Month: June 2019

24 Jun 2019

Samsung releases a trio of smart home products

Samsung’s approach to the smart home has been — “uneven” seems like a nice way of putting it. None of this has really been helped along by the fact that Bixby and the company’s long-promised smart speaker, the Galaxy Home, are still lost in the woods.

SmartThings, the home automation startup the company acquired in 2014, has been relatively steady under its watch, on the other hand. The brand just released a trio of products maintaining its focus on low cost entry points for the starter smart home.

Two, the SmartThings Cam and WiFi Smart Plug have the helpful bonus of not requiring a separate hub. The Smart Bulb, on the other hand, does require one, but that’s not particularly surprising given the $10 price point. Samsung’s SmartThings Hub currently runs around $70, by the way.

None of the new entrants looks particularly exciting. The $90 Cam shoots in 1080p at a 145 degree angle and switches into night vision when the lights are off. It can capture HDR footage and has two-way audio.

The Smart Plug does seem like a pretty solid bargain at $18 vs. Amazon’s $25. Plugging in lights, appliances and the like gives the user app and voice control with Alexa, Google Assistant and, of course, Bixby. All three of the above will work with all of the new products.

The Cam, Smart Plug and Smart Bulb are available starting today.

24 Jun 2019

Byju’s-owned Osmo education startup enters pre-schoolers market

Osmo, a Palo Alto-based education startup acquired by Indian unicorn Byju’s for $120 million this year, is expanding its product lineup to serve a new and largely untapped market: pre-schoolers.

Osmo today announced Osmo Little Genius Starter Kit, a set of tools that aims to help children that have yet to enter schools to understand letters, expand their vocabulary, and build motor and social skills. The kit is priced at $79 and is available through Amazon, Target, and Apple stores in the U.S.

The kit provides children with sticks and rings of varying shapes, tasking them to assemble them to mimic objects and words that they see through video instructions on an accompanying tablet. Osmo claims its kit for pre-schoolers is based on Friedrich Froebel’s and Maria Montessori’s manipulative with advanced computer vision for a personalized experience.

Pramod Sharma, CEO of Osmo, told TechCrunch in an interview that he believes that the market for pre-schoolers remains untapped with little innovation hitting the space over the last 100 years. This new product launch represents a large and new opportunity for Osmo, which has so far catered to kids aged between five and 12.

In the U.S. alone, there are about 10 million kids who are in the pre-school stage. Additionally, “half of all the toys sale are aimed at kids who have not entered schools,” Sharma said.

The announcement today comes weeks after Byju’s, which acquired Osmo for $120 million earlier this year, expanded its own product catalog. Earlier this month, it partnered with Disney to roll out a new app that aims to educate children aged between six and eight.

Until recently, Byju’s focused entirely on high school students and those preparing for university entrance exams. It has since broadened its courses to cover all school grades. Byju’s, which competes with Unacademy in India, is heavily-funded by investors and valued at nearly $4 billion — it is widely acknowledged to be the leader in India’s e-learning market.

To tackle the pre-schoolers’ market, Osmo is leveraging on the interactive content produced by Byju’s, Sharma said. The nature of the product and market it serves will allow Osmo and Byju’s to expand the kit to many global markets, he explained.

The distribution of the new kit could prove challenging, however, Sharma acknowledged. Osmo has tie-ups with more than 30,000 U.S. elementary classrooms that help it deploy its product to a large number of students. It lacks that for earlier-stage education, but Osmo does plan to replicate that model in some capacity by partnering with pre-schools.

Sharma said also that a number of parents have asked Osmo whether it will have any products for their younger children which gives him confidence that there is raw demand. That said, he acknowledged that Osmo will initially need to be more aggressive than usual with its marketing and other outreach programs to parents.

In terms of subject matter, Osmo has largely focused on science and math to date. Moving forward, though, it plans to broaden its existing product lineup with more content and explore subjects including English language, history and social studies to “cover every aspect of learning,” Sharma said.

Byju’s claims 35 million registered users and some 2.4 million paid customers. It generated around $205 million in revenue in the fiscal year that ended in March this year. The company said it aims to increase that figure to over $430 million this year.

24 Jun 2019

Echo Show 5 review

The Echo team must have started sweating when the Lenovo Smart Clock was announced during CES. Deep inside Seattle’s Day One building, Amazon was reading the release of the Echo Show 5, a pint-sized version of the company’s smart screen that bore more than a passing resemblance to Lenovo’s Google Assistant device.

Amazon, of course, beat Google to the category by years with the first Echo Show and innovated the bedside model with the Echo Spot. But Google and its cohort have a way of catching up to and eventually passing the competition.

The Echo Show 5 isn’t designed solely for the nightstand. In fact, the product packs in a few features that Lenovo’s device lacks, including video playback and an on-board camera — both elements that could ultimately make it something of a mixed bag for the bedroom. It’s hard to know precisely where the Show 5 lives, especially with Amazon keeping the Spot around for the time being.

The Spot’s round form factor makes it the most delightful member of the Echo family, but like the Smart Clock, the new Show does a better job blending in, courtesy of a square design and cloth-covered backing. At 5.5 inches, its display is considerably larger than the Spot’s 2.5-inch screen, and a bit above Lenovo’s four inches. It will take up a bit more space on a nightstand — but just a bit. The Spot’s round design gives it a fairly sizable footprint in spite of a small screen.

In most ways, in fact, the Show 5 makes the current generation Spot redundant. In fact, I was a bit surprised to hear that the company would not only be keeping the original Spot around, it would be maintaining the same $130 price point — a $40 premium over the mini Show. Amazon could well be refreshing the Spot toward the end of the year, but it’s not going to burn through back stock at that price.

I do think Lenovo’s device loses something without the ability to play back video. A four-inch smart display isn’t the ideal way to watch video and it’s probably an unnecessary feature for the bedside, but YouTube integration is one of the biggest strengths of Google’s smart screens. That’s kind of squandered here.

On the Show, you’re stuck with Amazon’s video offerings. There are other instances, however, where video’s a great idea. The ability to watch live streams from smart security cameras and baby monitors comes to mind. I can certainly see the appeal in being able to see what’s going on out in front of the house without having to leave my warm bed.

The inclusion of a camera, on the other hand, continues to feel like a misstep. I understand that Amazon’s continuing to push video chat with all of the products, but introducing a camera on a product that will likely primarily be used in the bedroom is probably more trouble than it’s worth. Amazon clearly got the memo on this and other privacy issues, including a physical lens cap. By flipping a switch up top, you slide a barrier in front of the camera.

The lens cap is bright white to contrast with the large surrounding black bezel. There’s also a red marking up top that appears when the camera is obstructed. I kept the cap on for a majority of my testing — you know, just in case.

Where the Smart Clock really shone was its features designed specifically for a night table. The new Show has some, including routines like “Alexa, start my day.” That will trigger a succession of different features, including weather, traffic and customized news selections — it’s a nice blend for tempting you to get out of bed (though the news might have the knock-on effect of making you pull the sheets over your head). Lacking here are the gradual wake alarm, tap to snooze and the inclusion of a USB port for charging your phone while you sleep.


As for the inevitable showdown between the Show 5 and Smart Clock, that’s almost entirely down to which smart assistant you prefer. For my money, Google’s got the edge with Assistant, but both perform most tasks at roughly the same level. That includes the standard array of multimedia offerings played through middling speakers, along with smart home features — though it will be interesting to see how Google continues to refine the latter on its own Nest Hubs.

At $90, the Show 5 is considerably cheaper than its 10-inch namesake and $10 more than Lenovo’s offering. The latter at least will likely be negligible for most. Simply put, if you’re looking for a smart home hub to double as an alarm clock, Lenovo’s your best bet. If video playback and chat are important, Amazon’s got you covered.

24 Jun 2019

FedEx lures online sellers with two-day air shipping at ground rates after Amazon contract ends

International shipping giant FedEx is showing it’s serious about attracting the ecommerce crowd after a high-profile termination of one of its contracts with Amazon to provide delivery using its express air service in the US. FedEx is now offering the same two-day express air shipping direct to some customers for the same price it usually charges for ground service, which is typically much less expensive, the New York Times reports.

FedEx is offering the price cut in order to better compete with rival UPS, the report claims, and to help refactor its product with ecommerce sellers in mind. These include large competitors to Amazon, including Walmart and Walgreens, as well as smaller customers. Note that FedEx will still act as a carrier for Amazon even once its Express contract comes to an end this month, providing last-mile ground shipping.

Meanwhile, Amazon is expanding its own cargo air fleet, with 15 more planes joining its network and a goal of operating a total of 70 planes by 2021. Amazon launched Prime Air in 2016 to help increase its delivery speed to customers, and has been building out the network ever since. The company’s investment in its own delivery and logistics network has helped it provide free two-day, next day and even same day shipping on many items available on the platform to its Prime subscribers.

24 Jun 2019

Cloudflare outage affecting numerous sites on Monday AM

Cloudflare, a company providing performance and security to websites, is having network problems of its own this morning — and taking down a lot of its customers’ sites and apps in the process. Affected companies include podcast app Overcast, chat service Discord, managed hosting provider WP Engine, eCommerce hosting provider Sonassi, public web front-end CDN service CDNJS, and many others — including the sites that rely on the web hosting or who partner with Cloudflare for their CDN service.

According to Cloudflare, it identified a possible route leak that’s impacting some of the Cloudflare IP ranges, and its working now to resolve the issue.

The problems were first identified around 7:02 AM EST, says Cloudflare, and the problem was identified shortly thereafter.

Its status page has been providing continual updates.

The company said at 8:34 AM EST, “this leak is impacting many internet services including Cloudflare. We are continuing to work with the network provider that created this route leak to remove it.”

Update: The company at 12:42 AM UTC / 8:42 AM EST says the issue is resolved:

The network responsible for the route leak has now fixed the issue. We are seeing improvement and are continuing to monitor this before we consider this issue resolved.

 

 

24 Jun 2019

Cricket World Cup highlights just how big video streaming is in India

As hundreds of millions of people turn their attention to the ongoing ICC Cricket World Cup tournament, many of them are using an Indian streaming service to follow the ins and outs of the game.

More than 100 million users tuned in to Hotstar, an on-demand streaming service owned by Disney, on June 16, the day India and Pakistan played a league match against each other. That’s the highest engagement the four-year-old service has clocked on its platform to date, it said in a statement today.

Hotstar said about 66% of its viewers came from outside of big metro cities, an equally remarkable feat that illustrates the growing adoption of the streaming service in smaller cities and towns that remain sporadic consumers — if at all — of internet services.

To be sure, these 100 million users are not paying subscribers. Hotstar offers five-minute streaming of live events to users at no cost. The platform, which competes with Netflix, Prime Video, AltBalaji, Zee5, and YouTube in India, declined to share its paying subscribers base. In April, the company said it had 300 million monthly active users.

Regardless, 100 million daily active users is an impressive feat for any service in India. Especially for streaming services that, thanks to dramatically dwindling mobile data prices in the country in recent years, are increasingly changing users’ behavior toward intensive data usage online. (For some context, Facebook and WhatsApp have under 300 monthly active users in India; Google’s YouTube, which is its fastest growing service in the nation, also has fewer than 300 million monthly active users in the country.)

It also helps that the game between India and Pakistan, two neighboring nations with a long history, remains one of the most anticipated events for cricket following countries.

Cricket itself has emerged as the biggest driver of video streaming in India in the last three years. The game is followed by hundreds of millions of users across the globe — if not more. In 2010, Hilary Clinton urged nations to look at cricket as a model for improving relationships with other countries.

“I might suggest that if we are searching for a model of how to meet tough international challenges with skill, dedication and teamwork, we need only look to the Afghan national cricket team,” she said as U.S. Secretary of State in 2010.

Star India, which operates Hotstar, owns rights to most cricket tournaments, a bet that has immensely helped it scale its business. This then wouldn’t come as a surprise that both Amazon Prime Video and Netflix, that do not offer live streaming of sporting events in India, have produced shows themed around cricket to cash in on the game’s popularity.

Both Amazon and Netflix have fewer than 5 million subscribers in India, according to industry estimates. While Amazon Prime Video, which bundles a range of other services including faster delivery of goods, and Hotstar are priced at Rs 999 ($14.4) for a year-long service, Netflix’s monthly offering starts at Rs 500 ($7.2) — though it has been experimenting with more options.

Even Facebook made an unsuccessful bid to acquire streaming rights to a cricket tournament in India two years ago, months before it began to talk about its Watch ambitions. That cricket tournament was Indian Premier League (IPL), which concluded its 12th edition last month. Hotstar, which also owns the right to stream IPL matches, set a global record for most simultaneous views to a live event in the final game of the tournament last month.

Beating its own previous record, Hotstar claimed that more than 18.6 million viewers watched the game simultaneously. Interestingly enough, even as a record 100 million plus users simultaneously watched the game between India and Pakistan this month, Hotstar said the concurrent views count peaked at 15.6 million.

It remains unclear why Hotstar was not able to break its concurrent record that day. TechCrunch reported earlier this month that Hotstar had identified a security flaw in its service that allowed some Safari browser users to access and distribute Hotstar’s content without a paid subscription. To fix it, Hotstar temporarily discontinued support for Safari browser.

Last year, Hotstar and Walmart-owned Flipkart began a collaboration on building an advertising business in India. According to media planners TechCrunch has spoken to, Hotstar-Flipkart’s digital ad business is already the third largest in India, only behind Google and Facebook.

For Hotstar, the biggest challenge is in retaining customers after the mega cricket season ends next month. Each year, the service struggles to appease customers and sees a massive drop in users count after the cricket season is over, a source familiar with the matter said. In the last one year, it has started to invest in producing its original shows. Many inside the company have high hopes that people will show up to watch the Indian versions of Jim and Pam in the remake of NBC’s “The Office.” It premieres on Hotstar later this week.

24 Jun 2019

Creandum closes $300M fund for early-stage investments out of Europe

As one European VC raises a fund to double down on bigger growth rounds in Europe, another has closed a fund to continue focusing on early-stage investments. Stocklhom-founded Creandum, an early backer of companies like Spotify and iZettle, has closed a fifth fund €265 million ($300 million). The plan is to use the money to continue investing in European startups and startups with European founders (Creandum also has offices in San Francisco and Berlin) with a focus on seed and Series A rounds.

European venture capital has closely mirrored the trajectory that the startup ecosystem has taken in the region.

A strong culture of research in technical fields in public universities has meant no shortage of interesting ideas and talent to pursue them. But it was not that long ago that opportunities to raise capital to see those threads spun into cloth — much less fully-fledged items of clothing — were not so easy to come by. Funding rounds were smaller, and generally harder to raise, and if startups wanted to scale, the most promising of them often decamped to the US to do it.

Fast forward to today, and times are very different. The bigger startups in the region are staying put and finding the financial support — and customers — they need to take their businesses to the next level here in Europe, helped by the push into technologies like cloud services. And on the early-stage side, we’ve seen both the emergence of a new wave of VC firms, and an expansion of those that have been around for a while, to help fuel the explosion of startups that have formed and developed in the region.

Creandum, now 15 years old, fits into the latter category. Johan Brenner, a general partner at the firm, said that this round was oversubscribed with a view to seeing it add later-stage funding into the mix. Creandum, however, opted to reject that push to upsize to stay focused on seed and Series A.

“Creandum believes strongly that focusing on early stage is where the best returns are made,” he said in an email interview. “Being first institutional investors in Spotify, iZettle and Small Giant games and Creandum’s returns from those investments last year are proof points of that. Having too large funds will likely make the funds do larger and later investments or make too many small investments which is hard to support.”

He added that Creandum has already made a few investments out of this fund but is keeping mum on the details for now. “The investments in the new fund is still in stealth but they are in the areas of mobility, fintech, logistics and food tech,” he said. “We are excited to see the entrepreneurs that the fund is able to invest in.”

As is often the case with VCs, it often only takes a couple of huge hits to see a strong return — one reason why we see many built on the premise of multiple bets, to see what takes off (a model that SoftBank has taken, and with the vast coffers of the Vision Fund, now applies to making prolific later-stage investments). Creandum has followed a similar pattern and has had a strong run so far, helped in no small part by a few big hits. In its case they included the IPO of Spotify, the exit of iZettle to PayPal, Small Giant Games getting acquired by Zynga for $700 million, and the IPO of Elastic, which now has a market cap of $4.9 billion. The firm said that in total its portfolio exits have totalled $35 billion, with more than $800 million returned to investors in 2018.

In terms of areas and industries that are catching the firm’s attention, it’s a mark of the relative health of the market, I think, that Brenner declined to single out anything specific.

“Creandum is actually quite agnostic to the industry we focus on,” he said. “The most important thing is to find the best teams to invest in across Europe.” The firm estimates that 90% of GNP is “still largely undisrupted by technology.” That said, he added, “we continue to see opportunities in health tech, fintech, logistics, manufacturing technologies and mobility.”

Given the big swing of attention (if not, necessarily, usage) we’ve seen to cryptocurrency and blockchain architecture, it’s notable, too, that one of Europe’s bigger early-stage investors is looking at that as well.

“Creandum is a big believer in blockchain and the services and products it can enable,” Brenner said. “We also believe cryptocurrencies will be very important in the long term.”

Among other investments in crypto, the firm currently backs Argent, a decentralized wallet among that “fits into our thesis that the long-term potential of crypto is not about a few random people suddenly making a lot of money on a hot new ICO,” he said. “It is to profoundly change the world by making it more decentralised.” He said the firm is on the hunt for more startups in adjacent areas also looking for investment.

24 Jun 2019

Carrefour sale shifts the balance of power in China’s new retail battle

Hot on the heels of Amazon’s decision to shutter its local marketplace, Carrefour — another global commerce giant — is switching up its approach to China, and shifting the balance of power between the country’s tech giants.

Carrefour, which is Europe’s largest retailer, sold a majority 80% stake in its China-based business to Chinese retailer Suning, according to an announcement made this weekend. The deal is worth €620 million — that’s RMB 4.8 billion or $705 million — and it is set to close by the end of this year.

Beyond a retail story, the news also has a strong tech angle given the convoluted relationships of the parties that are involved, and it’s a reminder of the power that Chinese tech giants have grown to command.

Ties to Alibaba

Suning has had close links to Alibaba. The e-commerce giant owns a 20% stake in Suning courtesy of a $4.6 billion investment in 2015 and Suning, in turn, invested 14 billion yuan ($2 billion) in Alibaba a deal that kickstarted Alibaba’s ‘new retail’ strategy.

Suning started in 1990 as a home appliance retail store and is now one of China’s largest retailers with an extensive brick-and-mortar reach and an e-commerce share trailing behind Alibaba and JD.com . While it worked closely with Alibaba on merging offline commerce with online a few years back, the pair have gradually distanced themselves from each other in recent times.

Suning last year cashed out and cut its stake in Alibaba from an initial 1.1% to 0.51%. Since the Suning deal, Alibaba has continued to back old-school retail chains that would ramp up its offline operations through mega-deals like the $2.88 billion offer for Sun Art in 2017.

In other words, Alibaba has gone from being an ally to Suning to a potential competitor in the omnichannel commerce space.

The Carrefour deal is tipped to up the arms race as Carrefour China’s retail presence could boost Suning’s offline reach. Carrefour numbers 210 hypermarkets and 24 convenience stores and generated €3.6 billion — RMB 28.5 billion or $4.09 billion — in sales last year. Suning, meanwhile, has over 8,880 stores across 700-plus cities in China.

Alibaba’s Hippofresh store combines online and offline commerce [Image via Alibaba]

Tencent’s attempt

If the sale’s relevance to tech sounds far-fetched, consider that Carrefour China previously had a “strategic partnership” with Tencent, which is, of course, Alibaba’s arch-rival.

Chasing Alibaba’s shadow, Tencent’s retail footprint is most closely associated with its alliance with JD.com — we visited their flagship store last year — but Tencent also ran hybrid stores in partnership with Carrefour in Beijing.

Indeed, the FT reported that Carrefour had tried to sell a minority stake in its China business to Tencent but those talks are now over.

Instead, the Suning deal will give Carrefour “several liquidity windows to sell its remaining 20% stake in Carrefour China,” according to a statement provided to the FT.

That’s the interesting power swing, Carrefour’s allegiance appears to have moved from away Tencent.

It certainly goes against the grain and what you might expect. Tencent and JD.com — its own proxy — have tended to do deals with international retailers.

Walmart sold its China-based business to JD.com as part of its exit from the country in 2016, and Walmart has remained a partner with deals that include leading a $500 million investment in Dada-JD Daojia, an online-to-offline grocery business which is part-owned by JD.com. Other investment-led relationships include an investment in JD.com from Google, which itself has developed partnerships with Tencent.

It is likely too early to know what impact the Carrefour deal will have, but it sure seems significant that the operations will cross a hard line and switch between China’s internet tribes.

24 Jun 2019

Facebook makes another push to shape and define its own oversight

Facebook’s head of global spin and policy, former UK deputy prime minister Nick Clegg, will give a speech later today providing more detail of the company’s plan to set up an ‘independent’ external oversight board to which people can appeal content decisions so that Facebook itself is not the sole entity making such decisions.

In the speech in Berlin, Clegg will apparently admit to Facebook having made mistakes. Albeit, it would be pretty awkward if he came on stage claiming Facebook is flawless and humanity needs to take a really long hard look at itself.

“I don’t think it’s in any way conceivable, and I don’t think it’s right, for private companies to set the rules of the road for something which is as profoundly important as how technology serves society,” Clegg told BBC Radio 4’s Today program this morning, discussing his talking points ahead of the speech. “In the end this is not something that big tech companies… can or should do on their own.

“I want to see… companies like Facebook play an increasingly mature role — not shunning regulation but advocating it in a sensible way.”

The idea of creating an oversight board for content moderation and appeals was previously floated by Facebook founder, Mark Zuckerberg. Though it raises way more questions than it resolves — not least how a board whose existence depends on the underlying commercial platform it is supposed to oversee can possibly be independent of that selfsame mothership; or how board appointees will be selected and recompensed; and who will choose the mix of individuals to ensure the board can reflect the full spectrum diversity of humanity that’s now using Facebook’s 2BN+ user global platform?

None of these questions were raised let alone addressed in this morning’s BBC Radio 4 interview with Clegg.

Asked by the interviewer whether Facebook will hand control of “some of these difficult decisions” to an outside body, Clegg said: “Absolutely. That’s exactly what it means. At the end of the day there is something quite uncomfortable about a private company making all these ethical adjudications on whether this bit of content stays up or this bit of content gets taken down.

“And in the really pivotal, difficult issues what we’re going to do — it’s analogous to a court — we’re setting up an independent oversight board where users and indeed Facebook will be able to refer to that board and say well what would you do? Would you take it down or keep it up? And then we will commit, right at the outset, to abide by whatever rulings that board makes.”

Speaking shortly afterwards on the same radio program, Damian Collins, who chairs a UK parliamentary committee that has called for Facebook to be investigated by the UK’s privacy and competition regulators, suggested the company is seeking to use self-serving self-regulation to evade wider responsibility for the problems its platform creates — arguing that what’s really needed are state-set broadcast-style regulations overseen by external bodies with statutory powers.

“They’re trying to pass on the responsibility,” he said of Facebook’s oversight board. “What they’re saying to parliaments and governments is well you make things illegal and we’ll obey your laws but other than that don’t expect us to exercise any judgement about how people use our services.

“We need as level of regulation beyond that as well. Ultimately we need — just as have in broadcasting — statutory regulation based on principles that we set, and an investigatory regulator that’s got the power to go in and investigate, which, under this board that Facebook is going to set up, this will still largely be dependent on Facebook agreeing what data and information it shares, setting the parameters for investigations. Where we need external bodies with statutory powers to be able to do this.”

Clegg’s speech later today is also slated to spin the idea that Facebook is suffering unfairly from a wider “techlash”.

Asked about that during the interview, the Facebook PR seized the opportunity to argue that if Western society imposes too stringent regulations on platforms and their use of personal data there’s a risk of “throw[ing] the baby out with the bathwater”, with Clegg smoothly reaching for the usual big tech talking points — claiming innovation would be “almost impossible” if there’s not enough of a data free for all, and the West risks being dominated by China, rather than friendly US giants.

By that logic we’re in a rights race to the bottom — thanks to the proliferation of technology-enabled global surveillance infrastructure, such as the one operated by Facebook’s business.

Clegg tried to pass all that off as merely ‘communications as usual’, making no reference to the scale of the pervasive personal data capture that Facebook’s business model depends upon, and instead arguing its business should be regulated in the same way society regulates “other forms of communication”. Funnily enough, though, your phone isn’t designed to record what you say the moment you plug it in…

“People plot crimes on telephones, they exchange emails that are designed to hurt people. If you hold up any mirror to humanity you will always see everything that is both beautiful and grotesque about human nature,” Clegg argued, seeking to manage expectations vis-a-vis what regulating Facebook should mean. “Our job — and this is where Facebook has a heavy responsibility and where we have to work in partnership with governments — is to minimize the bad and to maximize the good.”

He also said Facebook supports “new rules of the road” to ensure a “level playing field” for regulations related to privacy; election rules; the boundaries of hate speech vs free speech; and data portability —  making a push to flatten regulatory variation which is often, of course, based on societal, cultural and historical differences, as well as reflecting regional democratic priorities.

It’s not at all clear how any of that nuance would or could be factored into Facebook’s preferred universal global ‘moral’ code — which it’s here, via Clegg (a former European politician), leaning on regional governments to accept.

Instead of societies setting the rules they choose for platforms like Facebook, Facebook’s lobbying muscle is being flexed to make the case for a single generalized set of ‘standards’ which won’t overly get in the way of how it monetizes people’s data.

And if we don’t agree to its ‘Western’ style surveillance, the threat is we’ll be at the mercy of even lower Chinese standards…

“You’ve got this battle really for tech dominance between the United States and China,” said Clegg, reheating Zuckerberg’s senate pitch last year when the Facebook founder urged a trade off of privacy rights to allow Western companies to process people’s facial biometrics to not fall behind China. “In China there’s no compunction about how data is used, there’s no worry about privacy legislation, data protection and so on — we should not emulate what the Chinese are doing but we should keep our ability in Europe and North America to innovate and to use data proportionately and innovat[iv]ely.

“Otherwise if we deprive ourselves of that ability I can predict that within a relatively short period of time we will have tech domination from a country with wholly different sets of values to those that are shared in this country and elsewhere.”

What’s rather more likely is the emergence of discrete Internets where regions set their own standards — and indeed we’re already seeing signs of splinternets emerging.

Clegg even briefly brought this up — though it’s not clear why (and he avoided this point entirely) Europeans should fear the emergence of a regional digital ecosystem that bakes respect for human rights into digital technologies.

With European privacy rules also now setting global standards by influencing policy discussions elsewhere — including the US — Facebook’s nightmare is that higher standards than it wants to offer Internet users will become the new Western norm.

Collins made short work of Clegg’s techlash point, pointing out that if Facebook wants to win back users’ and society’s trust it should stop acting like it has everything to hide and actually accept public scrutiny.

“They’ve done this to themselves,” he said. “If they want redemption, if they want to try and wipe the slate clean for Mack Zuckerberg he should open himself up more. He should be prepared to answer more questions publicly about the data that they gather, whether other companies like Cambridge Analytica had access to it, the nature of the problem of disinformation on the platform. Instead they are incredibly defensive, incredibly secretive a lot of the time. And it arouses suspicion.

“I think people were quite surprised to discover the lengths to which people go to to gather data about us — even people who don’t even use Facebook. And that’s what’s made them suspicious. So they have to put their own house in order if they want to end this.”

Last year Collins’ DCMS committee repeatedly asked Zuckerberg to testify to its enquiry into online disinformation — and was repeatedly snubbed…

Collins also debunked an attempt by Clegg to claim there’s no evidence of any Russian meddling on Facebook’s platform targeting the UK’s 2016 EU referendum — pointing out that Facebook previously admitted to a small amount of Russian ad spending that did target the EU referendum, before making the wider point that it’s very difficult for anyone outside Facebook to know how its platform gets used/misused; Ads are just the tip of the political disinformation iceberg.

“It’s very difficult to investigate externally, because the key factors — like the use of tools like groups on Facebook, the use of inauthentic fake accounts boosting Russian content, there have been studies showing that’s still going on and was going on during the [US] parliamentary elections, there’s been no proper audit done during the referendum, and in fact when we first went to Facebook and said there’s evidence of what was going on in America in 2016, did this happen during the referendum as well, they said to us well we won’t look unless you can prove it happened,” he said.

“There’s certainly evidence of suspicious Russian activity during the referendum and elsewhere,” Collins added.

We asked Facebook for Clegg’s talking points for today’s speech but the company declined to share more detail ahead of time.

24 Jun 2019

Cartier, Bulgari and other luxury brands are flocking to WeChat

Not long ago, people in China would need to visit a posh, stylish mall for luxury shopping. That’s rapidly changing as high-end brands race to embrace digital channels, which aren’t just the obvious options of ecommerce platforms or brand-owned sites. In China, Louis Vuitton, Cartier, Bulgari and other luxury brands are now connecting and selling to millions of customers through WeChat .

Many know WeChat as China’s largest messaging app, and perhaps how it has over time morphed into an all-in-one ecosystem that lets one chat, run errands, hire services, and shop for an infinite list of things. Now the flurry of different products people find on WeChat may include a $10,000-plus purse.

The trend, according to Pablo Mauron, partner and managing director for China at Digital Luxury Group, a luxury marketing agency, reflects WeChat’s huge potential as an app tailored to transactions and services.

“I think WeChat is finally becoming what it’s supposed to be for luxury brands, which is not just a social media app,” Mauron told TechCrunch over a phone interview. “One [function] could be for customers to buy the product. Another could be for brands to build a loyalty program. Customers can pre-order a product or set up an appointment with the [offline] store.”

Indeed, according to a new report from market research firm Gartner L2, 60% of the fashion luxury brands it surveyed have at least one WeChat store, surging from just 36% in 2018.

Like Facebook, WeChat allows businesses to set up their online shops. The Chinese app now boasts more than 1 billion monthly users, but these people aren’t readily exploitable as customers. WeChat, unlike Alibaba, isn’t a marketplace and does not have a central search engine that indexes all the merchants selling over its platform.

A WeChat store is thus more comparable to a site store — it exists in the online universe but requires a lot of marketing before consumers stumble upon it. People may discover Wechat stores by scanning a QR code at a brick-and-mortar outlet, clicking on an ad embedded in an online article or through a slew of other creative ways that merchants devise.

Loyalty building

Despite the challenges in driving traffic, WeChat stores hold great appeal to brands for they offer a large toolbox for boosting customer loyalty, observed Mauron.

Shoppers can, for instance, talk to shop assistants over WeChat or check their membership status with just a few taps on the screen. It’s the social prowess of WeChat that separates it from entrenched ecommerce candidates like Alibaba and JD.com, which focus more on transactions. In a way, WeChat is not directly taking on Alibaba but playing a complementary role by providing customer relationship management (CRM) capabilities.

louis vuitton china

Screenshot of Louis Vuitton’s WeChat mini app for customers in China

A lot of these service-oriented features are powered by so-called “mini programs,” which are essentially stripped-down versions of native apps that run within a super app such as WeChat. As the Gartner L2 report points out, the rise in WeChat store adoption is linked to the increased use of mini programs by luxury brands.

A total of 69% the luxury brands in the sample group have at least one mini program. The adoption rate among fashion-focused luxury brands grew from 40% in 2018 to 70% in 2019, while the watch and jewelry category climbed from 36% to 62% over the same time period.

“WeChat is becoming the most appealing option for brands that want to think about CRM, ecommerce strategies or simply other value-added services without having to rely on external partners,” Mauron suggested, referring to Alibaba, JD and others that are traditionally the more popular choices for digital sales.

From social to shopping

While WeChat imposes certain rules on sellers, it’s built a reputation for being more laissez-faire compared to conventional ecommerce companies. For one, WeChat doesn’t (yet) take commissions from ecommerce transactions as online marketplaces normally do. As Mauron noted, “Tencent’s business model is not so much about making money out of the mini program transactions.”

On the other hand, WeChat’s e-wallet WeChat Pay benefits from processing transactions happening inside the chat app where Alibaba’s Alipay isn’t available.

That’s a crucial development because WeChat Pay has been for the most part associated with micropayments, thanks to a series of early campaigns that encouraged people to send cash-filled digital packets to each other, a tradition deep-rooted in a culture of exchanging cash during holidays.

Alipay, by contrast, is more extensively used for online shopping given its ties to Alibaba.

With the rise of mini app-enabled ecommerce, however, people are starting to use WeChat Pay for big-item purchases too.

“This allows WeChat to take market share in online payments. That’s the other big battle, which is between Alipay and WeChat Pay,” said Mauron.

As of January, Alipay had at least 1 billion monthly active users through its own app and mobile wallet partners around the world. WeChat doesn’t break out the user number for its e-wallet but said daily transaction volume passed 1 billion in 2018.