Meta sues Voyager Labs, saying it created fake accounts to scrape user data

Published

2 years ago

January 12, 2023

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Mark Zuckerberg, chief executive officer of Meta Platforms Inc., left, arrives at federal court in San Jose, California, US, on Tuesday, Dec. 20, 2022.

David Paul Morris | Bloomberg | Getty Images

Meta filed a complaint against Voyager Labs on Thursday, alleging that the startup created fake Facebook accounts as part of a scheme to collect information from real Facebook users, which it then used for its own business purposes.

Voyager Labs specializes in investigative software and services intended to help law enforcement and companies obtain information about suspects, among other uses. Meta alleged that Voyager Labs’ software was powered by data that it improperly gathered from Facebook and Instagram in addition to other sites like Twitter, YouTube, Twitter, and Telegram.

According to the filing in the District Court for the Northern District of California, Meta alleged that Voyager Labs created over 38,000 fake Facebook user accounts. These helped the startup scrape publicly posted information from more than 600,000 other Facebook users, including things like posts, likes, photos, and lists of friends. “Scraping” generally refers to the automated process of using software to scan a web page and compile information on it.

Meta attorneys wrote in the legal filing that the company sent a letter to Voyager Labs on November 11 demanding that the startup stop violating the company’s terms of service. Meta eventually disabled over 60,000 Voyager Labs-related Facebook and Instagram accounts and pages, which also included at least 38,000 fake accounts, the attorneys said.

“Defendant’s conduct was not authorized by Meta and violates Facebook’s and Instagram’s terms, as well as California law,” the complaint said. “Accordingly, Meta seeks damages and injunctive relief to stop Defendant’s use of its platforms and services.”

The company also asking the court to force Voyager Labs to give up its “ill-gotten profits in an amount to be proven at trial.”

CNBC reached out to Voyager Labs for comment.

Meta’s complaint follows a similar a data-scraping court case involving LinkedIn and the enterprise startup hiQ, which the Microsoft-owned social network alleged was scraping user data to fuel its human resources software.

After a years-long legal battle, LinkedIn and hiQ eventually settled in December, 2022 with a $500,000 judgment entered against hiQ, following a mixed ruling in a California district court in November. Similar to Meta, LinkedIn alleged that hiQ was violating the company’s terms of service over data scraping.

That case caught the attention of privacy advocates and researchers who were concerned that the outcome could potentially harm the work of journalists and watchdog groups who use automation software to monitor public websites and hold companies accountable.

Meta’s claims against Voyager Labs follows similar actions the social networking giant has taken against other companies it alleged to be scraping user data.

For instance, in Sep, 2022, Meta settled with the companies BrandTotal and Unimania, which agreed to be stop “using and scraping Facebook and Instagram,” Meta said in another blog post.

Meta’s various legal actions to improve data privacy come after the company’s infamous Cambridge Analytica scandal of 2018, in which a political consulting firm improperly obtained user profile data through various methods (not scraping).

Technology

Tesla launches refreshed Model Y in China to fend off domestic rivals

Published

4 hours ago

January 10, 2025

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Tesla launched a revamped version of its Model Y in China.

Tesla

Tesla on Friday announced a revamped version of its popular Model Y in China, as the U.S. electric car giant looks to fend off challenges from domestic rivals.

The Model Y will start at 263,500 Chinese yuan ($35,935), with deliveries set to begin in March. That is 5.4% more expensive than the starting price of the previous Model Y.

A spokesperson for Tesla China said that the new Model Y is only open for pre-sale in the Chinese market, rather than being launched globally.

Tesla’s Model Y refresh comes after the auto giant this month reported its first ever annual decline in overall deliveries for 2024.

Elon Musk’s electric vehicle firm is facing heightened competition around the world, from startups and traditional carmakers in Europe. In China, the company continues to face an onslaught of rivals from BYD to newer players like Xpeng and Nio.

Jason Low, principal analyst at Canalys, notes that the Tesla Model Y was the best-selling EV in China in 2024 and that the popularity of the car “remains high.” However, he noted that the competition in the sports utility vehicle (SUV) segment with vehicles priced between 250,000 yuan and 350,000 yuan “has been fierce.”

“Tesla must showcase compelling smart features, particularly a unique but well localized cockpit and services ecosystem,” as well as “effective” semi-autonomous driver assistance features “to ensure its competitiveness in the market,” Low added.

Tesla is offering a number of incentives for customers to buy the Model Y including a five-year 0% interest financing plan.

The new Model Y can accelerate from 0 kilometers per hour to 100 kilometers per hour in 4.3 seconds, Tesla said, exceeding the speed capabilities of the previous vehicle. The Model Y Long Range has a further driving range on a single charge versus its predecessor.

Tesla has not introduced a new model since it began delivering the Cybertruck in late 2023, which starts at nearly $80,000.

Investors have been yearning for a new mass-market model to reinvigorate sales. Tesla has previously hinted that that a new affordable model could be launched in the first half of 2025.

Despite Tesla’s headwinds, the company’s stock is up nearly 70% over the last 12 months, partly due to CEO Musk’s close relationship with U.S. President-elect Donald Trump.

Technology

World’s biggest chipmaker TSMC posts record 2024 revenue as AI boost continues

Published

7 hours ago

January 10, 2025

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World's biggest chipmaker TSMC posts record 2024 revenue as AI boost continues

The logo for Taiwan Semiconductor Manufacturing Company is displayed on a screen on the floor of the New York Stock Exchange on Sept. 26, 2023.

Brendan Mcdermid | Reuters

Taiwan Semiconductor Manufacturing Co. posted December quarter revenue that topped analyst estimates, as the company continues to get a boost from the AI boom.

The world’s largest chip manufacturer reported fourth-quarter revenue of 868.5 billion New Taiwan dollars ($26.3 billion), according to CNBC calculations, up 38.8% year-on-year.

That beat Refinitiv consensus estimates of 850.1 billion New Taiwan dollars.

For 2024, TSMC’s revenue totaled 2.9 trillion New Taiwan Dollars, its highest annual sales since going public in 1994.

TSMC manufacturers semiconductors for some of the world’s biggest companies, including Apple and Nvidia.

TSMC is seen as the most advanced chipmaker in the world, given its ability to manufacture leading-edge semiconductors. The company has been helped along by the strong demand for AI chips, particularly from Nvidia, as well as ever-improving smartphone semiconductors.

“TSMC has benefited significantly from the strong demand for AI,” Brady Wang, associate director at Counterpoint Research told CNBC.

Wang said “capacity utilization” for TSMC’s 3 nanometer and 5 nanometer processes — the most advanced chips — “has consistently exceeded 100%.”

AI graphics processing units (GPUs), such as those designed by Nvidia, and other artificial intelligence chips are driving this demand, Wang said.

Taiwan-listed shares of TSMC have risen 88% over the last 12 months.

TSMC’s latest sales figures may also give hope to investors that the the demand for artificial intelligence chips and services may continue into 2025.

Foxconn, which assembles Apple’s iPhones, reported its highest-ever fourth quarter revenue this week, as it notched strong demand for AI servers.

Meanwhile, Microsoft this month said that it plans to spend $80 billion in its fiscal year to June on the construction of data centers that can handle artificial intelligence workloads.

CNBC’s Jordan Novet contributed to this report.

Technology

Supreme Court set to hear oral arguments on challenge to TikTok ban

Published

14 hours ago

January 10, 2025

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Supreme Court set to hear oral arguments on challenge to TikTok ban

Tik Tok creators gather before a press conference to voice their opposition to the “Protecting Americans from Foreign Adversary Controlled Applications Act,” pending crackdown legislation on TikTok in the House of Representatives, on Capitol Hill in Washington, U.S., March 12, 2024.

Craig Hudson | Reuters

The Supreme Court on Friday will hear oral arguments in the case involving the future of TikTok in the U.S., which could ban the popular app as soon as next week.

The justices will consider whether the Protecting Americans from Foreign Adversary Controlled Applications Act, the law that targets TikTok’s ban and imposes harsh civil penalties for app “entities” that continue to carry the service after Jan.19, violates the U.S. Constitution’s free speech protections.

It’s unclear when the court will hand down a decision, and if China’s ByteDance continues to refuse to divest TikTok to an American company, it faces a complete ban nationwide.

What will change about the user experience?

The roughly 115 million U.S. TikTok monthly active users could face a range of scenarios depending on when the Supreme Court hands down a decision.

If no word comes before the law takes effect on Jan. 19 and the ban goes through, it’s possible that users would still be able to post or engage with the app if they already have it downloaded. However, those users would likely be unable to update or redownload the app after that date, multiple legal experts said.

Thousands of short-form video creators who generate income from TikTok through ad revenue, paid partnerships, merchandise and more will likely need to transition their businesses to other platforms, like YouTube or Instagram.

“Shutting down TikTok, even for a single day, would be a big deal, not just for people who create content on TikTok, but everyone who shares or views content,” said George Wang, a staff attorney at the Knight First Amendment Institute who helped write the institute’s amicus briefs on the case.

“It sets a really dangerous precedent for how we regulate speech online,” Wang said.

Who supports and opposes the ban?

Dozens of high-profile amicus briefs from organizations, members of Congress and President-elect Donald Trump were filed supporting both the government and ByteDance.

The government, led by Attorney General Merrick Garland, alleges that until ByteDance divests TikTok, the app remains a “powerful tool for espionage” and a “potent weapon for covert influence operations.”

Trump’s brief did not voice support for either side, but it did ask the court to oppose banning the platform and allow him to find a political resolution that allows the service to continue while addressing national security concerns.

The short-form video app played a notable role in both Trump and Democratic nominee Kamala Harris’ presidential campaigns in 2024, and it’s one of the most common news sources for younger voters.

In a September Truth Social post, Trump wrote in all caps Americans who want to save TikTok should vote for him. The post was quoted in his amicus brief.

What comes next?

It’s unclear when the Supreme Court will issue its ruling, but the case’s expedited hearing has some predicting that the court could issue a quick ruling.

The case will have “enormous implications” since TikTok’s user base in the U.S. is so large, said Erwin Chemerinsky, dean of Berkeley Law.

“It’s unprecedented for the government to prohibit platforms for speech, especially one so many people use,” Chemerinsky said. “Ultimately, this is a tension between free speech issues on the one hand and claims of national security on the other.”