Monthly Archives: January 2021

News: Despite PR storm, Pinduoduo stock and downloads stay robust

Pinduoduo, a rapidly growing Chinese e-commerce company, is weathering its PR storm after the death of an employee sparked criticism against the firm’s grueling working hours. The employee, 21 years old, collapsed on her way home from work on a late night before New Year. The cause of her death has not been disclosed but

Pinduoduo, a rapidly growing Chinese e-commerce company, is weathering its PR storm after the death of an employee sparked criticism against the firm’s grueling working hours.

The employee, 21 years old, collapsed on her way home from work on a late night before New Year. The cause of her death has not been disclosed but internet users speculated that she had died from exhaustion.

Posts with the hashtag #PinduoduoEmployeeSuddenDeath have accumulated 300 million views on the Chinese microblogging platform Weibo. Separately, another Pinduoduo employee committed suicide on January 9 by jumping from his 27th-floor apartment. The local labor authorities are reported to be reviewing working conditions at Shanghai-based Pinduoduo.

On Sunday, a former Pinduoduo employee spoke out against the firm’s stressful work culture in a video that went viral, adding to the public outcry against Alibaba’s biggest rival. He alleged that employees at Pinduoduo’s headquarters are required to work at least 300 hours a month (about 75 hours a week), whereas staff in the newly established grocery delivery department have a 380-hour minimum. The employee who fell on her way home worked on Pinduoduo’s grocery business in the Western province of Xinjiang.

People with knowledge told TechCrunch that employees working on certain projects at Pinduoduo might work over 300 hours a month, though the hours aren’t mandatory. Companywide, staff are required to work from 11 AM to 8 PM.

Pinduoduo cannot be immediately be reached for comment.

Long working hours aren’t unique to Pinduoduo in China. The string of incidents is reviving the debate around “996”, a term that denotes employees working from 9 AM to 9 PM, six days a week, though it can refer to any other form of demanding work regime in China’s cutthroat internet industry.

Despite the public backlash and calls to boycott Pinduoduo, the company’s market position appears to remain firm. Its app downloads have remained stable since the first employee incident two weeks ago, with some days even seeing slight growth in installs, according to data analytics provider Jiguang. As of January 8, Pinduoduo had nearly 650 million installs.

Its shares, traded in New York, climbed from $144 on December 28 to $187 on January 5 and dropped slightly to $174 on January 11. A few venture capital investors of Pinduoduo contacted by TechCrunch declined to comment for this story.

The figures could be telling. Despite its efforts to attract more users in China’s wealthier cities, a substantial number of Pinduoduo users live in China’s low-tier cities and rural towns. The “996” culture of the megacity-based tech giants may be remote for them, while the deals on Pinduoduo, the e-commerce app famous for its “dirt cheap” goods, are tangible.

News: Checkout.com raises $450 million and reaches $15 billion valuation

Payments company Checkout.com is raising once again. The company has closed a $450 million Series C round with Tiger Global Management leading the round — Greenoaks Capital and all existing investors are also participating. If you’re not familiar with the company, Checkout.com wants to build a one-stop shop for all things related to payments, such

Payments company Checkout.com is raising once again. The company has closed a $450 million Series C round with Tiger Global Management leading the round — Greenoaks Capital and all existing investors are also participating.

If you’re not familiar with the company, Checkout.com wants to build a one-stop shop for all things related to payments, such as accepting transactions, processing them and detecting fraud. It focuses on large merchants and tries to make its product as customizable as possible so that you integrate it as an infrastructure partner in your product.

The company’s fundraising story in particular is jaw-dropping. The startup was founded in 2012 in London. At first, it grew slowly and methodically. Every time it would generate a bit of revenue, it would hire more people. “We can hire one employee this month. Now we can hire two employees this month,” founder and CEO Guillaume Pousaz said at TechCrunch Disrupt when thinking about the early days of the company.

But Checkout.com kept growing and growing until it raised one of the biggest Series A rounds ever for a European company — $230 million at a $2 billion valuation. Just a year later, Checkout.com added $150 million in funding at a $5.5 valuation.

Checkout.com is now valued at $15 billion based on today’s funding round. According to the startup, it is now the fourth largest fintech company globally.

Checkout.com had 440 employees in January 2020. It finished 2020 with 940 employees. And this year, the company plans to hire an additional 700 people.

While Checkout.com didn’t actually need to raise to stay alive, Pousaz says VC firms are a form of validation. Suddenly, you can talk with big prospects if you’re backed by Insight, DST, Coatue, Tiger Global Management, etc.

And yet, the company needs a lot of money on its bank account to expand to more countries. “Today, we process billions every week,” Pousaz told me in December. “And when you process over a billion euros per week, your cash flow on your bank account increases significantly. So you need to be well capitalized for regulators.”

Technically, there isn’t a single bank account that holds the company’s cash. Checkout.com is regulated in the U.K., but also in France, Brazil, Singapore, Hong Kong, etc. And the company is working on adding India, the Philippines. And it turns out you need cash on your balance sheet in the Philippines if you want to get a license from the local regulator — it doesn’t matter if you have a ton of money sitting in your bank account in London. That’s why raising capital can be helpful.

But why do investors want to hand over more and more money? “At any point you have a lot of visibility on what your next year is going to look like,” Pousaz told me. “It’s something that investors like because you can show them your pipeline and all your customers in your pipeline. If you forecast on the pipeline, it gives you a good idea of how much you’re going to generate in the coming year.

“For instance, I could tell you right now that we’ll grow by at least 80% in 2021,” he added. And that’s only based on clients who are currently in the process of integrating Checkout.com. The company already tripled its payment processing volume in 2020 compared to 2019.

In many ways, Checkout.com tries to forecast like a public company. It isn’t focused on runway as it is EBITDA profitable. Instead, it tries to reinvest a lot of its revenue in the company. “We don’t generate $50 million in EBITDA, far from it. But we generate double-digit million dollars,” Pousaz told me.

With today’s funding round, the company will open two new offices in the U.S. In addition to San Francisco, Checkout.com will have offices in New York and Denver.

News: Curve says closing its new $95M Series C funding caused the delay on accounts filing

Curve, the London-based fintech that combines multiple cards and accounts into one smart card and an app, has secured a Series C finding round of $95 million. The financing was led by IDC Ventures, Fuel Venture Capital and Vulcan Capital (the investment arm of the estate of Microsoft co-founder and philanthropist Paul G. Allen), with

Curve, the London-based fintech that combines multiple cards and accounts into one smart card and an app, has secured a Series C finding round of $95 million. The financing was led by IDC Ventures, Fuel Venture Capital and Vulcan Capital (the investment arm of the estate of Microsoft co-founder and philanthropist Paul G. Allen), with participation from OneMain Financial, the US personal finance company, and Novum Capital. Several previous investors also participated. The fundraise brings the total investment in Curve to almost $175 million. Curve says it plans to use the funds to expand internationally, including to the US, and to deepen its European reach. It will also be pushing its Curve Credit product. 

The startup is now claiming 2 million customers and now covers Apple Pay, Samsung Pay and Google Pay in 31 European markets. In December, Curve created a JV with Plaid to bring open banking to the UK, allowing users to connect and see their bank accounts in one place.  It also now has a subsidiary in Vilnius, Lithuania, in order to serve its EU-based following Brexit, and partnered with Samsung for its Pay Card.

However, it hasn’t all been plain sailing. Its ‘Go Back in Time’ feature which can roll-back purchase 14 to 90 days, has come under fire for potentially allowing customers to fall into a debt spiral. 

Speaking to TechCrunch, Shachar Bialick, founder and CEO of Curve, said: “We tried to remove the friction customers have at the checkout. For instance, you might be out and not have an internet connection, or you want to switch the card to be charged, so you can pay, and then later go back in time and change the accounts that were used. And then what transpired is that customers were using this feature because they wanted to free up cash in their checking account during COVID times. In March, many of our customers asked us to be able to ‘go back in time’ from the debit cards to their credit cards for transactions they’ve made in January and in December, 2019, and because they need to free more cash in their checking account.” He said it’s also led to a new product allowing customers to split payments into installments.

Curve also came under fire this month for failing to file its accounts with Companies House in London. Bialick said: “We missed the filing and the reason for that is because we had a very tight fundraising and we have limited resources so we had to prioritize it over something else. But we’re already in the process of submitting [the accounts] this week.”

Bobby Aitkenhead, Managing Partner of IDC Ventures, said: “Curve’s pioneering approach to finance is more necessary than ever as we accelerate globally to a digital-first world.”

Rick Roberts, from Vulcan Capital, said: “Curve’s model is redefining the future of banking by bringing diverse financial products and solutions together into one digital wallet, for the benefit of banks and customers alike. Their friction-free offering is coming at the ideal time for American consumers, who are looking for safer payment options and greater financial control in the wake of the pandemic.”

News: Zipmex, which aspires to build the Asia Pacific region’s largest digital assets exchange, raises $6 million led by Jump Capital

Zipmex, a digital assets exchange headquartered in Singapore, announced today it has raised $6 million in funding led by Jump Capital. The startup, which plans to become a digital assets bank, says the round exceeded its initial target of $4 million. Along with earlier funding, it brings the total Zipmex has raised so far to

Zipmex, a digital assets exchange headquartered in Singapore, announced today it has raised $6 million in funding led by Jump Capital. The startup, which plans to become a digital assets bank, says the round exceeded its initial target of $4 million. Along with earlier funding, it brings the total Zipmex has raised so far to $10.9 million.

The exchange is regulated in Singapore, Australia and Indonesia, and licensed in Thailand. It focuses on investors new to cryptocurrency with educational features, as well as high net-worth individuals, and says it has transacted over $600 million in gross transaction volume since launching at the end of 2019.

The funding will be used on hiring and to add more product offerings. In addition to its cryptocurrency exchange, Zipmex’s services also include ZipUp, its interest-bearing accounts, and its own ERC-20 token ZMT.

Zipmex’s goal is to become the largest digital exchange in the Asia Pacific, where interest in cryptocurrency investing and blockchain technology is increasing quickly. For example, DBG Group Holdings, Southeast Asia’s largest lender, recently launched a crypto exchange, though it is currently open only to professional investors.

But Zipmex is also up against a roster of competitors, including regional exchanges like BitKub in Thailand and Swyftx in Australia, as well as players like Luno, Coinbase and Binance which are targeting growth in the Asia Pacific region.

Zipmex chief executive officer Marcus Lim said the company’s ambition to become a digital assets bank sets it apart from other exchanges. “We currently offer customers to invest and earn interest on their digital assets,” he told TechCrunch. “In the future, we are planning to roll out payments and lending and the investment into securitized tokens.”

Other cryptocurrency startups that Jump Capital, an American venture capital firm, has invested in include BitGo and TradingView. Its parent company, trading firm Jump Trading, powers Robinhood’s crypto trades.

News: Amazon is removing products promoting the QAnon conspiracy

Amazon has begun the process of removing QAnon-related products from its platform. A spokesperson for the company said that the process may take a few days. Any sellers that attempt to evade the company’s systems and list products will be subject to action, including a blanket selling ban across Amazon stores. News of the ban was

Amazon has begun the process of removing QAnon-related products from its platform.

A spokesperson for the company said that the process may take a few days. Any sellers that attempt to evade the company’s systems and list products will be subject to action, including a blanket selling ban across Amazon stores.

News of the ban was first reported by The New York Times.

The company is shutting down the nation’s newest favorite conspiracy theory by removing products sold by QAnon adherents from its platform after supporters were prominently on display at the riot in the nation’s Capitol last week.

Amazon’s ban of Q-related products follows the company’s decision to remove Parler from its web servers and cloud services platform.

The ban applies to any self-published books that promote QAnon or any clothing, posters, stickers, or other merchandise related to the Q conspiracy theory.

Amazon has policies that prohibit products that “promote, incite, or glorify hate or violence toward any person or group,” the company said.

A cursory search of the company’s platform on Monday revealed that the ban isn’t being applied to all of the Q-related products for sale.

Seven pages of Q-related products were surfaced under the search for “WWG1WGA” an acronym for the Q-related phrase, “Where we go one, we go all.”

The widely discredited Q conspiracy theory was born from a stew of different conspiracy theories that emerged from the 4chan message boards back in 2017.

Since its emergence, the conspiracy theory has grabbed the attention of conservative activists, and its supporters were highly visible among the group of rioters that stormed the Capitol building last week — even as at least one Q-believer joined Congress the same week.

Amazon’s decision to ban the sale of Q-related goods comes many, many, many years after the movement was first linked to violence, as TechCrunch previously reported.

Criminal acts committed by believers have included the fatal shooting a mob boss in Staten Island and blocking the Hoover Dam bridge in an armed standoff.

The conspiracy’s followers have also interfered with legitimate child safety efforts by hijacking the hashtag #savethechildren, and exporting their extreme ideas into mainstream conversation under the guise of helping children. Facebook, which previously banned QAnonlimited the hashtag’s reach in late 2020 because of the interference.

News: Sony reveals more details on its secretive Vision-S sedan

Sony’s Vision-S prototype sedan, one of the biggest surprises at CES last year, didn’t fade away after the tech trade show ended. The Vision-S is back in a series of new videos released by Sony during 2021 CES, which kicked off Monday. Two videos show the Vision-S prototype driving on a private track and then

Sony’s Vision-S prototype sedan, one of the biggest surprises at CES last year, didn’t fade away after the tech trade show ended.

The Vision-S is back in a series of new videos released by Sony during 2021 CES, which kicked off Monday. Two videos show the Vision-S prototype driving on a private track and then public roads in Austria. But it’s a third, longer video (included below) that sheds more light on how Sony designed and developed the prototype, its partners and some of the tech that’s under the hood.

Sony Vision-S car

Image Credits: Sony/screenshot

Importantly, the Vision-S prototype also appears to be just the starting point for Sony, according to Frank Stein, president of automotive contract manufacturer Magna Steyr, one of Sony’s partners on the project. Stein, who is interviewed in the nearly 9-minute video, suggests that Sony and Magna’s partnership will continue, comments that might help quash speculation that the prototype was a mere dalliance.

The video, along with more information on its website, suggests that Sony and its numerous partners have been further developing the vehicle over the past year.

Sony increased the number of sensors on the vehicle to 40 to allow for 360-degree awareness and experimented with ways to increase their capabilities, according to Izumi Kawanishi, a senior vice president at the company who was featured in the video. Sony also created a system to verify the safety and security of its connected vehicle, he said.

The dashboard-length display screen, shown below, has five playing card-sized tiles in the center labeled camera, settings, navigation, music and video.

Sony Vision S car CES

Image Credits: Sony/screenshot

Video footage suggests several other features that have been added, or are in development, including a voice assistant, gesture control, entertainment such as video games, the ability to update the car’s software wirelessly, 5G connectivity and a driver monitoring system that uses an in-cabin camera. That camera, which Sony describes in more detail on its website, is particularly interesting.

The camera is used to identify and recognize the condition of the occupant. If it detects a sleeping passenger in the back seat, the car will automatically control the climate around that seat to a suitable temperature, according to Sony. The system continues to evolve through everyday use, learning the driver’s preferred temperature and music and driving routes. Actual driving data is used to make the space even more comfortable, the company says.

The video featured an array of partners on Vision-S, including Bosch and Continental, Hungarian automated driving startup AIMotive, software company Elektrobit Automotive, French automotive supplier Valeo, telecommunications giant Vodafone and German car parts maker ZF Group. The collection of partners, which also includes mapping company HERE, Nvidia and Blackberry/QNX and Qualcomm, leaves little doubt that this someday there will be a Sony car that consumers can buy.

“Getting closer to people is our corporate direction,” Izumi Kawanishi, a senior vice president at Sony said in the video. “I think that mobility serves as a tool to achieve it.”

News: BukuKas raises $10 million led by Sequoia Capital India to build a “end-to-end software stack” for Indonesian SMEs

The backbone of Indonesia’s economy are small- to medium-sized businesses, which account for 60% of its gross domestic product. Many still rely on manual bookkeeping, but the impact of COVID-19 has driven small businesses to digitize more of their operations. BukuKas, one of several startups helping SMEs go online, announced today it has raised a

The backbone of Indonesia’s economy are small- to medium-sized businesses, which account for 60% of its gross domestic product. Many still rely on manual bookkeeping, but the impact of COVID-19 has driven small businesses to digitize more of their operations. BukuKas, one of several startups helping SMEs go online, announced today it has raised a $10 million Series A led by Sequoia Capital India.

BukuKas launched in December 2019 as a digital bookkeeping app, but is growing its range of services with the goal of creating an “end-to-end software stack” for small businesses. Eventually, it wants to launch a SME-focused digital bank.

The funding, which brings BukuKas’ total raised so far to $22 million, included participation from returning investors Saison Capital, January Capital, Founderbank Capital, Cambium Grove, Endeavor Catalyst and Amrish Rau.

As of November 2020, BukuKas had a registered user base of 3.5 million small merchants and retailers, and had crossed 1.8 million monthly active users. During that month, the platform also recorded $17.4 billion worth of transactions on an annualized basis, a figure corresponding to more than 1.5% of Indonesia’s $1.04 trillion GDP.

BukuKas was founded by chief executive officer Krishnan Menon and chief operating officer Lorenzo Peracchione, who met eight years ago while working at Lazada Indonesia.

Menon’s previous startup was Fabelio, an Indonesian online home furnishings store. Every two months, he would visit smaller small cities in Indonesia, like Jepara and Cirebon, to source furniture.

“One of the things that stood out was how different the Jakarta bubble is from the rest of Indonesia, all the way from the penetration of software to financial services,” he told TechCrunch. While talking to merchants and suppliers, Menon realized that “no one is building products with them as the center of the universe,” despite the fact that there are 56 million small businesses.

Peracchione said he and Mebon had been brainstorming startup ideas for a while. “When he told me about the idea of solving cash flow visibility to SMEs, it immediately struck me,” Peracchione said. “My dad used to be a SME owner himself and during my childhood I experience first hand the struggles and ups and downs connected to running a small business.”

The two decided to start with digital bookkeeping after speaking to 1,052 merchants because helping them keep track of their business performance would generate data that would in turn enable access to more financial services.

“Our vision expanded into providing an end-to-end software stack to digitize SMEs and help them across a wide range of activities as a prequel to building an SME-focused digital bank down the line,” Menon said.

In addition to digital ledger features, BukuKas also sends payment reminders to buyers through WhatsApp and automatically generates invoices, includes an an inventory management module and analyzes expenses to help businesses understand what is impacting their profit. The company plans to add digital payments this month. During the rest of 2021, it will also introduce more features to help businesses sell online, including tools for online store fronts, a promotions engine and social sharing.

“With COVID-19, SMEs are rushing to get digitized, but they lack the right mobile-first tools to sell online as well as to manage their business,” said Menon.

The app focuses on smaller Indonesian cities and towns, since about 73% of the merchants who use BukuKas are located outside of tier 1 cities like Jakarta. Its users represent wide range of sectors, including retailers, food vendors, grocery markets, mobile and phone credit providers, social commerce sellers, wholesalers and service providers. BukuKas acquired digital ledger app Catatan Keuangan Harian, which has 300,000 monthly active users, in September 2020 to expand its market share in Indonesia.

With its large number of SMEs, Indonesia is seen as a desirable market for companies helping the drive toward digitization. For example, India’s Khatabook, which was valued between $275 million to $300 million after its last round of funding in May 2020, recently launched BukuUang in Indonesia. Other startups in the same space include Y Combinator-backed BukuWarung, Moka and Jurnal, all of which offer tools to help SMEs bring more of their operations online.

Menon said BukuKas’ advantage is its team’s experience building businesses in Indonesia over the past seven years. For example, it launched a “Know Your Profits” module based on user feedback. It also offers a self-guided onboarding process, a simple user interface and an offline mode for users in areas with poor network connections.

“In general, individual features can be copied but we believe our ‘integrated end-to-end software stack approach,’ coupled with our obsessive focus on simplicity, deep understanding of our users and a superior level of service will be key in differentiating BukuKas from competing offerings,” he added.

BukuKas’ Series A will be used on user acquisition, its engineering and product teams in Jakarta and Bangalore and to introduce new services for merchants. The company may eventually expand into other Southeast Asia markets, but “in the short term consolidating and further expanding our leadership in the SME space in Indonesia is our top priority,” said Menon.

 

News: PopSockets announces its MagSafe-compatible iPhone 12 accessories

In October, TechCrunch broke the news that PopSockets was developing its own line of MagSafe-compatible products that will support the new wireless charging capabilities of the iPhone 12 devices. Today, at the (virtual) 2021 Consumer Electronics Show, the company formally introduced its upcoming products for the first time. The new line will include three MagSafe-compatible

In October, TechCrunch broke the news that PopSockets was developing its own line of MagSafe-compatible products that will support the new wireless charging capabilities of the iPhone 12 devices. Today, at the (virtual) 2021 Consumer Electronics Show, the company formally introduced its upcoming products for the first time. The new line will include three MagSafe-compatible PopGrips, a wallet with an integrated grip and two mounts.

The first of these is the new PopGrip for MagSafe, which will magnetically attach to MagSafe-compatible cases for iPhone 12 devices.

The design of this PopGrip clears up some confusion over how a PopGrip (the round, poppable dongle that people normally think of when they think of “PopPockets”) will work with a MagSafe device. Instead of attaching just at the base of the grip itself, the grip is integrated into a larger base that attaches to the case.

Image Credits: PopSockets

Meanwhile, the grip has a swappable top so you can change the style of your PopGrip whenever you want without having to buy a whole new accessory.

This grip will also be compatible with PopSockets PopMount 2 phone mounts, including the new PopMount 2 for MagSafe, introduced today.

The PopMount 2 for MagSafe will launch as two solutions: PopMount for MagSafe Multi-Surface and PopMount for MagSafe Car Vent. As described by their name, both products will magnetically attach to iPhone 12 devices either at home or while on-the-go.

For those who use the new PopGrip for MagSafe grip, they’ll be able to leave the grip on, then let the mount’s magnets attach to the base.

Image Credits: PopMount Multi Surface for MagSafe

Also new is an updated PopWallet+ for MagSafe, which is a combination wallet and grip that lets users carry up to three cards and now attaches magnetically to MagSafe-compatible phone cases for iPhone 12 devices. The wallet has an elastic sock so you can extract your cards without having to remove the wallet from the back of the device, and it now includes a shield to protect credit cards from magnetic damage. The grip here is swappable, too.

Image Credits: PopSockets

Image Credits: PopWallet+ for MagSafe

There are also two versions of the PopGrip Slide becoming available. One, the PopGrip Slide Stretch will have expanding arms that attach mechanically to the sides of most phone cases, including iPhone 12 cases. You can slide this grip to the bottom of the phone to serve as a portrait stand or to attach MagSafe accessories, without having to remove the grip.

Image Credits: PopGrip Slide Stretch for MagSafe

The PopGrip Slide for iPhone 12 is basically the same thing, but designed to fit the Apple Silicone cases for iPhone 12 devices, more specifically.

Among the first of the new accessories to hit the market will be the PopGrip for MagSafe and PopWallet+ for MagSafe in spring 2021.

The PopGrip Slide Stretch will launch March 21 on PopSockets.com and in select Target locations ahead of a broader rollout. The PopGrip Slide will launch May 1 on PopSockets.com and in Apple Stores. And the PopMount for MagSafe line will launch in summer 2021.

The company also announced a few other non-MagSafe products, including the PopGrip Pocketable, which streamlines the grip when collapsed so the surface is flat; the PopGrip Antimicrobial, which has an embedded silver-based treatment for protection; and the PopSockets x SOG PopGrip Multi-Tool, made in collaboration with SOG Speciality Knives, which includes a PopGrip with a detachable multi-tool.

The company didn’t share an exact time frame for these products besides “early 2021.”

News: Sony unveils AirPeak, its camera-carrying video drone

When Sony teased the AirPeak late last year, it didn’t give us much to go one. We knew the consumer electronics giant was finally getting in the drone business — but beyond that, not much else. Just a dark image or two from some piece of the UAV. See the latest news from Sony unveiled

When Sony teased the AirPeak late last year, it didn’t give us much to go one. We knew the consumer electronics giant was finally getting in the drone business — but beyond that, not much else. Just a dark image or two from some piece of the UAV.

See the latest news from Sony unveiled at CES 2021, starting with the exclusive reveal of Airpeak. Learn more: https://t.co/ltzutqpAgx #SonyCES pic.twitter.com/B0HpRGpSKF

— Sony (@Sony) January 11, 2021

At CES this week, the company’s finally prepared to show off a bit more. “Today, we’re going to introduce a product that integrates AI and robotics,” CEO Kenichiro Yoshida said in an announcement video, “designed for adventurous creators.”

The drone is designed to carry Sony’s own imaging technology — specifically the Alpha series of mirrorless. And while it’s large compared to what we’re used to seeing on the consumer side from companies like DJI, Sony say it’s going to be the smallest drone on the market that can be equipped with its cameras.

Along with the announcement, the company’s also debuting footage of the drone in action, along with video captured with its on-board camera. The drone was flown through snow and managed to capture some lovely, stable footage, all things considered. Also of note: The car in the video is the Vision-S concept the company unveiled this time last year.

The system looks to compete with some of the more pro-focused models. DJI has that market under lock — along with practically all drone categories. Though while DJI owns a majority stake in Hasselblad, Sony’s system looks like a proprietary, purpose-built design. That could certainly be a bonus from the standpoint of compatibility, though it doesn’t seem like you’ll be able to swap the Alpha out for different cameras.

The company is targeting a spring release for the system. No word yet on pricing.

News: The Capitol riot and its aftermath makes the case for tech regulation more urgent, but no simpler

Last week and throughout the weekend, technology companies took the historic step of deplatforming the president of the United States in the wake of a riot in which the US Capitol was stormed by a collection of white nationalists, QAnon supporters, and right wing activists. The decision to remove Donald Trump, his fundraising and moneymaking

Last week and throughout the weekend, technology companies took the historic step of deplatforming the president of the United States in the wake of a riot in which the US Capitol was stormed by a collection of white nationalists, QAnon supporters, and right wing activists.

The decision to remove Donald Trump, his fundraising and moneymaking apparatus, and a large portion of his supporters from their digital homes because of their incitements to violence in the nation’s Capitol on January 6th and beyond, has led a chorus of voices to call for the regulation of the giant tech platforms.

They argue that private companies shouldn’t have the sole power to erase the digital footprint of a sitting president.

But there’s a reason why the legislative hearings in Congress, and the pressure from the president, have not created any new regulations. And there’s also a reason why — despite all of the protestations from the president and his supporters — no lawsuits have effectively been brought against the platforms for their decisions.

The law, for now, is on their side.

The First Amendment and freedom of speech (for platforms)

Let’s start with the First Amendment. The protections of speech afforded to American citizens under the First Amendment only apply to government efforts to limit speech. While the protection of all speech is assumed as something enshrined in the foundations of American democracy, the founders appear to have only wanted to shield speech from government intrusions.

That position makes sense if you’re a band of patriots trying to ensure that a monarch or dictator can’t abuse government power to silence its citizens or put its thumb on the lever in the marketplace of ideas.

The thing is, that marketplace of ideas is always open, but publishers and platforms have the freedom to decide what they want to sell into it. Ben Franklin would never have published pro-monarchist sentiments on his printing presses, but he would probably have let Thomas Paine have free rein.

So, the First Amendment doesn’t protect an individuals’ rights to access any platform and say whatever the hell they want. In fact, it protects businesses in many cases from having their freedom of speech violated by having the government force them to publish something they don’t want to on their platforms.

Section 230 and platform liability 

BuT WhAt AbOUt SeCTiOn 230, one might ask (and if you do, you’re not alone)?

Canceling conservative speech is hostile to the free speech foundation America was built on.

There is no reason why social media organizations that pick & choose which speech they allow to be protected by the liability protections in 47 US Code Section 230.

230 must be repealed

— Greg Abbott (@GregAbbott_TX) January 10, 2021

Unfortunately, for Abbott and others who believe that repealing Section 230 would open the door for less suppression of speech by online platforms, they’re wrong.

First, the cancellation of speech by businesses isn’t actually hostile to the foundation America was built on. If a group doesn’t like the way it’s being treated in one outlet, it can try and find another. Essentially, no one can force a newspaper to print their letter to the editor.

Second, users’ speech isn’t what is protected under Section 230; it protects platforms from liability for that speech, which indirectly makes it safe for users to speak freely.

Where things get complicated is in the difference between the letter to an editor in a newspaper and a tweet on Twitter, post on Facebook, or blog on Medium (or WordPress). And this is where U.S. Code Section 230 comes into play.

Right now, Section 230 protects all of these social media companies from legal liability for the stuff that people publish on their platforms (unlike publishers). The gist of the law is that since these companies don’t actively edit what people post on the platforms, but merely provide a distribution channel for that content, then they can’t be held accountable for what’s in the posts.

The companies argue that they’re exercising their own rights to freedom of speech through the algorithms they’ve developed to highlight certain pieces of information or entertainment, or in removing certain pieces of content. And their broad terms of service agreements also provide legal shields that allow them to act with a large degree of impunity.

Repealing Section 230 would make platforms more restrictive rather than less restrictive about who gets to sell their ideas in the marketplace, because it would open up the tech companies to lawsuits over what they distribute across their platforms.

One of the authors of the legislation, Senator Ron Wyden, thinks repeal is an existential threat to social media companies. “Were Twitter to lose the protections I wrote into law, within 24 hours its potential liabilities would be many multiples of its assets and its stock would be worthless,” Senator Wyden wrote back in 2018. “The same for Facebook and any other social media site. Boards of directors should have taken action long before now against CEOs who refuse to recognize this threat to their business.”

Others believe that increased liability for content would actually be a powerful weapon to bring decorum to online discussions. As Joe Nocera argues in Bloomberg BusinessWeek today:

“… I have come around to an idea that the right has been clamoring for — and which Trump tried unsuccessfully to get Congress to approve just weeks ago. Eliminate Section 230 of the Communications Decency Act of 1996. That is the provision that shields social media companies from legal liability for the content they publish — or, for that matter, block.

The right seems to believe that repealing Section 230 is some kind of deserved punishment for Twitter and Facebook for censoring conservative views. (This accusation doesn’t hold up upon scrutiny, but let’s leave that aside.) In fact, once the social media companies have to assume legal liability — not just for libel, but for inciting violence and so on — they will quickly change their algorithms to block anything remotely problematic. People would still be able to discuss politics, but they wouldn’t be able to hurl anti-Semitic slurs. Presidents and other officials could announce policies, but they wouldn’t be able to spin wild conspiracies.”

Conservatives and liberals crowing for the removal of Section 230 protections may find that it would reinstitute a level of comity online, but the fringes will be even further marginalized. If you’re a free speech absolutist, that may or may not be the best course of action.

What mechanisms can legislators use beyond repealing Section 230? 

Beyond the blunt instrument that is repealing Section 230, legislators could take other steps to mandate that platforms carry speech and continue to do business with certain kinds of people and platforms, however odious their views or users might be.

Many of these steps are outlined in this piece from Daphne Keller on “Who do you sue?” from the Hoover Institution.

Most of them hinge on some reinterpretation of older laws relating to commerce and the provision of services by utilities, or on the “must-carry” requirements put in place in the early days of 20th century broadcasting when radio and television were distributed over airways provided by the federal government.

These older laws involve either designating internet platforms as “essential, unavoidable, and monopolistic services to which customers should be guaranteed access”; or treating the companies like the railroad industry and mandating compulsory access, requiring tech companies to accept all users and not modify any of their online speech.

Other avenues could see lawmakers use variations on the laws designed to limit the power of channel owners to edit the content they carried — including things like the fairness doctrine from the broadcast days or net neutrality laws that are already set to be revisited under the Biden Administration.

Keller notes that the existing body of laws “does not currently support must-carry claims against user-facing platforms like Facebook or YouTube, because Congress emphatically declined to extend it to them in the 1996 Telecommunications Act.”

These protections are distinct from Section 230, but their removal would have similar, dramatic consequences on how social media companies, and tech platforms more broadly, operate.

“[The] massive body of past and current federal communications law would be highly relevant,” Keller wrote. “For one thing, these laws provide the dominant and familiar model for US regulation of speech and communication intermediaries. Any serious proposal to legislate must-carry obligations would draw on this history. For another, and importantly for plaintiffs in today’s cases, these laws have been heavily litigated and are still being litigated today. They provide important precedent for weighing the speech rights of individual users against those of platforms.”

The establishment of some of these “must-carry” mandates for platforms would go a long way toward circumventing or refuting platforms’ First Amendment claims, because some cases have already been decided against cable carriers in cases that could correspond to claims against platforms.

This is really happening already so what could legislation look like

At this point the hypothetical scenario that Keller sketched out in her essay, where private actors throughout the technical stack have excluded speech (although the legality of the speech is contested), has, in fact, happened.

The question is whether the deplatforming of the president and services that were spreading potential calls to violence and sedition, is a one-off; or a new normal where tech companies will act increasingly to silence voices that they — or a significant portion of their user base — disagree with.

Lawmakers in Europe, seeing the actions from U.S. companies over the last week, aren’t wasting any time in drafting their own responses and increasing their calls for more regulation.

In Europe, that regulation is coming in the form of the Digital Services Act, which we wrote about at the end of last year.

On the content side, the Commission has chosen to limit the DSA’s regulation to speech that’s illegal (e.g., hate speech, terrorism propaganda, child sexual exploitation, etc.) — rather than trying to directly tackle fuzzier “legal but harmful” content (e.g., disinformation), as it seeks to avoid inflaming concerns about impacts on freedom of expression.

Although a beefed up self-regulatory code on disinformation is coming next year, as part of a wider European Democracy Action Plan. And that (voluntary) code sounds like it will be heavily pushed by the Commission as a mitigation measure platforms can put toward fulfilling the DSA’s risk-related compliance requirements.

EU lawmakers do also plan on regulating online political ads in time for the next pan-EU elections, under a separate instrument (to be proposed next year) and are continuing to push the Council and European parliament to adopt a 2018 terrorism content takedown proposal (which will bring specific requirements in that specific area).

Europe has also put in place rules for very large online platforms that have more stringent requirements around how they approach and disseminate content, but regulators on the continent are having a hard time enforcing htem.

Keller believes that some of those European regulations could align with thinking about competition and First Amendment rights in the context of access to the “scarce” communication channels — those platforms whose size and scope mean that there are few competitive alternatives.

Two approaches that Keller thinks would perhaps require the least regulatory lift and are perhaps the most tenable for platforms to pursue involve solutions that either push platforms to make room for “disfavored” speech, but tell them that they don’t have to promote it or give it any ranking.

Under this solution, the platforms would be forced to carry the content, but could limit it. For instance, Facebook would be required to host any posts that don’t break the law, but it doesn’t have to promote them in any way — letting them sink below the stream of constantly updating content that moves across the platform.

“On this model, a platform could maintain editorial control and enforce its Community Guidelines in its curated version, which most users would presumably prefer. But disfavored speakers would not be banished enitrely and could be found by other users who prefer an uncurated experience,” Keller writes. “Platforms could rank legal content but not remove it.”

Perhaps the regulation that Keller is most bullish on is one that she calls the “magic APIs” scenario. Similar to the “unbundling” requirements from telecommunications companies, this regulation would force big tech companies to license their hard-to-duplicate resources to new market entrants. In the Facebook or Google context, this would mean requiring the companies open up access to their user generated content, and other companies could launch competing services with new user interfaces and content ranking and removal policies, Keller wrote.

“Letting users choose among competing ‘flavors’ of today’s mega-platforms would solve some First Amendment problems by leaving platforms own editorial decisions undisturbed,” Keller writes.

Imperfect solutions are better than none 

It’s clear to speech advocates on both the left and the right that having technology companies control what is and is not permissible on the world’s largest communications platforms is untenable and that better regulation is needed.

When the venture capitalists who have funded these services — and whose politics lean toward the mercenarily libertarian — are calling for some sort of regulatory constraints on the power of the technology platforms they’ve created, it’s clear things have gone too far. Even if the actions of the platforms are entirely justified.

However, in these instances, much of the speech that’s been taken down is clearly illegal. To the point that even free speech services like Parler have deleted posts from their service for inciting violence.

The deplatforming of the president brings up the same points that were raised back in 2017 when Cloudflare, the service that stands out for being more tolerant of despicable speech than nearly any other platform, basically erased the Daily Stormer.

“I know that Nazis are bad, the content [on The Daily Stormer] was so incredibly repulsive, it’s stomach turning how bad it is,” Prince said at the time. “But I do believe that the best way to battle bad speech is with good speech, I’m skeptical that censorship is the right scheme.

“I’m worried the decision we made with respect to this one particular site is not particularly principled but neither was the decision that most tech companies made with respect to this site or other sites. It’s important that we know there is convention about how we create principles and how contraptions are regulated in the internet tech stack,” Prince continued.

“We didn’t just wake up and make some capricious decision, but we could have and that’s terrifying. The internet is a really important resource for everyone, but there’s a very limited set of companies that control it and there’s such little accountability to us that it really is quite a dangerous thing.”

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