Connect with us

Published

on

Facebook Chairman and CEO Mark Zuckerberg.
Erin Scott | Reuters

U.S. lawmakers from opposite sides of the aisle agree on virtually nothing these days. The exception is when the topic is Facebook.

Republicans and Democrats grilled Antigone Davis, Facebook’s global head of safety, on Thursday, in a hearing before the Senate Commerce subcommittee on consumer protection. Antigone, who testified by video, was called to answer questions about Instagram’s impact on the mental health of teens and Facebook’s efforts to build more products targeting children.

The hearing, titled “Protecting Kids Online: Facebook, Instagram, and Mental Health Harms,” follows a series of Wall Street Journal reports earlier this month that were based on internal studies conducted by Facebook researchers. Those stories revealed that Facebook is aware of the harmful effects of Instagram on the mental health of young users. In particular, Facebook’s own studies showed that 13% of British users and 6% of American users traced their desire to commit suicide back to Instagram.

Davis answered questions for close to three hours, and listened as multiple senators compared Facebook to the tobacco industry, which for years knowingly hid what it knew about the dangers associated with the products it was selling.

“Facebook is just like Big Tobacco, pushing a product that they know is harmful to the health of young people, pushing it to them early, all so Facebook can make money,” said Sen. Ed Markey, D-Mass.

Here are the highlights from Thursday’s hearing:

Facebook Head of Global Safety Antigone Davis speaks during a roundtable discussion on cyber safety and technology at the White House March 20, 2018 in Washington, DC.
Chip Somodevilla | Getty Images

Facebook can’t hold itself accountable

Richard Blumenthal, D-Conn., chair of the subcommittee, kicked off the hearing by accusing Facebook of showing that it’s incapable of holding itself accountable. Blumenthal said the Journal stories and the Facebook whistleblower who provided the documents gave “deep insight into Facebook’s relentless campaign to recruit and exploit young users.”

“We now know that while Facebook publicly denies that Instagram is deeply harmful for teens, privately Facebook researchers and experts have been ringing the alarm for years,” Blumenthal said. “We now know that Facebook routinely puts profits ahead of kids’ online safety, we know it chooses the growth of its products over the wellbeing of our children, and we now know that it is indefensibly delinquent in acting to protect them.”

Blumenthal also noted that Facebook’s documents proved the company had been untruthful in prior correspondence with members of the Senate.

He said that in August, he and Sen. Marsha Blackburn, R-Tenn., ranking member of the subcommittee, wrote to CEO Mark Zuckerberg and asked, “Has Facebook research ever found that its platforms and products have a negative effect on children’s and teens’ mental health or well-being?”

The company said in response, “We are not aware of a consensus among studies or experts about how much screen time is too much.”

“That response was simply untrue,” Blumenthal said. “It knows the evidence of harm to teens is substantial and specific to Instagram.”

Senator Ed Markey speaks at the Back the Thrive Agenda press conference at the Longworth Office Building on September 10, 2020 in Washington, DC.
Jemal Countess | Getty Images

Facebook is non-committal on Instagram Kids

One of the central issues of concern to lawmakers on Thursday was Facebook’s Instagram Kids product.

The project, first reported by BuzzFeed in March and further exposed by the Journal, led Facebook to announce this week that it will pause development of an Instagram app for people under the age of 13.

Throughout the hearing, senators asked Davis if Facebook would commit to shelving Instagram Kids for good.

“Do you promise not to launch a site that includes features such as like buttons and follower counts that allow children to quantify popularity?” asked Markey.

Davis was non-committal and said the company will look further into what features make the most sense for children.

“Sen. Markey, those are the kinds of features that we will be talking about with our experts trying to understand in fact what is most age appropriate and what isn’t age appropriate, and we will discuss those features with them of course,” Davis said.

U.S. Senator Ted Cruz (R-TX) questions U.S. Secretary of State Antony Blinken during a Senate Foreign Relations Committee hearing to examine the United States withdrawal from Afghanistan, on Capitol Hill in Washington, September 14, 2021 .
Bill O’Leary | Pool | Reuters

Facebook cherry picks the research it shares

On Wednesday, Facebook released two slide decks with its research on Instagram’s impact on teen mental health. The company published those decks knowing the Journal was about to release all of the documents that contributed to its reporting.

The Journal ended up publishing six decks, with far more information than Facebook provided to the public. Facebook also included annotations that often discredited the work of its own researchers.

Davis told senators at the hearing that the research was not complete and or framed incorrectly. Sen. Ted Cruz, R-Texas, said her answers don’t add up and asked if the company planned to release all of its research to the public.

“You’re telling us, ‘If only you knew the full research,’ and then at the same time, you’re not releasing the research. So which is it?” Cruz asked.

Davis said the company was in the process of determining what additional research it could release.

“So you’ve cherry picked the ones you want us to see,” Cruz said.

Cruz then asked Davis about the research showing the percentage of teens in the U.S. and U.K. who trace their suicidal desires back to Instagram. Davis said those stats were a mischaracterization of the company’s research.

Sen. Richard Blumenthal, D-CT, asks questions during a hearing of the Senate Judiciary Subcommittee on Privacy, Technology, and the Law, at the U.S. Capitol in Washington DC, April 27, 2021.
Tasos Katopodis | Pool | Reuters

Big Tobacco playbook

In his opening remarks, Blumenthal highlighted findings from Facebook’s research, showing that many teens feel addicted to their use of Instagram.

“In truth, Facebook has taken Big Tobacco’s playbook,” he said. “It has hidden its own research on addiction and the toxic effects of its products, it has attempted to deceive the public and us in Congress about what it knows, and it has weaponized childhood vulnerabilities against children themselves.”

Sen. Markey echoed those remarks.

“Instagram is that first childhood cigarette meant to get teens hooked early, exploiting the peer pressure of popularity and ultimately endangering their health,” he said.

‘We don’t actually do finsta’

As in seemingly every hearing involving Washington, D.C., and Silicon Valley, there was a moment underscoring how little lawmakers often understand about the nuances of the internet.

Toward the end of the hearing, Blumenthal took the opportunity to ask Davis about “finsta,” a term that refers to Instagram accounts that aren’t associated with someone’s actual identity. Finsta accounts are often used to snoop on other users’ posts in an anonymous way.

“Will you commit to ending finsta?” Blumenthal asked.

Davis paused, before responding, “Senator, again let me explain. We don’t actually do finsta.”

Blumenthal followed by asking, “Finsta is one of your products or services. We’re not talking about Google or Apple. It’s Facebook correct?”

“Finsta is slang for a type of account,” Davis said.

The conversation was reminiscent of an exchange at a congressional hearing in 2018. Orrin Hatch, a Republic senator from Utah who has since retired, asked Zuckerberg, “How do you sustain a business model in which users don’t pay for your service?”

It’s commonly known that Facebook has become one of the world’s most valuable companies through its sophisticated advertising that’s used by most of the largest businesses to target potential customers.

“Senator, we run ads,” Zuckerberg said.

Continue Reading

Technology

Uber to acquire Foodpanda’s Taiwan business for $950 million, creating a potential monopoly

Published

on

By

Uber to acquire Foodpanda's Taiwan business for 0 million, creating a potential monopoly

TAIPEI, TAIWAN – 2021/07/19: A foodpanda delivery man wearing a face mask rides past a Taiwanese flag ahead of the COVID-19 alert Level 3 restriction lift in Taipei. (Photo by Walid Berrazeg/SOPA Images/LightRocket via Getty Images)

Sopa Images | Lightrocket | Getty Images

Uber Technologies will acquire the Taiwan business of Delivery Hero-owned Foodpanda for $950 million in cash, as Foodpanda focuses on other markets.

The deal, subject to regulatory approval, is expected to close in the first half of 2025, the firms said in a joint statement on Monday.

In a separate agreement, Delivery Hero will sell $300 million in newly issued ordinary shares to Uber.

“We need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders,” said Niklas Östberg, co-founder and CEO of Delivery Hero.

Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber, said the Taiwan market is “fiercely competitive” and the acquisition would help them grow in the market “where online food delivery platforms today still represent just a small part of the food delivery landscape.” 

Foodpanda is one of the largest online food and grocery delivery platforms in Asia with a presence in markets including Singapore, Malaysia, Thailand, The Philippines and Hong Kong. In 2016, Germany’s Delivery Hero acquired the company.

Taiwan’s food delivery market is dominated by Foodpanda and Uber Eats. Data from insights platform Measurable AI up till August revealed that Foodpanda had a 52% market share by order volume in Taiwan, while Uber Eats held the remaining 48% share.

The deal would be one of the largest international acquisitions in Taiwan, not including those in the semiconductor chip industry, according to the joint statement.

Delivery Hero said in February it had ended talks to sell its Foodpanda business in selected Southeast Asian markets. Östberg told CNBC the same month that the firm was “happy” to hold on to its Foodpanda business in Southeast Asia “forever.”

– CNBC’s Ryan Browne and Dylan Butts contributed to this report.

Continue Reading

Technology

Tencent posts fastest profit growth in 3 years as online ads, business services offset slower gaming

Published

on

By

Tencent posts fastest profit growth in 3 years as online ads, business services offset slower gaming

Tencent has faced a number of headwinds in 2022 including a Covid-induced slowdown in the Chinese economy and a tougher market for gaming.

Bobby Yip | Reuters

Tencent beat analyst estimates for revenue and profit in the first quarter, thanks to slightly better sales in the Chinese tech giants core gaming business and improved profitability at its advertising and business services division.

Here’s how Tencent did in the March quarter versus LSEG consensus estimates:

  • Revenue: 159.5 billion Chinese yuan ($22 billion) versus 158.4 billion yuan expected.
  • Profit attributable to equity holders of the company: 41.9 billion yuan versus 36.64 billion yuan anticipated.

Tencent’s adjusted net profit was up 62% year-on-year, marking the fastest growth since the March quarter of 2021, according to LSEG data. Revenue jumped 6% year-on-year.

This is a breaking news story. Please check back for more.

Continue Reading

Technology

Sony reports 7% drop in annual profit as PlayStation 5 sales miss trimmed target

Published

on

By

Sony reports 7% drop in annual profit as PlayStation 5 sales miss trimmed target

Sony said sales of its flagship PlayStation 5 console totalled 20.8 million in the fiscal year 2023 slightly lower than an already revised-down 21 million unit target.

Nikos Pekiaridis | Nurphoto | Getty Images

Sony on Tuesday reported a 7% drop in annual profits in the fiscal year 2023, dragged down by a decline in its financial services division.

The company also narrowly missed its forecast for unit sales of its flagship PlayStation 5 gaming console for the full year.

Here’s how Sony did in the March quarter versus LSEG consensus estimates:

  • Revenue: 3.5 trillion yen ($22.4 billion) versus 2.89 trillion yen expected. That represents a 14% increase year-over-year — but the first drop since Sony’s 2020 September quarter, according to LSEG data.
  • Operating profit: 229.4 billion yen versus 236.81 billion yen expected. That marks a 57% jump year-over-year.

The Japanese gaming giant reported 2023 revenue of 13 trillion, an increase of 19% year-over-year.

Sony’s operating profit for the full year, though, came in at 1.2 trillion yen, down 7% year-over-year.

Sony narrowly missed its revised down target for PlayStation 5 sales. The firm said that sales of its flagship console totalled 20.8 million in the fiscal year 2023.

That’s slightly lower than the revised 21 million unit target that Sony gave investors in February. Prior to that, the company had forecast that its PS5 console would sell 25 million units for the full year.

Sony expects even weaker sales of 18 million units of its PS5 in the year ending March 2025, a company executive said, according to Reuters.

It comes after Sony on Monday announced a management shakeup in its Sony Interactive Entertainment (SIE) gaming unit, with the division’s interim CEO Hiroki Totoki becoming chairman of the business.

Long-time Sony executives Hideaki Nishino and Hermen Hulst were appointed CEO of the Platform Business Group and Studio Business Group, respectively — two newly created divisions of SIE.

Financial unit weighs on profit

Sony said its financial services business was the primary segment driving down profit.

In 2023, operating income in the financial services unit came in at 173.6 billion yen, marking a 22.5% year-on-year drop after a firm increase in 2022.

The company also suffered from a decline in its imaging and sensing solutions (I&SS) business, which houses its imaging chips.

Sony’s I&SS business recorded operating income of 193.5 billion yen, down 9% from 2022.

Sony said it’s forecasting a drop in overall group revenue for the current fiscal year. The company expects sales will reach 12.3 trillion yen for the year ending March 2025, down 5%.

Fiscal year 2024 operating income is expected to total 1.28 trillion yen, up 5%, Sony said in its consolidated results.

Continue Reading

Trending