Digital Platform Policy Highlights - Digest 21
Q4-23 and Q1-24: This post outlines how digital platforms adapt their features and policies to attract new groups of users on their platform. ICYMI, we are back after a short break :)
This post is part one of a series documenting policy changes and feature improvements introduced by platforms in Q3 2023 and Q1 2024.
TL;DR → Policy changes to attract new users include:
Google’s Gemini chatbot having access to Gmail, Docs, and Drive
Users of Digital Wallets (Venmo etc.) getting a Tax Reprieve
Epic Games Store tries to draw older games onto platform
Epic Games Store has launched a new program called “Now on Epic” that allows developers to bring their existing games to the platform and receive 100% of the revenue for the first 24 months. The program is open to any game that has been released on another PC storefront before October 2021. Epic is hoping that the incentive will draw more developers to its store, as it tries to recover from its epic courtroom battle with Apple and Google. Btw, the store already had a relatively generous revenue-split (88%). (link)
Google’s Gemini chatbot can access Gmail, Docs, and Drive
Google Gemini, previously Bard, got new integrations with other Google services, including Gmail, Docs, Drive, Maps, YouTube, and Google Flights. Gmail, Docs, and Drive integrations will be turned off by default, but users will be prompted to enable them. Preempting users’ privacy concerns, Google is promising that personal email and documents will not be used to train its models. The new integrations seem like are a smart way to leverage Google’s existing breadth of services and user data. Given that these features will be available to all Gemini users, would it make Gemini more competitive for an end-user? (link)
Google opens Gemini LLM to teens, with restrictions
Google’s Gemini for Teenagers comes with tailored safety features or “guardrails”. The chatbot will come with educational resources about AI, verify factual questions with Google Search, and implement guardrails against inappropriate content. Positioned here as a useful personalized education tool, Google is promoting its abilities in helping with homework and data interpretation. Given Google’s prevalence in classrooms with products like Google Workplace and Google Classroom, Gemini for Teens may actually be a great strategy to attract new generation of users. (link)
Meta to encrypt Messenger
Meta had added end-to-end encryption to its Messenger service in response to competition from other encrypted messaging apps like Signal. Meta is likely looking to cut into Signal’s market share, which has around 40 million users as of 2022. Though encryption would enhance users’ privacy (since it should be theoretically impossible for third-parties to read messages), law enforcement agencies have expressed concerns that such encryption would make it harder to track criminal activities. (link)
Meta’s Threads expands into Europe
Meta’s roll out of its X competitor, Threads, in Europe is its largest expansion since its July debut. With this expansion, Meta is aggressively trying to increase the app’s global reach. Threads had an explosive start back in July, gaining 100 million users just days after its initial launch, but quickly lost momentum as interest waned. Now after clearing regulatory hurdles to operate in the EU, Threads is looking to regain that growth as it tries to overtake X. (link)
Users of Venmo Other Digital Wallets Get a Tax Reprieve
The IRS has postponed enforcement of a controversial tax policy for the second time. The policy requires users of digital wallets and e-commerce platforms to report transactions as low as $600 to the agency. Pressure from lobbyists, including Venmo, PayPal, Cash App, StubHub, and Etsy, prompted the Biden administration to delay its implementation. IRS Commissioner Daniel Werfel cited concerns about potential increases in tax liabilities for users of digital wallets as the rationale for the postponement. It is interesting to see if the eventual implementation will drive small vendors to go back to cash. (link)
Amazon allows advertisers to use AI-enhanced images
Amazon’s AI-based image-generation tool for advertisers allows brands, especially those without creative teams, to enhance product images with generated backgrounds or scenes. Aimed at improving ad performance, the tool can significantly increase click-through rates by making product visuals more appealing and engaging. While this tool makes it easier for smaller sellers to compete, there could be major concerns related to product misrepresentation: unknown sellers using AI tools to subtly hide unfavorable product details. (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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