Regulating Big Tech: Ho, Ho, Ho. That Is a Good One
October 11, 2021
How long do government attorneys remain on the job? One answer is, “Until a big time firm comes with a juicy job.”
Now what’s this fact of government life suggest for regulating big tech?
One clue appears in “Apple Files Appeal in Epic Games Case, Potentially Delaying App Store Changes for Years.” The operative word is “appeal.” Yep, Apple has money, lawyers, and corporate patience. The US government has fewer legal resources and some lawyers who might jump at a chance to work in the big weird spaceship house pizza dish.
Here’s the passage I noted:
If Apple wins the stay, which will be decided by a judge in November, a rule change potentially allowing developers to circumvent App Store fees of 15% to 30% may not take effect until appeals in the case have finished, a process that could take years.
Does this suggest that taking steps to deal with “big tech” may be a tough job?
Yep.
Stephen E Arnold, October 11, 2021
China: Rethinking Decentralized Finance the CCP Way
October 11, 2021
I read “Bitcoin Plummets after China Intensifies Cryptocurrency Crackdown.” The “real” news story reports:
Chinese government agencies including the country’s securities regulator and the People’s Bank of China (PBOC) said in a statement on Friday that all cryptocurrency-related business activities are illegal and vowed to clamp down on illicit activities involving digital currencies.
Well, that seems clear. Draconian? Sure.
A demonstration of power? Sure.
Popular among the digital currency enthusiasts in China? For party members, probably. For others, probably less enthusiasm.
What’s interesting is that China appears to recognize the threats posed by “digital everything” require government action.
Russia is playing a fence sitting game.
As nation states pick a team, will a different alignment of power emerge?
Interesting. What happens if those on the China side embrace total surveillance? Even more interesting.
I am delighted I am old. Thumbtypers are likely to have a different take on this development.
Stephen E Arnold, October 11, 2021
Is That an Iceberg or Dark Matter, Captain?
October 11, 2021
The spyware downloaded on your computer appears innocuous compared to what Gizmodo article: “The Ex-NSA Operative Cyber-Mercenary Scandal Shows The Spyware Industry Is Totally Out Of Control” discusses. Three ex-US intelligence operatives were almost charged with crimes related to work when they were employed by DarkMatter. DarkMatter is a cybersecurity company located in the United Arab Emirates.
The ex-operatives worked on Project Raven that helped the UAE government spy on its critics. They hacked computers around the world, including the United States. The ex-operatives avoided jail time thanks to a loophole that allows them to pay a $1.6 million fine. One of the accused, Daniel Gericke, is now employed by ExpressVPN, a prominent cyber security company.
ExpressVPN defended hiring Gericke and said they were aware of his actions on Project Raven. What is even more alarming is that surveillance experts are living double lives. The legally sell their services to reputable organizations as well as bad actors. It is like a weapons manufacturer who instigates war to augment their fortune.
There are organizations that are calling for an end to the double dipping in surveillance sales:
“However, privacy advocates have suggested that simply banning the occasional company from operation or the occasional prosecution is not going to be enough. Amnesty International, which helped expose NSO abuses, has called for a global moratorium on the sale of spyware products until a “human rights-compliant regulatory framework” can be developed and implemented. Other activists have similarly suggested that all sales should be halted until governments can “investigate and regulate this industry”—the likes of which is poorly understood by lawmakers and everyday people alike.”
Unfortunately the surveillance bad actors probably will not be reined in until a tragedy happens.
Whitney Grace, October 11, 2021
The Economist Zucks Facebook
October 8, 2021
Time to unfollow or defriend or just erase the Zuck?
“Facebook Is Nearing a Reputational Point of No Return” illustrates the turning of the capitalistic worm. The newspaper which sure looks like a magazine to me states:
Facebook is nearing a reputational point of no return.
Then this wowza:
If rational argument alone is no longer enough to get Facebook out of its hole, the company should look hard at its public face. Mark
Zuckerberg, Facebook’s all-powerful founder, made a reasoned statement after this week’s wave of anger. He was ignored or ridiculed and increasingly looks like a liability.
Facebook has been chugging along since 2004. Finger pointing, legal action, and the Winkelvossing have been stirred into Cambridge Analytica, apologies, and savories like WhatsApp as a new Dark Web.
Suddenly the Zuck is a liability.
Seventeen years and counting. Insight takes time to arrive.
Stephen E Arnold, October 8, 2021
Yext: Payoff Marketing
October 8, 2021
Years ago my team took a look at a search system called EasyAsk (originally Linguistic Technology Corporation and eventually as a unit of Progress Software and then a stand alone company headed by Craig Bassin, founder of B2Systems.
Yes, EasyAsk is licensing a range of software, but the company seems to lead with search for eCommerce.
What’s interesting is that the firm used what I called “payoff marketing.” The idea is that use of a particular search-and-retrieval system with appropriate technical enhancements can deliver a big financial return.
Here’s a snip from the EasyAsk Web site. Note the tagline: “Cognitive eCommerce.”
The “payoff” angle is evident in “Watch revenues soar by at least 20% within 90 days.”
In some sales presentations from other vendors I have heard words that suggest increased return on investment, reduced cost of search, and increased sales. Not too many vendors have gone out on a limb at put a number in the customer’s mind.
However, Yext has taken a page from the EasyAsk marketing playbook. I read “People’s United Bank Sees 15x Annualized ROI from Site Search Integration between Yext, Virtusa, and Adobe.” Wouldn’t the word “among” be more accurate? Oh, well.
Here’s the snippet I circled:
The launch of Yext Answers assisted in about a 50% and as much as 70% reduction in unnecessary support call volume in the months following its launch compared to the months before. By integrating locations into the Yext search experience with Adobe AEM, People’s United saw an estimated 15x annualized return on investment (ROI) on the platform — a number that rose to 35x annualized ROI when including locations, FAQs, and products.
I think this is another example of payoff marketing.
I find the angle an interesting one. Search-and-retrieval systems have been seeking a model for sustainable revenue for more than 40 years. Subscriptions, license fees, and engineering support have worked. The winning method is to charge people to appear in search results and sell advertising.
What happens if the search system does not deliver a “15x annualized return”? My hunch is that companies confident enough to provide a numeric peg for search technology have the hard data to shoot down doubters.
Stephen E Arnold, October 8, 2021
Google and the Russian Law: A Mismatch
October 8, 2021
I think this may have been a social visit. You know. A couple of people who wanted to snag a Google mouse pad or one of those blinking Google lapel pins. “Court Marshals Visit Google’s Moscow Office to Enforce Censorship Decision” asserts in “real” news fashion:
In the run-up to Russia’s parliamentary elections on Sept. 17-18-19, the Kremlin’s battle against online dissent brings new developments almost daily. Tech giants are not spared, with Google at the forefront earlier this week. Court marshals visited the company’s Moscow office to enforce an injunctive measure to remove the opposition-minded ‘Smart Vote’ site from search results. This online voting recommendation system was designed by the team of jailed Kremlin critic Alexey Navalny.
Yep, just a casual drop in. Fun. Censorship? I think it depends on whom one asks.
What happened? Google and Apple rolled over. I assume that digital countries understand that real countries have some powers that commercial enterprises lack?
Do you remember when Sergey Brin hoped to ride a Russian rocket into space? Not going to happen this week.
Stephen E Arnold, October 8, 2021
Amazon AI: Redefines Defensive Driving and Some Rules of the Road
October 8, 2021
For a glimpse of the smart software which cost Dr. Timnit Gebru her role at the Google, check out “Amazon’s AI Cameras Are Punishing Drivers for Mistakes They Didn’t Make.” Now imagine this software monitoring doctors, pilots, consultants, and Amazon product teams. No, not Amazon product teams.
The write up states:
In February, Amazon announced that it would install cameras made by the AI-tech startup Netradyne in its Amazon-branded delivery vans as an “innovation” to “keep drivers safe.”… The Netradyne camera, which requires Amazon drivers to sign consent forms to release their biometric data, has four lenses that record drivers when they detect “events” such as following another vehicle too closely, stop sign and street light violations, and distracted driving.
Smart software then makes sense of the data.
The write up quotes one driver who says:
I personally did not feel any more safe with a camera watching my every move.
Safe? Nope. Hit quotas. I noted:
In June, Motherboard reported that Amazon delivery companies were encouraging drivers to shut off the Mentor app that monitors safety in order to hit Amazon’s delivery quotas.
What’s up?
- Get points for showing concern for driver safety
- Get the packages out
- Have life both ways: Safe and speedy.
Might not work, eh?
Stephen E Arnold, October 8, 2021
Snap Cracks into Action
October 8, 2021
I read “Snap Is Taking Action to Address Fentanyl Dealing on Snapchat.” I learned:
In its blog post, Snapchat stresses that it’s taking more enforcement action against dealers on its platform. It says that enforcement rates have more than doubled in the first half of 2021, and that its systems have proactively detected 260 percent more material than it did previously. It says that nearly two-thirds of drug-related content is proactively discovered by its artificial intelligence systems and adds that it’s improved its response time to valid law enforcement requests by 85 percent year over year. Nevertheless, Snap admits it still has more work to do.
Yep, encouraging. Slow responses to government inquiries? Hey, the company is busy. A synthetic heroin market? Hey, who knew. More work to do? Heck, yes. Busy? Right.
Social media companies are interesting. Just busy.
Stephen E Arnold, October 8, 2021
An Onion Story: The Facebook Oversight Board Checks Out Rule Following
October 7, 2021
I read “Facebook’s Oversight Board to Review Xcheck System Following Investigation of Internal System That Exempted Certain Users.” Is this a story created for the satirical information service Onion, MAD Magazine, or the late, lamented Harvard Lampoon?
I noted this passage:
For certain elite users, Facebook’s rules don’t seem to apply.
I think this means that there is one set of rules for one group of users and another set of rules for another group of users. In short, the method replicates the tidy structure of a medieval hierarchy; to wit:
The “church” would probably represent the Zuck and fellow technical elite plus a handful of fellow travelers. The king is up for grabs now that the lean in expert has leaned out. The nobles and barons are those who get a special set of rules. The freemen can buy ads. The serfs? Well, peasants are okay for clicks but not much else.
Now the oversight board which is supposed to be overseeing will begin the overseeing process of what appears to be a discriminatory system.
Obviously the oversight board is either in the class of freemen or serfs. I wonder if this Onionesque management method is a variant of the mushroom approach; that is, keep the oversight board and users in the dark and feed them organic matter rich in indole, skatole, hydrogen sulfide, and mercaptans?
That Facebook is an Empyrean spring of excellence in ethics, management, and business processes. My hunch is that not even the outfits like the Onion can match this joke. Maybe Franz (Happy) Kafka could?
Stephen E Arnold, October 7, 2021
Insight into Hacking Targets: Headhunters Make Slip Ups but the Often Ignore Them
October 7, 2021
I read “Former NSA Hacker Describes Being Recruited for UAE Spy Program.”
Here’s the passage I noted:
There were no red flags because I was so naive. But… there’s a ton of red flags [in retrospect]…. [For example] when you’re in the interview process and you’re talking about defending [the UAE] and … doing tracking of terrorist activity,… but then you’re [being asked] very specific questions about integrated enterprise Windows environments and [how you might hack them]. Guess who doesn’t have those type of networks? Terrorist organizations. So why [is the recruiter] asking these kinds of questions…?
Several observations:
- Perhaps a training program for those exiting certain government work assignments would be helpful? It could be called “Don’t Be Naïve.”
- Gee, what a surprise: Specific questions about hacking integrated enterprise Windows environments. Perhaps Microsoft should think about this statement from the article and adjust its security so that headhunters ask about MacOS, Linux, or Android?
- Does the government’s monitoring of certain former employees need a quick review?
Stephen E Arnold, October 7, 2021
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