Digital Platform Policy Highlights - Digest 22
Q4 23 & Q1 24: This post outlines how digital platforms adapt their features and policies to comply with new government regulations for the stability and image of their businesses.
This post is part two of a series documenting policy changes and feature improvements introduced by platforms in Q4 2023 and Q1 2024.
TL;DR → Policy changes to address external regulations include:
Apple agreeing to enhance Text Message Compatibility with Android
Threads enabling the account deletion separately from Instagram
TikTok halts e-commerce operations in Indonesia
Indonesia has banned commerce on social media platforms, forcing TikTok shut down its “Shop” feature in Indonesia, where users were able to buy products promoted by content creators on the app. Indonesia is a significant market for TikTok: the platform has 125 million users, 6 million sellers, and a e-commerce market with transactions totalling $2.5 billion in the country. The ban is a setback for TikTok, which has been looking to expand its revenue streams. However, just the e-Commerce ban is still a lot better than the entire app ban from Indonesia. (link)
Germany makes Google change data terms
Google has agreed to give users more control over their data in Germany, following an investigation by the country’s antitrust regulator. The company will allow users to choose whether their data is used for advertising purposes, and will also provide more transparency about how their data is collected and processed. Google will likely implement these changes throughout the EU, since the bloc has similar rules requiring data protections. (link)
Instagram's New Tracking Opt-Out
Named "Activity Off-Meta Technologies," Meta’s new feature on Instagram allows users to review, disconnect, or delete data shared by third-party websites and apps using Meta's tools like Meta Pixel. This feature, expanding from Facebook, is part of Meta's effort to increase user control over their data and transparency in ad targeting, in response to stricter privacy rules in the EU. What would be interesting is to learn the proportion of users (and their friends) who will enable this feature. (link)
Britain Enacts Online Safety Act
The recently enacted Online Safety Act introduces tough rules for online content to address issues like child abuse and terrorism. It requires platforms to actively monitor and remove harmful content, rather than just reacting to user reports. Critics are concerned this might lead to over-moderation, where platforms might remove harmless content out of fear of penalties, potentially affecting free speech. This proactive approach in content policing is also being required in the EU, which has similarly tightened rules for platforms.(link 1 and link 2)
Meta's Ad-Free Subscription in the EU
Meta rolled out a subscription in the EU to remove ads on Facebook and Instagram, costing around €9.99 to €12.99 per month (btw, these services have seen a steep price cut as of March 2024). This service, aligning with European data privacy laws, offers an alternative to Meta’s ad-based model. While this caters to privacy concerns, it remains uncertain if users will opt for this paid service, considering other subscriptions like YouTube Premium offer more benefits at a similar price. (link)
Apple will make texting more compatible with Android
In 2024, Apple plans to add support for RCS messaging to iPhones, a modern standard that's already used by Android phones. RCS will replace the older SMS and MMS systems, offering enhanced features like encryption and high-resolution media sharing. This update comes amid regulatory pressure and calls from competitors for better interoperability between iOS and Android devices. Apple has used iMessage in the past to keep customers in its ecosystem; while RCS support will make it easier for Android users to talk to iOS users, messages from Android will still show up as green.(link)
Google starts paying Canadian news publishers
Google has reached an agreement with the Canadian government regarding the Online News Act, Bill C-18. This move averts Google's initial plan (link) to block links to Canadian news outlets (As of March 2024, Meta continues to block such links). The deal involves financial terms that address Google's concerns about the bill, regarding compensating news publishers. This agreement allows Google to continue providing traffic to Canadian publishers and is part of a broader trend of governments negotiating with tech companies over news content rights. (link)
Google Settles Antitrust Case with Payment Changes
Google has settled an antitrust lawsuit by agreeing to pay $700 million to consumers and states, and allowing app developers on the Play Store to bypass Google's payment system, which previously took a 15 to 30 percent cut from transactions. Now, those fees will be reduced by 4% if the developer uses their own payment system. This change, part of the settlement with all 50 U.S. states, aims to address monopoly concerns and gives developers more control over the revenue their apps collect. (link)
Threads can now be deleted separately from Instagram
Meta is finally allowing Threads users to delete their profile independently from their Instagram account. Additionally, users can now opt out of having their Threads posts shared on Facebook and Instagram. With this update, they address existing user requests for more control over their social media presence. Furthermore, this move possibly helped the app secure regulatory approval in the EU.(link)
Research help from Anantesh Mohapatra, Angelina Wang, Anna Li, Jennifer Xie, John Mai and Marshall Singer (Thanks a ton, folks!)
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