Morning Consult Tech Presented by NCTA: Lawmakers Skeptical of TikTok CEO’s Privacy Reassurances




 


Tech

Essential tech industry news & intel to start your day.
March 24, 2023
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Today’s Top News

TikTok CEO Shou Zi Chew appeared before Congress on Thursday, where he was grilled by representatives who had questions about the video sharing app’s ties to the Chinese government, content moderation practices and data security:

In other top news today:

  • Utah Gov. Spencer Cox (R) signed into law two bills that will restrict children and teenagers from accessing social media without the consent of their parents. The laws, set to go into effect on March 1, 2024, will require companies to give parents or guardians access to their child’s accounts and will establish an in-state curfew that will bar minors from using the platforms from 10:30 p.m. to 6:30 a.m. (Axios)
  • Twitter Inc. announced that starting April 1, it will begin removing “legacy” verified checkmarks given to users of interest to authenticate their identity on the platform prior to Elon Musk’s takeover. Verified checkmarks will still be available to businesses, government officials and users who pay a monthly subscription to Twitter Blue. (TechCrunch)
  • Microsoft Corp., accused by rivals of abusing its dominance by bundling its OneDrive cloud storage service with its Windows operating systems, has failed to address the concerns of antitrust complaints raised by competitors Nextcloud GmbH and OVH Groupe SA, opening the company up to a potential formal investigation from E.U. regulators. (Reuters)

Happening today

  • Think tank R Street will host an event titled “Startups and the Data Privacy Patchwork” that will explore how startup companies can navigate the growing number of state-level data privacy laws. Speakers include Olga Medina, director of policy at The Software Alliance, and Sam Caucci, founder and chief executive officer of 1Huddle.
 

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What Else You Need to Know

General
 

Musk’s New Texas Neighbors Alarmed by His Huge Development Plans

Julie Bykowicz and Ted Mann, The Wall Street Journal

Elon Musk’s companies are opening facilities across the country that come with promises of skilled jobs and economic growth. But some residents of this mostly rural area near Austin are watching with alarm as farmland turns into industrial development.

 

How Twitch lost its way

Nathan Grayson, The Washington Post

For Twitch, the live-streaming platform watched by over 30 million viewers each day, 2022 was not an easy year. Now, with the company set to lay off hundreds of employees in the next few weeks, it’s feeling the impacts of tumult — and bracing for more.

 

A US Agency Rejected Face Recognition—and Landed in Big Trouble

Khari Johnson, Wired

Officials working on Login.gov, used to access dozens of government sites, worried about algorithmic bias. Their decision breached federal security rules.

 
Antitrust and Competition
 

Network fee not the fix for European telecoms financial problems, Meta says

Foo Yun Chee, Reuters

Meta Platforms on Thursday voiced its strongest criticism to date of a push by EU telecoms operators to get Big Tech to foot additional network costs, saying this would not solve their financial problems and also ignores tech companies’ hefty investments.

 

British regulator softens stance on Microsoft-Activision deal competition concerns

Ryan Browne, CNBC

The U.K.’s competition regulator on Friday said it has narrowed the scope of its investigation into Microsoft’s takeover of Activision, saying it no longer believes the deal will lead to a substantial lessening of competition in the console gaming market.

 

China releases top chip investor to bolster semiconductor efforts

Qianer Liu and Ryan McMorrow, Financial Times

Head of Hua Capital freed from detention as Beijing seeks expert help to navigate tough western sanctions.

 
Artificial Intelligence/Automation
 

OpenAI connects ChatGPT to the internet

Kyle Wiggers, TechCrunch

OpenAI today launched plugins for ChatGPT, which extend the bot’s functionality by granting it access to third-party knowledge sources and databases, including the web.

 

Venture capitalists race to land next AI deal on Big Tech’s turf

Krystal Hu and Jeffrey Dastin, Reuters

In December and January, several venture capitalists from the U.S. and Britain raced to Paris to vie for a stake in a new artificial intelligence company that could reshape how people work.

 

For Smarter Robots, Just Add Humans

Will Knight, Wired

Autonomous machines are still too clumsy for delicate tasks. But humans can operate mechanical arms from afar, turning physical labor into remote work.

 

Walmart laying off hundreds of US workers at five e-commerce fulfillment centers

Siddharth Cavale, Reuters

Hundreds of workers at five U.S. Walmart facilities that fulfill e-commerce orders are being asked to find jobs within 90 days at other company locations, a spokesperson confirmed to Reuters. Walmart has been investing heavily in automation over the past few years, partnering with companies such as Knapp to help it cut down the number of steps it takes employees to process e-commerce orders to five from 12, which has been implemented at its Pedricktown, New Jersey location, for instance.

 
Telecom, Wireless and Internet Access
 

Here’s where Verizon is building new Fios connections

Diana Goovaerts, Fierce Telecom

Verizon is planning to build 500,000 new Fios passings in 2023 as it works to increase its overall footprint to 18 million locations. An operator representative told Fierce it is “actively building” in all nine of the states where it already offers Fios service.

 
Mobile Technology
 

Google’s new app sync feature makes it easier to download your favorite apps across Android devices

Timi Cantisano, XDA Developers

It looks like more convenience is on the way for Android users, as the Google Play Store has begun testing smartphone app synchronization. While this isn’t a wide roll-out, we’re getting a sneak peek at the feature, thanks to users posting their findings on social media.

 

Attention, Travelers: Now Is the Best Time to Switch to eSIM

Brian X. Chen, The New York Times

The digital version of the SIM card, included on many newer phones, is set to become prevalent. It also offers affordable cellular data abroad.

 
Cybersecurity and Privacy
 

The Linus Tech Tips YouTube hack is the latest in a line of crypto scam breaches

Tom Warren, The Verge

Google has been watching YouTube accounts get hacked for years — is there more the tech giant could do to protect creators?

 

The DEA Quietly Turned Apple’s AirTag Into A Surveillance Tool

Thomas Brewster, Forbes

Apple’s quarter-size location tracker was hidden in a pill press by the DEA to conduct surveillance. The AirTag’s small size and reliability could make it an attractive tool for cops.

 

Yellen Says TikTok-Like Data Security Risks Are Growing More Common

Alex Barinka, Bloomberg

Treasury Secretary Janet Yellen, who oversees an interagency task force that’s reviewing national security concerns around TikTok Inc., said she’s seeing a growing number of situations that have raised concerns similar to those prompted by the app.

 
Social Media and Content Moderation
 

Snap is offering its AR tools to enterprise customers

Ivan Mehta, TechCrunch

Snap users are already quite familiar with the company’s expertise in AR thanks to Lenses and Filters. Now, the social media company is unveiling AR Enterprise Services (ARES) to offer those tools to businesses. As part of the launch, Snap is offering a “Shopping Suite” to brands that can help them get more customers.

 

Meta Sued by Its Home County Over Youth Social Media Addiction

Joel Rosenblatt, Bloomberg

Meta Platforms Inc. was sued by the school board in the company’s home county for allegedly addicting students to its social media platforms and contributing to a mental health crisis.

 

Creators can succeed elsewhere if TikTok is banned, Warner says

Matt Berg, Politico

If TikTok is banned nationwide, Sen. Mark Warner believes creators who make their living off the app will be able to succeed on other social media platforms.

 

The hottest place to watch the TikTok congressional hearing was TikTok

J.D. Capelouto, Semafor

As TikTok CEO Shou Zi Chew was grilled by members of Congress on Thursday, tens of thousands tuned into the hearing using the app that Chew runs.

 

Who Is Shou Zi Chew, the TikTok CEO Trying to Reassure America?

Stu Woo, The Wall Street Journal

Singapore army reservist and ex-Goldman banker says misconceptions about Chinese-owned app need to be clarified.

 

TikTok Claims It’s Limiting Teen Screen Time. Teens Say It Isn’t.

Sapna Maheshwari, The New York Times

This month, the company announced a new 60-minute “daily screen time limit” for users under 18. But for most young users, staying on the app takes just a few taps.

 

UK parliament bans TikTok from official devices

Robert Wright, Financial Times

Concerns mount about security implications of using Chinese-owned social media.

 

Twitter Blue subscriptions roll out globally, despite missing many promised features

Mitchell Clark and Jay Peters, The Verge

People all over the world can now pay for Twitter, as the company has announced that its Twitter Blue subscription service is now available globally. 

 

TikTokers on edge as Congress grills CEO

Erin Doherty, Axios

It was a near-perfect split screen: As lawmakers ripped TikTok in a congressional hearing with the company’s CEO on Thursday, the app’s users took to the platform to defend it.

 

If the US Bans TikTok, WeChat Might Be Next

Amanda Florian, Wired

WeChat has 19 million users in the US and is a lifeline for people across the Chinese diaspora.

 
Tech Workforce
 

Amazon Union Prevails in Ruling on Warehouse Access for Organizing

Noam Scheiber, The New York Times

Federal labor regulators said that Amazon had illegally barred off-duty employees from work sites and that the policy was aimed at union backers.

 

Oracle Cuts Cerner Jobs After CEO Promised to ‘Clean Up’ Health Unit

Brody ford, Bloomberg

Oracle Corp. has cut jobs at its Cerner digital health-records unit, particularly in marketing, as the software giant works to integrate last year’s $28.3 billion acquisition.

 

Shivon Zilis, Musk Associate, Leaves OpenAI Board

Becky Peterson, The Information

Shivon Zilis, director of operations at Elon Musk’s Neuralink, has stepped down from the board of OpenAI, according to a person familiar with the move and Zilis’ LinkedIn profile.

 







Morning Consult