Tech Brew Ride Home - Mon. 09/27 – Instagram Kids On “Pause”

Starting point is 00:00:00 On April 4th, 2023, around 2 in the morning, a man was found stabbed multiple times on a sidewalk in downtown San Francisco. Hey, who did this to you? What happened next turned the story into a political firestorm. Reports have identified the victim as Bob Lee, the founder of Cash App. From Bloomberg Podcasts, this is Foundering, the Killing of Bob Lee, beginning April 16. Startup founders, startup workers. If you haven't listened to the Ride Home Fund announcement episode that I dropped on Sunday, please listen to that. It's only about five minutes, but it's entirely for you because I want you to send me your pitch decks. And everyone else, listen for how you too can

Starting point is 00:00:47 participate in the investment process, even if you're not an LP in the fund. Just give a quick listen to the episode right before this one. Welcome to the TechMeme Right Home for Monday, September 27th, 2021. I'm Brian McCullough. Today, Adam Masseri pumps the brakes on Instagram kids, but still says it's a good idea. Tesla is letting people into the full self-driving beta, and some folks think that's a bad idea. Apple knows about that Apple Watch bug. What if the factories are the next worries in China? And Cloudflare wants to tackle email now.

Starting point is 00:01:24 Here's what you miss today in the world of tech. Well, Instagram head Adam Massari said in a blog post this morning that Instagram is pausing work on Instagram kids, after criticism from parents, experts, regulators, policymakers, and others. And of course, after all those Wall Street Journal stories, quoting Maseri from the Instagram blog. We started this project to address an important problem seen across our industry. Kids are getting phones younger and younger, misrepresenting their age, and downloading apps that are meant for those 13 or older. We firmly believe that it's better for parents to have the option to give their children

Starting point is 00:02:02 access to a version of Instagram that is designed for them, where parents can supervise and control their experience, then relying on an app's ability to verify the age of kids who are too young to have an ID. While we stand by the need to develop this experience, we've decided to pause this project. This will give us time to work with parents, experts, policymakers, and regulators to listen to their concerns and to demonstrate the value and importance of this project for younger teens online today, end quote. The post went on to make the argument literally that the kids are already online, so all Instagram wants to do is make it safer for them to build out better parental supervision and the like.

Starting point is 00:02:38 Quoting The Verge. In a blog post and series of accompanying tweets, Mosseri blames the media and critics for misunderstanding the purpose of the app. It was never meant for younger kids but for tweens, age 10 to 12, he writes. In a separate tweet, he adds that news of the project leaked way before we knew what it would be. People feared the worst, and we had few answers at that stage. It's clear we need to take more time on this, end quote. In his blog post, Moseeri notes,

Starting point is 00:03:04 that the Wall Street Journal's reporting, quote, raised a lot of questions for people, end quote, and says such criticism has led Instagram to introduce a number of anti-bullying features, as well as exploring features that might encourage readers to take a break from the app. Parts of the Wall Street Journal's reporting that Instagram and Maseri have ignored include the company's own researchers noting that users often feel addicted to the app. Mosseri notes on Twitter that critics will see Instagram pausing development of the kids app, quote, as a concession that the project is a bad idea, end quote, He's adamant. This is incorrect, adding, quote,

Starting point is 00:03:37 I have to believe parents would prefer the option for their children to use an age-appropriate version of Instagram that gives them oversight than the alternative. But I'm not here to downplay their concerns. We have to get this right, end quote. Meanwhile, in a separate blog post over the weekend, Facebook disputed the Wall Street Journal's Instagram story, claiming internal research shows Instagram made difficult times better for teen girls on 11 of 12 well-being issues. quoting Bloomberg. Facebook said that while those dealing with body image issues felt Instagram made it worse for them, users coping with loneliness, anxiety, sadness, and eating issues said the app helped in their difficult moments. Quote, it is simply not accurate that this research demonstrates

Starting point is 00:04:19 Instagram is toxic for teen girls. Pratiti Ray Chowdhury, Facebook's head of research said in a post, quote, the majority of teenage girls who experienced body image issues still reported Instagram either made it better or had no impact, end quote. Facebook said that research had its limitations because it relied on input from just 40 teenagers as it sought the most negative perceptions of Instagram, quote, we invest in this research to proactively identify where we can improve, which is why the worst possible results are highlighted in the internal slides, it added, and quote.

Starting point is 00:04:52 As Dar O'Basandro tweeted, I'd love to see corresponding research from Twitter, TikTok, or Reddit, from users as to if they felt better, worse, or news, neutral about their lives after using these services. Without that baseline, it's hard to reason about if these results are typical or unusual, end quote. Over the weekend, Tesla began letting drivers request its full self-driving beta, prompting criticism from regulators and safety advocates, quoting the Washington Post. It's the first time the company has let typical owners upgrade to the software it terms self-driving, although the name itself is in exaggeration by industry and

Starting point is 00:05:32 regulatory standards. Tesla chief executive Elon Musk has said owners would be able to request this weekend the upgraded suite of advanced driver assistance features, which Tesla says is a beta, although they wouldn't receive the capabilities right away. Owners will have to agree to let Tesla monitor their driving behavior through the company insurance calculator. Tesla issued a detailed guide specifying the criteria under which drivers would be graded. If their driving is deemed to be good over a seven-day period, Musk said on Twitter, quote, beta access will be granted, end quote. It's the latest twist in a saga that has regulators, safety advocates, and relatives of Tesla crash victims up in arms because of the potential for chaos as the technology is unleashed on real world roads. Until now, roughly 2,000 beta testers have had access to the technology. This weekend's release would make it available to those who have purchased the now $10,000 software upgrade and those who have purchased a subscription from Tesla for about $100 to $200 per month if they can first pass Tesla's safety monitoring. As recently as July, Musk said the technology was a debatable proposition, his words, arguing that, quote,

Starting point is 00:06:38 we need to make full self-driving work in order for it to be a compelling value proposition, end quote. Tesla and the NHTSA did not immediately respond to requests for comment. Tesla has repeatedly argued that autopilot is safer than cars being driven manually when the modes are compared using Tesla data and information from the NHTSA. Musk has said that, quote, autopilot is unequivocal. equivocally safer, end quote, than typical cars. The data is not directly comparable, however, because autopilot is supposed to be activated on certain types of roads in conditions where it can function properly, end quote. Apple says it will fix a bug preventing some iPhone 13 users from using the unlock with Apple Watch feature in an upcoming software update, quoting 9 to 5 Mac.

Starting point is 00:07:27 In a support document, Apple said affected users can turn off unlock with Apple Watch and use their passcode to unlock their iPhone 13 until the software update is released. The feature, which is designed to let you unlock your iPhone while wearing a mask or ski goggles, can be toggled off in the Settings app under Face ID and passcode. Apple did not specify which software update will include the fix, nor did it provide a time frame. The first beta of iOS 15.1 was released five days ago, but Apple could also choose to release a minor iOS 15.0.1 update with bug fixes. As we reported affected users, might see an unable to communicate with Apple Watch error message if they try to unlock their iPhone 13 while wearing a face mask, or they might not be able to set up unlock with Apple Watch,

Starting point is 00:08:12 end quote. Apple suppliers like ESON precision engineering, unimicron technology, and Concraft Holding have halted production until Friday as China tightens its energy policies. So it's not just video games, it's not just local tech unicorns anymore. It might be wise to steer clear of China, no matter how you're connected to them, at least for the foreseeable future. Quoting Reuters. Several Apple and Tesla suppliers have suspended production at some Chinese factories for a number of days to comply with tighter energy consumption policies, putting supply chains at risk in the peak season for electronics goods. Two major Taiwanese chipmakers, however, said their China facilities are operating as normal. The development comes as tight coal

Starting point is 00:09:03 supplies in China and toughening emissions standards have triggered a contraction in heavy industry in several regions, dragging on the country's economic growth rate, analysts have said. Apple supplier Uni-Micron technology late on Sunday said, three of its China subsidiary stopped production from midday on September 26th until midnight on September 30th to, quote, comply with the local government's electricity limiting policy, end quote. The Taiwanese maker of printed circuit board said it did not expect significant impacts as other plants would make up production.

Starting point is 00:09:33 ESON Precision, an affiliate of Taiwan's Honai Precision Industry, in a statement said it's suspended production from Sunday until Friday at facilities in the Chinese city of Kunchan, end quote. So, you know, we have been hearing for a couple weeks now warnings about China's real estate sector, but this was news to me, quoting Stephen Stapzinski on Twitter, quote, China's power crunch may be its next economic shock. The worsening power crunch in China reflects tight energy supply. globally. The post-COVID recovery has boosted power demand just as lower investment by miners and drillers constrains fuel output. China's energy crisis is partially of its own making as President

Starting point is 00:10:14 Xi Jinping tries to ensure blue skies at the Winter Olympics in Beijing next February and show the international community he's serious about decarbonizing the economy. The impact on China's economy is already emerging. Aluminum output was curtailed due to pressure from Beijing. Soybean crushers were ordered to shut this week in Tianjin. In Jiangsu, steel mills have closed and some cities are turning off streetlights. One of the underlying issues in China is that a record-breaking surge in coal prices makes it unprofitable for many power plants to operate. So why produce power if you're going to lose money? Earlier this month, the Beijing Electric Power Industry Association asked authorities for permission to raise electricity rates as coal prices skyrocket. Last month,

Starting point is 00:10:56 11 coal-fired power companies within the region asked for relief, end quote. So my assumption all along has been the Chinese crackdown on gaming and lending and tech was all about channeling national efforts toward an industrial sector that Chinese leaders believe is more important strategically for their great power aspirations. But if the lights go out and the factories shut down... And another one of my assumptions all along has been that if the app store gets cracked open, then that sort of sets a precedent that could put a lot of economic and economic and and marketplace assumptions in play. Could this story be that in sort of a butterfly flapping its wings

Starting point is 00:11:42 sort of case, or is this just competition in the cloud space? Sources are telling CNBC that Google Cloud Platform plans to slash its revenue share from 20% to 3% for third-party software on its cloud marketplace matching Microsoft's recent cut. Quote, it's the Cloud Group's latest effort to become more competitive since Thomas Currian joined as CEO in 2019, after a career at Orop. Google, which trails Amazon Web Services and Microsoft Azure and cloud infrastructure, is trying to attract independent software makers to sell their products on Google's cloud. Our goal is to provide partners with the best platform and most competitive incentives in the industry. A Google spokesperson told CNBC in an email, we can confirm that a change to our marketplace

Starting point is 00:12:25 fee structure is in the works and we'll have more to share on this soon, end quote. Big tech companies in recent months have been decreasing the amount of money they retain on their platforms, whether it's for consumer apps or business products. Some of the pressure is related to competition, while regulatory and legal concerns are also mounting. In July, Google decreased the percentage it keeps from purchases through its Play Store, where consumers buy apps to 15% from 30% for the first $1 million in revenue a developer earns each year. Also this year, Apple provided the same reduction for app developers with under $1 million in annual sales. As part of a lawsuit filed by Epic Games, a judge in California ruled this month that Apple will no longer be allowed to

Starting point is 00:13:03 prohibit developers from providing links or other communications that direct users away from Apple in-app purchasing. Meanwhile, in August, Microsoft lowered the percentage of sales it keeps from game purchases from its Windows App Store to 12% from 30%. On Google's Cloud Marketplace, customers can find products from prominent software companies including Confluent, Elastic, MongoDB, and Twilio. But it lacks products from companies such as Accenture, Equifax, Fax Set, Freshworks, Hewlett-Packard Enterprise and Xilinks, which all have listings in the AWS marketplace. AWS, the market leader, charges a listing fee of about 5% according to an estimate earlier this year from analysts at UBS.

Starting point is 00:13:44 The AWS marketplace generates about $1 billion to $2 billion in annual revenue, they said. Amazon declined to comment. Microsoft said in July it had cut its rate from 20% to 3%, end quote. And finally today, Cloudflare has found great success protecting your websites. now they want to help you with your email. Cloudflare this morning announced email routing and email security DNS wizard built on top of Gmail, Outlook, Yahoo, and others to prevent fishing, spoofing, and more, quoting Wired. The features, which the company will offer for free, are mainly geared towards small businesses and corporate customers, and they're made for use

Starting point is 00:14:27 on top of any email hosting a customer already has, whether it's provided by Google's Gmail, Microsoft 365, Yahoo, or even relics like AOL. Cloudflare CEO Matthew Prince says that from its founding in 2009, the company very intentionally avoided going anywhere near the thorny problem of email. But he adds that email security issues are unrelenting, so it has become necessary. I think what I had assumed is that hosting providers like Google and Microsoft and Yahoo were going to solve this issue, so we weren't sure there was anything for us to do in the space, Prince says. But what's become clear over the course of the last two years is that email security

Starting point is 00:15:05 is still not a solved issue, end quote. On Monday, the company is launching two products, Cloudflare email routing and email security DNS wizard. The tools let customers place Cloudflare in front of their email hosting provider, essentially allowing Cloudflare to receive and process emails before sending them through to the Microsofts and Googles of the world. This is somewhat similar to Cloudflare's longstanding role as a content delivery network for websites in which the company is a proxy that can serve data or catch malicious activity as web traffic passes through. Cloudflare email routing makes it possible for individuals or organizations to manage an entire custom email domain like at coolbusiness.com from a single

Starting point is 00:15:43 consumer email account such as a personal Gmail address. The tool lets you consolidate many addresses, boss at coolbusiness.com or help at coolbusiness.com say so they all forward to a single inbox. This way, small businesses in particular, can get the benefits of a dedicated custom email domain without having to manage a whole separate platform. The second tool, Security DNS Wizard, aims to make two email security features accessible for Cloudflare customers and easy to use. Sender policy framework or SPF and domain keys identified mail, DKIM, are two tools that are essentially a combination of caller ID and screening schemes for email. They aim to reduce email address spoofing by setting up public records that

Starting point is 00:16:27 must match an email sender's information for the message to go through. This significantly reduces how easy it is for attackers to say send an email to employees that really looks like it comes from cool business CEO. SPF and DKIM have been around for more than a decade, but they aren't ubiquitous because they are difficult to set up without mistakes that can result in problems like legitimate emails getting lost. Cloudflare's goal with email security DNS Wizard is to make it easy for users to set up one or the other protection without any flubs. Ultimately, Cloudflare's, Flare plans to roll out a more comprehensive suite of services called Advanced Email Security Suite that will incorporate these two tools plus others.

Starting point is 00:17:04 These initial offerings allow the company to get email flowing through its network, Prince says, so that it can study threats and patterns on a large scale. He adds that all Cloudflare email security products are carefully designed to leave crucial indicators intact for providers like Microsoft and Google. This way the tools aren't disrupting the important anti-spam and anti-abuse features that those services already have in place. And the goal is for existing Cloudflare offerings like browser isolation to work in tandem with the new email security features, even when customers do click a bad link, end quote. That's all for today. Talk to you tomorrow.

Tech Brew Ride Home - Mon. 09/27 – Instagram Kids On “Pause”

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