNET - 0 views

  • Google and Apple, which already battle over mobile operating systems, are opening a new front in their fight. How that plays out may determine the future of the web. Google was born on the web, and its business reflects its origin. The company depends on the web for search and advertising revenue. So it isn't a surprise that Google sees the web as key to the future of software. Front and center are web apps, interactive websites with the same power as conventional apps that run natively on operating systems like Windows, Android, MacOS and iOS.  Apple has a different vision of the future, one that plays to its strengths. The company revolutionized mobile computing with its iPhone line. Its profits depend on those products and the millions of apps that run on them. Apple, unsurprisingly, appears less excited about developments, like web apps, that could cut into its earnings.
Paul Merrell

Is Apple an Illegal Monopoly? | OneZero - 0 views

  • That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.
  • Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.
  • But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.
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  • Whether Apple customers have a real choice in mobile platforms, once they’ve bought into the company’s ecosystem, is another question. In theory, they could trade in their pricey hardware for devices that run Android, which offers equivalents of many iOS features and apps. In reality, Apple has built its empire on customer lock-in: making its own gadgets and services work seamlessly with one another, but not with those of rival companies. Tasks as simple as texting your friends can become a migraine-inducing mess when you switch from iOS to Android. The more Apple products you buy, the more onerous it becomes to abandon ship.
  • The case against Apple goes beyond iOS. At a time when Apple is trying to reinvent itself as a services company to offset plateauing hardware sales — pushing subscriptions to Apple Music, Apple TV+, Apple News+, and Apple Arcade, as well as its own credit card — the antitrust concerns are growing more urgent. Once a theoretical debate, the question of whether its App Store constitutes an illegal monopoly is now being actively litigated on multiple fronts.
  • The company faces an antitrust lawsuit from consumers; a separate antitrust lawsuit from developers; a formal antitrust complaint from Spotify in the European Union; investigations by the Federal Trade Commission and the Department of Justice; and an inquiry by the antitrust subcommittee of the U.S House of Representatives. At stake are not only Apple’s profits, but the future of mobile software.Apple insists that it isn’t a monopoly, and that it strives to make the app store a fair and level playing field even as its own apps compete on that field. But in the face of unprecedented scrutiny, there are signs that the famously stubborn company may be feeling the pressure to prove it.
  • Tile is hardly alone in its grievances. Apple’s penchant for copying key features of third-party apps and integrating them into its operating system is so well-known among developers that it has a name: “Sherlocking.” It’s a reference to the time—in the early 2000s—when Apple kneecapped a popular third-party web-search interface for Mac OS X, called Watson. Apple built virtually all of Watson’s functionality into its own feature, called Sherlock.In a 2006 blog post, Watson’s developer, Karelia Software, recalled how Apple’s then-CEO Steve Jobs responded when they complained about the company’s 2002 power play. “Here’s how I see it,” Jobs said, according to Karelia founder Dan Wood’s loose paraphrase. “You know those handcars, the little machines that people stand on and pump to move along on the train tracks? That’s Karelia. Apple is the steam train that owns the tracks.”From an antitrust standpoint, the metaphor is almost too perfect. It was the monopoly power of railroads in the late 19th century — and their ability to make or break the businesses that used their tracks — that spurred the first U.S. antitrust regulations.There’s another Jobs quote that’s relevant here. Referencing Picasso’s famous saying, “Good artists copy, great artists steal,” Jobs said of Apple in 2006. “We have always been shameless about stealing great ideas.” Company executives later tried to finesse the quote’s semantics, but there’s no denying that much of iOS today is built on ideas that were not originally Apple’s.
Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has opened formal antitrust investigations to assess whether Apple's rules for app developers on the distribution of apps via the App Store violate EU competition rules. The investigations concern in particular the mandatory use of Apple's own proprietary in-app purchase system and restrictions on the ability of developers to inform iPhone and iPad users of alternative cheaper purchasing possibilities outside of apps. The investigations concern the application of these rules to all apps, which compete with Apple's own apps and services in the European Economic Area (EEA). The investigations follow-up on separate complaints by Spotify and by an e-book/audiobook distributor on the impact of the App Store rules on competition in music streaming and e-books/audiobooks.
  • iPhone and iPad users can only download native (non web-based) apps via the App Store. The Commission will investigate in particular two restrictions imposed by Apple in its agreements with companies that wish to distribute apps to users of Apple devices: (i)   The mandatory use of Apple's own proprietary in-app purchase system “IAP” for the distribution of paid digital content. Apple charges app developers a 30% commission on all subscription fees through IAP. (ii)  Restrictions on the ability of developers to inform users of alternative purchasing possibilities outside of apps. While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere (e.g. on the website of the app developer) also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper.
Paul Merrell

China No Longer Needs US Parts in its Phones - 1 views

  • The Wall Street Journal reports Huawei Manages to Make Smartphones Without American Chips. American tech companies are getting the go-ahead to resume business with Chinese smartphone giant Huawei Technologies Co., but it may be too late: It is now building smartphones without U.S. chips. Huawei’s latest phone, which it unveiled in September—the Mate 30 with a curved display and wide-angle cameras that competes with Apple Inc.’s iPhone 11—contained no U.S. parts, according to an analysis by UBS and Fomalhaut Techno Solutions, a Japanese technology lab that took the device apart to inspect its insides. In May, the Trump administration banned U.S. shipments to Huawei as trade tensions with Beijing escalated. That move stopped companies like Qualcomm Inc. and Intel Corp. from exporting chips to the company, though some shipments of parts resumed over the summer after companies determined they weren’t affected by the ban. Meanwhile, Huawei has made significant strides in shedding its dependence on parts from U.S. companies. (At issue are chips from U.S.-based companies, not those necessarily made in America; many U.S. chip companies make their semiconductors abroad.) Huawei long relied on suppliers like Qorvo Inc., the North Carolina maker of chips that are used to connect smartphones with cell towers, and Skyworks Solutions Inc., a Woburn, Mass.-based company that makes similar chips. It also used parts from Broadcom Inc., the San Jose-based maker of Bluetooth and Wi-Fi chips, and Cirrus Logic Inc., an Austin, Texas-based company that makes chips for producing sound.
Paul Merrell

Google Confirms Android Camera Security Threat: 'Hundreds Of Millions' Of Users Affected - 2 views

  • The security research team at Checkmarx has made something of a habit of uncovering alarming vulnerabilities, with past disclosures covering Amazon’s Alexa and Tinder. However, a  discovery of vulnerabilities affecting Google and Samsung smartphones, with the potential to impact hundreds of millions of Android users, is the biggest to date. What did the researchers discover? Oh, only a way for an attacker to take control of smartphone camera apps and remotely take photos, record video, spy on your conversations by recording them as you lift the phone to your ear, identify your location, and more. All of this performed silently, in the background, with the user none the wiser.
Paul Merrell

California's Attorney General joins the long list of people who have had it with Facebook * The Register - 0 views

  • California’s attorney general has gone to court to force Facebook to hand over documents as part of an investigation into the company. Xavier Becerra filed a “petition to enforce investigative subpoena” with the Superior Court of California in San Francisco on Wednesday morning, arguing that Facebook’s response to his subpoenas has been “patently inadequate.” Citing a “lack of cooperation” not just with his office but also the Federal Trade Commission (FTC), Xavier Becerra points out [PDF] that it took Facebook a year to respond to his initial inquiry to produce documents relating to the Cambridge Analytica scandal, where Facebook allowed a third party to access vast amounts of personal information through its systems.
  • Not only that but Facebook flat out refused to “search communications involving senior executives,” meaning that it refused to search for relevant information in the emails and other communications of CEO Mark Zuckerberg and COO Sheryl Sandberg, among others. “Facebook is not just continuing to drag its feet, it is failing to comply with lawfully issued subpoenas and interrogatories,” the filing states.
  • The filing comes the same day that 7,000 pages of internal Facebook files were published online. Those documents were obtained and leaked amid a lawsuit between Facebook and a third-party app developer and were labelled as “highly confidential” by the antisocial network. The main upshot of those files is that they show Facebook used the data it gathered on millions of its users as a business weapon: it provided people's profile information to companies that, for instance, agreed to spend hundreds of thousands of dollars on adverts within Facebook, and it cut off developers that posed a competitive threat to its ever-growing stable of companies and services (or developers that wouldn't pay up, or were just too sketchy for the internet giant.) This confirms earlier reporting. CEO Zuckerberg also continues to avoid visiting London, or anywhere in the UK, out of fear he will be arrested for repeatedly failing to comply with a request by Parliament to answer questions about Facebook’s actions, as revealed in the tranche of documents.
Paul Merrell

Time to 'Break Facebook Up,' Sanders Says After Leaked Docs Show Social Media Giant 'Treated User Data as a Bargaining Chip' | Common Dreams News - 0 views

  • After NBC News on Wednesday published a trove of leaked documents that show how Facebook "treated user data as a bargaining chip with external app developers," White House hopeful Sen. Bernie Sanders declared that it is time "to break Facebook up."
  • When British investigative journalist Duncan Campbell first shared the trove of documents with a handful of media outlets including NBC News in April, journalists Olivia Solon and Cyrus Farivar reported that "Facebook CEO Mark Zuckerberg oversaw plans to consolidate the social network's power and control competitors by treating its users' data as a bargaining chip, while publicly proclaiming to be protecting that data." With the publication Wednesday of nearly 7,000 pages of records—which include internal Facebook emails, web chats, notes, presentations, and spreadsheets—journalists and the public can now have a closer look at exactly how the company was using the vast amount of data it collects when it came to bargaining with third parties.
  • The document dump comes as Facebook and Zuckerberg are facing widespread criticism over the company's political advertising policy, which allows candidates for elected office to lie in the ads they pay to circulate on the platform. It also comes as 47 state attorneys general, led by Letitia James of New York, are investigating the social media giant for antitrust violations.
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  • According to Solon and Farivar of NBC: Taken together, they show how Zuckerberg, along with his board and management team, found ways to tap Facebook users' data—including information about friends, relationships, and photos—as leverage over the companies it partnered with. In some cases, Facebook would reward partners by giving them preferential access to certain types of user data while denying the same access to rival companies. For example, Facebook gave Amazon special access to user data because it was spending money on Facebook advertising. In another case the messaging app MessageMe was cut off from access to data because it had grown too popular and could compete with Facebook.
  • The call from Sanders (I-Vt.) Wednesday to break up Facebook follows similar but less definitive statements from the senator. One of Sanders' rivals in the 2020 Democratic presidential primary race, Sen. Elizabeth Warren (D-Mass.), released her plan to "Break Up Big Tech" in March. Zuckerberg is among the opponents of Warren's proposal, which also targets other major technology companies like Amazon and Google.
Paul Merrell

U.S., allies urge Facebook for backdoor to encryption as they fight child abuse - Reuters - 1 views

  • The United States, the United Kingdom and Australia have called on Facebook Inc to not go ahead with end-to-end encryption across its messaging services unless law enforcement officials have backdoor access, saying encryption hindered the fight against child abuse and terrorism.
  • The United States and United Kingdom also signed a special data agreement that would fast track requests from law enforcement to technology companies for information about the communications of terrorists and child predators. Law enforcement could get information in weeks or even days instead of the current wait of six months to two years. The latest tug-of-war between governments and tech companies over user data could also impact Apple Inc, Alphabet Inc’s Google and Microsoft Corp, as well as smaller encrypted chat apps like Signal.
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