Big Tech targeted by US and EU in draft memo ahead of tech and trade meeting

The move will be among announcements on tech, climate, trade and supply chains likely to be made at a US-EU Trade & Technology Council. (File/AFP)
The move will be among announcements on tech, climate, trade and supply chains likely to be made at a US-EU Trade & Technology Council. (File/AFP)
Short Url
Updated 23 September 2021

Big Tech targeted by US and EU in draft memo ahead of tech and trade meeting

The move will be among announcements on tech, climate, trade and supply chains likely to be made at a US-EU Trade & Technology Council. (File/AFP)
  • The US and the EU plan to take a more unified approach to limit the growing market power of Big Tech companies

WASHINGTON: The United States and European Union plan to take a more unified approach to limit the growing market power of Big Tech companies, according to a draft memo seen by Reuters.
The move will be among announcements on tech, climate, trade and supply chains likely to be made at a US-EU Trade & Technology Council meeting on Sept. 29 in Pittsburgh.
With the US and Europe trying to restrain the growing power of American tech giants such as Alphabet’s Google , Facebook, Apple and Amazonom Inc. , such cooperation has become critically important for regulators on both sides of the Atlantic — and would make it harder for the US tech industry to fight new rules.
This month, the White House announced that the council would meet for the first time on Sept. 29 in Pittsburgh. US Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo, US Trade Representative Katherine Tai and the European Union’s trade chief Valdis Dombrovskis are scheduled to attend along with European Commissioner for Competition Margrethe Vestager.
The White House, which is coordinating with different agencies on the meeting, declined to comment on the memo. Apple, Facebook, Amazon and Google did not immediately respond to requests for comment.
The council has 10 working groups for areas such as strengthening trade, economic relations and shared democratic values, according to the draft memo.
The group focused on tech company regulation will “exchange information on our respective approaches to technology platform governance, seeking convergence where feasible,” the memo says.
There are many examples where the two continents could cooperate more. Google, which faces several antitrust lawsuits in the US related to its advertising business, also faces a wide-ranging investigation related to ad technology in the EU.
“We have identified common issues of concern around gatekeeper power by major platforms and the responsibility of online intermediaries,” the memo says, adding that more can be done to combat misinformation.
“This includes in particular the responsibility of online intermediaries to safeguard democratic processes from the impact of their business activities. Areas of common ground... include content moderation and fair competition,” the memo said.
The group will tackle areas such as hate speech, algorithmic amplification and data access for researchers, the memo says.
The council’s climate and clean tech group will work to identify trade and investment opportunities in low- and zero-carbon technologies and products, according to the memo. The supply chain working group will focus on securing supplies of pharmaceuticals, critical minerals and clean energy.
The council will also work to address the shortage of semiconductor chips in a way that is “balanced and of equal interest for both parties” and will avoid a “subsidy race.”
On Wednesday, Reuters reported that European Union ambassadors have postponed discussions to prepare for the meeting in protest of Washington’s submarine agreement with Australia at France’s expense.
A spokesperson for the White House’s National Security Council said preparations for the meeting were continuing.
Several tech trade groups in Washington said the industry does not want the European approach to digital regulation to be adopted in the United States.
“The risk is that the European side will press the United States to harmonize its regulations with the EU by taking a precautionary approach... which would skewer America’s leading tech companies,” said Robert Atkinson, president of the Information Technology & Innovation Foundation, a tech think tank based in Washington.
“We shouldn’t do that, nor do we need to. Our interests are broadly aligned and compatible, particularly when it comes to China,” Atkinson said.


Report: 71 percent of parents in Saudi Arabia use Snapchat

Report: 71 percent of parents in Saudi Arabia use Snapchat
Updated 21 October 2021

Report: 71 percent of parents in Saudi Arabia use Snapchat

Report: 71 percent of parents in Saudi Arabia use Snapchat
  • New study by Kantar and Snap reveals that Snapchat is popular among both parents and younger people
  • Snapchat plays major role in advertising, marketing for older audiences

DUBAI: Snapchat, which has a monthly addressable reach of 19.5 million in Saudi Arabia, is not only popular with younger audiences in the Kingdom, but also with parents, according to a recent study conducted by Kantar and Snap.

The study has found that 71 percent of parents in Saudi Arabia now use Snapchat and that advertising on the platform plays an influential role in their purchase decisions. 

Among these parents, almost 90 percent feel positive about the advertising they see on Snapchat across product categories, and over 80 percent said that this advertising influences their purchase decisions.

More than 90 percent take action after seeing an ad that interests them. The actions include clicking on an ad, reading product reviews online, or discussing with friends and family members.

Snapchat parents are also quite democratic in including other family members when making purchasing decisions. A majority (68 percent) of Snapchat parents claim that their children influence their purchase decisions in some way, and most parents with teenage or adult children rely on their kids to make purchases on behalf of the household.

Parents with teenage children allow the teens to shop for the family regularly for technology products (61 percent), mobile apps and streaming services (73 percent), and household goods (47 percent).

“Rather than a fragmented advertising model that caters to different age groups through different mediums, Snapchat delivers great value by reaching parents, alongside their teenage and adult children, on a single platform,” said Abdulla Alhammadi, regional business lead at Snap Inc.           

FAST FACTS

• 71 percent of parents in Saudi Arabia are on Snapchat.

• Over 80 percent of parents on Snapchat say that advertising on the platform influences their purchase decisions.

• Almost 90 percent of parents on Snapchat feel positive about the advertising that they see.

• More than 90 percent of parents on Snapchat take action after seeing an ad that interests them.

• Parents with teenage children allow the teens to shop for the family regularly for technology products (61 percent), mobile apps and streaming services (73 percent), and household goods (47 percent).


Senator asks Facebook CEO to testify on Instagram and kids

Senator asks Facebook CEO to testify on Instagram and kids
Updated 21 October 2021

Senator asks Facebook CEO to testify on Instagram and kids

Senator asks Facebook CEO to testify on Instagram and kids
  • US senator asks Facebook CEO Mark Zuckerberg to testify on Instagram’s effects on children
  • The Federal Trade Commission has also filed a major antitrust lawsuit against Facebook
WASHINGTON: The senator leading a probe of Facebook’s Instagram and its impact on young people is asking Facebook CEO Mark Zuckerberg to testify before the panel that has heard far-reaching criticisms from a former employee of the company.
Sen. Richard Blumenthal, D-Connecticut, who heads the Senate Commerce subcommittee on consumer protection, called in a sharply worded letter Wednesday for the Facebook founder to testify on Instagram’s effects on children.
“Parents across America are deeply disturbed by ongoing reports that Facebook knows that Instagram can cause destructive and lasting harms to many teens and children, especially to their mental health and wellbeing,” Blumenthal said in the letter addressed to Zuckerberg. “Those parents, and the twenty million teens that use your app, have a right to know the truth about the safety of Instagram.”
In the wake of former Facebook product manager Frances Haugen’s testimony early this month, Blumenthal told Zuckerberg, “Facebook representatives, including yourself, have doubled down on evasive answers, keeping hidden several reports on teen health, offering noncommittal and vague plans for action at an unspecified time down the road, and even turning to personal attacks on Ms. Haugen.”
Blumenthal did offer, however, that either Zuckerberg or the head of Instagram, Adam Mosseri, could appear before his committee.
“It is urgent and necessary for you or Mr. Adam Mosseri to testify to set the record straight and provide members of Congress and parents with a plan on how you are going to protect our kids,” he told Zuckerberg.
A spokesman for Facebook, based in Menlo Park, California, confirmed receipt of Blumenthal’s letter but declined any comment.
As public discomfort and scrutiny of the social network giant has grown in recent weeks, the focus has homed in on Zuckerberg, who controls more than 50 percent of Facebook’s voting shares.
Haugen, who buttressed her statements with tens of thousands of pages of internal research documents she secretly copied before leaving her job in the company’s civic integrity unit, accused Facebook of prioritizing profit over safety and being dishonest in its public fight against hate and misinformation.
“In the end, the buck stops with Mark,” Haugen said in her testimony. “There is no one currently holding Mark accountable but himself.”
On Tuesday, the attorney general of the District of Columbia added Zuckerberg as a defendant in a 2018 lawsuit he filed against Facebook on the privacy of users’ personal data. The action by Attorney General Karl Racine seeks to hold Zuckerberg personally liable in addition to Facebook in the case involving data-mining firm Cambridge Analytica, which gathered details on as many as 87 million Facebook users without their permission.
The Facebook users’ data is alleged to have been used to manipulate the 2016 presidential election.
“These allegations are as meritless today as they were more than three years ago, when the District filed its complaint. We will continue to defend ourselves vigorously and focus on the facts,” Facebook spokesman Andy Stone said.
Racine’s office said it was the first time a US regulator specifically named Zuckerberg in a legal action. He and the company could face millions of dollars in penalties if violations of law were found.
The Federal Trade Commission has filed a major antitrust lawsuit against Facebook, and various state attorneys general also have taken legal action against the company.
“Based on the evidence we gathered in this case over the past two years ... it’s clear Mr. Zuckerberg knowingly and actively participated in each decision that led to Cambridge Analytica’s mass collection of Facebook user data, and Facebook’s misrepresentations to users about how secure their data was,” Racine said in a statement. “The evidence further demonstrates that Mr. Zuckerberg also participated in misleading the public and government officials about Facebook’s role.”

Changing Facebook’s name will not deter lawmaker or regulatory scrutiny, experts say

Facebook will continue to confront the same pressures even after a rebrand, the experts said. (File/AFP)
Facebook will continue to confront the same pressures even after a rebrand, the experts said. (File/AFP)
Updated 21 October 2021

Changing Facebook’s name will not deter lawmaker or regulatory scrutiny, experts say

Facebook will continue to confront the same pressures even after a rebrand, the experts said. (File/AFP)
  • Changing Facebook's name is unlikely to enable the tech giant to distance itself from public scrutiny
  • This comes after a whistleblower leaked thousands of internal documents that showed it contributed to increased polarization online

Renaming Facebook Inc. is unlikely to enable the tech giant to distance itself from regulatory and public scrutiny around the potential harms caused by its social media apps, marketing and branding experts told Reuters.
Tech publication The Verge reported on Tuesday that the California-based firm is planning to change to reflect that as well as owning the social media platform that made it a global household name, it also now includes other thriving businesses like Instagram, WhatsApp and Oculus.
The company declined to comment regarding the report on the possible rebranding. It did not immediately respond to a request for comment for this story.
Facebook is battling intense scrutiny after a whistleblower leaked thousands of internal documents that showed it contributed to increased polarization online when it made changes to its content algorithm, failed to take steps to reduce vaccine hesitancy, and was aware that popular social media app Instagram harmed the mental health of teenage girls.
The US Senate held a hearing earlier this month into the effect of Instagram on young users.
“Legislators and politicians are sufficiently smart to not be fooled by a rebranding,” said James Cordwell, an Internet analyst at Atlantic Equities.
Renaming can be an effective strategy to allow subsidiary brands to maintain their own reputations, said Marisa Mulvihill, head of brand and activation at Prophet, a branding and marketing consultancy. But the media and regulators “are not going to stop investigating or creating reforms just because you rebranded,” she added.
The new parent company name could reflect Facebook’s focus on building the ‘metaverse,’ The Verge reported, referring to a proposed digital world where people can use different devices to move and communicate in a virtual environment.
It could also prevent a possible negative perception around the Facebook name from affecting WhatsApp, the messaging app used by nearly 2 billion people globally, and Oculus, its virtual reality brand, experts said.
According to Prophet’s annual ranking, Facebook’s brand relevance to US consumers has dropped “precipitously” over the past several years, Mulvihill said.
“What you don’t want is for that to proliferate and have a negative halo effect on other parts of your business,” said Deborah Stafford-Watson, head of strategy at brand consultancy firm Elmwood.
Other major companies have taken similar steps. Google reorganized under a holding company called Alphabet in 2015, as the company best known for Internet searches increasingly pursued ambitions like autonomous driving technology.
In 2003, cigarette seller Philip Morris rebranded itself as Altria, at a time when the company owned Kraft Foods. It later spun off the food division.
While the move to rebrand as Altria didn’t remove the negative connotations of tobacco from the cigarette brands itself, it did help to limit the effects on Kraft, Mulvihill said.
Facebook will continue to confront the same pressures even after a rebrand, the experts said.
“I don’t think it’s going to help Facebook mitigate regulators’ scrutiny or the general public’s skepticism, if not distrust,” said Natasha Jen, a partner at Pentagram, a design studio that does advertising and communication work. “Trust is something you need to earn.”


Taliban strike journalists at Kabul women’s rights protest

Taliban strike journalists at Kabul women’s rights protest
Updated 21 October 2021

Taliban strike journalists at Kabul women’s rights protest

Taliban strike journalists at Kabul women’s rights protest
  • One foreign journalist was struck with the butt of a rifle by one Taliban fighter
  • Afghans have staged street protests across the country since the Taliban returned to power

KABUL: The Taliban struck several journalists to prevent media coverage of a women’s rights protest in Kabul on Thursday.
A group of about 20 women marched from near the ministry of education to the ministry of finance in the Afghan capital.
Wearing colorful headscarves they chanted slogans including: “Don’t politicize education,” as traffic drove by shortly before 10 am.
The women held placards saying: “We don’t have the rights to study and work,” and” “Joblessness, poverty, hunger,” as they walked with their arms in the air.
The Taliban authorities allowed the women to walk freely for around an hour and a half, AFP journalists saw.
However, one foreign journalist was struck with the butt of a rifle by one Taliban fighter, who swore and kicked the photographer in the back as another punched him.
At least two more journalists were hit as they scattered, pursued by Taliban fighters swinging fists and launching kicks.
Zahra Mohammadi, one of the protest organizers, said the women were marching despite the risks they face.
“The situation is that the Taliban don’t respect anything: not journalists — foreign and local — or women,” she said.
“The schools must reopen to girls. But the Taliban took this right from us.”
High school girls have been blocked from returning to classes for more than a month, while many women have been banned from returning to work since the Taliban seized power in mid-August.
“My message to all girls and women is this: ‘Don’t be afraid of the Taliban, even if your family doesn’t allow you to leave your home. Don’t be afraid. Go out, make sacrifices, fight for your rights’,” Mohammadi said.
“We have to make this sacrifice so that the next generation will be in peace.”
Children walked alongside the protest in downtown Kabul, although it was unclear if they were part of the organized group.
Some Taliban fighters policing the march wore full camouflaged combat gear, including body armor, helmets and knee pads, while others were wearing traditional Afghan clothing.
Their weapons included US-made M16 assault rifles and AK-47s.
Unthinkable under the hard-line Islamist group’s last rule in the 1990s, Afghans have staged street protests across the country since the Taliban returned to power, sometimes with several hundred people and many with women at forefront.
But a ban on unauthorized demonstrations has meant protests against Afghanistan’s new masters have dwindled.


Trump announces plans to launch new social network ‘TRUTH Social’

Trump announces plans to launch new social network ‘TRUTH Social’
Updated 21 October 2021

Trump announces plans to launch new social network ‘TRUTH Social’

Trump announces plans to launch new social network ‘TRUTH Social’

WASHINGTON: Former US president Donald Trump announced plans Wednesday to launch his own social networking platform called “TRUTH Social,” which is expected to begin its beta launch for “invited guests” next month.
The long-awaited platform will be owned by Trump Media & Technology Group (TMTG), which also intends to launch a subscription video on-demand service that will feature “non-woke” entertainment programming, the group said in a statement.
“I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech,” Trump, who was banned from Twitter and Facebook in the wake of the Capitol insurrection carried out by his supporters on January 6 this year, was quoted as saying in the statement.
“We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced. This is unacceptable,” he continued.
The Trump Media & Technology Group will merge with blank check company Digital Acquisition Corp. to make TMTG a publicly-listed company, the statement said.
“The transaction values Trump Media & Technology Group at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination,” it stated.
Ever since he was banned from the world’s dominant social networks as punishment for stirring up the mob that ransacked Congress on January 6, Trump has been looking for ways to reclaim his Internet platform.
In May he launched a blog called “From the Desk of Donald J. Trump,” which was touted as a a major new outlet.
But Trump, who was also banned from Instagram, YouTube and Snapchat in the wake of the Capitol mayhem, canceled the blog just a month later.
Former Trump aide Jason Miller launched a social network called Gettr earlier this year, but the former president has not yet joined it.