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.

The Military

How Ukrainians Infiltrated Internet-Connected Security Cameras, Exposed Russian Bases (ft.com) 71

The Financial Times tells how the head of a Ukrainian cybersecurity company recruited dozens of "high-level Ukrainian hackers" and borrowed a Starlink internet satellite for "the large-scale infiltration of internet-connected security cameras to surveil Russian-occupied territory, and honey-trapping Russian soldiers into revealing their bases." [T]hey hacked thousands of security and traffic cameras in Belarus and parts of Ukraine that Russia had occupied. To filter the information, the team wrote machine-learning code that helped them separate military movements from ordinary traffic, and they funnelled the information to the military via a public portal.

In one example, described to the Financial Times with photographs and locations, they identified a remote Russian base near occupied Melitopol in southern Ukraine. Then, using fake profiles of attractive women on Facebook and Russian social media websites, they tricked soldiers into sending photos that they geolocated, and shared with the Ukrainian military....

A few days later, they watched on TV as the base was blown up by Ukrainian artillery.

Advertising

Facebook 'Repeatedly and Intentionally' Violated Washington's Political Ad Law, Judge Rules (geekwire.com) 49

The Seattle Times reports: Meta, Facebook's parent company, repeatedly and intentionally violated Washington campaign-ad transparency law and must pay penalties yet to be determined, a judge ruled Friday.

The court also denied Meta's attempt to invalidate Washington's decades-old transparency law, according to Attorney General Bob Ferguson, whose office has repeatedly sued Meta over its failure to abide by the law.... In a statement, Ferguson said his office defeated Facebook's "cynical attempt" to gut Washington's campaign-finance transparency law. "On behalf of the people of Washington, I challenge Facebook to accept this decision and do something very simple — follow the law," he said.

Meta did not immediately respond to a request for comment.

Washington's transparency law, originally passed by voters through an initiative in 1972, requires ad sellers such as Meta to disclose the names and addresses of political ad buyers, the targets of such ads and the total number of views of each ad.

Meta says that rather than comply with the law, Facebook has stopped serving campaign ads altogether in Washington, GeekWire reports, "after determining that the company wouldn't be able to reasonably comply with the law."

But "The current suit against Meta, filed in April 2020, asserts that the company continued to accept political ads in the state after promising to stop." The judge will now consider fines and a potential injunction against the social media giant, reported Eli Sanders, a Seattle journalist who covered the dispute for years for The Stranger newspaper and more recently in his Wild West newsletter....

In court filings, Meta called Washington state "an outlier," arguing that the disclosure law violates the First Amendment by unfairly targeting political speech, and imposing onerous timelines for disclosing what Meta considers unreasonable degrees of detail to people who request information about political ads.

AI

China Woos US Tech Giants Apple, Qualcomm, Meta at Shanghai AI Expo (nikkei.com) 20

Big U.S. tech companies have flocked to the World Artificial Intelligence Conference that opened Thursday in Shanghai, drawing a stark contrast with Washington's ongoing efforts to distance itself economically from China. From a report: The opening ceremony included a virtual address by Qualcomm CEO Cristiano Amon, who said the company will supply the most complete and comprehensive technology and solutions in China and the world. Apple, Advanced Micro Devices, Facebook parent Meta and GE HealthCare also have executives or booths at the event, according to Chinese media. Europe's semiconductor industry is represented as well, with executives from Netherlands-based NXP Semiconductors, a major supplier of automotive chips, and Germany's Infineon Technologies discussing development plans.

The strong American showing is good news for China, which needs advanced chip technology to power its AI development and is keen to win over companies that can provide it. The business opportunities afforded by the massive Chinese market remain essential to many American companies. China is a leading information technology production hub, as well as the world's top auto production center -- an increasingly important field for chipmakers as the number of semiconductors used in vehicles continues to rise. Qualcomm generated roughly two-thirds of its sales last year in China, a major production base for many of the smartphone manufacturers that are among its main customers. The country accounts for just under 30% of sales at AMD and Intel, 20% at Micron Technology and over 30% at NXP.

Social Networks

Real Money, Fake Musicians: Inside a Million-Dollar Instagram Verification Scheme (propublica.org) 20

A jeweler. A plastic surgeon. An OnlyFans Model. They and others received a blue check in likely the biggest Instagram verification scheme revealed to date. After ProPublica started asking questions, Meta removed badges from over 300 accounts. From a report: To his more than 150,000 followers on Instagram, Dr. Martin Jugenburg is Real Dr. 6ix, a well-coiffed Toronto plastic surgeon posting images and video of his work sculpting the decolletage, tucking the tummies and lifting the faces of his primarily female clientele.

Jugenburg's physician-influencer tendencies led to a six-month suspension of his Ontario medical license in 2021 after he admitted to filming patient interactions and sharing images of procedures without consent. He apologized for the lapse and is currently facing a class-action lawsuit from female patients who say their privacy was violated. But on Spotify, Apple Music and Deezer, and in roughly a dozen sponsored posts scattered across the web, Jugenburg's career and controversial history was eclipsed by a new identity. On those platforms, he was DJ Dr. 6ix, a house music producer who's celebrated for his "inherent instinctual ability for music composition" and who "assures his followers that his music is absolutely unique." It's an unconvincing persona -- perhaps even less so once his "music" is played. But it was enough to secure what he wanted: a verification badge for his Instagram account.

The coveted blue tick can be difficult to obtain and is supposed to assure that anyone who bears one is who they claim to be. A ProPublica investigation determined that Jugenburg's dubious alter ego was created as part of what appears to be the largest Instagram account verification scheme ever uncovered. With a generous greasing of cash, the operation transformed hundreds of clients into musical artists in an attempt to trick Meta, the owner of Instagram and Facebook, into verifying their accounts and hopefully paving the way to lucrative endorsements and a coveted social status. Since at least 2021, at least hundreds of people -- including jewelers, crypto entrepreneurs, OnlyFans models and reality show TV stars -- were clients of a scheme to get improperly verified as musicians on Instagram, according to the investigation's findings and information from Meta.

Android

Google Play To Ban Android VPN Apps From Interfering With Ads (theregister.com) 36

An anonymous reader quotes a report from The Register: Google in November will prohibit Android VPN apps in its Play store from interfering with or blocking advertising, a change that may pose problems for some privacy applications. The updated Google Play policy, announced last month, will take effect on November 1. It states that only apps using the Android VPNService base class, and that function primarily as VPNs, can open a secure device-level tunnel to a remote service. Such VPNs, however, cannot "manipulate ads that can impact apps monetization."

The rules appear to be intended to deter data-grabbing VPN services, such as Facebook's discontinued Onavo, and to prevent ad fraud. The T&Cs spell out that developers must declare the use of VPNservice in their apps' Google Play listing, must encrypt data from the device to the VPN endpoint, and must comply with Developer Program Policies, particularly those related to ad fraud, permissions, and malware.

Blokada, a Sweden-based maker of an ad-blocking VPN app, worries this rule will hinder at least the previous iteration of its software, v5, and other privacy-oriented software. "Google claims to be cracking down on apps that are using the VPN service to track user data or rerouting user traffic to earn money through ads," Reda Labdaoui, marketing and sales manager at Blokada, wrote last week in a a forum post. "However, these policy changes also apply to apps that use the service to filter traffic locally on the device." Labdaoui suggests Blokada v6, which launched in June, should not be affected because it does filtering in the cloud without violating Google's device policies. But other apps may not be so fortunate.

Facebook

Facebook is Shutting Down Its Standalone Gaming App in October (techcrunch.com) 6

Just over two years after its launch, Facebook is shutting down the Facebook Gaming app on October 28, 2022. Now, when you open the app, you'll see a banner stating that the app will no longer be available on iOS and Android after that date. The app also won't be available on the Google Play Store or the Apple App Store. From a report: "Despite this news, our mission to connect players, fans and creators with the games they love hasn't changed, and you'll still be able to find your games, streamers and groups when you visit Gaming in the Facebook app," the notice reads. "We want to extend our heartfelt thanks to all of you for everything that you've done to build a thriving community for gamers and fans since this app first launched."

If you've been using the app, you can download your search data before the app is discontinued. The app launched in April 2020 toward the start of the COVID-19 pandemic as a way for users to watch their favorite streamers, play instant games and take part in gaming groups. Facebook experienced some hurdles trying to launch the app, as Apple rejected the app numerous times, citing its rules that prohibit apps with the main purpose of distributing casual games. Apple's rules forced Facebook to remove actual gameplay functionality from the app.

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