Steve Thomas - IT Consultant

Google Cloud today announced plans for its first cloud region in Mexico, its third in Latin America after Santiago, Chile and São Paulo, Brazil.

The new region, which will be Google’s 35th, will allow it to better serve its local users with lower-latency access to its cloud services, but — and these days, this may be even more important — offer these users data residency and compliance options.

“The cloud region in Mexico will unlock new possibilities for the use of cloud technologies by public sector organizations in the country,” said Juan Carlos Sarmiento Tovilla, the director general of Information Systems at Mexico’s Federal Court of Administrative Justice. “Different public entities would benefit from interoperating in an efficient and secure way, facilitating access to computing power and information technologies.”

In this context, it’s worth noting that Microsoft Azure also announced plans to open a region in Mexico (though that was in 2020 and it’s not open yet) and AWS also announced plans for a region in the country last year, as well as a local zone in Queretaro.

In addition to the new region in Mexico, Google also plans to open new regions in Doha (Qatar), Turin (Italy), Berlin (Germany), Dammam (Kingdom of Saudi Arabia) and Tel Aviv (Israel) in the near future.

Urban, a popular UK-based startup that allows customers to find self-employed massage therapists who can be booked to attend customers’ homes, has been named in an investigation into alleged abuse by unlicensed freelance therapists.

The startup has raised $35.7M from investors that include the likes of Felix Capital, Passion Capital, the London Co-Investment Fund, angels from a network of Harvard Business School alumni, and others. Originally launched in 2014 “Urban Massage,” the startup has ridden the wave of Uber-like, gig-economy services where a service provider could be booked via an app and they would magically arrive.

But last week, the startup was cited in a BBC story that described the practice of alleged sexual assaults by home-visit massage therapists. Specifically, the news report does not suggest that Urban is complicit in the assault, but it cited two different cases — one that has resulted in a conviction in court — where the therapists in question advertised and were booked through Urban.

In one of those cases, the BBC report details how the platform was slow to respond to the complaint: three years after the customer filed a report with the police and reported the therapist in question to Urban, the BBC could still find his profile on the site. (It has since been removed.)

These do not appear to have been isolated incidents. Separately, TechCrunch has also spoken to another woman who alleges she was assaulted by an Urban massage therapist in the past. She too said she could still see the therapist on the platform, despite her reporting the incident to Urban. (She chose not to detail her experience for this story.)

Urban is by no means the only way that consumers can find and book massage therapists. The BBC said it “heard from dozens of women who have been sexually assaulted by massage therapists in their own homes.” But with two of the cases cited in the story originating from sessions booked on the Urban platform, it highlights a problem that persists across a number of gig-economy marketplaces: too often the platform operators are getting caught out with bad actors using the platform, raising questions about how effective its screening processes are.

It also highlights problems specific to the wellness industry in the UK, and specifically around masseurs and how they are regulated. Under current UK regulations, massage therapists do not need a licence, nor any formal training, to start practicing massage. There is one accredited register of practitioners, but the listings are voluntary, meaning many therapists do not appear on it.

Additionally, only some local councils require premises offering massage therapy to have a business license, which can be revoked in cases where there might be complaints lodged against its practices. In any case, this would not cover gig-economy massage therapists who might visit a home. In simple terms, in the UK at least, anyone can claim to be a trained massage therapist.

The BBC report last week outlines how a woman called Taylor — not her real name — alleged she booked an at-home massage on the Urban app in October 2019. Unable to find a female therapist who was available, she booked a male therapist with hundreds of positive reviews.

Taylor told the BBC the massage therapist committed a serious sexual assault on her during the session, which was subsequently reported to both Urban and the police – who later dropped their investigation due to a lack of evidence.

Urban said it would remove the therapist from the platform, but the woman claimed the therapist’s profile was still accessible two weeks later.

BBC News then found his profile was still visible three years on from the incident. It was only removed after Urban was contacted by the BBC.

Urban says customers are not able to book a therapist against whom a complaint has been made, despite their profile being visible.

A spokesperson for Urban told TechCrunch: “The [BBC] article refers to a long delay before a deactivated therapist’s profile was removed from the app. While the practitioner’s access to the platform was revoked immediately upon receiving the complaint and delivered no further appointments, their profile was still visible if you had their name or unique link. This was our mistake and falls below the high standards we set for ourselves at Urban. On 21 June we revised the app and website so the entire online presence of a practitioner on Urban is removed on deactivation.”

Urban told us therapists are required to undergo rigorous vetting – including a DBS check which was introduced in 2019 – and insist only a tiny fraction of their bookings have resulted in a complaint. The firm said all complaints are taken seriously and investigated.

So why did it take so long to introduce this DBS check, since Urban was started in 2014?

The Urban spokesperson said in response: “We continuously advance our trust and safety protocols in the absence of regulation. This has improved the trust and safety protocols of the industry and we’ve seen other platforms following our advancements.”

TechCrunch asked Urban about what safeguarding is put in place in a scenario where a male therapist’s profile may have hundreds of positive reviews simply because the women are too afraid to come forward.

A spokesperson for Urban told TechCrunch: “Users are not required to leave a rating, and should anyone wish to make a report in confidence, our team is here to support them.”

Although in theory one does not need any license to practice massage therapy in the UK, Urban said they go through other kinds of vetting:

“All professionals who join our platform go through a rigorous vetting process including a DBS check, assessment, qualification checks to the min standard of level 3 UK recognized qualification (BTEC, ITEC and the like – we do not accept anyone with short courses), insurance check, ID & right to work check and COVID compliance,” said a spokesperson. Users can request qualifications for any therapist booked on the platform.

In addition to that, it also provides support services, the spokesperson added. “We have a robust support system in place. This includes both internal and external trust and safety committees that inform our processes and complaints procedures as well as a quality assurance team. We work closely with the police and our partnership with The Survivor’s Trust provides us with education and guidance on prevention policies.”

Urban said the number of complaints relating to any inappropriate behavior is a at 0.02% of all of bookings historically, giving it a notional ‘safety rating’ of 99.98%.

On Google Ads, Urban claims to have taken over one million bookings. Simple maths show that 0.02% of a million is 200, although there is no suggestion that this is an accurate number of serious complaints and does not reflect the nature of a complaint.

On the 0.02% complaints rate, Urban’s spokesperson commented:”We categorise “complaints” as any reported event, and this includes reports by the client or the practitioner of suggestive behaviour or assault. Some of the incidents will be unfounded. The majority of these incidents arise from suggestive behaviour from clients rather than complaints made against practitioners.”

Urban said it does not allow therapists to message clients off-app. “This is against our policy. We encourage all users to communicate via the app only,” said the spokesperson.

The company also noted that it has also put in place internal training process for customer service team members around what is and isn’t a sexual assault.

“We have a zero-tolerance policy towards any behavior that makes anyone feel distressed, uncomfortable or intimidated, even in subtle or ‘small’ ways,” said the spokesperson. “We are a silver-accredited Trauma Informed Employer, which recognises the training we have in place to make sure incidents are handled sensitively and employees are supported.”

Urban says it would “welcome” more regulation of the massage industry, but it begs the question of what that would look like.

“With physiotherapy and osteopathy, there are central governing bodies such as HCPC and GosC whereby complaints are registered industry-wide which can lead to disqualification of a practitioner. We support such measures for the massage industry,” said a spokesperson. Urban added it is “continuing our dialogue with government and minister on the topic of introducing regulation for the industry. Urban is the only commercial organisation pushing for this.”

This is not the first time Urban has attracted controversy.

In 2018, TechCrunch reported that it had leaked its entire customer database, by leaving its Google-hosted ElasticSearch database online without a password.

This allowed anyone to read hundreds of thousands of customer and staff records. Anyone who knew where to look could access, edit or delete the database. Urban pulled the database offline after TechCrunch reached out.

The leak exposed more than 309,000 user records, including names, email addresses and phone numbers. One user, who did not want to be named, said the data exposure was a “huge violation” of her privacy. Among the records included thousands of complaints from workers about their clients, relating to sexual misconduct.

At the time, chief executive Jack Tang said in a statement: “Urban is looking into this as a matter of utmost urgency. We have informed the ICO and will take all other appropriate action, including in relation to data and communications.”

Urban’s investors

TechCrunch contacted the investors in Urban to ask for their comments on this story.

Passion Capital sent us this statement:

“It’s terrible when anyone is assaulted and even one victim is one too many. As investors in Urban since 2014, we’ve always been proud to back the company in its mission to deliver wellness to more people at their place of work or home — but especially because of the company’s industry-leading trust and safety protocols for customers. Any professional on the urban platform has to undergo a DBS check, assessment and minimum standard of level 3 UK recognized qualification, among other criteria. While there’s still more work to be done (particularly across the sector at large) and we’re always looking for further improvements, the company’s incident rate of 0.02% is a testament to its commitment to customer safety.”

A spokesperson for Firestartr sent TechCrunch the following statement: “As early seed investors in Urban with Passion Capital, we always encouraged the company to implement best practices to ensure the safety and wellness of both therapists and clients at home. However, we cannot comment further because Firestartr did not hold a directorship in the company and was not involved in any board-level efforts to address this topic.”

A spokesperson on behalf of ADV said: “Sexual offences are horrendous crimes and we are saddened to hear about these allegations. As a business we take any allegations of this nature incredibly seriously. We also expect our investee companies to take these matters with the same seriousness.”

We also asked for comment from other Lead Investors in funding rounds for Urban. Felix Capital is referring media to Urban’s statements. BNF Capital had not responded by time of publication.

A former Urban masseur, Cosmin Tudoache, was last year jailed for five years for raping a woman who had booked his services on the Urban app.

The woman we spoke to who alleges a sexual assault by an Urban therapist (Urban denies the assault took place) told TechCrunch that as a consequence of her experience she no longer allows men in her home without someone else being there: “I no longer do 121 training sessions with my male fitness coach and my home cleaning company has an alert on my account to say I cannot have male cleaners. It has fundamentally affected my life for the long term,” she said.

At its Inspire conference, Microsoft today announced the launch of the Microsoft Cloud for Sovereignty, a new solution for public sector customers — especially in Europe — who need to be able to guarantee that their users’ data is stored and processed in a given region.

“Today, public sector customers can harness the full power of Microsoft Cloud, including broad platform capabilities, resiliency, agility and security,” the company explains in today’s announcement. “With the addition of Microsoft Cloud for Sovereignty, they will have greater control over their data and increased transparency to the operational and governance processes of the cloud.”

Image Credits: Microsoft

Users will be able to run their workloads in any of Azure’s more than 60 data center regions and access all of the standard Microsoft Cloud services (think Microsoft 365, Dynamics 365 and the Azure platform) and then enable residency options for all of these to meet their regulatory requirements. The company will also offer a ‘Sovereign Landing Zone’ to recommend and enforce compliance options using the same infrastructure-as-code and policy-as-code features are its Azure Landing Zone. This, the company argues, will make it easier for its public sector customers to get up and running, yet also give them the flexibility to tailor these policies to their needs.

The other major cloud providers, of course, also offer their own systems for ensuring compliance with data sovereignty regulations. Google recently announced its Sovereign Controls for its Workspace product, for example, while AWS offers all the primitives to build these features but also bets on its network of third-party vendors and consultants to enable these capabilities for its customers. Few, however, have put the same emphasis on data governance as Azure, which may just pay off in its quest to bring more lucrative public sector customers on board.

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

Global app spending reached $65 billion in the first half of 2022, up only slightly from the $64.4 billion during the same period in 2021, as hypergrowth fueled by the pandemic has slowed down. But overall, the app economy is continuing to grow, having produced a record number of downloads and consumer spending across both the iOS and Google Play stores combined in 2021, according to the latest year-end reports. Global spending across iOS and Google Play last year was $133 billion, and consumers downloaded 143.6 billion apps.

This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and much more.

Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Top Stories

TikTok is getting a rating system

Some TikToks are too racy or mature for younger teens — a problem TikTok aims to address with the upcoming launch of a new content ratings system. The “Content Levels” system, as it will be called, is meant to provide a means of classifying content on the video app — similar to how movies, TV shows and video games today feature age ratings.

TikTok acknowledged some content on its app may contain “mature or complex themes that may reflect personal experiences or real-world events that are intended for older audiences.” It will work to assign these sorts of videos a “maturity score” that will block them from being viewed by younger users. Not all videos will be rated, however. The goal will be to rate videos that get flagged for review and those that are gaining virality. Initially, the system will focus on preventing inappropriate content from reaching users ages 13 to 17, TikTok says, but will become a broader system over time.

The launch follows a 2021 congressional inquiry into social apps, including TikTok and others, which focused on how their algorithmic recommendation systems could be promoting harmful content, like eating disorder content, to younger users. TikTok has also been making headlines for its promotion of dangerous and destructive viral stunts, like kids destroying public school bathroomsshooting each other with pellet guns or jumping off milk crates, among other things.

TikTok, like other social apps, is in hot water over the potential negative impacts to minors using its service. But it’s under particular scrutiny since the reveal that parent company ByteDance — in China — was accessing U.S. TikTok user data. Alongside the maturity ratings, TikTok says it will also launch content filters that will let users block videos with hashtags or certain words from their feeds.

For all its ills, TikTok has more developed parental controls than its U.S. rivals and the launch of a content ratings system could push other apps reaching minors, like Instagram and Snapchat, to do the same.

Will he or won’t he? The Twitter deal heads to court

Elon wants out. The Tesla and SpaceX exec has got a serious case of buyer’s remorse. Musk offered to buy Twitter at $54.20 per share — it’s a weed joke! Get it? 420! — but the stock today is only trading at $36.29 per share. So it’s not so funny anymore. Now the exec is attempting to use some flimsy excuses about “bots” on the network in order to get out of the legal agreement. But Twitter just said, see you in court! (Well, in legalese, it said Musk’s termination was “invalid and wrongful.”) Twitter then delivered a few more jabs in a letter filed with the SEC, noting Musk “apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.” Burn!

Sadly, caught in the chaos are Twitter’s advertisers, some of whom are exiting, and of course, the Twitter employees who often don’t know what’s going on, who will prevail or what Musk may do if the deal is forced through. (Vent here if you want!) And what does this mean for Twitter’s conference Chirp later this year, if the deal is still in limbo?

This has been such a weird and fraught acquisition since day one, with some poor folks at the SEC having to collate tweets of poop emoji and memes as investor alerts. It’s also one that makes a pretty good case as to why we should tax billionaires more — too much money turns large companies and people’s livelihoods into toys for their amusement, apparently.

Non-game revenue tops games for the first time on the U.S. App Store

App Store icon on iPhone screen

Image Credits: TechCrunch

A major shift in the U.S. app economy has just taken place. In the second quarter of this year, U.S. consumer spending in non-game mobile apps surpassed spending in mobile games for the first time in May 2022, and the trend continued in June. This drove the total revenue generated by non-game apps higher for the quarter, reaching about $3.4 billion on the U.S. App Store, compared with $3.3 billion spent on mobile games.

After the shift in May, 50.3% of the spending was coming from non-game apps by June 2022, according to new findings in a report from app intelligence firm Sensor Tower. By comparison, games had accounted for more than two-thirds of total spending on the U.S. App Store just five years ago.

The trend was limited to the U.S. App Store and was not seen on Google Play, however. In Q2, games accounted for $2.3 billion in consumer spending on Google Play in the U.S., while non-game apps accounted for about $1 billion. Read more about the new data here.

Kids and teens now spend more time on TikTok than YouTube

The TikTok logo is seen on an iPhone 11 Pro max

Image Credits: Nur Photo (opens in a new window) / Getty Images

A study of 400,000 families performed by parental control software maker Qustodio found that kids and teens ages 4-18 now spend more time watching videos on TikTok than they do watching YouTube — and that’s been the case since June 2020, in fact. That month, TikTok overtook YouTube for the first time, as this younger demographic began averaging 82 minutes per day on TikTok versus an average of 75 minutes per day on YouTube.

YouTube had still been ahead in 2019 as kids and teens were spending an average of 48 minutes on the platform on a global basis, compared with 38 minutes on TikTok. But with the shift in usage that took place in June 2020, TikTok came out on top for 2020 as a whole, with an average of 75 minutes per day, compared with 64 minutes for YouTube.

In the years since, TikTok has continued to dominate with younger users. By the end of 2021, kids and teens were watching an average of 91 minutes of TikTok per day compared with just 56 minutes per day spent watching YouTube, on a global basis.

Likely aware of this threat, YouTube launched its own short-form platform called Shorts, which it now claims has topped 1.5 billion logged-in monthly users. The company believes this will push users toward its long-form content — but so far, that hasn’t happened, it seems. Read the full report here.

TikTok is eating into Google Search and Maps, says Google

In a bit of an incredible reveal (if one that helps Google from an anticompetitive standpoint), a Google exec admitted that younger people’s use of TikTok and Instagram is actually impacting the company’s core products, like Search and Maps.

TechCrunch broke this news following comments made at Fortune’s Brainstorm Tech event this week.

“In our studies, something like almost 40% of young people, when they’re looking for a place for lunch, they don’t go to Google Maps or Search,” said Google SVP Prabhakar Raghavan, who runs Google’s Knowledge & Information organization. “They go to TikTok or Instagram.”

Google confirmed to us his comments were based on internal research that involved a survey of U.S. users, ages 18 to 24. The data has not yet been made public, we’re told, but may later be added to Google’s competition site, alongside other stats — like how 55% of product searches now begin on Amazon, for example.

Weekly News

Platforms: Apple

  • The iOS 16 public beta has arrived. It’s here, it’s surprisingly functional, and it brings a number of great new features to iPhone users, including a customizable Lock Screen with support for new Lock Screen widgets, more granular Focus Mode features, an improved messaging experience with an Undo Send option, SMS filters, iCloud Shared Photo Library for families, CAPTHCA bypassing and this clever new image cutout feature that lets you “pick up” objects from photos and copy them into other apps. On iPadOS 16, there are a number of specialized features, including the new Stage Manager multitasking interface.

Apple's new visual lookup feature

Apple’s new visual lookup feature. Image Credits: Apple

Platforms: Google

  • Samsung rolled out its One UI 4.5 update for Galaxy Watches, which is powered by Wear OS 3.5. The update includes a full QWERTY keyboard, customizable watch faces and dual-SIM support, and will run on the Galaxy Watch4, the Galaxy Watch4 Classic and other models.
  • Google expanded its Play Games for PC beta, which brings Android apps to Windows, to more regions, including Thailand and Australia.
  • Google released the fourth and final Android 13 beta ahead of its official launch, which the company says is “just a few weeks away.” There were not many changes with this update, as Google already reached platform stability with Android 13 beta 3 last month.

E-commerce

  • TikTok launched a new educational program targeting small businesses that want to learn how to use its platform to drive sales. The launch follows TikTok’s decision to pause the expansion of its Shop initiative. The program walks businesses through setting up an account, creating content and using TikTok ads products, and features coaching and tips from other SMBs.
  • NYC fast delivery apps could face a shutdown if new bills proposed by New York’s City Council get approved. The city is concerned about the dark stores’ workers’ safety.

Augmented Reality

  • Shopify showed off a wild internal experiment using Apple’s new RoomPlan API that allowed users to more easily reset their room in order to see how new furniture could work. The test lets you remove the furniture already in your room to create a lifelike digital twin of your room that can be overlaid in your real space using AR. Users could then swipe through new room sets to see how they’d look in their own space. Spotify said it has nothing in production related to this right now — but wow, someone should!

Fintech/Crypto

  • FlickPlay, an AR social app that lets users unlock NFTs and display them in a wallet, was among those selected to participate in Disney’s 2022 startup accelerator, among others focused on AR, web3 and AI experiences.

Social

Image Credits: TechCrunch

  • Two anonymous social Q&A apps are heading to court. Sendit’s maker, Iconic Hearts, is suing rival NGL for stealing its proprietary business data in order to build what’s since become a top-ranked Q&A app on the App Store. Of note, the court filing reveals that the apps are using fake questions to engage their users — something many had already suspected.
  • Reddit and GIPHY partner. Reddit is now allowing its safe-for-work and non-quarantined subreddits to enable GIPHY for use in the comments. Those moderators who don’t want the GIF comments will need to opt out. Previously GIFs in comments were available as a paid subscription perk (via Reddit’s Powerups), but most of these will now be available for free.
  • TikTok’s head of global security stepped down. Someone had to pay for that security debacle which found that U.S. TikTok user data was being viewed in China. Global security head Roland Cloutier will be stepping down effective September 2 and will be replaced by Kim Albarella, who’s been appointed the interim head of TikTok’s Global Security Organization.
  • A children’s rights group called out TikTok for age-appropriate design issues, ahead of TikTok’s launch of new safety features. The group’s research looked at various apps’ default settings and terms offered to minors, including also WhatsApp and Instagram — spanning 14 different countries — including the U.S., Brazil, Indonesia and the U.K. The report noted TikTok was defaulting 17-year-olds to public accounts outside of certain EU markets and the U.K., lacked terms in people’s first languages and wasn’t being transparent about age requirements, among other things.
  • Instagram began testing a Live Producer tool that lets creators go live from their desktop using streaming software, like OBS,  Streamyard and Streamlabs. Only a small group of participants currently has access to the tool, which opens up access to using additional cameras, external mics and graphics.
  • Instagram also rolled out more features to its creator subscription test, including subscriber group chats, reels and posts for subscribers only, and a subscriber-only tab on a creator’s profile.
  • Twitter is testing custom timelines built by developers around specific themes, starting with a custom timeline for The Bachelorette in the U.S. This is the latest product that attempts to allow users different views into Twitter, along with List, Topics, Communities and Trending. It’s also now testing a feature that reminds users to add image descriptions for accessibility.

Twitter custom timeline

Twitter custom timeline. Image Credits: Twitter/Amir Shevat

  • Facebook started testing a way for users to have up to five separate profiles tied to a single account. The company said this would allow users to take advantage of different profiles for interacting with specific groups — like a profile for use with friends and another one for coworkers.
  • Activist investor Elliott Management told Pinterest that it has acquired a 9%+ stake in the company. The Pinterest stock jumped more than 15% after hours on the news.

Messaging

  • WhatsApp rolled out the ability for users to react to messages using any emoji, instead of just the chosen six it had offered previously. The feature is one of several WhatsApp developed for its broader Communities update but is making available to all app users.
  • Meta’s smartglasses, Ray-Ban Stories, now let users make calls, hear message readouts and send end-to-end encrypted messages with WhatsApp. The glasses already support Messenger and offer other features like photo-taking and video recording, listening to music and more.

Dating

Image Credits: Match

  • Match Group is expanding its use of free background checks across more of its dating apps. The feature, powered by Garbo, was first launched on Tinder earlier this year. It’s now available on other Match Group apps, including Match and Stir.
  • Google has responded to Match Group’s antitrust lawsuit in a new court filing, which refers to Match’s original complaint as a “cynical attempt” to take advantage of Google Play’s distribution platform and other tools while attempting to sidestep Google’s fees. The two tech giants have been battling it out in court after Match sued Google this May over its alleged monopoly power in Android app payments. The companies have a temporary truce that sees Match setting aside its commissions in escrow while they await the court’s decision. If Google prevails, it wants to kick Match out of its app store altogether. 

Streaming & Entertainment

  • Truecaller is taking on Clubhouse — even though the hype has worn off over live audio. The caller ID app maker ventured into a new market with the launch of Open Doors, a live audio app that lets people communicate in real time. Unlike Clubhouse and others, the new app offers no rooms, invites, recording tools or extensive moderation features. It claims to only scan user contacts on the local device.
  • Netflix inked a deal with Microsoft for its upcoming ad-supported plan. According to reports, Netflix appreciated Microsoft’s approach to privacy and ability to iterate quickly. (It also helped it wasn’t a streaming competitor, like Comcast’s NBCU or Roku.)
  • Apple added a new perk for Apple Music subscribers, Apple Music Sessions, which gives listeners access to exclusive releases in spatial audio that have been recorded in Apple’s music studios around the world. The sessions began by featuring country artists, including Carrie Underwood and Tenille Townes.

Gaming

  • Twitter’s H1 2022 report found there were roughly 1.5 billion tweets about gaming on its platform, up 36% year-over-year. Genshin Impact (No. 1) and Wordle (No. 2) were the most tweeted-about games.

Reading & News

  • Upnext launched a read-it-later app and Pocket competitor for iOS, iPad and web. The app aims to differentiate itself by supporting anything users want to save, not just articles but also things like videos, podcasts, Twitter threads, PDFs and more. It then organizes this in a home screen that curates your collection with Daily Picks, and offers a swipe-based interface for archiving content.

Government & Policy

  • TikTok this week paused a privacy policy change in Europe after a regulator inquiry over how the platform planned to stop asking users for consent to receive targeted ads.
  • Confirming earlier reports, Kakao said it’s removing the external payment link from its KakaoTalk messaging app on the Play Store to come into compliance with Google’s terms, after being blocked from issuing updates. The move brought more attention to the policy and saw the regulator get involved in talks, which was likely the point of Kakao’s protest in the first place.
  • After an FTC commissioner urged the U.S. to ban TikTok, rival Triller reported a surge in users. Triller had pivoted to focus more on entertainment and events as TikTok established itself as the top short form video platform in the U.S.

Funding and M&A

🤝 Match Group acquired the members-only dating app The League, which focuses on matching ambitious and career-focused professionals. The app has previously faced accusations it’s elitist, particularly because it screens and vets members after an application process instead of being open to all. Deal terms weren’t revealed.

🤝 Spotify acquired the Wordle-inspired music-guessing game Heardle for an undisclosed sum. The company believes the deal could help support music discovery in its app and could help drive organic social sharing. Heardle’s website had 41 million visits last month.

💰 Tutoring marketplace and app Preply raised $50 million in Series C funding led by edtech-focused Owl Ventures. The startup has 32,000 tutors from 190 countries teaching over 50 languages, it says, and claims to have grown revenues and users 10x since 2019.

🤝 Fintech for kids GoHenry app acquired Pixbay to help it expand into Europe. The latter has 200,000 members across France and Spain. U.K.-based GoHenry has over 2 million users in the U.K. and U.S.

💰 Japan’s SmartBank raised $20 million in Series A funding for its prepaid card and finance app. The round was led by Globis Capital Partners. The startup claims 100,000+ downloads so far and is aiming for 1 million by the end of next year.

🤝 Israeli company ironSource is merging with the game development platform Unity Software, after the latter saw its share price fall over 70% in 2022 and have a market cap of under $12 billion. IronSource went public a year ago at an $11.1 billion valuation and is valued at $4.4 billion at the time of the merger. Silver Lake and Sequoia will invest $1 billion in Unity after the merger.

💰 Consumer fintech startup Uprise raised $1.4 million in pre-seed funding from a range of investors. The company offers a website and app aimed at Gen Z users that takes in their full financial picture, including overlooked items like employer benefits, and offers recommendations.

💰 Indian fintech OneCard raised over $100 million in a Series D round of financing that values the business at over $1.4 billion. The company offers a metal credit card controlled by an app that also offers contactless payments. The startup has over 250,000 customers.

💰 Stori, a Mexican fintech offering credit cards controlled by an app, raised $50 million in equity at a $1.2 billion valuation and another $100 million in debt financing. BAI Capital, GIC and GGV Capital co-led the equity portion of the deal. The company claims to have seen 20x revenue growth in 2021, but doesn’t share internal metrics.

💰 U.K. stock trading app Lightyear raised $25 million in Series A funding led by Lightspeed. The startup said it’s launching in 19 European countries, including Germany and France.

Downloads

Linktree launches a native app

Linktree, a website that allows individuals, including online creators, to manage a list of links they can feature in their social media bios via a Linktree URL, launched its first mobile app this week. The new app for iOS and Android lets users create a Linktree from their phone, add and manage their links, customize their design and more. Users can also track analytics, sales and payments, among other things. (You can read more about the new app here on TechCrunch.)

The anonymous Q&A app NGL climbed to the top of the App Store by tricking its users with questions it claims are sent in by their friends and by charging for useless hints about who supposedly wrote those messages. But many of the questions users receive aren’t from real people; they’re generated automatically — an idea NGL’s top competitor, the maker of the Sendit apps, is now alleging NGL’s maker stole alongside other confidential business information, according to a new lawsuit.

In a complaint filed on July 1, 2022, in the Superior Court of California, Sendit’s creator, Iconic Hearts Holdings, Inc. (previously known as FullSenders), claims that NGL acquired its trade secrets through “improper means” as a result of a breach of duties by the suit’s defendant, Raj Vir, an Instagram software engineer, who had worked on Sendit on the side.

For those who don’t keep up with teen app trends, both Sendit and NGL are leading anonymous Q&A apps, a subgroup of social apps currently popular among a younger demographic. The apps have been ranking at the top of the app stores charts for months, as anonymous apps typically do — before they implode from bullying, lawsuits or get banned by the app stores themselves.

As of today, NGL is the No. 5 top (non-game) free app on the U.S. App Store. Since launching late last year, the company has generated over $2.4 million in revenue, according to third-party estimates. Sendit’s apps are currently ranked at No. 12 in Social Networking (Sendit) and No. 57 in Social Networking (Sendit — Q&A on Instagram), and have earned over $11 million, per data from Sensor Tower.

Both Sendit and NGL allow users to post links to their social accounts, like Instagram or Snapchat Stories, which friends can click on to send the poster anonymous questions. (Think: “who do you have a crush on?” and other teenage gossip.)

The recipient, in turn, receives the questions in the app’s inbox, and can then post their response to their social accounts for all to read. The apps monetize this activity by offering their users “hints” about the person asking the questions so they can find out who asked what.

While NGL focuses only on anonymous Q&As, Sendit offers two variations of its service. Its original app is aimed at Snapchat users and provides a variety of games in addition to the anonymous Q&A feature. Its newer app, meanwhile, brings anonymous Q&A’s to Instagram. It launched following Snapchat’s rollout of stricter policies earlier this year that banned anonymous apps from using its developer tools. (Sendit received an extension to come into compliance with those policies, Snapchat told us.)

The apps are problematic, however, because they’ve been demonstrated to be using misleading tactics to trick their young users into thinking they were receiving engagement from friends when they were not.

Both apps are also incredibly similar including in their visual design, how they work, their business model, and other aspects.

As it turns out, that may not have been an accident.

The recently filed Iconic Hearts lawsuit (see below) states that the company hired Vir to develop Sendit’s mobile apps back in September 2018. Vir then continued to consult with the company afterward, it says. In May 2021, Iconic Hearts began having conversations with Vir about offering him a full-time position or allowing him to continue as a contractor. But instead of taking the job, Vir took the company’s ideas and insights and used them to build his own version of Sendit’s app, the complaint explains.

“Vir was integral in founding, building, and launching ‘NGL – anonymous q&a,’ an app that is nearly identical to, and directly competes with, the Sendit apps,” reads the filing. It additionally details how Vir used his friendship with Iconic Hearts’ founder, Hunter Rice, and his role as a Sendit developer and consultant in order to gain information about the company and its apps. (Apparently, Rice and Vir weren’t just business colleagues, they were friends — former high school classmates who had bonded after college over their shared interest in tech, the filing notes.)

During Vir’s time working on Sendit’s apps, he had access to insider information — like which features drove the most user engagement and other future development plans, the lawsuit states. He had also signed a developer agreement, which forbade him from using this information for any other purpose beyond his work with the Sendit apps, it says.

Rice believes Vir was never serious about the job offered to him at Iconic Hearts, the complaint continues, but was instead using his ongoing access to build NGL, a copy of Sendit which launched in late 2021 on the App Store and soon became the App Store’s No. 1 app in June 2022.

The filing explains how Vir had access to detailed app data and KPIs (key performance indicators) and other metrics designed to make the app succeed. Because of his relationship with Sendit, Vir asked for and was given access to all sorts of business data and metrics — like click-through rates, conversion rates, which prompts were the highest performing, how they were ordered to create virality, the placement of call-to-action buttons, financial performance, MRR (monthly recurring revenue), churn rate, LTV (lifetime value), metrics related to average response rates, share counts, viral coefficients, and much more.

Among these business details, was Sendit’s use of fake questions. The company had previously denied using bots when TechCrunch asked.

Many users of Sendit and NGL’s apps had already suspected some of the questions they received were not really coming from their friends, but had been automatically generated. The app stores are filled with user reviews that claim these apps are tricking them, then ripping them off by charging for unhelpful hints — like those that only share a user’s city or the type of phone they have.

TechCrunch also recently tested both NGL and Sendit’s anonymous Q&A system by generating a link for questions but then didn’t show it to anyone, and yet still received half a dozen so-called “questions from friends” in our inboxes.

This feature is actually detailed in the new lawsuit as one of the many aspects of Sendit’s apps that NGL supposedly stole. Reads the complaint:

Iconic Hearts had also developed a unique system, “Engagement Messages,” which sends content to a inbox if interactions with the user had been idle over a certain period of time. “Engagement Message” re-trigger a user to use the app. This generates more “shares” on the app, more density within a user’s trend network (i.e. more people sharing more times), which adds to an app’s saturation, the most critical measure of success and growth. It took Iconic Hearts years of trial-and-error, testing, and iterating its product to optimize its proprietary Engagement Messages System and various components thereof, such as the optimal period of time after which to send an Engagement Message, how the Engagement Message gets pushed, the design of the Engagement Message, and the content of the Engagement Message.

This section essentially confirms users’ suspicions about the fake questions. It also now places a burden on the app stores to take action, we should think, as neither company discloses to its users that these “engagement messages” are not being sent by their friends as the app’s description would lead them to believe.

Surprisingly, Iconic Hearts didn’t know of Vir’s betrayal until recently. Even as late as June 2022, Vir concealed his involvement with NGL the complaint states. The lawsuit claims Vir finally admitted his involvement to Rice on June 21, 2022, by saying “okay, I’ll clear the air. I’ve been lying to your face this entire time. I am building NGL,” and then, “congratulations for being the Head of Product at NGL.”

Yikes, if true.

Neither party has responded to our requests for comment at this time.

As to what extent Iconic Hearts will be able to prove its claims in a legal fashion remains to be seen. The suit is asking for damages and injunctive relief. The suit also names dozens of unknown defendants who may be working or partnering with NGL, which Iconic Hearts hopes the court will reveal and name.

ICONIC HEARTS HOLDINGS, INC. vs. RAJ VIR; NGL LABS LLC; and DOES 1 through 50, inclusive, by TechCrunch on Scribd

Italy’s competition watchdog has opened an investigation into Google over concerns it has abused a dominant position by hindering data portability rights which are afforded to individuals under the European Union’s General Data Protection Regulation (GDPR).

The procedure follows a complaint made to the authority by the operator of a direct marketing platform called Weople.

The Weople app, which is operated by a company called Hoda, encourages web users to link third party accounts (such as Gmail and other Google accounts) to port their personal data into a “digital vault” — where the free service claims their data will be “masked and anonymized” in order that it can be used to target them with personalized offers, i.e. without their actual information being shared with advertisers/third parties since the app acts as an intermediary.

Weople users are apparently able to generate virtual currency or other rewards (some of which are distributed by prize draw), and potentially earn actual money, in exchange for authorizing use of their “masked” data for marketing purposes.

The app maker also says it aggregates “anonymized” user data into blocks to trade with marketers, presumably to sell market insights/trends analysis, although the company’s website does not clearly explain what it’s doing to “valorize” user data.

Notably, there have previously been concerns over Weople’s approach of leveraging GDPR data portability rights to grease commercial tradability of personal data.

Back in 2019, the app was investigated by Italy’s data protection watchdog and referred to the European Data Protection Board (EDPB) for an opinion on its approach to utilizing the GDPR’s data subject-focused portability powers for a service that seeks to monetize people’s data, as the Garante raised reservations about the implications of such a commercial purpose being used as a driver for data portability; and the risk of ported data-sets being duplicated (with associated security risks).

At the time, the privacy regulator suggested that entities receiving requests for data portability from Weople should consider the GDPR’s accountability principle when deciding whether or not to grant their requests.

Fast forward a few years and Italy’s competition authority’s concerns are, perhaps unsurprisingly, focused elsewhere — on whether Google’s conduct might be impeding competition.

Although it’s fair to say that digital businesses frequently generate cross-cutting concerns which can demand that different regulators, such as privacy and competition authorities, work together to resolve complaints and impacts — rather than risking siloed and disjointed responses. (We asked the Italy’s AGCM and the Garante about any joint working here but at the time of writing the privacy regulator had not responded to our questions and the competition watchdog declined comment.)

“In the Authority’s view, Google’s conduct could compress the right to portability of personal data, established by Article 20 of the GDPR, and could constrain the economic benefits that consumers can derive from their data. At the same time, the alleged abuse could restrict competition because it limits the ability of alternative operators to develop innovative data-based services,” the competition authority wrote in a press release today, saying its officers conducted an inspection at Google’s local premises yesterday in connection with the investigation.

“In particular, Hoda represented to the Authority the negative effects of Google’s conduct on its initiative to enhance personal data with the consent of the data owner, which offers innovative opportunities to use such data,” it added.

In further remarks, the AGCM suggested data portability provides an avenue for “alternative operators” to exert competitive pressure on tech giants like Google — which it describes as having “established their dominance on the creation of ecosystems based on the management of virtually unlimited amounts of data” that, it further implies, exclusively feed platform giants’ own business models.

The ACGM’s PR also makes reference to how much money Google’s parent entity, Alphabet, makes as a result of its ability to extract large amounts of data through services like Gmail, Google Maps and Android (revenues of $257.6BN in 2021).

Reached for comment on the authority’s investigation, Google avoided any direct reference to the complaint — and instead sought to redirect attention onto long-standing support it says it’s provided to portability efforts, sending us this statement:

“Google has offered people the ability to take out and transfer their data for over a decade and in 2021, more than 400 billion files were exported. These tools are there to help people manage their personal information. There are also ways that any company can encourage direct data portability into their services — for example, via the open-source Data Transfer Project, which any company is welcome to participate in.”

It’s not the first time the ACGM has had Google in its cross-hairs on competition grounds: Last year the regulator fined the tech giant $120M+ for antitrust violations related to restrictions applied to a local electric car charging app, called JuicePass, via Android Auto, a modified version of Google’s mobile OS intended for in-car use.

Back in 2020, the national competition watchdog also started an antitrust probe looking at Google’s ad display business in Italy.

Returning to the data portability issue, in recent years the European Union has put a lot of store on seeking to fire up a cottage industry of “trusted” data intermediaries/marketplaces (and/or so-called “personal data spaces”) — as part of a major policy plan to encourage data sharing and reuse — which, as well as having a core focus on encouraging businesses to fuel each others’ ideas with pooled industrial data-sets, seeks to grease the passing around of personal data for ‘altruistic’ societal benefit.

It’s not entirely clear whether a platform such as Weople’s — which is essentially a commercial play to generate revenue by encouraging individuals to share and pool data (trusting the platform to safeguard their identities in the process) — would constitute a model example of a trusted, neutral intermediary, as envisaged by lawmakers in the Data Governance Act. Or whether it would fall outside that definition, given the operator’s direct commercial interest in (and activity around) monetizing the tradability of users’ personal data means it may be more data-sharing participant than neutral player.

It’s also worth noting a major critique about the Commission’s approach with the flagship Data Governance Act, given it will — inevitably — pile lots of more work on (already) heavily under-resourced national regulators and legal systems, who will be tasked with ultimate responsibility for ensuring all the extra data sharing that’s being encouraged, via the EU’s centralized lawmaking, doesn’t fatally tilt the scales by scaling commercial exploitation of people’s data in a way that systemically undermines citizens’ fundamental rights as/if the region’s overworked justice institutions become hopelessly overwhelmed.

It’s been a long time coming, but Google Cloud today announced its first Arm-based VMs, following AWS, with its Graviton instances, and Azure, which also recently launched Arm VMs. But while AWS built its own custom chips, Google Cloud is following Azure’s lead here by using chips from Ampere. These new VMs, which are now in preview, will join Google Cloud’s line of Tau VMs under the ‘Tau T2A’ moniker. This line launched almost exactly a year ago, using AMD Milan processors, to offer a better price/performance ratio.

“We are excited to extend the rich choices we already offer with Intel and AMD and enter the Arm ecosystem to provide our customers with even more choice and flexibility. We have support for a broad ecosystem of operating systems, databases, programming languages and other tools,” Sachin Gupta, Google Cloud’s VP and GM for infrastructure, said in a press briefing ahead of today’s announcement.

The new chips will come in pre-defined SKUs with up to 48 vCPUs, each with up to 4GB of memory. The VMs will offer up to 32 Gbps of networking bandwidth and support the usual range of storage options available in the Google Cloud ecosystem. Google says these CPU specs will make these machines useable for a wide range of workloads, including as web servers and for running containerized microservices, data-logging applications and more.

Like the AMD-powered Tau chips, Google sees these as its price-performance optimized solutions. A 32-core Tau T2A VM in Google Cloud’s us-central1 region will cost $1.232 per hour, for example. 

Users will be able to use the likes of RHEL, CentOS, Ubuntu and Rocky Linux on these machines, in addition to Google’s own Container-Optimized OS for running containerized applications. At this point, Arm support has become table stakes for most OS and software vendors, which in turn also greatly enhances the usefulness of these VMs (and those of Google’s competitors).

The new VMs are now available in a small number of regions, including us-central (Iowa – Zone A, B, F), europe-west4 (Netherlands – Zone A, B, C) and asia-southeast1 (Singapore – Zone B, C), but will come to other data centers over time.

“Ampere Altra Cloud Native Processors were designed from the ground up to meet the demands of modern cloud applications,” said Jeff Wittich, Chief Product Officer, Ampere Computing. “Our close collaboration with Google Cloud has resulted in the launch of the new price-performance optimized Tau T2A instances, which enable demanding scale-out applications to be deployed rapidly and efficiently.”

In addition to using these VMs as part of Google Cloud’s Compute Engine, Google also now supports them as part of its Kubernetes Engine, the Dataflow stream and batch processing service and Batch, a new fully managed job scheduler for batch job Google is also launching today. “This new capability will benefit major use cases for throughput-oriented computing such as weather forecasting and electronic design automation,” said Gupta. “The primary purpose of this new service is to offer unprecedented flexibility in time, location and cost of cloud capacity for batch jobs.”

 

The TikTok threat to Google’s business isn’t just limited to YouTube, as it turns out. Core Google services, including Search and Maps, are also being impacted by a growing preference for social media and videos as the first stop on younger users’ path to discovery, a Google exec acknowledged today, speaking at an industry event.

Senior Vice President Prabhakar Raghavan, who runs Google’s Knowledge & Information organization, referenced the popular social apps in a broader conversation at Fortune’s Brainstorm Tech conference about the future of Google’s products and its use of AI.

In a discussion about the evolution of search, he somewhat offhandedly noted that younger users were now often turning to apps like Instagram and TikTok instead of Google Search or Maps for discovery purposes.

“We keep learning, over and over again, that new internet users don’t have the expectations and the mindset that we have become accustomed to.” Raghavan said, adding, “the queries they ask are completely different.”

These users don’t tend to type in keywords but rather look to discover content in new, more immersive ways, he said.

“In our studies, something like almost 40% of young people, when they’re looking for a place for lunch, they don’t go to Google Maps or Search,” he continued. “They go to TikTok or Instagram.”

The figure sounds a bit shocking, we have to admit. Google confirmed to us his comments were based on internal research that involved a survey of U.S. users, ages 18 to 24. The data has not yet been made public, we’re told, but may later be added to Google’s competition site, alongside other stats — like how 55% of product searches now begin on Amazon, for example.

While older internet users may not be able to wrap their minds around turning to a social video app to find a restaurant, this trend could cut into Google’s core business of search and discovery over time — not to mention the ads sold against those sorts of queries. While younger users may eventually launch some sort of maps app for navigation purposes, this data indicates they don’t necessarily start their journey on Google anymore. That means all the work Google did over the years to organize, curate and recommend various businesses — such as local restaurants —  or its creation of discovery tools inside Google Maps — could be lost on these younger internet users.

Raghavan also explained how younger people were generally interested in more “visually rich forms” of search and discovery, and that wasn’t just limited to where to eat.

He pointed out that the young people coming online today had never seen a paper map (oof, way to make us feel old!), but maps products have been designed to look like a paper map that’s been “stuck on the phone.” This doesn’t meet younger users’ expectations and is the wrong experience to offer them, he said.

“We have to conjure up completely new expectations and that takes altogether new … technology underpinnings,” Raghavan noted.

For instance, Google Maps is now incorporating augmented reality to help users position themselves in their environment, instead of forcing users to figure out which way to go based on a blue dot flashing on the screen. The company also recently announced other improvements to Google Maps at its developer conference Google I/O, where it showed off new 3D modes and immersive views, among other things, that also make Maps less like a digital form of a paper map.

Raghavan also suggested younger people’s demand for visual content will change Google Search. He believed this is part of Search’s ongoing evaluation, however. Previously, he explained, web users would type in a couple of basic keywords into a search engine to get a list of blue links in return. Later, search engines became capable of understanding natural language and then added capabilities for handling voice queries. In some countries, voice now drives 30% of all queries, the exec noted, as new internet users didn’t even bother with typing.

Today, Google is looking toward combining images and text as it imagines a future where users could hold up their phone — or perhaps wear AR glasses — to start a search based on what they see.

In the meantime, however, Google has to contend with no longer being some users’ first stop when they’re looking to discover new places or information.

This trend, in fact, was becoming so pronounced that the tech giant confirmed last fall it was working on deals that would allow it to index Instagram and TikTok videos in Search. You can see some of this progress already — search for a keyword followed by the word “TikTok” and Google will return rows of results of TikTok videos before you’ll see any standard webpages.

But Google has also begun to leverage AI to analyze videos on the web and direct users to richer search results, Raghavan said.

For example, if you search how to change a tire on Google, it will now show you video results. And now, Google is able to use AI to analyze the parts of the video, so users can jump to the location where it explains how to loosen the lug nuts or raise the jack. The company is working to make its analysis and understanding of video to be on par with documents, Raghavan said.

But, he added, “getting that level of deeper understanding is a journey we’re still on.”

TechCrunch doesn’t tend to cover personnel changes because the startup world is sufficiently massive as to render any particular job changes too small for our lens. However, Instacart this morning announced a slew of promotions inside of its senior leadership, and given that the company filed for an IPO — albeit privately — we’re paying extra attention.

Briefly, the U.S. grocery-delivery giant promoted Daniel Danker and Laura Jones, vice presidents of product and marketing, to chief product officer and chief marketing officer, respectively. Given that Instacart is prepping for a public debut, getting its C-suite in order makes sense. In that vein, the multi-unicorn is also promoting its vice president of engineering, Varouj Chitilian, to the CTO role. Prior CTO Mark Schaaf is leaving the company for what Instacart described in a phone call as a break of sorts.

The company also shook up its business division. Recall that Instacart has a few revenue lines, including delivery, a software platform that it offers to grocery chains, and advertising business. Instacart also announced today that it is unifying its grocery business and ads business under its newly promoted chief business officer Chris Rogers, its prior vice president of retail.

Why do we care about Instacart bringing ads more closely to its grocery business? Because search advertising is a big damn market. And when you are grocery shopping and want to add a particular good to your cart, you are executing a search.

This means that the same forces that powered Google to search dominance — and provided a huge tailwind to Amazon — are at play inside of Instacart’s service. In simple terms, high-intent customers searching for goods to buy is the precise place where advertisers want to flaunt their wares. So, it makes sense to have the ads team and the grocery team working in unison — they are somewhat the same project, albeit with different search results as their main remit.

We’re counting down until Instacart’s IPO filing drops the private tag and flips public. When will that happen? It’s not clear. The IPO market today is more barred window than open portal, which means that our normal methods of calculating when a company may go public do not work. We’re stuck waiting. But when we do get that document, we’ll be hunting through it for notes on Instacart’s revenue mix and per-business line gross margins, along with the usual growth and profit material we observe for every company.

Can Instacart’s software and advertising work improve its overall gross margin profile? Can those business lines provide growth levers in excess of simply driving more GMV through the service? That’s Rogers’ job now. Let’s see how he performs in the expanded role.

YouTube’s Chief Product Officer Neal Mohan confirmed today a new milestone for YouTube’s live TV streaming service, YouTube TV. Speaking on a panel at Fortune’s Brainstorm Tech conference, the exec said the service has now surpassed 5 million paid subscribers and “trialers” in just five years, he said. This figure initially seems to position the streamer ahead of its nearest rival, Hulu + Live TV, which now has 4.1 million subscribers as of April 2022. However, Hulu owner Disney does not include users on trials in its figure as YouTube does, so a direct comparison here is not possible.

Reached for comment, YouTube declined to say how many among the 5 million were paying subscribers and how many were on trials. Hulu confirmed its 4.1 million subscribers, meanwhile, are those where it’s seeing subscription revenue.

Google had not offered a paid subscriber figure since Q3 2020 when it then said the YouTube TV service had more than 3 million paid subscribers. (At that time, it wasn’t including users on trials in its figures, the company told us.)

Given the lack of updated official figures, analysts took to estimating the market instead and found YouTube TV to be ahead of its rivals as of last fall. In September 2021, MoffettNathanson estimated YouTube TV had pulled ahead of Hulu + Live TV to become the largest live TV streaming service in the U.S. (or virtual MVPD — Multichannel Video Programming Distributor — in industry lingo). The firm said YouTube TV had grown to include around 4 million subscribers, which had topped Hulu + Live TV’s then 3.7 million subscribers.

If YouTube TV had actually now taken the lead over Hulu’s live TV service based on subscriber counts alone, one would think it wouldn’t need to round out its figure with “trialers” in order to have an impact. (Although then it wouldn’t sound as good as “5 million in 5 years,” we suppose!)

Both services are well ahead of their closest competitors, including Sling TV and fuboTV, which closed out 2021 with 2.49 million and 1.13 million subscribers, respectively.

“Five years ago we launched YouTube TV to rethink how we watch live TV, give users more choice, and unlock a new revenue stream for our partners,” said Mohan, in reference to the new subscriber figure. “Today, we’re thrilled that YouTube TV has become a thriving business of more than 5 million subscribers and trialers. This milestone is a testament to the amazing work the team has done to build a best-in-class experience,” he said.

Since launching, YouTube TV has grown to include over 100 channels, launched add-ons like 4K Plus and Sports Plus, and has rolled out new features to differentiate its service from others. In sports, for instance, it launched a “no spoiler mode” so you wouldn’t see sports scores for specific teams, along with kickoff notifications, real-time stats, key plays information, and a fantasy view that lets you link a fantasy football account to YouTube TV to keep track of progress. News consumers, meanwhile, can also use a “segments” feature to jump directly to different parts of a broadcast.

However, YouTube TV has also often raised its prices, as have its rivals, going from a $35 per month launch price to now $65 per month, as it’s added on more programming. It’s gotten enmeshed with contract disputes, too, warning customers last year they’d lose 18 Disney-owned channels at one point, only to come to a last-minute agreement to provide continued access. To some consumers, these sorts of antics are much like those they faced in paid TV days and had hoped to leave behind with a switch to streaming.

This could also be hampering growth in addition to the price hikes and the broader competitive landscape where consumers’ subscription dollars are tied up in on-demand services, like Netflix, and where free streamers like Pluto TV offer alternatives to live television.

 

 

Google has responded to dating app maker Match Group’s antitrust lawsuit in a scathing new court filing which refers to Match’s original complaint as a “cynical attempt” to take advantage of Google Play’s distribution platform and other tools while attempting to sidestep Google’s fees.

The two tech giants have been battling it out in court after Match sued Google this May over its alleged monopoly power in Android app payments.

Match — which operates dating apps including Tinder, Match, OkCupid, Plenty of Fish, Hinge, and others — is claiming Google has too much control over the Google Play app marketplace and uses anticompetitive tactics to maintain its hold on that ecosystem. The app maker is one of many larger publishers, alongside Epic Games and Spotify, that have been looking for relief from Google’s service fees. Epic Games is also suing both Apple and Google. The companies largely want to offer their own in-app payment systems instead of being forced to use Google’s own payments infrastructure and want to avoid the commissions that come with having their apps distributed through the Google Play store and App Store.

Earlier this year, Google and Match came to a temporary compromise about how they would proceed while the lawsuit was underway. Match said Google assured it would not ban or block its dating apps from Google Play for offering alternative payments and Match would place up to $40 million aside in an escrow account in lieu of paying Google’s fees until the judge determined the outcome of the case.

Now, Google has filed its counterclaim in this ongoing lawsuit, where it argues that Match is misleading the court in saying Google simply provides payment processing fees to the apps distributed on its platform.

Writes Google:

While Match Group claims that Google Play only provides payment processing, that simply isn’t true. Google Play provides tools and a global distribution platform that has allowed Match Group to thrive and build a successful network of users that is critical for its dating apps. Match Group now seeks to access Google Play’s global distribution platform and users and leverage Google’s substantial investments in the platform, all for free.

Google goes on to tout the discoverability made possible through the Play Store and the tools it provides to developers, including the free software provided that allows developers to build apps, its testing and monitoring tools, and its digital payments infrastructure. Plus, Google argues that its 15% fee for Match Group subscriptions is “half the amount” other major platforms charge — a reference seemingly to Apple, but misleading since both platforms reduce commissions from 30% to 15% in an app’s second year.

The response additionally points out that there are other ways to load apps onto Android phones, unlike on iOS which restricts sideloading.

Google also deals out a few key blows — for example, by noting that a senior VP at Match Group had once admitted that Match’s real problem with Google Play’s billing system is “the ease with which users can cancel their subscriptions” using Google’s tools.

This particular claim recalls an earlier lawsuit against Match filed by government regulators. In 2019, the U.S. Federal Trade Commission (FTC) sued Match for fraud. Among other things, it said the company made it difficult for consumers to cancel their subscriptions and would use tricks that led consumers to think they had stopped the charges when they actually had not. (Most of the claims in that suit were dismissed earlier this year, however, based on the case’s legal standing as opposed to a judgment related to the complaints themselves.)

Google also references the FTC’s lawsuit in its new filing, adding that Match executives had acknowledged the cancellation process is “hard to find, tedious, and confusing.” A Match Group exec’s quote, unfortunately, is redacted in the filing.

Google is asking for a trial by jury and monetary relief related to Match Group’s breach of contract. It also seeks a ruling that would permanently ban Match Group from the Google Play store.

The lawsuit is proceeding in the U.S. District Court, Northern District of California. News of the filing was first reported by Bloomberg.

In a statement, Google said, “Match Group entered into a contract with us and this suit seeks to hold Match to its end of the agreement – we’re looking forward to making our case. Meanwhile, we will continue to defend ourselves against Match’s baseless claims.”

Match has also been asked for comment.

A popular anonymous social app called NGL has now topped 15 million global installs, according to new data from app intelligence firm Sensor Tower, released today. The app, which is now one of a handful of unregulated and potentially problematic anonymous apps targeting teens, has been swiftly climbing the charts since its December 2021 launch. But while NGL is now sitting in the top 10 in the U.S. App Store, much of its current growth is being driven by Android users in markets like India and Indonesia, Sensor Tower’s data indicates.

Emerging markets can help push new apps like NGL up the charts, where they gain even more attention from consumers. But in the case of NGL and others, there are reasons to be concerned about its rapid adoption. The app and some of its rivals have been accused of using bots to drive user engagement.

This is an issue because the app promises “anonymous” social interactions in the form of Q&A’s from online friends and then monetizes by offering “hints” as to who sent you those messages, which has allowed it to pull in millions. In other words, both the App Store and Google Play as well as the app developer itself appear to be profiting from an illegitimate operation that tricks people into thinking their friends are asking questions, when some of the questions are actually automated.

When TechCrunch recently tested NGL and its rival Sendit, we copied the provided short links into an Instagram Story that was only live for a mere moment before we took it down. This tricked the apps into thinking we were now awaiting anonymous questions from our friends. A few hours later, questions — supposedly from our friends who saw our link — appeared in the apps’ respective inboxes. But in reality, no one had seen our link as it was never live long enough to be clicked by anyone, much less half by the half dozen people who supposedly send us messages, according to NGL.

It seems pretty clear from these tests NGL is attempting to mislead users — and its low-ranked app store reviews are filled with complaints about its usage of bots.

Keyword analysis for the U.S. finds reviews referencing words like “bot” or “bots,” “fake messages,” “fake questions,” “scam,” and other terms about the app’s tricks or how the user “wasted” ten dollars to get hints about who had asked the questions. The app’s five-star reviews, meanwhile, come across as fairly suspect as many repeat the same phrase: “very good.”

Image Credits: NGL app reviews via Sensor Tower

NGL charges users $9.99 per week for a subscription providing unlimited hints as to who sent the questions you receive. The hints aren’t useful, either, users said in the reviews, as they only offer broad details like location and device model. To date, Sensor Tower says NGL’s users have spent around $2.4 million in the app. The $9.99 unlimited hints subscription was the top in-app purchase, followed by the $1.99 per week unlimited hints option, the firm noted.

Despite these issues, the app continues to gain traction. NGL’s Google Play installs now outpace its App Store installs, with the app seeing some 6.5 million Android downloads in June compared with 4.4 million for iOS.

Indonesia is NGL’s largest market to date, accounting for approximately a fifth of NGL’s lifetime installs or about 3.1 million installs, 83% of which are from Google Play, Sensor Tower says. The U.S. is the app’s second-largest market by installs, representing nearly a fifth of its lifetime installs, or about 3 million installs. India represents about 10% of total installs with about 1.5 million.

So far this month, NGL’s growth trends have continued with the app pulling in another 4.6 million installs as of July 10 (2.7 million installs on Android and 1.9 million on iOS.) That’s up 107x from the 43,000 installs the app saw. during the first 10 days of June, but it’s down by 41% when compared with the prior 10-day period (June 21-30), when the app saw 7.8 million installs. This indicates adoption levels may be somewhat normalizing since the surge in late June, but the app is continuing to grow steadily for the time being.

It’s not clear why the app stores have not taken action against this app and its rivals, given how trivially easy it was to trick this app and competitors into sending us fake questions. At the very least, when an app reaches the top of the app store, it begs for a closer inspection.

NGL has not commented on the new data or users’ complaints at this time.