Tech Policy Highlights from February 2023 [Part 2]
The Current Scoreboard for Feb 2023 is: Twitter 3, Apple 2, Google 2, Meta 2, Microsoft 2, TikTok 2, Animoca Brands 1, Bank of Israel 1, GoodRx 1, OpenAI 1, Tinder 1, Twitch 1, Wikipedia 1
This post is part two of a series documenting policy changes and feature improvements introduced by platforms in February 2023. You can find Part 1 here.
TL;DR → In the Tech Regulatory Space,
GoodRx has been fined $1.5 million by the FTC for sharing user data with third-party advertisers without consent
Wikipedia has been blocked in Pakistan over alleged blasphemy
Twitter has been restricted by Turkey after an earthquake
AI chatbots such as ChatGPT has been cracked down in China
Google Maps is hit by an antitrust probe by DOJ
Meta has removed millions of posts from Facebook and Instagram in India.
TikTok further opens up Research API
To extract surplus from some users who value specific features
Twitter announces revenue share with twitter blue subscribers
Twitter markets SMS based 2FA as a premium feature
Meta plans rolling out verification badges for a monthly fee.
(Potential) Policy changes in response to (Potential) external regulation
During February 2023, the digital tech landscape witnessed various external regulatory measures that could potentially trigger policy changes on digital platforms.
1. GoodRx fined $1.5 million by FTC for violating user privacy
The fine on GoodRx, a popular app that offers discounts on prescription drugs, is for sharing sensitive user data with third-party advertisers without consent. Millions of GoodRx users had their data shared with data brokers, analytics firms, and ad service companies, andFTC said that GoodRx violated a federal rule that requires health apps to obtain consent before sharing health information. The settlement would prohibit GoodRx from sharing health data for “advertising purposes” and direct the third parties that received sensitive information from GoodRx to delete the data (link 1 & link 2).
2. Wikipedia has been blocked in Pakistan over alleged blasphemy
After Wikipedia was ordered to remove “sacrilegious” content within 48 hours, the site has been blocked within Pakistan. The ban isn’t unprecedented: several major sites have faced blocks from Pakistan in the past: a three-year ban on YouTube, shutting down of TikTok in 2020 and 2021, citing complaints of “immoral / indecent content” on the app. Pakistan’s order illustrates the challenges that Wikipedia faces in dealing with censorship and legal threats from different governments and groups around the world, and push from them to develop a local Wikipedia policy (link).
3. Turkey restricts access to Twitter after earthquake
Twitter’s blockage seems a coordinated effort to prevent the spread of disinformation and criticism after a 7.8-magnitude earthquake hit the country on Monday, killing more than 20,000 people and leaving thousands more homeless. The policy change affects millions of internet users in Turkey depending on Twitter for communication, information and coordination of relief efforts. The heavy-handed measure raises concerns about freedom of expression and access to information in Turkey, especially in moments where the rapid updates are urgently needed (link).
4. China cracks down on AI chatbots over uncensored replies
As ChatGPT takes the world by storm, the Chinese government has warned its tech companies to restrict access to the OpenAI chatbot and “report to officials before launching their own rival [products]”, lest the domestic chatbots provide uncensored replies. Tech executives always knew that ChatGPT, an off-the-box large language model (LLM), could not enter China due to censorship issues, and that China would need its own versions of ChatGPT, as one tech executive told Nikkei. This requirement of a much stricter “guardrails” for LLMs and the fear of prosecution may hamper the development and rollout of such tools (link).
5. DOJ targets Google Maps in antitrust probe
The Justice Department is investigating Google’s dominance in mapping and location data, which is a key part of its search results. The probe is focused on how Google bundles its services and forces developers to use its maps and search products together. An eventual lawsuit could affect the many businesses and developers dependent on Google who are currently “forced” to use its bundled products rather than the individual services they need (link).
6. Meta removes millions of pieces of content from Facebook, Instagram in India
The taking down of over 22.54 million pieces of content across 13 policies for Facebook and over 12.03 million pieces of content across 12 policies for Instagram happened in December 2022 in India. The policies include hate speech, nudity and sexual activity, bullying and harassment, violent and graphic content, spam and fake accounts. Meta is also providing its users with new tools to report harmful content, as India’s new IT Rules 2021 require major platforms to publish monthly compliance reports (link).
7. TikTok opens its proprietary data to more researchers
TikTok is accepting applications from US-based researchers to use its research API, which allows approved researchers to access public data on content and accounts on the platform. As TikTok tries to fend off concerns over its ties to the Chinese government and potential regulations from other countries, the research API could help increase transparency and confidence in the platform’s independence (link).
Policy changes to extract surplus from a subgroup of users who value some specific features
There have been several recent announcements regarding policy changes to extract surplus from a subgroup of users who value some specific features on the platform.
1. Twitter (Musk) offers ad revenue share for Twitter Blue users
Musk says that Twitter will share revenue from reply-thread ads with creators who have Twitter Blue Verified subscription. He says the program will start on Feb 3rd, but does not provide any details. The revenue-share reflects Musk’s hopes to get more users to sign up for Twitter Blue, as he struggles to significantly increase the company’s revenues. Indeed, paying to get paid seems like an interesting strategy (link).
2. Twitter makes SMS two factor authentication a premium feature
SMS two-factor authentication, widely considered the worst form of 2fa (since those texts can be intercepted in “SIM-swapping hacks”), will soon be a premium feature on Twitter. SMS two-factor authentication will be a perk for Twitter Blue subscribers, though more secure 2fa methods like security keys and authentication apps will remain available to all users. Sean Hollister of The Verge speculates that Twitter might be making SMS 2fa a premium feature due to the fact that sending text messages for verification costs Twitter money, and so limiting the feature would be a cost-saving measure (link).
3. Meta tests paid verification for Instagram and Facebook users
Taking a leaf out of Twitter’s book, the new Meta Verified subscription offers a verification badge, account protection, customer support, and exclusive features. The service costs $11.99 per month on the web or $14.99 per month on iOS or Android. The service affects users who want to establish their authenticity and presence on Instagram and Facebook. As Meta faces increased scrutiny from investors, the company has tried to cut costs and boost revenues, turning to verification as another product (link).
Research help from Anantesh Mohapatra, Melvin Jabamani, Yiran Liu (Thanks a ton, folks!)
Part 3 to follow in a week’s time. Please spread the word if you think someone in your circle likes these type of posts :)
Cheers,