Good Monday morning. It’s January 28th. Happy Tech Earnings Week. Apple and telecoms report Tuesday, Microsoft and Facebook are reporting Wednesday, and Amazon is up Thursday. Count on lots of news all week.

Today’s Spotlight takes about 4 minutes to read.

Highlights

  • Fifteen U.S. Senators have written the FTC and FCC to urge an investigation of the “sale of Americans’ location data by wireless carriers, location aggregators, and other third parties.” (PDF of the letter)

 

  • Facebook announced plans to combine Instagram, Messenger, and WhatsApp. It’s a gamble. All 3 are on every list of the most popular mobile apps.

 

  • U.S. regulators are considering whether and how to fine Facebook for its role in the Cambridge Analytical data scandal. This is on the heels of the EU fining Google $57 million for violations of its GDPR data privacy law.

 

Your Data Is Out There

 Have I Been Pawnd (HIBP) founder Troy Hunt wrote a “post for the masses” instead of the techies and detailed “Collection 1”–a data file that combines 1.1 billion combinations of email addresses and passwords. The article is easy to understand with links to more info for the data curious. Troy’s HIBP service is free and should be part of your data routines, along with a password manager and a physical key like the ones sold by Yubico.

We learned about other data out there this week. More than 24 million financial records, including mortgage and tax information from the country’s biggest banks, were found online by security analyst Bob Diachenko, according to TechCrunch. Luckily Bob is a responsible researcher and discloses only after notifying affected organizations. The third parties managing the personal data didn’t even have current relationships with the banks in some cases, but still had to maintain the records.

No matter what search, social media, and other data privacy targets do, the data breaches that have caused the most trouble have been at the federal government or companies like Equifax and Marriott. In short, data security is a bigger issue than Google or Facebook although they certainly play a role.

If all of this was Greek to you and you’re unsure about what to do next, you should email George since he’s Greek and can help.

What’s With All The Fines?

Seven months after the EU passed its GDPR, a set of stringent personal data regulations, French regulators have fined Google $56.8 million. The main infringements were related to “transparency, information, and consent”, specifically Google requiring users to accept new privacy policies.

The ‘right to be forgotten’ is another troubling EU concept for Google and search engines. A Dutch surgeon who was disciplined for medical negligence has won her suit against Google in an Amsterdam court to have that information removed from the search engine according to The Guardian.

This is an important concept that we’ve helped U.S. entities navigate. European courts have established that search engines must adhere to a European citizen’s ‘right to be forgotten’, which allows inadequate, excessive, or irrelevant content to be ignored. The guidelines are often considered vague. This is not U.S. law, which generally provides for truth as a defense against removing data from a search engine.

Facebook is also dealing with the possibility of regulatory fines in the U.S. for its role in privacy violations. The FTC is the lead agency considering “a record-setting fine” for Facebook according to the Washington Post. A prior consent decree Facebook entered into with the FTC and the lingering effects of the government shutdown are complicating the final resolution.

Google and Facebook may also create future liabilities in Europe under the continent’s Copyright Directive, which permits companies to demand money when fragments of their articles appear on third party sites. Google is considering blocking access to Google News throughout Europe as a result, reports Bloomberg.

This negative activity has led to some predictable actions. The five biggest tech companies, including Microsoft, Apple, and Amazon, joined Facebook and Google in accounting for nearly $60 million in federal lobbying during 2017 according to a study in The Hill.  Facebook is also receiving increasingly negative attention from the media, according to a Recode analysis of consumer sentiment about Facebook articles in The New York

 

Spotlighted

Worth your time this week:

  • More than 11,000 Microsoft employees are caught up in a Reply-All fiasco that is equal parts amusing and sad. (Business Insider)
  • Gmail’s mobile interface is adding strikethroughs, undo and redo, more. (TechCrunch)
  • Netflix now has 139 million subscribers worldwide. And in line with our entertainment article last issue, raised prices. Who knew they read Spotlight? (CNN)

 

Like this summary? You can get a free copy emailed  at the beginning of each work week.

Good Monday morning. It’s December 10th. Look for Google CEO Sudar Pichai to testify before the House Judiciary Committee. Citing no proof, some lawmakers and the President have accused the search company of presenting results with political bias.

Today’s Spotlight takes about 4 minutes to read.

Highlights

    • We’ve been telling you that Facebook wasn’t doing illegal things regarding data privacy, merely sleazy things. That issue came home to roost when the UK Parliament dumped 250 pages of unredacted emails that were seized a week ago. Sleazy, but not illegal is the industry consensus, and you can read for yourself in this HUGE PDF.

 

    • More data breaches were reported, the biggest at question-and-answer site Quora, where hackers stole 100 million passwords. We’re linking to a new, well done guide called “The Wired Guide to Data Breaches” that is worth your time.

 

Breaking news this weekend: BuzzFeed is reporting that it has seen two subpoenas from the FBI to third party companies regarding millions of fake comments opposing net neutrality that were posted with the names and addresses of Americans who did not make them. FCC Chair Ajit Pai acknowledged this week that “millions of Russian and fake comments” influenced the repeal of net neutrality.

Visual Social Media

 

Facebook garners most of the attention when social media is discussed but its Instagram subsidiary and Alphabet’s YouTube subsidiary are where almost all growth and innovation are occuring. The top 50 accounts at each platform all have more than 20 million followers. And they’re not all celebrity accounts either.

About 85% of all U.S. adults online use YouTube–and one quarter of adults use YouTube more than once per day.  At the same time, the number of active Instagram accounts grew from 800 million to 1 billion in the last 14 months. Analysts expect that U.S. and worldwide growth will continue increasing at a 20% plus rate for the next several years.

Don’t ask who is doing all of this. Instead, understand that it’s just about everyone.

And people are making money.

Vox interviewed Viral Nation co-founder Joe Gagliese who admittedly has every reason to hype the markets he serves but claims that influencers with 10,000-50,000 subscribers can charge “a few thousand dollars for a post”.  Keep the numbers quoted as anecdotal and enjoy that interview here.

This week also featured Forbes’ annual ranking of the Highest-Paid YouTube stars. Seven-year-old Ryan (with no last name publicized) is the face of Ryan ToysReview and a new line of toy collectibles sold at Walmart. Ryan TR generated $22 million in revenue this year to go along with last year’s $11 million.

Ryan also has 17 million subscribers. When this was written during the weekend, a two day old post of his about riding a bike with no training wheels was viewed nearly 2 million times. That was followed the next day by a 6 1/2 minute post that generated 388,000 more views.

All told, Ryan has 26 billion-with-a-b views, including at least one video on YouTube’s list of all-time Top 50 viewed videos. Most of the videos feature Ryan getting new toys which he unboxes and plays with as a “review”. He’s got the former CEO of Nickelodeon guiding his channel now. For context, that traditional kids television network has about 1.2 million daily viewers.

Ryan moves merch for toy companies. The video showing him unboxing and playing with “Pet Dinosaur Jurassic World Alpha Training Blue” has received 2 million views since it was posted 10 days ago. The toy’s cost: $229.

Check out the video.

What Does All This Mean For You?

Instagram has been Facebook’s ace-in-the-hole for the six years since its been acquired. The same people often frequent Facebook and Instagram but behave differently on each. Meanwhile YouTube continues to be Google’s stake-in-the-ground for consumer living rooms. Amazon’s Alexa has entered the fray with deep discounts on its TV Fire Stick that adds functionality and big Prime Viewing library.

Organizations that advertise are going to have to develop video and visual display advertising.

Consumers will eventually be migrated to primarily video advertising such as the 6 second short form and in-video commercials that spark complaints but are no different than a television network would air.

The biggest difference: when I watched Ryan’s channel to write this, I saw ads for things that interested me specifically like advertising and music. Those aren’t what would air on Nickelodeon or someone buying space on Ryan’s channel. Personalized targeting makes markets more efficient than ever.

Fun read: NY Times technology writer Brian Chen is out this week with a fun piece called “I Tried to Make My Dog an Instagram Celebrity. I failed.

 

Spotlighted

 

  • The National Health Service in the U.K. has now been forbidden from buying fax machines and must stop using its existing ones within the next two years. Presumably 1996 called and wants its technology back.

 

  • And during this holiday season, you need to be aware of BrainGate, a project from researchers at Brown University and Boston University. To quote WBUR’s great story, they are “using a tiny brain implant to allow severely paralyzed or ‘locked-in’ patients to move a computer cursor with their minds.”  With. Their. Minds.  It’s not science fiction. It’s fantastic.

Good Monday morning. It’s December 3rd.  #GivingTuesday was a hit last week. Thank you for supporting our friends at SPARC. They reached their goal. Overall, donors gave $320 million to charity, according to The Chronicle of Philanthropy. More than a third of that was on Facebook.

Also, Hanukkah started at sundown local time yesterday. Chag Sameach!

Today’s Spotlight takes about 3 minutes to read.

Highlights

 

  • Marriott’s data breach of 500 million records got the headlines, but the USPS also had a slip up that caused them to expose the records of 60 million people.  Meanwhile, the EU’s Data Protection Commissioner accused LinkedIn of misusing 18 million email addresses to target individuals with ads.

 

  • Akami reports that 45,000 older routers have been compromised by a known vulnerability. Those routers connect behind the scenes to millions of devices. The best way to protect yourself is to have new hardware or ask your Internet service provider to help you determine if your router has up-to-date firmware.

 

  • Google is now providing answers without any search results in some cases. Google confirmed to Search Engine Roundtable that they would display calculations or information without any links to web pages when they have a “high degree of confidence” that the searcher wants a calculation, unit conversion, or local time. Details and samples here.

Facebook’s Empty Chair Problem

We ran down Facebook’s latest scandals last week. Although everyone knew that Mark Zuckerberg would not be testifying to Parliament last week the UK Parliament’s Digital, Culture, Media and Sport Committee tweeted out this image of an empty chair with Zuckerberg’s name in front.

No one is happy with Zuckerberg, but he is the founder, CEO, and most importantly, controlling shareholder of Facebook.  Prominent tech journalist Kara Swisher has been a vocal critic. “He’s 33 years old and has two children,” she famously said earlier this year. ” I think this idea that we sort of juvenilize these men from Silicon Valley as if they don’t have responsibility is kind of ridiculous.”

Facebook’s Black People Problem

That’s the subtitle of a 2,500 word memo that black Facebook exec Mark Luckie sent to all Facebook employees on November 8th. Luckie, who was planning to leave his role as Strategic Partner Manager for Global Influencers, wrote that the company’s staffing and treatment of many of its black employees is lacking.

Luckie cites data that black employees only make up about 4% of Facebook’s employee base. “In some buildings, there are more ‘Black Lives Matter’ posters than there are actual black people,” he writes before describing anecdotal but pain-filled examples like seeing employees tap or hold their wallet or put their hands in their pockets when he passed by.

What Does All This Mean For You?

Inertia exists in any enterprise that serves a double-digit percentage of the planet’s population. But Facebook also faces strong opposition from product-oriented tech companies like Apple, the EU and U.S. governments, and a growing chorus of tech voices including Swisher, Jaron Lanier, and Tristan Harris.

We expect there to be data privacy regulations in the next 2-3 years. Facebook execs already support that idea. Getting industry-wide engagement will be more difficult, but we know that the federal government wants to create advertising regulations beyond what the Federal Trade Commission currently manages.

Smart consumer-centric organizations won’t leave Facebook, and they shouldn’t. Whether business or government-facing organizations leave is a judgment call based on whether a Facebook presence increases the organization’s profits.

If you’re looking at the issue from a strictly consumer perspective, this is probably the most open your data will be on the site. But even this week, a press release arrived touting new availability for third party data to be used to target you, friendly reader, on Facebook based on your offline purchases.

 

Spotlighted

 

  • Google employees are airing their anger at their employer working with the Chinese government to build a censored search engine called Dragonfly. More than one thousand of them signed an open letter to the company in August. A new open letter to the company says that Google will be complicit in human rights abuses if it allows some features like identifying searchers to be launched. You can read the letter here.

 

  • Another letter to a tech company started gaining momentum this weekend when eight Democratic lawmakers wrote to Amazon over concerns about its facial recognition software. Rep. Jimmy Gomez (D-CA) says it’s the third time he’s asked the company for answers. NBC has details.

 

  • Can you tell the difference between a computer generated image and a photograph? I joined nearly 60% of people in failing to get half the answers correct in an online test from software company AutoDesk. Try your hand at their Fake or Foto quiz.