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Zuckerberg says breaking up Facebook “isn’t going to help”

Posted by on May 11, 2019 in Apps, Chris Hughes, Drama, Facebook, Government, Mark Zuckerberg, Nick Clegg, Policy, Privacy, Social, TC | 0 comments

With the look of someone betrayed, Facebook’s CEO has fired back at co-founder Chris Hughes and his brutal NYT op-ed calling for regulators to split up Facebook, Instagram, and WhatsApp. “When I read what he wrote, my main reaction was that what he’s proposing that we do isn’t going to do anything to help solve those issues. So I think that if what you care about is democracy and elections, then you want a company like us to be able to invest billions of dollars per year like we are in building up really advanced tools to fight election interference” Zuckerberg told France Info while in Paris to meet with French President Emmanuel Macron.

Zuckerberg’s argument boils down to the idea that Facebook’s specific problems with privacy, safety, misinformation, and speech won’t be directly addressed by breaking up the company, and that would instead actually hinder its efforts to safeguard its social networks. The Facebook family of apps would theoretically have fewer economies of scale when investing in safety technology like artificial intelligence to spot bots spreading voter suppression content.

Facebook’s co-founders (from left): Dustin Moskovitz, Chris Hughes, and Mark Zuckerberg

Hughes claims that “Mark’s power is unprecedented and un-American” and that Facebook’s rampant acquisitions and copying have made it so dominant that it deters competition. The call echoes other early execs like Facebook’s first president Sean Parker and growth chief Chamath Palihapitiya who’ve raised alarms about how the social network they built impacts society.

But Zuckerberg argues that Facebook’s size benefits the public. “Our budget for safety this year is bigger than the whole revenue of our company was when we went public earlier this decade. A lot of that is because we’ve been able to build a successful business that can now support that. You know, we invest more in safety than anyone in social media” Zuckerberg told journalist Laurent Delahousse.

The Facebook CEO’s comments were largely missed by the media, in part because the TV interview was heavily dubbed into French with no transcript. But written out here for the first time, his quotes offer a window into how deeply Zuckerberg dismisses Hughes’ claims. “Well [Hughes] was talking about a very specific idea of breaking up the company to solve some of the social issues that we face” Zuckerberg says before trying to decouple solutions from anti-trust regulation. “The way that I look at this is, there are real issues. There are real issues around harmful content and finding the right balance between expression and safety, for preventing election interference, on privacy.”

Claiming that a breakup “isn’t going to do anything to help” is a more unequivocal refutation of Hughes’ claim than that of Facebook VP of communications and former UK deputy Prime Minster Nick Clegg . He wrote in his own NYT op-ed today that “what matters is not size but rather the rights and interests of consumers, and our accountability to the governments and legislators who oversee commerce and communications . . . Big in itself isn’t bad. Success should not be penalized.”

Mark Zuckerberg and Chris Hughes

Something certainly must be done to protect consumers. Perhaps that’s a break up of Facebook. At the least, banning it from acquiring more social networks of sufficient scale so it couldn’t snatch another Instagram from its crib would be an expedient and attainable remedy.

But the sharpest point of Hughes’ op-ed was how he identified that users are trapped on Facebook. “Competition alone wouldn’t necessarily spur privacy protection — regulation is required to ensure accountability — but Facebook’s lock on the market guarantees that users can’t protest by moving to alternative platforms” he writes. After Cambridge Analytica “people did not leave the company’s platforms en masse. After all, where would they go?”

That’s why given critics’ call for competition and Zuckerberg’s own support for interoperability, a core tenet of regulation must be making it easier for users to switch from Facebook to another social network. As I’ll explore in an upcoming piece, until users can easily bring their friend connections or ‘social graph’ somewhere else, there’s little to compel Facebook to treat them better.


Source: The Tech Crunch

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Facebook sues analytics firm Rankwave over data misuse

Posted by on May 11, 2019 in Apps, Cambridge Analytica, Facebook, facebook platform, Facebook Policy, Lawsuit, Mobile, Policy, Social, TC | 0 comments

Facebook might have another Cambridge Analytica on its hands. In a late Friday news dump, Facebook revealed that today it filed a lawsuit alleging South Korean analytics firm Rankwave abused its developer platform’s data, and has refused to cooperate with a mandatory compliance audit and request to delete the data.

Facebook’s lawsuit centers around Rankwave offering to help businesses build a Facebook authorization step into their apps so they can pass all the user data to Rankwave, which then analyzes biographic and behavioral traits to supply user contact info and ad targeting assistance to the business. Rankwave also apparently misused data sucked in by its own consumer app for checking your social media “influencer score”. That app could pull data about your Facebook activity such as location checkins, determine that you’ve checked into a baseball stadium, and then Rankwave could help its clients target you with ads for baseball tickets.

The use of a seemingly fun app to slurp up user data and repurpose it for other business goals is strikingly similar to how Cambridge Analytica’s personality quiz app tempted millions of users to provide data about themselves and their friends.

Rankwave touts its Facebook data usage in this 2014 pitch deck

TechCrunch has attained a copy of the lawsuit that alleges that Rankwave misused Facebook data outside of the apps where it was collected, purposefully delayed responding to a cease-and-desist order, claimed it didn’t violate Facebook policy, lied about not using its apps since 2018 when they were accessed in April 2019, and then refused to comply with a mandatory audit of its data practices. Facebook Platform data is not supposed to be repurposed for other business goals, only for the developer to improve their app’s user experience.

“By filing the lawsuit, we are sending a message to developers that Facebook is serious about enforcing our policies, including requiring developers to cooperate with us during an investigation” Facebook’s director of platform enforcement and litigation Jessica Romero wrote. Facebook tells TechCrunch that “To date Rankwave has not participated in our investigation and we are trying to get more info from them to determine if there was any misuse of Pages data.” We’ve reached out to Rankwave for its response.

Cambridge Analytic-ish

Facebook’s lawsuit details that “Rankwave used the Facebook data associated with Rankwave’s apps to create and sell advertising and marketing analytics and models — which violated Facebook’s policies and terms” and that it “failed to comply with Facebook’s requests for proof of Rankwave’s compliance with Facebook policies, including an audit.” Rankwave apparently accessed data from over thirty apps, including those created by its clients.

Specifically, Facebook cites that its “Platform Policies largely restrict Developers from using Facebook data outside of the environment of the app, for any purpose other than enhancing the app users’ experience on the app.” But Rankwave allegedly used Facebook data outside those apps.

Rankwave describes how it extracts contact info and ad targeting data from Facebook data

Facebook’s suit claims that “Rankwave’s B2B apps were installed and used by businesses to track and analyze activity on their Facebook Pages . . . Rankwave operated a consumer app called the ‘Rankwave App.’ This consumer app was designed to measure the app user’s popularity on Facebook by analyzing the level of interaction that other users had with the app user’s Facebook posts. On its website, Rankwave claimed that this app calculated a user’s ‘Social influence score’ by ‘evaluating your social activities’ and receiving ‘responses from your friends.’”

TechCrunch has found that Rankwave still offers an Android app that asks for you to login with Facebook so it can assess the popularity of your posts and give you a “Social Influencer Score”. Until 2015 when Facebook tightened its policies, this kind of app could ingest not only a user’s own data but that about their Facebook friends. As with Cambridge Analytica, this likely massively compounded Rankwave’s total data access.

Rankwave’s Android app asks for users’ Facebook data in exchange for providing them a Social Influencer Score

Facebook Delays Coming After Rankwave

Founded in 2012 by Sungwha Shim, Rankwave came into Facebook’s crosshairs in June 2018 after it was sold to a Korean entertainment company in May 2017. Facebook assesses that the value of its data at the time of the buyout was $9.8 million.

Worryingly, Facebook didn’t reach out to Rankwave until January 2019 for information proving it complied with the social network’s policies. After receiving no response, Facebook issued a cease-and-desist order in February, which Rankwave replied to seeking more time because it’s CTO had resigned, which Facebook calls “false representations”. Later that month, Rankwave denied violating Facebook’s policies but refused to provide proof. Facebook gave it more time to provide proof, but Rankwave didn’t respond. Facebook has now shut down Rankwave’s apps.

Rankwave claims to be able to extract a wide array of ad targeting data from Facebook data

Now Facebook is seeking money to cover the $9.8 million value of the data, additional monetary damages and legal fees, plus injunctive relief restraining Rankwave from accessing the Facebook Platform, requiring it to comply with Facebook’s audit, requiring that it delete all Facebook data.

The fact that Rankwave was openly promoting these services that blatantly violate Facebook’s policies casts further doubt on how the social network was policing its platform. And the six month delay between Facebook identifying a potential issue with Rankwave and it even reaching out for information, plus another several months before it blocked Rankwave’s app shows a failure to move swiftly to enforce its policies. These blunders might explain why Facebook buried the news by announcing it on a Friday afternoon when many reporters and readers have already signed off for the weekend.

For now there’s no evidence of wholesale transfer of Rankwave’s data to other parties or its misuse for especially nefarious purposes like influencing an election as with Cambridge Analytica. The lawsuit merely alleges data was wrongly harnessed to make money, which may not spur the same level of backlash. But the case further proves that Facebook was too busy growing itself thanks to the platform to properly safeguard it against abuse.

You can learn more about Rankwave’s analytics practices from this 2014 presentation.


Source: The Tech Crunch

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You might hate it, but Facebook Stories now has 500M users

Posted by on Apr 24, 2019 in Advertising Tech, Apps, Facebook, Facebook ads, Facebook Earnings, Facebook Earnings Q1 2019, Facebook Stories, Facebook Stories Ads, instagram, Instagram Stories, Mobile, Social, TC, WhatsApp, WhatsApp Status | 0 comments

You might think it’s redundant with Instagram Stories, or just don’t want to see high school friends’ boring lives, but ephemeral Snapchat-style Stories now have 500 million daily users across Facebook and Messenger. WhatsApp’s Stories feature Status has 500 million dailies too, and Instagram hit that milestone three months ago. That’s impressive, because it means one-third of Facebook’s 1.56 billion daily users are posting or watching Stories each day, up from zero when Facebook launched the feature two years ago.

For reference, Stories inventor Snapchat has just 190 million total daily users.

Facebook Stories

CEO Mark Zuckerberg announced the new stats on today’s Facebook Q1 2019 earnings call, which showed it’s user growth rate had increased but it had to save $3 billion for a potential FTC fine over privacy practices.

Facebook isn’t just using Stories to keep people engaged, but to squeeze more cash out of them. Today COO Sheryl Sandberg announced that 3 million advertisers have now bought Stories ads across Facebook’s family of apps. I’d expect Facebook to launch a Stories Ad Network soon so other apps can show Facebook’s vertical video ads and get a cut of the revenue.

Facebook’s aggressive move to clone Snapchat Stories not just in Instagram but everywhere might have pissed users off at first, but many of them have come around. If you give people a place to put their face at the top of their friends’ phones, they’ll fill it. And if someone dangles a window into the lives of people you know and people you wish you did, you’ll open that window regularly.


Source: The Tech Crunch

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Instagram hides Like counts in leaked design prototype

Posted by on Apr 18, 2019 in Apps, instagram, Instagram feed, Instagram redesign, Jane Manchun Wong, likes, Mobile, Social | 0 comments

“We want your followers to focus on what you share, not how many likes your posts get. During this test, only the person who share a post will see the total number of likes it gets.” That’s how Instagram describes a seemingly small design change test with massive potential impact on users’ well-being.

Hiding Like counts could reduce herd mentality, where people just Like what’s already got tons of Likes. It could reduce the sense of competition on Instagram, since users won’t compare their own counts with those of more popular friends or superstar creators. And it could encourage creators to post what feels most authentic rather than trying to rack of Likes for everyone to see.

The design change test was spotted by Jane Manchun Wong, the prolific reverse engineering expert and frequent TechCrunch tipster whose spotted tons of Instagram features before they’re officially confirmed or launched. Wong discovered the design change test in Instagram’s Android code and was able to generate the screenshots above.

You can see on the left that the Instagram feed post lacks a Like count, but still shows a few faces and a name of other people who’ve Liked it. Users are alerted that only they’ll see their post’s Like counts, and anyone else won’t. Many users delete posts that don’t immediately get ‘enough’ Likes or post to their fake ‘Finstagram’ accounts if they don’t think they’ll be proud of the hearts they collect. Hiding Like counts might get users posting more since they’ll be less self-conscious.

An Instagram confirmed to TechCrunch that this design is an internal prototype that’s not visible to the public yet. A spokesperson told us: “We’re not testing this at the moment, but exploring ways to reduce pressure on Instagram is something we’re always thinking about.” Other features we’ve reported on in the same phase, such as video calling, soundtracks for Stories, and the app’s time well spent dashboard all went on to receive official launches.

Instagram’s prototypes (from left): feed post reactions, Stories lyrics, and Direct stickers

Meanwhile, Wong has also recently spotted several other Instagram prototypes lurking in its Android code. Those include chat thread stickers for Direct messages, augmented reality filters for Direct Video calls, simultaneous co-watching of recommended videos through Direct, karaoke-style lyrics that appear synced to soundtracks in Stories, emoji reactions to feed posts, and a shopping bag for commerce.

It appears that there’s no plan to hide follower counts on user profiles, which are the true measure of popularity but also serve a purpose of distinguishing great content creators and assessing their worth to marketers. Hiding Likes could just put more of a spotlight on follower and comment counts. And even if users don’t see Like counts, they still massively impact the feed’s ranking algorithm, so creators will still have to battle for them to be seen.

Close-up of Instagram’s design for feed posts without Like counters

The change matches a growing belief that Like counts can be counter-productive or even harmful to users’ psyches. Instagram co-founder Kevin Systrom told me back in 2016 that getting away from the pressure of Like counts was one impetus for Instagram launching Stories. Last month, Twitter began testing a design which hides retweet counts behind an extra tap to similarly discourage inauthentic competition and herd mentality. And Snapchat has never shown Like counts or even follower counts, which has made it feel less stressful but also less useful for influencers.

Narcissism, envy spiraling, and low self-image can all stem from staring at Like counts. They’re a constant reminder of the status hierarchies that have emerged from social networks. For many users, at some point it stopped being fun and started to feel more like working in the heart mines. If Instagram rolls the feature out, it could put the emphasis back on sharing art and self-expression, not trying to win some popularity contest.


Source: The Tech Crunch

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Twitter acqui-hires highlight-sharing app Highly

Posted by on Apr 17, 2019 in acquihire, Apps, Exit, Fundings & Exits, Mobile, Screenshots, Social, Startups, TC, Twitter | 0 comments

Quotes from articles are much more eye-catching than links on Twitter, so the social giant is scooping up the team behind highlight-sharing app Highly. This talent could help Twitter build its own version of Highly or develop other ways to excerpt the best content from websites and get it into the timeline.

Twitter confirmed to TechCrunch that the deal was an acqui-hire, and a spokesperson provided this statement: “We are excited to welcome the Highly team to Twitter. Their expertise will accelerate our product and design thinking around making Twitter more conversational.” We’ve asked about what data portability options Highly will offer.

Highly will shut down its iOS and Slack app on April 26th, though it promises that “No highlights will be harmed.” It’s also making its paid “Crowd Control” for private highlight sharing plus Highly For Teams free in the meantime.

“Social highlights can make sharing stories online feel personal, efficient and alive — like retelling a story to a friend, over coffee. They give people shared context and spark meaningful conversations,” the Highly team writes.

Quotes can make the difference between someone breezing past a link they don’t want to leave Twitter to explore, and getting a peek at what’s smart about an article so they know if it’s worth diving deeper. Many people use OneShot to generate Twitter-formatted screenshots of posts. But Highly lets you just rub your finger over text to turn it into an image with a link back to the article for easy tweeting. You could also search an archive of your past highlights, and follow curators who spot the best quotes. Its browser extensions and native app let you highlight from wherever you read.

“Sharing highlights, not headlines — sharing thinking instead of lazily linking — helps spark the kind of conversation that leaves participants and observers alike a bit better off than they started. We’d like to see more of this,” the Highly teams writes. That’s why it’s joining Twitter to work on improving conversation health. Founded in 2014, Highly had raised a seed round in 2017.

Twitter’s shift to algorithmic ranking of the timeline means every tweet has to compete to be seen. Blasting out links that are a chore to open and read can lead to low engagement, causing Twitter to show it to fewer people. Tools like Highly can give tweeters a leg up. And if Twitter can build these tools right into its service, it could allow more people to create appealing tweets so they actually feel heard.


Source: The Tech Crunch

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