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Privacy

BetterHelp Sold Customer Data While Promising It was Private, Says FTC (theverge.com) 38

Online counseling company BetterHelp has agreed to pay $7.8 million to settle charges from the Federal Trade Commission that it improperly shared customers' sensitive data with companies like Facebook and Snapchat, even after promising to keep it private. The Verge reports: The proposed order, announced by the FTC on Thursday, would ban the same behavior in the future and require BetterHelp to make some changes to how it handles customer data. According to the regulator, the sign-up process for the company's service "promised consumers that it would not use or disclose their personal health data except for limited purposes." However, the FTC alleges that the company instead "used and revealed consumers' email addresses, IP addresses, and health questionnaire information to Facebook, Snapchat, Criteo, and Pinterest for advertising purposes."

The FTC also says that the company gave customer service agents false scripts to try and reassure users that it wasn't sharing personally identifiable or personal health information after a February 2020 report from Jezebel exposed some of its practices. The commission's complaint (PDF) accuses the company of misleading customers by putting a HIPAA seal on its website, despite the fact that "no government agency or other third party reviewed [BetterHelp]'s information practices for compliance with HIPAA, let alone determined that the practices met the requirements of HIPAA."

If the FTC's order ends up going through, the $7.8 million would go to customers who signed up for the service between August 1st, 2017, and December 31st, 2020. Here are some of the other things BetterHelp would be required to do:

- Stop sharing individually identifiable information about consumer's mental health with any third parties
- Stop misrepresenting its data collection and use policies
- Alert customers who created accounts before January 1st, 2021, that their personal info may have been used for advertising
- Obtain "affirmative express consent" from a customer before sharing information with a third party
- Reach out to third parties that received customer information and ask that it be deleted
- Establish a "comprehensive privacy program" and have an independent third party carry out privacy assessments

Facebook

Meta's AR/VR Hardware Roadmap For the Next Four Years (theverge.com) 29

An anonymous reader quotes a report from The Verge's Alex Heath: Meta plans to release its first pair of smart glasses with a display in 2025 alongside a neural interface smartwatch designed to control them, The Verge has learned. Meanwhile, its first pair of full-fledged AR glasses, which CEO Mark Zuckerberg has predicted will eventually be as widely used as mobile phones, is planned for 2027. The details were shared with thousands of employees in Meta's Reality Labs division on Tuesday during a roadmap presentation of its AR and VR efforts that was shared with The Verge. Altogether, they show how Meta is planning to keep investing in consumer hardware after a series of setbacks and broader cost cutting across the company.

With regards to the VR roadmap, employees were told that Meta's flagship Quest 3 headset coming later this year will be two times thinner, at least twice as powerful, and cost slightly more than the $400 Quest 2. Like the recently announced Quest Pro, it will prominently feature mixed reality experiences that don't fully immerse the wearer, thanks to front-facing cameras that pass through video of the real world. [...] There will be 41 new apps and games shipping for the Quest 3, including new mixed reality experiences to take advantage of the updated hardware, Rabkin said. In 2024, he said that Meta plans to ship a more "accessible" headset codenamed Ventura. "The goal for this headset is very simple: pack the biggest punch we can at the most attractive price point in the VR consumer market."

During Tuesday's roadmap presentation, Alex Himel, the company's vice president for AR, laid out the plan for a bevy of devices through 2027. The first launch will come this fall with the second generation of Meta's camera-equipped smart glasses it released in 2021 with Luxottica, the parent company of Ray-Ban. In 2025, Himel said the third generation of the smart glasses will ship with a display that he called a "viewfinder" for viewing incoming text messages, scanning QR codes, and translating text from another language in real time. The glasses will come with a "neural interface" band that allows the wearer to control the glasses through hand movements, such as swiping fingers on an imaginary D-pad. Eventually, he said the band will let the wearer use a virtual keyboard and type at the same words per minute as what mobile phones allow.
While Meta halted development of its smartwatch with dual cameras,Himel said that the company is still working on another smartwatch to accompany its 2025 glasses. "We don't want people to have to choose between an input device on their wrist and smartwatch functionality that they've come to love," he said. "So we are building a neural interfaces watch. Number one, this device will do input: input to control your glasses, input to control the functionality on your wrist, and input to control the world around you."

The Verge's Alex Heath adds: "Meta's first true pair of AR glasses, which the company has been internally developing for 8 years under the codename Orion, are more technically advanced, expensive, and designed to project high-quality holograms of avatars onto the real world." These glasses will "won't be released to the public until 2027," but an "internal launch" for employees will begin in 2024.

As for advertising, Meta is planning to utilize its existing business model for these future devices. "We should be able to run a very good ads business," he said. "I think it's easy to imagine how ads would show up in space when you have AR glasses on. Our ability to track conversions, which is where there has been a lot of focus as a company, should also be close to 100 percent."

"If we're hitting anything near projections, it will be a tremendous business," he said. "A business unlike anything we've seen on mobile phones before."
China

China Is Exporting Its Obsession with Tiny Electric Vehicles (restofworld.org) 110

Long-time Slashdot reader destinyland shared this report about the boxy little Wuling: Priced at around $5,500 and famously outselling Tesla in China, it's a tiny, comically square car, produced in joint partnership with General Motors and SAIC. The micro EV has been fodder for articles and YouTubers — even while it's remained unavailable outside China.

Until last summer, that is, when Wuling attempted to go international. First stop: Indonesia. With its Air model selling at a mere $16,000 — less than half the price of alternatives — the minimalist EV was depicted in advertising as a gateway to the future, a slick solution for busy Indonesian city-dwellers.

Six months later, the Wuling Air now dominates EV sales in the country, according to the Association of Indonesia Automotive Industries (Gaikindo). Since entering Indonesia last August, it's sold some 8,000 vehicles. The number may be small compared to the manufacturers' sales figures in their home turfs of the U.S. and China, but it's equivalent to 78% of the EV market in the Southeast Asian country....

It's not perfect; customers complain of battery failure and the anxiety of finding charge points. But the price tag counts for a lot.... A $48,000 Nissan Leaf or Hyundai Ioniq is way out of most Indonesians' price brackets. But a Wuling — $16,000 for standard range, which lasts 250 kilometers on a full charge, and $20,000 for long-range, at 450 kilometers — is achievable.

Canada

Google Is Protesting a Canadian Law By Blocking News In Search Results (www.cbc.ca) 107

An anonymous reader quotes a report from CBC: Google is blocking some Canadian users from viewing news content in what the company says is a test run of a potential response to the Liberal government's online news bill. Also known as Bill C-18, the Online News Act would require digital giants such as Google and Meta, which owns Facebook, to negotiate deals that would compensate Canadian media companies for republishing their content on their platforms. The company said Wednesday that it is temporarily limiting access to news content for under four per cent of its Canadian users as it assesses possible responses to the bill. The change applies to its ubiquitous search engine as well as the Discover feature on Android devices, which carries news and sports stories. All types of news content are being affected by the test, which will run for about five weeks, the company said. That includes content created by Canadian broadcasters and newspapers.

In a news release, the Canadian Association of Broadcasters (CAB) said Google's tactics just reinforce why Bill C-18 is so "vital," adding that Google and other global digital giants are showing they do not intend to play fair. "These are bully tactics, and Google is trying to push the Senate to back down on Bill C-18. We hope senators will see these actions for what they are," said CAB president Kevin Desjardins. "Bill C-18 was introduced to set up fair negotiations between news organizations and these global digital giants on the value of their news content. Google has shown they're willing to block Canadians' vital access to legitimate news content to maintain their dominance in the advertising field."
Meta threatened to stop the sharing of news links in Canada last year if C-18 passed as currently written.

The social media company temporarily shut down news feeds in Australia after a similar law was introduced. It took effect in March 2021 and has largely worked, according to a government report.

CBC notes: "More than 450 news outlets in Canada have closed since 2008, including 64 in the last two years."
United States

FTC Launches New Office to Investigate Tech Companies, Seeks Tech Researchers (msn.com) 10

America's Federal Trade Commission "has long been dwarfed by Silicon Valley titans like Google and Apple, each staffed with thousands of engineers and technologists," notes the Washington Post.

"But FTC leaders are hoping combining and expanding their forces into a dedicated tech unit will help them keep up with the rapid advancements across the industry — and to keep it in check." The creation of the office will increase the number of technologists on staff by roughly a dozen, up from the current 10 — more than doubling the agency's capacity, officials said. In an exclusive interview announcing the move, FTC Chief Technology Officer Stephanie Nguyen said the unit will work with teams across the agency's competition and consumer protection bureaus to investigate potential misconduct and bring cases against violators. "Actually being able to have staff internally to approach these matters and help with subject matter expertise is critical," said Nguyen, who will lead the office.

The announcement arrives at a critical juncture. Federal regulators are dialing up investigations into tech behemoths like Amazon and waging blockbuster legal battles against Microsoft and Facebook parent company Meta. While Nguyen declined to discuss specific probes or cases, she said the new technology office will work directly on both the agency's investigative and enforcement efforts to "strengthen and support our attorneys" as they look to tackle alleged abuses across the economy. "The areas ... we will focus on is to work on cases," she said.... Nguyen said, the new team of technologists could help the agency refine the subpoenas it issues companies to get at the heart of their business models, or to strike a settlement that gets closer to "the root cause of the harm" taking place.

Republican Commissioner Christine Wilson, who Tuesday announced plans to resign "soon," voted in favor of creating the office, joining with the other commissioners in a unanimous vote.

The office's core mission will have three key areas, reports FedScoop: "strengthening and supporting law enforcement investigations, advising commission staff on policy and research initiatives, and highlighting market trends."

"For more than a century, the FTC has worked to keep pace with new markets and ever-changing technologies by building internal expertise," FTC Chair Lina Khan said. "Our office of technology is a natural next step in ensuring we have the in-house skills needed to fully grasp evolving technologies and market trends as we continue to tackle unlawful business practices and protect Americans."

Read on for more details about the new office.
Privacy

Forget Milk and Eggs: Supermarkets Are Having a Fire Sale on Data About You (themarkup.org) 104

When you use supermarket discount cards, you are sharing much more than what is in your cart. From a report: When you hit the checkout line at your local supermarket and give the cashier your phone number or loyalty card, you are handing over a valuable treasure trove of data that may not be limited to the items in your shopping cart. Many grocers systematically infer information about you from your purchases and "enrich" the personal information you provide with additional data from third-party brokers, potentially including your race, ethnicity, age, finances, employment, and online activities.

Some of them even track your precise movements in stores. They then analyze all this data about you and sell it to consumer brands eager to use it to precisely target you with advertising and otherwise improve their sales efforts. Leveraging customer data this way has become a crucial growth area for top supermarket chain Kroger and other retailers over the past few years, offering much higher margins than milk and eggs. And Kroger may be about to get millions of households bigger. In October 2022, Kroger and another top supermarket chain, Albertsons, announced plans for a $24.6 billion merger that would combine the top two supermarket chains in the U.S., creating stiff competition for Walmart, the overall top seller of groceries.

U.S. regulators and members of Congress are scrutinizing the deal, including by examining its potential to erode privacy: Kroger has carefully grown two "alternative profit business" units that monetize customer information, expected by Kroger to yield more than $1 billion in "profits opportunity." Folding Albertsons into Kroger will potentially add tens of millions of additional households to this data pool, netting half the households in America as customers. While Kroger is certainly not the only large retailer collecting and monetizing shopper data through the use of loyalty programs, the company's evolution from a traditional grocery business to a digitally sophisticated retailer with its own data science unit sets it apart from its larger competitors like Walmart, which also collects, analyzes and monetizes shopper data for brands and for targeted advertising on its own retail ad network.

Australia

Australians Able To Opt Out of Targeted Ads, Erase Their Data Under Proposed Privacy Reforms (theguardian.com) 37

An anonymous reader quotes a report from The Guardian: Australians would gain greater control of their personal information, including the ability to opt out of targeted ads, erase their data and sue for serious breaches of privacy, under a proposal to the Albanese government. On Thursday the attorney general, Mark Dreyfus, will release a review conducted by his department into modernization of the Privacy Act which calls to expand its remit to small businesses and add new safeguards for use of data by political parties. Although the document is not government policy, in January Dreyfus told Guardian Australia the right to sue for privacy breaches and European-style reforms such as the right to be forgotten would be considered for the next tranche of legislation.

In 2022 the Albanese government passed a bill increasing penalties for companies that fail to protect customer data in the wake of major data breaches at telco Optus and health insurer Medibank. A summary section of the review, seen in advance by Guardian Australia, called for the exemption from the Privacy Act for small businesses to be abolished, citing community expectations that if small businesses are provided personal information "they will keep it safe." But first the government should conduct an "impact analysis" and give support to ensure small businesses can comply with their obligations, it said. Despite calls to abolish the privacy exemptions for political parties, the review proposed only increased safeguards, such as for parties to publish a privacy policy and not target voters "based on sensitive information or traits" except for political opinions, membership of a political association, or a trade union. "There was very strong support for increasing the protections for personal information under the Act," the review said.

The review called for new limits on targeted advertising, including to prohibit targeting to a child except where it is in their "best interests," and to provide others with an "an unqualified right to opt-out" of targeted ads and their information being disclosed for direct marketing purposes. The Privacy Act should include a new overarching requirement that "the collection, use and disclosure of personal information must be fair and reasonable in the circumstances," it said. The review also proposes individual rights modeled on the European Union's general data protection regulation including to: object to the collection, use or disclosure of personal information; request erasure of personal information; and to de-index online search results containing sensitive information, excessive detail or "inaccurate, out-of-date, incomplete, irrelevant, or misleading" information. The review suggested that consent should be required for collection and use of precise geolocation tracking data. The government should "consult on introducing a criminal offense for malicious re-identification of de-identified information where there is an intention to harm another or obtain an illegitimate benefit," it said. The report said that individuals wanted "more agency to seek redress for interferences with their privacy," proposing the creation of a right to sue for "serious invasions of privacy," which was also a recommendation of the Australian Law Reform Commission in 2014.

Businesses

Amazon's Twitch Gaming Channel Is Exaggerating Its Popularity (bloomberg.com) 24

Comparatively few people follow the Crown channel or participate in its chats -- suggesting they aren't engaging with the programming. From a report: When Amazon launched the Crown Channel on its livestreaming platform Twitch in 2019, the e-commerce giant was looking to flex its entertainment chops in the buzzy world of video games -- an arena the company had been trying to break into for years. Resembling a traditional television network, Crown offers a range of ad-supported original programming, including "Screen Invaders!," a show about mobile gaming. Amazon says Crown is among Twitch's top 10 entertainment channels, luring tens of thousands of viewers -- a feat typically equaled only by Twitch's top personalities -- and is attracting such big-name advertisers as chipmaker Intel and insurer Progressive. But a Bloomberg analysis of Crown audience metrics shows the channel isn't as popular as Amazon says it is. That has potential implications for brands, which according to internal documents, may have paid anywhere from $150,000 to $500,000-plus to promote themselves on the channel.

A pitch deck for advertisers from January 2022 said the Crown channel then reached 43 million viewers and had a "highly engaged audience." But most of the viewers Crown cites are what the advertising industry calls "junk views," people who aren't actively watching the programming. Although Crown appears to draw in thousands of viewers each livestream, comparatively few people follow the channel or participate in its chats -- suggesting they aren't engaging with the content. Amazon sometimes pays Twitch tens of thousands of dollars to promote Crown programs on the site's home page, where they end up in a digital carousel that viewers scroll through, typically zipping past shows until they find something they want to watch. Audience inflation has been a long-standing issue for video and social-media sites.

Businesses

Amazon Is Taking Half of Each Sale From Its Merchants (bloomberg.com) 112

Grappling with slowing sales growth and rising costs, Amazon is squeezing more money from the nearly 2 million small businesses that sell products on its sprawling online marketplace. From a report: For the first time, Amazon's average cut of each sale surpassed 50% in 2022, according to a study by Marketplace Pulse, which sampled seller transactions going back to 2016. The research firm calculated the total cost of selling on Amazon by tallying the commission on each sale, fees for warehouse storage, packing and delivery, as well as money spent to advertise on a site where hundreds of millions of products jostle for attention. Paying Amazon for logistics services and advertising is optional, but most merchants consider these a necessary part of doing business.

Sellers have been paying Amazon more per transaction for six years in a row, according to Marketplace Pulse, but were able to absorb the increases because the company was attracting new customers and rapidly increasing sales. That abruptly changed when pandemic lockdowns eased and people began traveling and dining out again, sucking the oxygen out of online shopping. Last year, Amazon generated the slowest sales growth in its history.

Advertising

Super Bowl Ads Feature 'Mario Rap', Pixel Phone, Two Batmen, and Warnings of 'Premature Electrification' (sportingnews.com) 75

Despite the absence of cryptocurrency ads, this year's Super Bowl still managed some geek-friendly advertisements. There was even a riff on "the classic intro from the Super Mario Bros. Super Show, the live-action series that ran from 1989-1991," according to Kotaku: the infamous Mario Rap, which advertised Mario's plumbing business (and in its 2023 version featured the URL for a website).

[T]hat website is indeed up and running, and is everything you would hope it would be from a struggling small business servicing the Brooklyn and Queens areas. There's excessive animation, broken image links, a careers page (still under construction, sadly) and even a novelty mouse cursor.
Kotaku's article includes both versions of the rap, along with reactions from Twitter. (Apparently the phone number in the advertisement really works).

There were also several ads from major tech companies. Google purchased a long ad touting their Pixel phone's ability to remove people from photos (starring Amy Schumer, Doja Cat, and Giannis Antetokounmpo), while Workday drew attention to its enterprise-grade finance and HR software with an ad in which actual rock stars like Ozzy Osbourne, Joan Jett, blues player Gary Clark and members of KISS all urged the software's corporate users to stop calling themselves "rock stars".

Other tech-company ads aired from E*Trade, SquareSpace, and a star-studded Uber One ad in which rapper Puff Daddy auditions singers for their new jingle.

There were also the obligatory celebrity reunions — like Snoop Dogg and Martha Stewart, or the actors from Breaking Bad. But for comic book geeks, a trailer for D.C.'s new movie The Flash included a surprise appearance by Batman — play by both Ben Affleck and by a 71-year-old Michael Keaton, a full 34 years after Keaton played the caped crusader in Tim Burton's 1989 movie Batman. "Worlds collide in The Flash when Barry uses his superpowers to travel back in time in order to change the events of the past," according to a press release cited by People. James Gunn, director of Guardians of the Galaxy and new co-CEO of DC Studios, recently said, according to Deadline, that The Flash "is probably one of the greatest superhero movies ever made." He added that the film's storyline "resets everything" for the franchise.
The last Blockbuster video rental store in America played its own advertising prank during the Super Bowl. They announced their own ad which could only be viewed on their Instagram feed during halftime -- or in person at their store in Bend, Oregon. But, as CNN points out, "the store is also renting VHS copies of it for $2."

And for those geeks concerned about the drawbacks of climate change-fighting vehicles, RAM trucks ran an ad about "Premature Electrification" — for consumers excited about electric vehicles but "lacking the confidence about getting and being able to keep a charge." (Although a disclaimer printed at the bottom of the ad warned "Get excited, but not too excited. Pre-production model shown. Availability in the U.S. expected late 2024. Range lengthening technology to come later.")
Windows

Is Windows 11 Spyware? Microsoft Defends Sending User Data to Third Parties (tomshardware.com) 195

An anonymous reader shares a report from Tom's Hardware: According to the PC Security Channel (via TechSpot), Microsoft's Windows 11 sends data not only to the Redmond, Washington-based software giant, but also to multiple third parties. To analyze DNS traffic generated by a freshly installed copy of Windows 11 on a brand-new notebook, the PC Security Channel used the Wireshark network protocol analyzer that reveals precisely what is happening on a network. The results were astounding enough for the YouTube channel to call Microsoft's Windows 11 "spyware."

As it turned out, an all-new Windows 11 PC that was never used to browse the Internet contacted not only Windows Update, MSN and Bing servers, but also Steam, McAfee, geo.prod.do, and Comscore ScorecardResearch.com. Apparently, the latest operating system from Microsoft collected and sent telemetry data to various market research companies, advertising services, and the like.

When Tom's Hardware contacted Microsoft, their spokesperson argued that flowing data is common in modern operating systems "to help them remain secure, up to date, and keep the system working as anticipated."

"We are committed to transparency and regularly publish information about the data we collect to empower customers to be more informed about their privacy."
Social Networks

Influence Networks In Russia Misled European Users, TikTok Says (nytimes.com) 121

An anonymous reader quotes a report from the New York Times: Last summer, 1,704 TikTok accounts made a coordinated and covert effort to influence public discourse about the war in Ukraine, the company said on Thursday. Nearly all the accounts were part of a single network operating out of Russia that pretended to be based in Europe and aimed its posts at Germans, Italians and Britons, the company said. The accounts used software to use local languages that amplified pro-Russia propaganda, attracting more than 133,000 followers before being discovered and removed by TikTok.

TikTok disclosed the networks on Thursday in an in-depth report that examined its handling of disinformation in Europe, where it has more than 100 million users, noting that conflict in Ukraine "challenged us to confront a complex and rapidly changing environment." The social media platform compiled the findings to comply with the European Union's voluntaryCode of Practice on Disinformation, which counts Google, Meta and Twitter among its other signatories. TikTok offered the detailed look into its operations as it tried to demonstrate its openness in the face of continued regulatory scrutiny over its data security and privacy practices.

As a newer platform, TikTok is "in a unique position to innovate in the search for solutions to these longstanding industry challenges," Caroline Greer, Tiktok's director of public policy and government relations, said in a blog post on Thursday. The company did not say whether the accounts had ties to the Russian government. In its report, covering mid-June through mid-December 2022, TikTok said it took down more than 36,500 videos, with 183.4 million views, across Europe because they violated TikTok's harmful misinformation policy. The company removed nearly 865,000 fake accounts, with more than 18 million followers between them (including 2.3 million in Spain and 2.2 million in France). There were nearly 500 accounts taken down in Poland alone under TikTok's policy banning impersonation. Early in the fighting in Ukraine last year, the company said, it noticed a sharp rise in attempts to post ads related to political and combat content, even though TikTok does not allow such advertising.
Some of the actions TikTok took to combat this misinformation include:

- started blocking Ukrainian and Russian advertisers from targeting European users
- hired native Russian and Ukrainian speakers to help with content moderation
- worked with Ukrainian-speaking reporters on fact-checking
- created a digital literacy program focused on information about the war
- restricted access to content from media outlets associated with the Russian government
- expanded its use of labels identifying state-sponsored material
- stopped recommending livestreamed videos coming from Russia and Ukraine to European users
Yahoo!

Yahoo To Lay Off More Than 20% of Staff 63

Yahoo plans to lay off more than 20% of its total workforce as part of a major restructuring of its ad tech unit, executives told Axios. The cuts will impact more than 50% of Yahoo's ad tech employees -- more than 1,600 people. Axios reports: In an interview, Yahoo CEO Jim Lanzone stressed that the layoffs are not attributable to financial challenges, but rather, strategic changes to the company's Yahoo for Business advertising unit, which is not profitable. These changes will be "tremendously beneficial for the profitability of Yahoo overall," he said, which will allow the company "to go on offense" and invest more in other parts of its business that are profitable. Yahoo as a whole is profitable and brings in roughly $8 billion in annual revenue, Axios has reported.

Roughly 1,000 positions will be eliminated Thursday, representing 12% of the total planned cuts at Yahoo. The remaining 8% or more of cuts will occur in the second half of this year. Lanzone said he couldn't provide the exact number of future cuts, but confirmed that the total number of layoffs would amount to more than 50% of the ad tech unit's current staff, and more than 20% of Yahoo's current staff.

As part of the changes, Yahoo will shut down a part of its advertising business called its SSP, or supply-side platform, which helps digital publishers sell automated ads against their content. It will also shut down its native advertising platform, called Gemini, and instead will leverage its newly-formed partnership with ad tech giant Taboola to sell native advertising on its own content instead. By moving to Taboola, Yahoo will be able to increase the number of advertisers competing for ad placements on Yahoo properties by 8x, Lanzone said. The company is opting to shut down the SSP business instead of selling it, in part because it didn't want to be locked into a post-sale agreement where it would be forced to use its SSP exclusively, Lanzone said. Working with many different SSPs will help Yahoo optimize its ad revenue.
Businesses

Meta Soars by Most in Decade, Adding $100 Billion in Value (nytimes.com) 12

Meta's stock surged on Thursday after the company reported better-than-expected earnings, said it would buy back billions of dollars in its stock, and overcame a court challenge to its ambitions in the so-called metaverse. The New York Times reports: Shares of the tech giant, the owner of Facebook, Instagram and WhatsApp, climbed more than 23 percent, its biggest daily gain in nearly 10 years. And it was a huge move for a company its size, adding nearly $100 billion in market value in a single day, or about as much as Citigroup's entire market capitalization.

After ending last year with a loss of more than 60 percent, Meta's stock is up more than 50 percent this year, as the mood among tech investors has brightened. The Nasdaq Composite, an index that includes many tech companies, including Meta, has risen nearly 20 percent this year.
The report notes that plenty of challenges remain for the company. "Meta faces setbacks in digital advertising as clients rein in spending because of higher interest rates and inflation," reports The New York Times. "The company is also fighting to retain users drawn to newer apps like TikTok, the short-form video app that Mr. Zuckerberg considers one of his most formidable rivals. The billions that Meta is spending pursuing its founder's vision of the metaverse may not pay off."

In November, Meta laid off more than 11,000 employees in what was the most significant job cuts since its founding in 2004.
Privacy

GoodRx Leaked User Health Data To Facebook and Google, FTC Says (nytimes.com) 31

An anonymous reader quotes a report from The New York Times: Millions of Americans have used GoodRx, a drug discount app, to search for lower prices on prescriptions like antidepressants, H.I.V. medications and treatments for sexually transmitted diseases at their local drugstores. But U.S. regulators say the app's coupons and convenience came at a high cost for users: wrongful disclosure of their intimate health information. On Wednesday, the Federal Trade Commission accused the app's developer, GoodRx Holdings, of sharing sensitive personal data on millions of users' prescription medications and illnesses with companies like Facebook and Google without authorization. [...]

From 2017 to 2020, GoodRx uploaded the contact information of users who had bought certain medications, like birth control or erectile dysfunction pills, to Facebook so that the drug discount app could identify its users' social media profiles, the F.T.C. said in a legal complaint. GoodRx then used the personal information to target users with ads for medications on Facebook and Instagram, the complaint said, "all of which was visible to Facebook." GoodRx also targeted users who had looked up information on sexually transmitted diseases on HeyDoctor, the company's telemedicine service, with ads for HeyDoctor's S.T.D. testing services, the complaint said. Those data disclosures, regulators said, flouted public promises the company had made to "never provide advertisers any information that reveals a personal health condition."

The company's information-sharing practices, the agency said, violated a federal rule requiring health apps and fitness trackers that collect personal health details to notify consumers of data breaches. While GoodRx agreed to settle the case, it said it disagreed with the agency's allegations and admitted no wrongdoing. The F.T.C.'s case against GoodRx could upend widespread user-profiling and ad-targeting practices in the multibillion-dollar digital health industry, and it puts companies on notice that regulators intend to curb the nearly unfettered trade in consumers' health details. [...] If a judge approves the proposed federal settlement order, GoodRx will be permanently barred from sharing users' health information for advertising purposes. To settle the case, the company also agreed to pay a $1.5 million civil penalty for violating the health breach notification rule.

Businesses

The Junkification of Amazon (nymag.com) 158

Why does it feel like Amazon is making itself worse? From a report: Efforts to find independent reviews of Amazon-exclusive products rarely turn up high-quality content; many sites just summarize Amazon reviews in an effort to collect search traffic from Google and eventually affiliate commissions from Amazon itself. You read a little feedback to quell your doubts or ease your mind, then eventually, or quickly, you pluck a spatula out of the cascade. There's a good chance, however, that it won't actually be sold by Amazon but rather by a third-party seller that has spent months or years and many thousands of dollars hustling for search placement on the platform -- its "store," to use Amazon's term, is where you will have technically bought this spatula. There's an even better chance you won't notice this before you order it. In any case, it'll be at your door in a couple of days.

The system worked. But what system? In your short journey, you interacted with a few. There was the '90s-retro e-commerce interface, which conceals a marketplace of literally millions of sellers, each scrapping for relevance, using Amazon as a sales channel for their own semi-independent businesses. It subjected you to the multibillion-dollar advertising network planted between Amazon users and the things they browse and buy. It was shipped to you through a sprawling, submerged logistics empire with nearly a million employees and contractors in the United States alone. You were guided almost entirely by an idiosyncratic and unreliable reputation system, initially designed to review books, that has used years of feedback from hundreds of millions of customers to help construct an alternative universe of sometimes large but often fleeting brands that have little identity or relevance outside of the platform. You found what you were looking for, sort of, through a process that didn't feel much like shopping at all.

This is all normal in that Amazon is so dominant that it sets norms. But its essential weirdness -- its drift from anything resembling shopping or informed consumption -- is becoming harder for Amazon's one-click magic trick to hide. Interacting with Amazon, for most of its customers, broadly produces the desired, expected, and generally unrivaled result: They order all sorts of things; the prices are usually reasonable, and they don't have to think about shipping costs; the things they order show up pretty quickly; returns are no big deal. But, at the core of that experience, something has become unignorably worse. Late last year, The Wall Street Journal reported that Amazon's customer satisfaction had fallen sharply in a range of recent surveys, which cited COVID-related delivery interruptions but also poor search results and "low-quality" items. More products are junk. The interface itself is full of junk. The various systems on which customers depend (reviews, search results, recommendations) feel like junk. This is the state of the art of American e-commerce, a dominant force in the future of buying things. Why does it feel like Amazon is making itself worse? Maybe it's slipping, showing its age, and settling into complacency. Or maybe -- hear me out -- everything is going according to plan.

Google

DOJ Suit To Break Up Google Was Years in the Making for Antitrust Chief (wsj.com) 43

An anonymous reader shares a report: Jonathan Kanter has been one of Google's main legal foes for nearly 15 years. Last week, as the nation's top antitrust cop, he delivered a threat to break up the internet company. Mr. Kanter, the Justice Department's assistant attorney general for antitrust, filed a lawsuit alleging that Google is an illegal monopolist in the market for brokering ads on the internet. Some of the complaints trace back to early 2000s, when Mr. Kanter started questioning Google's role in the digital economy on behalf of his then-legal clients, including Microsoft.

The 140-page lawsuit, which Google, a unit of Alphabet, has said includes untrue allegations and misstatements about its business, embraces charges the government once wrote off as far-fetched. In 2008, the Federal Trade Commission, which also polices threats to competition, said Google wouldn't be able to smother rivals in the digital-advertising world and declined to block its purchase of DoubleClick, an ad broker that the Justice Department now says Google should be forced to sell. The DOJ's lawsuit alleges that threats the FTC dismissed actually came to pass. The company built a moat around its business matching web publishers' supply of ad space with advertisers' demand, according to the DOJ's lawsuit. When new companies tried to compete or customers sought better deals, Google responded by blocking rivals from its platform or buying them outright and forcing them to work only with its products, the lawsuit alleges.

Mr. Kanter, 49 years old, is one of the leaders of a movement that sees big technology companies including Google, Amazon.com, Facebook parent Meta Platforms and Apple as monopolists in the tradition of the 19th-century railroad and oil companies that inspired the original antitrust laws. "Today there is nobody in the world who knows more about that business and the antitrust issues surrounding it than Jonathan," said Charles "Rick" Rule, who worked with Mr. Kanter in private practice. "He has been confronting Google for 15 years." Mr. Kanter has spent most of his legal career in private practice, sometimes defending corporate clients from government investigations, but also representing companies in pressing law enforcers to go after rivals that have grown dominant. He began looking into Google during the 2000s decade on behalf of Microsoft, which the DOJ in 1998 alleged was an illegal monopolist in the personal-computer market in a lawsuit settled in 2001.

Businesses

Drug Maker Paid For 'News' Story on CBS's 60 Minutes, Doctors' Group Alleges (arstechnica.com) 102

A 13-minute segment on a recent episode of CBS's 60 Minutes appeared to be a news story on Novo Nordisk's weight-loss drug Wegovy, but was actually a sponsored promotion violating federal regulations, according to the nonprofit public health advocacy organization Physicians Committee. From a report: The group filed a complaint with the Food and Drug Administration last week, arguing that the segment, which aired on January 1, violates the FDA's "fair balance" requirement. This law requires that drug advertisements give a fair balance to a drug's risks and benefits. The Physicians Committee claims that CBS's 60 Minutes received advertising payments from Novo Nordisk prior to the coverage, and that the aired segment only included experts who had also been paid by Novo Nordisk. The segment lauded the drug with words and phrases such as "highly effective," "safe," "impressive," "fabulous," and "robust," but didn't delve into side effects or alternative treatments and strategies for weight loss.
Google

Apple Beefs Up Smartphone Services in 'Silent War' Against Google (arstechnica.com) 64

Apple is taking steps to separate its mobile operating system from features offered by Google parent Alphabet, making advances around maps, search and advertising that has created a collision course between the Big Tech companies. From a report: The two Silicon Valley giants have been rivals in the smartphone market since Google acquired and popularized the Android operating system in the 2000s. Apple co-founder Steve Jobs called Android "a stolen product" that mimicked Apple's iOS mobile software, then declared "thermonuclear war" on Google, ousting the search company's then-CEO Eric Schmidt from the Apple board of directors in 2009. While the rivalry has been less noisy since, two former Apple engineers said the iPhone maker has held a "grudge" against Google ever since. One of these people said Apple is still engaged in a "silent war" against its arch-rival. It is doing so by developing features that could allow the iPhone-maker to further separate its products from services offered by Google.

[...] The second front in the battle is search. While Apple rarely discusses products while in development, the company has long worked on a feature known internally as "Apple Search," a tool that facilitates "billions of searches" per day, according to employees on the project. Apple's search team dates back to at least 2013, when it acquired Topsy Labs, a start-up that had indexed Twitter to enable searches and analytics. The technology is used every time an iPhone user asks Apple's voice assistant Siri for information, types queries from the home screen, or uses the Mac's "Spotlight" search feature. Apple's search offering was augmented with the 2019 purchase of Laserlike, an artificial intelligence start-up founded by former Google engineers that had described its mission as delivering "high quality information and diverse perspectives on any topic from the entire web."

United States

Google Says US Justice Department Complaint 'Without Merit' (reuters.com) 27

Alphabet's Google says it believes the complaint from the U.S. Department of Justice accusing the company of abusing its dominance in digital advertising is "without merit." From a report: The company also added it will "defend itself vigorously". The government on Tuesday said Google should be forced to sell its ad manager suite, tackling a business that generated about 12% of Google's revenue in 2021 while also playing a vital role in the search engine and cloud company's overall sales. Google, which depends on its advertising business for about 80% of its revenue, said the government was "doubling down on a flawed argument that would slow innovation, raise advertising fees and make it harder for thousands of small businesses and publishers to grow." The federal government has said its Big Tech investigations and lawsuits are aimed at leveling the playing field for smaller rivals who are up against a group of powerful companies that include Amazon, Facebook-owner Meta and Apple.

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