Month: June 2019

28 Jun 2019

Smartphone users are upgrading less frequently — will 5G help?

A new study out of NPD confirms what we already know about the state of the smartphone in 2019. People just aren’t upgrading as frequently. You can see the ramifications of this as companies like Apple and Google scramble to right the ship. Still, it’s nice to put some numbers to the abstract trend.

The analyst firm conducted a study of 3,650 U.S, based cellphone users earlier this year and found that a quarter held onto their previous device for more than three years. That represents an 18 percent increase from two years prior. Twenty-nine percent, meanwhile, have had their current device for two or more years.

Upgrade cycles have slowed, and you can thank higher prices, fewer exciting features and, frankly, better devices for that. In that last sense, at least, smartphone manufactures have kind of painted themselves into a corner on this one. Companies were surely aware that the whole thing was going to plateau and decline eventually, though many have been seemingly caught off-guard by how quickly and severely it has happened.

5G is a bright spot, of course. NPD says ~2/3rds of consumers are aware of the technology (a number that has almost certainly increased since the second half of last year, when the number was collected), and around one-third are “interested” in purchasing such a device. Promising, but I’m also “interested” in purchasing a major league baseball team, so maybe take that bit with a grain or two of salt.

We’re seeing the first few handsets trickle through from companies like Samsung, LG and Motorola, along with some spotty coverage around the U.S. Of course, that’s going to have to be much more ubiquitous before the technology becomes a tangible driver of new handset adoption.

5G is certainly destined to be the next major driving feature in the category — particularly with foldables currently in a somewhat depressing state of limbo. But if company are hoping it will turn around their fortunes entirely, I’ve got some of Trump’s 6G spectrum to sell them.

28 Jun 2019

Nielsen reports a record half a trillion on-demand music streams in U.S. so far this year

Music streaming services have already delivered a new high of half a trillion (507.7 billion) on-demand streams in the first half of 2019, according to Nielsen’s mid-year Music Report released this week. This record number — an increase of 31.6% over the first half of last year — was attributed to the success of singles and albums from Ariana Grande, Billie Eilish, Halsey, Khalid, BTS, Lil Nas X, and Bad Bunny, among other factors.

For example, the report also noted the outsized impact of TikTok and its global audience of 500 million monthly users.

“No emerging app helped break more songs in 2019 than TikTok,” Nielsen said.

It then pointed to various TikTok hits like 2019’s year’s most-consumed on-demand song, Nil Nas X’s “Old Town Road,” which saw 1.3 billion total on-demand streams year-to-date; as well as Ava Max’s “Sweet But Psycho,” which snagged 310 million on-demand streams (YTD); and Joji’s “Slow Dancing in the Dark,” with its 165 million on-demand streams (YTD).

Screen Shot 2019 06 28 at 10.32.29 AM

The report additionally broke down the record 507.7 billion on-demand streams into both on-demand audio streams — like those found on Spotify and Apple Music — and on-demand video streams, found it was the latter that was growing faster.

According to Nielsen data, video streaming grew 39.6% from 124.7 billion streams in the first half of 2018 to 174.2 billion streams in the first half of 2019.

Meanwhile, audio streams only grew 27.8% by comparison, going from 261.0 billion streams in the first half of last year to 333.5 billion streams in the first half of 2019.

Screen Shot 2019 06 28 at 10.23.30 AM

Further analysis by Music Business Worldwide found that, despite the record streaming numbers, annual growth in audio streaming is actually declining. This year’s 27.8% growth in audio streaming from H1 2018 to H1 2019 was a reduction from the 41.5% growth seen from H1 2017 to H1 2018. Or, more simply put, the annual growth in total U.S. audio streaming was over 4 billion streams smaller between the two reports.

Also trending downward are physical album sales (-15.1% to 32.5M); digital album sales (-24.4% to 19.1M); vinyl (-9.6% to 7.7M); and digital track sales (-25.6% to 153.1M).

The report made mention, too, of a few notable moments in music so far in 2019. One key finding, in terms of its relationship to technology companies, was Marshmello’s concert held in Fortnite. Nielsen found the event led to “major gains” in artist’s catalog, with 13,000 equivalent units earned during the debut week of “Marshmello: Fornite Extended Set” — the DJ/producer’s largest sales week to date. His album “Joytime II” in the week following his appearance in Fortnite saw a 316% increase in sales, as well.

The full report, which dives into individual artists and trends, is available here.

The data was calculated from Jan. 4, 2019, through June 20, 2019.

Image credit, top: Billy Ray Cyrus and Lil Nas X perform onstage at the 2019 BET Awards on June 23, 291 in LA, CA. Photo by Kevin Winter/Getty Images

28 Jun 2019

Formlabs is 3D printing parts of New Balance’s new sneakers

Sneakers have been a pretty effective means for helping 3D printing make the transition from prototype to manufacturing. Carbon in particular has found success with its Adidas partnership, printing out Futurecraft 4D shoes in limited quantities and scaling up considerably in the last few years.

Announced back in 2017, the New Balance x Formlabs collab has just yielded two new sneaker styles at considerably less than those Adidas. The shoes don’t really deliver the long promised extreme customization championed by 3D printing advocates, but they do bring some of the technology’s unique properties to a pair of (reasonably) mass market sneakers.

Image of New Balance team with Formlabs 3D printers

The heart of the collaboration is TripleCell, which is able to make a marginally (10 percent) lighter heel than standard injection molding, along with some solid cushioning support. The heel is printed in lattice structures using Formlabs’ proprietary Rebound Resin, which the company says is ever bit as durable as more traditional thermoplastic.

Here’s Formlabs CPO David Lakatos on the technology,

3D printing is changing how companies approach manufacturing, with this announcement New Balance is pioneering localized manufacturing. By eliminating the dependence on molds and direct printing for both prototyping and production, their team shifts from months to hours in the development and production cycles. We’re moving towards a world where design cycles are closing in on the whim of the consumer and it’s exciting to be on the frontlines of this with New Balance .”

The 990 Sport are available today through New Balance’s site at $185. The Fuel Cell Echo, which uses TripleCell In the forefoot of the sneaker, arrives in September for $175. The 990 are made in the U.S. and the Echos are assembled here.

28 Jun 2019

Global Entry is ‘vulnerable to exploitation,’ says government watchdog

Global Entry, used by millions of busy passengers traveling to the U.S., is “vulnerable” to criminals taking advantage of weaknesses in the system, according to a new report by a government watchdog.

The immigration and border check system, designed to allow vetted low-risk travelers expedited entry to the U.S., has more than six million people signed up to date. U.S. citizens and other foreign nationals from a list of cleared countries can apply, allowing passengers to skip the lines and check in with their passport and immigration documents at a kiosk instead.

Once the kiosk verifies the passenger, a border officer must verify the authenticity of the receipt, where the passenger is granted entry to the country or told they are subject to additional screening.

The system is relatively simple. “If low-risk status cannot be determined, the application must be denied.” High-risk passengers could include anyone with a conviction or linked to an investigation.

But a report by Homeland Security’s inspector general said a Customs and Border Protection (CBP) officer were not properly checking receipts to ensure they hadn’t been altered or falsified — potentially allowing non-cleared passengers into the U.S. without the proper inspection checks.

The redacted report, out Friday, said human error was largely to blame for the flaws in the system.

“During the airport arrival process CBP officers granted some Global Entry members expedited entry without verifying the authenticity of their kiosk receipts,” said the report.

“Unless CBP officers authenticate kiosk receipts, someone could use a fake receipt to enter the U.S.,” it read.

These receipts have two basic security features — a security check digit and a daily-rotating security code — which CBP officers use to visually check in order to process a passenger. Exactly how these codes work were largely redacted, but CBP supervisors complained that properly validating the codes were “cumbersome” and may extend passenger waiting times.

The watchdog found that CBP staff were often not even told the daily security code, preventing officers from properly checking if a passenger’s receipt was authentic. Worse, when the inspectors found the daily security code had been breached — such as when a receipt is discarded or posted on the internet — CBP staff “failed to take corrective action” when notified.

“A traveler with malicious intent could use a compromised daily security code to gain expedited entry into the U.S.,” wrote the report.

The report did not say how many ineligible “potentially high-risk” passengers are currently signed up to Global Entry, but said based on its tests at nine airports that as many as 5,700 Global Entry members may not have had their receipts properly authenticated at the border.

The watchdog said unless CBP redesigns the receipt authentication process, “travelers with malicious intent may gain expedited entry using a fraudulent receipt.”

In its response, CBP said it has “begun implementation” on fixing the six issues raised by the watchdog, with which the agency concurs.

28 Jun 2019

Italy stings Facebook with $1.1M fine for Cambridge Analytica data misuse

Italy’s data protection watchdog has issued Facebook with a €1 million (~$1.1M) fine for violations of local privacy law attached to the Cambridge Analytica data misuse scandal.

Last year it emerged that up to 87 million Facebook users had had their data siphoned out of the social media giant’s platform by an app developer working for the controversial (and now defunct) political data company, Cambridge Analytica.

The offences in question occurred prior to Europe’s tough new data protection framework, GDPR, coming into force — hence the relatively small size of the fine in this case, which has been calculated under Italy’s prior data protection regime. (Whereas fines under GDPR can scale as high as 4% of a company’s annual global turnover.)

We’ve reached out to Facebook for comment.

Last year the UK’s DPA similarly issued Facebook with a £500k penalty for the Cambridge Analytica breach, although Facebook is appealing.

The Italian regulator says 57 Italian Facebook users downloaded Dr Aleksandr Kogan‘s Thisisyourdigitallife quiz app, which was the app vehicle used to scoop up Facebook user data en masse — with a further 214,077 Italian users’ also having their personal information processed without their consent as a result of how the app could access data on each user’s Facebook friends.

In an earlier intervention in March, the Italian regulator challenged Facebook over the misuse of the data — and the company opted to pay a reduced amount of €52,000 in the hopes of settling the matter.

However the Italian DPA has decided that the scale of the violation of personal data and consent disqualifies the case for a reduced payment — so it has now issued Facebook with a €1M fine.

The sum takes into account, in addition to the size of the database, also the economic conditions of Facebook and the number of global and Italian users of the company,” it writes in a press release on its website [translated by Google Translate]. 

At the time of writing its full decision on the case was not available.

Late last year the Italian regulator fined Facebook €10M for misleading users over its sign in practices.

While, in 2017, it also slapped the company with a €3M penalty for a controversial decision to begin helping itself to WhatsApp users’ data — despite the latter’s prior claims that user data would never be shared with Facebook.

Going forward, where Facebook’s use (and potential misuse) of Europeans’ data is concerned, all eyes are on the Irish Data Protection Commission; aka its lead regulator in the region on account of the location of Facebook’s international HQ.

The Irish DPC has a full suite of open investigations into Facebook and Facebook-owned companies — covering major issues such as security breaches and questions over the legal basis it claims to process people’s data, among a number of other big tech related probes.

The watchdog has suggested decisions on some of this tech giant-related case-load could land this summer.

28 Jun 2019

Apple’s Sidecar just really *gets* me, you know?

With the rollout of Apple’s public beta software previews of macOS and the new iPadOS, I’ve finally been able to experience first-hand Sidecar, the feature that lets you use an iPad as an external display for your Mac. This is something I’ve been looking to make work since the day the iPad was released, and it’s finally here – and just about everything you could ask for.

These are beta software products, and I’ve definitely encountered a few bugs including my main Mac display blanking out and requiring a restart (that’s totally fine – betas by definition aren’t fully baked). But Sidecar is already a game-changer, and one that I will probably have a hard time living without in future – especially on the road.

Falling nicely into the ‘it just works’ Apple ethos, setting up Sidecar is incredibly simple. As long as your Mac is running macOS 10.15 Catalina, and your iPad is nearby, with Bluetooth and Wifi enabled, and running the iPadOS 13 beta, you just click on the AirPlay icon in your Mac’s Menu bar and it should show up as a display option.

Once you select your iPad, Sidecar just quickly displays an extended desktop from your Mac on the iOS device. It’s treated as a true external display in macOS System Preferences, so you can arrange it with other displays, mirror your Mac and more. The one thing you can’t do that you can do with traditional displays is change the resolution – Apple keeps things default here at 1366 x 1024, but it’s your iPad’s extremely useful native resolution (2732 x 2048, plus Retina pixel doubling for the first-generation 12.9-inch iPad Pro I’m using for testing), and it means there’s nothing weird going on with pixelated graphics or funky text.

Apple also turns on, by default, both a virtual Touchbar and a new feature called ‘Sidebar’ (yes, it’s a Sidebar for your Sidecar) that provides a number of useful commands including the ability to call up the dock, summon a virtual keyboard, quickly access the command key and more. This is particularly useful if you’re using the iPad on its own without the attached Mac, which can really come in handy when you’re deep in a drawing application and just looking to do quick things like undo, and Apple has a dedicated button in Sidebar for that, too.

sidecar2

The Touchbar is identical to Apple’s hardware Touchbar, which it includes on MacBook Pros, dating back to its introduction in 2016. The Touchbar has always been kind of a ‘meh’ feature, and some critics vocally prefer the entry-level 13-inch MacBook Pro model that does away with it altogether in favor of an actual hardware Escape key. And on the iPad using Sidecar, you also don’t get what might be its best feature – TouchID. But, if you’re using Sidecar specifically for photo or video editing, it’s amazing to be able to have it called up and sitting there ready to do, as an app-specific dedicated quick action toolbar.

Best of all, Apple made it possible to easily turn off both these features, and to do so quickly right from your Mac’s menu bar. That way, you get the full benefit of your big beautiful iPad display. Sidecar will remember this preference too for next time you connect.

Also new to macOS Catalina is a hover-over menu for the default window controls (those three ‘stoplight’ circular buttons that appear at the top left of any Mac app). Apple now provides options to either go fullscreen, tile your app left or right to take up 50% of your display, or, if you’re using Sidecar, to quickly move the app to Sidecar display or back.

[gallery ids="1850048,1850047"]

This quick shuffle action works great, and also respects your existing windows settings, so you can move an app window that you’ve resized manually to take up a quarter of your Mac’s display, and then when you send it back from the Sidecar iPad, it’ll return to where you had it originally in the same size and position. It’s definitely a nice step up in terms of native support for managing windows across multiple displays.

I’ve been using Sidecar wirelessly, though it also works wired and Apple has said there shouldn’t really be any performance disparity regardless of which way you go. So far, the wireless mode has exceeded all expectations, and any third-party competitors in terms of reliability and quality. It also works with the iPad Pro keyboard case, which makes for a fantastic input alternative if you happen to be closer to that one instead of the keyboard you’re using with your Mac.

Sidecar also really shines for digital artists, because it supports input via Apple Pencil immediately in apps that have already built in support for stylus input on Macs, including Adobe Photoshop and Affinity Photo. I’ve previously used a Wacom Cintiq 13HD with my Mac for this kind of thing, and I found Apple’s Sidecar to be an amazing alternative, not least of which because it’s wireless and even the 12.9 iPad Pro is such more portable than the Wacom device. Input seems to have very little response lag (like, it’s not even really perceivable), there’s no calibration required to make sure the Pencil lines up with the cursor on the screen, and as I mentioned above, combined with the Sidebar and dedicated ‘Undo’ button, it’s an artistic productivity machine.

The Pencil is the only means of touch input available with Sidecar, and that’s potentially going to be weird for users of other third-party display extender apps, most of which support full touch input for the extended Mac display they provide. Apple has intentionally left out finger-based touch input, because Mac just wasn’t designed for it, and in use that actually tracks with what my brain expects, so it probably won’t be too disorienting for most users.

When Apple introduced the 5K iMac, it left out one thing that had long been a mainstay of that all-in-on desktop – Target Display Mode. It was a sad day for people who like to maximize the life of their older devices. But they’ve more than made up for it with the introduction of Sidecar, which genuinely doubles the utility value of any modern iPad, provided you’re someone for whom additional screen real estate, with or without pressure-sensitive pen input, is something valuable. As someone who often works on the road and out of the office, Sidecar seems like something I personally designed in the room with Apple’s engineering team.

28 Jun 2019

SoftBank-backed startup cracks under pressure to scale

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Our esteemed co-host Alex Wilhelm was out again this week, but Kate Clark was in the studio with the lovely TechCrunch editor Connie Loizos and Canvas Ventures’ general partner Rebecca Lynn. The wonderful Chris Gates is on vacation this week, so TechCrunch’s Megan Rose Dickey sat in the producer’s chair. That made this episode extra special, as it was our first all-female group on the mics and behind the scenes.

First on the docket was news from StockX and Cameo. The buzzy startups both raised big rounds this week. The former, a sneaker resale marketplace, closed on $110 million at a $1 billion valuation, while the latter attracted $50 million at a reported $300 million valuation. Rebecca shared her thoughts on the rise of influencer marketing and how its made way for the success of mobile apps and websites like Cameo, which caters to celebrities and influencers.

Next up was Brandless. The direct-to-consumer business made headlines this week after a report from The Information outlined internal drama following a big investment from SoftBank in 2018. Amid the turmoil, detailed here and here, the business brought on a brand-new CEO, former Walmart chief operating officer John Rittenhouse. Whether he can meet SoftBank’s steep demands remains to be seen. The whole thing leaves us wondering: Do any of SoftBank’s portfolio companies regret taking the firm’s money?

Finally, we talked about WeWork’s latest acquisition. The co-working giant bought Waltz, a smartphone app and reader that allows users to enter different properties with a single credential. The deal will make it easier for WeWork’s enterprise clients, such as GE Healthcare and Microsoft, to manage their employees’ on-demand memberships to WeWork spaces. WeWork has been quite acquisitive in 2019. Will its M&A activity help it prepare for an IPO? And why the hell does it still have an all-male board? We have more questions than answers.

That’s all for now. See you next week.

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast, Pocket Casts, Downcast and all the casts.

28 Jun 2019

Facebook’s content oversight board plan is raising more questions than it answers

Facebook has produced a report summarizing feedback it’s taken in on its idea of establishing a content oversight board to help arbitrate on moderation decisions.

Aka the ‘supreme court of Facebook’ concept first discussed by founder Mark Zuckerberg last year, when he told Vox:

[O]ver the long term, what I’d really like to get to is an independent appeal. So maybe folks at Facebook make the first decision based on the community standards that are outlined, and then people can get a second opinion. You can imagine some sort of structure, almost like a Supreme Court, that is made up of independent folks who don’t work for Facebook, who ultimately make the final judgment call on what should be acceptable speech in a community that reflects the social norms and values of people all around the world.

Facebook has since suggested the oversight board will be up and running later this year. And has just wheeled out its global head of policy and spin for a European PR push to convince regional governments to give it room for self-regulation 2.0, rather than slapping it with broadcast-style regulations.

The latest report, which follows a draft charter unveiled in January, rounds up input fed to Facebook via six “in-depth” workshops and 22 roundtables convened by Facebook and held in locations of its choosing around the world.

In all, Facebook says the events were attended by 650+ people from 88 different countries — though it further qualifies that by saying it had “personal discussions” with more than 250 people and received more than 1,200 public consultation submissions.

“In each of these engagements, the questions outlined in the draft charter led to thoughtful discussions with global perspectives, pushing us to consider multiple angles for how this board could function and be designed,” Facebook writes.

It goes without saying that this input represents a minuscule fraction of the actual ‘population’ of Facebook’s eponymous platform, which now exceeds 2.2BN accounts (an unknown portion of which will be fake/duplicates), while its operations stretch to more than double the number of markets represented by individuals at the events.

The feedback exercise — as indeed the concept of the board itself — is inevitably an exercise in opinion abstraction. Which gives Facebook leeway to shape the output as it prefers. (And, indeed, the full report notes that “some found this public consultation ‘not nearly iterative enough, nor transparent enough, to provide any legitimacy’ to the process of creating the Board”.)

In a blog post providing its spin on the “global feedback and input”, Facebook culls three “general themes” it claims emerged from the various discussions and submissions — namely that: 

  • People want a board that exercises independent judgment — not judgment influenced by Facebook management, governments or third parties, writing: “The board will need a strong foundation for its decision-making, a set of higher-order principles — informed by free expression and international human rights law — that it can refer to when prioritizing values like safety and voice, privacy and equality”. Though the full report flags up the challenge of ensuring the sought for independence, and it’s not clear Facebook will be able to create a structure that can stand apart from its own company or indeed other lobbyists
  • How the board will select and hear cases, deliberate together, come to a decision and communicate its recommendations both to Facebook and the public are key considerations — though those vital details remain tbc. “In making its decisions, the board may need to consult experts with specific cultural knowledge, technical expertise and an understanding of content moderation,” Facebook suggests, implying the boundaries of the board are unlikely to be firmly fixed
  • People also want a board that’s “as diverse as the many people on Facebook and Instagram” — the problem being that’s clearly impossible, given the planet-spanning size of Facebook platforms. Another desire Facebook highlights is for the board to be able to encourage it to make “better, more transparent decisions”. The need for board decisions (and indeed decisions Facebook takes when setting up the board) to be transparent emerges as a major theme in the report. In terms of the board’s make-up, Facebook says it should comprise experts with different backgrounds, different disciplines, and different viewpoints — “who can all represent the interests of a global community”. Though there’s clearly going to be differing views on how or even whether that’s possible to achieve; and therefore questions over how a 40-odd member body, that will likely rarely sit in plenary, can plausibly act as an prism for Facebook’s user-base

The report is worth reading in full to get a sense of the broad spectrum of governance questions and conundrums Facebook is here wading into.

If, as it very much looks, this is a Facebook-configured exercise in blame spreading for the problems its platform hosts, the surface area for disagreement and dispute will clearly be massive — and from the company’s point of view that already looks like a win. Given how, since 2016, Facebook (and Zuckerberg) have been the conduit for so much public and political anger linked to the spreading and accelerating of harmful online content.

Differing opinions and will also provide cover for Facebook to justify starting “narrow”. Which it has said it will do with the board, aiming to have something up and running by the end of this year. But that just means it’ll be managing expectations of how little actual oversight will flow right from the very start.

The report also shows that Facebook’s claimed ‘listening ear’ for a “global perspective” has some very hard limits.

So while those involved in the consultation are reported to have repeatedly suggested the oversight board should not just be limited to content judgement — but should also be able to make binding decisions related to things like Facebook’s newsfeed algorithm or wider use of AI by the company — Facebook works to shut those suggestions down, underscoring the scope of the oversight will be limited to content.

“The subtitle of the Draft Charter — “An Oversight Board for Content Decisions” — made clear that this body would focus specifically on content. In this regard, Facebook has been relatively clear about the Board’s scope and remit,” it writes. “However, throughout the consultation period, interlocutors often proposed that the Board hear a wide range of controversial and emerging issues: newsfeed ranking, data privacy, issues of local law, artificial intelligence, advertising policies, and so on.”

It goes on to admit that “the question persisted: should the Board be restricted to content decisions only, without much real influence over policy?” — before picking a selection of responses that appear intended to fuzz the issue, allowing it to position itself as seeking a reasoned middle ground.

“In the end, balance will be needed; Facebook will need to resolve tensions between minimalist and maximalist visions of the Board,” it concludes. “Above all, it will have to demonstrate that the Oversight Board — as an enterprise worth doing — adds value, is relevant, and represents a step forward from content governance as it stands today.”

Sample cases the report suggests the board could review — as suggested by participants in Facebook’s consultation — include:

  • A user shared a list of men working in academia, who were accused of engaging in inappropriate behavior and/or abuse, including unwanted sexual advances;
  • A Page that commonly uses memes and other forms of satire shared posts that used discriminatory remarks to describe a particular demographic group in India;
  • A candidate for office made strong, disparaging remarks to an unknown passerby regarding their gender identity and livestreamed the interaction. Other users reported this due to safety concerns for the latter person;
  • A government official suggested that a local minority group needed to be cautious, comparing that group’s behavior to that of other groups that have faced genocide

So, again, it’s easy to see the kinds of controversies and indeed criticisms that individuals sitting on Facebook’s board will be opening themselves up to — whichever way their decisions fall.

A content review board that will inevitably remain linked to (if not also reimbursed via) the company that establishes it, and will not be granted powers to set wider Facebook policy — but will instead be tasked with facing the impossible of trying to please all of the Facebook users (and critics) all of the time — does certainly risk looking like Facebook’s stooge; a conduit for channeling dirty and political content problems that have the potential to go viral and threaten its continued ability to monetize the stuff that’s uploaded to its platforms.

Facebook’s preferred choice of phrase to describe its users — “global community” — is a tellingly flat one in this regard.

The company conspicuously avoids talk of communities, pluralinstead the closest we get here is a claim that its selective consultation exercise is “ensuring a global perspective”, as if a singular essence can somehow be distilled from a non-representative sample of human opinion — when in fact the stuff that flows across its platforms is quite the opposite; multitudes of perspectives from individuals and communities whose shared use of Facebook does not an emergent ‘global community’ make.

This is why Facebook has struggled to impose a single set of ‘community standards’ across a platform that spans so many contexts; a one-size-fits all approach very clearly doesn’t fit.

Yet it’s not at all clear how Facebook creating yet another layer of content review changes anything much for that challenge — unless the oversight body is mostly intended to act as a human shield for the company itself, putting a firewall between it and certain highly controversial content; aka Facebook’s supreme court of taking the blame on its behalf.

Just one of the difficult content moderation issues embedded in the businesses of sociotechnical, planet-spanning social media platform giants like Facebook — hate speech — defies a top-down ‘global’ fix.

As Evelyn Douek wrote last year vis-a-via hate speech on the Lawfare blog, after Zuckerberg had floated the idea of a governance structure for online speech: “Even if it were possible to draw clear jurisdictional lines and create robust rules for what constitutes hate speech in countries across the globe, this is only the beginning of the problem: within each jurisdiction, hate speech is deeply context-dependent… This context dependence presents a practically insuperable problem for a platform with over 2 billion users uploading vast amounts of material every second.”

A cynic would say Facebook knows it can’t fix planet-scale content moderation and still turn a profit. So it needs a way to distract attention and shift blame.

If it can get enough outsiders to buy into its oversight board — allowing it to pass off the oxymoron of “global governance”, via whatever self-styled structure it allows to emerge from these self-regulatory seeds — the company’s hope must be that the device also works as a bolster against political pressure.

Both over particular problem/controversial content, and also as a vehicle to shrink the space for governments to regulate Facebook.

In a video discussion also embedded in Facebook’s blog post — in which Zuckerberg couches the oversight board project as “a big experiment that we hope can pioneer a new model for the governance of speech on the Internet” — the Facebook founder also makes reference to calls he’s made for more regulation of the Internet. As he does so he immediately qualifies the statement by blending state regulation with industry self-regulation — saying the kind of regulation he’s asking for is “in some cases by democratic process, in other cases through independent industry process”.

So Zuckerberg is making a clear pitch to position Facebook as above the rule of nation state law — and setting up a “global governance” layer is the self-serving vehicle of choice for the company to try and overtake democracy.

Even if Facebook’s oversight board’s structure is so cunningly fashioned as to present to a rationally minded individual as, in some senses, ‘independent’ from Facebook, its entire being and function will remain dependent on Facebook’s continued existence.

Whereas if individual markets impose their own statutory regulations on Internet platforms, based on democratic and societal principles, Facebook will have no control over the rules they impose, direct or otherwise — with uncontrolled compliance costs falling on its business.

It’s easy to see which model sits most easily with Zuckerberg the businessman — a man who has also demonstrated he will not be held personally accountable for what happens on his platform.

Not when he’s asked by one (non-US) parliament, nor even by representatives from nine parliaments — all keen to discuss the societal fallouts of political disinformation and hate speech spread and accelerated on Facebook. Turns out that’s not the kind of global perspective Facebook wants to sell you.

28 Jun 2019

Google is building a new private subsea cable between Portugal and South Africa

Google today announced Equiano, a new private subsea cable that will connect Portugal and South Africa. The cable will be built by Alcatel Submarine Networks and the first phase of the project is scheduled for completion in 2021. In April, the WSJ first reported the company’s plans for this cable.

This is the company’s third private cable after Dunant between Europe and the U.S., and Curie, which spans between the U.S. and Chile. In addition, Google is also a partner in a number of cable consortiums that operate cables that span the globe.

Cloud Map with Equiano FINAL

The company notes that Equiano, which was named after Nigerian writer and abolitionist Olaudah Equiano, will be the first subsea cable that uses optical switching at the fiber pair level. This makes it easier to allocate capacity as needed.

Google also stresses that this new cable is able to carry about 20 times the capacity of the last cable that was built to serve this region. The cable will feature numerous branching units that it can then use to connect lines to other countries along the way. The first branch will connect the cable to Lagos, Nigeria. Other branches will follow in the future.

Unlike some of its competitors, Google does not currently operate any data centers on the African continent and has yet to share any plans to do so. This makes fast connections to Europe even more of a necessity, though it’s also possible that Google is putting this new cable in place to prepare for a data center launch in South Africa, for example.

 

 

28 Jun 2019

UK fintech Jaja pays $671M in cash to acquire the Bank of Ireland’s UK credit card business

Fintech has been one of the bigger stories of the UK startup world — due in no small part to the fact that its capital, London, is also one of the world’s major financial centers. Today, one of those startups made a big splash by buying an incumbent business, and taking on an equity investment alongside that, to scale up its position in the market.

Jaja, a mobile-first business that provides digital and physical credit cards and other financing services, today announced that it will be acquiring the UK credit card accounts for an initial cash consideration of £530 million (or $671 million at current rates). It will also become the consumer credit card issuer for the Bank’s UK business and the AA. At the same time it’s also getting an equity investment of £20 million in its own business.

“This announcement with Bank of Ireland UK is an exciting and important development in Jaja’s journey and is part of our strategy to create partnerships that will help more people embrace a simpler way of managing credit,” said Neil Radley, CEO of Jaja Finance, in a statement. “Our vision is to enable a new generation of mobile-first credit card products with unrivalled functionality, service and security. We’re excited to be welcoming Bank of Ireland UK customers as cardholders.”

The Bank of Ireland’s UK credit business includes a number of key accounts covering the AA (UK’s Automobile Association), the Post Office, as well as a card branded Bank of Ireland itself. (It excludes the bank’s commercial card business in the Republic of Ireland.)

The Bank had put the business up for sale some time ago as part of a bigger strategy to divest of its capital-intensive, competitive operations in a push to grow profitability by improving its loans and mortgages business: amid that, the Bank’s wider UK business has been a challenge for it, with investors going so far as to value the UK business at zero earlier this month.

“Jaja is an innovative company which shares our commitment to delivering outstanding customer service. We are proud to partner with them and bring their next generation credit card to customers across the UK,” said Bank of Ireland UK CEO Des Crowley in a statement. “Today’s announcement demonstrates the Bank’s continued progress in delivering against its strategic targets for growth and transformation to 2021, as set out at its Investor Day in June 2018.”

Jaja’s deal is being done in partnership with KKR, Centerbridge Partners and other unnamed investors, who are helping finance the acquisition and are also putting £20 million ($25 million) of equity investment into Jaja (pronounced “yah-yah”) alongside it. Prior to this, Jaja had raised about about $16 million, including about £3 million by way of the Seedrs crowdfunding platform.

The company is not disclosing its valuation amid this $671 million purchase.

A spokesperson for Jaja said the startup is not releasing any numbers today that point to how much the company’s current services are being used. The company, which is today active only in the UK, has taken the route of keeping a waitlist to onboard new users, and it was reported to have some 6,000 people on it back in February just ahead of the Jaja launching its cards.

The company also has a deal with Asda, the UK business of Walmart, to provide financing at the point of sale for its online storefront George.com (an Amazon-type everything store akin to Walmart.com). Given that Jaja has up to now not operated on a massive scale — even if it took on its whole waitlist, that would only number 6,000 customers, for example — it’s likely that this latest acquisition will be adding a sizeable number of users, and key brands, into its stable in one fell swoop.

Jaja was founded by Jostein Svendsen, Kyrre Riksen and Per Elvebakk — London-based Norwegian entrepreneurs who have previously found and sold other financial and tech startups (Svenden, for example, sold a previous company to American Express) — and is currently led by CEO Neil Radley, who had previously been the MD for Barclaycard in Western Europe.

Its key mission has been to bring a more modern approach to the world of credit and credit cards. That in itself is not hugely unique — it is essentially the purpose of all consumer-facing credit startups today — but given that the vast majority of credit services, and transactions, are still handled through traditional channels, it’s disruptive nonetheless.

The company describes itself as digital, mobile-first business, which in its case means that you apply for and initiate services through the company’s app — using your phone’s camera to snap your ID and an AI-based algorithm that takes in other data about you to provide what Jaja describes as “near instant” credit decisions within minutes. Jaja provides physical cards (Visa is its credit card partner), but it also allows people to use the cards through their digital wallets immediately. The company does not change for foreign currency exchanges and offers free cash withdrawal fees, with an annual percentage rate (APR) of 18.9%. And in keeping with what is now par for the course for challenger fintech services, you can use the app to get real-time updates on your account, modify repayments and more.

On that note, in addition to the challenge of onboarding a number of established brands and a large number of users on to a new platform that up to now has been adding users intentionally slowly, it will be interesting to see how and if Jaja can inject more modern infrastructure into those established operations, and a customer base that’s used to the traditional way of doing things. For now, it says that customers of those services will continue to use them as they have done.