Facebook released the names of the members of its new Oversight Board, which has the power to overrule company chief executive Mark Zuckerberg. Law professor Kate Klonick dubs it a “historic moment,” and “the first time a private transnational company had voluntarily assigned a part of its policies to an external body like this.” Facebook’s four co-chairs spent much of 2020 choosing the other 16 members. They and Facebook will choose another 20, but from then on, the members will be selected without Facebook input. Continue reading Facebook Oversight Board Announces New Member Names

Despite a decline in iPhone sales, Apple’s revenue rose 1 percent in its fiscal Q2 (ending March 28) to $58.3 billion, with profit falling about 3 percent to $11.25 billion or $2.55 a share. Prior to the coronavirus pandemic, Apple projected more than $63 billion, but the numbers still exceeded analysts’ expectations of almost $55 billion in revenue. Due to an uncertain economy in the wake of the pandemic, Apple would not project Q3 sales, the first time it declined to do so since it began offering such guidance in 2003. Continue reading Apple’s Revenue Rises, Buoyed by Services and Accessories

As a result of the global shutdown, personal and business Internet usage is way up. SimilarWeb reported that users spent an additional 5 billion hours of screen time in March — a 13 percent leap over February — on the 100 most popular sites, including Facebook and Google. Likewise, Amazon, Netflix and YouTube are thriving. That’s led to a surge in demand for chipsets. Micron Technology chief executive Sanjay Mehrotra said his company is shifting production of its chips away from smartphones and towards data-center products. Continue reading Chip Sales Surge as Screen Time Increases During Pandemic

With the coronavirus pandemic, advertising plummeted on many online sites, including social media giant Facebook. The company’s chief financial officer David Wehner declared that factor “largely attributable” to the 16 percent decline in average price of ads purchased in March. But gaming and e-Commerce companies picked up the slack by spending more, taking advantage of less competition in the company’s ad auctions. As a result, Facebook chief executive Mark Zuckerberg told analysts the company would “remain in growth mode.” Continue reading Facebook Ad Sales Pick Up, Resulting in Strong Q1 Revenue

In the economic crisis generated by the coronavirus pandemic, Big Tech companies like Amazon, Apple, Facebook and Google are thriving. Amazon and Facebook are viewed as essential services, and Apple and Google are working on tools that will help the nation’s state health departments trace COVID-19 infections. While funding for startups shrivels, these companies are hiring. Only months ago, these companies were embattled by regulators and privacy advocates. Now their lobbyists are working to delay California’s new privacy law. Continue reading Big Tech Firms Are Thriving in the Midst of Global Pandemic

U.S. District Court for the District of Columbia judge Timothy Kelly approved a deal reached last summer whereby Facebook will pay a $5 billion fine to settle with the Federal Trade Commission over privacy violations related to the Cambridge Analytica scandal. Facebook will also be restricted in some of its business decisions and will be subject to ongoing oversight. Facebook chief privacy officer for product Michel Protti noted that the agreement “has already brought fundamental changes to our company.” Continue reading Judge Greenlights Facebook’s $5B Agreement with the FTC

The group video chat app Zoom has been No. 1 in the Apple store for more than a month, growing 740 percent in the last month, according to App Annie. The company, valued at $47 billion, now boasts 300 million daily participants. Success spurs competition, and Zoom is now in the crosshairs of Big Tech and telecommunications companies. After Facebook chief executive Mark Zuckerberg urged a focus on completing its video chat projects, the company launched Messenger Rooms for as many as 50 people. Continue reading Facebook, Google and Others Challenge Zoom’s Dominance

Facebook will release its free Facebook Gaming mobile app, moving up the original June launch as people are sheltering in place due to the COVID-19 pandemic. The app, tested in Southeast Asia and Latin America for 18 months, is designed for creating and watching live game play, a burgeoning sector of the $160 billion global games industry. Having invested in gaming to shed a once-drab reputation, Facebook stated that now 700+ million of its 2.5 billion monthly users engage in gaming. Its rivals in live gaming include Amazon’s Twitch, Google’s YouTube and Microsoft’s Mixer. Continue reading Facebook Bumps Up Release of Mobile App for Live Gaming

The People’s Bank of China (PBOC), the country’s central bank, introduced a digital currency known as DCEP (Digital Currency Electronic Payment), which it said will share some features of bitcoin and Facebook’s Libra. It’s being internally tested in four large cities — Shenzhen, Suzhou, Chengdu and Beijing satellite city Xiong’an — aimed at improving its functionality and, in part, to prepare for the 2022 Winter Olympics in Beijing. The PBOC started its digital currency research in 2014. Continue reading China Launches Test of DCEP Digital Currency in Four Cities

This week, big tech companies such as IBM and Intel will report quarterly earnings, followed by Apple, Facebook, Alphabet, Amazon and Microsoft next week. Some companies — such as Amazon, Intel, Micron Technology and Microsoft — are doing well, even growing, whereas Facebook and Alphabet deal with a dramatic plunge in advertising. Even Apple issued a “rare profit warning.” The pandemic is hitting startups particularly hard, as venture capital money dries up and they are forced to lay off staff. Continue reading Pandemic Tests Big Tech Firms, Slows VC Money for Startups

Facebook and its partners pulled back their ambitious plans for the Libra cryptocurrency, which was unveiled last June as “a futuristic global money” that could be the foundation of a “new kind of financial system.” In the months since its June debut, the Libra project has encountered a range of obstacles and the scrutiny of regulators. The Swiss-backed Libra Association, citing global opposition to the project, now aims to create a payment network with coins tied to a local currency. Continue reading Facebook Narrows Scope of Proposed Libra Cryptocurrency

Tech companies are stepping up to offer much-needed resources and financial support during the global coronavirus pandemic. TikTok recently announced three funds with plans to provide $250 million for COVID-19 relief efforts in addition to $125 million in advertising credits for health organizations and small businesses. Apple and Google have joined forces to introduce contact-tracing apps for COVID-19, while both tech giants are using a number of their apps and services to help share valuable information with the public and assist with relief efforts. Other tech companies are also offering financial help, donating medical supplies and leveraging their popularity and services to provide support. Continue reading Big Tech Offers Financial Aid, More to Help During Pandemic

Instagram noted that, “small businesses are an important part of our community, and many are facing immense challenges during the COVID‑19 crisis.” The social media platform is now making it easier for small businesses to share gift card, food order and fundraiser stickers in their profiles and Stories. Aimed at increasing user engagement, Instagram is also trying out a new “Challenge” sticker for Stories which, when applied, would allow users to tag connections and invite them to partake in visual competitions. Continue reading Instagram’s New Stickers to Help Support Small Businesses

Zoom has gotten a lot of attention as the popular video chat platform that’s soared in usage since the COVID-19 shutdown. But Houseparty is another video chat platform with free mobile and desktop apps that’s gaining traction. Originally targeting teens, Houseparty offers features designed to encourage interaction, such as jumping into a conversation or playing trivia games remotely. In the last month, Houseparty has had 50 million signups, about 70 times its typical number in some markets, said cofounder and chief executive Sima Sistani. Continue reading Houseparty Chat Expands Beyond Teens to Wider Audience

Facebook and Google’s ad businesses appeared to be unstoppable, tripling over the last five years and accounting for more than half of online advertising expenditure. That long run appears to be over with the coronavirus pandemic and its impact on the global economy. Wall Street is now projecting that annual revenues for the two companies will decline for the first time in their histories, due in part to record low prices for advertising. Even so, prospects are even more dire for the overall digital advertising industry. Continue reading In Grim Ad Market, Even Facebook and Google See Declines