United States

NYC, Facing Housing Crisis, Targets Illegal Airbnb Owners (nytimes.com) 83

An anonymous reader quotes a report from The New York Times: Airbnb recently announced that it had its best quarter ever, reflecting a surging thirst for travel and tourism as the pandemic's grip loosens. But in New York City, the company is at the center of a different narrative: City leaders, after fighting for years to limit the proliferation of illegal short-term rentals, are poised to impose more stringent restrictions on the online platform. The City Council on Thursday is expected to approve a bill that would for the first time require hosts to register with the city before renting out their homes on a short-term basis or for less than 30 days. The measure mirrors regulations in other cities like Boston and Santa Monica, Calif.

In New York City, one of Airbnb's biggest domestic markets, city officials and housing advocates have long complained that landlords and tenants have exacerbated the housing crisis by circumventing laws and setting aside homes to rent out for a few days at a time to tourists or other visitors. Short-term rentals are often more lucrative than long-term leases. And the hotel industry, which has been decimated by the pandemic, has long complained about Airbnb and similar online rental companies, accusing them of siphoning away business. The new bill is designed to prevent rentals that violate those laws -- including a New York State law that largely bars apartment rentals for less than 30 days when the host is not present -- from even appearing online. Supporters said the new restrictions could lead to the gradual removal of thousands of listings for such illegal rentals from short-term rental websites.

The bill's supporters said New York's proposed law had been designed to ensure compliance because it requires online rental platforms like Airbnb to verify that a listing has been properly registered with the city before the platform can collect any fees. Fines for hosts who fail to abide by the rule could be up to $5,000, and platforms like Airbnb could be fined $1,500 for every illegal transaction. [...] It's not clear exactly how many of the listings in New York City are illegal, and the effectiveness of the new bill will depend in part on how well the city enforces the new law. In places like Santa Monica, Boston and San Francisco, data has shown a modest to significant decrease in the number of listings after a registration system went into place. Based on the number of listings advertising short-term rentals for entire homes or apartments in the city, suggesting a host may not be present, supporters of the bill estimate that up to roughly 19,000 Airbnb listings could be illegal and eventually delisted.
"According to data from Inside Airbnb, an independent data-tracking website, there were more than 37,700 Airbnb listings in New York City at the beginning of November 2021," the report notes. "That was significantly below the prepandemic level of more than 49,200 in November 2019."

Stephen Smith, a co-founder of real estate firm Quantierra, said the bill would not do enough to stem the city's housing crisis. "These politicians seem to think that this is going to do something for affordability, and in fact it's likely to do very little," he said. The combination of the bill along with another city initiative to curb new hotel development could greatly reduce the number of affordable places visitors to the city can stay, Mr. Smith said. "If you really make it difficult enough for people to come to New York, they're going to stop coming to New York," he said.
Chrome

EFF Warns Chrome Users: 'Manifest V3 Is Deceitful and Threatening' (eff.org) 46

In a recent blog post from the Electronic Frontier Foundation, the digital rights group warns that Google Chrome's latest specification for building Chrome extensions, known as Manifest V3, "is outright harmful to privacy efforts." EFF technologist Daly Barnett writes: Like FLoC and Privacy Sandbox before it, Manifest V3 is another example of the inherent conflict of interest that comes from Google controlling both the dominant web browser and one of the largest internet advertising networks. [...] It will restrict the capabilities of web extensions -- especially those that are designed to monitor, modify, and compute alongside the conversation your browser has with the websites you visit. Under the new specifications, extensions like these -- like some privacy-protective tracker blockers -- will have greatly reduced capabilities. Google's efforts to limit that access is concerning, especially considering that Google has trackers installed on 75% of the top one million websites.

It's also doubtful Mv3 will do much for security. Firefox maintains the largest extension market that's not based on Chrome, and the company has said it will adopt Mv3 in the interest of cross-browser compatibility. Yet, at the 2020 AdBlocker Dev Summit, Firefox's Add-On Operations Manager said about the extensions security review process: "For malicious add-ons, we feel that for Firefox it has been at a manageable level... since the add-ons are mostly interested in grabbing bad data, they can still do that with the current webRequest API that is not blocking." In plain English, this means that when a malicious extension sneaks through the security review process, it is usually interested in simply observing the conversation between your browser and whatever websites you visit. The malicious activity happens elsewhere, after the data has already been read. A more thorough review process could improve security, but Chrome hasn't said they'll do that. Instead, their solution is to restrict capabilities for all extensions.

As for Chrome's other justification for Mv3 -- performance -- a 2020 study (PDF) by researchers at Princeton and the University of Chicago revealed that privacy extensions, the very ones that will be hindered by Mv3, actually improve browser performance. The development specifications of web browser extensions may seem in the weeds, but the broader implications should matter to all internet citizens: it's another step towards Google defining how we get to live online. Considering that Google has been the world's largest advertising company for years now, these new limitations are paternalistic and downright creepy.

Privacy

Apple Reaches Quiet Truce Over iPhone Privacy Changes (ft.com) 43

Apple has allowed app developers to collect data from its 1 billion iPhone users for targeted advertising, in an unacknowledged shift that lets companies follow a much looser interpretation of its controversial privacy policy. Financial Times: In May Apple communicated its privacy changes to the wider public, launching an advert that featured a harassed man whose daily activities were closely monitored by an ever-growing group of strangers. When his iPhone prompted him to "Ask App Not to Track," he clicked it and they vanished. Apple's message to potential customers was clear -- if you choose an iPhone, you are choosing privacy.

But seven months later, companies including Snap and Facebook have been allowed to keep sharing user-level signals from iPhones, as long as that data is anonymised and aggregated rather than tied to specific user profiles. For instance Snap has told investors that it plans to share data from its 306m users -- including those who ask Snap "not to track" -- so advertisers can gain "a more complete, real-time view" on how ad campaigns are working. Any personally identifiable data will first be obfuscated and aggregated. Similarly, Facebook operations chief Sheryl Sandberg said the social media group was engaged in a "multiyear effort" to rebuild ad infrastructure "using more aggregate or anonymised data."

These companies point out that Apple has told developers they "may not derive data from a device for the purpose of uniquely identifying it." This means they can observe "signals" from an iPhone at a group level, enabling ads that can still be tailored to "cohorts" aligning with certain behaviour but not associated with unique IDs. This type of tracking is becoming the norm.

Businesses

Amazon Charges Sellers Fees That Are High Enough To Offset Losses from Prime, a New Report Says (theverge.com) 64

The massive reach of Amazon's e-commerce platform is appealing for any small business that wants to sell its products online. But a new report suggests that the cost of doing business can become a Faustian bargain for a third-party seller, as the fees that Amazon charges them can quickly eat into profits. From a report: Amazon Toll Road, a report from the nonprofit Institute for Local Self-Reliance (ILSR), found that Amazon charged third-party sellers a total of $121 billion in fees this year alone. According to the report, written by ILSR co-director Stacy Mitchell, those fees -- for things like advertising, referrals, and shipping -- usually mean that small businesses lose money to Amazon; Mitchell said that in 2014, sellers paid Amazon $19 of every $100 in sales, and today, it's more like $34 per $100 in sales.

And, Amazon obscures the profit it makes from these small businesses in its financial reports, lumping it in with other less lucrative divisions "because showing that they generate these profits from small businesses is not a good look," Mitchell said in an interview with The Verge. But its Amazon Prime subscription service -- believed to be a money loser for the e-commerce giant -- provides Amazon a loyal base of shoppers who want to get their money's worth of free shipping. The profits Amazon makes from seller fees subsidize the losses from its Prime division, according to the report.

Security

The Virtual Phone Farms Scammers Use To Set Up Fake Accounts (vice.com) 22

An anonymous reader quotes a report from Motherboard: When a scammer wants to set up an account on Amazon, Discord, or a spread of other online services, sometimes a thing that stands in their way is SMS verification. The site will require them to enter a phone number to receive a text message which they'll then need to input back into the site. Sites often do this to prevent people from making fraudulent accounts in bulk. But fraudsters can turn to large scale, automated services to lease them phone numbers for less than a cent. One of those is 5SIM, a website that members of the video game cheating community mention as a way to fulfill the request for SMS verification.

Various YouTube videos uploaded by the company explain how people can use its service explicitly for getting through the SMS verification stage of various sites. The videos include instructions specifically on PayPal, Instagram, Facebook, Telegram, and dating site Plenty of Fish. Instagram told Motherboard it is concerned by sites that suggest people can use services to bypass Instagram's measures to then abuse the platform. Instagram said it uses SMS verification to prevent the creation of fake accounts and to make account recovery possible. "We have many measures in place to protect against scripted account creation and block millions of fake accounts at registration every day," an Instagram spokesperson said.

Some online services don't allow users to perform SMS verification with VoIP numbers, presumably in an effort to mitigate against fraud. 5SIM's numbers, however, are just like ordinary phone numbers, the site claims. When people buy 5SIM's services, they must only use it for receiving texts related to an online account. "Different SMS will [be] rejected," the website adds. 5SIM also offers an API to automate parts of the service. 5SIM's rules say that customers are "Forbidden to use the service for any illegal purposes as well as not to take actions that harm the service and (or) third parties." The website also includes a denylist of words that its service may block.
In an email to Motherboard, 5SIM said: "5sim service is prohibited to use for illegal purposes. In cases, where fraudulent operations with registered accounts are detected, restrictions may be imposed on the 5sim account until the circumstances are clarified. 5sim is used by those who want to get a discount or bonus, webmasters, SMM specialists, owners of business for advertising and increasing business loyalty."
United States

Biden Administration Makes First Move on Data Privacy (axios.com) 45

The Biden administration is launching its first big effort on privacy policy by looking at how data privacy issues affect civil rights. From a report: The National Telecommunication and Information Administration (NTIA), the telecom unit of the Commerce Department, plans to hold "listening sessions" and seek comment on the intersection of privacy, equity and civil rights, according to an agency notice. NTIA intends to develop a report on the "ways in which commercial data flows of personal information can lead to disparate impact and outcomes for marginalized or disadvantaged communities." The agency noted that data collection can lead to harm through discriminatory targeted advertising or via software that uses race as a factor in predicting academic success, as detailed by a report in The Markup.
Facebook

UK Regulators Order Facebook-owner Meta To Sell Giphy (axios.com) 27

Regulators in the U.K. on Tuesday said they have directed Facebook parent company Meta to sell Giphy after finding "the takeover could reduce competition between social media platforms and increase Facebook's already significant market power." From a report: Facebook agreed to buy Giphy in May of last year for an estimated price of $400 million. The deal almost immediately invited antitrust scrutiny, given the increased attention to Facebook's growing market power.

In a statement, the U.K.'s competition and markets authority concluded that the deal would be anticompetitive because Facebook could theoretically increase market power by "denying or limiting other platforms' access to Giphy GIFs," or "changing the terms of access," to its GIFs for competitive sites. Regulators also determined that the deal was uncompetitive because it shut down Giphy's advertising business, therefore eliminating Giphy's competition to Facebook's ad business. As a result, regulators said Facebook "will also be required to reinstate the innovative advertising services that Giphy offered before the merger."

Facebook

UK Regulator Expected To Block Meta's Giphy Deal (ft.com) 14

The UK competition regulator is expected to block Meta's $315m acquisition of online gif platform Giphy in the coming days in an escalation of the watchdog's assault on Big Tech. Financial Times: The Competition and Markets Authority is set to reverse the deal according to individuals close to the matter, in what would be the first time the CMA has unwound a Big Tech deal. The watchdog began investigating Meta's acquisition of New-York based Giphy -- the biggest provider of animated images known as gifs to social networks -- in June last year. A decision to block the deal would set an eye-catching precedent from the UK regulator, which has never sought to reverse a completed tech deal. In August the CMA provisionally ruled Meta, formerly known as Facebook, should be forced to sell Giphy due to competition concerns. It has until December 1 to make a final call. At that time the CMA argued Meta could cut off its rivals' access to gifs, and demand platforms like TikTok or Snapchat hand over more of their data in order to access gifs, consolidating power in Meta's hands. The watchdog also said the deal could remove a competitor to Meta in the display advertising market in the UK, despite Giphy's lack of presence in that sector.
Google

Google Makes Pledges on Browser Cookies To Appease UK Regulator (reuters.com) 29

Google has pledged more restrictions on its use of data from its Chrome browser to address concerns raised by Britain's competition regulator about its plan to ban third-party cookies that advertisers use to track consumers. From a report: The Competition and Markets Authority (CMA) has been investigating Google's plan to cut support for some cookies in Chrome - an initiative called the "Privacy Sandbox" -- because it is worried it will impede competition in digital advertising. Alphabet's Google has said its users want more privacy when they are browsing the web, including not being tracked across sites.

Other players in the $250 billion global digital ad sector, however, have said the loss of cookies in the world's most popular browser will limit their ability to collect information for personalising ads and make them more reliant on Google's user databases. Google agreed earlier this year to not implement the plan without the CMA's sign-off, and said the changes agreed with the British regulator will apply globally.

United Kingdom

UK Privacy Watchdog Warns Adtech the End of Tracking is Nigh (techcrunch.com) 19

It's been well over two years since the UK's data protection watchdog warned the behavioural advertising industry it's wildly out of control. From a report: The ICO hasn't done anything to stop the systematic unlawfulness of the tracking and targeting industry abusing Internet users' personal data to try to manipulate their attention -- not in terms of actually enforcing the law against offenders and stopping what digital rights campaigners have described as the biggest data breach in history. Indeed, it's being sued over inaction against real-time-bidding's misuse of personal data by complainants who filed a petition on the issue all the way back in September 2018.

But today the UK's (outgoing) information commissioner, Elizabeth Denham, published an opinion -- in which she warns the industry that its old unlawful tricks simply won't do in the future. New methods of advertising must be compliant with a set of what she describes as "clear data protection standards" in order to safeguard people's privacy online, she writes.

United States

Moscow Tells 13 Mostly US Tech Firms They Must Set Up in Russia by 2022 (reuters.com) 147

Russia has demanded that 13 foreign and mostly U.S. technology companies be officially represented on Russian soil by the end of 2021 or face possible restrictions or outright bans. From a report: The demand, from state communications regulator Roskomnadzor late on Monday, gave few details of what exactly the companies were required to do and targeted some firms that already have Russian offices. Foreign social media giants with more than 500,000 daily usershave been obliged to open offices in Russia since a new law took effect on July 1. The list published on Monday names the companies for the first time.

It lists Alphabet's Google, Facebook, Twitter, TikTok and messaging app Telegram, all of which Russia has fined this year for failing to delete content it deems illegal. Apple, which Russia has targeted for alleged abuse of its dominant position in the mobile applications market, was also on the list. None of those companies responded to requests for comment. Roskomnadzor said firms that violate the legislation could face advertising, data collection and money transfer restrictions, or outright bans.

Facebook

How Facebook and Google Actually Fund the Creation of Misinformation (technologyreview.com) 196

MIT's Technology Review shares data from a Facebook-run tool called CrowdTangle. It shows that by 2018 in the nation of Myanmar (population: 53 million), " All the engagement had instead gone to fake news and clickbait websites.

"In a country where Facebook is synonymous with the internet, the low-grade content overwhelmed other information sources." [T]he sheer volume of fake news and clickbait acted like fuel on the flames of already dangerously high ethnic and religious tensions. It shifted public opinion and escalated the conflict, which ultimately led to the death of 10,000 Rohingya, by conservative estimates, and the displacement of 700,000 more. In 2018, a United Nations investigation determined that the violence against the Rohingya constituted a genocide and that Facebook had played a "determining role" in the atrocities. Months later, Facebook admitted it hadn't done enough "to help prevent our platform from being used to foment division and incite offline violence." Over the last few weeks, the revelations from the Facebook Papers, a collection of internal documents provided to Congress and a consortium of news organizations by whistleblower Frances Haugen, have reaffirmed what civil society groups have been saying for years: Facebook's algorithmic amplification of inflammatory content, combined with its failure to prioritize content moderation outside the US and Europe, has fueled the spread of hate speech and misinformation, dangerously destabilizing countries around the world.

But there's a crucial piece missing from the story. Facebook isn't just amplifying misinformation.

The company is also funding it.

An MIT Technology Review investigation, based on expert interviews, data analyses, and documents that were not included in the Facebook Papers, has found that Facebook and Google are paying millions of ad dollars to bankroll clickbait actors, fueling the deterioration of information ecosystems around the world.

Facebook pays them for permission to open their content within Facebook's app (where Facebook controls the advertising) rather than having users clickthrough to the publisher's own web site, reports Technology Review: Early on, Facebook performed little quality control on the types of publishers joining the program. The platform's design also didn't sufficiently penalize users for posting identical content across Facebook pages — in fact, it rewarded the behavior. Posting the same article on multiple pages could as much as double the number of users who clicked on it and generated ad revenue. Clickbait farms around the world seized on this flaw as a strategy — one they still use today... Clickbait actors cropped up in Myanmar overnight. With the right recipe for producing engaging and evocative content, they could generate thousands of U.S. dollars a month in ad revenue, or 10 times the average monthly salary — paid to them directly by Facebook. An internal company document, first reported by MIT Technology Review in October, shows that Facebook was aware of the problem as early as 2019... At one point, as many as 60% of the domains enrolled in Instant Articles were using the spammy writing tactics employed by clickbait farms, the report said...

75% of users who were exposed to clickbait content from farms run in Macedonia and Kosovo had never followed any of the pages. Facebook's content-recommendation system had instead pushed it into their news feeds.

Technology Review notes that Facebook now pays billions of dollars to the publishers in their program. It's a long and detailed article, which ultimately concludes that the problem "is now happening on a global scale." Thousands of clickbait operations have sprung up, primarily in countries where Facebook's payouts provide a larger and steadier source of income than other forms of available work. Some are teams of people while others are individuals, abetted by cheap automated tools that help them create and distribute articles at mass scale...

Google is also culpable. Its AdSense program fueled the Macedonia- and Kosovo-based farms that targeted American audiences in the lead-up to the 2016 presidential election. And it's AdSense that is incentivizing new clickbait actors on YouTube to post outrageous content and viral misinformation.

Reached for comment, a Facebook spokesperson told Technology Review that they'd misunderstood the issue. And the spokesperson also said "we've invested in building new expert-driven and scalable solutions to these complex issues for many years, and will continue doing so."

Google's spokesperson confirmed examples in the article violated their own policies and removed the content, adding "We work hard to protect viewers from clickbait or misleading content across our platforms and have invested heavily in systems that are designed to elevate authoritative information."
Encryption

Will Cryptocurrency Face a Quantum Computing Problem? (cnet.com) 68

"If current progress continues, quantum computers will be able to crack public key cryptography," writes CNET, "potentially creating a serious threat to the crypto world, where some currencies are valued at hundreds of billions of dollars." If encryption is broken, attackers can impersonate the legitimate owners of cryptocurrency, NFTs or other such digital assets. "Once quantum computing becomes powerful enough, then essentially all the security guarantees will go out of the window," Dawn Song, a computer security entrepreneur and professor at the University of California, Berkeley, told the Collective[i] Forecast forum in October. "When public key cryptography is broken, users could be losing their funds and the whole system will break...."

"We expect that within a few years, sufficiently powerful computers will be available" for cracking blockchains open, said Nir Minerbi, CEO of quantum software maker Classiq Technologies.

The good news for cryptocurrency fans is the quantum computing problem can be fixed by adopting the same post-quantum cryptography technology that the computing industry already has begun developing. The U.S. government's National Institute of Standards and Technology, trying to get ahead of the problem, is several years into a careful process to find quantum-proof cryptography algorithms with involvement from researchers around the globe. Indeed, several cryptocurrency and blockchain efforts are actively working on quantum resistant software...

A problem with the post-quantum cryptography algorithms under consideration so far, though, is that they generally need longer numeric encryption keys and longer processing times, says Peter Chapman, CEO of quantum computer maker IonQ. That could substantially increase the amount of computing horsepower needed to house blockchains...

The real quantum test for cryptocurrencies will be governance structures, not technologies, says Hunter Jensen, chief technology officer of Permission.io, a company using cryptocurrency for a targeted advertising system... "It will be the truly decentralized currencies which will get hit if their communities are too slow and disorganized to act," said Andersen Cheng, chief executive at Post Quantum, a London based company that sells post-quantum encryption technology.

Businesses

Vizio's Profit On Ads, Subscriptions, and Data Is Double The Money It Makes Selling TVs (theverge.com) 49

The TV maker released its latest earnings report on Tuesday and revealed that over the last three months, its Platform Plus segment that includes advertising and viewer data had a gross profit of $57.3 million. That's more than twice the amount of profit it made selling devices like TVs, which was $25.6 million, despite those device sales pulling in considerably more revenue. The Verge reports: When Vizio filed to go public, it described the difference between the two divisions. While Devices is easy to understand -- 4K TVs, soundbars, etc. -- Platform Plus is a little more complicated. It counts money made from selling ad placements on its TV homescreens, deals for the buttons on remotes, ads that run on streaming channels, its cut from subscriptions, and viewer data that it tracks and sells as part of the InScape program.

The company says shipments of its TVs fell to 1.4 million in 2021 compared to 2.1 million in 2020, a drop of 36 percent. CEO William Wang told investors on the call that he sees "pretty healthy inventory" going into the holiday season, so anyone planning to pick up a value-priced TV or soundbar should have some decent options available. That spike in Platform Plus revenue, which shot up 136 percent compared to last year, did a lot to help Vizio make up the difference as profits from TVs dipped compared to last year. Supply chain and logistics problems affecting many companies hit Vizio hard, too, but execs also said the company is working with its third-party partners to help find warehouse and trucking employees.

Where the numbers keep growing is in its number of active SmartCast accounts, which are now over 14 million, and how much money it makes from each user on average. That number has nearly doubled from last year, going from $10.44 to $19.89. On the call with investors and analysts, Vizio execs said 77 percent of that money comes directly from advertising, like the kind that runs on its WatchFree Plus package of streaming channels, a group that recently expanded with content targeting. The next biggest contributor is the money it makes selling Inscape data about what people are watching.

Google

Google Loses Challenge Against EU Antitrust Ruling, $2.8 Billion Fine (reuters.com) 15

Alphabet unit Google lost an appeal against a 2.42-billion-euro ($2.8-billion) antitrust decision on Wednesday, a major win for Europe's competition chief in the first of three court rulings central to the EU push to regulate big tech. From a report: Competition Commissioner Margrethe Vestager fined the world's most popular internet search engine in 2017 over the use of its own price comparison shopping service to gain an unfair advantage over smaller European rivals. The shopping case was the first of three decisions that saw Google rack up 8.25 billion euros in EU antitrust fines in the last decade. The company could face defeats in appeals against the other two rulings involving its Android mobile operating system and AdSense advertising service, where the EU has stronger arguments, antitrust specialists say. The court's support for the Commission in its latest ruling could also strengthen Vestager's hand in her investigations into Amazon, Apple and Facebook.
Businesses

Google Parent Alphabet Hits $2 Trillion Market Value After Rally This Year (bloomberg.com) 8

Google parent Alphabet rallied Monday to breach $2 trillion in market value for the first time, fueled by a rebound in spending on digital ads and growth in its cloud business. From a report: Its Class A shares gained as much as 1.2% to a record high, with the stock extending a recent rally to a fifth session. Alphabet is the top performer this year among the five biggest U.S. tech stocks by sales, with a 70% advance fueled largely by the growth in Google's advertising business. The share-price gain puts the company in an exclusive club alongside Apple and Microsoft, the latter of which also reached the $2 trillion milestone this year. The Google parent hit $1 trillion in value for the first time in January 2020.
Businesses

Peloton Joins Companies Blaming Lower Earnings on Apple's Tracking Restrictions (gizmodo.com) 74

Peloton, the makers of an internet-connected exercise bike, saw their stock price drop 35% overnight on Thursday, reports CNBC. "At least four Wall Street investment firms downgraded the stock following Peloton's dismal fiscal first-quarter financial report... Peloton's stock has fallen 63% year to date."

The company had cut its annual revenue forecast — by $1 billion — and lowered its projections for both profit margins and paying subscribers. Bloomberg reports: At best, Peloton currently expects to have 3.45 million connected fitness subscriptions by the end of the fiscal year. It had previously called for 3.63 million. And gross profit margin will be 32%, compared with an earlier forecast of 34%. All that will add up to a loss of as much as $475 million, excluding some items....

On a more upbeat note, the company hinted that it plans to launch new products in the coming weeks and months. Peloton has been working on a rowing machine and a heart-rate monitor that attaches to a wearer's arm, Bloomberg News has reported.

The article suggests Peloton's business was hurt by the end of lockdowns, supply-chain constraints, and the cost of freight. But they also point out another factor. "Like several other companies, Peloton also blamed Apple Inc.'s ad-related privacy changes, which have made it more difficult to target shoppers based on their interests." Apple's new Ad Tracking Transparency feature (or "ATT") now first asks users to deny or allow apps to track their activity for the targeted advertising which had apparently been boosting Peloton's business.

And tlhIngan (Slashdot reader #30,335) tipped us off to a larger trend, since Gizmodo reports that Peloton "isn't the only company that has pointed accusingly at Apple lately." When reporting its third quarter earnings at the end of October, Facebook (now called Meta) — which depends on targeted ads for almost 98% of its revenue — said that ATT had decreased the accuracy of its ad targeting. The feature also increased "the cost of driving outcomes" for advertisers, Facebook COO Sheryl Sandberg explained, and made it harder to measure those outcomes. "Overall, if it wasn't for Apple's iOS 14 changes, we would have seen positive quarter-over-quarter revenue growth," Sandberg said.

On Sunday, the Financial Times reported that ATT had cost Snap, Facebook, Twitter, and YouTube an estimated $9.85 billion in lost revenue in the second half of this year. That's an 87% increase year over year.

EU

IAB Europe Says It's Expecting To Be Found In Breach of GDPR (techcrunch.com) 29

A flagship framework used by Google and scores of other advertisers for gathering claimed consent from web users for creepy ad targeting looks set to be found in breach of Europe's General Data Protection Regulation (GDPR). TechCrunch reports: A year ago the IAB Europe's self-styled Transparency and Consent Framework (TCF) was found to fail to comply with GDPR principles of transparency, fairness and accountability, and the lawfulness of processing in a preliminary report by the investigatory division of the Belgian data protection authority. The complaint then moved to the litigation chamber of the DPA -- and a whole year passed without a decision being issued, in keeping with the glacial pace of privacy enforcement against adtech in the region.

But the authority is now in the process of finalizing a draft ruling, according to a press statement put out by the IAB Europe today. And the verdict it's expecting is that the TCF breaches the GDPR. It will also find that the IAB Europe is itself in breach. Oopsy. The online advertising industry body looks to be seeking to get ahead of a nuclear finding of non-compliance, writing that the DPA "will apparently identify infringements of the GDPR by IAB Europe," and trying to further spin the finding as "fixable" within six months (it doesn't say how, however) -- while simultaneously implying the breach finding may not itself be fixed because other EU DPAs still need to weigh in on the decision as part of the GDPR's standard cooperation procedure (which applies to cross-border complaints).

In terms of timing, a final verdict on the investigation is still likely months off -- and may not emerge 'til deep into 2022. Appeals are also almost inevitable. But the tracking industry's problems are starting to look, well, appropriately sticky. In the short term, the IAB says it expects a draft ruling to be shared by Belgium with other EU DPAs in the next two to three weeks -- at which point they get 30 days to review it and potentially file objections. If DPAs don't agree with the lead authority's finding and can't agree among themselves, the European Data Protection Board may need to step in and take a binding decision -- such as happened in another cross-border case against WhatsApp (which led to a $267 million fine, a larger penalty that the lead DPA in that case had originally proposed).

Facebook

Zuckerberg's Meta Endgame Is Monetizing All Human Behavior (vice.com) 88

An anonymous reader quotes a report from Motherboard, written by Janus Rose: During a tech demo in 2016, CEO Mark Zuckerberg described VR as "the next major computing platform" -- a space where all our social interactions will play out with new levels of physical presence thanks to headsets and motion-controllers. As I wrote at the time, this could only mean one thing: Zuckerberg wants to build virtual environments where all human behavior can be recorded, predicted, and monetized. At the time, the company told me it had "no current plans" to use physical motion data like head and eye movements as a means of predicting behavior and serving ads. Since then, it has made logging into Facebook a mandatory requirement for users of its Oculus headset -- a requirement it was recently pressured to remove. And earlier this year, the company announced its inevitable entry into VR-based advertising, inspiring enough backlash to cause one Oculus developer to abandon its plans for VR ads altogether.

While the bait-and-switch is a familiar and unsurprising move for The Company Formerly Known As Facebook, the announcement of Meta proves that there is no stopping Zuckerberg's plans to mine every human interaction in the world for data that can then be monetized. The brand shift notably comes at a time when the company is under intense scrutiny for its role in spreading disinformation and violence around the world, reinvigorated by revelations from whistleblower Frances Haugin. With Meta, it's safe to assume the predictive algorithms at work will be functionally the same as its predecessor. Data is collected about human behavior, which is then used to build profiles on users and automatically prioritize content they are more likely to interact with. Facebook itself proved the effectiveness of this manipulation with an "emotional contagion" experiment it secretly conducted on users in 2012, which showed that changing a user's feed to show positive or negative content altered the types of content they were likely to post.

This type of algorithmic manipulation forms the core business model of Facebook and countless other apps and social platforms. [...] Researchers have found that this algorithmic "nudging" is possible in embodied virtual spaces too, where the collection of intimate data about physical body movements provides new ways to influence human behavior on a large scale. Companies like RealEyes and Affectiva have marketed AI that they say can predict human emotions by analyzing body language and facial expressions -- a claim that is fiercely contested by AI experts but being widely deployed anyway. In one notable study, researchers determined that AI-controlled digital avatars can be used in virtual spaces to push people into accepting certain political views. In other words, Meta represents a massive investment into the very kind of algorithmic manipulation for which Facebook has been repeatedly maligned.

Android

Netflix Launches Into Video Games for Android (bloomberg.com) 20

Netflix, the video-streaming giant, began its expected foray into video games with the introduction of five mobile games to its users worldwide, playable initially on Android devices. From a report: The titles are included in a Netflix subscription, and there'll be no advertising or additional purchases required, Mike Verdu, Netflix's vice president of game development, said Tuesday. The streaming company has targeted video games as its next big thing -- it's an industry that's larger than the movie and TV businesses. Players logging in will see a dedicated games row and tab where they can choose which titles to play. Games for Apple's iPhone are also planned. The initial offering includes titles linked to Netflix shows, such as Stranger Things: 1984 and Stranger Things 3: The Game. Also included are Shooting Hoops, Card Blast and Teeter Up.

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