Big Tech Braces for Potential Impact of EU Digital Markets Act

The European Union’s Digital Markets Act, applicable as of May 1, finds tech giants scrambling to anticipate regional compliance. The regulatory framework aims to ensure tech giants don’t abuse their clout by taking advantage of consumers and smaller companies. Within two months, companies providing core platform services will have to notify the European Commission and provide all relevant information. The Commission will then have two months to identify companies that fit the DMA definition of “gatekeeper.” Those that do will be subject to DMA rules and have six months to conform. Continue reading Big Tech Braces for Potential Impact of EU Digital Markets Act

BuzzFeed News Closing as the Industry Continues to Struggle

BuzzFeed is closing its Pulitzer Prize-winning BuzzFeed News operation in a consolidation aimed at improving the company’s balance sheet. “We are reducing our workforce by approximately 15 percent today across our business, content, tech and admin teams, and beginning the process of closing BuzzFeed News,” BuzzFeed CEO Jonah Peretti explained in a memo to staff on Thursday. The layoffs will affect about 180 employees. The company will continue operating the meme-driven BuzzFeed.com while HuffPost, acquired in 2020 from Verizon, will carry the mantle for news reporting. Continue reading BuzzFeed News Closing as the Industry Continues to Struggle

Utah’s Social Media Law Requires Age Verification for Minors

Utah has become the first state to pass laws requiring social media platforms to obtain age verification before users can register. The law is designed to force social networks to enforce parental consent provisions. As of March 2024, companies including Facebook, Instagram, Snap, TikTok and Twitter will be required to secure proof of age for Utah users via a valid ID instead of just letting people type in their birth date at sign-up. While Utah is out front on the issue, nine other states have proposed legislation that includes age checks, most recently Arkansas. Continue reading Utah’s Social Media Law Requires Age Verification for Minors

AMERICA Act Proposes to Curtail Big Tech’s Ad Dominance

A bipartisan Senate group is supporting a bill aimed at reducing the online advertising dominance of Big Tech platforms like Google, Meta and others. Introduced last week by Mike Lee (R-Utah) and championed by Elizabeth Warren (D-Massachusetts), the AMERICA Act — short for Advertising Middlemen Endangering Rigorous Internet Competition Accountability Act — the bill prohibits companies that “process more than $20 billion in digital ad transactions” from owning multiple parts of the digital ecosystem presenting the advertisements. Proponents say the AMERICA Act could radically reshape the advertising framework that underpins the Internet economy. Continue reading AMERICA Act Proposes to Curtail Big Tech’s Ad Dominance

Alibaba to Split into Six New Companies with Potential IPOs

SoftBank-owned Alibaba Group — with headquarters in Hangzhou, China — plans to split into six independent companies that may seek separate IPOs, the company announced as Chinese authorities appear to be winding down a regulatory clampdown on the country’s powerful technology sector. The business empire assembled around e-commerce by industrialist Jack Ma these past 20 years was at its peak valued at more than $800 billion but is now assessed at about one-fourth that amount. The company’s stock soared on the news adding about $32 billion in global value, a rising tide that also lifted competitors’ boats. Continue reading Alibaba to Split into Six New Companies with Potential IPOs

Google Takes Its Bard Search Bot Public, a Rival to ChatGPT

Google has opened a public waitlist for its Bard AI chatbot to users in the U.S. and UK. The technology, which Google intends to compete with OpenAI’s ChatGPT, will be made available to increments of users on a rolling basis, the company said, with more countries and languages to come. Bard was announced last month. Powered by a lightweight, optimized version of Google’s LaMDA large language model, the company calls it an “early experiment” that will eventually be updated with more sophisticated models. The same can be said for ChatGPT, which already has more than 100 million users. Continue reading Google Takes Its Bard Search Bot Public, a Rival to ChatGPT

Changes Ahead for Big Tech When EU Regulations Enforced

The European Union’s implementation of the Digital Services Act (DSA) and the Digital Markets Act (DMA) is poised to trigger worldwide changes on familiar platforms like Google, Instagram, Wikipedia and YouTube. The DSA addresses consumer safety while the DMA deals with antitrust issues. Proponents say the new laws will help end the era of self-regulating tech companies. Although as in the U.S., the DSA makes clear that platforms aren’t liable for illegal user-generated content. Unlike U.S. law, the DSA does allow users to sue when tech firms are made aware of harmful content but fail to remove it. Continue reading Changes Ahead for Big Tech When EU Regulations Enforced

Senate Message to Big Tech Is Expect Reform to Section 230

Bipartisan support is growing in the Senate for changes to Section 230, the part of the Communications Decency Act that grants federal immunity to social media platforms and other tech giants for content users post on their sites. At a combative Senate Judiciary Committee hearing Wednesday, lawmakers from both parties called for gutting major provisions of the legal liability shield, on which Big Tech has come to rely. Senators accused tech firms of putting profits over user safety and slammed the U.S. Supreme Court, which appeared to approach the matter with caution last month in Gonzalez v. Google. Continue reading Senate Message to Big Tech Is Expect Reform to Section 230

Biden Challenges Big Tech, Calls for Children’s Online Safety

President Biden’s second State of the Union speech Tuesday night included calls for stronger consumer privacy protections and tougher antitrust laws in direct challenge to what many perceive as the unchecked power of Big Tech. “Pass bipartisan legislation to strengthen antitrust enforcement and prevent big online platforms from giving their own products an unfair advantage,” Biden stated, urging Congress to “stop Big Tech from collecting personal data on kids and teenagers online, ban targeted advertising to children, and impose stricter limits on the personal data these companies collect on all of us.” Continue reading Biden Challenges Big Tech, Calls for Children’s Online Safety

Google’s Investment in Anthropic Heats Up the AI Arms Race

Google has taken a 10 percent stake in artificial intelligence startup Anthropic for about $300 million. The move follows reports that the Alphabet-owned company has prioritized an acceleration of AI efforts, so as not to get left behind by OpenAI and its increasingly popular ChatGPT app. The cash infusion gives Google a roughly 10 percent stake in the San Francisco-based Anthropic, which Financial Times described as among “a new generation of companies trying to claim a place in the booming field of ‘generative AI,’” a sector that has triggered a veritable “AI arm’s race,” according to FT. Continue reading Google’s Investment in Anthropic Heats Up the AI Arms Race

Apple Hardware Sales Decline, Services Remain Bright Spot

Apple’s three-year streak of record-setting sales and profit came to an end with the company’s fiscal first quarter for 2023. The three-month period ending December 31, 2022 produced revenue of $117.2 billion, down 5 percent year-over-year. Apple said the results capped an earnings season “in which the world’s biggest technology companies mostly struggled to shake off a postpandemic hangover.” It was the Cupertino-based company’s first quarterly revenue decline in almost four years, attributable largely to supply chain disruptions in China causing a holiday sales season shortage of the high-end iPhone 14 Pro and 14 Pro Max. Continue reading Apple Hardware Sales Decline, Services Remain Bright Spot

Supreme Court Asks DOJ to Weigh In on Online Speech Laws

The Supreme Court of the United States has delayed its decision in a request to hear three cases that would test the constitutionality of Texas and Florida laws that propose to allow lawsuits on the basis of political censorship by online platforms. Although the cases would not be heard until the court’s next session, which extends into 2024, the laws remain blocked in the interim. Rather than deciding outright whether it will grant certiorari, SCOTUS on Monday asked the Justice Department to file the Biden administration’s position, forestalling immediate deliberations. Continue reading Supreme Court Asks DOJ to Weigh In on Online Speech Laws

UK Online Safety Bill to Exert Pressure on Social Media Execs

British legislators seem ready to make good on a threat to add criminal liability and jail time for high-level social media executives who fail to protect children from online harm as part of the Online Safety Bill. While the bill also aims to protect adults from fraud and malfeasance, its strictest provisions are geared toward child protection. The current proposal could win approval by the House of Commons within the week, and would then move to the upper chamber, the House of Lords, later in the quarter for further revision. Enactment is anticipated by year’s end.
Continue reading UK Online Safety Bill to Exert Pressure on Social Media Execs

CES: Experts Ask If Gaming Will Lead Shift to the Metaverse

The idea that gaming might be the industry sector that eventually leads everyone else into the metaverse is being discussed extensively online and elsewhere. During a compelling CES panel, GamesBeat lead writer Dean Takahashi moderated an exploratory conversation about that possibility with a group of today’s leading game innovators and executives. Takahashi noted that the panel’s concept comes in part from Meta vice president of content & play Jason Rubin, who said that the metaverse will need a game engine, therefore game developers will be the first to create it. Continue reading CES: Experts Ask If Gaming Will Lead Shift to the Metaverse

CES: As Risks Rise, Experts Reimagine Path to Cyber Safety

At a CES panel, CISA director Jen Easterly sounded the alarm on the current state of cybersecurity in the U.S. “We cannot accept that ten years from now it will be the same or worse than it is now,” she said. “All the critical infrastructure we rely on is underpinned by a technology base that was created in an insecure way.” As head of the Cybersecurity and Infrastructure Security Agency, Easterly is in a position to assess the coming damage, projected to be $8 trillion this year. Moderator Rajeev Chand, Wing Venture Capital partner led Easterly and CrowdStrike chief executive George Kurtz in a discussion on how to halt the increase of cyber-insecurity. Continue reading CES: As Risks Rise, Experts Reimagine Path to Cyber Safety