The Chicago Journal

Social media faces more regulations in 2023

Edward Anderson Edward Anderson on March 20, 2023

Image source: Tech.co

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.”

Read also: Migrants delivered to Kamala Harris on Christmas

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.

Read also: Sherrod Brown looking to have cryptocurrency banned in the US

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

MacBook to perform better with two new M2 chips

Jason Robinson Jason Robinson on January 24, 2023

Image source: The New York Times

MacBook: It was big news when Apple revealed on Tuesday that customers could now select between the M2 Pro and M2 Max CPUs for the new Macs.

The two CPUs are Apple’s most powerful processors used in Macs and MacBooks.

The M2 chips

Apple’s newest systems on chips (SoCs), the M2 Pro and M2 Max boost performance.

The Pro enhances the M2 architecture with more than 32GB of fast, unified memory, a 12-core CPU, and a 19-core GPU.

While the Max improves those characteristics, the M2 Pro includes a 38-core GPU that boosts the unified memory bandwidth and 96GB of unified memory.

The CPUs feature improved proprietary technologies, including Apple’s powerful and renowned media engine and a faster 16-core Neural Engine.

The M2 Max significantly improves the performance and usefulness of the 14-inch and 16-inch MacBook Pros, while the M2 Pro premieres on the Mac mini.

“Only Apple is building SoCs like M2 Pro and M2 Max,” said Johny Srouji, the senior vice president of Apple’s Hardware Technologies.

“They deliver incredible pro performance along with industry-leading power efficiency.”

“With an even more powerful CPU and GPU, support for a larger unified memory system, and an advanced media engine, M2 Pro and M2 Max represent astonishing advancements in Apple silicon.”

The Mac mini

The new Mac mini is more capable and influential at a reasonable rate, and it delivers features including faster speed, more unified memory, and cutting-edge networking.

While the M2 Pro version can accommodate up to three displays, the M2 model only supports two.

The Mac mini comes with the innovative and user-friendly Mac OS Ventura, the Studio Display, and Magic Access.

Greg Joswiak, the Senior Vice President of Global Marketing at Apple, said:

“With incredible capabilities and a wide array of connectivity in its compact design, Mac mini is used in so many places, in so many different ways.”

“Bringing even more performance and a lower starting price, Mac mini with M2 is a tremendous value.”

“And for users who need powerful pro performance, Mac mini with M2 Pro is unlike any other desktop in its class.”

Furthermore, Apple no longer produces or sells Mac minis equipped with Intel Processors.

The last gadget with an Intel Processor installed is the Mac Pro.

Read also: NetChoice claims California law violates First Amendment, sues state

Launch

The M2 Pro and M2 Max processors and the Mac mini were introduced following Luca Maestri’s word of caution in October.

The revenue for the December quarter was expected to decrease annually, according to Apple’s chief financial officer.

While this is happening, it’s possible that Apple’s failure to deliver the MacBooks in time for the holiday shopping season is causing the decline.

In October, Apple announced the results of its fiscal fourth quarter, and its earnings and sales per share outperformed expectations on Wall Street.

The tech behemoth missed its sales targets for many product categories, including the iPhone business and services.

In a precarious economic climate, the new Macs will be released when many consumers are still dealing with inflation.

In light of the ongoing recessionary worries, most consumers have likewise learned to be more modest with their spending.

Earnings report

Apple’s earnings report will be made public at the end of this month.

Sales for the tech company’s December quarter were $10.85 billion, up 25% from the same time in 2022

Despite the effects of the epidemic and problems with the supply chain, the company at the time had its biggest quarterly revenues ever.

Pricing

Pre-orders for Apple’s innovative products, which will go on sale on January 24, will be processed starting on Tuesday.

The price of the Mac mini with an M2 processor is $599, which is $100 less than the previous models.

However, the M2 Pro model would cost you roughly $1,299.

The cost of the new 14-inch MacBook Pro is $1,999 as well.

Last but not least, the 16-inch MacBook Pro model costs about $2,499.

References:

Apple announces new Mac mini, MacBook Pro with M2 Pro and M2 Max chips

Apple introduces new Mac mini with M2 and M2 Pro – more powerful, capable, and versatile than ever

Apple unveils M2 Pro and M2 Max: new-generation chips for next-level workflows

Apple reportedly plans to bring changes to Siri

Edward Anderson Edward Anderson on November 28, 2022

Image source: Shutterstock

Apple has made a lot of innovations in 2022 so far, and they’re about to make another change with the Siri feature.

The tech giant is reportedly planning to ditch “Hey.”

The report

Apple is allegedly training Siri, its voice assistant, to take commands without saying the first half of the phrase “Hey Siri.”

The activation phase launches Siri on Apple products like the iPhone, iPad, HomePod, and Apple Watch.

According to Bloomberg, the move could take place in 2023 or 2024.

Read also: Apple to see iPhone 14 models shipment setback

Changes

While the update is minor, experts believe it is a sign that more changes are underway and that in-depth training in artificial intelligence will be required.

Lian Jye Su, research director at ABI Research, said the system recognizes requests more accurately from two keywords.

The transition to using a word would rely on a more advanced artificial intelligence system.

“During the recognition phase, the system compares the voice command to the user-trained model,” explained Su.

“‘Siri’ is much shorter than ‘Hey Siri,’ giving the system potentially less comparison points and higher error rate in an echo-y, large room and noisy environments.”

The move

Apple’s change would allow them to catch up with Amazon’s “Alexa” prompt, which doesn’t require an initial voice assistant activation word.

In 2018, Microsoft moved away from “Hey Cortana” so that users need only say “Cortana” on smart speakers.

However, for product inquiries from Google, users must still use the phrase “OK Google.”

The “Hey Siri” change comes at a time when Apple, Amazon and Google are working together on the Matter automation standard.

The Matter automation standard allows automation and Internet of Things devices from different vendors to collaborate.

James Sanders, the chief analyst at market research firm CCS Insight, says Apple’s priority is likely to redouble efforts to improve Siri functionality.

Read also: Apple continues positive streak amid inflation

Siri

Apple’s voice assistant has been active since February 2010, over twelve years ago.

It started as a standalone app on Apple’s App Store before the tech giant bought it two months later.

Apple then integrated Siri into the iPhone 4S.

It introduced the ability to say “Hey Siri” without using the home button in 2014.

Over the years, Siri has gotten smarter by integrating third-party developers like carpooling and payment apps.

It also supports follow-up questions, multiple languages, and other access.

Despite the improvements, Siri still has problems, including user misunderstandings and wrong answers.

“While the ‘Hey Siri’ change requires a considerable amount of work, it would be surprising if Apple announced only this change to Siri,” said Sanders.

“Considering the rumored timing, I would anticipate this change to be bundled with other new or improved functionality for Siri, perhaps alongside a new model of HomePod and integrations with other smart home products via Matter, as a reintroduction to Apple’s voice assistant.”

Reference:

Why Apple may be working on a ‘hey Siri’ change

Meta set for change with workforce layoff

Edward Anderson Edward Anderson on November 14, 2022

Image source: WWD

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.

Read also: Meta to make changes after stocks fall 17%

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.

Read also: UK gives breakup order, Meta to comply and sell Giphy

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 Nicholas Alexander on November 14, 2022

Image source: The Texan

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

Stock market movement largely positive in October this year

Edward Anderson Edward Anderson on October 31, 2022

The October stock market is known for its significant declines over the years, most notably in 1929, 1987 and 2008.

However, the stock market successfully managed to avoid similar crashes in 2022.

Wall Street investors have nothing to fear as the month closes.

The market continued its streak from October on Monday and recorded another strong rally.

Stocks

The Dow Jones closed up more than 420 points (1.3%) on Monday.

Additionally, the Dow Jones rose almost 10% in October, recovering from the sharp falls in August and September.

However, blue-chip industrials and other giants of the US economy remain 13% down this year, including:

  • Apple (AAPL)
  • Microsoft (MSFT)
  • Coca-Cola (KO)
  • McDonald’s (MCD)
  • Disney (DIS)

Read also: Huge rally in the stock market a good sign in October

Federal Reserve

The market rebounded this month, hoping the Federal Reserve would reverse its aggressive rate hikes to fight inflation.

Strong interest rate hikes are expected during Fed meetings on November 2 and later in December.

However, some people hope the Fed can suspend rate hikes next year.

The solid third-quarter results also help strengthen stocks.

The bear market

The S&P 500 rose 1.2%, while the Nasdaq gained 0.9% on Monday.

Both indexes also posted decent gains for October.

The Nasdaq is up more than 3.5%, while the S&P 500 is up almost 6%.

Unfortunately, the S&P 500 and Nasdaq are still down more than 20% each this year, putting them in a bear market.

The Nasdaq was in the green zone on Monday, which is better positioned than others.

Read also: US stock market goes steady after worst day since 2020

The Chinese market and other stocks

Several leading Chinese tech stocks trading in the US fell on fears of a crackdown in China.

The crackdown stemmed from news that Xi Jinping will serve for a third term as China’s leader.

Meanwhile, the e-commerce company Pinduoduo (PDD) lost more than 25%.

Electric vehicle manufacturers and significant Chinese tech stocks reported double-digit loss rates, including:

  • Nio (NIO)
  • Xpev
  • Li Auto
  • Alibaba (BABA)
  • Baidu (BIDU)
  • Tencent (TCEHY)

Tesla shares fell 1.5%, while Starbucks fell 5.5%.

The fast food giant Yum! Brands (YUM) fell 2%, while Yum China (YUMC) fell 14%.

Yum China distributes several popular food chains in China, such as:

  • KFC
  • Pizza Hut
  • Taco Bell

Wynn Resorts and (WYNN) and Las Vegas Sands (LVS), casino owners that have properties in Macau, also fell.

Reference:

October surprise? Stocks continue to sizzle this month

Image source: Market Watch

Snap’s struggle continue as shares take a 25% dip

Nicholas Alexander Nicholas Alexander on October 27, 2022

Image source: BBC

Amid a growing number of companies struggling, Snapchat’s parent company Snap continues to endure a challenging year of slow revenue growth.

Revenue growth

Snap reported a revenue of $1.13 billion on Thursday for the three months ending September.

The report shows a modest 6% year-over-year increase, less than what Wall Street was expecting.

The company is currently facing shrinking advertising budgets in an uncertain economic environment.

The company released a letter saying several factors had slowed sales growth.

They listed factors that include growing competition and fear of advertisers, which is Snap’s core business.

“We are finding that our advertising partners across many industries are decreasing their marketing budgets,” the company said in its letter.

“Especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs.”

Snap shares and report

Snap shares fell nearly 25% in after-hours trading after the earnings report, 

The company’s report reads what should be a period of sobering technology gains.

Announcements of layoffs, staff freezes and cost-cutting measures have become increasingly common in the industry amid persistent fears of a recession.

The company sparked a wave of concern in May when it warned tech investors that the economy was deteriorating faster than expected.

The deterioration in economic conditions affected sales and earnings expectations for the quarter.

In late August, Snap announced plans to lay off 20% of its more than 6,400 employees worldwide.

Economic headwinds and competition

The company faced headwinds from rising inflation, a stronger dollar, and broader economic concerns.

The economic climate caused advertisers and consumers to rethink their spending in the United States and abroad.

Snap also faces growing competition from TikTok, one of its fastest-growing rivals.

The company continues to navigate its digital advertising business after Apple’s privacy changes made it harder for marketers to target users with ads.

Positive notes

Despite the report, Snap had a glimmer of hope as the number of daily active users increased by 19% year-over-year to 363 million in the third quarter.

The company’s net loss was also lower than Wall Street was anticipating.

However, Snap still lost $360 million in the quarter, compared to a loss of $72 million a year earlier.

Most of the $155 million loss comes from restructuring costs related to layoffs.

The company refused to share its financial outlook for the last three months of 2022.

In the letter, the company wrote:

“We expect that the operating environment will continue to be challenging in the months ahead and believe the actions we are taking provide a clear path forward for Snap.”

Reference:

Snap stock falls nearly 25% after revenue hit by shrinking advertiser budgets

UK gives breakup order, Meta to comply and sell Giphy

Nicholas Alexander Nicholas Alexander on October 24, 2022

Image source: TIME

Facebook’s parent company Meta is expected to sell Giphy as the UK plans to force the tech giant to complete the service acquisition.

Giphy is an American online database that users use to find GIFs for comments, messages, chats, and text messages on social media.

The news

The announcement marks the first time regulators have stripped part of the tech giant since a global antitrust review probed the company’s dominance.

The decision was made on Tuesday.

The UK’s Competition and Markets Authority (CMA) decision sparked a long battle with Meta over the deal’s impact on competitors’ access to GIFs and the digital advertising market.

Meta went to court to defend the deal, but British officials prevailed over the summer.

The court upheld the CMA’s finding that the acquisition of Giphy could reduce competition by eliminating a competitor in online advertising.

The acquisition also limits third-party access to Giphy’s GIF library.

Meta response

Facebook’s parent company issued a statement on Tuesday confirming that it would accept the UK’s decision as “the final word on the matter.”

A meta spokesperson clarified the statement:

“We will work closely with the CMA on divesting GIPHY.”

“We are grateful to the GIPHY team during this uncertain time for their business, and wish them every success.”

While this resulted in a loss, Meta said it would continue to explore acquisitions.

Acquisitions

Over the years, critics have accused larger tech companies of seeking “killer acquisitions” from smaller companies.

Critics say the acquisitions could undermine the dominance of the biggest names, reducing potential competition in the industry.

In the United States, the “buy-or-bury” strategy is at the center of a federal lawsuit that forces Meta to split WhatsApp and Instagram.

The attempted Federal Trade Commission violation could lead to a trial in 2024.

Additionally, the FTC filed a lawsuit to block the social media giant’s acquisition of Within Unlimited, a virtual reality technology company.

They argued that the deal could give Meta more power to build a “virtual reality empire.”

Meta now faces both lawsuits.

References:

Meta says it will sell Giphy to comply with UK breakup order