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EU

EU Opens Probe of TikTok Lite, Citing Concerns About Addictive Design (techcrunch.com) 24

The European Union has opened a second formal investigation into TikTok under its Digital Services Act (DSA), an online governance and content moderation framework. The investigation centers around TikTok Lite's "Task and Reward" feature that may harm mental health, especially among minors, by promoting addictive behavior. TechCrunch reports: The Commission also said it's minded to impose interim measures that could force the company to suspend access to the TikTok Lite app in the EU while it investigates concerns the app poses mental health risks to users. Although the EU has given TikTok until April 24 to argue against the measure -- meaning the app remains accessible for now. Penalties for confirmed violations of the DSA can reach up to 6% of global annual turnover. So ByeDance, TikTok's parent, could face hefty fines if EU enforcers do end up deciding it has broken the law.

The EU's first TikTok probe covers multiple issues including the protection of minors, advertising transparency, data access for researchers, and the risk management of addictive design and harmful content. Hence it said the latest investigation will specifically focus on TikTok Lite, a version of the video sharing platform which launched earlier this month in France and Spain and includes a mechanism that allows users to earn points for doing things like watching or liking videos. Points earned through TikTok Lite can be exchanged for things like Amazon gift vouchers or TikTok's own digital currency for gifting to creators. The Commission is worried this so-called "task and reward" feature could negatively impact the mental health of young users by "stimulating addictive behavior."

The EU wrote that the second probe will focus on TikTok's compliance with the DSA obligation to conduct and submit a risk assessment report prior to the launch of the "Task and Reward Lite" program, with a particular focus on negative effects on mental health, including minors' mental health. It also said it will look into measures taken by TikTok to mitigate those risks. In a press release announcing the action, the EU said ByeDance failed to produce a risk assessment about the feature which it had asked to see last week -- when it gave the company 24 hours to produce the document. Since it failed to submit the risk assessment paperwork on April 18 the Commission wrote that it suspects a "prima facie infringement of the DSA."

EU

EU: Meta Cannot Rely On 'Pay Or Okay' (europa.eu) 108

The EU's European Data Protection Board oversees its privacy-protecting GDPR policies.

Earlier this week, TechCrunch reported that nearly two dozen civil society groups and nonprofits wrote the Board an open letter "urging it not to endorse a strategy used by Meta that they say is intended to bypass the EU's privacy protections for commercial gain."

Meta's strategy is sometimes called "Pay or Okay," writes long-time Slashdot reader AmiMoJo : Meta offers users a choice: "consent" to tracking, or pay over €250/year to use its sites without invasive monetization of personal data.
Meta prefers the phrase "subsccription for no ads," and told TechCrunch it makes them compliant with EU laws: A raft of complaints have been filed against Meta's implementation of the pay-or-consent tactic since it launched the "no ads" subscription offer last fall. Additionally, in a notable step last month, the European Union opened a formal investigation into Meta's tactic, seeking to find whether it breaches obligations that apply to Facebook and Instagram under the competition-focused Digital Markets Act. That probe remains ongoing.
The letter to the Board called for "robust protections that prioritize data subjects' agency and control over their information." And Wednesday the board issued its first decision:

"[I]n most cases, it will not be possible for [social media services] to comply with the requirements for valid consent, if they confront users only with a choice between consenting to processing of personal data for behavioural advertising purposes and paying a fee." The EDPB considers that offering only a paid alternative to services which involve the processing of personal data for behavioural advertising purposes should not be the default way forward for controllers. When developing alternatives, large online platforms should consider providing individuals with an 'equivalent alternative' that does not entail the payment of a fee. If controllers do opt to charge a fee for access to the 'equivalent alternative', they should give significant consideration to offering an additional alternative. This free alternative should be without behavioural advertising, e.g. with a form of advertising involving the processing of less or no personal data.
EDPB Chair, Anu Talus added: "Controllers should take care at all times to avoid transforming the fundamental right to data protection into a feature that individuals have to pay to enjoy."
Businesses

Netflix Blows Past Earnings Estimates As Subscribers Jump 16% (cnbc.com) 35

Netflix on Thursday reported a 16% rise in memberships in the first quarter, reaching 269.6 million, beating Wall Street expectations. Starting next year, the company will no longer provide quarterly membership numbers or average revenue per user starting next year. CNBC reports: "As we've noted in previous letters, we're focused on revenue and operating margin as our primary financial metrics -- and engagement (i.e. time spent) as our best proxy for customer satisfaction," the company said in its quarterly letter to shareholders. "In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential." Netflix said now that it is generating substantial profit and free cash flow -- as well as developing new revenue streams like advertising and a password-sharing crackdown -- its membership numbers are not the only factor in the company's growth. It said the metric lost significance after it started to offer multiple price points for memberships. The company said it would still announce "major subscriber milestones as we cross them."

Netflix also noted that it expects paid net additions to be lower in the second quarter compared to the first quarter "due to typical seasonality." Its second-quarter revenue forecast of $9.49 billion was just shy of Wall Street's estimate of $9.54 billion Shares of the company fell around 4% in extended trading. Netflix reported first-quarter net income of $2.33 billion, or $5.28 per share, versus $1.30 billion, or $2.88 per share, in the prior-year period. The company posted revenue of $9.37 billion for the quarter, up from $8.16 billion in the year-ago quarter.

Microsoft

Windows 11's Beta Testers May Start Seeing Ads for Microsoft Store Apps (engadget.com) 37

Engadget warns Windows 11 users that Microsoft is "exploring the idea" of putting ads in their Start menu. Sort of... To be specific, it's looking to place advertisements for apps you can find in the Microsoft Store in the menu's recommended section....

At the moment, Microsoft will only show ads in this version if you're in the US and a Windows Insider in the Beta Channel. You won't be seeing them if you're not a beta tester or if you're using a device managed by an organization. Further, you can disable the advertisements altogether. To do so, just go to Personalization under Settings and then toggle off "Show recommendations for tips, app promotions, and more" in the Start section.

Like any other Microsoft experiment, it may never reach wider rollout, but you may want to remember the aforementioned steps, since the company does have history of incorporating ads into its desktop platforms.

IT

'Defeated' CEO's Finally Concede Hybrid Working Is Here to Stay (yahoo.com) 88

"After a year of cracking down with rigid return-to-office mandates, defeated CEOs are now finally accepting that hybrid working is here to stay," reports Fortune: KPMG surveyed U.S. CEOs of companies turning over at least $500 million and found that just one-third expect a full return to the office in the next three years.

So it's official: Leaders who believe that office workers will be back at their desks five days a week in the near future are now in the small minority. It's a complete 360 on their stance last year, when 62% of CEOs surveyed predicted that working from home would end by 2026. At the time, 90% of CEOs even admitted that they were so steadfast on summoning staff back to their vertical towers that they were sweetening the pot with salary raises, promotions, and favorable assignments to those who showed face more.

But now, bosses are backtracking: Nearly half of CEOs have concluded that the future of work is hybrid — up from 34% last year. What's more, a sizable chunk of CEOs aren't just embracing working from home on Fridays, they're going one step further and ditching the workday altogether. KPMG found that a third of CEOs are exploring the feasibility of a four-day week at their firm...

Research has echoed that nearly half of companies with return-to-office mandates witnessed a higher level of employee attrition than they had anticipated, and 29% of companies enforcing office returns are struggling with recruitment. It perhaps explains why, as KPMG's data shows, CEOs are now waking up to the fact that the future of work is probably the happy medium of hybrid... Lewis Maleh, CEO of the global executive recruitment agency Bentley Lewis, has already witnessed a U-turn to more flexible job ads. "I've noticed a definite rise in job postings advertising remote or hybrid work," Maleh tells Fortune. "We haven't worked on any searches that require the candidate to be in the office five days per week in the past six months globally."

"The shift demonstrates the cementing of hybrid work models, as CEOs increasingly recognize flexibility as a key factor in attracting and retaining top talent."

Privacy

96% of US Hospital Websites Share Visitor Info With Meta, Google, Data Brokers (theregister.com) 21

An anonymous reader quotes a report from The Guardian: Hospitals -- despite being places where people implicitly expect to have their personal details kept private -- frequently use tracking technologies on their websites to share user information with Google, Meta, data brokers, and other third parties, according to research published today. Academics at the University of Pennsylvania analyzed a nationally representative sample of 100 non-federal acute care hospitals -- essentially traditional hospitals with emergency departments -- and their findings were that 96 percent of their websites transmitted user data to third parties. Additionally, not all of these websites even had a privacy policy. And of the 71 percent that did, 56 percent disclosed specific third-party companies that could receive user information.

The researchers' latest work builds on a study they published a year ago of 3,747 US non-federal hospital websites. That found 98.6 percent tracked and transferred visitors' data to large tech and social media companies, advertising firms, and data brokers. To find the trackers on websites, the team checked out each hospitals' homepage on January 26 using webXray, an open source tool that detects third-party HTTP requests and matches them to the organizations receiving the data. They also recorded the number of third-party cookies per page. One name in particular stood out, in terms of who was receiving website visitors' information. "In every study we've done, in any part of the health system, Google, whose parent company is Alphabet, is on nearly every page, including hospitals," [Dr Ari Friedman, an assistant professor of emergency medicine at the University of Pennsylvania] observed. "From there, it declines," he continued. "Meta was on a little over half of hospital webpages, and the Meta Pixel is notable because it seems to be one of the grabbier entities out there in terms of tracking."

Both Meta and Google's tracking technologies have been the subject of criminal complaints and lawsuits over the years -- as have some healthcare companies that shared data with these and other advertisers. In addition, between 20 and 30 percent of the hospitals share data with Adobe, Friedman noted. "Everybody knows Adobe for PDFs. My understanding is they also have a tracking division within their ad division." Others include telecom and digital marketing companies like The Trade Desk and Verizon, plus tech giants Oracle, Microsoft, and Amazon, according to Friedman. Then there's also analytics firms including Hotjar and data brokers such as Acxiom. "And two thirds of hospital websites had some kind of data transfer to a third-party domain that we couldn't even identify," he added. Of the 71 hospital website privacy policies that the team found, 69 addressed the types of user information that was collected. The most common were IP addresses (80 percent), web browser name and version (75 percent), pages visited on the website (73 percent), and the website from which the user arrived (73 percent). Only 56 percent of these policies identified the third-party companies receiving user information.
In lieu of any federal data privacy law in the U.S., Friedman recommends users protect their personal information via the browser-based tools Ghostery and Privacy Badger, which identify and block transfers to third-party domains.
Businesses

Apple To Expand Presence In Florida With New Miami Office (9to5mac.com) 32

An anonymous reader quotes a report from 9to5Mac: Following moves of other tech giants like Amazon and Microsoft, Apple is reportedly set to open a new office space in a Miami suburb. This won't be the first corporate space for Apple in the city, but it will be larger than the existing office. Reported by Bloomberg, anonymous sources close to the matter say that Apple's new Miami office will be 45,000 square feet in the affluent Coral Gables suburb of Miami. It's not clear yet what part of Apple's business the new office will focus on but it will be larger than its existing small Miami office that handles Latin America and advertising operations. The specific property of the new Apple offices will be at The Plaza Coral Gables.
Microsoft

Microsoft Begins Showing Full Screen Windows 11 Ad on Windows 10 PCs as End of Support Date Looms 185

Microsoft has started showing full screen warnings about the upcoming end of support date on Windows 10 PCs. From a report: Users on Reddit have reported seeing the prompt, which began appearing after this week's Patch Tuesday updates were installed, and encourages the user to learn more about how they can transition to Windows 11. Windows 10's end of support date is currently set for October 14, 2025. After that date, Windows 10 users will no longer receive critical security and bug fix updates, leaving any Windows 10 PC connected to the internet vulnerable to any newly discovered security exploits. The full screen prompt that is now appearing on some Windows 10 PCs thanks the user for their loyalty using Windows 10, and warns that this end of life (EOL) date is approaching. It also wastes no time advertising Windows 11, encouraging the user to learn more about how they can transition to a new Windows 11 PC. Notably, there's no button to tell the prompt to never show again.
United States

A Breakthrough Online Privacy Proposal Hits Congress (wired.com) 27

An anonymous reader quotes a report from Wired: Congress may be closer than ever to passing a comprehensive data privacy framework after key House and Senate committee leaders released a new proposal on Sunday. The bipartisan proposal, titled the American Privacy Rights Act, or APRA, would limit the types of consumer data that companies can collect, retain, and use, allowing solely what they'd need to operate their services. Users would also be allowed to opt out of targeted advertising, and have the ability to view, correct, delete, and download their data from online services. The proposal would also create a national registry of data brokers, and force those companies to allow users to opt out of having their data sold. [...] In an interview with The Spokesman Review on Sunday, [Cathy McMorris Rodgers, House Energy and Commerce Committee chair] claimed that the draft's language is stronger than any active laws, seemingly as an attempt to assuage the concerns of Democrats who have long fought attempts to preempt preexisting state-level protections. APRA does allow states to pass their own privacy laws related to civil rights and consumer protections, among other exceptions.

In the previous session of Congress, the leaders of the House Energy and Commerce Committees brokered a deal with Roger Wicker, the top Republican on the Senate Commerce Committee, on a bill that would preempt state laws with the exception of the California Consumer Privacy Act and the Biometric Information Privacy Act of Illinois. That measure, titled the American Data Privacy and Protection Act, also created a weaker private right of action than most Democrats were willing to support. Maria Cantwell, Senate Commerce Committee chair, refused to support the measure, instead circulating her own draft legislation. The ADPPA hasn't been reintroduced, but APRA was designed as a compromise. "I think we have threaded a very important needle here," Cantwell told The Spokesman Review. "We are preserving those standards that California and Illinois and Washington have."

APRA includes language from California's landmark privacy law allowing people to sue companies when they are harmed by a data breach. It also provides the Federal Trade Commission, state attorneys general, and private citizens the authority to sue companies when they violate the law. The categories of data that would be impacted by APRA include certain categories of "information that identifies or is linked or reasonably linkable to an individual or device," according to a Senate Commerce Committee summary of the legislation. Small businesses -- those with $40 million or less in annual revenue and limited data collection -- would be exempt under APRA, with enforcement focused on businesses with $250 million or more in yearly revenue. Governments and "entities working on behalf of governments" are excluded under the bill, as are the National Center for Missing and Exploited Children and, apart from certain cybersecurity provisions, "fraud-fighting" nonprofits. Frank Pallone, the top Democrat on the House Energy and Commerce Committee, called the draft "very strong" in a Sunday statement, but said he wanted to "strengthen" it with tighter child safety provisions.

Advertising

Mozilla Asks: Will Google's Privacy Sandbox Protect Advertisers (and Google) More than You? (mozilla.org) 56

On Mozilla's blog, engineer Martin Thomson explores Google's "Privacy Sandbox" initiative (which proposes sharing a subset of private user information — but without third-party cookies).

The blog post concludes that Google's Protected Audience "protects advertisers (and Google) more than it protects you." But it's not all bad — in theory: The idea behind Protected Audience is that it creates something like an alternative information dimension inside of your (Chrome) browser... Any website can push information into that dimension. While we normally avoid mixing data from multiple sites, those rules are changed to allow that. Sites can then process that data in order to select advertisements. However, no one can see into this dimension, except you. Sites can only open a window for you to peek into that dimension, but only to see the ads they chose...

Protected Audience might be flawed, but it demonstrates real potential. If this is possible, that might give people more of a say in how their data is used. Rather than just have someone spy on your every action then use that information as they like, you might be able to specify what they can and cannot do. The technology could guarantee that your choice is respected. Maybe advertising is not the first thing you would do with this newfound power, but maybe if the advertising industry is willing to fund investments in new technology that others could eventually use, that could be a good thing.

But here's some of the blog post's key criticisms:
  • "[E]ntities like Google who operate large sites, might rely less on information from other sites. Losing the information that comes from tracking people might affect them far less when they can use information they gather from their many services... [W]e have a company that dominates both the advertising and browser markets, proposing a change that comes with clear privacy benefits, but it will also further entrench its own dominance in the massively profitable online advertising market..."
  • "[T]he proposal fails to meet its own privacy goals. The technical privacy measures in Protected Audience fail to prevent sites from abusing the API to learn about what you did on other sites.... Google loosened privacy protections in a number of places to make it easier to use. Of course, by weakening protections, the current proposal provides no privacy. In other words, to help make Protected Audience easier to use, they made the design even leakier..."
  • "A lot of these leaks are temporary. Google has a plan and even a timeline for closing most of the holes that were added to make Protected Audience easier to use for advertisers. The problem is that there is no credible fix for some of the information leaks embedded in Protected Audience's architecture... In failing to achieve its own privacy goals, Protected Audience is not now — and maybe not ever — a good addition to the Web."

AI

Google Considers Charging For AI-Powered Search 46

An anonymous reader quotes a report from the Financial Times: Google is considering charging for new "premium" features powered by generative artificial intelligence, in what would be the biggest ever shake-up of its search business. The proposed revamp to its cash cow search engine would mark the first time the company has put any of its core product behind a paywall, and shows it is still grappling with a technology that threatens its advertising business, almost a year and a half after the debut of ChatGPT. Google is looking at options including adding certain AI-powered search features to its premium subscription services, which already offer access to its new Gemini AI assistant in Gmail and Docs, according to three people with knowledge of its plans. Engineers are developing the technology needed to deploy the service but executives have not yet made a final decision on whether or when to launch it, one of the people said. Google's traditional search engine would remain free of charge, while ads would continue to appear alongside search results even for subscribers. But charging would represent the first time that Google -- which for many years offered free consumer services funded entirely by advertising -- has made people pay for enhancements to its core search product. "For years, we've been reinventing Search to help people access information in the way that's most natural to them," said Google. "With our generative AI experiments in Search, we've already served billions of queries, and we're seeing positive Search query growth in all of our major markets. We're continuing to rapidly improve the product to serve new user needs."

It added: "We don't have anything to announce right now."
Businesses

JPMorgan Chase is About To Let Advertisers Target Customers Based on Their Spending (qz.com) 60

smooth wombat writes: Chase bank announced a new program that will allow brands to target Chase customers based on the customer's purchases. According to the press release, the new program is called Chase Media Solutions and "serves as a key conduit for brands, connecting them with consumers' personal passions and interests. In turn, Chase customers benefit from personalized offers and the ability to earn cash back with brands they love or are discovering for the first time."

The bank is hoping to combine insights from its large customer base and 6 million small business customers as part of its efforts to build out its own two-sided commerce platform and bring in benefits to both business clients and banking customers. Chase Media Solutions follows from the integration of card-linked marketing platform Figg, which JPMorgan Chase & Co. acquired in 2022, the bank said.

Advertising

Discord To Start Showing Ads This Week After History of Shunning Them (pymnts.com) 70

Starting this week, Discord will show ads on the site from video game companies, some of which will offer users gifts for carrying out in-game tasks. According to the Wall Street Journal, Discord said users will be able to turn off the ads in their settings. From a report: The sources said Discord aims to hire more than a dozen ad sales people. WSJ said the addition of ads marks a pivot for Discord, whose CEO Jason Citron has repeatedly said the company would not rely on advertisers the way platforms like Facebook and Instagram do.
Wireless Networking

'Smart Devices Are Turning Out To Be a Poor Investment' (androidpolice.com) 155

An anonymous reader quotes a report from Android Police, written by Dhruv Bhutani: As someone who is an early adopter of all things smart and has invested a significant amount of money in building a fancy smart home, it saddens me to say that I feel cheated by the thousands of dollars I've spent on smart devices. And it's not a one-off. Amazon's recent move to block off local ADB connections on Fire TV devices is the latest example in a long line of grievances. A brand busy wrestling away control from the consumer after they've bought the product, the software update gimps a feature that has been present on the hardware ever since it launched back in 2014. ADB-based commands let users take deep control of the hardware, and in the case of the Fire TV hardware, it can drastically improve the user experience. [...] A few years ago, I decided to invest in the NVIDIA Shield. The premium streamer was marketed as a utopia for streaming online and offline sources with the ability to plug in hard drives, connect to NAS drives, and more. At launch, it did precisely that while presenting a beautiful, clean interface that was a joy to interact with. However, subsequent updates have converted what was otherwise a clean and elegant solution to an ad-infested overlay that I zoom past to jump into my streaming app of choice. This problem isn't restricted to just the Shield. Even my Google TV running Chromecast has a home screen that's more of an advertising space for Google than an easy way to get to my content.

But why stop at streaming boxes? Google's Nest Hubs are equal victims of feature deterioration. I've spent hundreds of dollars on Nest Hubs and outfitted them in most of my rooms and washrooms. However, Google's consistent degradation of the user experience means I use these speakers for little more than casting music from the Spotify app. The voice recognition barely works on the best of days, and when it does, the answers tend to be wildly inconsistent. It wasn't always the case. In fact, at launch, Google's Nest speakers were some of the best smart home interfaces you could buy. You'd imagine that the experience would only improve from there. That's decidedly not the case. I had high hopes that the Fuchsia update would fix the broken command detection, but that's also not the case. And good luck to you if you decided to invest in Google Assistant-compatible displays. Google's announcement that it would no longer issue software or security updates to third-party displays like the excellent Lenovo Smart Display, right after killing the built-in web browser, is pretty wild. It boggles my mind that a company can get away with such behavior.

Now imagine the plight of Nest Secure owners. A home security system isn't something one expects to switch out for many many years. And yet, Google decided to kill the Nest Secure home monitoring solution merely three years after launching the product range. While I made an initial investment in the Nest ecosystem, I've since switched over to a completely local solution that is entirely under my control, stores data locally, and won't be going out of action because of bad decision-making by another company.
"It's clear to me that smart home devices, as they stand, are proving to be very poor investments for consumers," Bhutani writes in closing. "Suffice it to say that I've paused any future investments in smart devices, and I'll be taking a long and hard look at a company's treatment of its current portfolio before splurging out more cash. I'd recommend you do the same."
Businesses

Perplexity, an AI Startup Attempting To Challenge Google, Plans To Sell Ads (adweek.com) 25

An anonymous reader shares a report: Generative AI search engine Perplexity, which claims to be a Google competitor and recently snagged a $73.6 million Series B funding from investors like Jeff Bezos, is going to start selling ads, the company told ADWEEK. Perplexity uses AI to answer users' questions, based on web sources. It incorporates videos and images in the response and even data from partners like Yelp. Perplexity also links sources in the response while suggesting related questions users might want to ask.

These related questions, which account for 40% of Perplexity's queries, are where the company will start introducing native ads, by letting brands influence these questions, said company chief business officer Dmitry Shevelenko. When a user delves deeper into a topic, the AI search engine might offer organic and brand-sponsored questions. Perplexity will launch this in the upcoming quarters, but Shevelenko declined to disclose more specifics. While Perplexity touts on its site that search should be "free from the influence of advertising-driven models," advertising was always in the cards for the company. "Advertising was always part of how we're going to build a great business," said Shevelenko.

Facebook

Meta Used Spyware to Access Its Users' Activities on Rival Platforms (observer.com) 32

New documents from a class action against Meta "reveal some of the specific ways it tackled rivals in recent years," reports the Observer.

"One of them was using software made by a mobile data analytics company called Onavo in 2016 to access user activities on Snapchat, and eventually Amazon and YouTube, too." Facebook acquired Onavo in 2013 and shut it down in 2019 after a TechCrunch report revealed that the company was paying teenagers to use the software to collect user data.

In 2020, two Facebook users filed a class action lawsuit in the U.S. District Court for the Northern District of California against Meta, then called Facebook, alleging the company engaged in anticompetitive practices and exploited user data. In 2023, the plaintiffs' attorney Brian J. Dunne submitted documents listing how Facebook used Onavo's software to spy on competitors, including Snapchat. According to the documents, made public this week, the Onavo team pitched and launched a project codenamed "Ghostbusters" — in reference to the Snapchat logo — where they developed "kits that can be installed on iOS or Android that intercept traffic for specific sub-domains," allowing them "to read what would otherwise be encrypted traffic so we can measure in-app usage."

The documents also included a presentation from the Onavo team to Mark Zuckerberg showing that they had the ability to track "detailed in-app activity" by "parsing Snapchat analytics collected from incentivized participants in Onavo's program...." The technology was used to do the same to YouTube from 2017 to 2018 and Amazon in 2018, according to the documents. "The intended and actual result of this program was to harm competition, including Facebook's then-nascent Social Advertising competitor Snapchat," the document alleged.

Facebook

Facebook Allegedly Killed Its Own Streaming Service To Help Sell Netflix Ads (gizmodo.com) 14

An anonymous reader quotes a report from Gizmodo: Do you remember Facebook Watch? Me neither. Mark Zuckerberg's short-lived streaming service never really got off the ground, but court filings unsealed in Meta's antitrust lawsuit claim "Watch" was kneecapped starting in 2018 to protect Zuckerberg's advertising relationship with Netflix CEO Reed Hastings. "For nearly a decade, Netflix and Facebook enjoyed a special relationship," said plaintiffs in filings (PDF) made public on Saturday. "It is no great mystery how this close partnership developed, and who was its steward: from 2011-2019, Netflix's then-CEO Hastings sat on Facebook's board and personally directed the companies' relationship"

The filings detail Hastings' uncomfortably close relationship with Meta's upper management, including Zuckerberg and Sheryl Sandberg. During these years, Netflix was allegedly granted special access to Facebook users' private message inboxes, among other privileged analytics tools, in exchange for hundred-million-dollar advertising deals. This gave Facebook greater dominance in its all-important ad division, plaintiffs allege, so the company was fine to retreat from Netflix's streaming territory by shuttering Watch. In 2017, Facebook Watch began signing deals to populate its streaming service with original TV Shows from movie stars such as Bill Murray. A year later, the service attempted to license the popular '90s TV show Dawson's Creek. Facebook Watch had meaningful reach on the home screen of the social media platform, and an impressive budget as well. Facebook and Netflix appeared ready to butt heads in the streaming world, and the Netflix cofounder found himself in the middle as a Facebook board member. [...]

Netflix was a large advertiser to Facebook, and plaintiffs allege Zuckerberg shuttered its promising Watch platform for the sake of the greater advertising business. Zuckerberg personally emailed the head of Facebook Watch in May of 2018, Fidji Simo, to tell her their budget was being slashed by $750 million, just two years after Watch's launch, according to court filings. The sudden pivot meant Facebook was now dismantling the streaming business it had spent the last two years growing. During this time period, Netflix increased its ad spend on Facebook to roughly $150 million a year and allegedly entered into agreements for increased data analytics. By early 2019, the ad spend increased to roughly $200 million a year. Hastings left Facebook's board later in 2019.

UPDATE: Meta (Again) Denies Netflix Read Facebook Users' Private Messenger Messages.
Privacy

Steve Wozniak Decries Tracking's Effect on Privacy, Calls Out 'Hypocrisy' of Only Banning TikTok (cnn.com) 137

In an interview Saturday, CNN first asked Steve Wozniak about Apple's "walled garden" approach — and whether there's any disconnect between Apple's stated interest in user security and privacy, and its own self-interest?

Wozniak responded, "I think there are things you can say on all sides of it. "I'm kind of glad for the protection that I have for my privacy and for you know not getting hacked as much. Apple does a better job than the others.

And tracking you — tracking you is questionable, but my gosh, look at what we're accusing TikTok of, and then go look at Facebook and Google... That's how they make their business! I mean, Facebook was a great idea. But then they make all their money just by tracking you and advertising.

And Apple doesn't really do that as much. I consider Apple the good guy.

So then CNN directly asked Wozniak's opinion about the proposed ban on TikTok in the U.S. "Well, one, I don't understand it. I don't see why. I mean, I get a lot of entertainment out of TikTok — and I avoid the social web. But I love to watch TikTok, even if it's just for rescuing dog videos and stuff.

And so I'm thinking, well, what are we saying? We're saying 'Oh, you might be tracked by the Chinese'. Well, they learned it from us.

I mean, look, if you have a principle — a person should not be tracked without them knowing it? It's kind of a privacy principle — I was a founder of the EFF. And if you have that principle, you apply it the same to every company, or every country. You don't say, 'Here's one case where we're going to outlaw an app, but we're not going to do it in these other cases.'

So I don't like the hypocrisy. And that's always obviously common from a political realm.

United States

DOT Wants To Know How Big Airlines Use Passenger Data (theregister.com) 11

The U.S. Department of Transportation has announced it will conduct a review of the data practices of the country's ten largest airlines, amid concerns over potential misuse of customer information for upselling, overcharging, targeted advertising, and third-party data sales, as well as the security of systems handling sensitive data such as passport numbers. From a report: The probe will look at air carriers' policies and procedures to determine if they are safeguarding personal info properly, unfairly or deceptively monetizing it, or sharing it with third parties, the agency said yesterday. If they're indeed doing anything "problematic," they can look forward to scrutiny, fines, and new rules, says the DOT. "Airline passengers should have confidence that their personal information is not being shared improperly with third parties or mishandled by employees," said US Transportation Secretary Pete Buttigieg.

"This review of airline practices is the beginning of a new initiative by DOT to ensure airlines are being good stewards of sensitive passenger data." The ten airlines going under the magnifying glass are Delta, United, American, Southwest, Alaska, JetBlue, Spirit, Frontier, Hawaiian and Allegiant.

AI

AI-Generated Science 32

Published scientific papers include language that appears to have been generated by AI-tools like ChatGPT, showing how pervasive the technology has become, and highlighting longstanding issues with some peer-reviewed journals. From a report: Searching for the phrase "As of my last knowledge update" on Google Scholar, a free search tool that indexes articles published in academic journals, returns 115 results. The phrase is often used by OpenAI's ChatGPT to indicate when the data the answer it is giving users is coming from, and the specific months and years found in these academic papers correspond to previous ChatGPT "knowledge updates."

"As of my last knowledge update in September 2021, there is no widely accepted scientific correlation between quantum entanglement and longitudinal scalar waves," reads a paper titled "Quantum Entanglement: Examining its Nature and Implications" published in the "Journal of Material Sciences & Manfacturing [sic] Research," a publication that claims it's peer-reviewed. Over the weekend, a tweet showing the same AI-generated phrase appearing in several scientific papers went viral.

Most of the scientific papers I looked at that included this phrase are small, not well known, and appear to be "paper mills," journals with low editorial standards that will publish almost anything quickly. One publication where I found the AI-generated phrase, the Open Access Research Journal of Engineering and Technology, advertises "low publication charges," an "e-certificate" of publication, and is currently advertising a call for papers, promising acceptance within 48 hours and publication within four days.

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