FTC and States File Lawsuits That Aim to Break Up Facebook

After an 18+ month investigation, the Federal Trade Commission and regulators from 46 states have officially accused Facebook of anticompetitive behavior by purchasing rivals. The separate lawsuits were filed in the U.S. District Court for the District of Columbia. Facebook currently owns three major messaging apps and the suits call for the company’s purchase of Instagram (for $1 billion in 2012) and WhatsApp (for $19 billion in 2014) to be undone. Since the acquisitions, both messaging apps have exploded in popularity. Continue reading FTC and States File Lawsuits That Aim to Break Up Facebook

Nielsen to Introduce New TV Ratings That Include Streaming

Nielsen will debut a new TV ratings system beginning in Q4 of 2022 that will incorporate digital viewing, including streaming TV, into its metrics of current traditional TV audiences. In 2021, it will preview the new data with existing ratings. Nielsen will need the approval of the TV networks and tech companies and hopes to gain ad seller and buyer support by the start of the fall 2024 TV season. Nielsen will also need to integrate its new metrics across platforms and data sources to ensure reliably comparable information. Continue reading Nielsen to Introduce New TV Ratings That Include Streaming

EU Commission Recalibrates Its Positions with Big Tech, U.S.

The European Union is eagerly anticipating the inauguration of President-elect Joe Biden, even as it scrutinizes proposals targeting U.S. Big Tech behavior and, in some cases, business models in an effort to reestablish itself as the “global tech cop.” Although the Electoral College has yet to convene and vote and inauguration day isn’t until January 20, the European Commission and Council are already issuing policy papers on how they hope to partner with the new U.S. administration on numerous issues. Continue reading EU Commission Recalibrates Its Positions with Big Tech, U.S.

Facebook Plans to Buy Customer Service Startup Kustomer

Facebook disclosed plans to buy Kustomer, a customer relationship management startup, in a deal valued by sources at close to $1 billion. Crunchbase stated the New York-based Kustomer has raised about $170 million in venture capital funding. Kustomer would help Facebook provide customer support on its main platform and its services such as WhatsApp, Instagram and Facebook Messenger. The deal, subject to regulatory scrutiny, comes as Facebook is already being investigated for its acquisition of startups as anticompetitive behavior. Continue reading Facebook Plans to Buy Customer Service Startup Kustomer

Facebook Tech Problems Impact Ad Campaigns, Businesses

After Facebook’s “conversion lift” tool overestimated the effectiveness of advertising campaigns, impacting marketers total spend, the company is offering millions of dollars in credit. The error was undetected for a year beginning August 2019. Some of the advertisers said their confidence in Facebook’s metrics is now shaken, especially at a time of cutting costs and concern over ad spending. Small businesses are also seeing their accounts blocked without explanation and no recourse due to Facebook’s increased reliance on AI and automated filters. Continue reading Facebook Tech Problems Impact Ad Campaigns, Businesses

Snap’s New Spotlight Feature Aims to Encourage Viral Videos

Snap is introducing a video-sharing feature called Spotlight designed to help its Snapchat app better compete with TikTok and Instagram Reels. Spotlight allows the creation of content that could go viral, a marked difference from its long-time focus on communication between friends and curated posts. Snap will spend $1+ million a day to reward those who post the best content and highlight top snaps to its 249+ million daily users in a feed they can swipe or tap. With Spotlight, Snap hopes customers increase the time they spend on the app. It also opens the door to advertising. Continue reading Snap’s New Spotlight Feature Aims to Encourage Viral Videos

Game Consoles See Revenue Growth with Digital Distribution

With the coronavirus pandemic, more people are staying at home and, according to Newzoo, 700+ million of them are playing video games on consoles. The market research firm said the console industry is slated to rake in $45 billion in revenue this year. Microsoft and Sony have unveiled new consoles, and Niko Partners analyst Daniel Ahmad stated that consoles are a “much more profitable business” than a decade or more ago, especially since digital distribution of games enables the game companies to enjoy bigger profit margins than before. Continue reading Game Consoles See Revenue Growth with Digital Distribution

Lawsuits Against Facebook Likely Following Antitrust Probes

Sources said that state and federal investigators plan to bring antitrust charges against Facebook, with a focus on whether its acquisitions of Instagram and WhatsApp created an anticompetitive environment. Investigators examined how Instagram and WhatsApp changed after they were acquired and whether customers had fewer privacy protections. When Facebook purchased WhatsApp in 2014, it vowed to customers and regulators to preserve its strong privacy protections, but later tried to integrate user data into its other services. Continue reading Lawsuits Against Facebook Likely Following Antitrust Probes

Facebook, Twitter Chief Execs Support Section 230 Changes

At a Senate Judiciary Committee, Facebook chief executive Mark Zuckerberg and Twitter chief executive Jack Dorsey reported that their companies made improvements in blocking misinformation during the 2020 presidential election, compared to their inability to stop Russian meddling in the 2016 election. Judiciary chair Lindsey Graham (R-South Carolina) said both companies will face modifications to Section 230 of the Communications Decency Act, which protects them from liability for user-posted content, and the two chief execs expressed cautious support for the idea. Continue reading Facebook, Twitter Chief Execs Support Section 230 Changes

Twitter Intros Ephemeral Tweets, Gathering Spaces for Audio

Twitter is launching Fleets, a feature that allows users to post photos or text that will disappear after 24 hours. Snapchat pioneered the ephemeral post, followed by Instagram and Facebook. Rollout of the Stories-like feature is moving forward, but has been scaled back as Twitter addresses “some performance and stability problems.” The platform’s “global town square” continues to be its “marquee product” but, said Twitter director of design Joshua Harris, the Fleets feature creates a space with less pressure for users who lurk but don’t post. The company is also testing Spaces, a new audio feature similar to Clubhouse, a startup that debuted earlier this year. Continue reading Twitter Intros Ephemeral Tweets, Gathering Spaces for Audio

NBCU and PayPal Ink Deal to Create TV-Based E-Commerce

NBCUniversal and PayPal have inked a deal that will make it easier for viewers to buy products suggested by TV programs. The move is part of the media conglomerate’s effort to create a new revenue stream as the television advertising business faces new challenges. NBCUniversal earlier launched e-commerce on its Syfy cable network and, later, on Spanish-language Telemundo. With PayPal on board, it will now allow viewers to buy products from 60 retailers; PayPal will also make shoppable online gift guides available. Continue reading NBCU and PayPal Ink Deal to Create TV-Based E-Commerce

TikTok Popularity Surge Continues as U.S. Ultimatum Looms

ByteDance, the Chinese parent company of TikTok, asked the U.S. Court of Appeals for the D.C. Circuit for more time to work out the preliminary deal to sell its U.S. operations to Oracle and Walmart. November 12 is the deadline for the deal to be completed. The company also stated it had been in discussions with the Committee on Foreign Investments in the United States (CFIUS), but “feedback had stopped” in recent weeks despite the approaching deadline. App Annie reports that TikTok’s substantial growth is expected to continue throughout 2021. Continue reading TikTok Popularity Surge Continues as U.S. Ultimatum Looms

European Commission Files Antitrust Charges Against Amazon

After months of anticipation, the European Union, led by competition chief Margrethe Vestager, is finally filing antitrust charges against Amazon, with the belief it has enough hard evidence to charge the Big Tech company. The EU claims that Amazon used data to build copycat products that undermines independent businesses, especially in France and Germany. EU regulators also have an ongoing investigation into Amazon’s alleged practice of favorable treatment for its “Buy Box” and “Prime Label” features. Continue reading European Commission Files Antitrust Charges Against Amazon

Private 5G Networks Bring Services to Rural U.S., Companies

Private 5G networks are being built across the country, mainly intended to connect machines rather than smartphones. This follows in the footsteps of utility companies, retailers and large enterprises that once built their own private 4G networks. Private networks are more readily customized and can offer better reliability and security than Wi-Fi over large areas. In rural Wisconsin, for example, WiConnect is benefitting from 5G to keep its 1,400 households connected to a broadband network that’s faster than ever before. Continue reading Private 5G Networks Bring Services to Rural U.S., Companies

WhatsApp Debuts Disappearing Messages, Expands in India

In response to the pressure for privacy on social media apps, Facebook-owned WhatsApp debuted a setting to automatically delete messages after seven days. This is intended to make users feel more secure in communicating one-on-one and in group chats. As WhatsApp product manager Zafir Khan noted, “records of most in-person conversations don’t exist forever, so conversations on WhatsApp shouldn’t have to either.” He added that, nowadays, people are “using WhatsApp messaging for very deep and intimate conversations.” Continue reading WhatsApp Debuts Disappearing Messages, Expands in India