Has Facebook peaked?

My OpEd in today’s Observer:

Facebook was much in the news last week, although you may not realise that because it has been renamed Meta in the hope the bad vibes associated with its maiden name would gradually fade from public memory. (Google tried the same stunt with Alphabet and that hasn’t worked either.)

For a change, though, Facebook’s latest moment at the top of the news agenda had nothing to do with scandals and everything to do with its financial results, which were so unexpectedly bad that the shares dropped 25% at one point, taking $240bn (£177bn) off its market value, which in turn led to a 2% drop in the Nasdaq index.

Given that Facebook has hitherto been a licence to print money, so much so that at one stage (in 2019), when it was fined $5bn by the Federal Trade Commission, its shares actually went up as Wall Street registered that the ostensibly massive fine was actually the equivalent of a fleabite on an elephant.

But this time was different. Why? Three factors stood out from reports of Mark Zuckerberg’s conference call with stock market analysts: the impact of TikTok; Apple’s move to require iPhone users to consent to being tracked by advertisers; and the revelation that the hitherto unstoppable growth in the number of Facebook users has stalled…

Read on

The metaverse is dystopian – but to big tech it’s a business opportunity

This morning’s Observer column:

Once upon a time, a very long time ago – until Thursday 28 October 2021, to be precise – the term “metaverse” was known only to lexicographers and science fiction enthusiasts. And then, suddenly, it was everywhere. How come? Simply this: Mark Zuckerberg, the supreme leader of Facebook, pissed off by seeing nothing but bad news about his company in the media, announced that he was changing its name to Meta and would henceforth be devoting all his efforts – plus $10bn (£7bn) and thousands of engineers – to building a parallel universe called the metaverse.

And then, because the tech industry and the media that chronicle its doings are basically herds of mimetic sheep, the metaverse was suddenly the newest new thing. This was news to Neal Stephenson, the writer who actually invented the term in his 1992 novel, Snow Crash…

Read on

Great news for Facebook: it’s no longer the most toxic social network!

Trump has a new social media operation. Marina Hyde celebrates its arrival in her inimitable style:

For now, Facebook is only convincingly troubled by “disinformation” if it’s about itself. We don’t know what will emerge next week, but we can be almost sure how the firm will react to it. The usual MO of Facebook’s chiefs has been to deny they even did the thing they’re being accused of, until the position becomes untenable. At that point, they concede they did whatever it was on a very limited scale, until that position becomes untenable. Next up is accepting the scale was more widespread than initially indicated, but with the caveat that the practice has now come to an end, until that position is the latest to become untenable.

Clear evidence that the practice never came to an end and, in fact, only became more widespread will come with aggressive reminders that it is not and never has been technically illegal. If and when whatever-it-is has been proved to be technically illegal after all, Facebook will accept the drop-in-their-ocean fine, with blanket immunity for all senior officers, and move back to step one in the cycle. We get rinsed; they repeat.

So we’ll have to see how plucky minnow startup TRUTH Social will fare in the landscape Facebook created.

What a woman!

Zuckerberg’s total control of Facebook is half of the problem.

This morning’s Observer column:

Facebook is one of the most toxic corporations on the planet. Its toxicity has two roots. The first is its business model: intrusive and comprehensive surveillance of its users in order to compile profiles that enable advertisers to target messages at them. This business model is powered by the machine-learning algorithms that construct those profiles and determine what appears in the news feeds of the company’s 2.85 billion users. In large measure, it is the output of these algorithms that constitutes the focus of congressional anger and inquiry.

The other source of the company’s toxicity is its governance. Essentially, Facebook is a dictatorship entirely controlled by its founder, Mark Zuckerberg.

Do read the whole piece.

Teenage loneliness and the Smartphone

A sombre essay by Jonathan Haidt and Jean M. Twenge, two psychologists who have spent years studying the effect of smartphones and social media on our daily lives and mental health.

It’s been obvious for years that smartphones — and particularly social media apps — are having a devastating impact on teenagers.

This synchronized global increase in teenage loneliness suggests a global cause, and the timing is right for smartphones and social media to be major contributors. But couldn’t the timing just be coincidental? To test our hypothesis, we sought data on many global trends that might have an impact on teenage loneliness, including declines in family size, changes in G.D.P., rising income inequality and increases in unemployment, as well as more smartphone access and more hours of internet use. The results were clear: Only smartphone access and internet use increased in lock step with teenage loneliness. The other factors were unrelated or inversely correlated.

These analyses don’t prove that smartphones and social media are major causes of the increase in teenage loneliness, but they do show that several other causes are less plausible. If anyone has another explanation for the global increase in loneliness at school, we’d love to hear it.

Me too. The companies continually avoid this awkward topic on the grounds that there isn’t real causal evidence for the connection. Rather like the tobacco companies in the early days of medical concerns about lung cancer, or oil companies and evidence of climate change. See Merchants of Doubt: How a Handful of Scientists Obscured the Truth on Issues from Tobacco Smoke to Global Warming by Erik Conway and Naomi Oreskes for the grisly detail.


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Judge Throws Out Two Antitrust Cases Against Facebook

There’s been much jubilation in the tech industry as a result of US District judge James Boasberg (an Obama nominee, incidentally) summarily dismissing antitrust lawsuits brought against the company by the Federal Trade Commission and more than 40 states.

The judge eviscerated one of the federal government’s core arguments, that Facebook holds a monopoly over social networking, saying prosecutors had failed to provide enough facts to back up that claim. And he said the states had waited too long to bring their case, which centers on deals made in 2012 and 2014.

The judge said the F.T.C. could try again within 30 days with more detail, but he suggested that the agency faced steep challenges.

As it happens, I agree with the judge but draw different conclusions about the significance of the case. I really liked his succinct critique of it.

Although the Court does not agree with all of Facebook’s contentions here, it ultimately concurs that the agency’s Complaint is legally insufficient and must therefore be dismissed. The FTC has failed to plead enough facts to plausibly establish a necessary element of all of its Section 2 claims — namely, that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services. The Complaint contains nothing on that score save the naked allegation that the company has had and still has a “dominant share of that market (in excess of 60%).” Such an unsupported assertion might (barely) suffice in a Section 2 case involving a more traditional goods market, in which the Court could reasonably infer that market share was measured by revenue, units sold, or some other typical metric. But this case involves no ordinary or intuitive market. Rather, PSN services are free to use, and the exact metes and bounds of what even constitutes a PSN service — i.e., which features of a company’s mobile app or website are included in that definition and which are excluded — are hardly crystal clear. In this unusual context, the FTC’s inability to offer any indication of the metric(s) or method(s) it used to calculate Facebook’s market share renders its vague “60%-plus” assertion too speculative and conclusory to go forward. Because this defect could conceivably be overcome by re-pleading, however, the Court will dismiss only the Complaint, not the case, and will do so without prejudice to allow Plaintiff to file an amended Complaint.

What the failure of the FTC and the States’ complaint shows is that old conceptions of ‘monopoly’ don’t map accurately onto the monopolistic-like power of some tech giants — Facebook in this instance. So pursuing old-style antitrust actions on the basis of ‘monopoly’ is likely to come unstuck, especially with a judiciary that’s been conditioned by decades of Borkism. What’s needed, therefore, is lots of legislative creativity to develop conceptions of corporate power that are appropriate to the power that these corporations actually wield.

In the case of Facebook, for example, a more promising line of inquiry might be that suggested by my colleague Jennifer Cobbe — and also by Josh Simon and Dipayan Ghosh. This line of argument locates the real monopolistic power of social media companies in the algorithms that determine users’ newsfeeds, i.e. what kinds of information users are presented with. One can think of these algorithms as constituting the critical infrastructure of the public sphere. Or to put it another way: once upon a time, John D. Rockefeller & Co exerted (and abused) their monopoly control over the railroads that other oil-drillers needed to use to get their oil to market. Mark Zuckerberg plays an analogous role today — as the controller of the virtual railroad that conveys ideas and information to individual citizens. The implication is that regulation as infrastructure might be a more appropriate way of asserting democratic control.

The PR exercise that is Facebook’s ‘supreme court’

This morning’s Observer column

This board (originally talked about within Facebook as a “supreme court”) is both a manifestation of preposterous hubris on the part of what is, after all, merely a commercial company and a cunning stunt by said company to avoid taking corporate responsibility for difficult decisions. It consists of up to 40 bigwigs, allegedly carefully chosen (“six in-depth workshops and 22 round tables, attended by more than 650 people from 88 different countries”) but who look awfully like the kind of longlist that might be produced by a high-end corporate headhunter. It includes, for example, a former prime minister of Denmark, nine professors, one vice-chancellor and a former editor of the Guardian. Such eminent worthies, of course, cannot be expected to work for nothing, so, according to the New York Times, they receive at least $100,000 (£73,000) a year for a commitment of 15 hours a week.

Inspection of linguistic clues on the board’s website does not inspire confidence in its supposed collective IQ or independence…

Read on

The flight from WhatsApp

Not surprisingly, Signal has been staggering under the load of refugees from WhatsApp following Facebook’s ultimatum about sharing their data with other companies in its group. According to data from Sensor Tower Signal was downloaded 8.8m times worldwide in the week after the WhatsApp changes were first announced on January 4. Compare that with 246,000 downloads the week before and you get some idea of the step-change. I guess the tweet — “Use Signal” — from Elon Musk on January 7 probably also added a spike.

In contrast, WhatsApp downloads during the period showed the reverse pattern — 9.7m downloads in the week after the announcement, compared with 11.3m before, a 14 per cent decrease.

This isn’t a crisis for Facebook — yet. But it’s a more serious challenge than the June 2020 advertising boycott. Evidence that Zuckerberg & Co are taking it seriously comes from announcements that Facebook has cancelled the February 8 deadline in its ultimatum to users. It now says that it will instead “go to people gradually to review the policy at their own pace before new business options are available on May 15.” Ho, ho.

Signal is a very interesting outfit, incidentally, and not just because of its technology. It’s a not-for-profit organisation, for one thing. Its software is open source — which means it can be independently assessed. And it’s been created by interesting people. Brian Acton, for example, is one of the two co-founders of WhatsApp, which Facebook bought in 2014 for $19B. He pumped $50m of that into Signal, and no doubt there’s a lot more where that came from. And Moxie Marlinspike, the CEO, is not only a cryptographer but also a hacker, a shipwright, and a licensed mariner. The New Yorker had a nice profile of him a while back.

Thursday 15 October, 2020

The Sociopath: 2010

What a difference a decade makes.


Quote of the Day

”I work for a government I despise for ends I think criminal.”

  • John Maynard Keynes, 1917, in a letter to Duncan Grant.

I wonder how many officials in the US and UK governments currently feel the same way.


Musical alternative to the morning’s radio news

Hothouse Flowers – I Can See Clearly Now

https://youtu.be/Y1HRcoHGmi4


Turns out, Boris Johnson doesn’t do detail. Who knew?

John Crace, writing about yesterday’s Prime Minister’s Questions:

Starmer started with some basic detail. On 11 May Johnson had promised the country he would be guided by the science at all times. On 21 September the Sage scientists had recommended a short circuit breaker. So at what point did the prime minister decide to abandon the science and cobble together a three-tier regional system with which almost no one was happy?

Despite having had the whole morning to prepare for such an obvious question, Boris looked genuinely bemused. As if he had quite forgotten it was Wednesday and had been hoping for a lie-in. So he did what he always did. He filled dead air with dead words. When he had said he was going to follow the science, he had never intended to imply he would do so faithfully. Rather he was going to pick and choose the bits he liked. He reminded me of a builder I once used who, when I observed the kitchen floor was not level, replied that I had never specified it should be “dead level”.

Amazing to think that this clown is the Prime Minister of a major country.


U.K. Plans New Law to Undo Foreign Deals on Security Grounds

This from Bloomberg is interesting:

Boris Johnson’s government is drawing up plans for a radical new law that would give ministers power to unravel foreign investments in U.K. companies — potentially casting doubt on deals that have already been concluded — to stop hostile states gaining control over key assets.

The National Security and Investment Bill is in the final stages of drafting and could be published later this month, according to people familiar with the matter who spoke on condition of anonymity because the subject is sensitive.

It aims to cover deals in sectors such as defense and critical infrastructure, and will make provisions to protect sensitive intellectual property.

Among the most potentially controversial parts of the draft law is a proposal to allow the government to intervene retrospectively in circumstances where national security is an issue. That would mean allowing government officials to look at past takeovers and mergers where concerns have been raised.

It’s got Dominic Cummings’s fingerprints all over it. Especially the retrospective bit. I’m willing to bet that it’ll affect the proposed Nvidia takeover of ARM.


Kara Swisher on Zuckerberg, the slow learner about Holocaust denial

Good column, in which she reprises her famous interview with Zuckerberg and thinks about what questions she would like to ask him now.

Since that interview with me two years ago, Mr. Zuckerberg has talked to a lot of reporters, but has declined to do another interview with me, although I have asked time and again. That’s a shame, because I have a lot more questions for him. Such as:

Why tell everyone that you do not want to be an arbiter of truth after you purposefully built a platform that absolutely required an arbiter of truth to function properly?

Why did you never build firebreaks that could have dampened the dangerous fires of disinformation that you have let burn out of control?

Were you motivated by a need to expand the business without limit or by a real belief that human beings would behave if you let them do anything they wanted?

And most important, now that we agree that Holocaust deniers mean to lie, can we also agree that we need to remake the nation and also Facebook so that we can have a real dialogue built on community? You always said that was your goal, right?

Or, after all this time and pain, is that completely idiotic?

It’s idiotic to expect anything good from this guy.


Nihilistic password security questions

Lovely piece of satire by Soheil Rezayazdi on McSweeney’s. Here’s a sample:

What is the name of your least favorite child?

In what year did you abandon your dreams?

What is the maiden name of your father’s mistress?

At what age did your childhood pet run away?

What was the name of your favorite unpaid internship?

In what city did you first experience ennui?

What is your ex-wife’s newest last name?

What sports team do you fetishize to avoid meaningful discussion with others?

Lots more, but you get the point.


First documented death from a ransomware attack

From Bruce Schneier’s blog:

A Düsseldorf woman died when a ransomware attack against a hospital forced her to be taken to a different hospital in another city.

I think this is the first documented case of a cyberattack causing a fatality. UK hospitals had to redirect patients during the 2017 WannaCry ransomware attack, but there were no documented fatalities from that event.

The police are treating this as a homicide.


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Tuesday 13 October, 2020


Quote of the Day

”One man is as good as another until he has written a book.”

  • Benjamin Jowett

Musical replacement for the morning’s radio news

Leo Kottke: Snorkel

Link


Boris Johnson’s latest Covid strategy: no hope and no end in sight

John Crace on Boris Johnson’s day in Parliament:

Johnson looked knackered before he even started. His complexion even more pallid than usual and his eyes mere pinpricks. For a moment it looked as if the narcissist had been confronted with his own sense of futility. A situation that he couldn’t bend to his will, no matter how delusional the thought process. He is cornered by hubris: a man hating every second of his life but condemned to experience its unforgiving horror. Not even the health secretary could be bothered to attend to watch this latest meltdown.

“We have taken a balanced approach,” Johnson began. As in he was too slow to react back in March with the result that the government has one of the world’s highest death tolls. As in he did next to nothing during the summer when we had a chance to prepare for autumn. As in he actively encouraged people to go back to work for weeks before switching to advise them against it. As in unlocking the north at the same time as the south, even though infection rates in the north remained higher. That kind of balanced.

What Boris had to offer now was a new three-tier approach. Bad, very bad and very, very bad. Bad would apply to most of the country and would involve people doing pretty much what they had been doing for the last couple of months. Rule of six and all that.

Very bad would mean that those areas that had already been under the more stringent lockdown restrictions would remain so, though if you wanted to meet a few friends outdoors in the garden for a beer to let each other know how depressed you were feeling you now could. And very, very bad meant that you could only see your mates if you happened to be in the pub at the same time and order five Cornish pasties to go with your bottle of scotch.


NYT ‘The Daily’ podcast’s view on the prospects for the vaccine

From the transcript of the Wednesday, October 7, edition.

Presenter: As update on the state of the coronavirus in the U.S. I check back in with Times science reporter, Donald G. McNeil, Jr.

Donald, you recently sent me an email that pretty much stopped me in my tracks. Because in it, you said that you were optimistic about the course of the pandemic. And that is not a word that I associate with either you or the pandemic. And it immediately made me think that we needed to talk.

McNeil: I am short term, right now — fall and winter — pessimistic. I think things are going to get worse.

But since I’ve been saying since April or so that this epidemic is not going to be over by Easter, this epidemic is not going to be over by fall, and that, you know, the record for making the vaccine is four years, I now have new optimism about how fast I expect vaccines and other interventions to get here, and how quickly that will bring the pandemic to an end in the United States…

Interesting. McNeil is very well informed. And he was ahead of the curve in the early days. Basically, he thinks there may be workable vaccines (plural) by the Spring on 2021 — and that people will be willing to take them.

Presenter: In our conversations with colleagues like Jan Hoffman, we have established that there is a considerable amount of skepticism around vaccines in general — and especially this coming set of vaccines — because of how much politics has surrounded them.

McNeil: Yeah. And I agree with that skepticism. I mean, if a vaccine is approved before Election Day, and it is approved by only one man — I’m Donald J. Trump and I approve this vaccine — then I’m a skeptic and I’m not going to take it. But when I see vaccines that are okayed by Tony Fauci and Paul Offit and Francis Collins and Peter Hotez and all the vaccine experts that you often see quoted on television, then I’m going to be one of the first in line to get it.

And what will probably happen, I think, is that a lot of people will be skeptical. And then they’ll look around at their friends and neighbors who take the vaccine. And assuming nothing goes wrong, and that’s an assumption, but assuming nothing goes wrong, they’ll go, huh. I can avoid this vaccine for me and my kids that I’m somewhat afraid of. And that means I have to homeschool my kids forever. Never go to a movie. Never get on an airplane. Never eat in a restaurant again. Or I can accept a vaccine. I think I’ll take the vaccine.

He’s probably right.


My new keyboard

I have arthritis in my hands, which is not good news for someone whose job involves writing. What it mostly means, though, is that I’m very sensitive to keyboards. A few weeks ago I decided that I’d had enough of Apple’s latest ‘Magic’ keyboard, and so looked for an alternative. Someone suggested I look at the Logitech MX Keys wireless keyboard, so I bought one. And it’s just terrific. More bulky and clunkier than its Apple predecessor, of course, but quite a joy to use. Highly recommended for writers with delicate fingers.


Facebook to ban content that denies or distorts the Holocaust

From a Guardian report:

Facebook says it is updating its hate speech policy to ban content that denies or distorts the Holocaust.

The decision comes two years after its chief executive, Mark Zuckerberg, said in an interview with the tech website Recode said that while he found Holocaust denial deeply offensive, he did not believe Facebook should delete such content.

“I’ve struggled with the tension between standing for free expression and the harm caused by minimising or denying the horror of the Holocaust,” said Zuckerberg, who is Jewish, in a Facebook post on Monday.

My own thinking has evolved as I’ve seen data showing an increase in antisemitic violence, as have our wider policies on hate speech,” he said.

The social media company said that, starting later this year, it would also direct people searching for terms associated with the Holocaust or its denial to credible information away from the platform.

Nice to know that his ‘thinking’ has “evolved”. I often wonder what exactly is wrong with this guy.


Is science being set up to take the blame?

Ross Anderson, whom God preserve, was puzzled by the failure to protect residents in care homes, and so decided to read the minutes of the SAGE committee whose advice the Prime Minister was supposedly following.

Here’s an excerpt from his terrific blog post reporting what he found.

The big question, though, is why nobody thought of protecting people in care homes. The answer seems to be that SAGE dismissed the problem early on as “too hard” or “not our problem”. On March 5th they note that social distancing for over-65s could save a lot of lives and would be most effective for those living independently: but it would be “a challenge to implement this measure in communal settings such as care homes”. They appear more concerned that “Many of the proposed measures will be easier to implement for those on higher incomes” and the focus is on getting PHE to draft guidance. (This is the meeting at which Dominic Cummings makes his first appearance, so he cannot dump all the blame on the scientists.)

On March 10th, they decide to cocoon the over-70s and medically vulnerable, and advise 7/14 days isolation for people with symptoms / their families. They advise that “special policy consideration be given to care homes and various types of retirement communities” – but note the passive voice, and this doesn’t appear on the list of actions and trigger points on the following page. It’s still somebody else’s problem.

By March 13th, some care homes had already banned visitors without waiting for government advice to do so, and on the same day SAGE decided that the goal was to enable the NHS to meet demand. Two days later, the NHS started clearing 30,000 beds, sending hundreds of infected patients into care homes and causing thousands of deaths.

The next month is consumed with panic about whether the NHS will be swamped by the peak, and it’s only when this subsides that we read on April 14 that more and more cases are acquired in hospital, which have been masking the decline in the community, with a note “Care homes remain a concern. There are less data available from these” – but only as item 10 on the situation update. At last there’s a relevant action: to widen viral sampling in hospitals and care homes. However the committee’s effort is now tied up with the controversy about whether to advise public mask wearing. (It still resists expert advice on this as it doesn’t want to admit that its initial position was wrong.) The meetings on April 16 and 21 are also consumed by the mask debate (on which the early members of the committee, who blocked mask wearing to protect PPE supplies to the NHS, prevailed over the newer members, leaving the UK an outlier).

And Ross’s conclusion?

My experience of university committees makes this all just too painfully familiar. What’s failed here is not the science, but the process of government. The committee started out full of NHS medics and bureaucrats, and lots of theoreticians – modelers aplenty – but there’s still nobody from the care sector. The members focus on the NHS they know and stay in their comfort zone. And now, we might ask, is there anybody with operational experience relevant to running a large testing and tracing programme? Or would it be a waste of time to try to create such a competence in the SAGE environment?

Terrific post.


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