Digital Platform Policy Highlights - Digest 9
This edition has a focus on restrictions, threats to walk out and monetization. Unsurprisingly, a majority of the posts are related to ChatGPT.
This post is part three of a series documenting policy changes and feature improvements introduced by platforms in March 2023. You can read part 1 here and part 2 here.
TL;DR → Policy changes to curb bad behaviors on the platform (such as service denials, discrimination, rule-breaking etc.) or to respond to backlash to their previous policy changes to curb “bad” behaviors include
YouTube joins Twitter and Facebook in revoking ban on Mr. Trump
WhatsApp threatening to leave the UK to safeguard end-to-end encryption
Policy changes to extract surplus from a subgroup of users include
Zoho Corporation launching its first ever desktop native app
Twitter adjusting its API pricing after a backlash
Here are a few policy changes that platform introduced in response to “bad” behaviors or a backlash to their previous changes in response to “bad” behaviors.
Meta and its handling of the controversial VIP Program
Facebook’s “VIP Program” allows some high-profile public figures (such as politicians and celebrities) to bend company’s content moderation rules. The program, called "cross check" or "XCheck", was created to avoid public relations problems, but has been criticized for creating a double standard and undermining trust. In response, Meta constituted an Oversight Board which made 32 recommendations, of which Meta agreed to adopt 26 of them at least partially. Of the ones rejected are the key recommendations, such as disclosing the list of participants of the program. Meta is in an interesting spot: it admits that curbing bad behavior by the VIPs is “necessary” but may affect the revenue on the platform via a decrease in engagement. (link)
Microsoft making Bing index off-limits to rivals who train their own chatbots
It is well known that Microsoft licenses Bing’s search data to other search engines, including DuckDuckGo, Yahoo! and You.com. However, Microsoft wants to restrict the use of Bing’s search index to power these competitors’ own AI chatbots. Per Bloomberg report, the company has reportedly warned two of its licensees against using Bing’s data to be used with their own AI chatbots. Microsoft faces a dilemma: while it wants competitors to power their search using Bing, it wants to protect its own chatbot, which is powered by OpenAI’s GPT-4 language model, especially as Google rolls out its own competing chatbot, Bard (link)
Uber cracks down on spammy Ghost Kitchens
Ghost kitchens, the online-only kitchens with no storefront, really took off in popularity during the worst days of the pandemic. While Uber Eats permits ghost kitchens, it is now cracking down on thousands of redundant listings, where the same restaurant is listed under multiple names. Uber Eats now requires ghost kitchensto have different menus, high ratings, and low cancellation and error rates. While the changes may improve the experience for consumers on Uber Eats, it may reduce competition for Uber’s own virtual restaurant program. (link)
Blockchain SIM cards introduced in China
An issue that blockchain protocols intend to solve is making it easier for users to safely store and transfer digital assets securely and conveniently, while facilitating regulatory compliance. China Telecom, the second-largest wireless carrier in China, intends to solve this by teaming up with Conflux Network, a blockchain protocol, to create blockchain SIM cards (BSIM). The BSIM cards “solve” the problem by linking users' decentralized identifiers (DID) with their mobile phone numbers. China Telecom will launch its BSIM pilot program in Hong Kong later this year, followed by key mainland China locations. Blockchain experts are yet to comment on the practicality of the solution (link)
YouTube joins Twitter and Facebook in revoking ban on Mr. Trump
YouTube has followed Facebook and Twitter in restoring Mr. Trump’s account, without explicitly giving a clear reason. It could be because of relaxing their moderation rules after bearing intense criticism from conservatives. Alternatively, it could be because of his intention to run for president again in 2024 and YouTubewants to be fair to all political candidates.What is obvious is that tech policies are not permanent and bans are not effective for a popular figure. (link)
The following policy is not about curbing misconduct, but rather about resisting excessive government interference.
WhatsApp and Signal may leave the UK over Online Safety Bill
The proposed Online Safety Bill in the UK would require online platforms to remove illegal or harmful content, or face fines or bans. The bill would also allow the government to order platforms to weaken or disable end-to-end encryption, which protects users' privacy and security. Both WhatsApp and Signal have threatened to “walk” from the UK over compromising users’ privacy and security of everyone else in the world. Given that the UK constitutes only 2% of WhatsApp’s installed base, the threat seems credible.(link)
Here are a few policy changes that were instituted to extract surplus from a subgroup of users who highly value some specific features.
ChatGPT Plus Subscription launched in India after a delay
The subscription, priced at $20 in the US is available for the same price in India (Approx. INR 1650) and provides same advanced features such as priority access to GPT-4. It is unclear why the paid version was delayed in India. India was not among the countries where ChatGPT faced legal and ethical barriers, as Indian users always had access to the free version of ChatGPT. Perhaps the payment system was incompatible with RBI norms that prohibit recurring subscriptions (link). It is noteworthy that OpenAI anticipates a substantial number of paid subscribers in India without providing a lower tiered subscription price, like the other US based platforms provide (link)
Ads on Bing AI chatbot
Some users appreciate that Bing AI is connected to the internet, unlike ChatGPT. While ChatGPT has taken the subscription route to provide access to premium features, Microsoft has chosen to incorporate ads in the Chat result (as my friend Alex noticed here). The company, however, hasn’t specified the volume of ads that will be present. This strategy makes sense for a search engine that has invested billions of dollars into OpenAI’s chatbot technology. I just hope that the model is not fine-tuned to favor a response that makes it easier to insert an ad (link)
Zoho Corporation launches its first ever desktop native app for collaboration
Zoho, a company known for its Zoho Office Suite, has launched its first desktop native app Trident, which combines email, chat, calls, meetings, calendar, tasks, notes, contacts and more in one place. The app is built for Mac and Windows OS and offers a unified communication platform for the hybrid and remote workforce. Zoho’s offerings are aimed at businesses’ hybrid or digital work, a sector that has become increasingly relevant as the pandemic has reshaped workers’ location preferences. It costs $3 for a business user and is free for individual users (link)
Twitter unveils new API pricing
Twitter’s new API pricing includes a free write-only tier (less than 1500 tweets per month), a basic tier for $100 per month, and an enterprise tier that’s rumored to cost $42,000 a month at least. The change will likely hurt the developer community around Twitter, which depends on low-cost access to the API for certain projects. Researchers may also see their access to the platform’s data curtailed unless they’re willing to pay the steeper costs. It's interesting where this policy will stabilize, given that twitter had to roll back some of their changes announced in Feb 2023. (link)
Research help from Anantesh Mohapatra, Melvin Jabamani, Yiran Liu (Thanks a ton, folks!)