Business Insider reports: Facebook executives knew for years its "potential reach" advertising metric was inflated and overruled an employee warning to adjust it to avoid a revenue hit, plaintiffs of a lawsuit against the social media giant argued in an unredacted court filing.
Gizmodo writes: In a nutshell, this class action suit, which was first filed back in 2018, alleges that Facebook massaged figures for "Potential Reach" — an estimate that Facebook gives its advertisers for the number of people that might see their ad — to goad advertisers into spending more money on the platform, all in the hopes of reaching the people that Facebook had promised. These filings detail that some of Facebook's top brass, including Chief Operating Officer Sheryl Sandberg, were fully aware that the company spent years exaggerating the number of eyeballs its advertisers could reach...

Thanks to these unsealed filings, we know just how inflated some of those figures were. Here's an example: in 2018, Facebook told its advertisers that it had a Potential Reach of 230 million adults across the U.S., out of the 250 million adults that were counted by U.S. census data that year. But according to a 2018 Pew Research study, only about 68% (or 170 million adults) actually use the platform at all. Sandberg acknowledged in an internal email that "she'd known about problems with Potential Reach for years." But she repeatedly shot down employee's attempts to rectify those figures, according to the filing.

Internally, employees acknowledged that while the product bills itself as an estimate for how many "people" your ad might reach, it is, at best, an estimate for the number of accounts — including the untold numbers of fakes and duplicates. Some employees even ran the numbers in 2018, just to see what would happen if known duplicate accounts were cut out of Potential Reach, and saw a 10% drop in the numbers advertisers were given. Facebook chose not to cut them...

The suit points out that numbers Facebook continues to give its advertisers make even less sense, like telling them it can reach "100 million" 18-to-34 year old's across the country. Census data shows there's in fact only 76 million of them — and we know not all of them use Facebook.

Top lobbying groups backed by Amazon, Facebook, Google and other technology giants sued Maryland on Thursday, seeking to scuttle a new state tax on their massive online-advertising revenue -- and stop other local governments from following its lead. From a report: The legal challenge contends that Maryland's first-in-the-nation tax is unfair, unconstitutional and incompatible with federal laws that prohibit state policymakers from instituting levies specifically targeting online services. The lawsuit is backed by a broad coalition of businesses nationwide through a series of trade groups, including the U.S. Chamber of Commerce and the Internet Association, a Washington-based organization that counts Silicon Valley's most prominent companies among its members. It carries great legal and political significance at a time when lawmakers well beyond Maryland's borders are starting to eye the tech industry's eye-popping pandemic profits as a potential source of much-needed new revenue.

"In light of the current pandemic and economic uncertainty, increasing taxes on services used by small businesses to keep themselves running is a particularly poor and ill-timed policy," Caroline Harris, the vice president for tax policy at the U.S. Chamber, said in a statement. In the complaint, which was filed in U.S. District Court in Maryland, the tech giants and their political allies argue that the state's online advertising tax suffers from "many infirmities" and, as a result, threatens to "raise costs for consumers and make it more difficult for businesses to connect with potential customers."

schwit1 writes: With a pair of votes, Maryland can now claim to be a pioneer: it's the first place in the country that will impose a tax on the sale of online ads. The House of Delegates and Senate both voted this week to override Gov. Larry Hogan's veto of a bill passed last year to levy a tax on online ads. The tax will apply to the revenue companies like Facebook and Google make from selling digital ads, and will range from 2.5% to 10% per ad, depending on the value of the company selling the ad. (The tax would only apply to companies making more than $100 million a year.)

Proponents say the new tax is simply a reflection of where the economy has gone, and an attempt to have Maryland's tax code catch up to it. The tax is expected to draw in an estimated $250 million a year to help fund an ambitious decade-long overhaul of public education in the state that's expected to cost $4 billion a year in new spending by 2030. (Hogan also vetoed that bill, and the Democrat-led General Assembly also overrode him this week.) Still, there remains the possibility of lawsuits to stop the tax from taking effect; Maryland Attorney General Brian Frosh warned last year that "there is some risk" that a court could strike down some provisions of the bill over constitutional concerns.

Facebook said Wednesday that it would no longer allow Australian publishers to share news on Facebook or allow Australian people to view or share international news sources. From a report: The change comes as Australia prepares to pass a law that would require companies like Facebook and Google to pay news publishers to carry their stories. "The proposed law fundamentally misunderstands the relationship between our platform and publishers who use it to share news content. It has left us facing a stark choice: attempt to comply with a law that ignores the realities of this relationship, or stop allowing news content on our services in Australia," Facebook's managing director of Australia and New Zealand, William Easton, wrote in a blog post. "With a heavy heart, we are choosing the latter." Before Facebook's announcement Wednesday, Google and News Corp struck a deal through which Google will pay the company -- which owns The Wall Street Journal, Barron's, MarketWatch and The New York Post -- to feature their stories in Google News Showcase. Facebook addressed the companies' divergent responses in the blog post. "Our platforms have fundamentally different relationships with news. Google Search is inextricably intertwined with news and publishers do not voluntarily provide their content," Easton wrote. "On the other hand, publishers willingly choose to post news on Facebook, as it allows them to sell more subscriptions, grow their audiences and increase advertising revenue." Easton went on to describe the "business gains" of news on Facebook as "minimal," writing that it accounts for 4% of all content on the platform.

"Microsoft has said the USA should copy Australia's plan to force Google and Facebook to pay for links to news content," reports The Register, "and suggested that doing so will help improve social cohesion and strengthen democracy." But Google has fired back with a statement asserting that Microsoft's motives are impure. "Of course they'd be eager to impose an unworkable levy on a rival and increase their market share," wrote Kent Walker, Google's chief legal officer.

Microsoft's suggestion to the Biden administration came from company president Brad Smith arrived in a Thursday blog post that opens: "As the dust slowly settles on a horrifying assault on the Capitol, it's apparent that American democracy is in a fragile state." Smith attributed much of that fragility to disinformation spreading on social media and "the erosion of more traditional, independent and professional journalism... The internet eroded the news business as dotcoms like Craigslist disrupted advertising revenue, news aggregators lured away readers, and search engines and social media giants devoured both," Smith wrote...

Smith also points out that Microsoft's decision to support Australia's plan and pay local news outlets quickly saw Google CEO Sundar Pichai call Australian prime minister Scott Morrison, then asserts that Pichai only did so once the prospect of increased competition roused him to action.

"At the end of the day, what is wrong with compensating independent news organizations for the benefits the tech gatekeepers derive from this content?" Smith asks.

Facebook is being sued for "losing control" of the data of about a million users in England and Wales. From a report: The alleged failings were revealed in the Cambridge Analytica scandal, where harvested data was used for advertising during elections. Journalist Peter Jukes, leading the action, claims his data was compromised. Facebook told BBC News there was "no evidence" UK or EU users' data had been transferred to Cambridge Analytica. But the case against the technology giant, expected to last for at least three years, will argue a "loss of control" over users' personal data warrants individual compensation. The harvesting of Facebook users' personal information by third-party apps was at the centre of the Cambridge Analytica privacy scandal, exposed in 2018. Cambridge Analytica's app on Facebook had harvested the data of people who interacted with it -- and that of friends who had not given consent.

An anonymous reader quotes a report from Ars Technica: A benign barcode scanner with more than 10 million downloads from Google Play has been caught receiving an upgrade that turned it to the dark side, prompting the search-and-advertising giant to remove it. Barcode Scanner, one of dozens of such apps available in the official Google app repository, began its life as a legitimate offering. Then in late December, researchers with security firm Malwarebytes began receiving messages from customers complaining that ads were opening out of nowhere on their default browser.

[Malwarebytes mobile malware researcher Nathan Collier] wrote: "No, in the case of Barcode Scanner, malicious code had been added that was not in previous versions of the app. Furthermore, the added code used heavy obfuscation to avoid detection. To verify this is from the same app developer, we confirmed it had been signed by the same digital certificate as previous clean versions. Because of its malign intent, we jumped past our original detection category of Adware straight to Trojan, with the detection of Android/Trojan.HiddenAds.AdQR." Google removed the app after Collier privately notified the company. So far, however, Google has yet to use its Google Play Protect tool to remove the app from devices that had it installed. That means users will have to remove the app themselves.

Europe's antitrust chief, Margrethe Vestager, has warned Apple to give equal treatment to all apps on its platform amid the iPhone maker's privacy changes that have drawn charges of anti-competitive practices from rival Facebook. From a report: Apple will in the spring ask iPhone users for consent to track their data for personalized ads in what it says is a move to protect users' privacy but which will limit apps' ability to gather data from people's phones that can be used for targeted advertising. Facebook has been among the most vocal of the critics which stand to lose a substantial part of their revenue from Apple's move. Facebook in a December blog post called it anti-competitive behaviour, saying that Apple's own personalized ad platform would be exempt from the new requirement giving users a choice of whether to opt in to tracking by third parties. Vestager said while the issue is privacy-related, it can morph into an antitrust issue if Apple tilts the level playing field. "It can be competition if it is shown that Apple is not treating its own apps in the same way," she told Reuters in an interview on Monday.

Over the past several weeks, developer Kosta Eleftheriou has been highlighting many apparent scam applications on the App Store. The formula for each scam application is virtually identical, and it centers on fake reviews and ratings paired with a deceptive weekly subscription. From a report: Eleftheriou is the developer behind FlickType, a popular Apple Watch keyboard application that brings gesture typing to the wearable device. He was also one of the creators of the Flesky keyboard app, acquired by Pinterest, and Blind Type, acquired by Google. The thread began two weeks ago, when Eleftheriou began highlighting applications that were essentially non-functional ripoffs of FlickType. One of the most blatant ones was KeyWatch: "Just a few months ago, I was way ahead of my competition. By the time they figured out just how hard autocorrect algorithms were, I was already rolling out the swipe version of my keyboard, quickly approaching iPhone typing speeds. So how did they beat me? First, they made an app that appeared to fulfill the promise of a watch keyboard -- but was practically unusable. Then, they started heavily advertising on FB & Instagram, using my own promo video, of my own app, with my actual name on it."

When users downloaded the app, the first screen was a blank interface with an "Unlock now" button. Tap the "Unlock now" button, and you'd be prompted with Apple's buy screen to confirm an $8/week subscription for an app that was nonfunctional.

Facebook said on Monday that it plans to remove posts with erroneous claims about vaccines from across its platform, including taking down assertions that vaccines cause autism or that it is safer for people to contract Covid-19 than to receive the vaccinations. From a report: The social network has increasingly changed its content policies over the past year as the coronavirus has surged. In October, the social network prohibited people and companies from purchasing advertising that included false or misleading information about vaccines. In December, Facebook said it would remove posts with claims that had been debunked by the World Health Organization or government agencies. Monday's move goes further by targeting unpaid posts to the site and particularly Facebook pages and groups. Instead of targeting only misinformation around Covid vaccines, the update encompasses false claims around all vaccines. Facebook said it consulted with the World Health Organization and other leading health institutes to determine a list of false or misleading claims around Covid and vaccines in general. In the past, Facebook had said it would only "downrank," or push lower down in people's News Feeds, misleading or false claims about vaccines, making it more difficult to find such groups or posts. Now posts, pages and groups containing such falsehoods will be removed from the platform entirely. "Building trust and confidence in these vaccines is critical, so we're launching the largest worldwide campaign to help public health organizations share accurate information about Covid-19 vaccines and encourage people to get vaccinated as vaccines become available to them," Kang-Xing Jin, head of health at Facebook, said in a company blog post.

Twitter is building a subscription product as a way to ease its dependence on advertising -- a plan the social network has considered for years, and one that has taken on a heightened priority given the pandemic and pressure from activist investors to accelerate growth. From a report: The majority of Twitter's revenue comes from targeted advertising, which serves up promoted posts aimed at specific groups of users. That business has grown in recent years at a slower pace than competitors like Facebook and Snap, and Twitter's slice of the digital ad market globally remains at at a lackluster 0.8%, according to EMarketer. To explore potential options outside ad sales, a number of Twitter teams are researching subscription offerings, including one using the code name "Rogue One," according to people familiar with the effort. At least one idea being considered is related to "tipping," or the ability for users to pay the people they follow for exclusive content, said the people, who asked not to be named because the discussions are internal. Other possible ways to generate recurring revenue include charging for the use of services like Tweetdeck or advanced user features like "undo send" or profile-customization options.

Subscriptions have always offered a tantalizing alternative to advertising, but social networks have traditionally stayed free as a way to encourage user growth and engagement, which is then subsidized with paid marketing posts. Still, Twitter Chief Financial Officer Ned Segal said on a call with investors last year that a subscription option of some kind would offer sales "durability," and recurring revenue is more consistent than advertising spending. Segal cautioned in July that Twitter was not only "very, very early" in exploring a subscription service, but also planned to be picky about how it goes forward. "We have a really high bar for when we would ask consumers to pay for aspects of Twitter," he said.

In 2019 two New York Times opinion writers obtained cellphone app data "containing the precise locations of more than 12 million individual smartphones for several months in 2016 and 2017." (It's data that they say is "supposed to be anonymous, but it isn't. We found celebrities, Pentagon officials and average Americans.")

Now they've obtained a remarkable new trove of data, "this time following the smartphones of thousands of Trump supporters, rioters and passers-by in Washington, D.C., on January 6, as Donald Trump's political rally turned into a violent insurrection."

And here the stakes for a privacy violation were even higher: [The data set] shows how Trump supporters traveled from South Carolina, Florida, Ohio and Kentucky to the nation's capital, with pings tracing neatly along major highways, in the days before the attack. Stops at gas stations, restaurants and motels dot the route like bread crumbs, each offering corroborating details. In many cases, these trails lead from the Capitol right back to their homes... Unlike the data we reviewed in 2019, this new data included a remarkable piece of information: a unique ID for each user that is tied to a smartphone. This made it even easier to find people, since the supposedly anonymous ID could be matched with other databases containing the same ID, allowing us to add real names, addresses, phone numbers, email addresses and other information about smartphone owners in seconds.

The IDs, called mobile advertising identifiers, allow companies to track people across the internet and on apps. They are supposed to be anonymous, and smartphone owners can reset them or disable them entirely. Our findings show the promise of anonymity is a farce. Several companies offer tools to allow anyone with data to match the IDs with other databases. We were quickly able to match more than 2,000 supposedly anonymous devices in the data set with email addresses, birthdays, ethnicities, ages and more...

Smartphone users will never know if they are included in the data or whether their precise movements were sold. There are no laws forcing companies to disclose what the data is used for or for how long. There are no legal requirements to ever delete the data. Even if anyone could figure out where records of their locations were sold, in most states, you can't request that the data be deleted. Their movements could be bought and sold to innumerable parties for years. And the threat that those movements could be tied back to their identity will never go away.

If the January 6 rioters didn't know before, they surely know now the cost of leaving a digital footprint...
The article argues that de-anonymizing the data "gets easier by the day," warning this latest data set demonstrates "the looming threat to our liberties posed by a surveillance economy that monetizes the movements of the righteous and the wicked alike."

But it also warns that "The location-tracking industry exists because those in power allow it to exist... The dark truth is that, despite genuine concern from those paying attention, there's little appetite to meaningfully dismantle this advertising infrastructure that undergirds unchecked corporate data collection.

"This collection will only grow more sophisticated."

A man who has been an AT&T customer since 1960 has a message for CEO John Stankey about the company's failure to upgrade DSL areas to modern Internet service. Aaron Epstein, 90, is so frustrated by his 3Mbps Internet plan that he took out a Wall Street Journal ad in today's print edition in order to post an open letter to Stankey. From a report: "Dear Mr. Stankey: AT&T prides itself as a leader in electronic communications. Unfortunately, for the people who live in N. Hollywood, CA 91607, AT&T is now a major disappointment," Epstein wrote in the letter. Epstein paid $1,100 to run the ad for one day in the Manhattan and Dallas editions of today's Journal, he told Ars in a phone interview. He chose the Manhattan edition to reach investors who might want to pressure AT&T into upgrading its network and Dallas because that's where AT&T is headquartered, he said. "We need to keep up with current technology and have looked to AT&T to supply us with fast Internet service," Epstein wrote in the open letter to AT&T's CEO. "Yet, although AT&T is advertising speeds up to 100Mbps for other neighborhoods, the fastest now available to us from AT&T is only 3Mbps. Your competitors now have speeds of over 200Mbps. Why is AT&T, a leading communications company, treating us so shabbily in North Hollywood?"

Google's cloud business reported operating loss of $5.61 billion in 2020. It brought in $13.06 billion in revenue for the year. It's the first time the company revealed the operating income metric for its cloud business. CNBC reports: Alphabet's latest push to show it's serious about its cloud unit comes as it tries to diversify revenue, which primarily comes from advertising, a business that showed vulnerability in 2020 -- particularly in the second quarter. Google Cloud includes infrastructure and data analytics platforms, collaboration tools, and "other services for enterprise customers."

The company's past attempts to bolster its cloud unit under CEO Diane Greene, who left in 2018, failed to capture much market share. But, since former Oracle executive Thomas Kurian came to Google to lead its cloud efforts in 2019, the company has gone on hiring and acquisition sprees.

An anonymous reader quotes a report from Bloomberg: In China's popular online-streaming industry, virtual gift-giving is big. You can send your favorite live performer anything from a rose for 5 yuan (80 cents) to a space rocket for 500 yuan. The present is just a symbol, but the money is real -- and that's what's made Kuaishou Technology so successful. [...] Co-founders Su Hua and Cheng Yixiao will each be worth more than $5.5 billion, according to the Bloomberg Billionaires Index.

Su, a native of China's central Hunan province, studied computer programming at the prestigious Tsinghua University before joining Google in Beijing in 2006. There, he earned about $23,000 annually, eight times the country's average salary back then. While he said he was "extremely happy," a stay in Silicon Valley inspired him to start his own business, according to Kuaishou's biography. The 38-year-old quit Google during the global financial crisis to start his own video-advertising venture, which didn't come to fruition. After a short stint with Baidu Inc., he got acquainted with Cheng in 2011 and they soon decided to pair up. In 2013, the duo transformed the Kuaishou app from a GIF-maker to the social-video platform it is today, initially gaining popularity with its videos of life in rural China.

With the rise of ByteDance's Douyin, the Chinese twin app of TikTok, Kuaishou broadened its appeal, luring influencers backed by talent agencies and pop stars like Taiwan's Jay Chou. Along the way, it sped up monetization by creating ad slots and in-app stores for brands and merchants. While virtual gift purchases are still its bread and butter -- they make up almost two-thirds of its revenue -- the company is delving deeper into higher-margin businesses like e-commerce and online gaming. Its sales rose almost 50% to 40.7 billion yuan in the first nine months of last year, according to the IPO prospectus.

"A malicious Home Depot advertising campaign is redirecting Google search visitors to tech support scams," claims Bleeping Computer.

Slashdot reader nickwinlund77 shares their report: BleepingComputer searched for 'home depot' and was shown the malicious advertisement on our first try. Even worse, the ad is the top spot in the research result, making it more likely to be clicked... [T]he ad clearly states it's for www.homedepot.com, and hovering over it shows the site's legitimate destination URL.

However, when visitors click on the ad, they will be redirected through various ad services until eventually they are redirected to a tech support scam. Ultimately, the visitor will land at a page showing an incredibly annoying "Windows Defender - Security Warning' tech support scam. This scam will repeatedly open the Print dialog box, as shown below, which prevents the visitor from easily closing the page.

To make it more difficult for security professionals to diagnose these ads, it appears that they only redirect to the scam once every 24 hours to the same IP address. Once a tech support scam is shown by clicking on the ad, subsequent clicks bring visitors to the legitimate site.

"Researchers from the fields of print media technology, chemistry, physics, acoustics, electrical engineering, and economics from six nations developed a continuous, highly productive, and reliable roll production of loudspeaker webs," reports project manager Georg C. Schmidt. [For those unfamiliar with roll-to-roll processing, it is the process of creating electronic devices on a roll of flexible plastic or metal foil, which, among other things, reduces manufacturing cost.]

This is an improvement upon the 2015 T-Book -- a large-format illustrated book equipped with printed electronics that outputs sound through a speaker invisibly located inside the sheet of paper. "The T-Book was and is a milestone in the development of printed electronics, but development is continuing all the time," says Prof. Dr. Arved C. Hubler, under whose leadership this technology trend has been driven forward for more than 20 years. Phys.Org reports: Not only did they use the roll-to-roll (R2R) printing process for this, but they also developed inline technologies for other process steps, such as the lamination of functional layers. "This allows electronics to be embedded in the paper -- invisibly and protected," says Hubler. In addition, he says, inline polarization of piezoelectric polymer layers has been achieved for the first time and complete inline process monitoring of the printed functional layers is possible. The final project results were published in the renowned journal Advanced Materials.

The potential of loudspeaker paper was extended to other areas of application in the T-Paper project. For example, meter-long loudspeaker installations can now be manufactured in web form or as a circle (T-RING). "In our T-RING prototype, an almost four-meter-long track with 56 individual loudspeakers was connected to form seven segments and shaped into a circle, making a 360-degree surround sound installation possible," says Schmidt. The speaker track, including printed circuitry, weighs just 150 grams and consists of 90 percent conventional paper that can be printed in color on both sides. "This means that low-cost infotainment solutions are now possible in museums, at trade shows and in the advertising industry, for example. In public buildings, for example, very homogeneous sound reinforcement of long stretches such as corridors is possible. But the process technology itself could also become interesting for other areas, such as the production of inline measurement systems for Industry 4.0," says the project manager, looking to the future.

Apple Chief Executive Officer Tim Cook on Thursday criticized polarization and misinformation on social media, intensifying a conflict between the iPhone maker and Facebook. From a report: In remarks delivered at the Computers, Privacy and Data Protection conference, Cook critiqued apps that he argued collect too much personal information and prioritize "conspiracy theories and violent incitement simply because of their high rates of engagement." "At a moment of rampant disinformation and conspiracy theories juiced by algorithms, we can no longer turn a blind eye to a theory of technology that says all engagement is good engagement -- the longer the better -- and all with the goal of collecting as much data as possible," Cook said.

He did not name Facebook, but the two companies have been in a high-profile dispute. Apple is preparing to implement privacy notifications that many in the digital advertising industry believe will cause some users to decline to allow the use of ad-targeting tools. Facebook has accused Apple of anticompetitive conduct because Apple has a growing catalog of paid apps and its own digital advertising business. Facebook Chief Executive Mark Zuckerberg on Wednesday said Apple has "every incentive to use their dominant platform position to interfere with how our apps and other apps work." Cook on Thursday criticized social media practices that he said undermine public trust in vaccines and encourage users to join extremist groups.

Apple has prioritized user privacy over targeted advertising, and Google is spelling out today what that means for itself as well as game and app developers. From a report: Apple is advocating its App Tracking Transparency (ATT) policy, which will require developers to ask for permission when they use personal data from other companies' apps and websites for advertising purposes, even if they already have user consent. It will ask users to opt-in if they will allow advertisers to use their data via the Identifier for Advertisers, or IDFA. Many tests show that many users won't allow it, and that means they won't be so easily tracked for advertising purposes. This change could have a huge impact on the mobile advertising ecosystem, as it could make it harder to target users efficiently with advertising.

Eric Seufert, a user acquisition expert, said on Monday that he believes that Facebook could suffer a 7% revenue hit -- a loss of tens of billions of dollars over time -- as a result of the IDFA changes, and it's no secret that Facebook isn't happy about the impact on itself as well as small businesses. At our Driving Game Growth event on Tuesday, Facebook leaders pointed to the IDFA changes as creating uncertainty for mobile games in 2021. Google, which could also be impacted by the policy change, has stayed out of the fray -- until today. "Today we're sharing how Google is helping our community prepare, as we know that developers and advertisers in the iOS ecosystem are still figuring out how to adapt," said Christophe Combette, group product manager for Google Ads in a blog post.

Twitter acquired the newsletter publishing company Revue for an undisclosed sum, part of an effort to expand its business and give writers who distribute their work on Twitter more features. From a report: Revue's service, which lets people manage newsletter publishing and subscriptions, will continue operating as a "standalone service" within Twitter, the company said Tuesday in a blog announcing the deal. Twitter will eliminate some of the service's fees to encourage more people to create newsletters, and will take a 5% cut on subscription revenue collected through Revue.

Part of Revue's appeal to Twitter is that it could help expand the business outside of advertising, which generates more than 85% of Twitter's annual revenue, and give some of the site's more popular users a way to make money from their followers. "You can expect audience-based monetization to be an area that we'll continue to develop new ways to support," Twitter executives wrote in the blog. Twitter has also confirmed that it's considering options for its own subscription service.