Walnut wants to crack open flexibility for healthcare bills

Healthcare insurance, if you’re lucky to have it, only covers a subset of conditions in the United States. As a result, patients can often get burdened with horror story charges, like huge deductibles, out-of-network costs and expensive co-pays. So for the uninsured and insured alike, innovative ways of managing big bills are in high demand — especially as uncertainty remains around how COVID-19 and long-haul symptoms will be handled by patients and payers.

Walnut, founded by Roshan Patel, is a point-of-sale lending company with a healthcare twist. Walnut uses a “buy now, pay later” model, popularized by Affirm and Klarna, to help patients pay for healthcare over a period of time, instead of in one $3,000 chunk. Walnut works with healthcare providers so that a patient’s bill can be paid back through $100-a-month increments for 30 months, instead of one aggressive credit card swipe.

A patient using Walnut to pay healthcare bills. Image Credits: Walnut

It’s a sweet deal, but Patel added one more detail that he thinks makes Walnut stand out: The startup doesn’t charge any interest or fees to consumers.

“Almost every ‘buy now, pay later’ company in e-commerce charges interest or fees, and every personal loan provider charges interest or fees, but we do not,” he said. “And that’s really important to me, not making healthcare any more expensive than it already is. It’s a very patient-friendly product.”

Companies that use the buy now, pay later model with zero interest or fees need to make revenue somehow, and in Walnut’s case it is by charging healthcare providers a percentage of each sale or transaction.

If a provider’s collection rate for an out-of-pocket is 50%, Walnut would go to them and say “give us a 40% discount, and we’ll guarantee the cash for you upfront.” The startup will take the risk, and then the provider is able to make 60% of the collection rate.

Now, ideally, a provider would want to get 100% of payments they are owed, but that is wishful thinking. Patel explained that a large number of bills go unpaid due to bankruptcies or a default on payments (the average collections rate for hospitals out of pocket is less than 20%). Because of this, a company like Walnut has room to offer at least some stable upfront cash to hospitals, even if it ends up being 60% of overall bills versus 100%.

The company uses “extensive underwriting models” to figure out if a patient should qualify for a loan. Patel says that the startup goes beyond using credit score, which he describes as an “outdated metric”, and instead looks at thousands of data points from different providers, from side hustle income to spending habits on things like groceries and bills.

Walnut’s biggest challenge, says Patel, is to underwrite the population and pay the healthcare provider upfront in cash. It then collects from the patient on the back end, which comes with its own amount of risk.

“To be able to take on that risk for patients that are less credit-worthy is a very challenging problem, and I don’t think it’s really solved yet in healthcare,” he said.

The startup is starting by working with small private practices of one to five physicians that focus on specialties like dentistry, dermatology and fertility.

A big part of Walnut’s success will be determined by if it can attract people that truly need flexible financing options. For example, the company doesn’t have any hospitals as a partner yet, which would tap a larger group of patients that likely need flexible financing options the most. Right now, “the people who get elective-care surgery are the ones that can afford it.”

But Patel doesn’t see this as a disconnect; instead, he sees it as an opportunity to widen access to elective medical care to more people.

“I talked to a person last week who has no teeth and wants dentures but it costs $6,000,” he said. “That person should be able to afford it, and we enabled them to pay $100 a month for it.”

Walnut’s two biggest customer groups are the uninsured (people who have lost their jobs from COVID-19), and consumers who have high deductible plans.

Walnut isn’t the first. PrimaHealth Credit, Walnut’s closest competitor, offers point-of-sale lending procedures for elective medical procedures. Think surgeries like cataract work or dental work. The company said the service is currently available in Arizona, California, Florida, Oklahoma and Texas, and will be expanded to all 50 states this year. Walnut, comparatively, is mostly focused on the East Coast and plans to expand nationwide by the end of this year.

PrimaHealth’s average loan size is $1,800, and Walnut’s average loan size is $5,000.

The company is currently piloting with a handful of healthcare providers in dermatology, dentistry and fertility. It has had more than 500 patient loan applications, totaling over $4.6 million in application volume year-to-date. Patel says that Walnut only accepted a fraction of these applications, but declined to share what percent of money it has lent so far. As Walnut refines its model, it might be able to cover other categories.

Up until this point, Walnut has been lending off of its own balance sheet. In order to truly scale, it will need to get a new source of capital — either a credit line, debt financing round or venture capital — to offer more loans. Patel says that the startup is in talks with banks, and turned down a debt offer due to size and rate.

Venture capital seems to be the solution for now: The startup announced that it has raised a $3.6 million seed round from investors including Gradient Ventures, Afore Capital, 2048 Ventures, Supernode Ventures, TA Ventures, Polymath Capital, Tack Ventures, Awesome People Ventures, Newark Ventures and NKM Capital. Angels include the CEOs of Giphy and PillPack, and the CTO of Rampm Financial as well as an NFL coach. The company is also a part of Plaid’s inaugural accelerator.

“I don’t want to be yet another startup trying to offer you an undifferentiated insurance plan,” Patel said.


Source: Tech Crunch

Twitch expands its rules against hate and abuse to include behavior off the platform

Twitch will start holding its streamers to a higher standard. The company just expanded its hate and harassment policy, specifying more kinds of bad behavior that break its rules and could result in a ban from the streaming service.

The news comes as Twitch continues to grapple with reports of abusive behavior and sexual harassment, both on the platform and within the company itself. In December, Twitch released an updated set of rules designed to take harassment and abuse more seriously, admitting that women, people of color and the LGBTQ+ community were impacted by a “disproportionate” amount of that toxic behavior on the platform.

Twitch’s policies now include serious offenses that could pose a safety threat, even when they happen entirely away from the streaming service. Those threats include violent extremism, terrorism, threats of mass violence, sexual assault and ties to known hate groups.

The company will also continue to evaluate off-platform behavior in cases that happen on Twitch, like an on-stream situation that leads to harassment on Twitter or Facebook.

“While this policy is new, we have taken action historically against serious, clear misconduct that took place off service, but until now, we didn’t have an approach that scaled,” the company wrote in a blog post, adding that investigating off-platform behavior requires additional resources to address the complexity inherent in those cases.

To handle reports for its broadened rules, Twitch created a dedicated email address (OSIT@twitch.tv) to handle reports about off-service behavior. The company says it has partnered with a third-party investigative law firm to vet the reports it receives.

Twitch cites its actions against former President Donald Trump as the most high-profile instance of off-platform behavior resulting in enforcement. The company disabled Trump’s account following the attack on the U.S. Capitol and later suspended him indefinitely, citing fears that he could use the service to incite violence.

It’s hard to have a higher profile than the president, but Trump isn’t the only big time banned Twitch user. Last June, Twitch kicked one of its biggest streamers off of the platform without providing an explanation for the decision.

Going on a year later, no one seems to know why Dr. Disrespect got the boot from Twitch, though the company’s insistence that it only acts in cases with a “preponderance of evidence” suggests his violations were serious and well corroborated.

 


Source: Tech Crunch

Okta expands into privileged access management and identity governance reporting

Okta today announced it was expanding its platform into a couple of new areas. Up to this point, the company has been known for its identity access management product, giving companies the ability to sign onto multiple cloud products with a single sign on. Today, the company is moving into two new areas: privileged access and identity governance

Privileged access gives companies the ability to provide access on an as-needed basis to a limited number of people to key administrative services inside a company. This could be your database or your servers or any part of your technology stack that is highly sensitive and where you want to tightly control who can access these systems.

Okta CEO Todd McKinnon says that Okta has always been good at locking down the general user population access to cloud services like Salesforce, Office 365 and Gmail. What these cloud services have in common is you access them via a web interface.

Administrators access the speciality accounts using different protocols. “It’s something like secure shell, or you’re using a terminal on your computer to connect to a server in the cloud, or it’s a database connection where you’re actually logging in with a SQL connection, or you’re connecting to a container, which is the Kubernetes protocol to actually manage the container,” McKinnon explained.

Privileged access offers a couple of key features including the ability to limit access to a given time window and to record a video of the session so there is an audit trail of exactly what happened while someone was accessing the system. McKinnon says that these features provide additional layers of protection for these sensitive accounts.

He says that it will be fairly trivial to carve out these accounts because Okta already has divided users into groups and can give these special privileges to only those people in the administrative access group. The challenge was figuring out how to get access to these other kinds of protocols.

The governance piece provides a way for security operations teams to run detailed reports and look for issues related to identity. “Governance provides exception reporting so you can give that to your auditors, and more importantly you can give that to your security team to make sure that you figure out what’s going on and why there is this deviation from your stated policy,” he said.

All of this when combined with the $6.5 billion acquisition of Auth0 last month is part of a larger plan by the company to be what McKinnon calls the identity cloud. He sees a market with several strategic clouds and he believes identity is going to be one of them.

“Because identity is so strategic for everything, it’s unlocking your customer, access, it’s unlocking your employee access, it’s keeping everything secure. And so this expansion, whether it’s customer identity with zero trust or whether it’s doing more on the workforce identity with not just access, but privileged access and identity governance. It’s about identity evolving in this primary cloud,” he said.

While both of these new products were announced today at the company’s virtual Oktane customer conference, they won’t be generally available until the first quarter of next year.


Source: Tech Crunch

Putting Belfast on the TechCrunch map — TechCrunch’s European Cities Survey 2021

TechCrunch is embarking on a major new project to survey European founders and investors in cities outside the larger European capitals.

Over the next few weeks, we will ask entrepreneurs in these cities to talk about their ecosystems, in their own words.

This is your chance to put Belfast on the Techcrunch Map!

If you are a tech startup founder or investor in the city please fill out the survey form here.

This is the follow-up to the huge survey of investors (see also below) we’ve done over the last six or more months, largely in capital cities.

These formed part of a broader series of surveys we’re doing regularly for Extra Crunch, our subscription service that unpacks key issues for startups and investors.

In the first wave of surveys, the cities we wrote about were largely capitals. You can see them listed here.

This time, we will be surveying founders and investors in Europe’s other cities to capture how European hubs are growing, from the perspective of the people on the ground.

We’d like to know how your city’s startup scene is evolving, how the tech sector is being impacted by COVID-19 and generally how your city will evolve.

We leave submissions mostly unedited and are generally looking for at least one or two paragraphs in answers to the questions.

So if you are a tech startup founder or investor in one of these cities please fill out our survey form here.

Thank you for participating. If you have questions you can email mike@techcrunch.com and/or reply on Twitter to @mikebutcher.


Source: Tech Crunch

Apple launches an app for testing devices that work with ‘Find My’

Apple has launched a new app, Find My Certification Asst., designed for use by MFi (Made for iPhone) Licensees, who need to test their accessories’ interoperability with Apple’s Find My network. The network helps users find lost Apple devices — like iPhones, AirPods and Mac computers, among other things — but is poised to add support for finding other compatible accessories manufactured by third parties.

The launch of the testing app signals that Apple may be ready to announce the launch of the third-party device program in the near future.

According to the app’s description, MFi Licensees can use Find My Certification Asst. to test the “discovery, connection and other key requirements” for their accessories that will incorporate Apple’s Find My network technology. It also points to information about the Find My network certification program on Apple’s MFi Portal at mfi.apple.com, which currently references Find My network as a MFi program technology that’s “launching soon.”

The new app’s screenshots indicate it allows device makers to run a wide variety of tests in areas like connectivity, sound (for example, if the item can make a noise when misplaced), firmware, key management, NFC, power and more.

Image Credits: App Store screenshot

The app became publicly available on Sunday, April 4 on the iOS App Store, according to Sensor Tower data. It’s brand new so is not yet ranking in any App Store categories, including its own, “Developer Tools,” or others. It also has no ratings and reviews at this time.

The app’s launch is step toward the larger goal of opening up the Apple Find My network to third parties and Apple’s planned launch of its own new accessory, AirTags.

Apple at last year’s Worldwide Developer Conference had first announced it would open up Find My to third-party devices after facing pressure from regulators in the U.S. and Europe who had been looking into, among other things, whether Apple had been planning to give itself an advantage with its forthcoming launch of AirTags, a competitor to Tile’s lost-item finder.

Image Credits: screenshot of FMCA app

A prominent Apple critic, Tile had complained that AirTags would be able to connect with Apple’s U1 chips, which use UWB (ultra-wideband) technology for more precise finding capabilities, and at a Congressional hearing noted that AirTags would work with Apple’s own Find My app, which ships by default on Apple devices. This, Tile believed, would give Apple a first-party advantage in the lost-item finder market that Tile had successfully established and dominated for years.

Apple, in response, opened up third-party developer access to its U1 chip via its “NearbyInteraction” framework last year. As a result, Tile in Jan. 2021 announced its plan to launch a new tracker powered by UWB.

More recently, Apple updated its Find My app to include a new tab called “Items” in preparation for the app’s expanded support for AirTags and other third-party accessories, like those from Tile and others. This “Items” tab is enabled in latest Apple’s iOS 14.5 beta release, where the app explains how the Find My app will now be able to help users keep track of their everyday items — including accessories and other items that are compatible with Find My.

However, Tile (and likely others) feel that Apple’s concessions still disadvantage their businesses because participation in Apple’s FindMy program means that the third-party device maker would have to abandon its existing app and instead require its customers to use Apple’s FindMy app — effectively turning over its customers and their data to Apple.

It’s worth noting that, upon launch, the app features an icon that shows three items: headphones, a backpack and a suitcase. Not coincidentally, perhaps, Tile’s first integrations were with Bose headphones and luggage and bag makers, Away and Herschel.

Apple has not responded to a request for comment about the new app’s launch.


Source: Tech Crunch

Giving EV batteries a second life for sustainability and profit

Electric cars and trucks seem to have everything going for them: They don’t produce tailpipe emissions, they’re quieter than their fossil-fuel-powered counterparts and the underlying architecture allows for roomier and often sleeker designs. But the humble lithium-ion battery powering these cars and trucks leads a difficult life. Irregular charging and discharge rates, intense temperatures and many partial charge cycles cause these batteries to degrade in the first five to eight years of use, and eventually, they end up in a recycling facility.

Instead of sending batteries straight to recycling for raw material recovery — and leaving unrealized value on the table — startups and automakers are finding ways to reuse batteries as part of a small and growing market.

Low consumer uptake and the relatively recent introduction of EVs to the market has kept the supply of used batteries low, but automakers are already pursuing a number of second-life projects.

That’s because the average electric vehicle lithium-ion battery can retain up to 70% of its charging capacity after being removed. The business proposition for second-life batteries is therefore intuitive: Before sending the battery to a recycler, automakers can potentially generate additional revenue by putting it to use in another application or selling it to a third party.

Low consumer uptake and the relatively recent introduction of EVs to the market has kept the supply of used batteries low, but automakers are already pursuing a number of second-life projects.

To name only a few such projects that have popped up in recent years, Nissan is using old batteries to power small robots; French carmaker Groupe Renault, with partners, is launching stationary energy storage systems made with old EV batteries; and Audi Environmental Foundation, the daughter organization of Audi AG, worked with Indian startup Nunam to build solar nanogrids out of used e-tron battery modules.

Other OEMs, like Lucid Motors, BMW and Proterra, are incorporating reuse principles into their battery design. In fact, Lucid has built its batteries to work across its electric vehicle and energy storage products, including in second-life uses, Chief Engineer Eric Bach told TechCrunch. And BMW has used a “plug-and-play” concept with the batteries in its i3 model so that they can be easily removed and inserted into second-life applications, BMW spokesperson Weiland Bruch said in an interview with TechCrunch. “We believe that battery second-life will become its own self-standing business field,” he added.

A new lease on battery life

Automakers are increasingly bullish on second-life uses, though the size of their role in this budding market is still unclear. Matthew Lumsden, CEO of U.K.-based Connected Energy, told TechCrunch that he has noticed a shift in the past two years where some OEMs have begun viewing batteries as an asset rather than a liability.


Source: Tech Crunch

New Jersey announces $10M seed fund aimed at Black and Latinx founders

Today, in a twist, New Jersey Governor Phil Murphy has announced a proposal for a $10 million allocation in the state budget to create a seed fund for Black and Latinx startups, TechCrunch has learned exclusively. The Black and Latinx Seed Fund will be administered by the New Economic Development Authority (NJEDA).

NJEDA CEO Tim Sullivan said based on research conducted by the state, that New Jersey is the first state in the nation to develop this type of fund.

He said the move is a “direct response to the systemic racial inequities in access to capital for Black and brown entrepreneurs” and aimed at addressing “the racial wealth gap.”

“I think two of the centerpieces of Gov. Murphy’s strategy overall for the economy is to build a stronger and fairer New Jersey and a stronger and fairer economy,” Sullivan said, adding that the state is also focused on “reclaiming New Jersey’s heritage of leadership, innovation and entrepreneurship.”

It’s a known fact that the number of venture dollars flowing to Black and Latinx founders is dismally low.

As one evidence of that, last year Crunchbase found that as of Aug. 31, Black and Latinx founders had raised $2.3 billion in funding, representing just 2.6% of the total $87.3 billion in funding that had gone to all founders up until that point in 2020. 

Also, Digitalundivided’s ProjectDiane 2020 report found that Black and Latinx women founders received just $1.7 billion of the total $276.7 billion venture dollars invested between 2018 and 2019.

Over the past several months — in the wake of the murder of George Floyd and the Black Lives Matter movement — we’ve seen an increasing number of venture funds announce initiatives toward funding a broader group of founders.

“Before there was a Silicon Valley, whether you’re talking about folks like Thomas Edison, Bell Labs or Sarnoff Labs, we were the place that perhaps more than any other place that fueled 20th century American entrepreneurial-led growth,” Sullivan told TechCrunch. “And the reality is that we lost a little bit of that. We’re still one of the top places for innovation and entrepreneurship, but other places –whether it’s out west or in places like Austin and Boston — have really upped their game and we want to recapture that unquestioned leadership position in innovation, entrepreneurship.”

Beyond that — under Gov. Murphy’s leadership — the state wants “to build the most diverse and inclusive innovation ecosystem in America.”

“That is a lot easier said than done, particularly because of not only centuries worth of systemic discrimination and racism, but some very specific manifestations of that systemic disenfranchisement and discrimination, particularly around venture capital funding and early-stage seed funding,” added Sullivan, who once worked at Barclays Capital as chief of staff to the head of Global Investment Banking.

Zakiya Smith Ellis, chief policy advisor to Gov. Murphy, said the initiative came after conversations with Black and Latinx business investors.

“This was developed with the input of folks who might be direct beneficiaries of this program and that community was directly impactful in designing and developing this proposal,” Smith Ellis told TechCrunch. “We hear from them ‘we don’t have the family members, we don’t have the friends who are just going to write me a check at the very beginning, I think this is really instructive.’ ”

The legislature is set to vote on the proposal by July 1.

While it was difficult to find examples of governments doing similar things, there are a number of organizations out there that are committed to funding diverse founders.

In February, several national and Chicago-based organizations banded together to support early-stage Black and Latinx tech entrepreneurs through a new program dubbed TechRise. The nonprofit P33 launched the program in partnership with Verizon and 1871, a private business incubator and technology hub, among others, with the goals “of narrowing the wealth gap in Chicago, generating thousands of tech-related jobs and giving $5 million in grant funding to Black and Latino entrepreneurs,” according to the Chicago Sun Times. (Disclosure: Verizon is TechCrunch’s parent company).

And, Detroit-based ID Ventures says it invests in minority and women-led companies “at 4x the national average.”

“By providing opportunities to underrepresented entrepreneurs, we can ensure representation, respect our state’s diversity, and create a startup community unlike any other,” the organization’s website says.

Also in Austin, DivInc is a nonprofit pre-accelerator that holds 12-week programs for underrepresented tech founders. Founded in 2016 by former Dell executive Preston James, the organization aims to “empower people of color and women entrepreneurs and help them build successful high-growth businesses by providing them with access to education, mentorship and vital networks.”


Source: Tech Crunch

Note-taking app Mem raises $5.6 million from Andreessen Horowitz

The competition for note-taking is as fierce as it has ever been with plenty of highly-valued productivity startups fighting for an audience it can potentially serve endless productivity offshoots. In the past year, Notion raised at a $2 billion valuation, Coda raised at $636 million, and Roam raised at $200 million.

A new competitor in the space is emerging out of stealth with fresh funding from Andreessen Horowitz. The free app, called Mem, is an early access platform dedicated to pushing users to quickly jot down their thoughts without focusing too heavily on the underlying organization of them. The startup’s founders have vast ambitions for what their platform could become down the road, tapping into further advances in machine learning and even AR.

“Really the differentiation is [information] that is summonable ubiquitously wherever you are,” Mem co-founder Kevin Moody tells TechCrunch. “So, in the near term, through your desktop app with Mem Spotlight as a heads-up display for wherever you are, in the medium term through an assistive mobile application, and then in the long term, imagine contact lenses that are overlaying useful content to you in the world.”

Moody and his co-founder Dennis Xu tell TechCrunch they’ve raised $5.6 million in a seed round led by a16z with additional participation from their Cultural Leadership Fund, Will Smith’s dreamers.vc, Floodgate, Unusual Ventures and Shrug Capital. The round also was host to a handful of angel investors including Harry Stebbings, Julia Lipton, Tony Liu, Rahul Vohra and Todd Goldberg, among others.

In its current iteration, Mem push users towards “lightweight organization” rather than clicking through folders and links to find the perfect place to nestle their thoughts. Users can quickly tag users or dedicated topics in their notes. The user workflow relies pretty heavily on search and chronological organization, presenting users with their most recently accessed notes. Users can also set reminders for certain notes, bringing a popular email framework to note-taking.

For users of stock apps like Apple Notes, these interface quirks may not sound very jarring, though the design is still a departure from apps like Notion and Airtable which have heavily focused on structure over immediacy.

Mem Spotlight

Perhaps Mem’s biggest shift is how users access the information they’ve dumped into the platform. The founders say they want to avoid their app being seen as a “destination,” instead hoping users rely heavily on a keyboard-shortcut-prompted overlay called Mem Spotlight that allows them to search out information that they may need for an email, presentation or text message. The broader hope of the founders and investors behind Mem is that the team can leverage the platform’s intelligence over time to better understand the data dump from your brain — and likely other information sources across your digital footprint — to know you better than any ad network or social media graph does.

“What would it mean to just capture passively your digital footprint and then make use of that as though it were structured,” Moody posits. “If we can actually have our own Mem modeling of all of these entities, whether it’s text, or maybe it’s contacts, the people that you know, or it’s the events that you’re going to and these different sources feed into Mem, what would it mean for Mem to be able to have a product that is the ‘you’ API?”

For now, the startup’s app isn’t quite as grandiose in scale as what the founders may see in its future, but as Mem continues to onboard early users from its waitlist and add to its desktop functionality, the company is driving towards a platform they hope feels more instrumental to how its users “remember” information.


Source: Tech Crunch

Clarence Thomas plays a poor devil’s advocate in floating First Amendment limits for tech companies

Supreme Court Justice Clarence Thomas flaunted a dangerous ignorance regarding matters digital in an opinion published today. In attempting to explain the legal difficulties of social media platforms, particularly those arising from Twitter’s ban of Trump, he makes an ill-informed, bordering on bizarre, argument as to why such companies may need their First Amendment rights curtailed.

There are several points on which Thomas seems to willfully misconstrue or misunderstand the issues.

The first is in his characterization of Trump’s use of Twitter. You may remember that several people sued after being blocked by Trump, alleging that his use of the platform amounted to creating a “public forum” in a legal sense, meaning it was unlawful to exclude anyone from it for political reasons. (The case, as it happens, was rendered moot after its appeal and dismissed by the court except as a Thomas’s temporary soapbox.)

“But Mr. Trump, it turned out, had only limited control of the account; Twitter has permanently removed the account from the platform,” writes Thomas. “[I]t seems rather odd to say something is a government forum when a private company has unrestricted authority to do away with it.”

Does it? Does it seem odd? Because a few paragraphs later, he uses the example of a government agency using a conference room in a hotel to hold a public hearing. They can’t kick people out for voicing their political opinions, certainly, because the room is a de facto public forum. But if someone is loud and disruptive, they can ask hotel security to remove that person, because the room is de jure a privately owned space.

Yet the obvious third example, and the one clearly most relevant to the situation at hand, is skipped. What if it is the government representatives who are being loud and disruptive, to the point where the hotel must make the choice whether to remove them?

It says something that this scenario, so remarkably close a metaphor for what actually happened, is not considered. Perhaps it casts the ostensibly “odd” situation and actors in too clear a light, for Thomas’s other arguments suggest he is not for clarity here but for muddying the waters ahead of a partisan knife fight over free speech.

In his best “I’m not saying, I’m just saying” tone, Thomas presents his reasoning why, if the problem is that these platforms have too much power over free speech, then historically there just happen to be some legal options to limit that power.

Thomas argues first, and worst, that platforms like Facebook and Google may amount to “common carriers,” a term that goes back centuries to actual carriers of cargo, but which is now a common legal concept that refers to services that act as simple distribution – “bound to serve all customers alike, without discrimination.” A telephone company is the most common example, in that it cannot and does not choose what connections it makes, nor what conversations happen over those connections – it moves electric signals from one phone to another.

But as he notes at the outset of his commentary, “applying old doctrines to new digital platforms is rarely straightforward.” And Thomas’s method of doing so is spurious.

“Though digital instead of physical, they are at bottom communications networks, and they ‘carry’ information from one user to another,” he says, and equates telephone companies laying cable with companies like Google laying “information infrastructure that can be controlled in much the same way.”

Now, this is certainly wrong. So wrong in so many ways that it’s hard to know where to start and when to stop.

The idea that companies like Facebook and Google are equivalent to telephone lines is such a reach that it seems almost like a joke. These are companies that have built entire business empires by adding enormous amounts of storage, processing, analysis, and other services on top of the element of pure communication. One might as easily suggest that because computers are just a simple piece of hardware that moves data around, that Apple is a common carrier as well. It’s really not so far a logical leap!

There’s no real need to get into the technical and legal reasons why this opinion is wrong, however, because these grounds have been covered so extensively over the years, particularly by the FCC — which the Supreme Court has deferred to as an expert agency on this matter. If Facebook were a common carrier (or telecommunications service), it would fall under the FCC’s jurisdiction — but it doesn’t, because it isn’t, and really, no one thinks it is. This has been supported over and over, by multiple FCCs and administrations, and the deferral is itself a Supreme Court precedent that has become doctrine.

In fact, and this is really the cherry on top, freshman Justice Kavanaugh in a truly stupefying legal opinion a few years ago argued so far in the other direction that it became wrong in a totally different way! It was Kavanaugh’s considered opinion that the bar for qualifying as a common carrier was actually so high that even broadband providers don’t qualify for it (This was all in service of taking down net neutrality, a saga we are in danger of resuming soon). As his erudite colleague Judge Srinivasan explained to him at the time, this approach too is embarrassingly wrong.

Looking at these two opinions, of two sitting conservative Supreme Court Justices, you may find the arguments strangely at odds, yet they are wrong after a common fashion.

Kavanaugh claims that broadband providers, the plainest form of digital common carrier conceivable, are in fact providing all kinds sophisticated services over and above their functionality as a pipe (they aren’t). Thomas claims that companies actually providing all kinds of sophisticated services are nothing more than pipes.

Simply stated, these men have no regard for the facts but have chosen the definition that best suits their political purposes: for Kavanaugh, thwarting a Democrat-led push for strong net neutrality rules; for Thomas, asserting control over social media companies perceived as having an anti-conservative bias.

The case Thomas uses for his sounding board on these topics was rightly rendered moot — Trump is no longer president and the account no longer exists — but he makes it clear that he regrets this extremely.

“As Twitter made clear, the right to cut off speech lies most powerfully in the hands of private digital platforms,” he concludes. “The extent to which that power matters for purposes of the First Amendment and the extent to which that power could lawfully be modified raise interesting and important questions. This petition, unfortunately, affords us no opportunity to confront them.”

Between the common carrier argument and questioning the form of Section 230 (of which in this article), Thomas’s hypotheticals break the seals on several legal avenues to restrict First Amendment rights of digital platforms, as well as legitimizing those (largely on one side of the political spectrum) who claim a grievance along these lines. (Slate legal commentator Mark Joseph Stern, who spotted the opinion early, goes further, calling Thomas’s argument a “paranoid Marxist delusion” and providing some other interesting context.)

This is not to say that social media and tech do not deserve scrutiny on any number of fronts — they exist in an alarming global vacuum of regulatory powers, and hardly anyone would suggest they have been entirely responsible with this freedom. But the arguments of Thomas and Kavanaugh stink of cynical partisan sophistry. This endorsement by Thomas amounts accomplishes nothing legally, but will provide valuable fuel for the bitter fires of contention — though they hardly needed it.


Source: Tech Crunch

Labor relations board sides with Amazon employees over firings

Last year, Amazon fired Emily Cunningham and Maren Costa. The pair of employees had been among the company’s most outspoken critics on staff, openly taking Amazon to task for environmental and labor issues.

This week, the National Labor Relations Board determined that the pair’s firing was an illegal form of retaliation. Speaking with The New York Times, Cunningham noted that the board would issue a more public criticism of Amazon’s action if the company does not take steps to address the issue.

Amazon tells TechCrunch that the decision was not a direct result of the pair’s criticism, but rather a product of other, unstated polices. “We support every employee’s right to criticize their employer’s working conditions, but that does not come with blanket immunity against any and all internal policies,” a spokesperson says. “We terminated these employees for repeatedly violating internal policies.”

Cunningham, meanwhile, called the decision a “moral victory.”

The news came amid widescale ramp-ups as Amazon was declared an essential service while COVID-19 bore down on the U.S. in April. Two weeks prior, the company opened a massive fulfillment center in Bessemer, Alabama, which has become the focal point of yet another labor battle for the online retail giant.

The warehouse is currently ground zero for the largest unionizing effort in the company’s history. The National Labor Relations Board is tasked with ballot counting, which kicked off on Tuesday of last week. In the final days of voting, the company made an aggressive social media push against union allies, though it has since walked it back some, including a soft apology for comments surrounding reports that employees regularly pee in bottles to meet stringent quotas.

In addition to its rulings on Cunningham and Costa, the NLRB has also found for Amazonians United co-founder, Jonathan Bailey.

 


Source: Tech Crunch