And the Senate Commerce "We're not toxic like Facebook" hearing is underway. I'll thread thoughts here but having now read written testimony, Snap uniquely stands out as an "antidote" to the problems being uncovered in Facebook. /1
super interesting data point in Snap's written I don't think I've seen previously...throttling acceleration of velocity+reach for influencers until a human reviews it. "human-reviewed and moderated before it can be viewed by more than 25 people."
Opposite of FB's whitelist. /2
And Sen Blumenthal pops bubble by saying "we're not Facebook" isn't a good bar because that bar is "in the gutter." I do think nuance is important here. Tech and social media aren't de facto bad. There are clear distinctions in Google and Facebook's biz model and market power. /3
To that point, Senator Blackburn focuses on data which is helpful. This is an area where Google and Facebook are unique in that they actually collect/mine most of their data as third parties (aka "surveillance"). TikTok data concerns are different due to Chinese-ownership. /4
Personal comment but Beckerman testifying for TikTok about trust just isn't a good look. He previously played wingman for Facebook's Joel Kaplan with lawmakers in 2018 as Facebook cover-ups unraveled. He also gave Ivanka Trump the Internet Freedom Award so there is that, too. /5
I had to hop on calls so catching up on hearing. Here is entertainment during intermission as I catch up: YouTube's witness today testified last year to Parliament who very much understands, skewered them on issues with its microtargeted amplification. /6
Oh, you want more? See, Parliament very much understood the issues with YouTube's recommendation engine. YouTube made changes shortly before the hearing to lean into "high-quality, authoritative" and "newsworthy" sources. /7
Senator Cruz just absolutely filleted Michael Beckerman and TikTok. There will be bipartisan agreement on this. This was the climax of 7 minutes of @SenTedCruz trying to get a simple answer to whether TikTok user data based on its privacy policy can go back to China affiliate. /8
Uh oh. There are about to be a whole lot of Winnie the Pooh clips on TikTok. /9
Pro tip, if you’re going to testify your company couldn’t find any evidence of a “blackout challenge” and suggest it may be due to inaccurate press reports, @SenBlumenthal has a reputation of late in his staff doing advanced homework. /10
Oomph. I guess lobbying for Google and Facebook was good training for the job at TikTok but wow the live rebuke from a parent is tough. /11
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ok, this is HUGE. Late Friday, Penske (PMC) filed a wicked-smart, landmark antitrust lawsuit against Google. I've now read it in full and I'm very impressed. Importantly, it's the first antitrust suit for Google tying its AI-driven products to its adjudicated search monopoly. /1
The core claim: Google is abusing its search monopoly to force pubs to hand over content - not just for traditional search indexing but to feed its AI. Google then repurposes it to substitute them with its own services breaking the fundamental bargain of the open web. /2
Penske says this is not a fair exchange. If it weren't for Google's adjudicated monopoly power (recall Judge Mehta said they get 19x as many queries as next biggest), Google would be paying pubs for these rights or if it didn't then they would opt-out of providing them. /3
OK all ye people depressed Judge Mehta didn't order Google broken into bits this week. I'm here to cheer you up. DOJ has its other remedies trial in 16 days and just posted its PFJ (Proposed Final Remedies) now 60+ pages of brilliant detail. Let me walk you through key terms. /1
This is the 2023 US v Google adtech win - the one DCN and its premium publishers have long been much more deep and focused on. Here’s what it means for publishers of all types - and why it will be a massive win for the open web if Judge Brinkema signs on (I believe she will). /2
First, clear structural remedies. Google must divest AdX, its ad exchange, w/in 2yrs and likely DFP, its publisher ad server. No more vertical ad stack monopoly with interest conflicts. This would finally decouple tools Google can use to rig auctions and suppress pub revenues. /3
All eyes at Google on streaming NFL game tonight but Google Inc and its many monopolies have had quite the week. I’ve been absorbing on this end, some quick Friday thoughts on things missed. Bad news certainly for the public, and also DCN members, in US v Google Search case. /1
Judge Mehta said "no thanks" to helping publishers - because he said no pubs testified. Maybe that’s what retaliation fear looks like??? He also noted the unlawful conduct was about distribution deals, not deals with publishers. More on that in a minute. /2
Despite Mehta finding Google illegally maintained its 95%+ search monopoly with browser deals, he also said it’s OK for Google to keep owning Chrome - the world’s biggest browser - so they can keep paying everyone else and free riding on their own browser. All bad here. /3
Woah. Facebook just settled immediately before board members Andreessen, Thiel, Zuckerberg, Desmond-Hellman, and Sheryl Sandberg were set to testify as to who knew what and when…depriving public of any accountability and facts in courtroom from board and officer comms. 1/3
Counter to Facebook lawyers framing yesterday, the DC AG suit isn’t dead (awaiting DC Circuit from 1/30 hearing), and NdCal shareholder suit also still alive. This is the closest to
Courtroom testimony after about $8B+ in settlements. 2/3
Credit to Reuters, Delaware Online who I saw actually showed up to cover. It’s likely why Facebook, Zuckerberg and its board, let this one get so close. But the grid. But today things were likely to get very very hot. 3/3
News cycles. News cycles. What I called the "mother of all lawsuits" for Facebook in 2021 goes to trial TOMORROW. Zuckerberg, Marc Andreessen, Sheryl Sandberg, Peter Thiel, other board members expected to testify live as to who knew what and when in its largest scandal ever. /1
Meanwhile, Zuckerberg and Facebook comms have successfully flooded the zone with AI-hype and exclusive CEO interviews mostly distracting the press away from a trial on how they leveraged, and allegedly abused, personal data to drive a decade of massive growth in mobile share. /2
The case involves allegations the board broke its loyalty to company (and Zuckerberg insider traded on stock) after Facebook had been long violating its FTC consent decree and other privacy laws - all covered up by nearly $8 billion in settlements ($5B alone with the FTC). /3
Woah. Exhibit list just posted for Facebook trial in DE starting in a few weeks. We finally have confirmation Sheryl Sandberg was deposed by the SEC - one week prior to Zuckerberg which also kept secret until a lawsuit unsealed it. Sandberg was also sanctioned in this case. /1
This matters as it gets at Who Knew What When at FB ahead of the world finding out its platform was leaking personal data for years. Zuckerberg was dodgy at best under oath to Congress, FB responses to Parliaments focused on 2018 news. But exhibits include Jan 2017 MZ emails. /2
The DE lawsuit claims Facebook's $5 billion record settlement was inflated in order to protect its CEO, Zuckerberg, and also includes (civil) insider trading claims. Zuckerberg was ordered to sit for multiple day depo this year, will have to testify live. /3