Month: April 2018

The head of popular messaging service WhatsApp is planning to leave the company because of a reported disagreement over how parent company Facebook is using customers’ personal data. 

WhatsApp billionaire chief executive Jan Koum wrote in a Facebook post Monday, “It’s been almost a decade since (co-founder) Brian (Acton) and I started WhatsApp, and it’s been an amazing journey with some of the best people. But it is time for me to move on,” he said.

Koum did not give a date for his departure.

The Washington Post reported Monday that Koum is stepping down because of disagreements over Facebook’s attempts to use the personal data of WhatsApp customers, as well as efforts to weaken the app’s encryption. 

Action left the company last fall and since then has become a vocal critic of Facebook, recently endorsing a #DeleteFacebook social media campaign.

The Post, citing people familiar with internal WhatsApp discussions, said Koum was worn down by the differences in approach to privacy and security between WhatsApp and Facebook.

When WhatsApp agreed to the company’s sale to Facebook in 2014 for $19 billion, it said WhatsApp would remain an independent service and would not share its data with Facebook. 

However, 18 months later, Facebook pushed WhatsApp to change its terms of service to give the social network access to the personal data of WhatsApp users. 

WhatsApp is the largest messaging service in the world with 1.5 billion monthly users. However, Facebook has been struggling to find ways to make enough money from the app to prove its investment was worth the cost. 

Facebook has faced intense criticism since March when news broke that the personal data of millions of Facebook users had been harvested without their knowledge by Cambridge Analytica, a British voter profiling company that U.S. President Donald Trump’s campaign hired to target likely supporters in 2016.

Facebook chief executive Mark Zuckerberg testified before Congress earlier this month and apologized for inadequately protecting the data of millions of social media platform users. 

Facebook also recently announced it would allow all its users to shut off third-party access to their apps and said it would set up “firewalls” to ensure users’ data was not unwittingly transmitted by others in their social network.

Some members of Congress said Facebook’s actions to rectify the situation did not go far enough and have called for greater regulation of the internet and social media.
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Thousands of people marched through Moscow, throwing paper planes and calling for authorities to unblock the popular Telegram instant messaging app on Monday.

Protesters chanted slogans against President Vladimir Putin as they launched the planes – a reference to the app’s logo.

“Putin’s regime has declared war on the internet, has declared war on free society… so we have to be here in support of Telegram,” one protester told Reuters.

Russia began blocking Telegram on April 16 after the app refused to comply with a court order to grant state security services access to its users’ encrypted messages.

Russia’s FSB Federal Security service has said it needs access to some of those messages for its work, that includes guarding against militant attacks.

In the process of blocking the app, state watchdog Roskomnadzor also cut off access to a slew of other websites.

Telegram’s founder, Russian entrepreneur Pavel Durov, called for “digital resistance” in response to the decision and promised to fund anyone developing proxies and VPNs to dodge the block.

More than 12,000 people joined the march on Monday, said White Counter, a volunteer group that counts people at protests.

“Thousands of young and progressive people are currently protesting in Moscow in defense of internet freedom,” Telegram’s Durov wrote on his social media page.

“This is unprecedented. I am proud to have been born in the same country as you. Your energy changes the world,” Durov wrote.

Telegram has more than 200 million global users and is ranked as the world’s ninth most popular mobile messaging service.

Iran’s judiciary has also banned the app to protect national security, Iranian state TV reported on Monday.
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The future of parenting may see a big change as scientists and ethicists have a startling prediction about how children will be conceived in the future. Thanks to biomedical advances, parents may be able to choose a child from hundreds of embryos based on their DNA profile. Faith Lapidus reports.
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If you want your technology sector to expand rapidly, it pays to have strong support from the government, easy access to bank loans and a large market, hungry for your products. All this is available in China, where technology companies are expanding at a rapid pace — making other countries, including the U.S. — a bit uneasy. VOA’s George Putic reports.
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Thousands of years of sediment carried by the Mississippi River created 25,000 square kilometers of land, marsh and wetlands along Louisiana’s coast. But engineering projects stopped the flow of sediment and rising seas thanks to climate change have made the Mississippi Delta the fastest-disappearing land on earth. Louisiana State University researchers created the river system in miniature to try to stop the erosion and rebuild the delta. Faith Lapidus narrates this report from Deborah Block.
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A new approach for detecting food poisoning is being used to investigate the recent outbreak of E.coli bacteria in romaine lettuce grown in the U.S. state of Arizona. The tainted produce has sickened at least 84 people in 19 states. The new method, used by the Centers for Disease Control and Prevention, relies on genetic sequencing. And as Faiza Elmasry tells us, it has the potential to revolutionize the detection of food poisoning outbreaks. VOA’s Faith Lapidus narrates.
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Tech giants such as Facebook and Google must step up efforts to tackle the spread of fake news online in the next few months or potentially face further EU regulation, as concerns mount over election interference.

The European Commission said on Thursday it would draw up a Code of Practice on Disinformation for the 28-nation EU by July with measures to prevent the spread of fake news such as increasing scrutiny of advertisement placements.

EU policymakers are particularly worried that the spread of fake news could interfere with European elections next year, after Facebook disclosed that Russia tried to influence U.S. voters through the social network in the run-up to the 2016 U.S. election. Moscow denies such claims.

“These [online] platforms have so far failed to act proportionately, falling short of the challenge posed by disinformation and the manipulative use of platforms’ infrastructure,” the Commission wrote in its strategy for tackling fake news published on Thursday.

“The Commission calls upon platforms to decisively step up their efforts to tackle online disinformation.”

Advertisers and online platforms should produce “measurable effects” on the code of practice by October, failing which the Commission could propose further actions, including regulation “targeted at a few platforms.”

Companies will have to work harder to close fake accounts, take steps to reduce revenues for purveyors of disinformation and limit targeting options for political adverts.

The Commission, the EU’s executive, will also support the creation of an independent European network of fact-checkers and launch an online platform on disinformation.

Tech industry association CCIA said the October deadline for progress appeared rushed.

“The tech industry takes the spread of disinformation online very seriously…when drafting the Code of Practice, it is important to recognize that there is no one-size-fits-all solution to address this issue given the diversity of affected services,” said Maud Sacquet, CCIA Europe Senior Policy Manager.

Weaponizing fake news

The revelations that political consultancy Cambridge Analytica – which worked on U.S. President Donald Trump’s campaign – improperly accessed the data of up to 87 million Facebook users has further rocked public trust in social media.

“There are serious doubts about whether platforms are sufficiently protecting their users against unauthorized use of their personal data by third parties, as exemplified by the recent Facebook/Cambridge Analytica revelations,” the Commission wrote.

Facebook has stepped up fact-checking in its fight against fake news and is trying to make it uneconomical for people to post such content by lowering its ranking and making it less visible. The world’s largest social network is also working on giving its users more context and background about the content they read on the platform.

“The weaponization of online fake news and disinformation poses a serious security threat to our societies,” said Julian King, EU Commissioner for security. “The subversion of trusted channels to peddle pernicious and divisive content requires a clear-eyed response based on increased transparency, traceability and accountability.”

Campaign group European Digital Rights warned that the Commission ought not to rush into taking binding measures over fake news which could have an effect on the freedom of speech.

King rejected any suggestion that the proposal would lead to censorship or a crackdown on satire or partisan news.

“It’s a million miles away from censorship,” King told a news conference. “It’s not targeting partisan journalism, freedom of speech, freedom to disagree, freedom to be, in some cases, a bit disagreeable.”

Commission Vice-President Andrus Ansip said there had been some debate internally over whether to explicitly mention Russia in the fake news strategy.

“Some people say that we don’t want to name just one name. And other people say that ‘add some other countries also and then we will put them all on our list’, but unfortunately nobody is able to name those others,” the former Estonian prime minister said.
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Facebook Inc. shares rose Wednesday after the social network reported a surprisingly strong 63 percent rise in profit and an increase in users, with no sign that business was hurt by a scandal over the mishandling of personal data.

After easily beating Wall Street expectations, shares traded up 7.1 percent after the bell at $171, paring a month-long decline that began with Facebook’s disclosure in March that consultancy Cambridge Analytica had harvested data belonging to millions of users.

The Cambridge Analytica scandal, affecting up to 87 million users and prompting several apologies from Chief Executive Mark Zuckerberg, generated calls for regulation and for users to leave the social network, but there was no indication advertisers immediately changed their spending.

“Everybody keeps talking about how bad things are for Facebook, but this earnings report to me is very positive, and reiterates that Facebook is fine, and they’ll get through this,” said Daniel Morgan, senior portfolio manager at Synovus Trust Company. His firm holds about 73,000 shares in Facebook.

Facebook’s quarterly profit beat analysts’ estimates, as a 49 percent jump in quarterly revenue outpaced a 39 percent rise in expenses from a year earlier. The mobile ad business grew on a push to add more video content.

Facebook said monthly active users in the first quarter rose to 2.2 billion, up 13 percent from a year earlier and matching expectations, according to Thomson Reuters.

The company reversed last quarter’s decline in the number of daily active users in the United States and Canada, saying it had 185 million users there, up from 184 million in the fourth quarter.

Resilient business model

The results are a bright spot for the world’s largest social network amid months of negative headlines about the company’s handling of personal information, its role in elections and its fueling of violence in developing countries.

Facebook, which generates revenue primarily by selling advertising personalized to its users, has demonstrated for several quarters how resilient its business model can be as long as users keep coming back to scroll through its News Feed and watch its videos.

It is spending to ensure users are not scared away by scandals. Chief Financial Officer David Wehner told analysts on a call that expenses this year would grow between 50 percent and 60 percent, up from a prior range of 45 percent to 60 percent.

Spending on security

Much of Facebook’s ramp-up in spending is for safety and security, Wehner said. The category includes efforts to root out fake accounts, scrub hate speech and take down violent videos.

Facebook said it ended the first quarter with 27,742 employees, up 48 percent from a year earlier.

“So long as profits continue to grow at a rapid rate, investors will accept that higher spending to ensure privacy is warranted,” Wedbush Securities analyst Michael Pachter said.

It has been nearly two years since Facebook shares rose 7 percent or more during a trading day. They rose 7.2 percent on April 28, 2016, the day after another first-quarter earnings report.

Net income attributable to Facebook shareholders rose in the first quarter to $4.99 billion, or $1.69 per share, from $3.06 billion, or $1.04 per share, a year earlier.

Analysts on average were expecting a profit of $1.35 per share, according to Thomson Reuters.

Total revenue was $11.97 billion, above the analyst estimate of $11.41 billion.

Some details secret

The company declined to provide some details sought by analysts. It has not shared the revenue generated by Instagram, the photo-sharing app it owns, and it declined to provide details about time spent on Facebook. Facebook also owns the popular smartphone apps Messenger and WhatsApp.

Tighter regulation could make Facebook’s ads less lucrative by reducing the kinds of data it can use to personalize and target ads to users, although Facebook’s size means it could also be well positioned to cope with regulations.

Facebook and Alphabet Inc’s Google together dominate the internet ad business worldwide. Facebook is expected to take 18 percent of global digital ad revenue this year, compared with Google’s 31 percent, according to research firm eMarketer.

The company said it was increasing the amount of money authorized to repurchase shares by an additional $9 billion. It had initially authorized repurchases up to $6 billion.
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YouTube is overhauling its kid-focused video app to give parents the option of letting humans, not computer algorithms, select what shows their children can watch.

The updates that begin rolling out April 26, 2018, are a response to complaints that the YouTube Kids app has repeatedly failed to filter out disturbing content.

Google-owned YouTube launched the toddler-oriented app in 2015. It has described it as a “safer” experience than the regular YouTube video-sharing service for finding “Peppa Pig” episodes or watching user-generated videos of people unboxing toys, teaching guitar lessons or experimenting with science.

Failure of screening system

In order to meet U.S. child privacy rules, Google says it bans kids under 13 from using its core video service. But its official terms of agreement are largely ignored by tens of millions of children and their families who don’t bother downloading the under-13 app.

Both the grown-up video service and the YouTube Kids app have been criticized by child advocates for their commercialism and for the failures of a screening system that relies on artificial intelligence. The app is engineered to automatically exclude content that’s not appropriate for kids, and recommend videos based on what children have watched before. That hasn’t always worked to parents’ liking — especially when videos with profanity, violence or sexual themes slip through the filters. 

Updates give parents option

The updates allow parents to switch off the automated system and choose a contained selection of children’s programming such as Sesame Street and PBS Kids. But the automated system remains the default.  

“For parents who like the current version of YouTube Kids and want a wider selection of content, it’s still available,” said James Beser, the app’s product director, in a blog post Wednesday. “While no system is perfect, we continue to fine-tune, rigorously test and improve our filters for this more-open version of our app.”

Beser also encouraged parents to block videos and flag them for review if they don’t think they should be on the app. But the practice of addressing problem videos after children have already been exposed to them has bothered child advocates who want the more controlled option to be the default. 

Cleaner, safer kids’ app

“Anything that gives parents the ability to select programming that has been vetted in some fashion by people is an improvement, but I also think not every parent is going to do this,” said Josh Golin, director of the Boston-based Campaign for a Commercial-Free Childhood. “Giving parents more control doesn’t absolve YouTube of the responsibility of keeping the bad content out of YouTube Kids.”

He said Google should aim to build an even cleaner and safer kids’ app, then pull all the kid-oriented content off the regular YouTube — where most kids are going — and onto that app. 

Golin’s group recently asked the Federal Trade Commission to investigate whether YouTube’s data collection and advertising practices violate federal child privacy rules. He said advocates plan to meet with FTC officials next week.
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There has been a long tradition of making and drinking coffee across cultures and continents. Now, a tech company in Austin is adding to this tradition by creating robot baristas to make the coffee-drinking experience more convenient. For a similar price of a cup of Starbucks designer coffee, a robot can now make it, too. VOA’s Elizabeth Lee finds out whether robots will replace traditional baristas.
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Volkswagen and Nissan have unveiled electric cars designed for China at a Beijing auto show that highlights the growing importance of Chinese buyers for a technology seen as a key part of the global industry’s future. 

General Motors displayed five all-electric models Wednesday including a concept Buick SUV it says can go 600 kilometers (375 miles) on one charge. Ford and other brands showed off some of the dozens of electric SUVs, sedans and other models they say are planned for China. 

Auto China 2018, the industry’s biggest sales event this year, is overshadowed by mounting trade tensions between Beijing and U.S. President Donald Trump, who has threatened to hike tariffs on Chinese goods including automobiles in a dispute over technology policy. 

The impact on automakers should be small, according to industry analysts, because exports amount to only a few thousand vehicles a year. Those include a GM SUV, the Envision, and Volvo Cars sedans made in China for export to the United States. 

China accounted for half of last year’s global electric car sales, boosted by subsidies and other prodding from communist leaders who want to make their country a center for the emerging technology. 

“The Chinese market is key for the international auto industry and it is key to our success,” VW CEO Herbert Diess said on Tuesday. 

Volkswagen unveiled the E20X, an SUV that is the first model for SOL, an electric brand launched by the German automaker with a Chinese partner. The E20X, promising a 300-kilometer (185-mile) range on one charge, is aimed at the Chinese market’s bargain-priced tiers, where demand is strongest. 

GM, Ford, Daimler AG’s Mercedes unit and other automakers also have announced ventures with local partners to develop models for China that deliver more range at lower prices. 

On Wednesday, Nissan Motor Co. presented its Sylphy Zero Emission, which it said can go 338 kilometers (210 miles) on a charge. The Sylphy is based on Nissan’s Leaf, a version of which is available in China but has sold poorly due to its relatively high price. 

Automakers say they expect electrics to account for 35 to over 50 percent of their China sales by 2025.

First-quarter sales of electrics and gasoline-electric hybrids rose 154 percent over a year earlier to 143,000 units, according to the China Association of Automobile Manufacturers. That compares with sales of just under 200,000 for all of last year in the United States, the No. 2 market. 

That trend has been propelled by the ruling Communist Party’s support for the technology. The party is shifting the financial burden to automakers with sales quotas that take effect next year and require them to earn credits by selling electrics or buy them from competitors. 

That increases pressure to transform electrics into a mainstream product that competes on price and features. 

Automakers also displayed dozens of gasoline-powered models from compact sedans to luxurious SUVs. Their popularity is paying for development of electrics, which aren’t expected to become profitable for most producers until sometime in the next decade. 

China’s total sales of SUVs, sedans and minivans reached 24.7 million units last year, compared with 17.2 million for the United States. 

SUVs are the industry’s cash cow. First-quarter sales rose 11.3 percent over a year earlier to 2.6 million, or almost 45 percent of total auto sales, according to the China Association of Automobile Manufacturers. 

On Wednesday, Ford displayed its Mondeo Energi plug-in hybrid, its first electric model for China, which went on sale in March. Plans call for Ford and its luxury unit, Lincoln, to release 15 new electrified vehicles by 2025. 

GM plans to launch 10 electrics or hybrids in China from through 2020. 

VW is due to launch 15 electrics and hybrids in the next two to three years as part of a 10 billion euro ($12 billion) development plan announced in November. 

Nissan says it will roll out 20 electrified models in China over the next five years. 

New but fast-growing Chinese auto trail global rivals in traditional gasoline technology but industry analysts say the top Chinese brands are catching up in electrics, a market with no entrenched leaders. 

BYD Auto, the biggest global electric brand by number sold, debuted two hybrid SUVs and an electric concept car. 

The company, which manufactures electric buses at a California factory and exports battery-powered taxis to Europe, also displayed nine other hybrid and plug-in electric models. 

Chery Automobile Co. showed a lineup that included two electric sedans, an SUV and a hatchback, all promising 250 to 400 kilometers (150 to 250 miles) on a charge. They include futuristic features such as internet-linked navigation and smartphone-style dashboard displays. 

“Our focus is not just an EV that runs. It is excellent performance,” Chery CEO Chen Anning said in an interview ahead of the show. 

Electrics are likely to play a leading role as Chery develops plans announced last year to expand to Western Europe, said Chen. He said the company has yet to decide on a timeline. 

Chery was China’s biggest auto exporter last year, selling 108,000 gasoline-powered vehicles abroad, though mostly in developing markets such as Russia and Egypt. 

“We do have a clear intention to bring an EV product as one of our initial offerings” in Europe, Chen said. 
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