Meta will charge users for its subscription service

Claire Peterson on September 5, 2023

Meta – Another upcoming huge tweak Mark Zuckerberg made to Facebook and Instagram on Sunday has already angered users.

The CEO of Meta reportedly stated that the business is exploring a paid membership service that validates Facebook and Instagram users.

The unexpected Meta news surfaced just after Twitter said that it will start charging users for SMS two-factor authentication.

The news

In his introduction, Zuckerberg said that the subscription service will be dubbed “Meta Verified.”

Everyone who wants to utilize this service must pay $11.99 each month.

Those who use iOS, however, will have to pay $14.99 a month.

Australia and New Zealand will have access to Meta Verified this week before other regions.

Meta Verified

Meta’s subscription service is more than just a status symbol.

Also, it has benefits including enhanced protection against fake accounts.

Furthermore, Meta Verified provides clients with easy access to customer service.

A blue badge that enables account verification is given to users who utilize the subscription service.

Anybody who wants to utilize the subscription must have a government ID that exactly matches the name and photo on their profile.

They must also be at least 18 years old to subscribe to Meta Verified.

Statements

Mark Zuckerberg posted the following in a post on the Instagram broadcast channel Meta Verified:

“This new feature is about increasing authenticity and security across our services.”

The startling revelation shocked everyone, but Meta clarified to let everyone breathe.

The social media behemoth said that the verified accounts, which were previously exclusively accessible to real, well-known people, will not be impacted by the new subscription service.

“We are evolving the meaning of the blue badge to focus on authenticity so we can expand verification access to more people,” said a Meta spokesperson.

“We will display follower count in more places so people can distinguish which accounts are notable public figures among accounts that share the same name.”

A league of their own

Due to the company’s use of subscription services, Meta Verified falls under the same banner of platforms like:

Discord
Reddit
Twitter
YouTube

Twitter has generated the hottest discussions out of all the websites with a committed subscription service.

Twitter Blue

In December, Twitter Blue, a premium service for verification, was re-released by Elon Musk and Twitter.

The firm had been utilizing the service up until a flood of fake “verified” accounts forced them to withdraw.

Twitter has also added new colors for a number of checkbox choices to make it simpler to distinguish between distinct accounts, including:

Gold checks for companies
Gray checks for government organizations and affiliates
Blue checks for individuals, celebrities or non-celebrities

Android and iOS users may use Twitter by subscribing to Twitter Blue for $11 per month.

Elon Musk wanted to increase the number of customers when he paid $44 billion to buy the business in late 2022.

Two-factor authentication

There was uproar when Twitter said last week that it was reviewing how it handled two-factor authentication.

SMS texts are a two-factor authentication mechanism that is exclusively accessible to Twitter Blue subscribers, according to the press release.

A 2021 survey by Twitter Account Security found that just 2.6% of Twitter users had 2FA activated.

Around 74.4% of customers have so far chosen SMS authentication.

Beginning on March 20, non-Twitter Blue users will have two more, cost-free login options:

A security key
A mobile authentication app

On February 15, the news was made on Twitter in a blog post that read:

“Instead of only entering a password to log in, 2FA requires you to also enter a code or use a security key. This additional step helps make sure that you, and only you, can access your account.”

“While historically a popular form of 2FA, unfortunately we have seen phone-number based 2FA be used – and abused – by bad actors.”

“So starting today, we will no longer allow accounts to enroll in the text message/SMS method of 2FA unless they are Twitter Blue subscribers.”

“Non-Twitter Blue subscribers that are already enrolled will have 30 days to disable this method and enroll in another.”

“We encourage non-Twitter Blue subscribers to consider using an authentication app or security key method instead.”

“These methods require you to have a physical possession of the authentication method and are a great way to ensure your account is secure.”

…

Social media faces more regulations in 2023

Edward Anderson on March 20, 2023

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Social media: The bipartisan spending bill passed by Congress last week essentially forbade the installation of TikTok on devices used by the government.

This year, advocates and legislators revealed proposals for tighter regulation of social media companies as 2023 kicks into gear.

TikTok

The video-sharing app, which receives more than 1 billion monthly users, is owned by the Chinese corporation ByteDance.

Christopher Wray, the director of the FBI, and lawmakers have publicly stated their positions on TikTik’s ownership structure.

They claimed that the structure exposes information about US users.

In addition, Chinese-based businesses are compelled by law to provide the government with user information on request.

The concern

The National Intelligence Law of 2017 and the Counter-Espionage Law of 2014 are the two Chinese laws that have alarmed the US government since 2019.

According to the Counter-Espionage law, businesses and individuals “may not refuse” to divulge information when the state security agency conducts an espionage investigation and discovers crucial information.

Organizations or people are expected to support, help, and cooperate with governmental intelligence initiatives, as stated in Article 7 of the Intelligence Law.

The state also protects those who assist them.

Response

Despite TikTok’s repeated assurances that US user data is not kept in China, little has changed from their comments.

TikTok has been compared to “digital fentanyl” by Wisconsin Republican Rep. Mike Gallagher.

Additionally, he thinks that the software has to be banned outright nationwide.

“It’s highly addictive and destructive,” said Gallagher.

“We’re seeing troubling data about the corrosive impact of constant social media use, particularly on young men and women here in America.”

Social media regulation

Twitter, YouTube, and other social networking sites, like TikTok, use the same algorithms, claims Facebook whistleblower Frances Haugen.

She thinks that increasing the transparency of their operations should be the regulators’ first move.

According to Haugen, the majority of people are unaware of the US’s gap in social media regulation compared to other countries.

“This is like we’re back in 1965,” said Haugen. “We don’t have seatbelt laws yet.”

Tech bills in 2022

Congress failed to pass some of the most radical elements of technology-related legislation the year before.

Antitrust law and a bill aimed at protecting children were among the legislations that were vetoed.

Antitrust legislation

Early in 2022, lawmakers created a bill that specifically targeted Apple’s and Google’s app stores for mobile devices.

The legislation also placed limitations on developers.

The American Innovation and Choice Online Act was advanced, which has some of the same objectives.

The Act forbids larger companies from unfairly treating or preferring their own products over those of competitors.

The plan states that developers would not be required to use the platform’s payment method for distribution if the app store had more than 50 million US users.

Additionally, app developers cannot be punished for selling their products elsewhere for a lower price.

Kids Online Safety Act

In November, bipartisan legislation was launched by Senators Marsha Blackburn and Richard Blumenthal to put regulations on websites that children 16 and younger can view.

The proposed law would compel platforms to restrict content that could cause minor users bodily injury or psychological trauma, including the following:

Self-harm/suicide
Encouragement of addictive behavior
Enabling online bullying
Predatory marketing

Additionally, websites have to follow the law’s requirements regarding connection restrictions and default privacy settings.

Even after the legislation underwent changes, several organizations still opposed it.

Change

There is still a patchwork of state rules dictating how to maintain customer data, even though Congress made significant progress toward a consensus measure on national privacy standards in 2022.

Many of the bills that have reached the Senate floor enjoy bipartisan support, according to Senator Amy Klobuchar.

However, she cautioned that the tremendous influence of the tech industry might cause huge bipartisan support to collapse over the next 24 hours.

According to Klobuchar, the American people won’t demand social media company reform until they declare that “enough is enough.”

“We are lagging behind,” said Klobuchar.

“It is time for 2023, let it be our resolution, that we finally pass one of these bills.”

References:

More social media regulation is coming in 2023, members of Congress say

Huawei says it would never hand data to China’s government. Experts say it wouldn’t have a choice

Senate committee advances bill targeting Google and Apple’s app store profitability

Kids Online Safety Act may harm minors, civil society groups warn lawmakers

Teenagers using social media should be older than 13

Jason Robinson on March 13, 2023

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Teenagers: In the digital age, social media has had a big influence on people’s daily lives.

The bulk of users are millennials, who have grown up with technology and shaped the internet world.

On the other hand, Gen Zs are developing and starting to use social media as early as 13-year-old teenagers, according to experts.

Finding their identity

Children should wait until they are 13 years old to create profiles on social networking sites, according to US Surgeon General Vivek Murthy.

Murthy emphasized that although many websites allow teenagers that old to sign up, they are still just trying to figure themselves out.

For the social networking sites listed below, 13-year-olds can sign up:

Facebook
Instagram
Snapchat
Snapchat
TikTok
Twitter
Wink

“I, personally, based on the data I’ve seen, believe that 13 is too early,” said Murthy.

“It’s a time where it’s really important for us to be thoughtful about what’s going into how they think about their own self-worth and their relationship and the skewed and often distorted environment of social media often does a disservice to many of those children.”

Concerns

The growing usage of social media among teenagers worries medical specialists.

They emphasized a number of academic research on the potential harms that the platforms may do to teenagers.

Vivek Murthy recognized that it would be difficult to discourage teenagers from using social media given their widespread use.

However, parents could succeed if they put up a unified front.

“If parents can band together and say you know, as a group, we’re not going to allow our kids to use social media until 16 or 17 or 18 or whatever age they choose,” he offered.

“That’s a much more effective strategy in making sure your kids don’t get exposed to harm early.”

Psychological effects

Teenagers who use social media frequently have their brain chemistry changed, according to recent research.

According to a research that was released in January by JAMA Pediatrics, teenagers who often check social media exhibit increased neuronal sensitivity in some regions of their brains.

Their brains are more sensitive to social repercussions as a result.

Psychiatrist Dr. Adriana Stacey and her colleagues have raised the topic throughout the years.

The majority of the people Stacey deals with are college students and teenagers, and she claims that using social media causes a “dopamine dump.”

“When we do things that are addictive like use cocaine or use smartphones, our brains release a lot of dopamine at once,” she said. “It tells our break to keep using that.”

“For teenagers in particular, this part of their brain is actually hyperactive compared to adults. They can’t get motivated to do anything else.”

More time spent in front of a screen may affect brain development, according to recent studies.

For instance, younger children’s less developed reading and language skills were substantially connected with increased screen usage.

Lawmaker reacts

Democratic Senator Chris Murphy has heightened concerns about social media.

He recently expressed his worries regarding social media in an opinion post for Bulwark that addressed loneliness and mental health.

“We have lost something as a society, as so much of our life has turned into screen-to-screen communication,” said Murphy.

“It just doesn’t give you the same sense of value and the same sense of satisfaction as talking to somebody or seeing someone.”

The senator and surgeon general are both intimately familiar with the negative impacts of social media addiction.

Both Chris Murphy and Vivek Murthy are fathers; while Vivek has small children, Murphy has teenagers.

“It’s not coincidental that Dr. Murthy and I are probably talking more about this issue of loneliness more than others in public life,” said Murphy.

“I look at this through the prism of my 14-year-old and my 11-year-old.”

Chris Murphy went on to claim that the US is not a defenseless nation despite confronting Big Tech.

He thinks that government could take a number of steps to prevent teenagers from using social media, while also pressuring businesses to develop less addictive algorithms.

When speaking about the problem of addictive algorithms, Murthy claimed that teenagers and Big Tech aren’t in a fair fight.

“You have some of the best designers and product developers in the world who have designed these products to make sure people are maximizing the amount of time they spend on these platforms,” said the surgeon general.

“And if we tell a child, use the force of your willpower to control how much time you’re spending, you’re pitting a child against the world’s greatest product designers.”

Chris Murphy is hopeful about the future of social media in despite the obstacles.

“None of this is out of our control. When we had dangerous vehicles on the road, we passed laws to make those vehicles less dangerous,” he said.

“We should make decisions to make [social media] a healthier experience that would make kids feel better about themselves and less alone.”

Twitter Blue is $3 more for iPhone users

Jason Robinson on December 19, 2022

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With an emphasis on the Twitter Blue subscription service, Elon Musk and Twitter have been collaborating to improve the organization’s revenue model.

On Monday, the social media company revealed a new iteration of Twitter Blue.

Last month, Elon Musk halted and postponed the launch, which prompted the upgrade.

Apple service

For web users, Twitter Blue is $8 per month; however, Apple customers are in for a shock since the subscription costs them $11.

There is an additional $3 fee for iOS users who purchase the subscription through the Apple App Store.

The price rise is a result of Elon Musk, the new owner, lately expressing his displeasure with the tech giant’s 30% decline in digital revenue generated by applications.

The cut

Musk began criticizing Apple in November over its decreased Twitter advertising expenditures and its 30% decline in digital sales due to applications.

Tesla’s CEO added that Apple has threatened to remove Twitter from the App Store.

Musk said that he was “going to war” in a later deleted tweet.

Additionally, he suggested he would design his own brand of cellphones from the ground up.

Apple’s reactions

Apple CEO Tim Cook remained silent on Musk’s activities despite numerous provocations.

From a commercial standpoint, Twitter is just another app, and the major tech company doesn’t make much money from its in-app transactions.

Government intervention

Republicans JD Vance, the next senator from Ohio, and Florida Governor Ron DeSantis advised Musk on how to pressure Apple.

DeSantis stated that Congress should investigate Apple’s use of monopoly power if it carried out its threat to fire Twitter.

“You also hear reports Apple is threatening to remove Twitter from the App Store because Elon Musk is actually opening it up for free speech,” said DeSantis.

“And [Musk] is restoring a lot of accounts that were unfairly and illegitimately suspended for putting out accurate information about Covid.”

“If Apple responds to that by nuking them from the app store, I think that would be a huge, huge mistake, and it would be a really raw exercise of monopolistic power.”

On the other hand, JD Vance expressed similar views and said:

“This would be the most raw exercise of monopoly power in a century, and no civilized country should allow it.”

Previous pullouts

The digital behemoths will likely delist Twitter’s app from the App Store if Apple stops collecting platform fees.

Fortnite launched a feature to the iPhone app in 2020 that allowed players to purchase in-game cash from Epic Games directly, lessening Apple’s typical 30% cut of purchases.

Apple took Fortnite off the App Store the same day.

Later, Apple prevailed in a court battle with the other party.

An appeal, however, is still ongoing.

Musk wants to generate more revenue through Twitter subscriptions rather than through adverts.

Twitter is cutting costs while carrying a sizable debt, which reduces Apple’s advertising, a significant challenge.

The subscription

Twitter announced on Saturday that users with verified phone numbers would see a blue checkmark when an account is reviewed and approved.

Subscribers to the Blue service will have access to exclusive features and services, such as tweet editing.

Twitter also promised users the following:

Fewer ads on their timeline
The option to post longer videos
Priority in replies and mentions

The relaunch includes a feature that enables companies to get a gold checkmark.

To avoid impersonations, governments will also have a gray checkmark.

Users can modify their username, display name, and profile photo, according to Twitter.

But if they did, their blue check would be forfeited until their account was again examined.

Elon Musk also disclosed that there would be other functionalities.

Early launch

An early version of Twitter Blue went live in November.

After some users started mimicking companies, the government, and prominent people, Musk promptly shut down the service.

One account tweeted that insulin was free while posing as the pharmaceutical company Eli Lily.

As a result of the false assertion, the company’s stock price fell sharply.

The same issue also plagued the website of the pharmaceutical business AbbVie.

It was once more delayed despite Musk’s assurances that the service would resume on November 29.

Musk

The CEO of Tesla and SpaceX paid $44 billion in October to purchase the social media site.

He has concentrated on Twitter Blue since taking over to replace advertising revenue.

The “huge lever” and the power of the people would be provided by the new verification mechanism, according to Musk.

Before his acquisition, Musk was a vociferous opponent of Twitter’s prior verification process since it favored users like:

Politicians
Executives
Members of the press
Organizations

Other social networking sites operated by Meta, like Facebook and Instagram, utilize similar verification mechanisms.

Users who were verified under Twitter’s previous strategy are now regarded as legacy verified accounts that “may not be notable” due to the debut of the new service.

Elon Musk announced Monday that all legacy blue checks would soon be destroyed.

“The way in which they were given out was corrupt and nonsensical,” said Musk.

References:

Twitter Blue relaunches, now costs $11 per month if you subscribe from an iPhone

Elon Musk may be luring Apple into a fight with Republicans

TikTok research finds teens exposed to harmful content

Nicholas Alexander on December 19, 2022

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In 2022, TikTok faced many issues, with security issues coming in the first place.

A recent study raises the possibility that it might negatively affect young users.

After kids create an account on the video-sharing app, it may begin to promote inappropriate material regarding eating disorders and suicide.

The outcomes are expected to fuel the fires as TikTok’s issues worsen, especially in light of how it impacts young users.

The study

The charity Center for Countering Digital Hate (CCDH) released a report on Wednesday.

They discovered that it takes less than three minutes to watch content on TikTok about body image and suicide after signing up.

Users can find a community on the app that promotes information about eating disorders five minutes later.

The researchers claim that they created eight more accounts in the US.

New TikTok users in the US, UK, Canada, and Australia must be at least 13 years old.

The accounts took a little break and liked content about mental health and body image.

Every 39 seconds throughout the course of a 30-minute period, TikTok suggested videos about mental health and body image, according to the CCDH.

TikTok woes

The study is being released as local, state, and federal officials look into potential sanctions for TikTok, particularly concerning privacy and security concerns.

They are also evaluating the app’s safety for teenagers.

The study was made available to the public more than a year after senators questioned executives from social media companies during congressional hearings.

They were worried that the harmful content that would be shared on their platforms would expose younger users, particularly adolescent girls, to their mental health and self-esteem.

Following hearings and disclosures by Facebook leaker Frances Haugen, the companies decided to tighten their control over teenagers.

The CCDH study, however, indicates that more work has to be done.

“The results are every parent’s nightmare,” said Imran Ahmed, the CEO of the CCDH.

“Young people’s feeds are bombarded with harmful, harrowing content that can have a significant cumulative impact on their understanding of the world around them and their physical and mental health.”

Response

In response to the study’s publication, a TikTok official claimed that it was incorrect for a number of reasons, including:

Small sample size
The limited 30-minute window for testing
How the accounts scrolled past unrelated topics to find other content

“This activity and resulting experience does not reflect genuine behavior or viewing experiences of real people,” said the spokesperson.

“We regularly consult with health experts, remove violations of our policies, and provide access to supportive resources for anyone in need.”

“We’re mindful that triggering content is unique to each individual and remain focused on fostering a safe and comfortable space for everyone, including people who choose to share their recovery journeys or educate others on these important topics.”

The representative claims that the CCDH doesn’t differentiate between positive and negative videos on particular issues, noting that people frequently share inspiring stories of conquering eating disorders.

Safeguards

TikTok asserts that it is constantly enhancing user protections.

For instance, the app now has filters that may exclude explicit or “possibly harmful” videos.

TikTok developed a “maturity score” in July to identify videos with potentially mature or advanced content.

Additionally, users may choose how long they want to spend watching TikTok videos, regularly schedule screen breaks, and access a dashboard that shows information like how often they use the app.

Additionally, TikTok offers a number of parental restrictions.

Algorithm

The US Senator Richard Blumenthal’s office faked a 13-year-old girl’s Instagram account last year.

The account was followed by posts regarding dieting and eating disorders (which are supposed to be banned).

Blumenthal claims that the account began to be elevated to accounts with more extreme diets.

Instagram later deleted the accounts because it had violated its policies against encouraging eating disorders.

Policy violations

According to TikTok, it is forbidden to post anything that suggests suicide or other self-destructive behavior or that normalizes, normalizes, or glorifies such behavior.

The information below shows videos that were taken down for breaking the laws against self-harm and suicide between April and June 2022:

93.4% were removed at zero views
91.5% were removed 24 hours after being posted
97.1% were removed before anyone reported them

The representative claims that anyone looking for prohibited terms like “#selfharm” won’t come up with anything.

They will be recommended to local aid programs instead.

Despite the assurances, the CCDH argues that additional steps are required to limit some content and enhance protection for individuals under 18.

“This report underscores the urgent need for reform of online space,” said Ahmed.

“Without oversight, TikTok’s opaque platform will continue to profit by serving its users – children as young as 13, remember – increasingly intense and distressing content without checks, resources or support.”

Reference:

TikTok may push potentially harmful content to teens within minutes, study finds

Meta threatens to remove news content on FB

Edward Anderson on December 12, 2022

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Meta, the parent company of Facebook, threatened to remove news content from its platforms on Monday.

The threat came after reports emerged that US lawmakers are adding a controversial pro-media legislation to the annual Defense Licensing Act.

Meta’s warning highlights the danger the Journalism Competition and Preservation Act (JCPA) poses to its business model.

The bill

Senator Amy Klobuchar introduced the legislation with support from more than a dozen lawmakers from the two political parties.

It would create a four-year exemption under US antitrust laws and allow news organizations to jointly negotiate with social media platforms for a greater share of ad revenue in exchange for news content.

Additionally, the legislation is one of many tech-focused antitrust laws waiting on Capitol Hill.

Response

Meta spokesman Andy Stone wrote a statement saying:

“If Congress passes an ill-considered journalism bill as part of national security legislation,” he started.

“We will be forced to consider removing news from our platform altogether rather than submit to government-mandated negotiations that unfairly disregard any value we provide to news outlets through increased traffic and subscriptions.”

Previous actions

Meta has already demonstrated that it intends to follow through with its threats.

A similar legislation was proposed and passed in Australia last year.

As a result, Meta has temporarily removed the ability for users to view and share post links on its platforms.

However, the social media giant changed course when Australia passed the law.

The tech industry

Digital rights organization Fight for the Future has addressed the reports, saying multiple sources said efforts to include the JCPA in the annual defense bill were successful.

Additionally, the National Defense Authorization Act is included in the language of the JCPA.

Meanwhile, the tech industry is fiercely opposing the JCPA.

Furthermore, the bill has been criticized by more than two dozen civil society groups, often clashing with Big Tech on policy issues.

The groups wrote a letter to congressional leaders on Monday saying the JCPA could exacerbate disinformation and disinformation.

The law could allow news sites to sue tech platforms for restricting the publication of a story and intimidate them into moderating offensive or misleading content.

Additionally, the letter says the JCPA may favor large media companies over smaller, local and independent outlets, which have been hurt by falling digital advertising revenue.

The groups that signed the letter include:

The American Civil Liberties Union
The Electronic Frontier Foundation
The Wikimedia Foundation
Public Knowledge

Reference:

Meta threatens to remove news content over US journalism bargaining bill

Meta finds US military connection in fake accounts

Jason Robinson on December 12, 2022

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Meta on Tuesday announced that Facebook and Instagram accounts promoting US interests overseas have ties to the US military.

According to the social media giant, a network of fake accounts fueled interests by targeting audiences in Afghanistan and Central Asia.

The announcement marks a rare example of a US entity tying an online influence operation to Washington instead of a foreign government.

The news

Meta has removed more than three dozen Facebook and two dozen Instagram accounts for violating the platform’s “inauthentic coordinated behavior” policy.

While attributing it to the military, Meta did not name any specific US military command.

However, in September, the Pentagon opened a full investigation covering entities involved in online influence operations.

The Washington Post reported that US central command was among those being monitored.

The accounts

Meta claimed to have deleted the fake Facebook accounts.

The company also added that the United States is helping the country of Tajikistan secure its border with Afghanistan.

Furthermore, Meta said Washington is the key to stability in the region.

Researchers from analytics firm Graphika and the Stanford Internet Observatory documented the activity in a report in August.

The study says Afghanistan-related posts peaked during periods of strategic importance to the United States.

It covers the months leading up to the chaotic withdrawal of the US military from Afghanistan last August.

On Tuesday, Meta said the people behind the accounts had taken extra steps to hide their identities.

As a result, the activity has received little attention from legitimate users on Facebook and Instagram.

Reception

One former US official who focused on Russian issues complained about the ineffective influence or that the US military even tried.

Gavin Wilde oversaw malign Russian influence and cybersecurity issues on the National Security Council for two years: 2018 and 2019.

Today, he is a senior scholar at the Carnegie Endowment for International Peace.

Regarding the Meta issue, Wilde said:

“I get the impulse, which is prevalent in military circles, that ‘the only way to lose is not to play’ in the information domain.”

“However, if their methodology gambles away the transparency and credibility the US wants to claim as benchmarks of an alternative to the Russian or Chinese model, is the payoff really worth it?”

Reference:

Fake Facebook and Instagram accounts promoting US interests had ties to US military, Meta says

Meta set for change with workforce layoff

Edward Anderson on November 14, 2022

Meta, Facebook’s parent company, plans to begin its first major layoffs to cut its workforce amid a struggling economy.

According to the Wall Street Journal, the company’s move comes as it grapples with declining business and growing fears of a recession.

The news

The significant layoff is expected to affect thousands of employees.

According to the Journal, the layoffs could begin this week, citing anonymous people familiar with the case.

A September SEC filing also shares that Meta has over 87,000 employees.

Earnings result

Last month, Meta held a conference call discussing the third quarter results.

CEO Mark Zuckerberg said he expects Meta to end 2023 with the same size or smaller organization than today.

Revenue

While it’s not certain yet, the potential cuts could be linked to tighter budgets for advertisers.

Additionally, Apple’s iOS privacy changes have affected the company’s core businesses.

Last month, Meta reported a sales decline in the second quarter and reported that profits had halved from 2021.

The drop in profits is caused by the billions the company spent to build the metaverse.

The metaverse is what many suggest is the future of the Internet; however, it is probably years away from operating.

The social media giant had a market cap of over $ 1 trillion in 2021, but it has declined.

Meta is currently worth over $250 billion.

When news of the company’s job cuts surfaced, the company’s shares opened more than 5% higher on Monday morning.

Other companies

Meta isn’t the only company in the tech industry rethinking its workforce.

Many companies in what was once considered an untouchable industry have recently announced staff freezes or job cuts.

The decision comes as a surprise as many grew rapidly during the pandemic.

Last week, Lyft announced that it would lay off 13% of its employees.

Payments processor Stripe also said it would cut 14% of its workforce.

Additionally, e-commerce giant Amazon has announced that it will pause corporate hiring.

Facebook’s rival Twitter made heavy cuts Friday after Elon Musk bought the social media company.

Twitter’s cuts have impacted its AI, marketing and communications, research and public policy team, just to name a few of the departments involved.

According to Bloomberg, Twitter asked dozens of laid-off employees to return.

Reference:

Wall Street Journal: Meta is planning significant layoffs

Report: Texas to sue Google for violating user privacy with technology

Nicholas Alexander on November 14, 2022

Texas General Ken Paxton sued Google, claiming the tech company violated the state’s biometric privacy law on Thursday.

According to Paxton’s lawsuit, Google collected users’ voiceprints and facial recognition data.

The actions were done with their knowledge or consent.

The lawsuit

Paxton filed a lawsuit in the Midland County District Court in Texas.

He says the company’s face and voice recognition in Google Photos and smart speakers violated state law on acquiring or using biometric identifiers.

Complaints

Using Google Photos, the tech giant scans uploaded images, identifying and classifying subjects, such as people.

However, people don’t know that their faces are scanned or saved.

The company also allegedly listened to Texans without considering the speaker’s consent to Google’s indiscriminate voice printing.

The complaint also claimed that Google’s Nest Hub Max, the smart home display with an integrated camera, was a “modern eye of Sauron.”

Nest Hub Max watches people, waiting for a face it recognizes.

“All across the state, everyday Texans have become unwitting cash cows being milked by Google for profits,” said the complaint.

Texas and biometric data

The Red State is one of the few states to have a law governing the use of biometrics.

Ken Paxton’s lawsuit is the second time Texas has invoked the 2009 law to prosecute a company.

In February, Texas claimed a now-defunct Facebook photo tagging tool violated Texas biometrics law.

The Facebook tool was also the subject of a $650 million biometric privacy agreement in Illinois last year.

The state has other lawsuits against Google.

Some of the lawsuits include two consumer protection lawsuits and an antitrust lawsuit against the company’s digital ads.

Reference:

Texas sues Google over alleged ‘indiscriminate’ biometric data collection

Meta to make changes after stocks fall 17%

Leah Cooper on October 31, 2022

Meta announced its second-quarter results on Wednesday, revealing that the company had declined since its IPO.

The social media giant warns of sweeping changes ahead of 2023, starting with cost cutting.

The decision was taken to deal with the economic crisis which hit Meta’s main online advertising business.

Revenue

Meta posted revenue of $27.7 billion for the three months ending September.

Revenues are down 4% year-over-year but still above Wall Street analysts’ expectations.

The company posted its first quarterly decline in the June quarter.

The company also reported a net income of nearly $4.4 billion, less than half the same period last year.

Meta revenues are below analyst forecasts.

Founder and CEO of Meta, Mark Zuckerberg, released a statement:

“We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.”

Meta stocks

Shares of the company fell nearly 17% in after-hours trading on Wednesday after the earnings announcement.

Demand for online advertising has recently declined because of the rising inflation and recession fears.

Google and Snap have also seen their ad revenue decline.

Meanwhile, Meta CFO David Wehner said the average price per ad across the company’s platforms fell 18% in the quarter.

App users

The growth of Meta users is slowing due to competitors like TikTok.

The company had 2.96 billion monthly active users on the Facebook app at the end of the quarter, up 2% year-over-year.

However, it declined from last year’s 6% growth in the same quarter.

Meta app’s daily active users grew 4% to 2.93 billion, compared to an 11% increase in 2021.

Zuckerberg noted that Instagram has more than 2 billion monthly active users, while WhatsApp has more than 2 billion.

The metaverse

The core challenges emerge when Meta invests billions of dollars in an ambitious effort to build the metaverse.

However, the metaverse is probably years away from perfection.

Wehner said the operational losses associated with the metaverse in 2023 would continue to increase year-after-year.

The Reality Labs unit lost nearly $3.7 billion in the September quarter.

So far this year, it has already cost Meta $9.4 billion.

Additionally, Reality Labs unit sales were down nearly 50% year-over-year in the September quarter.

Changes and reduction

Altimeter Capital last week wrote an open letter to make changes such as:

Reduce headcount expenses by at least 20%
Reduce annual expenditure by at least $5 billion
Limit investment in the metaverse to $5 billion per year

David Wehner said the company is making significant changes across the board for efficient operation.

Meanwhile, executives said Meta expects the headcount to be around 87,314 or less by the end of 2023, as reported in late September.

“We are holding some teams in terms of headcount, shrinking others, and investing headcount growth only in our highest priorities,” said Wehner.

Additionally, Wehner hinted that Meta might downsize its physical office footprint.

Key investments

On the analyst call, Zuckerberg focused on three key investment areas for the coming years:

Meta’s AI discovery engine, which powers Reels and other recommendations
Ads and business messaging
Meta’s future vision for the metaverse

Earlier this month, Meta introduced its new virtual reality headset, the Meta Quest Pro.

The social media giant made its potential known to professional customers.

Meta expects quarterly revenue of between $30 billion and $32.5 billion for the last three months of 2022.

The forecast expects a decrease of 3.5% compared to the previous year.

Reference:

Meta stock falls 17% as its quarterly profit is cut in half

The news

Meta Verified

Statements

A league of their own

Twitter Blue

Two-factor authentication

TikTok

The concern

Response

Social media regulation

Tech bills in 2022

Antitrust legislation

Kids Online Safety Act

Change

Finding their identity

Concerns

Psychological effects

Lawmaker reacts

Apple service

The cut

Apple’s reactions

Government intervention

Previous pullouts

The subscription

Early launch

Musk

The study

TikTok woes

Response

Safeguards

Algorithm

Policy violations

The bill

Response

Previous actions

The tech industry

The news

The accounts

Reception

The news

Earnings result

Revenue

Other companies

The lawsuit

Complaints

Texas and biometric data

Revenue

Meta stocks

App users

The metaverse

Changes and reduction

Key investments

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© 2023 The Chicago Journal.
All Rights Reserved