Facebook

46 States Ask Appeals Court To Reinstate Facebook Lawsuit (reuters.com) 13

A big group of U.S. states, led by New York, has argued to an appeals court that it should reinstate an antitrust lawsuit against Meta's Facebook because of ongoing harm from the company's actions and because the states had not waited too long to file their complaint. From a report: Barbara Underwood, solicitor general of New York which led the group that consists of 46 states, Guam and District of Columbia, said that it was wrong to treat states like a class action and put a limit on when they can sue. States not involved are Alabama, Georgia, South Carolina and South Dakota. She said the states' action was more akin to law enforcement so "laches," which forbids an unreasonable delay in filing, would not apply. She said that Facebook's actions harmed the economy and the marketplace. The states are asking the three-judge panel on U.S. Court of Appeals for the District of Columbia to reinstate a lawsuit filed in 2020, the same time that the U.S. Federal Trade Commission sued the company. Both the FTC and the states had asked the court to order Facebook to sell Instagram, which it bought for $1 billion in 2012, and WhatsApp, which it bought for $19 billion in 2014. The FTC fight with Facebook is going forward.
Medicine

Tech Workers Paying To Get Taller (gq.com) 330

joshuark writes: A Las Vegas surgeon reports tech workers are paying $70,000 to $150,000 to get surgery to increase their height by 3-inches. The doctor is paid to break their legs (both femurs) and then inserts adjustable metal nails that are slowly tweaked over time. "I joke that I could open a tech company," Dr. Kevin Debiparshad told GQ. "I got, like, 20 software engineers doing this procedure right now who are here in Vegas. There was a girl" -- because girls can be tech bros too. -- "yesterday from PayPal. I've got patients from Google, Amazon, Facebook, Microsoft. I've had multiple patients from Microsoft."

A new twist, borrow $70K to $150K from a loan shark in Las Vegas, and they'll break your legs later...
"Since the onset of the pandemic's work-from-home era, the LimbplastX Institute (where Dr. D performs his procedures) has been seeing twice its normal number of patients, and sometimes as many as 50 new people a month," reports GQ. "That claim is backed up by a BBC report suggesting that hundreds of men in the U.S. are now undergoing the procedure every year."

"According to a 2009 study of Australian men, short guys make less money than their taller peers (about $500 a year per inch); are less likely to climb the corporate ladder (according to one survey, the average height of a male Fortune 500 CEO is six feet); and, for the cis and straight among us, have fewer romantic opportunities with women (a 2013 study conducted in the Netherlands found that women were taller than their male partners in just 7.5 percent of cases)," adds the report. "The promise of Dr. D's institute is that, for a price, you too can increase your odds of becoming a Fortune 500 CEO. And people are willing to pay..."
Facebook

Mark Zuckerberg's $71 Billion Wealth Wipeout Puts Focus On Meta's Woes (bloomberg.com) 83

An anonymous reader quotes a report from Bloomberg: Mark Zuckerberg's pivot into the metaverse has cost him dearly in the real world. Even in a rough year for just about every US tech titan, the wealth erased from the chief executive officer of Meta stands out. His fortune has been cut in half and then some, dropping by $71 billion so far this year, the most among the ultra-rich tracked by the Bloomberg Billionaires Index. At $55.9 billion, his net worth ranks 20th among global billionaires, his lowest spot since 2014 and behind three Waltons and two members of the Koch family.

It was less than two years ago when Zuckerberg, 38, was worth $106 billion and among an elite group of global billionaires, with only Jeff Bezos and Bill Gates commanding bigger fortunes. His wealth swelled to a peak of $142 billion in September 2021, when the company's shares reached as high as $382. The following month, Zuckerberg introduced Meta and changed the company's name from Facebook And it's been largely downhill from there as it struggles to find its footing in the tech universe.

Its recent earnings reports have been dismal. It started in February, when the company revealed no growth in monthly Facebook users, triggering a historic collapse in its stock price and slashing Zuckerberg's fortune by $31 billion, among the biggest one-day declines in wealth ever. Other issues include Instagram's bet on Reels -- its answer to TikTok's short-form video platform -- even though it's worth less in advertising revenue, while the industry overall has been affected by lower marketing spending due to concerns over an economic slowdown. The stock is also being dragged down by the company's investments in the metaverse, said Laura Martin, senior internet analyst at Needham & Co. Zuckerberg has said he expects the project will lose "significant" amounts of money in the next three to five years. In the meantime, Meta "has to get these users back from TikTok," said Martin. It's also hampered by "excessive regulatory scrutiny and intervention," she said.
Meta is "down about 57% this year, far more than the declines of 14% for Apple, 26% for Amazon and 29% for Google parent Alphabet," adds Bloomberg. "Meta is even narrowing the gap in 2022 losses with Netflix, which is down about 60%."
Privacy

Clearview AI, Used by Police To Find Criminals, Now in Public Defenders' Hands (nytimes.com) 61

After a Florida man was accused of vehicular homicide, his lawyer used Clearview AI's facial recognition software to prove his innocence. But other defense lawyers say Clearview's offer rings hollow. From a report: It was the scariest night of Andrew Grantt Conlyn's life. He sat in the passenger seat of a two-door 1997 Ford Mustang, clutching his seatbelt, as his friend drove approximately 100 miles per hour down a palm tree-lined avenue in Fort Myers, Fla. His friend, inebriated and distraught, occasionally swerved onto the wrong side of the road to pass cars that were complying with the 35 mile-an-hour speed limit. "Someone is going to die tonight," Mr. Conlyn thought. And then his friend hit a curb and lost control of the car. The Mustang began spinning wildly, hitting a light pole and three palm trees before coming to a stop, the passenger's side against a tree. At some point, Mr. Conlyn blacked out. When he came to, his friend was gone, the car was on fire and his seatbelt buckle was jammed. Luckily, a good Samaritan intervened, prying open the driver's side door and pulling Mr. Conlyn out of the burning vehicle.

Mr. Conlyn didn't learn his savior's name that Wednesday night in March 2017, nor did the police, who came to the scene and found the body of his friend, Colton Hassut, in the bushes near the crash; he'd been ejected from the car and had died. In the years that followed, the inability to track down that good Samaritan derailed Mr. Conlyn's life. If Clearview AI, which is based in New York, hadn't granted his lawyer special access to a facial recognition database of 20 billion faces, Mr. Conlyn might have spent up to 15 years in prison because the police believed he had been the one driving the car. For the last few years, Clearview AI's tool has been largely restricted to law enforcement, but the company now plans to offer access to public defenders. Hoan Ton-That, the chief executive, said this would help "balance the scales of justice," but critics of the company are skeptical given the legal and ethical concerns that swirl around Clearview AI's groundbreaking technology. The company scraped billions of faces from social media sites, such as Facebook, LinkedIn and Instagram, and other parts of the web in order to build an app that seeks to unearth every public photo of a person that exists online.

United States

Pentagon Opens Sweeping Review of Clandestine Psychological Operations (washingtonpost.com) 29

The Pentagon has ordered a sweeping audit of how it conducts clandestine information warfare after major social media companies identified and took offline fake accounts suspected of being run by the U.S. military in violation of the platforms' rules. From a report: Colin Kahl, the undersecretary of defense for policy, last week instructed the military commands that engage in psychological operations online to provide a full accounting of their activities by next month after the White House and some federal agencies expressed mounting concerns over the Defense Department's attempted manipulation of audiences overseas, according to several defense and administration officials familiar with the matter.

The takedowns in recent years by Twitter and Facebook of more than 150 bogus personas and media sites created in the United States was disclosed last month by internet researchers Graphika and the Stanford Internet Observatory. While the researchers did not attribute the sham accounts to the U.S. military, two officials familiar with the matter said that U.S. Central Command is among those whose activities are facing scrutiny. Like others interviewed for this report, they spoke on the condition of anonymity to discuss sensitive military operations. The researchers did not specify when the takedowns occurred, but those familiar with the matter said they were within the past two or three years. Some were recent, they said, and involved posts from the summer that advanced anti-Russia narratives citing the Kremlin's "imperialist" war in Ukraine and warning of the conflict's direct impact on Central Asian countries. Significantly, they found that the pretend personas -- employing tactics used by countries such as Russia and China -- did not gain much traction, and that overt accounts actually attracted more followers.

Transportation

'It Felt Like Star Wars': Flying Hoverbike Makes Its US Debut (kansascity.com) 117

"Whirring as it powered up, a hoverbike lifted directly into the air in Michigan, video shows."

That's the lead from one news report about a big debut at a U.S. auto show in Detroit: a gasoline-and-electric powered hoverbike (using a Kawasaki motor) created by Japanese manufacturing company AERWINS Technologies. They've already started selling them in Japan, and they're now also hoping to sell a smaller version in America in 2023. The hoverbike flies for 40 minutes, Reuters reports, and can reach speeds of up to 62 miles per hour (100 kph). (They added that the bike drew "perhaps inevitable comparisons to the speeder bikes of Star Wars.")

From McClatchy news services: Video from WXYZ's Facebook shows the hoverbike's flight. The test rider checks the vehicle then signals with a fist pump. The engines power up, whirring louder and louder until the bike lifts off. The hoverbike flies back and forth, slightly faster as the ride goes on, then lands smoothly to the ground, video shows. "I feel like I'm literally 15 years old and I just got out of Star Wars," the test rider told Reuters. "It's awesome! Of course, you have a little apprehension, but I was just so amped. I literally had goosebumps and feel like a little kid...."

The price of a hoverbike? Only $777,000 according to current estimates, though the company hopes to get the cost down to about $50,000, The Detroit News reported.

The Detroit News adds this about the company's founder/CEO: As a boy, Shuhei Komatsu loved Star Wars movies, especially the lightning-fast land speeders. So when he grew up, he decided to make one of his own, he said.

"I wanted to make something from the movie real," Komatsu said. "It's a land speeder for the Dark Side...."

Komatsu said his company will make its public offering of stock on the NASDAQ exchange in November.... He said he's hoping the U.S. government classifies its XTURISMO as a non-aircraft.... He said he thinks consumers will buy the machine for recreation, and governments will buy it for law enforcement and for inspecting infrastructure. "I hope that in the future, people will use it for every day," he said.

Advertising

The $300B Google-Meta Advertising Duopoly is Under Attack (yahoo.com) 34

The Economist notes this business cycle is hurting ad revenue for Alphabet's Google and Meta's Facebook."Last quarter Meta reported its first-ever year-on-year decline in revenues. Snap, a smaller rival, is laying off a fifth of its workforce." But for both companies, "the cyclical problem may not be the worst of it," since they're finally facing some real competition.

"They might once have hoped to offset the digital-ad pie's slower growth by grabbing a larger slice of it. No longer." Although the two are together expected to rake in around $300bn in revenues this year, sales of their four biggest rivals in the West will amount to almost a quarter as much... What is more, as digital advertising enters a period of transformation, the challengers look well-placed to increase their gains. The noisiest newcomer to the digital-ad scene is TikTok. In the five years since its launch the short-video app has sucked ad dollars away from Facebook and Instagram, Meta's two biggest properties. So much so that the two social networks are reinventing themselves in the image of their Chinese-owned rival.... But Meta and Google may have more to worry about closer to home, where a trio of American tech firms are loading ever more ads around their main businesses.

Chief among them is Amazon, forecast to take nearly 7% of worldwide digital-ad revenue this year, up from less than 1% just six years ago. The company started reporting details of its ad business only in February, when it revealed sales in 2021 of $31bn. As Benedict Evans, a tech analyst, points out, that is roughly as much as the ad sales of the entire global newspaper industry. Amazon executives now talk of advertising as one of the company's three "engines", alongside retail and cloud computing.

Next in line is Microsoft, expected to quietly take more than 2% of global sales this year — slightly more than TikTok. Its search engine, Bing, has only a small share of the search market, but that market is a gigantic one. Microsoft's social network, LinkedIn, is unglamorous but its business-to-business ads allow it to monetise the time users spend on it at a rate roughly four times that of Facebook, estimates Andrew Lipsman of eMarketer. It generates more revenue than some medium-sized networks including Snap's Snapchat and Twitter.

The most surprising new adman is Apple. The iPhone-maker used to rail against intrusive digital advertising. Now it sells many ads of its own.... As digital ads work their way into more corners of the economy, "a new order is going to materialise", believes Mr Lipsman. He thinks Amazon will overtake Meta in total advertising revenue, possibly within five years.

The Internet

Why Craigslist Still Looks the Same After 25+ Years (pcmag.com) 95

An anonymous reader quotes a report from PC Magazine: Craigslist emerged in 1995 to connect strangers through a free, web-based platform that has endured as rivals services like Zillow, Facebook Marketplace, and countless dating apps emerged with advanced features and slick interfaces. These platforms survive on advertising and subscription revenue. Craigslist, of course, has none of that. Over the years, the OG online marketplace has all but refused to modernize; its mobile app only came out in 2019 after nearly 25 years in business. Why does the website still look the same after so many decades? That was the main question I had when I sat down for a video call with craigslist founder Craig Newmark, who joined me from the New York City apartment he shares with his wife, Eileen Whelpley.

Newmark stepped down as CEO of craigslist in 2000 after others told him he wasn't cut out for management, he says. Jim Buckmaster has been at the helm since, though Newmark remains a partial owner. He now works on philanthropy full time, supporting groups like the Coalition Against Online Violence, which helps combat harassment against female journalists. Still, the 69-year-old entrepreneur is a billionaire (or near-billionaire since he's given away millions). Our chat yielded much more than expected, from Costco hotdogs to Hello Kitty and his childhood Sunday School lessons. It's clear that the website is the purest and most enduring expression of Craig Newmark, a humble tech mogul who marches to the beat of his own drum.
Here's what Newmark had to say when asked about the site's appearance:

Why does the website still look the pretty much the same today as when you founded it? There's even a new CEO. What's going on?
Because that serves people better. I've learned that people want stuff that is simple and fast and gets the job done. People don't need fancy stuff. Sometimes you just want to get through the day.

Well, you can still have simplicity with a modern font or a new UI. The definition of simplicity on the web has changed over the years. Is it just that you're making enough money and there's a desire to keep it the way it is?
I'll challenge the premise that the idea of simplicity has changed. The deal is that people still use the site in great numbers. And again, it helps people get something done. It's fast and easy for people, and that's a big deal.

And maybe you also don't care too much about aesthetics (of the website, for example)?
For me as an engineer, simple as beautiful. Functional is beautiful.

How would you feel if craigslist dramatically changed in its appearance or its function?
I'm okay if the spirit is maintained. I like a very simple site with its use and functionality obvious when you look at it. Now maybe there's a better way to do that, that no one has come up with yet. If it's really better, I can't object to that. If it's genuinely better, I will say something. But again, I can't legitimately try to exert serious influence. Jim's boss.

In summary, what is your most concise answer to why craigslist still looks the same today?
People tell me it gets the job done. They want it done. As I like to put it, a nerd's got to do what a nerd's got to do.
Facebook

South Korea Fines Google, Meta Billions of Won For Privacy Violations (reuters.com) 19

South Korea levied tens of millions of dollars in fines on Alphabet's Google and Meta Platforms for privacy law violations, authorities said on Wednesday. From a report: In a statement, the Personal Information Protection Commission said it fined Google 69.2 billion won ($50 million) and Meta 30.8 billion won ($22 million). The privacy panel said the firms did not clearly inform service users and obtain their prior consent when collecting and analysing behavioural information to infer their interests or use them for customised advertisements. "We disagree with the PIPC's findings, and will be reviewing the full written decision once it's shared with us," a Google spokesperson said. "We've always demonstrated our commitment to making ongoing updates that give users control and transparency, while providing the most helpful products possible. We remain committed to engaging with the PIPC to protect the privacy of South Korean users."
Facebook

To Defeat FTC Lawsuit, Meta Demands Over 100 Rivals Share Biggest Trade Secrets (arstechnica.com) 55

An anonymous reader shares a report: Several years after Facebook-owner Meta acquired WhatsApp and Instagram, the Federal Trade Commission launched an antitrust lawsuit that claimed that through these acquisitions, Meta had become a monopoly. A titan wielding enormous fortune over smaller companies, the FTC said Meta began buying or burying competitors in efforts that allegedly blocked rivals from offering better-quality products to consumers. In this outsize role, Meta stopped evolving consumer preferences for features like greater privacy options and stronger data protection from becoming the norm, the FTC claimed. The only solution the FTC could see? Ask a federal court to help them break up Meta and undo the damage the FTC did not foresee when it approved Meta's acquisitions initially. To investigate whether Meta truly possesses monopoly power, both Meta and the FTC have subpoenaed more than 100 Meta competitors each. Both hope to clearly define in court how much Meta dominates the market and just how negatively that impacts its competitors.

Through 132 subpoenas so far, Meta is on a mission to defend itself, claiming it needs to gather confidential trade secrets from its biggest competitors -- not to leverage such knowledge and increase its market share, but to demonstrate in court that other companies are able to compete with Meta. According to court documents, Meta's so hungry for this background on its competitors, it says it plans to subpoena more than 100 additional rivals, if needed, to overcome the FTC's claims. Meta is asking its competitors for a wide range of insights, from their best-performing features to names of their biggest advertisers. It wants to see all business receipts, which to its competitors is seemingly turning the antitrust litigation into a business opportunity for Meta to find out precisely how other companies attract users, scale products, and gauge success. Among rivals already subpoenaed are Twitter, TikTok owner ByteDance, Reddit, Pinterest, LinkedIn, and Snap. More requests could be made in the coming years, though, before the discovery for both sides concludes on January 5, 2024.

Social Networks

Instagram Stumbles in Push To Mimic TikTok, Internal Documents Show (wsj.com) 28

Meta Chief Executive Mark Zuckerberg is betting the social-media giant's near-term future on Instagram Reels, the short-video feature he is touting as the company's answer to TikTok. The company's internal research shows that Meta has a lot of catching up to do. From a report: Instagram users cumulatively are spending 17.6 million hours a day watching Reels, less than one-tenth of the 197.8 million hours TikTok users spend each day on that platform, according to a document reviewed by The Wall Street Journal that summarizes internal Meta research. The document, titled "Creators x Reels State of the Union 2022," was published internally in August. It said that Reels engagement had been falling -- down 13.6% over the previous four weeks -- and that "most Reels users have no engagement whatsoever." One reason is that Instagram has struggled to recruit people to make content. Roughly 11 million creators are on the platform in the U.S., but only about 2.3 million of them, or 20.7%, post on that platform each month, the document said.
Facebook

'Quest Pro' Video Shows Meta's Next VR Headset a Month Before Its Launch (theverge.com) 29

Images and, later, a video of a "Meta Quest Pro" virtual reality (VR) headset surfaced online, posted on Facebook by Ramiro Cardenas, who claims the device was left in a hotel room. From a report: The device shown resembles the Project Cambria headset Meta has been publicly teasing since late last year and looks like the one spotted in leaked setup videos. The video shows Cardenas removing the device from its packaging, revealing a black headset and controller with what looks like an updated design. While the headset has three cameras on its front, the controllers feature a design that drops the hollowed-out loop design that houses the sensors for something more solid. The packaging has the "Meta Quest Pro" label stamped in the top-left corner and a graphic showing the VR headset and controllers. Cardenas also provided a closeup of the label stuck to the box, which says "Not for resale - engineering sample," and told The Verge that the person who stayed in the room has since claimed the headsets.
Data Storage

US State of Virginia Has More Datacenter Capacity Than Europe or China (theregister.com) 42

The state of Virginia has over a third of America's hyperscale datacenter capacity, and this amounts to more than the entire capacity of China or the whole of Europe, highlighting just how much infrastructure is concentrated along the so-called Datacenter Alley. The Register reports: These figures come from Synergy Research Group, which said that the US accounts for 53 percent of global hyperscale datacenter capacity, as measured by critical IT load, at the end of the second quarter of 2022. The remainder is relatively evenly split between China, Europe, and the rest of the world. While few would be surprised at the US accounting for the lion's share of datacenter capacity, the fact that so much is concentrated in one state could raise a few eyebrows, especially when it is centered on a small number of counties in Northern Virginia -- typically Loudoun, Prince William, and Fairfax -- which make up Datacenter Alley.

"Hyperscale operators take a lot of factors into account when deciding where to locate their datacenter infrastructure," said Synergy chief analyst John Dinsdale. "This includes availability of suitable real estate, cost and availability of power supply options, proximity to customers, the risk of natural disasters, local incentives and approvals processes, the ease of doing business and internal business dynamics, and this has inevitably led to some hyperscale hot spots." Amazon in particular locates a large amount of its datacenter infrastructure in Northern Virginia, with Microsoft, Facebook, Google, ByteDance, and others also having a major presence, according to Synergy. The big three cloud providers -- Amazon, Microsoft and Google -- have the broadest hyperscale bit barn footprint, with each of these having over 130 datacenters of the 800 or so around the globe. When measured in datacenter capacity, the leading companies are Amazon, Google, Microsoft, Facebook, Alibaba and Tencent, according to Synergy.

Government

White House Unveils Principles For Big Tech Reform (reuters.com) 38

The White House on Thursday outlined six principles to reform Big Tech platforms and said it was encouraged to see bipartisan interest in Congress to rein in major U.S. tech companies. Reuters reports: The six principles include promoting technology sector competition; adopting robust federal privacy protections, and tougher privacy and online protections for children; rescinding special legal protections for large tech platforms; increasing transparency about platforms' algorithms and content moderation decisions; and ending discriminatory algorithmic decision-making.

"The rise of tech platforms has introduced new and difficult challenges," the White House said, "from the tragic acts of violence linked to toxic online cultures, to deteriorating mental health and wellbeing, to basic rights of Americans and communities worldwide suffering from the rise of tech platforms big and small." A group of bipartisan lawmakers has introduced antitrust legislation aimed at reining in the four tech giants -- Meta Platform's Facebook, Apple, Alphabet's Google and Amazon.com -- that would bar the companies from favoring their own businesses in search results and other ways. The lawmakers have said they believe they have the 60 Senate votes needed to move forward, but no vote has yet been scheduled.
Further reading: Big Tech's $95 Million Spending Spree Leaves Antitrust Bill On Brink of Defeat
Facebook

Facebook Parent Meta Cuts Responsible Innovation Team (wsj.com) 19

Meta Platforms has disbanded its Responsible Innovation team, which was once a prominent piece of its effort to address concerns about the potential downsides of its products. From a report: The team had included roughly two dozen engineers, ethicists and others who collaborated with internal product teams and outside privacy specialists, academics and users to identify and address potential concerns about new products and alterations to Facebook and Instagram. Meta spokesman Eric Porterfield said the company remains committed to the team's goals, and that most of its former members would continue similar work elsewhere at Meta, though they aren't guaranteed new jobs. He said the company believed its safe and ethical product design resources were better spent on more issue-specific teams.

The team's demise comes at a tumultuous time for Meta, as it contends with a precipitous slowdown in its core digital-advertising business that has prompted it to slow hiring in recent months. Chief Executive Mark Zuckerberg has been trying to overhaul a broad swath of the social-media giant's businesses, emphasizing initiatives that can help drive near-term growth or that fit with his longer-term emphasis on the metaverse, a loosely defined, more immersive version of the internet that he says is central to the company's future. As envisioned, according to past statements by the company and the team's leaders, the Responsible Innovation team was to have had a formative role in future company products, beginning with encouraging newly hired engineers in how to think about potential downsides to what they build and then consulting on the design of specific products.

Facebook

Facebook Button is Disappearing From Websites as Consumers Demand Better Privacy (cnbc.com) 36

Until about a month ago, shoppers on Dell's website looking for a new laptop could log in using their Facebook credentials to avoid creating a new username and password. That option is now gone. Dell isn't alone. CNBC: Other big brands, including Best Buy, Ford Motor, Pottery Barn, Nike, Patagonia, Match and Amazon's video-streaming service Twitch have removed the ability to sign on with Facebook. It's a marked departure from just a few years ago, when the Facebook login was plastered all over the internet, often alongside buttons that let you sign in with Google, Twitter or LinkedIn. Jen Felch, Dell's chief digital and chief information officer, said people stopped using social logins, for reasons that include concerns over security, privacy and data-sharing.

"We really just looked at how many people were choosing to use their social media identity to sign in, and that just has shifted over time," Felch said. "One thing that we see across the industry is more and more security risks or account takeovers, whether that's Instagram or Facebook or whatever it might be, and I just think we're observing people making a decision to isolate that social media account versus having other connections to it." The disappearing login is the latest sign of Facebook's diminishing influence on the internet following more than a decade of spectacular growth. In the past year, the company's business has been beset by Apple's iOS privacy change, which made it harder to target ads, a deteriorating economy, competition from short-video service TikTok, and reputational damage after a whistleblower leaked documents showing Facebook knew of the harm caused by many of its products.

Facebook

Facebook Engineers: We Have No Idea Where We Keep All Your Personal Data (theintercept.com) 69

An anonymous reader quotes a report from The Intercept: In March, two veteran Facebook engineers found themselves grilled about the company's sprawling data collection operations in a hearing for the ongoing lawsuit over the mishandling of private user information stemming from the Cambridge Analytica scandal. The hearing, a transcript of which was recently unsealed (PDF), was aimed at resolving one crucial issue: What information, precisely, does Facebook store about us, and where is it? The engineers' response will come as little relief to those concerned with the company's stewardship of billions of digitized lives: They don't know.

The admissions occurred during a hearing with special master Daniel Garrie, a court-appointed subject-matter expert tasked with resolving a disclosure impasse. Garrie was attempting to get the company to provide an exhaustive, definitive accounting of where personal data might be stored in some 55 Facebook subsystems. Both veteran Facebook engineers, with according to LinkedIn two decades of experience between them, struggled to even venture what may be stored in Facebook's subsystems. "I'm just trying to understand at the most basic level from this list what we're looking at," Garrie asked. "I don't believe there's a single person that exists who could answer that question," replied Eugene Zarashaw, a Facebook engineering director. "It would take a significant team effort to even be able to answer that question." When asked about how Facebook might track down every bit of data associated with a given user account, Zarashaw was stumped again: "It would take multiple teams on the ad side to track down exactly the -- where the data flows. I would be surprised if there's even a single person that can answer that narrow question conclusively." [...]

Facebook's stonewalling has been revealing on its own, providing variations on the same theme: It has amassed so much data on so many billions of people and organized it so confusingly that full transparency is impossible on a technical level. In the March 2022 hearing, Zarashaw and Steven Elia, a software engineering manager, described Facebook as a data-processing apparatus so complex that it defies understanding from within. The hearing amounted to two high-ranking engineers at one of the most powerful and resource-flush engineering outfits in history describing their product as an unknowable machine. The special master at times seemed in disbelief, as when he questioned the engineers over whether any documentation existed for a particular Facebook subsystem. "Someone must have a diagram that says this is where this data is stored," he said, according to the transcript. Zarashaw responded: "We have a somewhat strange engineering culture compared to most where we don't generate a lot of artifacts during the engineering process. Effectively the code is its own design document often." He quickly added, "For what it's worth, this is terrifying to me when I first joined as well."

Security

As Ex-Uber Executive Heads To Trial, the Security Community Reels (nytimes.com) 67

Joe Sullivan, Uber's former chief of security, faces criminal charges for his handling of a 2016 security breach. His trial this week has divided the security industry. From a report: Joe Sullivan was a rock star in the information security world. One of the first federal prosecutors to work on cybercrime cases in the late 1990s, he jumped into the corporate security world in 2002, eventually taking on high-profile roles as chief of security at Facebook and Uber. When the security community made its annual summer pilgrimage to Las Vegas for two conferences, Mr. Sullivan was an easily recognizable figure: tall with shaggy hair, wearing sneakers and a hoodie. "Everyone knew him; I was in awe, frankly," said Renee Guttmann, who was the chief information security officer for Coca-Cola and Campbell Soup. "He was an industry leader." So it came as a shock to many in the community when Mr. Sullivan was fired by Uber in 2017, accused of mishandling a security incident the year before. Despite the scandal, Mr. Sullivan got a new job as chief of security at Cloudflare, an internet infrastructure company.

But the investigation into the incident at Uber continued, and in 2020, the same prosecutor's office where Mr. Sullivan had worked decades earlier charged him with two felonies, in what is believed to be the first time a company executive has faced potential criminal liability for an alleged data breach. Mr. Sullivan has pleaded not guilty to the charges. Mr. Sullivan stepped down from his job at Cloudflare in July, in preparation for his trial, which begins this week in U.S. District Court in San Francisco. Other chief security officers are following the case closely, worried about what it means for them. [...] At the very least, security executives are worried about being on the hook for potential legal bills. Charles Blauner, a retired CISO and cybersecurity adviser, said security chiefs had taken a strong interest in directors and officers insurance, which covers the legal costs of executives who are sued as a result of their work with a company. "A lot of sitting chief information security officers are going to their bosses and asking if they have D.&O. insurance and, if not, can I have it?" Mr. Blauner said. "They are saying, 'If I'm going to be held liable for something our company does, I want legal coverage.'" After being charged, Mr. Sullivan sued Uber to force it to pay his legal fees in the criminal case, and they reached a private settlement.

Government

Big Tech's $95 Million Spending Spree Leaves Antitrust Bill On Brink of Defeat (bloomberg.com) 46

An anonymous reader quotes a report from Bloomberg: A high-profile push by Congress to rein in the nation's biggest internet companies is at risk of failing with time running out to pass major legislation ahead of midterm elections. Alphabet's Google, Apple, Amazon.com and Meta and their trade groups have poured almost $95 million into lobbying since 2021 as they seek to derail the American Innovation and Choice Online Act, which has advanced further than any US legislative effort to address the market power of some of the world's richest companies. After a nearly two-year battle, the bill is now at a critical juncture as the Senate returns this week for a final stretch before the November midterms. Backers of the measure swear they have the necessary votes, yet it's unclear if they do, and the Senate will be busy with other must-pass spending legislation.

Although clipping the wings of tech giants through antitrust reform had support from both Republicans and Democrats during this Congress, a likely GOP majority in the House next year is expected to focus on allegations that internet platforms squelch conservative viewpoints. That's why tech lobbyists have been trying to run out the clock. Leading Republicans like California's Kevin McCarthy, who is on track to become Speaker under a GOP majority, have publicly opposed the antitrust push. The legislation's sponsors can see the window narrowing. Antitrust advocates were expecting a vote before Congress adjourned for four weeks in August. But Schumer told donors in July that it didn't have enough votes to pass.

The bill has 13 co-sponsors in the Senate, where it would need 60 votes to pass and be sent to the House. Supporters like Yelp's head of public policy Luther Lowe, a longtime Google critic, argue that enough undecided lawmakers would vote for the measure if it came to the floor. A Schumer spokesperson said he's working with the bill's sponsors to find the necessary votes and he still plans to bring it to the floor. The bill was approved by both the House and Senate Judiciary Committees on strong bipartisan votes. Several amendments have addressed concerns about privacy and security issues. What hasn't killed the bill "has made it stronger," said Yelp's Lowe. The measure seeks to restrict the companies from favoring their own products, so that competitors who depend on these platforms to reach consumers wouldn't be at a disadvantage. That could impact the design of Google Maps, the display of Apple Music on an iPhone or the prominence of Amazon Basics on the company's e-commerce site.
"I don't see it going to the floor," said Michael Petricone, senior vice president of government affairs at the Consumer Technology Association, a trade group that counts Amazon, Google and Facebook among its members. "With an election coming up, I expect senators to come back and focus on issues that are popular with voters. Tech regulation is not one of those issues."
Businesses

Apple Plans To Double Its Digital Advertising Business Workforce (ft.com) 23

Apple plans to nearly double the workforce in its fast-growing digital advertising business less than 18 months after it introduced sweeping privacy changes that hobbled its bigger rivals in the lucrative industry. Financial Times: The iPhone maker has about 250 people on its ad platforms team, according to LinkedIn. According to Apple's careers website, it is looking to fill another 216 such roles, almost quadruple the 56 it was hiring in late 2020. Apple disputed the figures but declined to elaborate. The digital ads industry has been on edge about Apple's advertising ambitions since it launched privacy rules last year that disrupted the $400bn digital ads market, making it difficult to tailor ads to Apple's 1bn-plus iPhone users.

Since the policy was introduced, Facebook parent Meta, Snap and Twitter have lost billions of dollars in revenue -- and far more in market valuation, although there have been additional contributing factors. "It was really almost like a global panic," said Jade Arenstein, global service lead at Incubeta, a South Africa-based marketing performance company, of the impact of Apple's changes. Meanwhile, Apple's once-fledgling ads business is now "incredibly fast-growing," according to a job ad. The business has gone from just a few hundred million dollars of revenue in the late 2010s to about $5bn this year, according to research group Evercore ISI, which expects Apple to have a $30bn ads business within four years.

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