One-quarter of jobs are at ‘high-risk’ of being automated

No one will be entirely safe from automation in the future, but according to a new study out of the Brookings Institute, around 25 percent of U.S. jobs are at “high risk.” It’s a stark bit of foreshadowing in a job market that has yet to fully rebound.

Roles in transportation, food prep, production and office admin are among those at highest risk, with robotics and artificial intelligence threatening to automate in the neighborhood of 70 percent of tasks, according to the study. Activities involving processing, data collection and physical labor are, unsurprisingly, most at risk here.

Automation is expected to have an outsized impact in certain regions in the country, and among less well educated workers. Likewise, it’s expect to impact different segments of the population in different ways.

“Youth, and less educated workers, along with underrepresented groups all appear likely to face significantly more acute challenges from automation in the coming years,” according to the study. “Young workers and Hispanics will be especially exposed.”

There does seem to be a certain inevitability in all of this. And certainly we’ve seen versions of this scenario played out, decade after after. But local governments and industries can help brace for impact, by educating and developing skills among existing workers, says Brookings.


Source: Tech Crunch

The facts about Facebook

This is a critical reading of Facebook founder Mark Zuckerberg’s article in the WSJ on Thursday, also entitled The Facts About Facebook

Yes Mark, you’re right; Facebook turns 15 next month. What a long time you’ve been in the social media business! We’re curious as to whether you’ve also been keeping count of how many times you’ve been forced to apologize for breaching people’s trust or, well, otherwise royally messing up over the years.

It’s also true you weren’t setting out to build “a global company”. The predecessor to Facebook was a ‘hot or not’ game called ‘FaceMash’ that you hacked together while drinking beer in your Harvard dormroom. Your late night brainwave was to get fellow students to rate each others’ attractiveness — and you weren’t at all put off by not being in possession of the necessary photo data to do this. You just took it; hacking into the college’s online facebooks and grabbing people’s selfies without permission.

Blogging about what you were doing as you did it, you wrote: “I almost want to put some of these faces next to pictures of some farm animals and have people vote on which is more attractive.” Just in case there was any doubt as to the ugly nature of your intention. 

The seeds of Facebook’s global business were thus sewn in a crude and consentless game of clickbait whose idea titillated you so much you thought nothing of breaching security, privacy, copyright and decency norms just to grab a few eyeballs.

So while you may not have instantly understood how potent this ‘outrageous and divisive’ eyeball-grabbing content tactic would turn out to be — oh hai future global scale! — the core DNA of Facebook’s business sits in that frat boy discovery where your eureka Internet moment was finding you could win the attention jackpot by pitting people against each other.

Pretty quickly you also realized you could exploit and commercialize human one-upmanship — gotta catch em all friend lists! popularity poke wars! — and stick a badge on the resulting activity, dubbing it ‘social’.

FaceMash was antisocial, though. And the unpleasant flipside that can clearly flow from ‘social’ platforms is something you continue not being nearly honest nor open enough about. Whether it’s political disinformation, hate speech or bullying, the individual and societal impacts of maliciously minded content shared and amplified using massively mainstream tools you control is now impossible to ignore.

Yet you prefer to play down these human impacts; as a “crazy idea”, or by implying that ‘a little’ amplified human nastiness is the necessary cost of being in the big multinational business of connecting everyone and ‘socializing’ everything.

But did you ask the father of 14-year-old Molly Russell, a British schoolgirl who took her own life in 2017, whether he’s okay with your growth vs controls trade-off? “I have no doubt that Instagram helped kill my daughter,” said Russell in an interview with the BBC this week.

After her death, Molly’s parents found she had been following accounts on Instagram that were sharing graphic material related to self-harming and suicide, including some accounts that actively encourage people to cut themselves. “We didn’t know that anything like that could possibly exist on a platform like Instagram,” said Russell.

Without a human editor in the mix, your algorithmic recommendations are blind to risk and suffering. Built for global scale, they get on with the expansionist goal of maximizing clicks and views by serving more of the same sticky stuff. And more extreme versions of things users show an interest in to keep the eyeballs engaged.

So when you write about making services that “billions” of “people around the world love and use” forgive us for thinking that sounds horribly glib. The scales of suffering don’t sum like that. If your entertainment product has whipped up genocide anywhere in the world — as the UN said Facebook did in Myanmar — it’s failing regardless of the proportion of users who are having their time pleasantly wasted on and by Facebook.

And if your algorithms can’t incorporate basic checks and safeguards so they don’t accidentally encourage vulnerable teens to commit suicide you really don’t deserve to be in any consumer-facing business at all.

Yet your article shows no sign you’ve been reflecting on the kinds of human tragedies that don’t just play out on your platform but can be an emergent property of your targeting algorithms.

You focus instead on what you call “clear benefits to this business model”.

The benefits to Facebook’s business are certainly clear. You have the billions in quarterly revenue to stand that up. But what about the costs to the rest of us? Human costs are harder to quantify but you don’t even sound like you’re trying.

You do write that you’ve heard “many questions” about Facebook’s business model. Which is most certainly true but once again you’re playing down the level of political and societal concern about how your platform operates (and how you operate your platform) — deflecting and reframing what Facebook is to cast your ad business a form of quasi philanthropy; a comfortable discussion topic and self-serving idea you’d much prefer we were all sold on.

It’s also hard to shake the feeling that your phrasing at this point is intended as a bit of an in-joke for Facebook staffers — to smirk at the ‘dumb politicians’ who don’t even know how Facebook makes money.

Y’know, like you smirked…

Then you write that you want to explain how Facebook operates. But, thing is, you don’t explain — you distract, deflect, equivocate and mislead, which has been your business’ strategy through many months of scandal (that and worst tactics — such as paying a PR firm that used oppo research tactics to discredit Facebook critics with smears).

Dodging is another special power; such as how you dodged repeat requests from international parliamentarians to be held accountable for major data misuse and security breaches.

The Zuckerberg ‘open letter’ mansplain, which typically runs to thousands of blame-shifting words, is another standard issue production from the Facebook reputation crisis management toolbox.

And here you are again, ironically enough, mansplaining in a newspaper; an industry that your platform has worked keenly to gut and usurp, hungry to supplant editorially guided journalism with the moral vacuum of algorithmically geared space-filler which, left unchecked, has been shown, time and again, lifting divisive and damaging content into public view.

The latest Zuckerberg screed has nothing new to say. It’s pure spin. We’ve read scores of self-serving Facebook apologias over the years and can confirm Facebook’s founder has made a very tedious art of selling abject failure as some kind of heroic lack of perfection.

But the spin has been going on for far, far too long. Fifteen years, as you remind us. Yet given that hefty record it’s little wonder you’re moved to pen again — imagining that another word blast is all it’ll take for the silly politicians to fall in line.

Thing is, no one is asking Facebook for perfection, Mark. We’re looking for signs that you and your company have a moral compass. Because the opposite appears to be true. (Or as one UK parliamentarian put it to your CTO last year: “I remain to be convinced that your company has integrity”.)

Facebook has scaled to such an unprecedented, global size exactly because it has no editorial values. And you say again now you want to be all things to all men. Put another way that means there’s a moral vacuum sucking away at your platform’s core; a supermassive ethical blackhole that scales ad dollars by the billions because you won’t tie the kind of process knots necessary to treat humans like people, not pairs of eyeballs.

You don’t design against negative consequences or to pro-actively avoid terrible impacts — you let stuff happen and then send in the ‘trust & safety’ team once the damage has been done.

You might call designing against negative consequences a ‘growth bottleneck’; others would say it’s having a conscience.

Everything standing in the way of scaling Facebook’s usage is, under the Zuckerberg regime, collateral damage — hence the old mantra of ‘move fast and break things’ — whether it’s social cohesion, civic values or vulnerable individuals.

This is why it takes a celebrity defamation lawsuit to force your company to dribble a little more resource into doing something about scores of professional scammers paying you to pop their fraudulent schemes in a Facebook “ads” wrapper. (Albeit, you’re only taking some action in the UK in this particular case.)

Funnily enough — though it’s not at all funny and it doesn’t surprise us — Facebook is far slower and patchier when it comes to fixing things it broke.

Of course there will always be people who thrive with a digital megaphone like Facebook thrust in their hand. Scammers being a pertinent example. But the measure of a civilized society is how it protects those who can’t defend themselves from targeted attacks or scams because they lack the protective wrap of privilege. Which means people who aren’t famous. Not public figures like Martin Lewis, the consumer champion who has his own platform and enough financial resources to file a lawsuit to try to make Facebook do something about how its platform supercharges scammers.

Zuckerberg’s slippery call to ‘fight bad content with more content’ — or to fight Facebook-fuelled societal division by shifting even more of the apparatus of civic society onto Facebook — fails entirely to recognize this asymmetry.

And even in the Lewis case, Facebook remains a winner; Lewis dropped his suit and Facebook got to make a big show of signing over £500k worth of ad credit coupons to a consumer charity that will end up giving them right back to Facebook.

The company’s response to problems its platform creates is to look the other way until a trigger point of enough bad publicity gets reached. At which critical point it flips the usual crisis PR switch and sends in a few token clean up teams — who scrub a tiny proportion of terrible content; or take down a tiny number of fake accounts; or indeed make a few token and heavily publicized gestures — before leaning heavily on civil society (and on users) to take the real strain.

You might think Facebook reaching out to respected external institutions is a positive step. A sign of a maturing mindset and a shift towards taking greater responsibility for platform impacts. (And in the case of scam ads in the UK it’s donating £3M in cash and ad credits to a bona fide consumer advice charity.)

But this is still Facebook dumping problems of its making on an already under-resourced and over-worked civic sector at the same time as its platform supersizes their workload.

In recent years the company has also made a big show of getting involved with third party fact checking organizations across various markets — using these independents to stencil in a PR strategy for ‘fighting fake news’ that also entails Facebook offloading the lion’s share of the work. (It’s not paying fact checkers anything, given the clear conflict that would represent it obviously can’t).

So again external organizations are being looped into Facebook’s mess — in this case to try to drain the swamp of fakes being fenced and amplified on its platform — even as the scale of the task remains hopeless, and all sorts of junk continues to flood into and pollute the public sphere.

What’s clear is that none of these organizations has the scale or the resources to fix problems Facebook’s platform creates. Yet it serves Facebook’s purposes to be able to point to them trying.

And all the while Zuckerberg is hard at work fighting to fend off regulation that could force his company to take far more care and spend far more of its own resources (and profits) monitoring the content it monetizes by putting it in front of eyeballs.

The Facebook founder is fighting because he knows his platform is a targeted attack; On individual attention, via privacy-hostile behaviorally targeted ads (his euphemism for this is “relevant ads”); on social cohesion, via divisive algorithms that drive outrage in order to maximize platform engagement; and on democratic institutions and norms, by systematically eroding consensus and the potential for compromise between the different groups that every society is comprised of.

In his WSJ post Zuckerberg can only claim Facebook doesn’t “leave harmful or divisive content up”. He has no defence against Facebook having put it up and enabled it to spread in the first place.

Sociopaths relish having a soapbox so unsurprisingly these people find a wonderful home on Facebook. But where does empathy fit into the antisocial media equation?

As for Facebook being a ‘free’ service — a point Zuckerberg is most keen to impress in his WSJ post — it’s of course a cliché to point out that ‘if it’s free you’re the product’. (Or as the even older saying goes: ‘There’s no such thing as a free lunch’).

But for the avoidance of doubt, “free” access does not mean cost-free access. And in Facebook’s case the cost is both individual (to your attention and your privacy); and collective (to the public’s attention and to social cohesion).

The much bigger question is who actually benefits if “everyone” is on Facebook, as Zuckerberg would prefer. Facebook isn’t the Internet. Facebook doesn’t offer the sole means of communication, digital or otherwise. People can, and do, ‘connect’ (if you want to use such a transactional word for human relations) just fine without Facebook.

So beware the hard and self-serving sell in which Facebook’s 15-year founder seeks yet again to recast privacy as an unaffordable luxury.

Actually, Mark, it’s a fundamental human right.

The best argument Zuckerberg can muster for his goal of universal Facebook usage being good for anything other than his own business’ bottom line is to suggest small businesses could use that kind of absolute reach to drive extra growth of their own.

Though he only provides a few general data-points to support the claim; saying there are “more than 90M small businesses on Facebook” which “make up a large part of our business” (how large?) — and claiming “most” (51%?) couldn’t afford TV ads or billboards (might they be able to afford other online or newspaper ads though?); he also cites a “global survey” (how many businesses surveyed?), presumably run by Facebook itself, which he says found “half the businesses on Facebook say they’ve hired more people since they joined” (but how did you ask the question, Mark?; we’re concerned it might have been rather leading), and from there he leaps to the implied conclusion that “millions” of jobs have essentially been created by Facebook.

But did you control for common causes Mark? Or are you just trying to take credit for others’ hard work because, well, it’s politically advantageous for you to do so?

Whether Facebook’s claims about being great for small business stand up to scrutiny or not, if people’s fundamental rights are being wholesale flipped for SMEs to make a few extra bucks that’s an unacceptable trade off.

“Millions” of jobs suggestively linked to Facebook sure sounds great — but you can’t and shouldn’t overlook disproportionate individual and societal costs, as Zuckerberg is urging policymakers to here.

Let’s also not forget that some of the small business ‘jobs’ that Facebook’s platform can take definitive and major credit for creating include the Macedonia teens who became hyper-adept at seeding Facebook with fake U.S. political news, around the 2016 presidential election. But presumably those aren’t the kind of jobs Zuckerberg is advocating for.

He also repeats the spurious claim that Facebook gives users “complete control” over what it does with personal information collected for advertising.

We’ve heard this time and time again from Zuckerberg and yet it remains pure BS.

WASHINGTON, DC – APRIL 10: Facebook co-founder, Chairman and CEO Mark Zuckerberg concludes his testimony before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC. Zuckerberg, 33, was called to testify after it was reported that 87 million Facebook users had their personal information harvested by Cambridge Analytica, a British political consulting firm linked to the Trump campaign. (Photo by Win McNamee/Getty Images)

Yo Mark! First up we’re still waiting for your much trumpeted ‘Clear History’ tool. You know, the one you claimed you thought of under questioning in Congress last year (and later used to fend off follow up questions in the European Parliament).

Reportedly the tool is due this Spring. But even when it does finally drop it represents another classic piece of gaslighting by Facebook, given how it seeks to normalize (and so enable) the platform’s pervasive abuse of its users’ data.

Truth is, there is no master ‘off’ switch for Facebook’s ongoing surveillance. Such a switch — were it to exist — would represent a genuine control for users. But Zuckerberg isn’t offering it.

Instead his company continues to groom users into accepting being creeped on by offering pantomime settings that boil down to little more than privacy theatre — if they even realize they’re there.

‘Hit the button! Reset cookies! Delete browsing history! Keep playing Facebook!’

An interstitial reset is clearly also a dilute decoy. It’s not the same as being able to erase all extracted insights Facebook’s infrastructure continuously mines from users, using these derivatives to target people with behavioral ads; tracking and profiling on an ongoing basis by creeping on browsing activity (on and off Facebook), and also by buying third party data on its users from brokers.

Multiple signals and inferences are used to flesh out individual ad profiles on an ongoing basis, meaning the files are never static. And there’s simply no way to tell Facebook to burn your digital ad mannequin. Not even if you delete your Facebook account.

Nor, indeed, is there a way to get a complete read out from Facebook on all the data it’s attached to your identity. Even in Europe, where companies are subject to strict privacy laws that place a legal requirement on data controllers to disclose all personal data they hold on a person on request, as well as who they’re sharing it with, for what purposes, under what legal grounds.

Last year Paul-Olivier Dehaye, the founder of PersonalData.IO, a startup that aims to help people control how their personal data is accessed by companies, recounted in the UK parliament how he’d spent years trying to obtain all his personal information from Facebook — with the company resorting to legal arguments to block his subject access request.

Dehaye said he had succeeded in extracting a bit more of his data from Facebook than it initially handed over. But it was still just a “snapshot”, not an exhaustive list, of all the advertisers who Facebook had shared his data with. This glimpsed tip implies a staggeringly massive personal data iceberg lurking beneath the surface of each and every one of the 2.2BN+ Facebook users. (Though the figure is likely even more massive because it tracks non-users too.)

Zuckerberg’s “complete control” wording is therefore at best self-serving and at worst an outright lie. Facebook’s business has complete control of users by offering only a superficial layer of confusing and fiddly, ever-shifting controls that demand continued presence on the platform to use them, and ongoing effort to keep on top of settings changes (which are always, to a fault, privacy hostile), making managing your personal data a life-long chore.

Facebook’s power dynamic puts the onus squarely on the user to keep finding and hitting reset button.

But this too is a distraction. Resetting anything on its platform is largely futile, given Facebook retains whatever behavioral insights it already stripped off of your data (and fed to its profiling machinery). And its omnipresent background snooping carries on unchecked, amassing fresh insights you also can’t clear.

Nor does Clear History offer any control for the non-users Facebook tracks via the pixels and social plug-ins it’s larded around the mainstream web. Zuckerberg was asked about so-called shadow profiles in Congress last year — which led to this awkward exchange where he claimed not to know what the phrase refers to.

EU MEPs also seized on the issue, pushing him to respond. He did so by attempting to conflate surveillance and security — by claiming it’s necessary for Facebook to hold this data to keep “bad content out”. Which seems a bit of an ill-advised argument to make given how badly that mission is generally going for Facebook.

Still, Zuckerberg repeats the claim in the WSJ post, saying information collected for ads is “generally important for security and operating our services” — using this to address what he couches as “the important question of whether the advertising model encourages companies like ours to use and store more information than we otherwise would”.

So, essentially, Facebook’s founder is saying that the price for Facebook’s existence is pervasive surveillance of everyone, everywhere, with or without your permission.

Though he doesn’t express that ‘fact’ as a cost of his “free” platform. RIP privacy indeed.

Another pertinent example of Zuckerberg simply not telling the truth when he wrongly claims Facebook users can control their information vis-a-vis his ad business — an example which also happens to underline how pernicious his attempts to use “security” to justify eroding privacy really are — bubbled into view last fall, when Facebook finally confessed that mobile phone numbers users had provided for the specific purpose of enabling two-factor authentication (2FA) to increase the security of their accounts were also used by Facebook for ad targeting.

A company spokesperson told us that if a user wanted to opt out of the ad-based repurposing of their mobile phone data they could use non-phone number based 2FA — though Facebook only added the ability to use an app for 2FA in May last year.

What Facebook is doing on the security front is especially disingenuous BS in that it risks undermining security practice by bundling a respected tool (2FA) with ads that creep on people.

And there’s plenty more of this kind of disingenuous nonsense in Zuckerberg’s WSJ post — where he repeats a claim we first heard him utter last May, at a conference in Paris, when he suggested that following changes made to Facebook’s consent flow, ahead of updated privacy rules coming into force in Europe, the fact European users had (mostly) swallowed the new terms, rather than deleting their accounts en masse, was a sign people were majority approving of “more relevant” (i.e more creepy) Facebook ads.

Au contraire, it shows nothing of the sort. It simply underlines the fact Facebook still does not offer users a free and fair choice when it comes to consenting to their personal data being processed for behaviorally targeted ads — despite free choice being a requirement under Europe’s General Data Protection Regulation (GDPR).

If Facebook users are forced to ‘choose’ between being creeped on or deleting their account on the dominant social service where all their friends are it’s hardly a free choice. (And GDPR complaints have been filed over this exact issue of ‘forced consent‘.)

Add to that, as we said at the time, Facebook’s GDPR tweaks were lousy with manipulative, dark pattern design. So again the company is leaning on users to get the outcomes it wants.

It’s not a fair fight, any which way you look at it. But here we have Zuckerberg, the BS salesman, trying to claim his platform’s ongoing manipulation of people already enmeshed in the network is evidence for people wanting creepy ads.

darkened facebook logo

The truth is that most Facebook users remain unaware of how extensively the company creeps on them (per this recent Pew research). And fiddly controls are of course even harder to get a handle on if you’re sitting in the dark.

Zuckerberg appears to concede a little ground on the transparency and control point when he writes that: “Ultimately, I believe the most important principles around data are transparency, choice and control.” But all the privacy-hostile choices he’s made; and the faux controls he’s offered; and the data mountain he simply won’t ‘fess up to sitting on shows, beyond reasonable doubt, the company cannot and will not self-regulate.

If Facebook is allowed to continue setting its own parameters and choosing its own definitions (for “transparency, choice and control”) users won’t have even one of the three principles, let alone the full house, as well they should. Facebook will just keep moving the goalposts and marking its own homework.

You can see this in the way Zuckerberg fuzzes and elides what his company really does with people’s data; and how he muddies and muddles uses for the data — such as by saying he doesn’t know what shadow profiles are; or claiming users can download ‘all their data’; or that ad profiles are somehow essential for security; or by repurposing 2FA digits to personalize ads too.

How do you try to prevent the purpose limitation principle being applied to regulate your surveillance-reliant big data ad business? Why by mixing the data streams of course! And then trying to sew confusion among regulators and policymakers by forcing them to unpick your mess.

Much like Facebook is forcing civic society to clean up its messy antisocial impacts.

Europe’s GDPR is focusing the conversation, though, and targeted complaints filed under the bloc’s new privacy regime have shown they can have teeth and so bite back against rights incursions.

But before we put another self-serving Zuckerberg screed to rest, let’s take a final look at his description of how Facebook’s ad business works. Because this is also seriously misleading. And cuts to the very heart of the “transparency, choice and control” issue he’s quite right is central to the personal data debate. (He just wants to get to define what each of those words means.)

In the article, Zuckerberg claims “people consistently tell us that if they’re going to see ads, they want them to be relevant”. But who are these “people” of which he speaks? If he’s referring to the aforementioned European Facebook users, who accepted updated terms with the same horribly creepy ads because he didn’t offer them any alternative, we would suggest that’s not a very affirmative signal.

Now if it were true that a generic group of ‘Internet people’ were consistently saying anything about online ads the loudest message would most likely be that they don’t like them. Click through rates are fantastically small. And hence also lots of people using ad blocking tools. (Growth in usage of ad blockers has also occurred in parallel with the increasing incursions of the adtech industrial surveillance complex.)

So Zuckerberg’s logical leap to claim users of free services want to be shown only the most creepy ads is really a very odd one.

Let’s now turn to Zuckerberg’s use of the word “relevant”. As we noted above, this is a euphemism. It conflates many concepts but principally it’s used by Facebook as a cloak to shield and obscure the reality of what it’s actually doing (i.e. privacy-hostile people profiling to power intrusive, behaviourally microtargeted ads) in order to avoid scrutiny of exactly those creepy and intrusive Facebook practices.

Yet the real sleight of hand is how Zuckerberg glosses over the fact that ads can be relevant without being creepy. Because ads can be contextual. They don’t have to be behaviorally targeted.

Ads can be based on — for example — a real-time search/action plus a user’s general location. Without needing to operate a vast, all-pervasive privacy-busting tracking infrastructure to feed open-ended surveillance dossiers on what everyone does online, as Facebook chooses to.

And here Zuckerberg gets really disingenuous because he uses a benign-sounding example of a contextual ad (the example he chooses contains an interest and a general location) to gloss over a detail-light explanation of how Facebook’s people tracking and profiling apparatus works.

“Based on what pages people like, what they click on, and other signals, we create categories — for example, people who like pages about gardening and live in Spain — and then charge advertisers to show ads to that category,” he writes, with that slipped in reference to “other signals” doing some careful shielding work there.

Other categories that Facebook’s algorithms have been found ready and willing to accept payment to run ads against in recent years include “jew-hater”, “How to burn Jews” and “Hitler did nothing wrong”.

Funnily enough Zuckerberg doesn’t mention those actual Facebook microtargeting categories in his glossy explainer of how its “relevant” ads business works. But they offer a far truer glimpse of the kinds of labels Facebook’s business sticks on people.

As we wrote last week, the case against behavioral ads is stacking up. Zuckerberg’s attempt to spin the same self-serving lines should really fool no one at this point.

Nor should regulators be derailed by the lie that Facebook’s creepy business model is the only version of adtech possible. It’s not even the only version of profitable adtech currently available. (Contextual ads have made Google alternative search engine DuckDuckGo profitable since 2014, for example.)

Simply put, adtech doesn’t have to be creepy to work. And ads that don’t creep on people would give publishers greater ammunition to sell ad block using readers on whitelisting their websites. A new generation of people-sensitive startups are also busy working on new forms of ad targeting that bake in privacy by design.

And with legal and regulatory risk rising, intrusive and creepy adtech that demands the equivalent of ongoing strip searches of every Internet user on the planet really look to be on borrowed time.

Facebook’s problem is it scrambled for big data and, finding it easy to suck up tonnes of the personal stuff on the unregulated Internet, built an antisocial surveillance business that needs to capture both sides of its market — eyeballs and advertisers — and keep them buying to an exploitative and even abusive relationship for its business to keep minting money.

Pivoting that tanker would certainly be tough, and in any case who’d trust a Zuckerberg who suddenly proclaimed himself the privacy messiah?

But it sure is a long way from ‘move fast and break things’ to trying to claim there’s only one business model to rule them all.


Source: Tech Crunch

Where seed and early-stage funding is growing, contracting or holding steady

In startup circles, it’s trendy to talk about how entrepreneurs are leaving high-tax, high cost-of-living metros for cheaper locales. While Silicon Valley remains ground central for hobnobbing with investors, the common wisdom goes, early-stage funding stretches much further elsewhere.

As memes go, it makes sense. But does the data bear this out? Is Texas turning into the new California? Is Salt Lake City edging out Seattle? Are the largest U.S. startup hubs losing their edge in luring promising early-stage startups?

In a somewhat eccentric data crunch, Crunchbase News set out to see the extent to which certain regions are gaining in early-stage and seed activity. We also attempted to see whether any of the big, established startup ecosystems are showing obvious signs of decline.

To lay out our case, we looked at four metrics. First, we measured total reported annual seed funding and round counts by state for the 18 largest venture capital ecosystems. Next, we looked at seed through early-stage investment and deal counts across three size ranges. They include moderately sized rounds of $1 million to $5 million, larger ones of more than $5 million and less than $50 million and really big early-stage investments of $50 million and up.

The idea with the size-range data sets was to see how tech hubs stack up in terms of launching well-funded startups. It’s one thing to have a lot of seed-funded startups. It’s quite another to see them go on to close follow-on rounds in the millions or tens of millions. We also wanted to see whether the top startup hubs are retaining their dominance in launching companies that go on to secure the biggest early-stage rounds.

(If the round sizes seem overly large for seed or early-stage investments, keep in mind that in 2018 and the current boom, traditional buckets for rounds have been breached; so what was once a Series D in terms of dollars, can now in fact be an early-stage round in some contexts.)

Here are some of the broad findings:

  • Top hubs hold pretty steady. The largest venture ecosystems aren’t showing signs of significant contraction this past year at seed and early-stage. Across the metrics we measured, the three largest (California, New York and Massachusetts) are hanging on to similar shares of funding as prior years.
  • Utah and Pennsylvania outperforms. Two states stood out in terms of posting gains across several seed and early-stage funding metrics: Pennsylvania and Utah. Pennsylvania benefited from heightened investment in biotech, transportation and robotics, areas in which it has large talent pools. Utah, meanwhile, prevailed in enterprise software.
  • Texas sees big gains in larger rounds. Texas didn’t see an annual rise in total reported seed funding, moderate-size deals or really big early rounds. However, the state was red-hot in producing startups that secured rounds of more than $5 million and less than $50 million.

Below, we’ll flesh out these findings, as well as take a look at the overall breakdown of seed and early-stage funding.

Here’s how the top states for venture funding stack up

To begin, let’s take a look at the breakdown for seed-stage funding and rounds among the 18 states that account for the overwhelming majority of investments:

As you can see, the top six states take in the lion’s share of seed funding, with California the leader of the pack by several multiples.

Moderately sized rounds by state

Next, let’s look at how the top states rank by another metric: Moderately sized seed and early-stage rounds of between $1 million and $5 million.

The reason we included this metric is because it includes very early-stage companies that have a lot of runway ahead, but have already attracted some serious investor interest. We also provided a year-over-year comparison, as it may be an early indicator of a state’s venture ecosystem gaining or losing traction.

Without further ado, here’s the chart:

As you can see above, the top five states for venture investment didn’t see big gains or losses in their share of investment at the $1 million to $5 million round size. Where we did see big increases was in two aforementioned states: Pennsylvania and Utah.

Early-stage rounds between $5M and $50M

Another metric to gauge a tech hub’s momentum is its ability to produce startups that raise pretty big seed and early-stage rounds.

With this in mind, we summed up deal counts and total investment by state for rounds of more than $5 million but less than $50 million for companies founded in the past four years. The results are charted below:

 

For mid-sized tech hubs, we see a good amount of year-over-year fluctuation in share of total investment for this category. A single big round or two can really move the needle, so it’s probably wise not to make to much of a single year’s fluctuation.

Texas, however, really is showing momentum: The Lone Star State is the largest tech ecosystem where we saw a really big year-over-year increase in rounds over $5 million and under $50 million. In 2018, Texas had 30 rounds in this category (see list), bringing in a total of $366 million. That’s up from just 13 funding rounds in the category bringing in $138 million in 2017. While we can’t point to clear-cut causes for the increase without deeper analysis, it’s apparent this is a bullish indicator for the Texan startup scene.

Early-stage rounds of $50M and up

Last, we looked at really big seed and early-stage rounds of $50 million and up for companies founded in the prior four years.

This is a funding category that barely existed several years ago. However, giant early-stage rounds have really mushroomed in recent quarters with the emergence of super-sized venture funds like the SoftBank Vision Fund and a greater willingness among investors to throw hundreds of millions at nascent sectors like scooter sharing.

The data indicates that really big early-stage rounds still primarily occur in the biggest startup hubs. The San Francisco Bay Area, New York and Boston were home to more than 85 percent of companies in the 2018 list for the category. No other state brought in more than one deal.

We have more details on how the numbers stack up in the chart below:

 

More power to Pennsylvania and Utah

In conclusion, we’d have to say that rumors of the slow death of California’s startup scene have been greatly exaggerated. Although all three of the top states for startup funding are high-tax, high cost-of-living locales, they’re also continuing to hit high marks in launching entrepreneurial companies and raising capital for them to grow.

Nonetheless, the data does reveal some apparent up-and-comers among startup hubs. Two that we notice are Pennsylvania and Utah.

Pennsylvania outperforms: I grew up in the Philadelphia area, so naturally I’m pleased to see the state ranking deservedly higher across our seed and early-stage metrics.

However, Philly can’t get all the credit for the rise. Pennsylvania has the good fortune of housing two startup hubs: Philly and Pittsburgh. Traditionally, Philadelphia has been a strong contender in biotech, with strength also in fintech, media and other sectors. Pittsburgh, as we’ve reported previously, is emerging as a hotbed for robotics, AI and transport.

Between those metro hubs, Pennsylvania saw a big rise year-over-year in round counts across all the categories we tracked (except for $50-plus million rounds, which were tied with 2017). Investment totals were also up markedly.

And don’t forget Utah: Utah has also been moving up in the ranks, delivering a particularly impressive performance given its population of just 3 million. By our estimates, Utah is the least-populated state to rank as a major startup hub.

Enterprise software is the dominant sector among sizably funded Utah companies. However, we also see a lot of non-SaaS business models pop up, in areas including fintech, audio devices and even peer-to-peer storage.

The takeaway: It looks like emerging early-stage startup hubs don’t need to siphon talent from the largest tech ecosystems to thrive. California, New York and Boston don’t appear to be losing their dominance. But that isn’t stopping smaller startup hubs from thriving too.

Methodology

The data set looks at funding levels by state. In most states, the vast majority of venture activity is in a single metro area. Exceptions are California, with the San Francisco Bay Area, Los Angeles and San Diego, as well as Pennsylvania, with both Pittsburgh and Philadelphia. For rounds above $5 million, we limited the data set to startups founded after January 1, 2015.

We did not compare 2018 seed funding totals to prior years due to the fact that a sizable portion of seed rounds are reported and recorded in the Crunchbase data set months after they close. As a result, reported figures for recent months undercount total funding activity.


Source: Tech Crunch

The state of the foldable

You’d be forgiven for being cynical. I’ve been seeing foldable display concepts for as long as I’ve been attending tech trade shows (which, quite frankly, is longer than I care to mention). Big names like Samsung and LG have been pumping countless R&D dollars into the technology in hopes of being first to next step in the evolution of the smart phone form factor.

The concept is nothing new, of course. The flip phone pre-dates the ubiquitous smartphone slab by decades. And a number of companies have tried to cheat the system. 2017’s Axon M was one of the more memorable attempts in recent memory — though that device amounted to little more than two screens jammed together on a hinge.

It bold and brash, but more than anything it was completely silly with an execution that left a lot to be desired. In my review, I called it “a fascinating mess.” But hey, ZTE deserves at least some credit for a run of products that attempted — with varying degrees of success — to buck the trend of samey smartphones.

There are plenty of reasons to be pessimistic about the state of technology in 2019, but I humbly offer you a beacon of light. This is the year smartphones become fun again. With their back to the corner, facing flagging sales, smartphone makers are taking leaps. Hell, it’s still January, and we’ve already caught a glimpse of what’s to compete.

At the front of the charger are foldables. That seems to be the term we’ve settled on for now — and it suits the category just fine. What convertibles were to the laptop category, foldables are to phones. True foldables require the display itself to do the folding, so devices can ostensibly transform from a one-handed smartphone to a larger tablet.

The Axon M didn’t fit the description for a number of reason, not the least of which was the gap between the two displays, which, quite frankly, made for a pretty crappy movie viewing experience, among others.

The first real foldable we’ve seen was a surprise contender. If the name “Royole” meant anything to you, prior to the Flex Pai, it was probably followed by the phrase “with cheese.” From the moment we first saw grainy footage of the handset, it was clear that being first and being best are rarely one and the same. “Folding screens are here,” I wrote at the time, “and they look crappy.”

I got some time with an updated version of the handset about a month later in China, and reappraised my initial impressions a bit. Even still, the Flex Pai didn’t and doesn’t strike me as much more than a little known company’s push bid to make a name for itself simply by being first.

Romain spent a bit more time with the device at CES, and appears to have come to similar conclusions. Royole does get credit for actually making the device a reality — even if it’s one that’s more developer focused than consumer. That does, of course, speak to a broader issue around usability.

It was a cause Google was happy to take up in November, when the company announced Android support for foldable displays. Like the notch before it, Google was attempting to get out ahead of the looming trend.

Here’s how Android VP Dave Burke described the category at the time, “You can think of the device as both a phone and a tablet, Broadly, there are two variants — two-screen devices and one-screen devices. When folded, it looks like a phone, fitting in your pocket or purse. The defining feature for this form factor is something we call screen continuity.”

It’s going to be fascinating to see if the industry coalesces around a single form factor here. The Flex Pai is one of the simpler ones — essentially operating like a sheet of paper that (somewhat awkwardly) folds in half so you can slip it in your pocket.

The same day that Google announced Android support, Samsung (briefly) showed off its own version of the technology. In the whooping 45 seconds the company devoted to it during a its two-hour keynote, we caught a glimpse of what looks to be an early prototype. Here, the device sports a display on the outside and unfolds to reveal a larger display within.

The “Infinity Flex Display” appeared at first glance to be more sophisticated than Royole’s — but “glance” is really the operative word here. It was a big, blocky prototype that we’ll be hearing more about at Unpacked next month.

Earlier this week, meanwhile, Xiaomi debuted what’s since come to be regarded as the most advanced of the bunch, but like Samsung, we only got a glimpse. And here it was in a much more controlled environment of a short, pre-recorded clip and extremely low resolution. That said, “the world’s first ever double folding phone” looks like a thing out of a sci-fi film.

The company, telling, tossed around the word “prototype” quite liberally there.

And then there’s Huawei. Mobile Chief Richard Yu highlight plans to announce a 5G folding phone at Mobile World Congress next month. As ever, details are scarce. Same goes for Motorola’s Razer, a $1,500 folding throwback, which is firmly in the rumor stages.

If that price point gives you pause, well, get used to it. The Flex Pai is already available at $1,300, and most other handsets are appear on track to hit roughly the same price point, making the latest iPhone and Samsung Galaxy devices look like a downright bargain.


Source: Tech Crunch

Startups Weekly: Is Munchery the Fyre Festival of startups?

It was a tough week. Journalists around the U.S. were hit hard by layoffs, from HuffPost to BuzzFeed News to Verizon Media Group, which owns this very site. The government entered day 35 of the shutdown before President Donald Trump agreed to a short-term deal to reopen it for three weeks. And in the startup world, a once high-flying, venture-subsidized food delivery startup crashed and burned, leaving a cluster of small businesses in its wreckage.

Some good things happened too — we’ll get to those.

  1. Munchery fails to pay its debts

In an email to customers on Monday, Munchery announced it would cease operations, effective immediately. It, however, failed to notify any of its vendors, small businesses in San Francisco that had supplied baked goods to the startup for years. I talked to several of those business owners about what they’re owed and what the sudden disappearance of Munchery means for them.

  1. #Theranos #Content

If you haven’t read John Carreyrou’s “Bad Blood,” stop reading this newsletter right now and go get yourself a copy. If you love to read, watch and listen to the Theranos saga as much as I do, you’ll be glad to hear there’s some fresh Theranos content released to the world this week. Called “The Dropout,” a new ABC documentary and an accompanying podcast about Theranos features never-before-aired depositions. Plus, TechCrunch’s Josh Constine reviews the Theranos documentary, “The Inventor,” which premiered at the Sundance Film Festival this week.

  1. Deal of the week

Confluent, the developer of a streaming data technology that processes massive amounts of information in real time, announced a $125 million Series D round on an enormous $2.5 billion valuation (up 5x from its Series C valuation). The round was led by existing investor Sequoia Capital, with participation from other top-tier VCs Index Ventures and Benchmark.

  1. Wag founders ditch dogs for bikes

Jonathan and Joshua Viner, the founders of the SoftBank-backed dog walking startup Wag, launched Wheels this week, an electric bike-share startup with a $37 million funding from Tenaya Capital, Bullpen Capital, Naval Ravikant and others.

  1. Go-Jek makes progress on a $2B round

Indonesia-headquartered Go-Jek has closed an initial chunk of what it hopes will be a $2 billion round after a collection of existing investors, including Google, Tencent and JD.com, agreed to put around $920 million toward it, according to TechCrunch’s Southeast Asia reporter Jon Russell. The deal, which we understand could be announced as soon as next week, will value Go-Jek’s business at around $9.5 billion.

  1. Knowledge center

There’s been a lot of chatter around direct listings since Spotify opted to go public via the untraditional route in 2018, but what exactly is a direct listing… We asked a panel of six experts: “What are the implications of direct listing tech IPOs for financial services, regulation, venture capital and capital markets activity?” 

Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

  1. Contraceptive deserts

Through telemedicine and direct-to-consumer sales platforms, startups are streamlining the historically arduous process of accessing contraception. The latest effort to secure a significant financing round is The Pill Club, an online birth control prescription and delivery service. This week, the consumer-focused investor VMG Partners led its $51 million Series B. 

  1. More startup cash
  1. Fundraising activity

Sunil Nagaraj spent years investing in startups at Bessemer Venture Partners, but he was itching to meet with younger companies and strike out on his own. So in the summer of 2017, he did, and now, Nagaraj said he’s closed Ubiquity Ventures’ debut fund with $30 million. March Capital Partners, the Los Angeles-based venture capital firm, raised $300 million for its latest fund. Plus, Zynga founder Mark Pincus is reportedly raising up to $700 million for a new investment fund, called Reinvent Capital, that will focus on publicly traded tech companies in need of strategic restructuring.

  1. Finally, meet the startups in Alchemist’s 20th cohort

A mental health startup, a construction tech business and a fintech company, among others. Take a quick look at the startups that just completed Alchemist’s six-month accelerator program.

  1. Listen to me talk

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm, TechCrunch’s Silicon Valley editor Connie Loizos and I chatted about Munchery’s downfall, The Pill Club’s mission to make birth control more accessible and the VC slowdown in China.

 


Source: Tech Crunch

New iPad mini and entry-level iPad are around the corner

Apple has registered new iPad models in the Eurasian Economic Commission reference database. The Moscow-based commission keeps a product database pretty much like the FCC in the U.S. And it sounds like Apple is about to launch a new iPad mini 5 and an updated entry-level iPad.

That database has shown information on new Apple products in the pastMySmartPrice first discovered today’s new filings. There are two different filings that both mention new tablets that run iOS 12.

The first filing mentions five different models while the second one mention two different models. Usually, each configuration gets a different model number depending on storage and LTE capabilities.

It lines up with previous rumors that mentioned a new iPad mini and a new cheap iPad for early 2019. Ming-Chi Kuo expects an updated iPad mini with a 7.9-inch display. The device hasn’t been updated for years and many believed that Apple would stop updating it. But if you still like that form factor, Apple may have something new for you.

When it comes to the normal size iPad, Apple last updated the 9.7-inch iPad in March 2018. While all eyes are on the iPad Pro, many people are still looking for the cheapest iPad they can get. And the $329 9.7-inch iPad is a good deal. Apple usually update that model every year.

Today’s filings don’t say what those devices will look like unfortunately. It’s unclear if Apple is going to reduce the bezels of those devices, add a Face ID sensor and switch to USB-C.


Source: Tech Crunch

Daily Crunch: Facebook is shutting down Moments

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here:

1. Facebook is shutting down Moments; here’s how to save all your photos

Facebook Moments, the standalone mobile app designed to let users privately share photos and videos, is shutting down next month. The reason is simple: Not many people used it.

For those who did use it, there are two export options. One will create a private album on their Facebook account; the other option downloads everything to their device.

2. StarCraft II-playing AI AlphaStar takes out pros undefeated

AlphaStar is different from the traditional StarCraft AI. It learned from watching humans play at first, but soon honed its skills by playing against facets of itself.

3. Theranos documentary review: The Inventor’s horrifying optimism

The documentary that premiered yesterday at the Sundance Film Festival explores how the move-fast-and-break-things ethos of Silicon Valley is “really dangerous when people’s lives are in the balance,” as former employee and whistleblower Tyler Shultz says in the film.

4. Facebook to encrypt Instagram messages ahead of integration with WhatsApp, Facebook Messenger

As first reported by The New York Times, the social media giant said it’s reworking the underlying infrastructure of its three messaging apps to allow users to talk to each other more easily.

5. Smartphones are about to get more interesting, but is it enough to drive growth?

The mobile industry is at a crossroads.

6. Microsoft acquires Citus Data

Citus Data is focused on making PostgreSQL databases faster and more scalable. Microsoft says it will work with the team to “accelerate the delivery of key, enterprise-ready features from Azure to PostgreSQL and enable critical PostgreSQL workloads to run on Azure with confidence.”

7. Ultima Thule shows its lumps in latest images from New Horizons flyby

The latest image from the New Horizons probe shows the rocky world of Ultima Thule in considerably greater detail.


Source: Tech Crunch

Airbnb acquires Denmark’s Gaest to expand in bookings for meetings and offsites

Airbnb, now valued upwards of $30 billion and inching toward an IPO possibly as early as this year, has made an acquisition to continue to diversify its revenues beyond basic booking services for overnight accommodations in private homes. It has acquired Gaest, a startup out of Aarhus, Denmark that provides a marketplace-style platform for people to post and book venues in hourly or daily increments for meetings and other work-related events like off-sites in Europe and elsewhere.

Gaest’s team — it was founded in 2015 by Anders Boelskifte Mogensen (the CEO), Chris Kjær Sørensen, Christian Schwarz Lausten and Jonas Grau Sigtenbjerggaard — will be joining Airbnb and will report to president of Homes Greg Greeley. Airbnb says the service — which currently has listings for some 3,000 venues from hotels to co-working spaces and other rooms — will remain operational on its own platform “for the foreseeable future.” It’s not clear if the Gaest brand will remain as a part of that.

“We’re thrilled to join one of the world’s most innovative companies and become an integral part of their mission to make it easier for professionals to feel a sense of belonging at work,” said Mogensen in a statement. “Our dream from day one has been to make it easier, faster, and more cost-effective to list, discover, and book unique spaces that spark creativity, motivate interaction and encourage knowledge sharing.”

Terms of the deal were not disclosed, but we are trying to find out. According to Crunchbase, Gaest had raised $3.5 million.

The acquisition points to two strategic developments at Airbnb, both aimed at helping the company diversity and grow its revenues.

The first is that it will build on Airbnb’s expansion into services for the business market.

This is an area where Airbnb has already been building inroads: It’s had a program in place since last year called Airbnb for Work, aimed at the business travel market and booking accommodations for business travelers, and it says that to date some 700,000 companies have seen employees sign up and book accommodation through the program.

Even before that, Airbnb had inked partnerships with corporate travel apps like Concur that are standard tools in large enterprises, so that its listings can also be discoverable alongside more classic hotels. That’s before you consider the number of people who may be booking on Airbnb for work trips but using their personal accounts to do so.

The idea of Airbnb for Work also taps into the trend of “consumerization” and how it has played out in the world of business travel. While some people will prefer to stay in business hotels and the amenities that come with that, others will opt for more individualized options that tap into local life.

That’s before you consider the average price differences between the two, where business hotels tend to reach into premium price points and Airbnb homes tend to come at a wider range of prices. To be sure, Airbnb is not the only one eyeing up ways of serving business users with their travel and meeting needs. A number of startups, like 2nd Address and Homelike, have sprung up to address the growth of business travelers looking for Airbnb-style options instead of business hotels for longer-term work trips.

And you can’t not consider the competitive threat here also from We (FKA WeWork), which had its start in co-working and meeting spaces, but now has ambitions to extend into providing space to companies and business types to cover other needs like sleeping and more. Like Airbnb, it’s also going to be working hard to expand and diversify its business to capture more revenues from existing and new customers.

And this leads to the second area where Gaest will help Airbnb: providing more value to existing and future hosts on the platform.

Today, the mainstay of making money on Airbnb if you’re a host is to offer your house for overnight stays. But Airbnb has been adding options beyond that, for example by giving hosts the chance to offer paid experiences to visitors, to help them increase their options for monetizing guests.

Homes head Greeley, Airbnb notes, is “leading a robust and aggressive plan to both support the hosts who have always powered Airbnb and expand our accommodation and service offerings into new areas.”

Airbnb noted in September 2018 that informally, some business users had already started to use Airbnb for work to book homes for off-sites. This Gaest acquisition could help formalize some of that by providing a platform for Airbnb hosts to list their homes specifically for this use case, and of course a pool of potential customers to make bookings.

“We imagine a world where anyone can share their space for professional events and, in the longer term, for celebrations,” said David Holyoke, Global Head of Airbnb for Work, in a statement. “Bringing in a leadership team with strong domain knowledge allows us to accelerate our work in this area, and more importantly Gaest.com and Airbnb share a vision of helping every space owner become entrepreneurs through sharing their spaces with those who need it.”


Source: Tech Crunch

Metroid Prime 4 development was going so badly, Nintendo is starting over

For all those wondering why we haven’t heard much out of the Metroid Prime 4 camp since the title was announced at E3 2017 (with an admittedly underwhelming trailer), Nintendo just offered a surprisingly frank answer. Senior Managing Executive Officer Shinya Takahashi appeared in a video to explain that game development thus far has failed to live up to the company’s standards.

As such, the company is changing studios, returning Retro, which developed earlier entries in the Prime franchise. Retro producer Kensuke Tanabe will essentially be starting things over from scratch.

“This change will essentially mean restarting development from the beginning,” Takahashi explained, addressing the camera in a somber, apologetic tone, “so the completion of the game will be delayed from our initial internal plan. We strongly recognize that this delay will come as a disappointment to the many fans who have been looking forward to the launch of Metroid Prime 4.”

It’s a blow for one of Nintendo’s best-loved franchises — especially considering how long the game has been in the works. The move is also a highly unusual one for the company, including a very public apology. But in spite of a bit of a black eye in all of this, there’s something to be said for the exacting standards that would lead Nintendo to make such a difficult decision.


Source: Tech Crunch

Facebook to encrypt Instagram messages ahead of integration with WhatsApp, Facebook Messenger

Facebook is planning to roll out end-to-end encryption for Instagram messages, as part of a broader integration effort across the company’s messaging platforms, including WhatsApp and Facebook Messenger.

First reported by The New York Times, the social media giant said reworking the underlying infrastructure of its three messaging apps will allow users to talk to each other more easily. The apps will reportedly remain independent of one another — with Instagram and WhatsApp bringing in 1 billion and 1.5 billion users, respectively.

In doing so, Facebook is adding end-to-end encryption to Instagram messages. That will bring a new level of security and privacy to Instagram users for the first time. Facebook will also begin encrypting Facebook Messenger by default, which has, to date, required users to manually switch on the feature.

So far, only WhatsApp messages are end-to-end encrypted by default.

The plans are part of the company’s effort to keep people on the platform for longer, the Times reported, at a time when the company has 2.2 billion users but user trust has declined following a string of privacy scandals and security incidents. End-to-end encrypted messages can’t be read beyond the sender and the recipient — not even Facebook. In shutting itself out of the loop, it reduces the amount of data it can access — and can be theoretically stolen by hackers.

“We want to build the best messaging experiences we can; and people want messaging to be fast, simple, reliable and private,” a Facebook spokesperson told TechCrunch. “We’re working on making more of our messaging products end-to-end encrypted and considering ways to make it easier to reach friends and family across networks.”

“As you would expect, there is a lot of discussion and debate as we begin the long process of figuring out all the details of how this will work,” the spokesperson said, without providing a timeline on the planned unification.

But how the integration will be met by European regulators is anybody’s guess.

Two years ago, Facebook rolled back its plans to begin sharing WhatsApp user data with the social network for advertising at the request of U.K. data protection authorities, putting the plan on ice across the European continent. Under the proposed changes to its terms and conditions, WhatsApp would have shared the user’s phone number that was used to verify their account, and the last time they used the service. That led to concerns about privacy, given that a real-world identity isn’t needed for WhatsApp, unlike Facebook, which requires users display their real names.

Facebook acknowledged that it didn’t have answers just yet about how it plans to navigate the issue, citing the early stages of its planned integration.

The app integrations are said to be a priority for 2019, with an eye for a 2020 release, the Times said.


Source: Tech Crunch