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The Media

What Happens When Major Online Platforms Lower Traffic to News Sites? (yahoo.com) 101

"The major online platforms are breaking up with news," reports the New York Times: Campbell Brown, Facebook's top news executive, said this month that she was leaving the company. Twitter, now known as X, removed headlines from the platform days later. The head of Instagram's Threads app, an X competitor, reiterated that his social network would not amplify news. Even Google — the strongest partner to news organizations over the past 10 years — has become less dependable, making publishers more wary of their reliance on the search giant. The company has laid off news employees in two recent team reorganizations, and some publishers say traffic from Google has tapered off... Some executives of the largest tech companies, like Adam Mosseri at Instagram, have said in no uncertain terms that hosting news on their sites can often be more trouble than it is worth because it generates polarized debates...

Publishers seem resigned to the idea that traffic from the big tech companies will not return to what it once was. Even in the long-fractious relationship between publishers and tech platforms, the latest rift stands out — and the consequences for the news industry are stark. Many news companies have struggled to survive after the tech companies threw the industry's business model into upheaval more than a decade ago. One lifeline was the traffic — and, by extension, advertising — that came from sites like Facebook and Twitter. Now that traffic is disappearing. Top news sites got about 11.5% of their web traffic in the United States from social networks in September 2020, according to Similarweb, a data and analytics company. By September this year, it was down to 6.5%...

The sharp decline in referral traffic from social media platforms over the past two years has hit all news publishers, including The New York Times. The Wall Street Journal noticed a decline starting about 18 months ago, according to a recording of a September staff meeting obtained by the Times. "We are at the mercy of social algorithms and tech giants for much of our distribution," Emma Tucker, the Journal's editor-in-chief, told the newsroom in the meeting...

Google cut some members of its news partnership team in September, and this week it laid off as many as 45 workers from its Google News team, the Alphabet Workers Union said. (The Information, a tech news website, reported the Google News layoffs earlier.) "We've made some internal changes to streamline our organization," Jenn Crider, a Google spokesperson, said in a statement... Jaffer Zaidi [Google's vice president of global news partnerships], wrote in an internal memo reviewed by the Times that the team would be adopting more artificial intelligence. "We had to make some difficult decisions to better position our team for what lies ahead," he wrote...

Privately, a number of publishers have discussed what a post-Google traffic future may look like and how to better prepare if Google's AI products become more popular and further bury links to news publications.

The Courts

Frying Pan Company Sued for Claiming Temperatures That Rival the Sun (theverge.com) 124

Can you heat up a pan to 30,000 degrees Fahrenheit? That's the burning question at the center of this proposed class action lawsuit, which claims the advertising for SharkNinja's nonstick cookware violates the laws of physics and thermodynamics. From a report: While SharkNinja is the company best known for its Shark robovacs and Ninja kitchen gadget, this lawsuit takes issue with the Ninja NeverStick Premium Cookware collection, a line of pots and pans it advertises as having superior nonsticking and nonflaking qualities thanks to its manufacturing process.

Instead of making its pans at a measly 900-degree temperature that other brands use, SharkNinja says it heats up the cookware to a maximum of 30,000 degrees Fahrenheit. That process, according to SharkNinja, fuses "plasma ceramic particles" to the surface of the pan, "creating a super-hard, textured surface that interlocks with our exclusive coating for a superior bond." But Patricia Brown, the person who filed this lawsuit, isn't buying it. As cited in Brown's lawsuit, NASA recently said the "surface of the Sun is a blisteringly hot 10,340 degrees Fahrenheit," meaning SharkNinja's manufacturing process reaches about three times that temperature.

Space

A Simple Streetlight Hack Could Protect Astronomy From Urban Light Pollution (space.com) 160

Tereza Pultarova reports via Space.com: Light pollution is a growing threat to astronomy, but a new streetlamp technology could restore clear views of the night sky. [...] A study published earlier this year found that stars are disappearing from the sky at an average rate of 10% per year. This trend affects even the world's most remote observatories. Germany-based startup StealthTransit recently tested a solution to this growing issue. "Unfortunately, this problem haunts almost all observatories today," Vlad Pashkovsky, StealthTransit's founder and CEO, told Space.com in an email. "Modern telescopes are highly sensitive and feel the impact of outdoor lighting of cities located at the distance of 50 or even 200 kilometers [30 to 120 miles]. This means that virtually every observatory on Earth either already needs, or will need in the future 10 years, protection from the light of large cities."

StealthTransit's solution relies on three components: A simple device that makes LED lights flicker at a very high frequency that is imperceptible to the human eye, a GPS receiver, and a specially designed shutter on the telescope's camera that can blink in sync with the LED lights. The GPS technology guides the telescope's shutter to open only during the fleeting moments when the LED lights are switched off. The experiments, conducted at an observatory in the Caucasus Mountains in Russia, showed that the technology, dubbed the DarkSkyProtector, could reduce unwanted sky glow in astronomical images by 94%. "We can say that the telescope was seeing almost a dark sky at this time," Pashkovsky said. "The important thing about our technology is that it makes all kinds of lights astronomy-friendly, including outdoor advertising and indoor lighting in apartments, offices and stores."

The technology could filter out lights from nearby towns and villages as well as those surrounding the observatory itself. It might sound impractical to refit an entire town with devices that allow lamps to blink, but Pashkovsky said that most existing LED lights can operate in the blinking mode and that new lamps designed specifically with sky protection in mind would be no costlier than existing LED technology. The most expensive element of the DarkSkyProtector system is the telescope shutter, which needs to be lightweight and agile enough to blink about 150 times per second. StealthTransit tested the prototype shutter on a 24-inch-wide (60 centimeters) telescope and hopes to make the technology available for larger telescopes. Although StealthTransit's technology is not yet ready for commercial use, Pashkovsky said, the firm hopes to have a product fit for the world's best telescopes in five to seven years.

Privacy

CFPB Moves To Bar Financial Firms From 'Hoarding' a Consumer's Data (politico.com) 9

An anonymous reader quotes a report from Politico: The Consumer Financial Protection Bureau on Thursday released a landmark proposal restricting how financial institutions handle consumer data. [...] The proposed rule -- which faces months of feedback and lobbying from industry and consumer groups before it's approved -- would bar financial firms from "hoarding" a consumer's data, the agency said. It would require companies to share information, at a customer's request, with other businesses offering competing products and prevent them from charging for it.

Banks would be required to make personal financial data available to consumers free of charge, and companies that access a person's data would not be able to use it for targeted advertising. Access to a person's data would have to be reauthorized annually, and consumers would have the right to revoke access at any time. The proposal, which implements Section 1033 of the 2010 Dodd-Frank law, also "seeks to move the market away from risky data collection practices" such as screen scraping, the CFPB said.
"It is often really daunting for a consumer to switch banks, in part because it's difficult to take their financial transaction history data to a new bank," White House National Economic Council Director Lael Brainard said on a call with reporters. "Today's rule will help ensure financial companies compete based on service quality and pricing."
Movies

'Netflix Effect' Returns As Studios License Old Shows To Their Streaming Rival (ft.com) 31

Christopher Grimes reports via the Financial Times: Some of Netflix's competitors are reversing a streaming war tactic by licensing their old TV shows and movies to the streamer -- boosting its programming offerings but also potentially squeezing its profit margins, analysts say. Netflix relied heavily on programming that it licensed from other companies when it launched its streaming service in 2007. But after Walt Disney, NBCUniversal, Paramount and the then Time Warner launched their own streaming services, they pulled many of their shows from Netflix to avoid feeding a company that had grown into an arch-competitor. With legacy media groups under pressure to produce streaming profits, however, licensing revenue is looking attractive again -- even if it comes from Netflix. This summer, Warner Bros Discovery's HBO network began licensing a handful of older shows to Netflix, including Insecure, Six Feet Under, Ballers and Band of Brothers.

Analysts at Morgan Stanley said the return of licensing deals was a "long-term positive" for Netflix and would "pad" its lead over competitors in streaming. But the bank added that the cost of licensing -- along with the Netflix's investments in gaming and other sectors -- could add pressure to its profit margins in 2024. The analysts raised their outlook for Netflix's overall cash spending next year by $500mn to $17.7bn. Netflix will report results on Wednesday, with investors expected to focus on whether it plans to increase subscription prices and signs of progress on its new advertising tier. The latest data on its password sharing crackdown will also be watched.

[T]he studios' experiments with licensing deals appear to have given some old shows new life. After NBCUniversal licensed its show Suits -- which aired from 2011-19 and starred Meghan Markle -- to Netflix in June, the show experienced a revival. The legal drama was in the top spot on the Nielsen Streaming top 10 for three months, an example of the "Netflix effect" on older shows. Bloys said licensing shows to Netflix had also boosted traffic for the programs on Warner Discovery's Max streaming platform, home to HBO programming including Ballers, a sports drama that ran from 2015-19. Ballers entered the Nielsen top 10 after it went to Netflix, and Insecure, a comedy starring Issa Rae that ran from 2016-21, had a similar boost.

Advertising

Comcast Resists Call To Stop Its Misleading '10G Network' Claims (arstechnica.com) 39

Jon Brodkin reports via Ars Technica: An advertising industry group urged Comcast to stop its "10G" ads or modify them to state that 10G is an "aspirational" technology rather than something the company actually provides on its cable network today. The National Advertising Division (NAD), part of the advertising industry's self-regulatory system run by BBB National Programs, ruled against Comcast after a challenge lodged by T-Mobile. In its decision announced Thursday, the NAD recommended that Comcast "discontinue its '10G' claims" or "modify its advertising to (a) make clear that it is implementing improvements that will enable it to achieve '10G' and that it is aspirational or (b) use '10G' in a manner that is not false or misleading, consistent with this decision."

Comcast plans to appeal the decision, so it won't make any changes to marketing immediately. If Comcast loses the appeal and agrees to change its practices, it would affect more than just a few ads because Comcast now calls its entire broadband network "10G." "In February 2023, Comcast rebranded its fixed Internet network as 'Xfinity 10G Network' to signify technological upgrades to its network that are continuing to be implemented," the NAD said. Comcast's website claims that the "Xfinity 10G Network is already here! You'll see continual increases in network speed and reliability. No action is required on your part to join the Xfinity 10G Network." It also claims that 10G is "complementary" to the 5G mobile network.

Social Networks

New York Seeks To Limit Social Media's Grip On Children's Attention (nytimes.com) 23

An anonymous reader quotes a report from the New York Times: New York State officials on Wednesday unveiled a bill to protect young people from potential mental health risks by prohibiting minors from accessing algorithm-based social media feeds unless they have permission from their parents. Gov. Kathy Hochul and Letitia James, the state attorney general, announced their support of new legislation to crack down on the often inscrutable algorithms, which they argue are used to keep young users on social media platforms for extended periods of time -- sometimes to their detriment. If the bill is passed and signed into law, anyone under 18 in New York would need parental consent to access those feeds on TikTok, Instagram, Facebook, YouTube, X and other social media platforms that use algorithms to display personalized content. While other states have sought far-reaching bans and measures on social media apps, New York is among a few seeking to target the algorithms more narrowly.

The legislation, for example, would target TikTok's central feature, its ubiquitous "For You" feed, which displays boundless reams of short-form videos based on user interests or past interactions. But it would not affect a minor's access to the chronological feeds that show posts published by the accounts that a user has decided to follow. The bill would also allow parents to limit the number of hours their children can spend on a platform and block their child's access to social media apps overnight, from midnight until 6 a.m., as well as pause notifications during that time.

The bill in New York, which could be considered as soon as January when the 2024 legislative session begins, is likely to confront resistance from tech industry groups. The bill's sponsors, State Senator Andrew Gounardes and Assemblywoman Nily Rozic, said they were readying for a fight. But Ms. Hochul's enthusiastic support of the bill -- she rarely joins lawmakers to introduce bills -- is a sign that it could succeed in the State Capitol, which Democrats control. A second bill unveiled on Wednesday is meant to protect children's privacy by prohibiting websites from "collecting, using, sharing, or selling personal data" from anyone under 18 for the purpose of advertising, unless they receive consent, according to a news release. Both bills would empower the state attorney general to go after platforms found in violation.

Google

YouTube TV, Which Costs $73 a Month, Agrees To End '$600 Less Than Cable' Ads (arstechnica.com) 19

Google has agreed to stop advertising YouTube TV as "$600 less than cable" after losing an appeal of a previous ruling that went against the company. Google said it will "modify or cease the disputed advertising claim." From a report: The case was handled in the advertising industry's self-regulatory system, not in a court of law. The National Advertising Review Board (NARB) announced today that it rejected Google's appeal and recommended that the company discontinue the YouTube TV claim. YouTube TV launched in 2017 for $35 a month, but the base package is $72.99 after the latest price hike in March 2023. Google's "$600 less than cable" claim was challenged by Charter, which uses the brand name Spectrum and is the second-biggest cable company after Comcast. The National Advertising Division (NAD) previously ruled in Charter's favor but Google appealed the decision to the NARB in August.

"Charter contended the $600 figure was inaccurate, arguing that its Spectrum TV Select service in Los Angeles only cost around $219 a year more than Google's YouTube TV service," according to a MediaPost article in August. A Google ad claimed that YouTube TV provided $600 in "annual average savings" compared to cable as of January 2023. A disclosure on the ad said the price was for "new users only" and that the $600 annual savings was "based on a study by SmithGeiger of the published cost of comparable standalone cable in the top 50 Nielsen DMAs, including all fees, taxes, promotion pricing, DVR box rental and service fees, and a 2nd cable box."

AI

Adobe's Next-Gen Firefly 2 Offers Vector Graphics, More Control and Photorealistic Renders (engadget.com) 6

Andrew Tarantola reports vai Engadget: Just seven months after its beta debut, Adobe's Firefly generative AI is set to receive a trio of new models as well as more than 100 new features and capabilities, company executives announced at the Adobe Max 2023 event on Tuesday. The Firefly Image 2 model promises higher fidelity generated images and more granular controls for users and the Vector model will allow graphic designers to rapidly generate vector images, a first for the industry. The Design model for generating print and online advertising layouts offers another first: text-to-template generation.

Firefly Image 2 is the updated version of the existing text-to-image system. Like its predecessor, this one is trained exclusively on licensed and public domain content to ensure that its output images are safe for commercial use. It also accommodates text prompts in any of 100 languages. Adobe's AI already works across modalities, from still images, video and audio to design elements and font effects. As of Tuesday, it also generates vector art thanks to the new Firefly Vector model. Currently available in beta, this new model will also offer Generative Match, which will recreate a given artistic style in its output images. This will enable users to stay within bounds of the brand's guidelines, quickly spin up new designs using existing images and their aesthetics, as well as seamless, tileable fill patterns and vector gradients.

The final, Design model, is geared heavily towards advertising and marketing professionals for use in generating print and online copy templates using Adobe Express. Users will be able to generate images in Firefly then port them to express for use in a layout generated from the user's natural language prompt. Those templates can be generated in any of the popular aspect ratios and are fully editable through conventional digital methods. The Firefly web application will also receive three new features: Generative Match, as above, for maintaining consistent design aesthetics across images and assets. Photo Settings will generate more photorealistic images (think: visible, defined pores) as well as enable users to tweak images using photography metrics like depth of field, blur and field of view. The system's depictions of plant foliage will reportedly also improve under this setting. Prompt Guidance will even rewrite whatever hackneyed prose you came up with into something it can actually work from, reducing the need for the wholesale re-generation of prompted images.

Facebook

Facebook's Sexist, Ageist Ad-Targeting Violates California Law, Court Finds (arstechnica.com) 71

An anonymous reader quotes a report from Ars Technica: Facebook may have to overhaul its entire ad-targeting system after a California court ruled (PDF) last month that the platform's practice of routinely targeting ads by age, gender, and other protected categories violates a state anti-discrimination law. The decision came after a 48-year-old Facebook user, Samantha Liapes, fought for years to prove that Facebook had discriminated against her as an older woman using the platform's ad-targeting system to shop for life insurance policies.

Liapes filed a class-action lawsuit against Facebook in 2020. In her complaint, Liapes alleged that "Facebook requires all advertisers to choose the age and gender of its users who will receive ads, and companies offering insurance products routinely tell it to not send their ads to women or older people." Further, she alleged that Facebook's ad-delivery algorithm magnifies the problem by using these required inputs to serve the ads to "lookalike audiences." Through its algorithm, Liapes alleged that she found that Facebook "discriminates against women and older people," by intentionally excluding them from seeing certain life insurance ads. This, Liapes alleged, caused harm by preventing her from signing up for deals that "often change and may expire" -- deals which she said were disproportionately being advertised on Facebook to younger and/or male audiences. As evidence, Liapes pointed to ads that Facebook did not serve to her -- allegedly because advertisers used the platform's Audience Selection and Lookalike Audience tools to exclude her -- as an older woman [...]. "As a result, she had a harder time learning about those products or services," Liapes' complaint alleged. [...]

Initially, a court agreed with Facebook's arguments that Liapes had not provided sufficient evidence establishing Facebook's intent or demonstrating harms caused, but rather than amend her complaint, Liapes appealed. Then, in what tech law expert Eric Goldman on his blog called a "shocking conclusion," a California court last month reversed that initial decision, finding instead that Facebook's ad-targeting tools are not neutral, discriminate against users by age and gender, and are not immune under Section 230 of the Communications Decency Act. Goldman -- who joked that Liapes wanting more Facebook ads is "a desire shared by almost no one" -- said that the potential impact of this ruling goes beyond possibly shaking up Facebook's ad system. It also seemingly implicates every other ad network by finding that "any gender- or age-based ad targeting for any product or service (and targeting based on any other protected characteristics) could violate the Unruh Act." If the ruling is upheld, that could "have devastating effects on the entire Internet ecosystem," Goldman warned.
"The court's single-minded determination to find a valid discrimination claim under these conditions casts a long and troubling shadow over the online advertising industry," Goldman wrote in his blog. "Who needs new privacy laws if the Unruh Act already bans most ad targeting?"

"The opinion never expressly says that the Unruh Act regulates ad targeting," Goldman told Ars. "It takes some reading between the lines to reach that conclusion."
EU

Should New Tech Rules Apply To Microsoft's Bing, Apple's iMessage, EU Asks (reuters.com) 38

EU antitrust regulators are asking Microsoft's users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's iMessage, Reuters reported Monday, citing people familiar with the matter. From the report: The European Commission in September opened investigations to assess whether Microsoft's Bing, Edge and Microsoft Advertising as well as Apple's iMessage should be subject to the Digital Markets Act (DMA). The probes came after the companies contested the EU competition regulator labelling these services as core platform services under the DMA.

The DMA requires Microsoft, Apple, Alphabet's Google, Amazon, Meta Platforms and ByteDance to allow for third-party apps or app stores on their platforms and to make it easier for users to switch from default apps to rivals, among other obligations. The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services.

Google

Google Made Billions With Secret Change to Ad-Auction Algorithm, Witness Testifies (yahoo.com) 46

An economist testified that Google made billions of dollars in extra ad revenue starting in 2017 — by making a secret change to its auction algorithm that bumped their revenues up 15%. Bloomberg reports: Michael Whinston, a professor of economics at the Massachusetts Institute of Technology, said Friday that Google modified the way it sold text ads via "Project Momiji" — named for the wooden Japanese dolls that have a hidden space for friends to exchange secret messages. The shift sought "to raise the prices against the highest bidder," Whinston told Judge Amit Mehta in federal court in Washington.

Google's advertising auctions require the winner to pay only a penny more than the runner-up. In 2016, the company discovered that the runner-up had often bid only 80% of the winner's offer. To help eliminate that 20% between the runner-up and what the winner was willing to pay, Google gave the second-place bidder a built-in handicap to make their offer more competitive, Whinston said, citing internal emails and sealed testimony by Google finance executive Jerry Dischler earlier in the case...

About two-thirds, more than 60%, of Google's total revenue comes from search ads, Dischler said previously, amounting to more than $100 billion in 2020.

In 2021 Google was also accused of running "a secret program to track bids on its ad-buying platform," according to the New York Post (citing reporting by the Wall Street Journal). A Texas-led antitrust suit accused Google "of using the information to gain an unfair market advantage that raked in hundreds of millions of dollars annually, according to a report."

And the Post's article also mentioned "an alleged hush-hush deal in which Google allegedly guaranteed that Facebook would win a fixed percentage of advertising deals."
Crime

Hundreds of US Schools Hit By Potentially Organized Swatting Hoaxes, Report Says (arstechnica.com) 60

An anonymous reader quotes a report from Ars Technica: Within the past year, there have been approximately five times more school shooting hoaxes called in to police than actual school shootings reported in 2023. Where data from Everytown showed "at least 103 incidents of gunfire on school grounds" in 2023, The Washington Post recently uncovered what seems to be a coordinated campaign of active shooter hoaxes causing "swattings" -- where police respond with extreme force to fake crimes -- at more than 500 schools nationwide over the past year. In just one day in February, "more than 30 schools were targeted," The Post reported.

The Post "examined police reports, emergency call recordings, body-camera footage, or call logs in connection with incidents in 24 states," which seemed to reveal a "distinct pattern" potentially linking swatting hoaxes nationwide. A man who "speaks with a heavy accent" -- and possibly uses a device or app to alter his voice in real time -- relies on a virtual private network (VPN) to mask his IP address, then places the hoax calls on non-emergency lines using free Internet-calling services. He frequently pretends to be a teacher hiding from the fake shooter on campus and sometimes falsely reports student shootings. To some law enforcement officials, the voice sounds too similar from call to call to be chalked up to coincidence. The Post stitched together audio that shows why many authorities believe these hoax calls might be coming from the same caller, whose motivations are currently unknown. It's possible the hoax calls are being orchestrated by one person with a hostile compulsion or by one or several perpetrators advertising swatting services available for hire online. [...]

According to The Post, the FBI has been investigating this string of school shooting hoaxes, but it's unclear how far that investigation has gotten -- mostly because tracing the hoax calls has perplexed many law enforcement agencies nationwide. Tracing calls is difficult partly because many VPN providers outside the US don't always cooperate with law enforcement, and some of the most popular free Internet-calling services only require an email address to sign up. However, The Post reported that it has increasingly become clear to law enforcement that one particular Internet-calling service appears to be the most popular choice for hoax callers reporting school shootings: TextNow. One police captain in Lousiana, Shannon Mack -- who is described as specializing in "cases involving Internet-based phone services -- told The Post that "nine times out of 10," hoax calls she has investigated have come from a TextNow number.

Microsoft

Microsoft CEO Says Tech Giants Battling For Content To Build AI 9

Microsoft chief executive Satya Nadella said Monday tech giants were competing for vast troves of content needed to train artificial intelligence, and complained Google was locking up content with expensive and exclusive deals with publishers. From a report: Testifying in a landmark U.S. trial against its rival Google, the first major antitrust case brought by the U.S. since it sued Microsoft in 1998, Nadella testified the tech giants' efforts to build content libraries to train their large language models "reminds me of the early phases of distribution deals." Distribution agreements are at the core of the U.S. Justice Department's antitrust fight against Google. The government says that Google, with some 90% of the search market, illegally pays $10 billion annually to smartphone makers like Apple and wireless carriers like AT&T and others to be the default search engine on their devices.

The clout in search makes Google a heavy hitter in the lucrative advertising market, boosting its profits. Nadella said building artificial intelligence took computing power, or servers, and data to train the software. On servers, he said: "No problem, we are happy to put in the dollars." But without naming Google, he said it was "problematic" if other companies locked up exclusive deals with big content makers. "When I am meeting with publishers now, they say Google's going to write this check and it's exclusive and you have to match it," he said.
The Courts

'Embarrassing' Court Document Google Wanted to Hide Finally Posted Online (arstechnica.com) 44

America's Department of Justice "has finally posted what judge Amit Mehta described at the Google search antitrust trial as an 'embarrassing' exhibit that Google tried to hide from the public," reports Ars Technica: The document in question contains meeting notes that Google's vice president for finance, Michael Roszak, "created for a course on communications," Bloomberg reported. In his notes, Roszak wrote that Google's search advertising "is one of the world's greatest business models ever created" with economics that only certain "illicit businesses" selling "cigarettes or drugs" "could rival."

At trial, Roszak told the court that he didn't recall if he ever gave the presentation. He said that the course required that he tell students "things I don't believe as part of the presentation." He also claimed that the notes were "full of hyperbole and exaggeration" and did not reflect his true beliefs, "because there was no business purpose associated with it." According to Bloomberg, Google repeatedly objected to the document being shared in court, claiming it was irrelevant to the DOJ's case. Then, after Mehta allowed the DOJ to present the document as evidence, Google tried to seal off Roszak's testimony on the document...

Beyond likening Google's search advertising business to illicit drug markets, Roszak's notes also said that because users got hooked on Google's search engine, Google was able to "mostly ignore the demand side" of "fundamental laws of economics" and "only focus on the supply side of advertisers, ad formats, and sales." This was likely the bit that actually interested the DOJ. "We could essentially tear the economics textbook in half," Roszak's notes said. Part of the DOJ's case argues that because Google has a monopoly over search, it's less incentivized to innovate products that protect consumers from harm like invasive data collection.

A Google spokesman told Bloomberg that Roszak's statements "don't reflect the company's opinion" and "were drafted for a public speaking class in which the instructions were to say something hyperbolic and attention-grabbing." The spokesman also noted that Roszak "testified he didn't believe the statements to be true."

Businesses

H&R Block, Meta, and Google Slapped With RICO Suit, Allegedly Schemed to Scrape Taxpayer Data (gizmodo.com) 31

Anyone who has used H&R Block's tax return preparation services since 2015 "may have unintentionally helped line Meta and Google's pocket," reports Gizmodo: That's according to a new class action lawsuit which alleges the three companies "jointly schemed" to install trackers on the H&R Block site to scan and transmit tax data back to the tech companies which then used elements of the data to engage in targeted advertising.

Attorneys bringing the case forward claim the three companies' conduct amounts to a "pattern of racketeering activity" covered under the Racketeer Influenced and Corrupt Organizations Act (RICO), a tool typically reserved for organized crime. "H&R Block, Google, and Meta ignored data privacy laws, and passed information about people's financial lives around like candy," Brent Wisner, one of the attorneys bringing forward the complaint said.

The lawsuit, filed in the Northern District of California this week, stems from a bombshell Congressional report released earlier this year detailing the way multiple tax preparation firms, including H&R Block, "recklessly" shared the sensitive tax data of tens of millions of Americans without proper safeguards. At issue are the tax preparation firms' use of tracking "pixels" placed on their websites. These trackers, which the lawsuit refers to as "spy cams" would allegedly scan tax documents and reveal a variety of personal tax information, including a filer's name, filing status, federal taxes owed, address, and number of dependents. That data was then anonymized and used for targeted advertising and to train Meta's AI algorithms, the congressional report notes.

The attorneys argue that H&R Block, Meta, and Google "explicitly and intentionally" entered into an agreement to violate taxpayers' privacy rights for financial gain, according to the article. The suit seeks refunds and punitive damages.
Facebook

Norway Wants Facebook Behavioral Advertising Banned Across Europe (theregister.com) 8

Jude Karabus writes via The Register: Norway has told the European Data Protection Board (EDPB) it believes a countrywide ban on Meta harvesting user data to serve up advertising on Facebook and Instagram should be made permanent and extended across Europe. The Scandinavian country's Data Protection Authority, Datatilsynet, had been holding back Facebook parent Meta from scooping up data on its citizens with the threat of fines of one million Kroner (about $94,000) per day if it didn't comply.

In August, it said Meta hadn't been playing ball and started serving up the daily fines. However, the ban that resulted in these fines, put into place in July, expires on November 3 â" hence Norway's request for a "binding decision." The July order came after a Court of Justice of the European Union (CJEU) ruling [PDF] earlier that month stating Meta's data processing operation was also hauling in protected data â" race and ethnicity, religious affiliation, sexual orientation etc. â" when it cast its behavioral ads net.

Norway is not a member of the EU but is part of the European single market, and the CJEU, as Europe's top court, has the job of making sure the application and interpretation of law within the market is compliant with European treaties (this part would apply to Norway) as well as ensuring that legislation adopted by the EU is applied the same way across all Member States. Datatilsynet's ruling said the central processing of that data by the American company was putting Meta in violation of the EU's General Data Protection Regulation.
A spokesperson for Meta said it was "surprised" by the Norwegian authority's actions, "given that Meta has already committed to moving to the legal basis of consent for advertising in the EU/EEA."

It added: "We remain in active discussions with the relevant data protection authorities on this topic via our lead regulator in the EU, the Irish Data Protection Commission, and will have more to share in due course."
Advertising

Reddit Is Removing Ability To Opt Out of Ad Personalization Based On Your Activity (techcrunch.com) 54

Ivan Mehta writes via TechCrunch: Reddit said Wednesday that the platform is revamping its privacy settings with an aim to make ad personalization and account visibility toggles consistent. Most notably though, it is removing the ability to opt out of ad personalization based on Reddit activity. The company said that it will still have opt-out controls in "select countries" without specifying which ones. It mentioned in a blog post that users won't see more ads but they will see better-targeted ads following this change.

The company is essentially removing the option to not track you based on whatever you do on Reddit. Additionally, Reddit is consolidating two toggles on showing ads based on activity and information from partners into one toggle. So there is no way to separate those two settings now. Reddit is seemingly removing toggles for getting post recommendations based on "general location" and activity on partner sites and apps. It's not clear if this means those parameters will be used for post suggestions by default and there is no way to turn them off.

The social network said it will also roll out controls to limit certain advertising categories such as alcohol, weight loss, dating, gambling pregnancy and parenting. The company noted that ad-limiting controls will possibly show you fewer ads from mentioned categories if the toggles are turned off, but won't possibly filter out all ads. Reddit justified this by saying it uses manual tagging and machine learning to label ads, so there is a chance that it is not 100% accurate. Reddit is also simplifying its location customization setting under a single menu, which will be easily accessible through settings on apps and on the web.

Microsoft

Microsoft Says Apple Used Bing Offer as Google 'Bargaining Chip' (bloomberg.com) 41

A Microsoft executive said the company has tried for years to displace Alphabet's Google as the default web browser on iPhones, but that Apple never seriously considered switching to Microsoft's Bing and was content to use it as a "bargaining chip" with the search giant. From a report: "Apple is making more money on Bing existing than Bing does," Mikhail Parakhin, the head of Microsoft's advertising and web services, testified during the US government's antitrust trial against Google in Washington. "We are always trying to convince Apple to use our search engine." Parakhin, who joined Microsoft in 2019 from Russian search engine Yandex NV, said Microsoft met with Apple as recently as 2021 to discuss a potential switch to Bing, but didn't make any progress.

In response to Google's lawyers, Parakhin said it was "uneconomical for Microsoft to invest more" in technology for the mobile search market. "Unless Microsoft gets a more significant, or firmer guarantee of distribution, it makes it uneconomical to invest." Apple has used Google as the default search engine in its Safari browser since 2003 in exchange for a share of the advertising revenue earned through searches made on its devices.

Software

Unity Dev Group Dissolves After 13 Years Over 'Completely Eroded' Company Trust (arstechnica.com) 23

Kyle Orland writes via Ars Technica: The "first official Unity user group in the world" has announced that it is dissolving after 13 years because "the trust we used to have in the company has been completely eroded." The move comes as many developers are saying they will continue to stay away from the company's products even after last week's partial rollback of some of the most controversial parts of its fee structure plans.

Since its founding in 2010, the Boston Unity Group (BUG) has attracted thousands of members to regular gatherings, talks, and networking events, including many technical lectures archived on YouTube. But the group says it will be hosting its last meeting Wednesday evening via Zoom because the Unity of today is very different from the Dave Helgason-led company that BUG says "enthusiastically sanctioned and supported" the group at its founding.

"Over the past few years, Unity has unfortunately shifted its focus away from the games industry and away from supporting developer communities," the group leadership wrote in a departure note. "Following the IPO, the company has seemingly put profit over all else, with several acquisitions and layoffs of core personnel. Many key systems that developers need are still left in a confusing and often incomplete state, with the messaging that advertising and revenue matter more to Unity than the functionality game developers care about."

BUG says the install-fee terms Unity first announced earlier this month were "unthinkably hostile" to users and that even the "new concessions" in an updated pricing model offered late last week "disproportionately affect the success of indie studios in our community." But it's the fact that such "resounding, unequivocal condemnation from the games industry" was necessary to get those changes in the first place that has really shaken the community to its core. "We've seen how easily and flippantly an executive-led business decision can risk bankrupting the studios we've worked so hard to build, threaten our livelihoods as professionals, and challenge the longevity of our industry," BUG wrote. "The Unity of today isn't the same company that it was when the group was founded, and the trust we used to have in the company has been completely eroded."

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